More Life, Less Work

Definitions/Terms - Different Types of Employment

When it comes to employment, there are various work arrangements that you may come across. These types include freelance, employee, consultant, and agency contractors. Each of these work arrangements has its own unique terms and definitions. These work types also each have their own set of positives and negatives. Here is a list of terms and their definitions for each work arrangement:

Freelance

A freelancer is a self-employed individual. They offer services to clients on a project-by-project basis. Most of their work is completed remote to the client’s office. Freelancers are responsible for their own taxes, health insurance, and other benefits. Freelancers have more control over their schedule and workload. They may have less stability than employees.

Employee

An employee is a person who is hired to work for a company on a full-time or part-time basis. Employees receive benefits as part of their total compensation. Benefits can include health insurance, paid time off, and retirement plans. Employees work under the direction of a manager. Payment is either a salary or hourly wage.

Consultant

A professional consultant provides expert advice and guidance to companies and organizations. They are hired for a specific project or problem. Their work product includes providing solutions and recommendations. Consultants may work independently or as part of a consulting firm.

Agency Contractor

An agency contractor is a worker employed by or through a staffing agency. Contract employees work at a client’s site. In most cases, contract employees are responsible for their own benefits. Some staffing agencies offer benefits such as health insurance and retirement plans. You’ll need to pay your own taxes if you work through an agency on a 1099 basis. Agency contractors may work on short-term or long-term projects. They may have the opportunity to work for a variety of clients.

Temporary Employee

A temporary employee is hired by a company on a short-term basis. These jobs fill a specific role. Temporary employees are generally employed through a staffing agency. They may be eligible for some benefits such as health insurance and paid time off. Temporary employees may have the opportunity to be hired full-time.

Intern

An intern is a student or recent graduate who works for a company to gain experience in their field. They may be paid or unpaid and most internships are on a short-term basis. Interns may have the chance to be hired full-time by the company after their internship ends.

Part-Time Employee

A part-time employee works for a company fewer hours per week compared to a full-time employee. They may be eligible for some benefits such as health insurance and paid time off. These benefits may be prorated based on their hours worked. Part-time employees may have a more flexible schedule than full-time employees.

Seasonal Employee

A seasonal employee is hired by a company to work during a specific time of year. These times can include the holiday season or summer months. They may be employed on a full-time or part-time basis. They may be eligible for some benefits such as health insurance and paid time off. Seasonal employees may have the opportunity to be rehired for the following season.

Knowledge is power. You can now make informed decisions as you move through your career.

Which type of employment would best support your life/work goals? How can we help you?