Welcome to the forum 🙂
I assume we are talking about the application Organizations - there is another application for CRM related needs called Customers, but it´s an enterprise app.
Inside Organizations, people in general are all contacts. It does not matter if its a private or company contact. As soon as you assign a contact to any organization´s department, they become part of that organization and will be displayed as 'employee'.
When creating a new organization, a default department is automatically created, which you can use to assign people to - in case you do not care about which department someone is in.
