Types of Workforce: Definition and Examples in Indonesia

Within the intricate layers of the labor market, one thing is for certain: the demand for a hardy labor class is quickly expanding. Seeing as the current projection of the world economy is trending towards a greater expansion, becoming familiar with the main force driving this modern behemoth will be a key factor of surviving within it; of course, I’m talking about the workforce.

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Understanding one’s workforce is a key strategy for improving it, especially if you are operating within the higher echelons of a business environment, as in, being a member of upper management, a CEO, or even within the human resources department.

By understanding the different types of workforce, your company can better prepare itself to face future challenges and further analyze the competence of your labor force, therefore ensuring that the company can achieve its bottom line business goals, and of course, reduce costs in regards to  ineffective employee recruitment and selection processes.

So, how about Indonesia? What types of workforces exist here? Well first, we must understand the very definition of labor; well, generally speaking, within a modern neoliberal context, an individual’s labor, or willingness to work, can be exchanged for cash via a corporation that employs them. Meanwhile, the definition of “manpower”, according to Indonesian law, namely Law Number 13 of 2003, regards everyone who is able to do work to produce goods and/or services, both to meet their own needs and for the community as a whole.

It is important to know that, in Indonesia itself, the age of “productivity”, or the actual working age is defined by those between the ages of 15 to 64 years. However, not all residents who enter this age range will be counted. This is because there are plenty of people who, despite being within the appropriate age range for being apart of a productive workforce, choose not to for a variety of reasons. Some of these include students, housewives, or recipients of retirement income.

There are many factors that constitute a strong economy, such as those pertaining to infrastructure and natural resources. However, perhaps the most important out of all of these is a nation’s workforce, as no matter how abundant a society’s natural resources are, or how impressive its infrastructure is, these will need to eventually be run by a capable and educated workforce.

In addition to natural factors and capital factors, currently labor is a factor of production that is considered important by every country. It is said so, because even though a country has abundant natural resources and large capital, they will still need manpower to run their business.

Types of Workforce

The types of workers in Indonesia are divided based on several categories, such as:

1. Educated workforce

As the name implies, educated workers are those who possess a higher education with which to support their professions; pilots, teachers, and doctors are types of educated workers.

2. Trained workforce

A Trained workforce is specifically trained in a certain area in regards to conducting a certain task. Examples of trained workers include designers, mechanics, bus drivers, etc.

3. Untrained workforce

Untrained and uneducated workers are have not engaged in any sort of higher education, and possess no specific skills in any specialized fields. Examples of these types of workers include cleaners, transporters, etc.

Types of workforce based on their functionality

1. Physical labor

Physical workers will engage in their work through the reliance on physical strength, these include construction workers, factory workers, etc.

2. Academic workforce

In contrast to physical labor, the academic workforce relies on their ability to solve problems and use their minds. So, the main crux of their work involves applying and formulating ideas. Examples include designers, content writers, architects, directors, managers, and many more.

3. Production industry workers

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As the name implies, these workers are involved with the nation’s production industries, and are involved in creating products and consumer goods. The main example within this category is industrial factory workers.

4. Marketing personnel

Marketing personnel are involved within the marketing industry that exists to engage in the sales of products and services.

5. Administrative personnel

Within the hierarchy of a company, the echelons which are responsible for organization include those who work within the administration section of the company; for example, a secretary.

Types of workers based on their employment status

A worker’s employment status regards the basis on which the individual is employed to a certain company. They can be employed on a “once a week” basis, for example, or they can be incorporated within the company’s actual workforce. These are just some examples:

1. Freelance workers

Freelance workers are individuals who are employed on their own basis, and without any long-term commitments to a company. Therefore, they will be hired by a company or client to work on a project for a certain period of time. In addition, it should be noted that casual workers are also not entitled to benefits from the company. Currently, there are many workers who decide to work as freelancers. Examples such as photographers, web developers, designers, and many more.

2. Contract labor

As the name implies, contract workers are workers who have a work agreement for a certain time or are contracted to work in a company for a certain period of time. This type of workforce is still entitled to receive benefits from the company.

For example, labor will be contracted by a company for 2 years. If employees have worked for two years at the company then they can stop working. However, if the company extends the work contract period, then the worker can return to work at the company.

Based on the latest government regulations, the working period of workers with the status of a Specific Time Work Agreement (PKWT) or contract has been extended for 5 years. Meanwhile, according to the old rules, the maximum period of employment for contract employees is 3 years.

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