Hiring the right staff types
Employee, contractor or intern? Our visual guide gives an overview of staff types so you can choose the right kind of help for your business — and then test yourself on staff types with our quiz.
Deciding you’re going to get help is one thing, but getting the best type for you is another. Before you rush out to hire someone, you first need to consider things like:
- how much work actually needs doing
- when work needs to be done by
- the difference between an employee and a contractor
- what level of responsibility you’re willing to take on
- what the rules are around different staff types.
Use our visual guide to:
- gain an overview of the different types of help available
- decide what kind of help might suit you best.
You can also use it to swot up for the quiz on this page.
Once you're done, use the Employee Cost Calculator to get an estimate of what hiring that employee might cost.
Click "View" to see the full visual guide, or see the text version below it.
Guide to staff types
The staff types listed below are text versions of the visual guide above. It's aimed at people who use screen readers, or who prefer to take in information by reading.
Hiring an employee is a massive decision. It can take your business to the next level of maturity and also set you up for long-term growth. Unfortunately it’s also something that’s not always done the right way, so even if you’re desperate for help you should first spend some time figuring out exactly what kind of help is right for you.
Once you’re committed to getting help — and you know what kind is the best fit for you — double check your costs with our Employee Cost Calculator. Each employee needs a written contract. Use our Employment Agreement Builder to create contracts tailored to your business.
Permanent employee
I can help you with:
- full or part-time work that always needs doing
- work that’s ongoing and expected to continue indefinitely
- building a work culture that is committed to your business
- moving into future leadership roles.
Fixed-term employee
I can help you with:
- working for a specific period of time, eg seasonal work
- completing a big project that needs doing
- covering the workload of other employees that might be away, eg parental leave.
Casual employee
I can help you with:
- those times when you might need an extra set of hands
- showing up when I’m needed
- fitting in to your schedule.
Contractor
I’m not classed as an employee. I can help you with:
- my special skills or knowledge
- working for a limited time
- bringing my own tools and equipment with me.
Unpaid intern or volunteer
I’m not classed as an employee. I can help you with:
- freeing up your time
- doing one-off jobs
- charity work or anything that might give me new experiences or skills.
Permanent, fixed-term, casual employ or contractor — test yourself on the differences. When you're done, follow the links in the answers for more details.
All paid employees need
- Any equipment needed to do their job, like a computer.
- A signed employment agreement specific to their role and employee type (includes things like hours of work, location of work, description of work, and salary) — use our Employment Agreement Builder to create contracts tailored to your business.
- A tax code declaration (IR330).
- Relevant KiwiSaver forms (for New Zealand residents or those on a long-term visa).
- Health and safety training and equipment.
Remember, you also need to:
- Register as an employer with Inland Revenue.
- Deduct PAYE from their salary/wages, which you record in your Employer monthly schedule (IR348) and Employer deductions form (IR345).
- Pay annual ACC levies.
Complete my tax code declaration(external link) — Inland Revenue
