Quick Hire

We had a contractor setup quick hire.  When they add the address book, it is entered as an "A", once they do the quick hire import, it changes the employee record to a "N" for New Hire.  Then we are not able to process with the report for the final update due to the employee record.  When I went in and changed the address book record to an "E" it could go through the final update report.

Where does the N come from?  How do I turn it off?   What is the correct procedure, should they be adding them as "E" records to begin with?