HR glossary
Plain answers to the hiring and HR terms people search most, from direct sourcing and talent mapping to attrition rate and employer of record.
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Attrition RateAttrition rate is the percentage of employees who leave an organisation over a set period, such as a month or a year. It is calculated by dividing the number of leavers by the average headcount for that period and multiplying by 100.Automated Reference CheckingAutomated reference checking is the use of software to collect employment references online instead of by phone. The candidate nominates referees, the system sends each one a structured questionnaire, and the answers are compiled into a report, often with checks on who actually responded.
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Background VerificationIndiaBackground verification in India is the pre-employment process of confirming that a candidate's identity, address, education, employment history and criminal record match what they declared. Employers usually run it after an offer, with the candidate's written consent, either in house or through a specialist screening agency.Buddy SystemA buddy system is an onboarding practice where each new employee is paired with an experienced colleague, outside their reporting line, who helps them settle in. The buddy answers everyday questions, explains unwritten norms and makes introductions, while the manager stays responsible for performance.
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Campus RecruitmentCampus recruitment is the hiring of students and recent graduates directly from universities and colleges for internships, graduate schemes and entry-level jobs. Employers run it through placement cells, careers fairs, presentations, online assessments and interviews, usually on a yearly cycle tied to the academic calendar.Candidate Relationship Management (CRM)Candidate relationship management (CRM) is the practice, and the software, recruiters use to attract, organise and keep in touch with potential candidates before they apply and between roles. It treats hiring like a sales pipeline, so you can nurture people until the right job opens.Compensation StructureA compensation structure is the framework an organisation uses to decide what each job pays. It groups jobs into levels or grades, sets a pay range for each, defines the mix of fixed pay, allowances, variable pay and benefits, and states how people move within and between ranges.Competency FrameworkA competency framework is a structured model that sets out the skills, knowledge and behaviours an organisation expects from its people, with descriptions of what each looks like at different levels. It gives hiring, performance reviews, development and promotion decisions a shared, consistent standard.Competency MappingCompetency mapping is the process of identifying the competencies each role needs, then assessing employees or candidates against them to find strengths and gaps. The result is a map of required versus actual skills that guides hiring, training, succession planning and internal moves.Contingent WorkforceA contingent workforce is the part of an organisation's labour made up of people who are not permanent employees, such as temporary agency staff, contractors, freelancers, consultants and gig workers. They are engaged for a project, a fixed period or a fluctuating volume of work.Cultural FitCultural fit is how well a candidate's values, working style and ways of collaborating match how an organisation actually operates. Assessed with clear criteria, it helps predict how someone will work within a team; judged on gut feeling, it becomes a cover for hiring people who resemble the interviewer.
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Daman Health InsuranceUAEDaman, the National Health Insurance Company, is an Abu Dhabi health insurer that administers Thiqa, the government-funded programme for UAE nationals, and offers plans such as the Abu Dhabi Basic Plan and group cover for employers. Abu Dhabi employers must insure their non-national staff with an approved insurer.Dearness Allowance (DA)IndiaDearness allowance (DA) is a cost-of-living payment that India's central and state governments add to their employees' salaries, calculated as a percentage of basic pay and revised as consumer prices change. Pensioners receive the matching adjustment as dearness relief (DR).DEIB (Diversity, Equity, Inclusion and Belonging)DEIB stands for diversity, equity, inclusion and belonging. It is an approach to building a workforce from a range of backgrounds, giving everyone fair access to opportunities, making sure their voices count, and creating conditions where people feel accepted as themselves at work.Digital HRDigital HR is the use of digital technology, data and automation to run HR processes and shape the employee experience. It replaces paper forms and manual handoffs with connected systems, self-service and data-led decisions, across hiring, onboarding, pay, performance and learning.Direct SourcingDirect sourcing is a recruitment approach where an employer finds and hires candidates, often contractors and temporary workers, through its own branded talent pool instead of going through staffing agencies. The employer owns the candidate relationships and data, and agencies become a backup channel.
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Employees' Pension Scheme (EPS)IndiaThe Employees' Pension Scheme (EPS) is India's pension scheme for members of the Employees' Provident Fund, run by EPFO under the Employees' Pension Scheme, 1995. Employers put 8.33% of wages, up to the wage ceiling, into it, and members with at least 10 years of service receive a monthly pension.Employer of Record (EOR)An employer of record (EOR) is a third-party company that legally employs workers on another business's behalf, usually in a country where that business has no local entity. The EOR handles contracts, payroll, tax and benefits, while the client directs the person's day-to-day work.Employment Pass (EP)SingaporeAn Employment Pass (EP) is Singapore's main work pass for foreign professionals, managers and executives. The employer applies to the Ministry of Manpower (MOM), and the candidate must earn at least the EP qualifying salary for their age and then pass the COMPASS points framework.
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Flextime (Flexitime)Flextime is a working arrangement that lets employees choose when they start and finish each day, within limits set by the employer, as long as they work their contracted hours. Most schemes include core hours when everyone must be available, with flexible bands on either side.Foreign Worker LevySingaporeThe foreign worker levy is a monthly charge Singapore employers pay to the Ministry of Manpower for each Work Permit and S Pass holder they employ. MOM describes it as a pricing mechanism that regulates the number of foreigners in Singapore, and it works alongside sector quotas.Full and Final Settlement (F&F)Full and final settlement is the last payment an employer makes when an employee leaves, clearing every amount either side owes. It adds unpaid salary, leave encashment, earned bonus, gratuity and reimbursements, subtracts recoveries such as unserved notice or advances, and closes the employment financially.
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Gazetted HolidayIndiaA gazetted holiday in India is a public holiday that the central or a state government formally notifies, so government offices close and staff get the day off with pay. For central government offices, the Ministry of Personnel issues the list each year, and these days are also called closed holidays.Goal SettingGoal setting is the process of agreeing clear objectives that an employee, team or organisation will work towards over a set period, and how progress will be measured. In performance management it links each person's work to business priorities and gives a fair basis for review.Government-Paid Maternity Leave (GPML)SingaporeGovernment-Paid Maternity Leave (GPML) is Singapore's 16 weeks of paid maternity leave for working mothers whose child is a Singapore citizen and who have served their employer for at least three continuous months before the birth. The employer pays the mother, and the Government reimburses part or all of the cost.GrievanceA grievance is a formal complaint an employee raises with their employer about a problem at work, such as unfair treatment, bullying, pay, working conditions or a breach of contract or policy. Employers handle grievances through a written procedure that ends in a decision and a right of appeal.
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Half-Day LeaveHalf-day leave is time off covering half of an employee's scheduled working day, usually the morning or the afternoon, with the other half worked as normal. It is recorded against the employee's leave balance as half a day, so two half days use up one full day of leave.HR Cost OptimisationHR cost optimisation is the practice of reducing what an organisation spends on people processes and the HR function without lowering the quality of hiring, employee service or compliance. It focuses on removing waste, such as duplicated tools and manual work, rather than cutting headcount across the board.HR-to-Employee RatioThe HR-to-employee ratio is the number of HR staff an organisation has for every 100 employees it serves. It is a staffing metric used to judge whether the HR function is sized appropriately for the workforce, and to compare HR capacity over time or between business units.Human Capital Management (HCM)Human capital management (HCM) is the set of practices, and the software that supports them, for recruiting, managing, developing, paying and retaining employees. It treats people as an investment whose value can be measured and grown, and covers the full employee lifecycle from hire to exit.
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Job GradingJob grading is the process of placing every role in an organisation into a hierarchy of grades or levels based on its relative size and value, judged on factors such as scope, complexity and accountability. Each grade is linked to a pay range and expectations, giving a consistent structure for pay and progression.Job RequisitionA job requisition is a formal internal request to hire for a new or vacant position. A hiring manager raises it, finance and HR approve the budget and grade, and only then does recruitment start. It records the role, the reason for hiring, the salary range and who approved it.
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Maternity and Parental LeaveAustraliaIn Australia, maternity leave is covered by two systems: up to 12 months of unpaid parental leave under the Fair Work Act, and the government's Paid Parental Leave scheme, which pays eligible parents up to 26 weeks of Parental Leave Pay for children born or adopted from 1 July 2026.Mergers and Acquisitions (M&A) HRMergers and acquisitions (M&A) HR is the human resources work involved when two companies combine or one buys another. It covers people due diligence before the deal, then integrating contracts, pay, structures, systems and culture afterwards, while keeping key people and communicating clearly with everyone affected.
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Personal Information Protection Law (PIPL)ChinaThe Personal Information Protection Law (PIPL) is China's main law on personal data. In force since 1 November 2021, it sets rules for collecting, using, storing and transferring the personal information of people in China, and can apply to organisations abroad that serve or analyse them.Police Clearance Certificate (Certificate of Clearance)SingaporeA police clearance certificate in Singapore, officially called the Certificate of Clearance (COC), is issued by the Singapore Police Force's Criminal Investigation Department to confirm that a person has no criminal record in Singapore. It is issued only for overseas use, such as a job, migration or study abroad.
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Record of Employment (ROE)CanadaA Record of Employment (ROE) is the form Canadian employers issue when an employee has an interruption of earnings, such as a layoff, resignation, dismissal or leave. Service Canada uses it to decide whether the person qualifies for Employment Insurance (EI) benefits, how much they get and for how long.Registered Training Organisation (RTO)AustraliaA Registered Training Organisation (RTO) is a provider registered to deliver nationally recognised vocational education and training (VET) in Australia and to issue VET qualifications and statements of attainment. Most RTOs are regulated by the Australian Skills Quality Authority (ASQA), and every RTO is listed on training.gov.au.Regrettable AttritionRegrettable attrition is the loss of employees the organisation wanted to keep, usually strong performers, people with critical or scarce skills, or those in hard-to-fill roles. It is tracked separately from total attrition because these departures are the hardest to replace and can signal deeper problems.Restricted Stock Units (RSU)Restricted stock units (RSUs) are a form of equity pay in which an employer promises to give an employee a set number of company shares, or their cash value, once vesting conditions are met. Those conditions are usually staying employed for a set period, sometimes combined with performance targets.RetaliationRetaliation is when an employer punishes an employee or job applicant for doing something the law protects, such as complaining about discrimination or harassment, taking part in an investigation, or reporting a legal breach. It can mean dismissal, demotion or a poor review, or quieter forms of hostility.Robotic Process Automation (RPA) in HRRobotic process automation (RPA) in HR is the use of software bots to carry out repetitive, rule-based HR tasks by repeating the clicks and keystrokes a person would make across systems, such as entering new joiner data, updating payroll inputs, generating letters and reconciling records.
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Shift ManagementShift management is the process of planning, assigning and adjusting employees' work shifts so every period is covered by enough people with the right skills, while controlling labour costs and staying within working-time rules on hours, breaks and rest.Signing BonusA signing bonus is a one-time payment an employer offers to persuade a candidate to accept a job offer. It is usually paid on joining or after a short qualifying period, and often comes with a clawback clause requiring repayment if the person leaves within an agreed time.Single Touch Payroll (STP)AustraliaSingle Touch Payroll (STP) is the Australian Taxation Office's system for employers to report each employee's salary and wages, PAYG withholding and super information to the ATO every time they run payroll, using STP-enabled software. Each report is due on or before payday.SMART GoalsSMART goals are objectives written to be Specific, Measurable, Achievable, Relevant and Time-bound. The checklist turns a vague aim such as 'improve hiring' into a target with a clear measure and a deadline, which makes progress easy to track and review.Statutory ComplianceStatutory compliance in HR means meeting every obligation that employment, tax and social security laws place on an employer, such as paying at least the minimum wage, deducting and paying payroll taxes and contributions, keeping required records, filing returns and following rules on hours, leave and safety.Statutory Maternity LeaveUKStatutory Maternity Leave in the UK is up to 52 weeks of leave for employees having a baby, made up of 26 weeks of Ordinary Maternity Leave and 26 weeks of Additional Maternity Leave. Eligible employees also receive Statutory Maternity Pay (SMP) for up to 39 weeks.SuperannuationAustraliaSuperannuation, or super, is Australia's compulsory retirement savings system. Employers must pay the super guarantee, currently 12% of an eligible employee's earnings, into the employee's super fund, and from 1 July 2026 these contributions must be paid with each payday under Payday Super.
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Talent MappingTalent mapping is the process of identifying and charting people with the skills your organisation needs, inside the business and in the external market, so you can plan succession, spot gaps and hire faster when roles open. It shows who exists, where they sit and how ready they are.Talent MobilityTalent mobility is the movement of employees into new roles, teams, projects or locations within the same organisation. It includes promotions, sideways moves, temporary assignments and international transfers, and lets employers fill gaps from inside while giving people a way to grow without leaving.Talent PipelineA talent pipeline is a group of qualified candidates, internal or external, who are actively engaged and prepared to fill specific roles as they open. It lets an organisation hire faster for critical or recurring positions instead of starting every search from zero.Talent PoolA talent pool is a database of people your organisation could hire in future, such as strong past applicants, sourced prospects, referrals, former employees and interns. Unlike a job's applicant list, it is not tied to one vacancy, so recruiters can search it whenever a role opens.Tripartite Alliance for Dispute Management (TADM)SingaporeThe Tripartite Alliance for Dispute Management (TADM) is Singapore's advisory and mediation service for employment disputes, set up jointly by the Ministry of Manpower, NTUC and the Singapore National Employers Federation. Salary-related claims must be mediated at TADM before the Employment Claims Tribunals can hear them.
