9 Types Of Employment: A Detailed Breakdown

Key Takeaways

• Discover different types of employment, from full-time roles ideal for long-term business objectives to independent contractors offering cost flexibility and workforce agility.
• Choosing the right hiring approach aligns with your business goals, workload, and budget. Explore the detailed insights below to identify the perfect employment types for your needs!

9 Types Of Employment

1. Full-Time Employment

Full-time employment typically involves working a standard schedule, usually 30 to 40 hours per week or 8 hours per day. It offers long-term contracts, a comprehensive benefits package, and clear opportunities for career growth.

To get full-time jobs, individuals must acquire the necessary education or certifications specific to their field. Employers typically develop a structured recruitment plan to hire full-time employees, including posting job listings, screening resumes, and providing onboarding and ongoing training.

Examples of full-time jobs include Accountants, HR Specialists, or positions requiring long-term commitment.

Accounting is a role frequently filled by full-time employees.

2. Part-Time Employment

Part-time jobs require fewer hours per week than full-time roles, usually less than 24-30 hours, offering workers the flexibility to choose their shifts or workdays. While part-time positions provide convenience, the benefits are often less comprehensive than full-time employment.

Part-time hiring is ideal for meeting seasonal demands, handling specific projects, or temporarily filling vacancies. The hiring process mirrors that of full-time positions but is typically less intensive, focusing on assessing the candidate’s relevant skills.

For example, a restaurant might hire a college student as a part-time waitperson during the peak season, scheduling them for 15-20 hours per week, mostly on weekends.

Waitpersons are typically hired on a part-time basis.

3. Apprenticeship

An apprenticeship is a hands-on training program that blends classroom instruction with real-world experience, often spanning several years. Upon successful completion, apprentices secure full-time employment with the same employer.

Employers often recruit apprentices through school partnerships, job fairs, or direct applications, followed by interviews and assessments to determine the candidate’s fit.

Automotive mechanic apprenticeship

4. Internship

Internships are short-term work opportunities that companies offer to students or recent graduates. They typically last several weeks to months and can be paid or unpaid. Internship programs provide valuable hands-on experience in a specific field, such as healthcare, legal, marketing, or hotel.

Employers often recruit interns through college referral programs or job postings, followed by interviews and skills assessments to select the best candidates.

For example, in the legal field, an intern may conduct legal research, draft documents, and support attorneys with various tasks.

Internships can help businesses identify and recruit potential future employees.

5. Casual Employment

Casual employment means employees are guaranteed work only when needed and have no expectation of ongoing hours. They are paid only for the hours worked and do not receive paid time off for holidays.

Employers often recruit casual workers through employment agencies or referrals. The hiring process typically includes preliminary interviews and may involve on-the-job training.

This type of employment is suitable for industries with seasonal fluctuations, short-term needs, or specific projects. For example, a clothing store might hire a seasonal retail assistant to help with customer service and restocking during busy holidays like Black Friday or Christmas.

Casual retail sales assistant 

6. Independent Contractor

Independent contractors or 1099’s are self-employed professionals who complete specific tasks or projects for a set fee and duration. Unlike employees, they complete projects independently, managing their schedules, taxes, and expenses.

Employers or clients often approach independent contractors through Hire Independent Contractor services, choosing them based on their experience, portfolio, and contract terms.

This is common in IT, engineering, and construction fields. For example, a software development contractor is hired to design an application over six months, with payment made upon project completion.

Independent contractors are ideal for projects needing minimal supervision and quick completion.

7. Freelancer

A freelancer is a self-employed professional who delivers services to clients on a project-by-project basis. Like contractors, freelancers do not receive employee benefits and must operate independently.

To become a freelancer, an individual needs specialized skills, relevant experience, and a network of contacts. Companies typically find freelancers through freelance platforms, job postings, or referrals.

Freelancing is prevalent in creative fields such as design, writing, web development, and photography. For example, a freelance writer is contracted to produce articles on digital marketing trends, with payment made upon the project’s completion.

Freelancers are a cost-effective option for budget-conscious small businesses.

8. Leased Employment

Leased employment is when companies contract with third-party agencies, often called Professional Employer Organizations (PEOs), to hire employees. In this arrangement, the PEO is the official employer, managing employment contracts, while the recipient company oversees the employees’ day-to-day tasks.

Leased employment arrangement

The process typically begins with the company outlining the job requirements to the PEO. The PEO then posts the job, conducts initial screenings, and interviews candidates to find the best match.

Employee leasing is ideal for companies needing more HR infrastructure or wanting to access top talent globally. For example, a US-based tech startup partners with an international PEO to hire app developers in Singapore, allowing the startup to focus on its core business without handling all administrative responsibilities.

9. Employment on Commission

Commission-based jobs differ significantly from the nine types of work discussed above, as employees’ earnings are tied to the deals they close or the revenue they generate rather than receiving a fixed salary.

Individuals need strong sales skills and self-motivation to excel in a commission-based position. The hiring process may involve interviews on sales strategies, proven record of past performance, and role-playing to assess the candidate’s potential in a commission-driven position.

These roles are typical in real estate and the service industry. For example, a real estate agent who sells a home for $500,000 with a 3% commission rate would earn $15,000 from that transaction.

Commission-based employees are more goal-oriented, and businesses can set revenue targets to keep them on track.

How Can Your Business Choose The Right Employment Type?

The right hiring approach is crucial for aligning with business goals, workload, budget, and control. 

• Goals and Workload: Full-time employment is ideal for ongoing, strategic tasks, while casual, part-time, or freelance roles suit seasonal or fluctuating workloads.
• Budget Considerations: Full-time employees often incur higher costs due to benefits and taxes. Commission-based, leased, or intern roles offer more payroll flexibility, and remote workers help cut costs on office space.
• Control and Flexibility: Full-time employees enable close supervision, whereas contractors and freelancers offer more autonomy and are better suited for quickly scaling the workforce.

At ERA, our extensive network spans 15+ countries across APAC, connecting you with top-tier talent in various industries and roles. Our local experts ensure you find highly qualified candidates quickly and efficiently. Contact us today for a free consultation!

Frequently Asked Questions

1. What is an example of employment?

An example of employment is an hourly part-time job where employees are paid for each hour. Another example is full-time employment, where individuals receive a salary and benefits for completing the tasks required by their position.

2. What is the difference between an employee and a contractor?

The difference between employees and contractors is that contractors can profit or incur losses from their work, set their rates, and generally cover their expenses. In contrast, employees receive benefits such as pension plans and group accident, health, and dental insurance.