Classifying Your Employees: Everything You Need to Know

When it comes to classifying your employees, it depends on the duration of the job or total hours worked. Based on this form of classification, there are three categories of employees prevalent today: full-time, part-time, and temporary. Classifying your employees is important to determine their employment status as well as eligibility for compensation, perks and benefits.

PeopleCentral is an AI-enabled, intuitive HR platform that aids in talent acquisition and provides comprehensive human resource & payroll solutions for all categories of employees.

Employment Classifications at Workplace

Employee classification majorly depends on how the employer wants to categorize employment status based on the following factors:

  • Number of work hours: Under this category, employees are classified as full-time or part-time. A full-time employee is one who has a regular work schedule of 40-hours a week. Part-time employees work fewer than 40 hours per week. Undoubtedly, full-time employers enjoy more benefits and better compensation than part-time workers.
  • Job responsibilities: On the basis of job duties, employees are classified into exempt and non-exempt groups. Exempt workers enjoy only a few benefits, typically because of their limited job responsibilities. On the other hand, non-exempt employees have bigger job duties and therefore, eligible for more perks and benefits.
  • Job duration: Based on expected job duration, employees can be categorized as temporary, permanent, or special. Temporary or special employees are hired to work on a particular project or for a defined period of time. On the other hand, permanent employees work for an indefinite period.

In most organizations, part-time employees enjoy certain types of perks and benefits, regardless of their work hours. However, some companies also classify part-time employees who do not receive any benefits. They do not enjoy any benefits and the company also cannot extend their term of employment.

It is crucial for every company and their HR teams to understand employee classifications to determine employee status, compensation, and benefits. PeopleCentral empowers your company with a smart and robust HR system that can seamlessly integrate all employee classifications.       

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