Employee types are really a broad label for different levels of positions.
For example, you might have a Branch Director and a Branch Manager, two different positions, but they could both belong to two different employee types. The Branch Director may have a higher rank than a Branch Manager and he/she could be under the Executive employee type. While a Branch Manager could be under the “Managerial” Employee Type. Please see screenshot below:
So why do we make this distinction. There are quite a few things that employee types affect.
The first is the expected amount of hours that they should do a day. For example you might have part-time staff that only work 4 hours and full-time staff that work 8. You can make two separate employee types for this.
The second thing employee types affect are thresholds. They dictate when attendance infractions trigger notifications or adjustments to hours.
The third thing employee types affect are the rates and overtime settings.
You can learn more about PayrollHero’s employee types here: