Human Resource Terms Glossary : Meaning, Definition & FAQs

AbscondingIn HR terms, absconding refers to an employee who leaves the organization suddenly without prior notice or approval and fails to report back to work. This unauthorized absence is considered a breach of contract and can lead to disciplinary actions, including termination. Absconding disrupts business operations and is treated seriously by employers.READ MORE

AppraisalAppraisal is the process of evaluating an employee’s performance, skills, and contributions within an organization. It helps employers assess strengths, identify areas for improvement, and make informed decisions about promotions, salary hikes, and training needs. Regular appraisals motivate employees, align their goals with company objectives, and boost overall productivity.READ MORE

Background VerificationBackground verification is the process of validating a candidate’s personal, professional, and educational details before hiring. It ensures that the information provided during the recruitment process is accurate and trustworthy. HR teams typically check employment history, educational qualifications, criminal records, identity, and sometimes credit scores. Background verification helps reduce hiring risks, maintain workplace safety, and protect the company’s reputation by ensuring only qualified and credible individuals are onboarded. Each type serves a specific purpose and helps organizations make informed decisions about employee development, promotions, and rewards.READ MORE

Basic SalaryBasic salary is the fixed amount of money an employee earns before any additions like bonuses, allowances, or deductions such as taxes and provident fund contributions. It forms the core of an employee’s total compensation and is usually determined based on the employee’s role, skills, experience, and company policies. Basic salary is crucial as it directly affects other salary components such as house rent allowance (HRA), provident fund (PF), and gratuity.READ MORE

Compensatory OffCompensatory Off, often called Comp-Off, is paid time off granted to an employee in exchange for working on a holiday or beyond regular working hours. It allows employees to take a day off at a later date as compensation for their extra work. Comp-Off policies vary by company and labor laws but are commonly used to maintain work-life balance and acknowledge additional effort. Employees usually need prior approval to avail compensatory leave, and unused comp-offs may expire after a certain period.READ MORE

Cross-functional teamA cross-functional team is a group of individuals with diverse skills and expertise from different functional areas within an organization who collaborate to achieve a common goal or objective.READ MORE

Employee ClearanceEmployee clearance is the formal process conducted when an employee is leaving an organization, whether due to resignation, termination, or retirement. It involves completing all necessary formalities like returning company property (ID cards, laptops, documents), settling pending dues, and obtaining approvals from various departments such as HR, finance, and IT. Employee clearance ensures a smooth exit, protects company assets, and confirms that all responsibilities have been fulfilled before the employee’s final departure.READ MORE

Employee OrientationEmployee orientation is the initial process that introduces new hires to an organization’s culture, policies, team members, and job responsibilities. It helps employees understand company values, workplace expectations, and their role within the team. A well-structured orientation improves employee engagement, reduces anxiety, and sets the foundation for productivity and long-term retention. Orientation may include presentations, training sessions, and tours of the workplace.READ MORE

Exit InterviewAn exit interview is a formal meeting conducted when an employee leaves an organization. Its purpose is to gather honest feedback about the employee’s experience, reasons for leaving, and suggestions for workplace improvement. Exit interviews help employers identify issues related to management, culture, or processes and improve employee retention. Typically conducted by HR, these interviews provide valuable insights to create a better work environment and reduce turnover.READ MORE

Floating HolidayA floating holiday is a flexible paid day off that employees can use at their discretion, outside of the company’s standard holiday calendar. Unlike fixed public holidays, floating holidays allow employees to choose days that are personally meaningful such as cultural, religious, or special occasions. This policy promotes work-life balance and respects diverse employee needs. Employers usually require prior approval to use floating holidays and may have rules about carrying them over to the next year.READ MORE

GrievanceA grievance is a formal complaint raised by an employee regarding workplace issues such as unfair treatment, harassment, working conditions, or violations of company policies. It reflects dissatisfaction that affects an employee’s morale and productivity. Addressing grievances promptly and effectively is essential for maintaining a healthy work environment and fostering trust between employees and management. Most organizations have a structured grievance redressal process to ensure concerns are heard and resolved fairly.READ MORE

Notice PeriodA notice period is the time frame an employee or employer must give before ending an employment contract. It typically begins when an employee resigns or is terminated and lasts until their final working day. The notice period allows for a smooth transition giving the employer time to find a replacement and the employee time to complete pending tasks or handovers. The duration of the notice period varies based on company policy, employment agreements, and job roles, and may range from a few days to several months.READ MORE