Glossary

A plain-English glossary of recruitment, HR, payroll and Employer of Record terms. Browse by letter to find clear definitions of the language used in global hiring and remote team management.

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Agent of Record (AOR)

A person or company officially allowed to manage a business's insurance or employee benefits on its behalf.

Account management

Building and maintaining strong relationships with existing clients after a sale, keeping them happy and seeing ongoing value.

Absenteeism

When an employee regularly misses work without a valid reason, affecting productivity, team morale and overall business costs.

Accrued payroll

Wages, bonuses and payroll taxes a business owes for work already completed but not yet paid to employees.

Burnout prevention

Steps taken to reduce stress and exhaustion before they turn into full workplace burnout, through healthier workloads and support.

Background check

An employer's way of verifying a candidate's identity, employment history, qualifications and right to work before hiring.

Back-office support

The behind-the-scenes tasks that keep a company running, including payroll, admin, HR, data entry, finance and IT support.

Base salary

The fixed pay an employee earns before bonuses, overtime, commission or benefits are added, forming their core package.

Bonus structure

A system businesses use to reward employees with extra pay linked to performance, profits, targets or milestones.

Contract hire

Hiring someone for a set period, project or piece of work rather than offering a permanent role.

Cost per hire

A recruitment metric measuring the total cost of filling a role, including ads, recruiter fees and onboarding.

Career development

The support a business gives employees to grow in their role, through training, mentoring or new responsibilities.

Competency based interview

A structured interview where candidates give real examples of how they've handled workplace situations, testing key skills.

Capacity planning

Making sure your business has the right people, time and resources to handle future work without chaos.

Candidate management

Keeping job applicants interested, informed and moving through your hiring process, from first CV to final offer.

Direct hire

When a company hires someone as a permanent employee from day one, rather than through an agency or contract.

Diversity hire

Someone recruited through a fair, inclusive hiring process that encourages applicants from different backgrounds, without lowering standards.

DPA (Data Processing Agreement)

A legal contract between a data controller and processor, explaining how personal data must be handled under UK GDPR.

Data protection policy

A formal document setting out how an organisation collects, stores, shares and protects personal data under UK GDPR.

Data privacy

How personal information is collected, stored, shared and used, with businesses required to handle it lawfully and fairly.

Employee benefits

The extras employees receive on top of salary, such as pensions, paid holiday, sick pay or private healthcare.

Employee Assistance Program (EAP)

A confidential workplace support service offering counselling, mental health and financial guidance to help employees with personal issues.

Employee

Someone hired by a business to carry out work for pay, with the employer controlling how and when it's done.

Earned Wage Access (EWA)

Lets employees withdraw part of their earned pay before payday, instead of waiting until the end of the month.

FTE (Full-Time Equivalent)

A way to measure workload against a full-time role, used to standardise staffing, salaries and budgets.

Freelancer

Someone who works for themselves rather than for one employer, usually hired for specific projects or specialist skills.

Flexible working hours

Arrangements where employees work outside a traditional 9-to-5, choosing when they work within agreed limits.

Fixed term contract

An employment agreement that ends on a set date or when a project or temporary need finishes.

Fixed price contract

An agreement where the total project cost is fixed before work begins, so the price won't change later.

Gross pay

The total amount an employee earns before deductions, used as the starting figure to calculate tax and net pay.

Global payroll

Paying employees and contractors across different countries while following each location's local tax and employment laws.

Global mobility services

Support that helps businesses manage employees working abroad, including relocation, visas, tax compliance and payroll coordination.

Gig economy

A way of working built around short-term, flexible jobs instead of permanent employment, common among freelancers and contractors.

Global mobility

How businesses move and manage employees across countries, covering relocation, visas, payroll, tax and compliance.

GDPR compliance

Following the EU's data privacy rules on how businesses collect, use, store and protect personal information, including staff data.

Human Capital Management (HCM)

The strategic way businesses hire, manage, support and develop employees throughout the full employee lifecycle.

Human Resource Management System (HRMS)

Software that helps businesses manage employee data, payroll, holidays, onboarding, attendance and recruitment in one place.

HRIS (Human Resources Information System)

Software that helps businesses manage employee data, payroll, holidays, onboarding and contracts all in one place.

Headhunting

A recruitment method where businesses directly approach skilled professionals for senior or hard-to-fill roles, rather than waiting for applications.

Headcount

The total number of people working for a business at a given time, including full-time, part-time and temporary staff.

IT support

The service that helps businesses manage, maintain and fix technology systems, keeping staff productive and data protected.

IR35

A UK tax rule determining whether contractors should be taxed as employees, stopping disguised employment through personal service companies.

Intellectual property (IP) protection

Safeguarding a business's ideas, creations and confidential information from being copied, stolen or misused, including patents and trademarks.

Identity Governance and Administration (IGA)

A cybersecurity framework that controls who can access systems, apps and data, so employees only get access they need.

Independent contractor

A self-employed person hired to complete specific work, usually managing their own taxes, hours and tools.

4 Day work week (Remote)

A working model where employees work four days instead of five, keeping full pay and the same productivity expectations.

Knowledge transfer

Sharing skills, information and experience from one person or team to another, so knowledge doesn't disappear when people leave.

Knowledge Process Outsourcing (KPO)

Outsourcing specialised, knowledge-based work like market research, financial analysis or legal support to external experts or remote teams.

Key Performance Indicators (KPIs)

Measurable values businesses use to track progress towards specific goals, showing what's working and what needs attention.

Learning management system (LMS)

Software that helps businesses create, deliver and track employee training in one place, supporting onboarding and ongoing learning.

Leadership pipeline

A structured process for identifying, developing and preparing employees to take on future leadership roles within the business.

Labour law

The rules governing the relationship between employers and workers, covering pay, contracts, workplace safety and employee rights.

Labour arbitrage

A strategy where companies reduce costs by hiring skilled employees in lower-wage countries while maintaining the same quality of work.

Language service provider (LSP)

A company that helps businesses communicate across languages through translation, localisation, interpretation and multilingual content.

Mobile device management (MDM)

Software that helps businesses secure, monitor and manage company and personal mobile devices from one central system.

Mobile employee

A worker who performs their job from different locations rather than a fixed workplace, staying connected through digital tools.

Maternity leave

Time away from work for employees expecting or who've recently had a baby, with up to 52 weeks available in the UK.

Managed service provider (MSP)

A company that manages a business's IT systems on an ongoing basis, covering support, cyber security and cloud management.

Managed payroll

A service where a specialist provider handles some or all payroll responsibilities, from calculating pay to submitting information to HMRC.

Notice period

The amount of time an employee or employer must give before employment ends, allowing for a smooth handover.

Non-compete clause

An employment contract restriction limiting what an employee can do after leaving, such as working for a competitor.

Net pay

The amount an employee receives after payroll deductions like tax, National Insurance and pension contributions are taken from gross pay.

Nearshoring

Hiring employees or outsourcing providers in a nearby country rather than a distant one, often easing time zone collaboration.

National Insurance (UK)

A UK system where employees, employers and some self-employed workers contribute through earnings, helping fund the State Pension and NHS.

Onboarding

Helping a new employee settle into a business and become productive, from before their first day through ongoing support.

OKR framework

A goal-setting method where objectives define what you want to achieve and key results show how success is measured.

Offshoring

Moving business functions or roles to another country to access skilled talent, reduce costs or expand capacity.

Offer letter

A formal document confirming an employer's intention to hire, setting out job title, salary, start date and terms.

Offboarding

Managing an employee's departure from a business, covering knowledge transfer, returning property, removing access and exit interviews.

Payroll outsourcing

Hiring a third-party provider to manage some or all payroll tasks, reducing admin and ensuring employees are paid accurately.

Payroll management

Calculating, processing and distributing employee pay while ensuring tax, pension and other deductions are handled correctly and on time.

Payroll

The process of calculating and paying employees for work completed, covering wages, deductions, pensions, taxes and HMRC reporting.

Paid holiday

Time off work that an employee can take while still receiving their normal pay, forming part of annual leave entitlement.

P45/P60

Two key UK payroll documents: a P45 issued when someone leaves a job, and a P60 summarising annual pay and tax.

Quality of hire

A recruitment metric measuring the value a new employee brings, based on performance, cultural fit and retention.

Remote hiring

Recruiting, assessing and employing people who work outside a traditional office, using online applications and virtual interviews.

Recruitment Process Outsourcing (RPO)

A hiring model where a business hands part or all of its recruitment activities to an external specialist provider.

Recruitment

The process of attracting, sourcing and hiring suitable candidates for a job, from planning through to onboarding.

Real-time payroll

A payroll process that calculates and updates pay, deductions and taxes as work is completed, rather than waiting until period-end.

Real Time Information (RTI)

HMRC's digital payroll reporting system requiring employers to submit PAYE information every time employees are paid, rather than annually.

Remote talent

Skilled professionals who work outside a traditional office, hired by businesses to access wider talent pools beyond their local area.

Skills gap analysis

Identifying the difference between the skills your employees currently have and the skills your business needs to grow.

Salary review

A structured assessment of an employee's pay to check it remains fair, competitive and aligned with their role and performance.

Salary benchmarking

Comparing employee pay against current market data for similar roles, helping businesses build competitive, fair salary bands.

Salary band

A defined pay range that sets the minimum and maximum for a role or job level, supporting fair, consistent pay.

Salaried employee

A worker who receives a fixed amount of pay each month or year, regardless of exact hours worked.

Tax compliance

Meeting your legal tax obligations accurately and on time, covering Corporation Tax, VAT, PAYE and payroll reporting.

Talent mapping

Identifying the skills, experience and potential a business needs now and in future, to build a strong talent pipeline.

Talent management

Attracting, developing, retaining and supporting employees so they can perform at their best, from hiring through succession planning.

Talent acquisition

The strategic process of finding, attracting, hiring and retaining employees who support a business's long-term goals.

Take-home pay

The amount an employee receives after all deductions are taken from gross salary, also known as net pay.

Upward feedback

Employees sharing constructive feedback with managers about leadership, communication or decision-making, giving them a voice and clearer visibility.

Upskilling

Helping employees develop new skills or strengthen existing ones, so they can perform better and adapt to changing demands.

Unlimited PTO

A paid time off policy letting employees take leave when needed, without a fixed annual holiday allowance, if work is covered.

Unified Endpoint Management (UEM)

A system allowing businesses to manage, secure and update all company devices, from laptops to smartphones, in one platform.

Umbrella company

A business that employs contractors on behalf of agencies or clients, handling payroll, tax and National Insurance through PAYE.

Virtual employee

Someone who works remotely instead of from your office, based in the UK or overseas, full-time, part-time or contract.

Virtual assistants

Someone who works remotely helping businesses with admin, scheduling, customer support, bookkeeping or marketing tasks.

Vetting process

The checks employers carry out before hiring, verifying identity, right to work, employment history and qualifications.

Variable compensation

Extra pay employees earn on top of salary for hitting goals, such as bonuses, commission or profit-sharing.

Vendor Management System (VMS)

Software that helps businesses manage the entire vendor lifecycle in one place, from onboarding and contracts to invoicing.

Work from anywhere

A flexible model letting employees work from almost any location, provided they have the right tools and connection.

Wages

The money an employee earns for work done, usually based on hours worked or shifts completed each pay period.

Work permit

Legal permission for a foreign national to work in a country, now usually granted in the UK through a work visa.

Work-life balance

The ability to manage work alongside personal life, without one constantly taking over the other, supporting wellbeing and performance.

Work from home (WFH)

Employees carrying out their jobs from home instead of travelling to a company office, using digital tools to stay connected.

XaaS (Anything as a Service)

XaaS (Anything as a Service) delivers technology over the internet through flexible subscription or usage-based models.

Yield ratio

A recruitment metric measuring how effectively candidates move from one hiring stage to the next, helping spot bottlenecks.

Year to date (YTD)

The period from the start of a calendar or fiscal year to today, used to track revenue, payroll and expenses.

Year-end tax forms

Official documents summarising an employee's pay, tax and benefits for the tax year, such as the P60 and P11D.

Year-end document

A payroll record issued at tax year-end summarising an employee's pay, tax and National Insurance, most commonly a P60.

Zero-hours contract

A simple guide to how zero-hours contracts work, when they’re used, and what employers and workers need to know.

4 Day work week (Remote)

A working model where employees work four days instead of five, keeping full pay and the same productivity expectations.

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