Explore our comprehensive HR Tech Glossary for essential terms, definitions, and insights on Human Resource technology—a complete guide 📚 to understanding the tools and innovations driving modern HR
Automated Compensation Planning refers to automating the process of compensation planning which includes in it the base salary, compensation and other benefits.This eases the effort of t
Absconding
Absconding refers to when an employee is not attending work and has not informed the authorities that counts to an absconding employee, this goes on for consecutive days with no one knowing the rea
Accrual Reward
Accrual reward refers to a means of benefit that, as the name suggests, gets collected or accumulated over a period of time. This can also be dependent on the employee's performance or contribution
Annual Compensation
Annual Compensation refers to the amount of compensation that an employee receives on a yearly basis; it can be both monetary and non-monetary means of compensation.It provides a holisti
Annual Leave
Annual leave refers to a period of time off that is paid for by the company, and such leave is mostly accrued by full- or part-time employees for some time off or holidays.Annual leave s
Anti-discrimination
Anti-discrimination refers to prohibiting discrimination and it is designed to prevent any means of it on the basis of their age, gender, race, religion, and more. Such practices or discrimination
Appraisal
Appraisal refers to the opportunity to assess someone, mostly an employee. To analyse how well they perform at their workplace. It also helps make decisions about bonuses and promotions for the emp
Appraisal Letter
An Appraisal letter refers to letters with specific remarks of appreciation for the employee's efforts throughout the year, which clearly helps them be more motivated and perform even better at wor
Appointment Letter
An appointment letter means a document that is formal that an employee gets offered from an employer regarding all the necessary information that the employee needs to know about their job. The joi
Applicant tracking system (ATS)
Applicant tracking system refers to a software that primarily deals with recruitment/onboarding, training the employees, performance management, and remuneration of the employees.It ensu
Apprenticeship
Apprenticeship refers to training in a specific industry or craft, educating and training the individuals in mastering the craft. The person who is looking to master such a craft is the apprentice
Attendance Policy
An Attendance Policy means a set of rules that are particularly about the attendance of employees at work. Rules that clear what happens when they are absent or decide to take leaves like sick leav
Attrition
Attrition refers to the loss of employees over time in a particular business that results in reduction of the company's workforce for various reasons, like retirements, resignations, and other volu
B
Background Check
Background Check refers to the process by which a company verifies if a person is eligible or has a good background, that is, to not have any criminal record, educational qualification's validity,
Balanced Scorecard
Balanced Scorecard means to a framework in implementing and being able to manage strategies of a company. This includes the objectives, means and targets of the strategy. It balances other financia
Behavioural Competency
Behavioural Competency refers to the evaluation of the overall traits and personality of an employee, their skills with people, achievements, managerial skills, and more.Some job roles r
Benefits
Benefits refer to the monetary rewards and other non-monetary rewards that can also be included in the category like health insurance or retirement benefits as well.Offering benefits imp
Bonus
Bonuses refer to the additional means of giving something to the employee other than the agreed-upon salary. This also tends to increase the overall performance of the employee, for it is performan
Base Salary
Base Salary refers to the salary that an employee receives from the company for the services that the employee provides to the company.The base salary serves as the foundational earnings
Business Process Outsourcing
Business Process Outsourcing refers to a method of subcontracting various business related operations to other third-party vendors. It was earlier simply limited to manufacturing companies that out
C
Career Break
Career Break refers to time off work by the employee, for personal or professional reasons. It can ideally range from a month to about two years. Such time off employment to try other things or wha
Compensation Benchmarking
Compensation Benchmarking refers to the process of comparing the different compensation packages offered by the competitors in a market to the ones of the organisation and how they fit with the mar
Cost of Living Adjustment (COLA)
Cost of Living Adjustment (COLA) refers to the compensation packages also being aligned with the inflation rates and cost of living of the employee to be able to offer competitive salary packages.<
Cost of Company (CTC)
Cost to Company (CTC) refers to the expense that the company spends on an employee on an yearly basis. It will depend primarily on the salary and other variables. It is primarily calculated by addi
Compensation Management
Compensation Management refers to managing different types of compensation, including the base salary offered to employees, bonuses, and benefits. It's done using HR software or tools that would he
Compensation Planning
Compensation Planning refers to designing compensation strategies that include everything ranging from salaries, bonuses, addressing pay gaps, incentives if any and aligning all of it with the orga
Compensation Philosophy
Compensation philosophy refers to the formal philosophy that a company has towards the compensation they offer the employees. It strives to align with the company culture and goals as well.
Compensation Package
Compensation Package refers to everything from base salary, retirement plan, bonuses, stock options, health benefits and more. It is a complete compensation package that includes both monetary and
Confirmation Letter
Confirmation Letter refers to the official letter that commands the completion of an individual as an employee at an organisation, and once the probation period is done, it is rather given to the e
D
Diversity, Equity, and Inclusion (DEI)
Diversity, Equity, and Inclusion (DEI) refers to hiring practices of creating an inclusive workspace which is simply more fair, welcoming and accepting of diversity within the office.DEI
Direct Compensation
Direct Compensation refers to the monetary compensation or payment that an employee receives for their services - salaries, commissions, bonuses and wages.It motivates employees through
Deferred Compensation
Deferred Compensation refers to a part of the employee's earnings that are given to them on a future date, the future date can mostly be in their retirement timeline.Deferred compensatio
Disciplinary Action
Disciplinary Action refers to means of action taken against employees who do not abide by the company policies and regulations that are already set. So any means of non-compliance in the form of mi
Delayering
Delayering refers to the process of removing layers of hierarchy in an organisation. It streamlines and boosts operational efficiency; it results in a more flatter structure with fewer layers of hi
E
Employee Stock Ownership Plan (ESOP)
Employee Stock Ownership Plan (ESOP) refers to a benefit plan that the company offers to the employees to give them a sense of ownership by acquiring company stock.ESOPs incentivize loya
Employee Assessment
Employee Assessment refers to means of performance reviews that are used to evaluate the employee's performance and their productivity rate at the workplace.This will improve the perform
Employee Clearance
Employee Clearance refers to the process when an employee either retires, is expelled, or is voluntarily retired from their job role in the company. After clearances from various departments are ob
Employee Onboarding
Employee Onboarding refers to the process of orientation of new employees into an organisation. It includes filling out forms, training, the introduction of new hires to the organisation, and more,
Employee Retention
Employee Retention refers to the ability of a company to be able to keep their employees after hiring them, the efficient and skilled employees.High employee retention reduces turnover c
Employee Recognition Platform
Employee Recognition Platform refers to a platform that is used for recognition and appreciation of employees which in turn tends to increase employee satisfaction and promote employee retention.
Employee Engagement
Employee Engagement refers to the level of engagement an employee has while in the organisation.High employee engagement drives productivity, enhances job satisfaction, and promotes a po
Employee Lifecycle
Employee Lifecycle refers to the different stages of what an employee goes through in a company starting from their onboarding, orientation, career planning to termination or retirement all of thes
E- recruitment
E-recruitment refers to using online means and technology to recruit, attract and assess the onboarding candidates for a job. HR software can be used to build these or in-house e-recruitment platfo
F
Financial Freedom
Financial Freedom refers to an individual's ability to attain independence when it comes to the money they spend and their financial security.This empowers individuals to make life choic
Fringe Benefits
Fringe Benefits are additional means of benefits given to an employee apart from their basic salary in the form of health insurance, retirement plans, and more.These enhance the overall
Five factor model
The Five Factor Model refers to a theory based on the Big Five personality traits: conscientiousness, agreeableness, neuroticism, extraversion, and openness. It helps in standardising and tracking
Form 12B
Form 12B is issued by the Tax Department of India; it is submitted mid-year and provides all income details of an employee from their previous organisation. Rule 26A of the Income Tax Act elaborate
Floating Holidays
Floating Holidays refer to flexible days off granted to employees as per their decision. These are not regular public holidays but rather personal days off that employees can take as needed.
G
Gender Pay Gap
Gender Pay Gap refers to the monetary pay disparity observed between genders, notably the difference in pay for women compared to men.Measuring the gender pay gap helps organisations add
Gross Compensation
Gross Compensation means the total compensation that is given to employees before any deductions, such as tax or retirement fund contributions.Gross compensation provides employees and e
Graded Pay Structures
Graded Pay Structures refer to a system where jobs are divided into grades or bands, each with a predetermined pay scale.Enables consistent and transparent compensation management, align
Gratuity
Gratuity refers to a sum given to employees by the employer, typically at retirement, as a reward for service. Early payouts are possible under certain conditions.Gratuity serves as a fi
Grievance
Grievance refers to an employee's dissatisfaction or issue with a certain part of the company, which can be reported to the employer or grievance redressal committee.Provides a formal av
Guaranteed Pay
Guaranteed Pay means a set amount of salary given to an employee, independent of performance. This can be a monthly or annual pay structure.Ensures financial stability for employees, con
H
Health Insurance
Health Insurance refers to a benefit ensuring that an employee's medical needs are covered by the company, often reducing their personal medical expenses.It offers financial security in
HR Analytics
HR Analytics means improving human resource processes through data analysis, including areas like hiring, employee engagement, and performance.Data-driven HR insights lead to informed de
Headcount Planning
Headcount Planning helps organisations determine the number of employees needed to achieve their operational goals.Primary use-case / Benefit: Facilitates efficient workforce management,
Hierarchy of Needs
Hierarchy of Needs is a theory proposed by Abraham Maslow, arranging human desires in a pyramid from basic needs to self-actualization.In organisational settings, it helps structure empl
Hybrid Working
Hybrid Working is a flexible arrangement where employees work partly from home and partly in the office, as agreed with the company.Supports work-life balance, enabling employees to choo
HR Audit
The human resources audit refers to the examination of the company's practices and policies and makes sure that everything is legally compliant. It reviews everything from compliance related to the
HR Software
HR software refers to a software that automates and eases the process of HR tasks and, in turn, is more efficient and less time-consuming than when these tasks are performed manually.It
I
Incentive Plan
Incentive Plans refers to a means to motivate employees to be able to achieve the performance goals of the company through a compensation plan that rewards them when they do achieve their target go
Indirect Compensation
Indirect Compensation refers to non-monetary compensation, such as retirement benefits, medical insurance, and flexible hours.Enhances overall employee value proposition, contributing to
Internal Equity
Internal Equity refers to the equity or equality in pay that is to be ensured within an organisational structure for employees that have the same job roles and responsibilities.Promotes
Individual Pay
Individual Pay refers to the total earnings an employee receives in an organisation, including salary and additional benefits.Offers employees a transparent view of their total compensat
Induction
Induction refers to a process of introducing a new employee to the organisation.The morale, culture, and all of the things to get them in full swing for the job. They follow the same ind
J
Job levels
Job levels refers to the structure of levels of job that is available in an organisation that is categorically differentiated based on compensation, job roles and responsibilities.Offers
Job Evaluation
Job Evaluation is a method to assess the value of a job role, ensuring fair compensation.Facilitates equitable pay scales, supporting organisational transparency and reducing pay inequit
Job mapping
Job mapping refers to having the goals of the company be aligned with the job role and all of the responsibilities that come with it.Ensures that roles are purpose-driven, supporting emp
K
Key Performance Indicators (KPIs)
Key Performance Indicators refers to the measure of the performance of employees working in an organisation. Such measurable metrics can be more specific and accurate in evaluating the progress of
Key Result Areas
Key Result Areas refers to the outcomes for which some job roles in the organisation are responsible or a combination of them are. So, such areas that are responsible for such outputs or results.
Knowledge Management
Knowledge Management refers to the process of sharing, generating and accumulating knowledge for improving the overall performance of an organisation.This is a process of creating a more
KSA's
KSA refers to knowledge, skills, and abilities. These include everything that an employee needs to have to justify his job role. It outlines the job description and personal qualities of the candid
L
Lump-Sum Bonus
Lump-Sum Bonus is the bonus that is given to the employee, and it is given one time for their ability to perform and hit a very critical target.Lump-sum bonuses serve as strong motivator
Living Wage
Living wage refers to a level of wage that ensures that employees are able to meet their basic living expenses, such as food, shelter, and transport, and maintain a normal standard of living.
M
Market Pricing
Market Pricing refers to the understanding of the pricing levels of the different competitors for their employees and for similar jobs.Organisations use market pricing to set fair, compe
Management Styles
Management styles refers to the styles and approaches to handling situations play a crucial role in shaping leadership qualities. Each style brings its own unique strengths and weaknesses, which ar
Mentoring
Mentoring refers to someone as a means of guiding someone by sharing one's own experiences, knowledge, and abilities with the other. Such mentors who are ready to help and also prepared to clear th
Merit Pay
Merit pay refers to an increase in the salary of an employee because of their merit or their performance.Merit pay serves as an incentive for employees to maintain high performance and e
Monetary Rewards
Monetary rewards refers to financial compensation given as part of a benefits package, including bonuses, incentives, and other cash-based rewards.Monetary rewards motivate employees by
N
Non-Monetary Rewards
Non-Monetary Rewards refers to the compensation packages; the non-monetary rewards include all of the rewards that don't have a financial value associated with them. This can come in the forms of a
Non Disclosure Agreement
Non-Disclosure Agreement refers to a confidentiality agreement that refers to a legally binding agreement between parties restricting sharing certain information about the organisation that is conf
Net Salary
Net Salary refers to an employee's salary after all the deductions that are made when it comes to their insurance, taxes, and other means. The gross earnings of the employee from the work at the co
O
Offer Letter
Offer letter refers to a letter that is given to a prospective employee who is chosen from the employer that describes the details about the employee's job roles and responsibilities. Including all
Offshoring
Offshoring refers to a means of relocation of the business or moving the base to another country for reasons like beneficial governing law or reduced labour costs. It includes processes that are of
On-Target Earnings (OTE)
On-Target Earnings (OTE) refers to these earnings being more so based on the employee achieving the targets that were set for them and, in doing so, their total earnings from it, inclusive of salar
Onboarding
Employee onboarding is defined as the process of introducing the employee and having them familiarise themselves with the environment of the company, its policies, the role of the employees in the
Organisational Culture
Organisational Culture refers to everything from an organisation's belief systems to their values and attitudes. This is unique to every organisation, and it has both written and unwritten rules th
Overtime Pay
Overtime Pay refers to the amount of money that is paid for employees working beyond their standard working hours. Such overtime pay helps employees be motivated to work overtime sometimes or as ne
P
Pay Equity
Pay Equity refers to ensuring that all the employees in an organisation are paid equally for their work in similar job roles and are not discriminated against in any means based on their race, gend
Pay for Performance
Pay for Performance refers to an employee being paid their salary and also other benefits as per the performance that they show in their company to achieve the targets that are set or exceed that e
Performance Evaluation
Performance Evaluation means to a form of evaluating and giving reviews of the overall performance of an employee, typically to provide feedback and have them improve their performance in the futur
Pay Transparency
Pay Transparency refers to a means of communicating very clearly the pay structure of the employee to them. Such sharing of information and transparency will make the process of understanding compe
Performance Bonus
Performance Bonus means additional means of monetary reward that is given to an employee based on how well they perform. So, as they achieve the targets set for them or also exceed that expectation
Paid Time Off (PTO)
Paid Time Off refers to a non-monetary benefit to give employees the ability to take time off and still be paid for it. This includes break time, vacation days, sick leaves, and more. It is upon th
Q
Qualified Retirement Plan
A Qualified Retirement Plan means a plan that provides tax benefits on retirement savings with compliance to the set requirements by the IRS for both the employers and employees.Qualifie
Quality Management
Quality Management refers to an approach that ensures every product or service provided by the company meets a high standard of quality and excellence. All aspects related to the product or service
R
Reward Strategy
Rewards Strategy means an approach every company requires in order to provide the right rewards strategy for their employees. To compensate and motivate them with financial incentives, bonuses, non
Redundancy
Redundancy refers to a process of terminating employees from their employment.The most common reasons are jobs becoming diminished, lack of funds, relocation of the business, poor econom
Restricted Stock Units (RSUs)
Restricted Stock Units (RSUs) means the shares of the company that are provided to employees as a part of their compensation and rewards strategy. This is also subjected to a certain vesting period
Recruitment
Recruitment refers to the process of identifying and hiring the most qualified candidate for a position within an organisation, involving assessing the job's requirements, attracting suitable appli
Remuneration
Remuneration is defined as the pay someone receives for their work. It includes everything from salary, bonuses and other compensation. It consists of monetary and non-monetary forms of compensatio
Risk Management
Risk management means a process in which organisations identify and assess potential business risks, implementing strategies to reduce or mitigate their exposure to these threats. Prioritisation is
S
Salary Bands
Salary bands refers to considering factors such as the experience of an employee, abilities, the job responsibilities assigned to them, and more. With this, a well-structured range of pay is establ
Salary Compression
Salary Compression is defined as the narrow gap in the pay of employees sometimes in an organisation, probably considering factors like experience, skills, tenure, and more. External factors like m
Short-Term Incentives (STI)
Short-Term Incentives (STI) refers to rewards that are designed for employees who have completed the short-term targets that were assigned to them, and they are rewarded for it via incentives.<
Sabbatical
Sabbatical means a certain period of time, whether paid or unpaid, is given to the employee to be able to explore their life or pursue some personal interest like travelling or other.Sab
Stock Options
Stock Options refers to a form of benefit that is granted for the employees to purchase at an already determined price. This is also subjected to a certain vesting period as well as specific condit
T
Total Compensation
Total Compensation means all of the pay and benefits that are to be included to motivate and help employees get a complete package that includes everything ranging from their base salary to benefit
Team Building
Team building refers to activities designed to motivate team members and enhance overall team performance. It is essential to provide motivation, as teams cannot be expected to perform at their bes
Tangible Rewards
Tangible rewards refers to material incentives that can be financial, like cash, or take the form of gifts convertible to cash. In a business setting, these often include salary, bonuses, fringe be
Talent Management
Talent management means the strategic process of identifying vacancies, hiring suitable candidates, developing their skills, and retaining them to meet long-term business goals. While it overlaps w
Total Rewards
Total Rewards includes several things including - * Financial and non-financial benefits * Wellness programs * Work-life balance initiatives and more A holistic total rewards program appeals to a d
Total Cash Compensation
This is the sum total of cash compensation received by the employee, including the base salary as well as any additional monetary benefits received, or bonuses, commissions, and more.Tra
Time-Based Incentives
Time-based refers to an incentive that is restricted to the amount of time or tenure of the employee in a particular company.Time-based incentives reward loyalty, encouraging employees t
Turnover
Turnover refers to the total money generated by a company from its core business activities within a specific time frame. Income from non-core activities, like land rental, is categorised as non-op
U
Unvested Stock
Unvested Stock refers to stocks that are given to employees that don't have certain mandated conditions met for them, and so they are unvested; once these specific conditions are met, they can be v
V
Variable Pay
Variable Pay is the concept of how compensation is a means of variable pay, for it changes as per the performance of the employee meeting with the company standards.Refers to a flexible
Virtual HR
Virtual HR refers to using technology to offer employees various options for accessing HR services. Managed through self-service platforms, this approach allows employees to input their information
Vesting Schedule
This is the time that is taken before the employee can purchase shares of the company and get a right of ownership. It has to be fully vested and not unvested shares, and so this timeline is known
W
Work-Life Balance Programs
Work-Life Balance Programs means programs promote the idea of having a work-life balance for the employees with the availability of flexible work hours, other wellness programs, and more that make
Wage Scale
Wage Scale refers to a more structured table of all of the wages associated with the different job roles in the organisation, considering other factors such as tenure, experience, and skills.
Workforce management
Workforce Management refers to a set of strategies and processes used to efficiently manage and increase the productivity and performance of the workforce.This involves managing the empl
Wrongful termination
Wrongful termination means where an employee is terminated wrongfully.'Wrongfully', here implies that it breaches the terms of the contract of employment that is made and is terminated w
Y
Year-End Bonus
Year-End Bonus refers to a benefit given to the employee as a one-time payment for their performance individually or their contribution to a team.It refers to a motivational reward, ofte
