Per Diem Employee: Definition and Tips for Hiring

What does per diem mean? Literally meaning “daily,” per diem employees work on an as-needed basis. In general, they work less often than full-time

A full-time job is employment in which workers work a minimum number of hours defined as such by their employer. › Full-time_job

employees, have a flexible schedule, and do not receive benefits. The clear advantage of having per diem employees is the ability to call on one to cover your needs anytime.

The benefits of working as a per diem PT or OT

Advantages of per diem employees

There are several benefits of hiring per diem employees. These benefits include:

What is a per diem employee?

Per diem is a Latin term that means “per day. Per diem employees are those who are hired on a temporary basis and are only used by a company as needed. For instance, a substitute teacher is typically regarded as a per diem worker since they are only hired to serve in that capacity until the primary teacher resumes their duties.

Instead of paying employees on a salary or hourly basis, most businesses pay per diem employees based on a full day of work. For instance, substitute teachers are paid for the entire day rather than just the hours they worked. However, depending on how long an employee will work for the company, some employers will pay per diem employees an hourly wage. For instance, a copywriter hired for a particular project will either receive a fixed payment or be paid on an hourly basis.

Typically, employers do not provide benefits to per diem workers. Some employers may pay the employee more money depending on the type of work to make up for the lack of benefits. For instance, to make up for the fact that a per diem doctor is not receiving benefits, a hospital may pay the physician more than the typical salary for this position.

How to manage per diem employees

Managers should take certain measures when managing per diem employees because they work on an as-needed basis rather than reporting to the office each day like traditional employees. These steps include:

1. Remain flexible in terms of training

While per diem workers might not always be available to train in accordance with the manager’s training schedule and availability, traditional workers hired by a company are. When training per diem employees, it’s crucial to maintain flexibility because it frequently happens on their schedule rather than yours. Working around the availability of the temporary workers will guarantee that they receive the necessary training and that you can carry out your day-to-day duties as a manager or team leader.

Working with the employee to establish a schedule that works for both of you at the time of hiring is the best way to establish a training schedule for a per diem worker. By doing this, the per diem worker will be able to communicate their availability and absences and will be able to plan their availability for training.

2. Treat per diem employees the same as traditional employees

Treating your per diem employees like your full-time employees is a great way to manage them. This includes conducting regular performance evaluations of per diem workers and putting any disciplinary procedures into place. By doing this, you’ll be able to better monitor the development and performance of per diem workers and make adjustments as necessary to ensure maximum productivity.

3. Maintain thorough documentation for every per diem employee

The potential increase in unemployment liability is a drawback of using per diem workers. By maintaining a thorough document for each per diem employee you work with, you can significantly lower this risk. Record any shift changes or cancellations, when they began working for you, when they finished, and any other pertinent details pertaining to their time on your team.

4. Only schedule the per diem employee when you need them

It’s crucial to keep in mind that per diem workers are only hired when necessary to fill a specific position. Scheduling per diem workers to work regularly or full-time can make scheduling more difficult and lead to problems later. Consider making the employee a full-time employee if you do require them on a full-time basis so they can get the benefits and pay they are entitled to.

Tips for hiring per diem employees

When hiring per diem workers, keep the following in mind:

Establish a process for hiring per diem employees

Creating a hiring procedure for per diem workers can be very helpful if you hire them frequently. You could, for instance, record the duration of the per-diem employee’s work on your team during the process. This will guarantee that there is clarity when hiring and firing per diem employees and that both parties are fully aware of the expectations.

Use a staffing agency

Working with a staffing agency can be very advantageous because it eliminates the need for you to interview per diem workers. Typically, staffing companies will identify and speak with the best candidates for the job before offering you their best candidates.

Consider per diem employees when looking to fill permanent positions

If you work with per diem workers frequently, you probably have a good idea of how each one performs. Hiring a per diem worker who has previously worked with you and your team can be much more advantageous than hiring a new person if a permanent position opens up in your department or on your team.


What does it mean when an employee is per diem?

Most frequently, the term “per diem” refers to a set daily sum that a company pays to its employees or contract workers to cover business travel expenses. The Latin origin of the phrase translates to “by the day.” ”.

How is per diem paid?

Employees paid per diem receive pay by the day. This is frequently the daily allowance provided to workers who travel for work. Additionally, it is employed when short-term contract workers are given a daily rate.

What qualifies for per diem?

Employers are permitted to offer either a per diem that only covers meals and incidentals or one that includes lodging and incidentals. Take into account the employee’s “Tax Home”: As long as employees are traveling a sufficient distance from their tax home, per diem allowances are acceptable.

Is it worth working per diem?

Benefits. The possibility of benefits is the primary distinction between a per-diem position and a part-time position. Your employer may offer benefits like health insurance and paid time off when you work a part-time job. However, you probably won’t receive any benefits if you work on a per-diem basis.

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