It is vital for Human Resources to have a thorough understanding of distinct types of employment such as apprenticeship, probationary employment, freelance work, etc. HR (Human Resources) is the core team that ensures efficient talent procurement in any company. Therefore, detailed employment-related information and employee categories help them streamline and enrich the decision-making process.
This guide offers an overview of employment, employment status, employee categories and more.
Out of the many people management responsibilities, fulfilling staffing needs is a highly crucial one for HR professionals. It is one of the reasons why understanding the types of employment is indispensable. It helps offer specific jobs and responsibilities to the right talent.
The staffing needs of the company get fulfilled through the different employment types listed in this section. The ultimate benefit of employment bifurcation is to cut additional costs and elevate profits.
Probationary employment prevents companies from taking the risk of offering a permanent position to individuals before assessing their performance. This type of employment enables employers to make informed decisions to achieve long-term goals.
During the probation period, employers:
The probation period is also known as the trial period. The general rule is that the probation period should not exceed six months when the candidate starts working in the company. After the period, the employer decides to retain or terminate an employee based on performance.
It is the HR’s responsibility to clarify probationary conditions in offer letters. The recruits’ understanding and consent are mandatory before they commence work.
Fixed term employment involves contractual relations between the employee and employer. It is valid for a specific period. After the contract deadline, employees are automatically relieved from their services to the company.
Highlights of this type of employment:
Apprenticeship is a type of employment in which the employer provides an opportunity for apprentices to gain real work experience in a professional environment.
Apprentices are the types of employees in a company who join to learn and grab knowledge in the chosen field to shape their careers. They usually need regular instruction and direction to perform the duties assigned to them.
Permanent or regular roles are among the types of employment status that define permanent relationships between the employer and employee. There is no predetermined termination date and employees receive regular compensation including maximum benefits for their contribution to the company.
Casual employment is an employment classification that refers to situations when employment is activated at a need-based duration. It depends on fluctuating business requirements and there is no guarantee of constant inflow of projects.
Highlights of this type of employment:
Seasonal employment refers to temporary employment opportunities offered to employees at the same time every year. The companies pay wages based on the contractual duration with the seasonal employees. The criteria for paying wages do not depend on the amount of work done. This type of employment is highly popular in industries like tourism, agriculture and hospitality.
Employees work at least 30-40 hours (about 1 and a half days) per week in full-time employment. In part-time jobs, workers contribute a few hours to perform assigned tasks. Companies require full-time employees more as compared to part-time employees.
Part-time professionals comprise types of employees in the workplace who enjoy higher flexibility in working. In contrast, full-time professionals are those who work in nine-to-five and similar formats where employees must work and manage time schedules based on the company culture.
Full-time employees are entitled to all the job benefits as compared to part-time. The HR department hires full-time employees to perform the process-oriented work. On the other hand, part-timers perform task-oriented or target-oriented roles.
Freelance employment, also known as self-employment, involves professionals selling their services by the hour/day, etc. instead of receiving a fixed salary. Companies contact freelancers who are specialized within specific fields and skill sets. The primary benefit of hiring freelancers is that the companies do not have to set up workspaces for them to provide their services.
Specializations like digital marketing, SEO, videography, financial advice, copywriting, editing, accounts and translation hugely benefit from hiring freelance employees. The latter are not entitled to company policies around leave and incentives.
Offering job opportunities depending on the business requirement is the strategic way of cutting human resource management costs. That is where employment bifurcation plays a vital role. There are times when companies need skilled professionals for a limited duration. Awareness about various categories of employees helps define recruitment decisions in such a scenario.
Most significantly, it communicates expectations to both the parties (employer and employee) based on the nature of the employment type.
Every company desires relevant human resources. A proper understanding of the diverse types of employment enables organizations to bifurcate the roles and duties effectively thereby improving cost-efficiency and talent management. It is also important to note that clarity about employment statuses and available options allows HR to focus on other vital functions within organizations.
Mercer | Mettl offers diverse talent management platforms and recruitment software to help organizations make sound people decisions. Mercer | Mettl’s versatile portfolio of people solutions also include:
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Originally published March 28 2022, Updated March 28 2022
The primary objectives of recruitment and selection are to ensure high-quality candidates who are culturally fit and work toward shared organizational goals and vision.