Allowances in salary refer to fixed amounts provided by employers to employees in addition to their basic pay. These are compensation components designed to cover specific expenses or needs related to job roles or personal circumstances.
HR Glossary
What is 360-Degree Feedback?
360-degree feedback, also known as multi-rater feedback or multi-source feedback, is a comprehensive performance evaluation process that involves collecting feedback from multiple sources about an individual’s performance, competencies, and behaviors in the workplace.
What is the Absenteeism Rate?
The absenteeism rate is a metric that measures the percentage of unplanned absences in a workplace over a specific period of time.
What is Employee Turnover Rate?
Employee turnover rate refers to the proportion of employees who leave a company over a certain period of time. It is typically expressed as a percentage and is calculated by dividing the number of employees who have left the organization by the average number of employees in that same time period.
What Is an Appointment Letter?
An appointment letter is an official document issued by an employer to a prospective employee, confirming their selection for a specific job role. It outlines the job title, responsibilities, compensation, benefits, and terms of employment.
What Is Net Promoter Score (NPS)?
A good NPS score is generally considered to be anything above 0, meaning you have more Promoters than Detractors. Scores above 70 are excellent, while anything below 0 is cause for concern.
What is Basic Salary in India?
Basic salary is the principal component of an employee’s salary package in India. It is the foundational amount upon which various allowances, deductions, and benefits are calculated.
What is the Employee Churn Rate?
Employee churn rate, also known as employee attrition rate or employee turnover rate, is a metric that measures the percentage of employees who leave an organization within a specific period, typically a year.
What is Dearness Allowance (DA)?
Dearness Allowance (DA) is a cost-of-living adjustment allowance paid to employees and pensioners in India to help them cope with rising inflation and increasing living expenses.
What Does Employee Recognition Mean?
Employee recognition refers to the acknowledgment and appreciation of an employee’s contributions, achievements, and efforts within an organization.
What is Employee Experience (EX)?
Employee experience encompasses the entirety of an employee’s journey within an organization, from the initial recruitment process to their daily interactions, growth opportunities, and eventual departure.
What is Objectives and Key Results (OKRs)
OKRs (Objectives and Key Results) are a goal-setting framework used by individuals, teams, and organizations to set ambitious goals and measure progress. OKRs help align efforts across an organization by connecting objectives to measurable key results.
What is Payroll Reconciliation
Payroll reconciliation is the process of comparing your payroll expenses to the actual money paid out and deducted, in order to ensure accuracy. This involves verifying that the net pay amounts on payroll registers match what was actually paid to employees.
Remuneration Packages
Have you ever wondered what exactly makes up your total compensation as an employee? Beyond just your in-hand salary amount, your remuneration package consists of various components and perks. But do you fully understand what these components are and the typical...
Pay Structures Explained
A pay structure refers to the system and policies a company uses to determine employee compensation. It includes the various components that make up an employee’s total remuneration package.
Complete Guide to Floating Financial Goals
Floating goals are flexible, adjustable financial goals that adapt to your changing circumstances. Unlike fixed goals, floating goals do not have a definitive end target or date.
Fixed Assets Turnover Ratio
The Fixed Assets Turnover Ratio is a financial metric used to measure a company’s efficiency in generating sales revenue from its investments in fixed assets, such as property, plant, and equipment. It indicates how well a company utilizes its fixed assets to generate sales.
Parental Leave
Parental leave is extended time off from work for new parents to care for and bond with their newborn or newly adopted child.
Understanding Gross Wage in India
Gross wages refer to the total compensation an employee earns from their employer, before any deductions or taxes are taken out.
What is Mass Hiring?
Mass Hiring or Mass Recruitment refers to the recruitment strategy where companies hire a large volume of candidates in a short span of time to rapidly scale up their workforce.
