The traditional workforce was made up of permanent members of staff employed under the company. These staff were offered a number of company benefits, including a long-term contract, the opportunity to take advantage of bonus scheme (where offered) along with any other benefits available such as pension schemes and medical insurance.
Although most companies hire their staff on a permanent basis, the workforce is becoming increasingly diverse, and many employers are hiring their workforce under differing contracts and agreements.
As a business owner it is critical that you correctly determine whether you need to hire a permanent employee, temp, freelancer or independent contractor. There is no harm in diversifying your workforce and it can in fact make the workplace a much more fluid place, facilitating the workload of many and offering you utmost convenience as a manager.
If you are considering hiring beyond a permanent employee, below are some options to consider:
Temps are becoming increasingly popular in the workplace, and became particularly prominent during the recession. Many companies chose to hire temps as a way to eliminate the financial problems experienced with hiring permanent employees. Temps were more convenient to hire and fire, with little or no legal implication on the company.
Temps are typically found though an employment agency and can be hired on a contractual, seasonal, interim or casual basis. They may be required to work full time or part time hours, depending on the individual circumstances.
Similar to temps but hired under a different type of contract, freelancers are typically brought in to cover a particularly busy period, seasonal demands or a heavy project that requires a strengthened workforce.
Permanent employees are directly employed by the company on a permanent basis. In addition to their wages they are likely to receive further benefits including paid sick leave, holidays and a retirement plan. Further still they are also able to take advantage of the social benefits offered through permanent employment. Finally, they are offered the greatest levels of protection from abrupt job termination.
Contracted workers are self employed individual who usually work from home or come into the office on a flexible basis.