HR & Payroll Glossary Archives

A B C D E F G H L M N O P R S T Y 3

Absenteeism - Absenteeism is the habitual absence of the employee from work either taking leave for a full day or through time theft which includes coming late or leaving early to/from work and even taking long breaks. In simple terms, it is nothing but an intentional and habitual absence of an employee at his or her work.
Attendance Register - Attendance Register is a tool to record the regularity of a student, teacher, employee on a day to day basis. It is used for payroll/salary purpose except for students. It consists of records of payroll heads used to calculate the salary like the present, absent, late comings, holidays, on-job training and other kinds of applicable leaves.
Attrition Rate - Attrition rate means to calculate the proportion of employees leaving from an organization over a specific period of time. It is a tool developed by the HR professional to measure the employee metrics. It is also known as turnover rate or churn rate.
Attrition - Attrition means the reduction in the number of employees of an organization through resignation, retirement or death.

Basic Salary - Basic salary is a fixed amount to be paid to an employee addition of any allowances or subtraction any deductions. Bonuses, overtime, dearness allowance, etc are not a part of basic salary. It is a part of your take-home salary.

Compensation Metrics - Compensation Metrics are the measure that helps you know the ratio of compensation and benefits spends against your revenue or profits. Employee compensation and benefits are one of the biggest operating expenses for businesses. Compensation is the total of cash and non-cash payments made to an employee against their work.
CEA - CEA means Child Education Allowance. Child Education Allowance is the allowance paid by the employer to educate the children of their employees.
CL - CL stands for Casual Leave. Casual leave is the leave granted to an employee for certain unforeseen situations where he/she is required to go on leaves to attend or look after personal matters.
Conveyance Allowance - Conveyance allowance is a fixed allowance granted by an employer to his employees towards the cost of travel from home to work and vice-versa.
Cost Per Hire - Cost Per Hire or CPH means expenses incurred by an employer for recruiting a new staff from advertising to joining an employee against the total number of recruitments. It is the average money spent on hiring an employee.
CTC - CTC or Cost to Company means all the costs associated to employ an individual. CTC = Direct benefits + Indirect benefits + Saving Contributions

Dearness Allowance - DA or dearness allowance is allowance paid to the employee against the price rise in the economy to reduce the impact of inflation. Dearness allowance in India is paid to government employees, public sector employees and pensioners as a cost of living adjustment allowance.

Employee Training Metrics - Employee Training Metrics are the measures to evaluate the effectiveness of your training programs conducted for existing as well as new employees. Training helps to increase employee productivity, creativity. This, in turn, increases the Return on Investment(ROI). Unfortunately, some training programs do not give the desired results. This can lead to a negative effect on business.
EL/PL - EL/PL stands for Earned Leave/Privilege Leave. Earned Leave is the leave that an employee gets annually for planned long leaves for the vacation, travel etc.
Employee Deductions - Employee Deductions are the amounts subtracted from an employee's gross pay to reach net pay.
Employee Earnings - Employee earnings are all the cash and non-cash remunerations given to an employee for services performed for the employer.
Employee Overtime Percentage - Employee Overtime Percentage is the percentage of overtime hours against the regular hours of a company for a particular period. HR professionals can use this metric to define and plan their recruitment needs. It provides insight into employee productivity and employee performance.
Employee Productivity - Employee Productivity – Definition Employee Productivity means the output received in terms of units against the input employed which includes raw material (capital), labor, equipment, etc. In simple terms, it the amount of production received during a specific period against the resources consumed in that specific period. Employee productivity is also known as workforce productivity. It is […]
Employee Retention - Employee Retention is the ability of a company or organization to provide and maintain a working environment which supports encourages its existing staff to remain with the company or organization for longer periods. In simple terms, Employee retention means the ability of the company to hold its employees from leaving the organization.
Employee Retirement Rate - Employee Retirement Rate is the percentage of employees retiring against the total headcount of the company. This rate is a key workforce planning metric. It helps you determine how quickly you need to re-fill the talent pipeline. It also helps you determine the development an organization will require to make for replacing the knowledge and experience.

Full-Time Equivalent (FTE) - FTE stands for the full-time equivalent. FTE is an HR Metric to measure the number of total full-time employees along with the number of part-time employees that can be converted into full-time terms.

Gross Salary - Gross Salary is the salary amount including all benefits and allowances before any kind of deductions. In simple terms, Gross Salary is the total of all the components of your monthly payout before any kind of tax deductions.

HR Cost Per FTE - HR Cost Per FTE is the total cost a company spends on human resources (HR) function per full-time equivalent. This metric helps you to understand cost expenditure to develop and manage human capital.
HR To Employee Ratio - HR to Employee Ratio is the number of HR staff against every 100 full-time employees. It helps you determine the effectiveness of the human resources department of any organization. It is a barometer that helps us know how well the HR people deliver services to the rest of the staff.
HRA - HRA Stands for House Rent Allowance. House Rent Allowance is an amount allocated by an employer to the employee as a portion of their salaries.
Human Capital ROI - Human Capital ROI or HCROI is an HR Metric that evaluates the financial value added by your the workforce against the money spent on them in terms of salaries and other benefits. In layman terms, it is the amount of profit obtained by any organization against every dollar invested in their human capital compensation. The HCROI shows the ratio of income derived against the total employment costs.

Labor Cost Percentage - Labor Cost Percentage is the percentage value of money spent on labor costs against the total revenue of the company during a specific period. It is the amount the company spends on salary and benefits. In simple terms, this metric provides an overview of the amount of investment a company makes in its employees to generate each dollar of revenue.
Loss Of Employee Productivity - Loss Of Employee Productivity – Definition Loss of Employee Productivity in terms of HR is the loss of revenue to an organization due to absenteeism, medical treatment, training, etc of its employees. In simple terms, the loss of work/revenue/production caused due to unavailability of an employee for any reason is called the loss of employee productivity. Loss […]
LTA - LTA stands for Leave Travel Allowance. It is a type of allowance given to an employee by the employer to cover his travel expenses while he/she is on leave from work. It is also known as Leave Travel Concession (LTC). In India, Leave Travel Allowance is exempted from tax under Section 10 (5) of Income […]

Medical Allowance - Medical Allowance is a fixed allowance paid to the employees as a part of their salary to meet his/her regular medical needs.

Net Pay - The net pay or the take-home pay is the amount of salary/wages of an employee that remains after all deductions(taxes, health insurance, benefits, etc.) have been subtracted.

Overtime Costs - Overtime costs means the total amount of compensation a company pays to its employees as overtime during a specific period. It is a very useful HR metric that helps you to startegically manage workforce needs of a company. You can calculate it monthly, quarterly, half yearly or yearly.
Overtime Pay - Overtime means the amount compensated for hours or days worked in excess of the maximum limit mentioned in your contract or set by federal or provincial law.

Productivity Metrics - Productivity Metrics are business management tools to evaluate the performance and efficiency of business processes. In simple terms, these are the metrics that companies use to measure the effectiveness of the utilization of resources to produce a product or a service.
Payroll Expenses - Payroll expenses are expenses paid to employees in form of salary/wage for their services/work and associated expenses such as employee benefits and state and federal payroll taxes.
Payroll - Maintaining financial records of employees like wages, salaries, deductions, bonuses, holidays, leaves, sick leave, etc. are called Payroll.
PF - PF stands for Provident Fund. Provident Fund is a government managed retirement benefits scheme available for all the salaries persons.

Recruitment Metrics - Recruitment metrics are measures that help you to track and analyze the effectiveness of the hiring success of a company and optimize the hiring process as and when required for the best return on investment. In other words, the metrics for measuring the effectiveness and efficiency of the recruiting process are called Recruitment Metrics.
Revenue Per Employee - Revenue Per EmployeeRevenue per employee is an operating performance ratio that is used to measures the average revenue generated by each employee of an organization.

Selection Ratio - In simple terms, the Applicant-to-Hire Ratio is the number of hires against the total number of applications for a particular post. You can calculate Applicant-to-Hire Ratio for an individual post as well as the overall ratio for multiple posts. The applicant-to-hire ratio is a very important HR metric.
Sick Leave - Leave in case of illness of self or other family member is called Sick Leave. Leave for which an employee is paid when he/she is out of work due to illness.

Tax Deductions - Deductions subtracted from your gross earnings after federal, state and income taxes in addition to social and medicare taxes are called after tax deductions.
TA - TA stands for Traveling Allowance. Traveling allowance is the amount paid or allotted to an employee by the employer for traveling to another place for business purpose.
Time To Fill (TTF) - TTF stands for Time To Fill. Time To Fill (TTF) is another HR metric similar to Time To Hire(TTH). The Time to Fill the difference between the date of the opening up of a job position and the date of an employee joining the company.
Time To Hire (TTH) - TTH sands for Time To Hire. Time To Hire is an important HR metric which helps you calculate the time to recruit an employee for an open position. It is the number of days to between a position opening up and recruiting the candidate by signing the job contract or accepting the offer.
TTF - TTF stands for Time to Fill. Time to fill is the time elapsed between engaging a candidate and his acceptance of your offer.

Yield Rate (Selection Rate) - Yield Rate (Selection Rate) is an HR Metric that measures the efficiency of each stage during the staffing process from receiving applications to recruiting the candidate. In simple terms, the HR metric used to measure the percentage of candidates were hired out of the total applications received.

360 Degree Feedback - 360 Degree Feedback or multi-source feedback system practiced by Human Resource Department in which an employee receives feedback from all persons related to his job profile. These people include teammates, peers, subordinates, managers, suppliers of the organization and the customers of the organization.