HR Terminology

Glossary

A

Appraisal

Appraisal refers to the systematic evaluation of an employee’s skills and performance in relation to predefined organisational objectives.

Attendance

Attendance is the action or state of being present at a place of work according to the company's policies.

Attendance Policy

An Attendance Policy outlines guidelines and expectations regarding employees' presence and punctuality in the workplace.

Attrition

Attrition refers to the gradual reduction in the number of employees in an organization due to various factors such as resignation, retirement, or termination.

B

Background Verification

Background verification refers to the structured procedure implemented by companies to validate the details provided by applicants throughout the recruitment phase.

Basic Salary

Explore the comprehensive guide on background verification with Stohrm. Learn about the process, importance, and best practices for a secure workforce.

Business Expense Reimbursement

Business expense reimbursement is a process by which employees are compensated for out-of-pocket expenses incurred while performing job-related duties on..

C

Career Path

A career path refers to the journey individuals undertake as they progress in their professional lives.

Career Planning

Career planning is a systematic and ongoing process through which employees set and pursue their professional goals, make informed decisions about their career paths..

Casual Leave

Casual leave is a type of leave granted to employees that can be applied during personal or unforeseen circumstances.

Churn Rate

It also known as the rate of attrition or customer churn, is the rate at which customers stop doing business with an entity.

Cost to Company (CTC)

Cost to Company (CTC) is the yearly expenditure that a company spends on an employee. Each employee spend depends on their salary and variable.

Compensatory Off

Compensatory Off or "Comp Off" refers to a compensatory time off granted to an employee for extra/additional hours worked beyond their regular working hours.

D

Deferred Compensation

Deferred compensation is a strategy where a portion of one's earnings is set aside for payment at a later date than when it was initially earned.

Diversity, Equality, & Inclusion (DEI)

DEI fosters a workplace where everyone is valued, treated fairly, and given equal opportunities, regardless of background or identity.

Dearness Allowance

Dearness Allowance (DA) is a cost-of-living adjustment paid by employers, particularly the government, to employees and pensioners to mitigate the impact of inflation on their purchasing power.

Downsizing

Downsizing is the process by which organisations reduce their workforce or restructure to improve efficiency, cut costs, or adapt to changing market conditions.

Due Diligence

Due diligence is a thorough review of value, risks, and compliance before finalising a business, transaction, or investment.

E

Employee Data Management

Employee Data Management is the process of collecting, storing, handling, and retaining employee data in a systematic and organised manner, usually..

Employee Self-Service (ESS)

ESS is a tech-enabled HR platform empowering employees to access and manage personal & work-related information independently, without HR intervention.

Employee Provident Fund (EPF)

EPF is a social security initiative or a scheme governed by the Employees' Provident Funds and Miscellaneous Provisions Act, 1952.

EPF Pension Scheme (EPS)

In addition to the EPF, a portion of the employer's contribution is allocated to the Employee Pension Scheme (EPS), providing a pension to employees after attaining the age of 58.

Employee State Insurance Scheme

Employee State Insurance (ESI) is a self-financing social security and health insurance scheme designed to provide medical and cash benefits to employees.

Employee Benefits

Employee benefits, also known as perks or fringe benefits, are extra advantages provided to employees alongside their regular salaries or wages.

Employee Database

An employee database serves as a centralized repository housing essential information about each employee within an organization.

Employee Value Proposition (EVP)

Employee Value Proposition (EVP) is the comprehensive package of rewards & benefits employees receive in exchange for their contributions in the workplace.

F

Full & Final Settlement

Full & Final Settlement refers to the process by which an employer completes the financial transactions and legal obligations associated with an employee's exit from the organisation.

Form 16

Form 16 is an important document provided by employers to their employees, detailing the amount of tax deducted at source (TDS) from their salary.

Form 24Q

Form 24Q is a statement filed by the employer under the Indian Income Tax Act, 1961, to provide TDS details from salaries.

Form 12B

Form 12B is a statutory document used in India for income tax declaration. It is typically submitted by employees to their employers when they join a new organization.

G

Gross Pay

Gross pay is the total compensation an employee receives before any deductions are applied.

Gratuity

Gratuity refers to a monetary token of appreciation provided by an employer to an employee for their dedicated service throughout their tenure.

Grievance

Grievance is an expression of discontent from an employee regarding company policies or working conditions, often due to a perceived violation of laws or regulations.

H

HR Analytics

HR analytics refers to the systematic analysis of people-related data and metrics within an organisation to guide HR management decisions.

HR Audit

HR Audit is an evaluation process aimed at assessing the effectiveness of the HR Department and its activities in achieving organizational objectives.

HR Business Partner

HR Business Partners are specialists in HR who collaborate with an organisation to craft an HR strategy that aligns closely with the overarching goals of the organisation.

HR Consulting

Specialized guidance and services offered by external experts to assist businesses in optimizing their HR operations and effectively implementing new policies and procedures is called HR Consulting.

HR Dashboard

HR dashboards are visual representations of key HR metrics and data, designed to provide a quick and easily understandable overview of HR-related information.

Human Capital Management (HCM)

Human Capital Management (HCM) is a strategic framework focused on the recruitment, management, and development of a company's workforce.

Human Resource Management System (HRMS)

Human Resource Management System (HRMS) is a comprehensive software suite utilized by organizations to oversee internal HR operations.

HRIS

HRIS is a sophisticated digital tool that empowers organisations to streamline and manage their HR processes seamlessly.

I

Investment Declaration

An investment declaration is a list of tax-saving investments that an employee plans or proposes to commit for a particular financial year.

Incentive

Incentive pay is a practice where employees receive additional compensation as a reward for surpassing their regular job responsibilities.

Induction

Induction refers to the systematic process of acquainting new employees with the organizational culture, practices, and protocols, facilitating their swift integration into the company.

J

Job Description (JD)

A job description (JD) is a detailed description of a job position, focusing on specific tasks and responsibilities associated with a particular job.

Job Profile

A job profile is a comprehensive overview of a specific role within an organisation.

Job Analysis

Job analysis is a methodical approach to gathering comprehensive details about a particular job, to formulate an accurate job description.

K

Key Performance Indicator (KPI)

A Key Performance Indicator (KPI) serves as a quantifiable metric indicating a company's efficacy in attaining crucial business goals.

Key Performance Areas (KPA)

Key Result Areas, also known as "Key Performance Areas" (KPAs), are broad domains of outcomes or outputs that a role or combination of roles is tasked with.

Key Responsibility Area (KRA)

Key Result Areas, also known as "Key Performance Areas" (KPAs), are broad domains of outcomes or outputs that a role or combination of roles is tasked with.

L

Leave of absence

A leave of absence is an approved time-off period during which an employee is granted permission to be away from work while maintaining job protection.

Labour Welfare Fund

Labour Welfare Fund (LWF) is a statutory fund established by various state governments to promote the welfare of labourers and workers.

Leave Travel Allowance

Leave Travel Allowance (LTA) is a component of the salary package offered by employers to employees in India.

Leave without Pay

Leave Without Pay refers to a situation in which an employee takes time off from work and temporarily ceases to receive regular salary or wages for the specified duration of the leave.

Leave Encashment

Leave encashment refers to the practice of converting accrued, unused leave or vacation days into monetary compensation.

Layoff

A layoff is the suspension or permanent termination of employment of workers by their employer.

Learning & Development (L&D)

Learning & Development refers to the strategic process of enhancing employees’ skills, knowledge, and competencies to drive individual and organisational growth.

M

Manager Self-Service (MSS)

MSS is a platform that empowers managers to handle HR and admin tasks related to their teams, direct reports, or departments efficiently.

Maternity Leave

Maternity leave is a type of long-term paid leave granted to a pregnant employee in an organisation.

Mean Wage

Mean wage, also known as average wage, refers to the typical amount of compensation received by employees for the work they perform within a defined timeframe.

Medical Insurance

Medical insurance is a financial safety net that covers the cost of medical and surgical expenses for an individual or their family.

Minimum wages

Minimum wage is the lowest legally mandated remuneration that employers must pay their employees for the work performed within a specified period.

N

Net Pay

Net pay is the amount of money an employee receives from their employer after deducting various deductions such as PF and income tax from their gross pay.

Non-disclosure Agreement (NDA)

A Nondisclosure Agreement (NDA) serves as a legally binding contract designed to safeguard sensitive information exchanged between two or more parties during a business relationship.

Notice Period

Notice period refers to the duration that an employee or employer must provide before terminating an employment contract.

O

Offboarding

Offboarding is a critical aspect of the employee life cycle and involves activities from the time an employee resigns/is terminated until their exit is complete.

Onboarding

Onboarding is the process of introducing and integrating new employees into their new workplace.

Organogram

An organogram is an organisational chart with a pictorial representation of the organisation's hierarchical structure, showing reporting..

Overtime

Overtime refers to the additional hours worked by an employee beyond their standard working hours.

P

Payroll

Payroll is a systematic and routine process within an organisation that involves the calculation and disbursement of employee salaries and wages.

Payroll Compliance

Payroll compliance involves ensuring compliance with local, state, and central tax regulations related to wages, working hours, and employee benefits.

Pay Slip

A pay slip is a document containing information about an employee's earnings, deductions, and net pay for a specific pay period.

Performance Improvement Plan (PIP)

A Performance Improvement Plan (PIP) is a structured program designed to help employees address and improve their performance issues in..

Performance Management System

A PMS is a comprehensive and structured process or framework used to measure, manage, and enhance the performance of employees and teams.

Permanent Employee

A permanent employee is an employee who receives wages or salary directly from the employer. These employees do not have an end date to their..

People Analytics

People analytics refers to the strategic use of employee and candidate data to gain insights into their impact on organizational objectives and to evaluate the efficacy of hiring and HR initiatives.

Privilege leave

Privilege leave (PL) is paid leave that an employer grants to employees in recognition of their work and commitment to the company.

Probation period

A probationary period is an employment status assigned to a newly joined employee for a specified duration of time, during which the company..

Professional Tax

Professional Tax (PT) is a state-level tax imposed directly on the income of individuals by various state governments in India.

R

Recruitment

Recruitment is the tactical process for identifying, attracting, and hiring candidates for immediate requirements. It is a part of the talent..

Rent Receipt

In India, a rent receipt is a document provided by a landlord to a tenant as proof of the payment of rent for a specific period.

Remuneration

Remuneration encompasses the financial and non-financial rewards that employees or executives receive from their employer in exchange for their work.

Rewards & Recognition

Rewards and Recognition encompass a structured system designed to acknowledge individuals' contributions and achievements within an organization.

Relieving letter

A relieving letter is a formal document provided by an employer to an employee upon their resignation.

Retirement

A relieving letter is a formal document provided by an employer to an employee upon their resignation.

Resignation

Resignation is the formal process by which an employee voluntarily ends their professional relationship with an organisation.

S

Salary Register

A salary register or a payroll register, is a detailed record of the compensation paid to employees during a specific period.

Sandwich leave

Sandwich leave is a unique leave policy primarily aimed at preventing employees from taking long leaves.

Sick leave

Sick Leave is a type of leave granted to employees to address medical conditions that temporarily prevent them from performing their duties.

SME (Small & Medium Enterprises)

Small and Medium Enterprises are businesses that maintain revenues, assets, or a workforce below a certain threshold, which varies across countries and industries.

Software as a Service (SaaS)

Software as a Service (SaaS) is a method of software distribution where applications are hosted by a cloud provider and accessed by end users via the Internet.

Succession Planning

Succession planning is a strategic process through which organisations identify and develop potential future leaders to ensure a smooth transition of key roles within the company.

Section 80C

Section 80C is a provision under the Income Tax Act of India that allows individuals to claim deductions from their taxable income.

Section 80D

Section 80D of the Income Tax Act allows taxpayers to claim deductions for premiums paid towards health insurance policies.

Section 80G

Section 80G of the Income Tax Act provides a tax deduction to those who donate to charitable organisations approved under this section.

T

Talent Management

Talent management is a broader term that encompasses the entire employee lifecycle, including performance management, employee development, retention..

Talent Acquisition

Talent acquisition involves strategies and processes for identifying, attracting, recruiting, and retaining the right job candidates for the..

Timesheet

A timesheet is a document used to record and track the amount of time an employee spends on various tasks or activities within a specific period.

TDS

Tax Deducted at Source (TDS) is a mechanism where a certain percentage of an individual’s income or payments is deducted upfront by the payer and deposited with the government.

Tax Deductions

Tax deductions refer to specific expenses or contributions that reduce taxable income, in turn lowering the amount of tax owed to the government.

U

Universal Account Number (UAN)

The UAN is a unique identification number assigned to an employee enrolled in the Employees' Provident Fund (EPF) scheme in India.

Upskilling

Upskilling refers to acquiring new skills or enhancing existing ones continuously to stay relevant in an evolving job market.

Unconscious Bias

Unconscious bias refers to the mechanical, unintentional judgments we form about people based on our past experiences, social conditioning, and cultural background.

V

Variable Pay

Variable pay refers to compensation that fluctuates based on individual or organizational performance.

Voluntary Retirement

Voluntary Retirement is a structured exit option allowing employees to retire early, usually with financial incentives from their employer.

Voluntary Provident Fund (VPF)

The Voluntary Provident Fund (VPF) is an extension of the EPF, allowing salaried employees to contribute beyond the mandatory EPF contribution on a voluntary basis.

W

Workforce Management

Workforce Management encompasses a series of procedures adopted by a company to optimize employee productivity.

Weekly Off

A Weekly Off is a designated rest day in a workweek, allowing employees to relax, recharge, and maintain a healthy work-life balance.

White Collar Workers

White-collar workers are professionals who primarily perform job duties that involve mental or administrative tasks rather than manual labour.

Work From Home (WFH)

Work From Home is a work arrangement that allows employees to work remotely, typically from their residence, instead of commuting to a traditional office setting.

Work-Life Balance

Work-life balance is the harmony between work and personal life, ensuring time for family, health, leisure, and growth while meeting job responsibilities.

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