HR Glossary
Decode the complex language of HR and Payroll. Your go-to dictionary for all things HR.
Absenteeism
A habitual pattern of absence from a duty or obligation without good reason.
Accrual
The accumulation of benefits, such as leave days, over time.
At-will Employment
Employment which can be terminated by the employer or employee at any time with or without reason (Less common in India compared to US).
Attrition Rate
The rate at which employees leave a workforce over a given period.
Background Check
A review of a potential employee’s criminal, commercial, and financial records.
Basic Salary
The fixed amount paid to an employee before any extras are added or taken off. It is fully taxable and usually forms 40-50% of the CTC.
Bell Curve
A performance appraisal method where employees are graded by comparing their performance against a pre-determined distribution.
Benchmarking
Comparing one's business processes and performance metrics to industry bests and best practices from other companies.
Benefits
Non-wage compensation provided to employees in addition to their normal wages or salaries.
Biometric Attendance
A system that uses unique biological traits (fingerprint, face, iris) to identify and record employee attendance.
Blue Collar
Detailed to employees who perform manual labor.
Bonus
A sum of money added to a person's wages as a reward for good performance.
Burnout
A state of emotional, physical, and mental exhaustion caused by excessive and prolonged stress.
Cafeteria Approach
An employee benefit plan that allows staff to choose from a variety of benefits to create a package that best suits their needs.
Challan
An official form or document used to deposit statutory payments like TDS, PF, or ESI to the government bank.
Compensation
The total cash and non-cash payments that you give to an employee in exchange for the work they do.
Compensatory Off (Comp-off)
Leave granted to an employee as compensation for working on a holiday or rest day.
Compliance
Adhering to laws, regulations, guidelines, and specifications relevant to the organization's business processes.
Confidentiality Agreement
A legal contract that outlines confidential material, knowledge, or information that the parties wish to share with one another for certain purposes, but wish to restrict from third party use.
Cost to Company (CTC)
The total expenditure a company spends on an employee, including direct and indirect benefits.
Dearness Allowance (DA)
A cost of living adjustment allowance paid to government employees and pensioners in India.
Deductions
Amounts subtracted from an employee's gross pay, including taxes (TDS), retirement contributions (PF), and insurance premiums (ESI).
Direct Deposit
Electronic transfer of a payment directly from the account of the payer to the recipient's account.
Diversity and Inclusion (D&I)
Programs and policies that encourage representation and participation of diverse groups of people.
Employee Engagement
The nature of the relationship between an organization and its employees.
Employee Handbook
A book given to employees by an employer that contains information about company policies and procedures.
Employee Lifecycle
The various stages an employee goes through during their time at an organization, from recruitment to offboarding.
Employee Self-Service (ESS)
A web-based application that provides employees with access to their personal records and details.
Employee State Insurance (ESI)
A self-financing social security and health insurance scheme for Indian workers.
Employer Branding
The process of promoting a company, or an organization, as the employer of choice to a desired target group.
Ex-Gratia
A payment made voluntarily by an employer, often as a gesture of goodwill or for a specific occasion.
Exit Interview
A survey conducted with an individual who is separating from an organization or relationship.
Form 12BB
A provisional statement where employees declare their investments to claim tax deductions at the beginning of the financial year.
Form 16
A certificate issued by an employer in India to validate that TDS has been deducted and deposited on behalf of the employee.
Form 16A
A TDS certificate for income other than salary.
Full and Final Settlement (FnF)
The process of clearing all dues payable to an employee after they resign or are terminated.
Gamification
The application of game-design elements and game principles in non-game contexts, such as HR training.
Gig Economy
A labor market characterized by the prevalence of short-term contracts or freelance work as opposed to permanent jobs.
Gratuity
A lump sum payment made by an employer to an employee as a token of appreciation for serving the company for 5+ years.
Gross Salary
The total amount of money an employee receives before any taxes or deductions are taken out.
House Rent Allowance (HRA)
A salary component paid by the employer to meet the rental expenses of the employee.
Human Human Capital Management (HCM)
A set of practices related to human resource management, focused on the organizational need to provide specific competencies.
Human Resource Information System (HRIS)
Software that provides a centralized repository of employee master data.
Income Tax
Tax levied by the government directly on income, especially an annual tax on personal income.
Induction
The process of introducing a new employee to the organization and their role.
Job Analysis
A systematic process of collecting all information about a specific job.
Job Description (JD)
A document that describes the general tasks, or other related duties, and responsibilities of a position.
Key Performance Indicator (KPI)
A measurable value that demonstrates how effectively a company is achieving key business objectives.
Labor Laws
The body of laws, administrative rulings, and precedents which address the legal rights of, and restrictions on, working people and their organizations.
Leave Travel Allowance (LTA)
An allowance for travel expenses incurred by an employee and their family when on leave.
Loss of Pay (LOP)
Deduction of salary for unapproved leave or absence beyond the allotted quota.
Maternity Leave
A period of absence from work granted to a mother before and after the birth of her child (26 weeks in India).
Micro-management
A management style whereby a manager closely observes or controls the work of subordinates or employees.
Minimum Wages Act
An Act of Parliament concerning Indian labour law that sets the minimum wages that must be paid to skilled and unskilled labours.
Moonlighting
Having a second job in addition to one's full-time employment, typically without the employer's consent.
Net Salary
The amount of pay remaining for issuance to an employee after deductions have been taken from a gross pay. Also known as Take-home salary.
Notice Period
The time period between the receipt of a letter of dismissal or resignation and the end of the last working day.
Objectives and Key Results (OKR)
A goal-setting framework used by individuals, teams, and organizations to define measurable goals and track their outcomes.
Offboarding
The process that leads to the formal separation between an employee and a company.
Offer Letter
A formal document sent to a candidate offering them a job at a company.
Onboarding
The action or process of integrating a new employee into an organization.
Outsourcing
The business practice of hiring a party outside a company to perform services or create goods that were traditionally performed in-house.
Overtime
Time worked in addition to one's normal working hours.
Payroll
The list of employees of some company that is entitled to receive payments as well as other work benefits and the amounts that each should receive.
Performance Appraisal
The regular review of an employee's job performance and contribution to a company.
Performance Improvement Plan (PIP)
A document that gives an employee with performance deficiencies the opportunity to succeed.
Perquisites (Perks)
Non-wage benefits provided to employees in addition to their normal salaries.
Probation Period
A period of time at the start of employment when an employee may be dismissed with little or no notice if they are found to be unsuitable.
Professional Tax (PT)
A tax levied by the state government on all persons who are earning a living through any medium.
Provident Fund (PF)
A government-managed retirement savings scheme for employees.
Recruitment
The overall process of attracting, shortlisting, selecting and appointing suitable candidates for jobs.
Relieving Letter
A formal letter issued to an employee at the time of leaving an organization, stating that they have been relieved of their duties.
Remote Work
A working style that allows professionals to work outside of a traditional office environment.
Resignation
The act of retiring or giving up a position.
Retention
The ability of an organization to retain its employees.
Return on Investment (ROI)
A performance measure used to evaluate the efficiency or profitability of an investment.
Sabbatical
A period of paid or unpaid leave granted to an employee so that they may study or travel.
Severance Pay
An amount paid to an employee upon dismissal or discharge from employment.
Sexual Harassment (POSH)
Prevention of Sexual Harassment Act, 2013, is a legislative act in India that seeks to protect women from sexual harassment at their place of work.
Shift Allowance
An allowance paid to employees for working in shifts, especially night shifts.
Soft Skills
Personal attributes that enable someone to interact effectively and harmoniously with other people.
Special Allowance
A residual component of the salary structure that is fully taxable.
Succession Planning
A process for identifying and developing new leaders who can replace old leaders when they leave, retire or die.
Suspension
A state where an employee is not allowed to work for a period of time, usually while a disciplinary matter is being investigated.
Talent Acquisition
The process of finding and acquiring skilled human labor for organizational needs.
Tax Deducted at Source (TDS)
A system introduced by Income Tax Department, where the person responsible for making specified payments is liable to deduct a certain percentage of tax.
Timesheet
A method for recording the amount of a worker's time spent on each job.
Town Hall
A company-wide meeting where management shares updates and employees can ask questions.
Turnover
The rate at which employees leave a workforce and are replaced.
Variable Pay
The portion of sales compensation determined by employee performance.
White Collar
Relating to the work done or those who work in an office or other professional environment.
Work-Life Balance
The division of one's time and focus between working and family or leisure activities.
Zero Tolerance Policy
A policy of punishing any infraction of a rule, regardless of accidental mistakes, ignorance, or extenuating circumstances.
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