When you're getting ready to post a new job opening, one of the most essential details to keep in mind is the type of employee you're looking for. There are several employee types, and by learning more about them, you'll be able to advertise your open roles to attract the candidates you want. So, what are the different types of employment? Let's take a closer look at the various employee types and why it's important to be familiar with them.
What is an employee type?
Employee types are classifications for the various types of employees that a company can hire. Each employee type has unique characteristics, including legal regulations around tax exemptions and benefits requirements. Learning about the different employee types will improve your hiring process, as you'll be able to appeal to the types of candidates you're looking for, ensuring you make the best hires for your business.
Why is it important to know the different types of employment?
Companies and their HR departments should be familiar with the different employee types, as it can guide the process of writing job descriptions for open roles. Knowing the difference between various types of employment also helps employers find the best candidates for their open positions, as advertising a role's employment type will attract people who are looking for that type of job. For instance, if you specify that a role is full time, you'll likely get more applications from qualified candidates looking for a full-time role.
Full-time employees
A full-time employee works for a company on a permanent basis and is typically paid an annual salary. Since full-time workers are exempt employees, they don't receive overtime pay and don't qualify for minimum wage. However, this is largely because full-time employees typically make competitive salaries that surpass minimum wage and receive employment benefits, such as health care, paid time off, and sick leave.
The best time to hire a full-time employee is typically when you notice a glaring need in your business that won't be a quick fix. For example, if you want to overhaul your HR department's operations due to poor employee reviews, you'll likely want to hire a full-time HR manager to oversee and implement changes over time.
Part-time employees
Part-time employees generally work fewer than 30 hours per week. There are several ways to use part-time employees in a company, such as in administrative roles or other jobs where they don't need to perform their duties all day, every day. Since they have lower overhead costs and can supplement a workforce in times of need, part-time employees can be a great solution when your company needs a few extra hands.
Many people take on part-time employment when they're looking for a second job, which means part-time employees may have more than one job at a time. This is something to consider if you want your new hire to come in every day, as many part-time employees only expect to work limited hours or a few days per week.
"Knowing the difference between various types of employment also helps employers find the best candidates for their open positions, as advertising a role's employment type will attract people who are looking for that type of job."
Temporary employees
Temporary employees sign on to work for a company for a set period, knowing that their employment will end on a specified date. This offers a great solution for companies that need help with a project requiring a particular skill set, as they can hire temporary employees to complete those tasks without taking on the responsibility of employing them full time. Additionally, temporary employees don't usually get retirement benefits, paid time off, or health care, which makes them a lower-cost option for hiring.
One reason to hire temporary employees in addition to full-time staff is to create a blended workforce. This will give you more flexibility and allow your business to keep up with trends and increases in demand since you'll be able to allocate talent as needed without taking attention away from other departments. For example, if your retail business sees a boom in sales after testing a new seasonal email marketing strategy, you might use temporary employees to write the marketing copy during the campaign. This will free up your full-time marketing employees to develop more innovative ideas.
Seasonal employees
Seasonal employees work during a particular time of the year. Since seasonal work is typically part time, these employees are usually paid hourly wages and don't receive employment benefits. This is a type of as-needed employment since seasonal employees only expect to work for a set period when their employer needs them. Some of the most common time periods for seasonal employment include the holidays, when industries like retail see a huge boom in business, and the summer months, when businesses that need good weather to operate open each year.
To optimize your seasonal hiring strategy, consider the times of year when your business is busiest and hire seasonal workers for those periods. This will allow you to get the extra help you need without having to pay and train a new full-time salaried employee.
Leased employees
A leased employee functions similarly to a temporary employee, but there are a few key differences. Leased employees receive employee benefits, while temporary workers don't. However, leased employees get their benefits through the staffing agencies they work for rather than the companies where they carry out their contracts. This means you can hire a leased employee and know they're receiving benefits without having to pay for them, which is an advantage to both you and the employee.
At-will employees
If your company has employees who don't have a definite end date to their employment, they're likely at-will employees. At-will employment means the employee can leave their position or be dismissed from it at any time. While a company needs to have a legal reason for dismissing an at-will employee, the employee doesn't have to give a reason for leaving. They can also go on strike without giving notice.
Contingent workers
A contingent worker is someone whose employment depends on a specific circumstance, such as having a contract. This classification includes independent contractors and consultants who get hired to perform a specific task or project. Another example of this is interns, who usually work for a set period before being offered a permanent role or leaving the company to look for full-time work elsewhere.
Contingent workers enter a job with the understanding that it'll end once the contract is over, meaning you'll know exactly when their employment will end. This makes them a great solution for companies that need extra help with a particular goal but don't have the need or budget for another full-time employee.
These are the most common employee types you can choose from when hiring for your next role. Understanding the different forms of employment means you can classify your open positions properly to ensure you get the perfect candidates, whether you're looking for a new full-time employee or a seasonal employee to help during the holidays. Consider these employee types when writing your next job descriptions to offer transparency to candidates and appeal to those looking for a specific type of work.
More tips for finding the right employees
To ensure you attract the types of candidates you want, read about seven recruitment best practices to use for hiring top talent.
If you're looking to revamp your job listings, learn how to improve job posting outcomes.
For more insight into what candidates are looking for in an employer and role, explore the top three job seeker priorities right now.
To learn why it's important to make the right hire the first time, read about the cost of a bad hire and how to avoid one.
Looking to find top candidates quickly? Learn how to find the best candidates faster with Boolean search and semantic search.
