Understanding Person Types in Oracle HCM

What Are Person Types?

Person types help categorize different groups of people in an organization. These classifications are essential for reporting, security roles, payroll, and workforce management.

1. System Person Types (Predefined by Oracle HCM)

These are default person types in Oracle and cannot be modified, deleted, or customized.

• Employee: A worker who is on the organization’s payroll.
• Contingent Worker: A temporary worker such as a contractor or consultant.
• Non-Worker: A person associated with the company for non-employment purposes (e.g., a third-party trainer or visitor).
• Pending Worker: A worker whose hiring process is in progress but not yet fully onboarded.

2. User Person Types (Customizable by Organizations)

Oracle HCM allows you to modify or add user person types based on business needs.

✅ Example 1:

• If your company refers to employees as "Associates" instead of "Employees," you can change the Employee person type to Associate.

✅ Example 2:

• You can classify employees further into:
  • Equity Partner
  • Non-Equity Partner
  • Associates

There is no limit to the number of user-defined person types that can be added.

3. Managing Person Types in Oracle HCM

• Person records continue to exist even when a worker leaves the company.
• If a former employee rejoins, a new work relationship is created.
• Terminating an employee only ends their work relationship, not their entire record.

🔹 Important Note: If you interact with the Managers Section while adding a person, you must provide valid details; otherwise, the transaction will not proceed.

4. Converting a Pending Worker

A Pending Worker can be converted into an Employee or Contingent Worker using the Convert Pending Worker page.

Conversion Options:

✅ Manual Conversion (Regular or Quick Convert)

• Regular Conversion: The system populates pending worker details for review before finalizing the conversion.
• Quick Convert: Instantly converts a pending worker into an employee without requiring approvals.

🔹 If a conversion is canceled or left incomplete, the pending worker status remains unchanged.

✅ Automatic Conversion

The system can automatically convert pending workers through the Convert Pending Workers Automatically process.

🔹 Steps:

1. Select "Include in Automatic Conversion" for relevant workers.
2. Exclude specific workers (if necessary) by marking them as "Exclude from Automatic Conversion".
3. Run the Convert Pending Workers Automatically process via Scheduled Processes.

5. Why This Matters?

✔ Ensures accurate workforce classification for payroll and security.
✔ Helps maintain structured HR records.
✔ Streamlines hiring and workforce transitions efficiently.

I hope this blog post was helpful for you. If you have any questions or feedback, please leave a comment below.