Compensation management in HRM involves designing and managing employee pay structures, bonuses, and benefits. It ensures fair, competitive, and performance-based remuneration. Effective compensation management helps attract, motivate, and retain top talent.
Casual leave allows employees to take time off for urgent or personal reasons without prior long-term planning. It is usually limited to a fixed number of days per year. Organizations define casual leave policies based on company rules and labor law requirements.
Cascade in business means distributing objectives, decisions, or communication from senior leaders to teams across the organization. It ensures alignment between company strategy and daily operations. Effective cascading improves transparency, accountability, and performance consistency.
The buddy system assigns a current employee to help a new hire adjust to the workplace. The buddy provides informal guidance, answers questions, and supports integration into the team. This approach improves onboarding experience and accelerates productivity.
Availability analysis evaluates whether an organization’s workforce reflects the available talent in the labor market. It compares internal employee demographics with external labor data. Companies use this analysis to support diversity, equity, and compliance initiatives.
An appointment letter is an official document provided to a selected candidate after accepting a job offer. It includes details such as job title, salary, joining date, benefits, and employment terms. This letter serves as a formal confirmation of employment.
Application completion rate is a recruitment metric that tracks how many applicants complete the entire job application process. A low rate may indicate lengthy forms, technical issues, or poor user experience. Companies monitor this metric to improve candidate experience and increase qualified submissions.
Adverse impact occurs when a neutral hiring or workplace policy disproportionately affects individuals from protected groups. Unlike intentional discrimination, it may happen without deliberate bias. Employers must review policies regularly to ensure fairness and equal opportunity compliance.
An absenteeism policy defines how an organization manages employee absences from work. It sets clear rules for reporting leave, acceptable reasons for absence, and disciplinary actions for excessive absenteeism. A well-structured policy promotes accountability, productivity, and legal compliance.
Wrongful termination refers to the illegal firing of an employee. It may involve discrimination, retaliation, breach of contract, or violation of labor laws. Employees who face wrongful termination can seek legal remedies or compensation.
Workforce analysis involves examining employee data to assess current capabilities and future talent requirements. It helps organizations identify skill gaps, optimize staffing levels, and plan succession strategies. This analysis supports data-driven decision-making and long-term workforce planning.
Strategic Human Resource Management focuses on linking HR strategies with an organization’s overall objectives. It involves workforce planning, talent development, and performance management aligned with business goals. SHRM helps companies build a competitive advantage through effective people management.
Contract labor includes individuals hired on a temporary or project-based agreement rather than as full-time employees. They work under defined terms, duration, and payment conditions. Companies use contract labor to manage short-term needs, reduce costs, and increase workforce flexibility.
An agency recruiter is a recruiter employed by a staffing or recruitment agency. They identify, screen, and recommend candidates for job openings at client organizations. Agency recruiters help companies fill roles quickly and often specialize in specific industries or job types.
Exempt status classifies employees who do not receive overtime pay, even if they work beyond standard hours. This classification typically applies to executive, administrative, or professional roles that meet specific legal criteria. Employers must follow labor laws carefully when assigning exempt status.
A union is a formal association of workers formed to protect and promote their collective interests. It negotiates with employers on matters such as pay, benefits, job security, and workplace policies. Unions help ensure fair treatment and improved working conditions for employees.
Unconscious bias is the hidden attitudes or assumptions people form without realizing it. These biases can affect decisions related to recruitment, performance reviews, and team dynamics. Organizations address unconscious bias through awareness training and inclusive workplace practices.
Time to productivity refers to the period required for a new hire to become fully effective in their role. It depends on onboarding quality, training, and role complexity. Organizations track this metric to improve onboarding processes and accelerate performance outcomes.
An aptitude test in Human Resource Management (HRM) evaluates a candidate’s natural abilities such as logical reasoning, numerical skills, and problem-solving. It helps employers predict job performance and suitability for a role. These tests support objective and data-driven hiring decisions.
Time to fill refers to the total time it takes to hire a candidate after a job requisition is approved. It tracks the entire hiring process until the selected candidate accepts the offer. Companies use this metric to evaluate recruitment efficiency and workforce planning.