11 Different types of employees + tips to manage them better

When hiring employees, business owners need to understand their options regarding different types of employees. While most businesses won’t employ every type of worker, knowing their options allows business owners and entrepreneurs to select the legally appropriate choice while remaining cost-efficient.

While not 100% complete, the list below includes descriptions of the most popular types of hired help.

What are the 4 types of employees?

Types of contingent workers

Managing different types of workers

Questions to ask when deciding on hiring the right type of employee

Hiring the right people for your small business

What are the 4 types of employees?

There are four main types of workers, classified by the hours they work and whether they are hired on a permanent or temporary basis. While there are many types of work engagements, this is a brief overview of the main types.

1. Full-time employees

Full-time employees work a minimum number of hours as specified by their employer. There is no official definition of full-time employment, but full-time employees generally work at least 36 hours a week in the United States. They earn an hourly wage or a salary—meaning they earn a fixed amount per month.

Full-timers are more likely to have benefits (such as healthcare, paid time off, a 401k etc.), which other worker classes don’t have access to. For some businesses, providing these benefits to employees may be legally required.

2. Part-time employees

Part-time employees typically work fewer than 36 hours a week and often have a more flexible schedule. Although they may work 40-hour weeks, seasonal employees who only work portions of the year are considered part-timers. Part-time workers are generally not entitled to employee benefits.

3. Temporary employees

Temps are employed only for a specified period. They may work part-time or full-time hours, but they generally are not eligible to receive employee benefits. Many are hired through temporary employment agencies, and some are hired as “temp to permanent,” which allows for permanent hire after a probationary period.

4. Seasonal employees

Seasonal employees are workers hired for a specific, limited period, typically to meet increased demand during predictable times of the year. 

These positions are common in industries like retail, tourism, and agriculture, and their employment duration is tied to specific seasons or events, such as the holiday season or harvest time.

What are at-will employees?

The majority of American workers are at-will employees. At-will employees can work part-time or full-time hours, but they can be dismissed for any reason and without warning (except in Montana). Likewise, at-will employees can quit or strike at their convenience without notice.

Types of contingent workers

A contingent worker works for an organization on a temporary, project-based, or nonpermanent basis. Unlike traditional employees, contingent workers typically don't receive employee benefits or pay their own income taxes.

They often have more flexible work arrangements and are hired to fill specific needs, such as completing a project, covering a temporary staffing shortage, or providing specialized skills.

5. Leased employees

Leased employees are hired by professional employer organizations (PEOs) to perform HR work for outside companies. 

Lease terms can be relatively short or may last more than a year. Management of leased employees is the job of the company, while payroll, taxes, and other fees are obligations handled by the PEO.

6. Job-share employees

Job-share employees are two or more employees who share one full-time job. They typically split 40-hour work weeks and enjoy employee benefits prorated by share.

7. Independent contractors and freelancers

Independent contractors provide goods or services to a company under terms specified in a contract or a verbal agreement, such as an Independent Contractor Agreement. They can be individual persons, companies, or corporations. 

They generally lack control over their schedule and are expected to work as and when needed. Unlike employees, they do not have income taxes withheld from their pay; instead, the employer is required to file a 1099-NEC form at the end of the year to report the contractor’s wages. 

The contractor is typically required to fund their own benefits and furnish all their supplies, which can then be used as tax deductions. 

Because of these tax restrictions, businesses must be careful when classifying workers as contractors or employees, as misclassification can lead to steep IRS fines. To avoid fines and penalties, learn the difference between Forms W-2 vs. 1099 to make sure your business’s workers are classified and reported correctly. For help with taxes when hiring contractors, see our guide to filing 1099-NEC.

Freelance workers are typically individuals hired as independent contractors to perform a specific duty. While the terms are sometimes interchangeable, freelancers are generally thought of as more casual contractors. They may work on smaller, short-term projects with fewer formal agreements in place.

8. Subcontractors

Subcontractors are, in most cases, companies or individuals contracted to perform part or all of another person or company’s contractual duties.

9. Tenure

Generally speaking, tenure is the length of time an employee has spent with a specific company. In academia, however, a tenured professor or teacher is a senior academic with a contractual right not to have his/her position terminated without just cause. Highly qualified educators are initially placed on the “tenure track,” which guarantees consideration for eventual tenure.

Tenure was partially developed to foster a sense of security for innovative professors, giving them academic freedom to speak out against a university or public opinion for the sake of controversial findings or research.

10. Apprentices

Typically, apprenticeships are training periods for skilled tradespeople. Apprentices work under the guidance of journeymen and masters who teach skills necessary to gain licenses for independent working. Upon completion, apprentices become journeymen and eventually master tradespeople.

11. Interns

Similar to apprentices, interns work under the guidance of higher-level employees. Interns, however, are trained for white-collar and professional careers. They are typically college students but can also be high school students or post-graduates.

Interns can work part-time or full-time hours and generally have a specified period of employment that can last a few weeks to upwards of a year. They can be paid (either hourly or as a stipend) or unpaid, which typically includes an offer for university credits. 

Those considering hiring an unpaid intern should consult the FLSA regulations regarding internships to protect themselves from legal issues.

Managing different types of workers

Besides employee status types, we also have to consider the different personalities of employees. A good leader understands that each individual requires a different management style. Here are some examples:

The top performer

Top performers are key employees who typically go above and beyond. They likely don’t need much additional support, but you still shouldn’t forget about them. Check in regularly and make sure to sing their praises whenever appropriate.

The hand holder 

While not necessarily a low performer, a hand holder requires a lot of support. Whether that’s because they’re struggling with imposter syndrome or maybe they’re just new to the role or field, they require a more hands-on manager who can provide them with the direction and assurance they need.  

The independent

Self-sufficient, an independent employee prefers to be their own boss. This might make them difficult to manage at times, but for a hands-off manager, this type of employee is ideal. 

The steady-as-she-goes

A “steady-as-she-goes” type of employee is reliable, although not always a top performer. They get their work done consistently, on time, and they do it well. They may not go above and beyond, but you can always count on them to perform their duties as described.  

The always busy

An employee who’s always busy can mean several things. First, they’re overworked and need some responsibilities redelegated, or second, they’re poor at time management and need some additional coaching. 

The personality hire

A term often used on social media, a personality hire is someone who may not be the best at their actual job, but they’re a real culture match for the organization. They’re a team player and socializer who brings good energy but not necessarily the people you go to for urgent or crucial tasks.  

All of these different types of employees can bring value to an organization in different ways. Your employees likely don’t fall into one single category day in and day out but rather switch between categories depending on the different projects they’re working on or the phase they’re at in their careers.

Questions to ask when deciding on hiring the right type of employee 

When it's time to grow your team, ask yourself these questions to help you find the right type of employee:

• Do you need long-term, short-term, or seasonal support?
• Will your ideal employee stay in this role or grow into another?
• What's the budgeted salary or wage for a potential new hire?
• Will this employee work on their own or with a team?
• Do you have resources to train a new employee or do you need someone with experience?
• Does this new role require full-time hours?

These questions can help guide your search and tailor your job listing to help find the perfect match for your business.

Hiring the right people for your small business

You have several choices when trying to build a team. And, while some types of employees may be less expensive or require less management than others, the most important factor when hiring is finding a person who fits your culture and taking the necessary steps to protect your business in the process.

With built-in compliance, you can pay all of your employees, full-time, seasonal, contract, whatever, with QuickBooks payroll services.