As labor markets have become more complex, businesses must be aware of the classifications of workers they can onboard.
There are diverse types of employment arrangements available that you can choose from as per your specific needs. Full-time, part-time, or temporary workers-there are various ways employees can be engaged in the workforce.
The need for considering the different types of employment arises from the fact that such a decision significantly impacts an organization’s operations, costs, and flexibility.
Here, we explore 12 types of employment, highlighting their needs and how businesses should decide on the most suitable type.
Table of Contents
12 Types of Employment
1. Full-time employment
The most common type of employment is full-time arrangement. Full-time employees are hired to typically work a standard 35-40 hours per week and have a regular schedule and consistent pay. Such employees are provided the usual work benefits such as health insurance, paid time off, and retirement plans.
Almost every business requires a certain number of permanent employees to ensure that operations run smoothly, as other types of employees can join and leave the workforce regularly. Full-time employment should be offered for positions requiring commitment, consistent presence, and long-term investment in the company.
2. Part-time employment
Part-time employment allows workers to work fewer hours than full-time staff and often has flexible schedules. Part-time employees are hired to meet demands outside the constant workflow.
For instance, retailers employ part-time workers to meet increased demand during peak season. Such employees are paid on a pro-rata basis, and they may or may not receive benefits.
Businesses that need flexibility in staffing should consider part-time employees as it helps companies manage labor costs more efficiently. You can easily adapt to varying workloads if you allow part-time opportunities.
For candidates, this type of employment provides an opportunity to balance work with other commitments, such as education or family responsibilities.
Apprenticeship is the type of employment suitable for people new to trade industries. Companies offer apprenticeships to workers through structured training programs under experienced professionals.
It is one of the types of jobs that combines on-the-job learning with formal education or classroom instruction. Apprenticeship is a win-win situation as it allows companies to mold candidates to their specific requirements while providing aspiring professionals a pathway to a promising career.
Traineeships are very similar to apprenticeships, but they are of shorter duration and involve less formal education. This type of employment is suitable for companies that require employees for immediate, short-term needs as traineeship provides practical training in a shorter time frame.
If you need help with skill gaps in the workforce and are looking for a quick solution, consider offering traineeship programs. Trainees can learn the skills on the job while contributing to the work during their training period.
Internships are offered to entry-level professionals and students to gain practical experience in the fields that interest them. It is suitable for various industries and can include positions that provide temporary and unpaid employment, stipends, or college credit.
Businesses offering internships benefit from tapping into the young talent pool and fresh perspectives. This type of employment serves as a talent pipeline for industries that require highly skilled employees. It allows companies to identify and hire the best interns for permanent roles.
Companies globally use internships as part of their recruitment and training strategy to help potential talent understand their field and help them decide on their future career paths.
6. Casual employment
All the different types of employment we discussed till now involve formal scheduling. Still, if your business has no fixed schedule or requires a commitment to regular work hours, the casual employment option is ideal for you.
Typically, casual employees are hired as needed, and these positions are often temporary or short-term. Casual employees are offered different benefits and job security than full-time or part-time employees.
Businesses with variable workloads or seasonal demands benefit from hiring casual workers, as it allows for flexibility in staffing. Industries like hospitality and retail commonly use this type of employment to meet frequent demand changes due to tourism or holiday seasons.
7. Employment on commission
Employment on commission is entirely different from the 6 types of employment discussed above. This type of work arrangement allows companies to pay employees based on the sales or performance they generate.
Job on commission is standard in sales and marketing roles. As these roles require employees to stay motivated to create revenue, establishing a direct incentive to achieve targets keeps them motivated to excel.
For businesses, the advantage is they only pay when the employee delivers results. This type of employment minimizes fixed labor costs and aligns compensation with performance.
8. Contract employment
Contract employment is common in IT, where individuals are hired for specific projects, tasks, or periods. Contract workers are not part of the traditional workforce and are commonly known as freelancers or independent contractors.
Companies do not have to offer contractors benefits like health insurance or retirement plans. This works in favor of businesses as they have access to talent with specialized skills without the long-term commitment of hiring full-time staff.
However, you should consider contract employment only if your projects have a clear scope; otherwise, you will be left paying for the long term. When used correctly, this type of employment allows companies to scale their workforce up or down as needed and manage costs more efficiently.
Probationary employment is often part of the full-time and refers to a trial period during which new hires are assessed for performance. It gives employers time to evaluate their performance and decide if they will fit within the organization. Probation periods can range from a few weeks to a few months, depending on the role’s responsibilities.
Employees may not receive full benefits or job security during probation as the company evaluates their capabilities before committing long-term. Probationary employment is a standard practice across industries as it minimizes risks associated with hiring, ensuring that only candidates who are a good fit for the position are hired.
10. Seasonal employment
Seasonal employment is a common practice in the retail sector, where businesses hire workers for specific periods during the year when demand for goods or services is high. Retail, agriculture, tourism, and event management industries rely on seasonal employees to ensure they can meet increased workloads during peak seasons.
This type of employment offers varying roles, and employees often receive temporary employment contracts. Seasonal employment gives businesses the flexibility to adapt to cyclic demand fluctuations and is particularly necessary for small establishments that cannot afford long-term work engagements.
11. Leased employment
Leased employment involves businesses working with third-party agencies, often known as staffing or leasing agencies, to hire and manage employees on their behalf. In this type of employment, the staffing agency is the legal employer of the workers.
If you want to avoid handling payroll, benefits, HR administration, and other employment-related responsibilities of the workers, consider leased employment. It is common in manufacturing and construction industries as it can be cost-effective, taking on administrative burdens and allowing the client company to focus on its core operations.
12. Contingent employment
Contingent employment encompasses diverse workers, from freelancers to non-permanent or temporary employees. Contingent employees often have complete control over the delivery of their work and file their taxes. By hiring contingent workers, businesses save on benefits, long-term commitments, and administrative overhead.
How should businesses decide on employment type?
For businesses, there are several types of employment to choose from. It gives them flexibility but challenges deciding which employment type to adopt. The decision depends on several factors, including the nature of the business, budget, and flexibility requirements.
Fully remote businesses may benefit from hiring full-time remote employees as it will ensure they have a dedicated workforce available regardless of location.
However, there may be better types of employment for bootstrapped startups that need to save money for sustainable progress. Such companies can consider interns or consultants for part-time work. If your business is project-based, you can rely on remote freelancers to take on the responsibilities requiring specialized skills.
For labor-intensive businesses such as manufacturing and construction, a mix of part-time, full-time, and seasonal workers is ideal to meet the fluctuating demands.
How can Truein help businesses?
Truein can simplify employee management with a quick onboarding process. Its robust time and attendance management software features shift scheduling, leave management, and attendance policy creation and management, allowing businesses to manage their diverse workforce efficiently.
Truein is an ideal workforce management solution for companies that employ distributed, on-field, and on-premise workers. With its GPS-based geofenced attendance system, you can record attendance of on-field workers smoothly.
Truein is a powerful tool for easily onboarding employees, reducing administrative hassles, and saving time.
The types of employment available for businesses are diverse, but you can consider which type of employment you wish to go with. Focus on your company’s specific needs, goals, and operational requirements when considering different types of employment.
With the help of tools like Truein, businesses can streamline their employment processes to have different types of employees in their workforce. As labor markets continue to evolve, understanding and adapting to these various types of employment is essential for success.