Most things have changed post-pandemic; even the labor market has seen a drastic difference in hiring trends. And as the complexity expands, employers have to adjust their hiring strategies. A part of the drastic hiring change might include shifting your process of recruiting only full-time employees and expanding to other types of employees like part-time, contract or seasonal workers.
Sometimes a company might have to focus on hiring all different types of employees. Understanding these classifications can help an organization function more productively. Today, let’s discuss the types of employees you can see in the current employment scenario.
Employees are classified into two main types – exempt and non-exempt employees. Depending on the type of organization, your company might require taking in different employees to perform well and get the work done.
Exempt Employees are exempt from minimum wages or overtime pay, regardless of how many hours they put in. They include:
Contrary to the exempt concept, Non-Exempt Employees are workers who do not get paid a monthly salary but are paid for the hours and effort they put in. These include:
A full-time employee is a regular employee who must complete or exceed the weekly working hours in an organization to get paid. Commonly, most employers have set a threshold of 35 to 40 hours of work day per week. Some companies even classify less than 30 hours or more than 50 hours to be full-time employment.
Full-time employees are paid at a salaried rate that’s usually the average in the industry they are working. They are eligible for your company benefits like retirement plans, health insurance and paid leaves.
As opposed to the full-time employees, part-time employees are also a part of your organization but have fewer working hours. Even their threshold of working hours can differ, depending on what your company has set. Usually, most companies consider part-time employees to work less than 40 hours weekly, but it varies.
Part-time employees are usually paid on an hourly basis, but might even work at a salaried rate. They have fewer employee benefits, again, depends on what the employer chooses. However, before deciding on whether you should give them employee benefits or not, here’s what you should keep in mind:
There are times when a company only requires additional staff during a specific season of the year. For example, some retail companies require additional retail cashiers or courier companies require extra delivery drivers during the peak of the holiday season, like Christmas or summer. These employees are eligible for unemployment benefits and social security as they do not have full-time jobs.
Nowadays, you can see a rise in the concept of leased employees. They are individuals that have been hired by a staffing agency. These people are then leased out to companies to complete a specific task.
Leased employees usually work with the organization they are leased at for a year or more. But when they work for a company, they are paid by the staffing agency and receive all employment benefits from that agency rather than the company they are working with.
Companies outsource contingent workers to perform duties that an employee cannot perform. They are individuals hired on a non-permanent basis and can work remotely or in the office, based on the nature of their job. Even if they come to work in the office, they are not considered a full-time employee and will not receive employee benefits.
These individuals are experienced and skilled in their field. They are sourced to complete a project and perform on a statement of work provision. This provision is usually an agreement between the employer and the contingent worker that states the payment method and work format.
There are three types of contingent workers:
Most contract workers offer their services to individuals in business, independent trade or profession. These are self-employed individuals who work with a company on a term or project basis and are paid based on the time and effort they put into work. They are cost-effective; you don’t have to expand your office space for them and don’t have to provide any employee benefits.
Like contract workers, freelancers are also self-employed individuals who are experts in their field. Usually, contract workers and freelancers are the same, but individuals in the creative fields like writing, designing, and website development label themselves freelancers. They also work on a project or term basis and aim at building positive long-term relationships with business owners to get more gigs and expand their network. Most startups and small businesses benefit from freelancers as you don’t have to invest time or effort in training them.
Consultants offer professional advice in the industry they are experts in by determining their client’s needs. You can find consultants in law, marketing, image management and education. They provide expert advice to ensure the company improves in a specific field. For example, companies hire consultants to provide soft skills training to enhance their employees’ soft skills. A consultant can be hired for their service once or repeatedly, based on your company’s needs and goals.
Interns are mostly students or freshly graduated individuals who work in a company, either paid or unpaid. Their prime motive is to gain knowledge, experience, and sometimes, credits for their college. Most people who apply for an internship are unskilled and wish to develop their expertise by earning a hands-on experience in their field.
Internships usually last for a specific period. There’s no guarantee of getting employed upon completion of it. Some companies might hire the intern in a permanent role if they are fit for it, while some might not.
Apprentices are individuals who came into the company through an apprenticeship. An apprenticeship is a training program that allows the apprentices to learn everything about a job through detailed instructions. This might sound similar to an internship; however, what makes it different is the promise of employment post the training period.
Apprentices are guaranteed to bag a full-time employment role after completing their apprenticeship. You can commonly find apprentices in industries like home repairs, restaurants and craft-based jobs.
You will have to choose an exempt or a non-exempt employee based on your organization’s goals, needs and requirements. Both of these categories serve different purposes and can be used to benefit your company in various manners.
Since every business is different, the process of finding the right employee will vary and take time. But whether you go for a permanent employee or a temporary one, identifying the correct personalities of employees is necessary for future success. Once you identify the right worker for your organization, onboard them with the help of an Applicant Tracking System like Jobsoid! Designed to automate your recruitment process, it makes the work of HRs and hiring managers easier, by moving through the funnel quickly.
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