On-Demand Employee: Definition, Types and Benefits

On-demand workers work in a flexible, zero-hours environment. Instead of your regular nine-to-five, as an on-demand worker, you have a different routine every day. For some workers, this is a perfect recipe for work-life balance, creating new and innovative experiences each day, which are never dull.

On-Demand Training: Dealing with Unacceptable Employee Behavior and Addressing Performance Problems

Types of on-demand employees

Here are some of the different types of on-demand employees:

Temporary

A temporary employee is hired for a short period, and the company they work for may employ them directly, but usually they come from a staffing agency instead. Some temporary employees only work in a particular position for a day before moving on to another role at another company, while others might work seasonally or fill in for an employee who is out for a medical leave. Temporary employees of this type rarely plan to be hired permanently by the company they work for, and there is a set end to the employment that is communicated to everyone involved.

Temp to perm

A temp to perm employee is someone who is initially hired temporarily, often through a staffing agency, but the intention is for them to become a permanent employee of the company theyre working for, eventually. In some cases, theres a set amount of time the employee has to work before they become permanent, but others the employer decides based on performance. Temp to perm may offer slightly less flexibility, as it is often for full-time positions, but it can be a good entry for those looking for a full-time job.

Freelance

Freelance employees are a common type of on-demand employee, although they are not technically employees of the companies they work for. Freelancers are self-employed, but they perform work for companies that theyre paid for. The freelancer has the advantage of choosing their own projects and schedule, while the companies that work with freelancers only pay for what they need. Those working for gig services can also be considered freelancers. Freelancers are responsible for many aspects of running their own business, including finding clients and paying taxes, which might appeal to some but not all types of people.

Contract

A contract employee is somewhat like a freelancer and a temp, however they usually work in person for a set period at a company. Some companies prefer contract employees to cover employees medical leave, rather than using temporary employees, and some contract employees can be temp to perm as well. A contract employee usually signs a contract with their employer that explains the expectations and the amount of time theyre being hired for. Contract work can be helpful for freelancers hoping to have some steady work or those looking for a full-time job, but it can also be quite flexible.

Leased

Leased employees are quite similar to temp to perm or contract employees. Usually, leased employees work for a staffing agency or a professional employer organization (PEO) that then finds them positions with companies. These positions are usually full-time and may later lead to permanent work, but while the employee is leased, the company that is compensating the employee and providing benefits, if any are offered, would be the PEO, not the company the leased employee is working for.

Consultant

A consultant is a type of worker who provides insight into business processes using their previous experience and an outside perspective. Consultants might work on their own, or they might work for a consulting firm. However they work, they then provide consulting services for companies to help them with either a wide variety of business needs or very specific needs. Their consulting assignment might be brief or it could last for years, depending on the needs of the client.

Day laborer

A day laborer is a type of worker who is hired just for the day to work on a project. Day laborers are usually associated with trades like construction. They might be hired through an agency or through individual networking. A day laborer might work on a particular project until its complete, if they enjoy the work and the employer is happy with their performance, or they might just work one day and move on to something else. Hiring day laborers can be especially helpful when a project needs to be done quickly.

On-call

On-call employees are usually associated with professions like doctors and nurses, who often have a mix of scheduled shifts and on-call shifts. However, there are other types of workers who might be on call, which can include both regular employees and employees who only work on-call. For employees who only work as on-call employees, they may have set times they are available to be brought in for work or they might be totally open. On-call employees can help employers solve problems related to busy periods.

What is an on-demand employee?

An on-demand employee is someone who works for a company only when needed. There are many methods for hiring on-demand employees or working as one, which can include temp work, freelance or day laboring, depending on your industry. On-demand employees are growing in popularity for companies as they want to have staff when theyre needed and for employees if they want a flexible schedule. On-demand employees might be employees of the companies they work for, but more often they are either self-employed or employed by an agency and then they perform work for other companies.

Benefits of on-demand employment

There are many benefits of on-demand employment for both the employer and the employees. Here are some of those benefits:

On-demand vs. traditional employment

On-demand employment can be quite different from traditional employment, although on-demand might lead to a more traditional, full-time position. On-demand employment is usually much more flexible than traditional employment and requires less commitment from everyone involved. With traditional employment, if a company hires someone and they arent a good fit for the company or vice versa, both parties might feel the hiring process was too much effort and potentially cost as well. On-demand employees can change assignments quickly if needed, including to another company entirely.

In traditional employment, the company an employee is working for manages all their payroll, taxes and benefits, while on-demand employees either manage those things on their own or they are managed through a staffing agency. In traditional employment, the workers usually feel some sense of stability but often lose flexibility, but on-demand workers usually feel less stability and more flexibility. The best option for every worker and business is usually an individual choice based on their circumstances.

FAQ

What is an on-demand worker?

An on-demand employee is someone who works for a company only when needed. There are many methods for hiring on-demand employees or working as one, which can include temp work, freelance or day laboring, depending on your industry.

What does regular or on-demand flexible position mean?

Back to Skills Directory. ‍ On-demand workers work in a flexible, zero-hours environment. Instead of your regular nine-to-five, as an on-demand worker, you have a different routine every day.

What is Employerondemand?

Employer OnDemand allows you to unlock more value from your payroll service. It transforms the way businesses use technology to improve their administrative operations. Employer OnDemand is a flexible solution designed to meet the needs of small to medium sized businesses and the largest enterprises alike.

What is Employee Self Service ESS?

Employee self-service (ESS) is the way in which employees can access HR-related information and software directly through a company’s intranet or web portal.

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