Direct compensation refers to the monetary payments employees earn for their labor, such as base salary, hourly wages, commissions, and performance bonuses. It is the most visible part of total compensation and directly rewards employees for their contributions to the organization.
Deferred compensation is a portion of an employee’s earnings that is paid at a future date instead of immediately, usually to reduce taxes or serve as a long-term incentive. Common examples include retirement plans, stock options, and performance-based bonuses, often used to retain key employees.
A Certified Professional Employer Organization (CPEO) is a PEO that has met strict IRS standards for financial stability and tax compliance. CPEOs handle payroll, benefits, and HR administration for client businesses, ensuring accurate tax filings and reducing employer liability under federal regulations.
A Cost of Living Adjustment (COLA) is a periodic salary increase made to offset the impact of inflation and rising living expenses. Employers, governments, or pension programs use COLA to ensure that wages or benefits keep pace with changes in the cost of goods, housing, and services.
A correspondent banking network is a system where banks maintain relationships with other banks worldwide to facilitate cross-border payments and transactions. It allows smaller or regional banks to access global financial systems, enabling services like international wire transfers and foreign currency exchanges.
Core HR refers to the essential human resource functions that handle employee information, payroll, benefits, and legal compliance. It focuses on administrative efficiency and recordkeeping, serving as the foundation for more strategic HR activities like performance management and talent development.
A compliance report is a formal document that outlines a company’s adherence to legal, regulatory, and internal policy requirements. It helps demonstrate accountability to authorities, investors, or stakeholders and is often used in audits to verify that operations meet industry standards.
Staffing being a crucial management function, it directly contributes to organizational growth and success. Sitting right at the bumper of deciding on whom to hire, retention, and development, staffing right-fits…
A break policy is a workplace rule that defines when and how employees can take rest or meal breaks during their shift. It ensures compliance with labor regulations, supports employee health, and maintains productivity by setting clear expectations for workday pauses.
A Bank Identification Number (BIN) is the initial series of digits on a credit or debit card that identifies the issuing bank or financial institution. BINs help process transactions securely by matching the card type, bank, and country, reducing fraud and ensuring payment accuracy.
Attrition refers to the gradual loss of employees in an organization over time, usually through resignations, retirements, or other voluntary exits. Unlike layoffs, attrition isn’t employer-driven, and tracking it helps businesses understand workforce stability and plan recruitment or retention strategies.
An Applicant Tracking System (ATS) is software used by HR teams to manage the recruitment process. It helps automate job postings, filter resumes with keywords, track applicants, and streamline communication, making it easier for employers to identify and hire the right candidates.
Application management is the process of monitoring, maintaining, and optimizing software applications throughout their lifecycle. It includes tasks like updates, security patches, performance tracking, and user support, ensuring that business applications run smoothly and meet organizational needs.
Anti-Money Laundering (AML) is a set of regulations and practices aimed at stopping criminals from disguising illegally obtained money as legitimate income. Financial institutions and businesses must follow AML rules by monitoring transactions, reporting suspicious activity, and verifying customer identities (KYC).
An Administrative Services Organization (ASO) is a third-party provider that manages HR tasks like payroll, benefits administration, and compliance. Unlike a PEO, an ASO does not become the employer of record; the client company retains full employment responsibility while outsourcing administrative support.
ACA compliance refers to the requirement for certain U.S. employers to follow the Affordable Care Act’s rules on health insurance coverage. It includes offering affordable health plans to eligible employees and filing reports with the IRS to avoid penalties and stay legally compliant.
1099 vs W2 refers to the distinction between two types of workers in the U.S. A 1099 worker is an independent contractor responsible for their own taxes and benefits, while a W2 worker is a company employee with taxes withheld and access to employer-provided benefits. This classification impacts payroll, compliance, and legal responsibilities for employers.
A 401(k) is a retirement savings plan offered by U.S. employers that allows employees to contribute part of their salary before taxes. Employers may also match contributions, and funds grow tax-deferred until withdrawal, making it a key tool for long-term financial security.
Workplace coaching is a process where a coach or manager provides personalized guidance to employees to enhance their skills, confidence, and performance. It focuses on setting goals, giving feedback, and building strengths, helping employees grow professionally while supporting business success.
A work policy is a formal document that outlines expectations, rules, and procedures employees must follow in the workplace. It covers areas like attendance, conduct, remote work, leave, and safety, ensuring consistency, compliance, and clarity across the organization.