Ceridian’s glossary provides descriptions of popular HR and Payroll terminology.

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A

Automatic enrolment: Every employer must automatically enrol workers into a workplace pension scheme if they are aged between 22 and State Pension age, earn more than £10,000 a year, and work in the UK. Read more about the automatic enrolment legislation

Analytics: the systematic computational analysis of data or statistics. HR analytics is an area in the field of analytics that refers to applying analytic processes to the human resource department of an organisation in the hope of improving employee performance and therefore getting a better return on investment.

Apprenticeship Levy: In April 2017 the way the government funds apprenticeships in England changes. Some employers will be required to contribute to a new apprenticeship levy, and there will be changes to the funding for apprenticeship training for all employers. The apprenticeship levy requires all employers operating in the UK, with a pay bill over £3 million each year, to make an investment in apprenticeships. You can benefit from this investment by training apprentices.

B

BACS: The central payment system used to process different types of electronic payment. The payment of individual’s salaries are often credited by Bacs when payroll is processed.

Benefits in Kind: These are benefits which employees or company directors receive from their employment which are not included in their salary cheque or wages. They are sometimes called ‘perks’ or ‘fringe benefits’. They include things like company cars, private medical insurance paid for by the employer and cheap or free loans. Find out more about our Specialist Payroll Services.

Big Data: The process of analysing very large data sets to identify patterns and trends, particularly relating to human behaviour and interactions. This practice can help employers to make decisions that are more fact and evidence based. Related blog: Top 5 buzzwords in the world of HR & Payroll.

BYOD: Bring your Own Device is an emerging and more commonly used initiative that employers use to ‘consumerise’ their IT assets, by encouraging company employees to work on the device they choose. This helps IT departments to keep up with rapid technology changes. Furthermore, company employees increasingly want to use their own devices to access data, and so this works for them.

C

CIPD (Chartered Institute of Personnel and Development): The professional body for HR and people development. Visit CIPD’s website.

CIPP (Chartered Institute of Payroll Professionals): Established in 1985 as an official industry body, the CIPP is the only Chartered membership body for payroll professionals in the UK. It leads payroll and pension professionals through education, membership and recognition. Visit CIPP’s website.

Cloud Computing: Cloud computing is internet-based computing that provides shared processing resources (such as servers and applications) and data to computers. Related blog: Top 5 buzzwords in the world of HR & Payroll.

D

Diversity: The collective mix of differences and similarities that occur in any given environment. These elements may include individual and organisational characteristics, values, beliefs, experiences, backgrounds, preferences and behaviours. Related blog: 5 ways to encourage collaboration between Generations X and Y.

Double taxation: When a company or individual is taxed in two countries, the country of residence and the country in which the work is done (where the income arises).

Document Management System: A system used to track, manage and store documents online to reduce paper.

E

Enterprise 2.0 (E2.0): this is a Social Software for Businesses. The 2.0 tag refers to software that uses a modern software language called ‘Web 2.0’ for providing online functions such as Tagging, Ratings, RSS feeds and sharing content. Web 2.0 is used in all the modern media social platforms. Related blog: Top 5 buzzwords in the world of HR & Payroll.

EAP (Employee Assistance Programme): A workplace programme that supports employees to identify and resolve personal issues that may affect productivity and attendance at work. Find out more about LifeWorks.

Eligible jobholders: Used in relation to automatic enrolment this term groups employees who are earning above the earnings threshold and are between 22 and state pension age and must be automatically enrolled into a pension scheme as a result.

Employee Benefits: Various types of non-wage compensation provided to employees in addition to their salary.

Employee engagement: Employee engagement is a key measurement of the relationship between an employer and its employees. An “engaged employee” is engaged with and enthusiastic about their work and will therefore act in a way that improves the organisatoin’s reputation and interests. Related blog: Top tips for improving employees’ productivity.

Employee retention: Practices and policies designed to engage employees so that they want to stay with the organisation, thus reducing turnover. Related blog: 5 ways to show appreciation for your employees.

Employee self service: A system that allows employees to handle many transactional tasks normally processed by HR departments. Such tasks include updating personal information, booking annual leave or arranging shift swaps with a colleague. Employees can typically access the information through the company’s intranet, a mobile app, or other Web-based applications.

Enterprise Resource Planning (ERP): a software solution, typically a suite of integrated applications, that an organisation can use to collect, store, manage and interpret data from many business activities, such as HR, procurement and finance.

Expatriate: An expatriate (often shortened to ‘expat’) is a person temporarily or permanently residing, as an immigrant, in a country other than that of their citizenship. Find out more about our Specialist Payroll Services for foreign or overseas employees.

Expense Management: An expense management system that helps a business to process, pay, and audit employee-initiated expenses. Such costs may include expenses incurred for travel.

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F

Fringe benefits: These are benefits which employees or company directors receive from their employment which are not included in their salary cheque or wages. They are sometimes called ‘Benefits In Kind’ or ‘Perks’. They include things like company cars, private medical insurance paid for by the employer and cheap or free loans. Find out more about our Specialist Payroll Services.

Full Time Equivalent (FTE): A value given to show the number of full-time employees that could have been employed if the total number of hours worked by part-time employees had been worked by full-time employees instead.

G

Gamification: The application of typical game playing elements (e.g. point scoring, competition with others, rules of play) to other areas of activity such as encouraging employees to engage with a new product or service. Related blog: Top 5 buzzwords in the world of HR & Payroll.

Gen X: The term used to describe individuals born between 1965 and 1984. Related blog: 5 ways to encourage collaboration between Generations X and Y.

Gen Y: The term used to describe individuals born between 1985 and the mid-90s. Related blog: 5 ways to encourage collaboration between Generations X and Y.

Gen Z: The term used to describe individuals born between the mid-90s up to present day.

Gender Pay Gap: Businesses with more than 250 employees must reveal their pay gap and publish their gender pay gap on their websites. Pay gap is to be calculated from April 2017 onwards, 12 months ahead of when it must be shared.

Global payroll: The collective combination of delivering payroll across multiple countries. Sometimes referred to as International Payroll. View Ceridian’s Global Solutions.

H

Holiday Pay: the remuneration received to cover periods of vacation.

HR Consultancy: HR consultants can find quality improvements to your policies and procedures; reducing your exposure to risk and making a positive impact to your organisation. View Ceridian’s HR Consultancy Services.

HMRC (HM Revenue & Customs): The UK’s tax authority, which replaced the Inland Revenue and Customs and Excise in 2005. In relation to payroll they are responsible for Income Tax, National Insurance, recovery of Student Loan repayments and enforcement of the National Minimum Wage. Visit HMRC’s website.

HRBP (HR Business Partner): HR professionals who work closely with an organisation’s senior leaders and/or line managers to supports the overall objectives of the business. A concept created by David Ulrich. Read more about the HR Business Partner model.

HRIS (Human Resource Information System): Software that assists in the management of Human Resources data like employee details, payroll and time and attendance.

HRO (Human Resource Outsourcing): Transferring responsibility and management of HR functions to an external third-party provider. Businesses could outsource their entire HR department, or selected tasks that may be more administrative.

Human Capital : The collective skills, knowledge and competencies of an organisation’s people that enables them to perform and contribute to growth and success.

Human Capital Management: The term “human capital management” (or HCM) represents the entire range of practices and processes for managing people in an organisation. View Ceridian’s HCM Software.

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I

Implementation: The execution of a methodology or approach to ensure a product or service is delivered appropriately.

In-patriate: An employee of a global company who is from a foreign country but transferred to the corporation’s home country. Find out more about our Specialist Payroll Services for foreign or overseas employees.

International payroll: The collective combination of delivering payroll across multiple countries. Sometimes referred to as Global Payroll. View Ceridian’s Global Solutions.

J

Jobseeker’s Allowance (JSA): is a form of unemployment benefit paid by the Government of the United Kingdom to people who are unemployed and actively seeking work. It is part of the social security benefits system and is intended to cover living expenses while the claimant is out of work.

K

KPI: Key Performance Indicators (KPIs) are measures that demonstrate how effectively a company is achieving key business objectives.

L

LifeWorks: LifeWorks unifies employee engagement with unrivalled EAP & wellness programmes, Perks, Social Communication & Recognition. It is a workplace programme that supports employees to identify and resolve personal issues that may affect productivity and attendance at work. Find out more about LifeWorks.

M

Managed Payroll: A managed payroll solution allows a business to outsource their payroll function to a third party company, instead of carrying it out in-house. A fully managed payroll solution covers every aspect of setting up and administering payroll. View Ceridian’s Managed Payroll Solutions.

Mediation: intervention in a dispute in order to resolve it efficiently and quickly. Related blog: Managing conflict in the workplace.

Millennials: a person reaching young adulthood around the year 2000. Related blog: 5 ways to encourage collaboration between Generations X and Y.

N

National Living Wage: forms part of the National Minimum Wage regulations and is the minimum which should be paid to employees over the age of 25 at the rate of £7.20 per hour. This rate is set by government and should not be confused with the Living Wage (and London Living Wage) which are non-statutory figures estimated by the Living Wage Foundation, a voluntary organisation – employers are not bound by these rates. Related blog: The Living Wage: Engagement, Efficiency and Empowerment.

National Minimum Wage (NMW): The minimum pay per hour almost all workers are entitled to by law in the UK. The rates are usually reviewed every October.

Net to Gross: For a wage earner, gross income is the amount of salary or wages paid to the individual by an employer, before any deductions are taken. For a wage earner, net income is the residual amount of earnings after all deductions have been taken from gross pay, such as payroll taxes and retirement plan contributions. Find out more about our Specialist Payroll Services.

NI (National Insurance): A system used in the UK to gather contributions paid by employees and employers towards the cost of certain state benefits, like the state pension.

NICs (National Insurance Contributions): You pay NICs to build up your entitlement to certain state benefits, including the state pension. The contributions you pay depend on how much you earn and whether you’re employed or self-employed. If you’re employed you stop NICs as soon as you reach state pension age.

NINO (National Insurance number): Every National Insurance contributor is allocated a NINO as a unique identifier. It consists of two letters then six numerals then one letter. For example DE654321K.

Non-eligible jobholder: Used in relation to automatic enrolment this term groups employees who are not required to be auto enrolled because they earn less than the earnings trigger for auto-enrolment (£10,000 a year for the 2016/17 tax year), or earn more than the earnings trigger but are under 22 or over state pension age.

NPS: The Net Promoter Score (NPS) is an index ranging from -100 to 100 that measures the willingness of customers to recommend a company’s products or services to others. View Ceridian’s NPS.

O

On-boarding: also known as organisational socialisation, refers to the mechanism through which new employees acquire the necessary knowledge, skills, and behaviors to become effective organisational members.

Online Payslips: an online note given to an employee when they have been paid, detailing the amount of pay given, and the tax and insurance deducted. Online payslips can usually be accessed via a PC or smartphone via a secure HR system.

Organisation Chart: the most common visual depiction of how an organisation is structured. It outlines the roles, responsibilities and relationships between individuals within an organisation.

Offshoring: Basing some of an organisation’s processes or services in another country.

Outsourcing: a practice used by different companies to reduce costs by transferring portions of work to outside suppliers rather than completing it internally. View Ceridian’s range of Outsourcing Solutions.

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P

P11D: a form that gives HMRC information about certain benefits you’ve received from your employer, apart from your salary. P11Ds must be filed every year with HMRC by 6th July following the end of the tax year. They always contain information for a tax year at a time. Find out more about our Specialist Payroll Services.

P45: a certificate given to an employee in the UK and the Republic of Ireland at the end of a period of employment, providing details of their tax code, gross pay, and the tax paid for that year, to be passed to a subsequent employer or benefit agency.

P60: A form P60 is the summary of your pay and the tax that’s been deducted from it in the tax year. By law, your employer should provide you with a P60 at the end of every tax year. If you receive your payslips online, you’ll often be able to view your P60 in the same place.

Paid Parental Leave: Paid parental or family leave provides paid time off work to care for or make arrangements for the welfare of a child or dependent family member. Related blog: Maternity Rights and Childcare; as clear as mud!

Pay: give someone money that is due for work done, goods received, or a debt incurred.

Payroll Calendar: Use our interactive payroll calendar to find all the important dates you need to remember. View Payroll Calendar.

Payslips: a note given to an employee when they have been paid, detailing the amount of pay given, and the tax and insurance deducted.

PAYE (Pay As You Earn): The system that HMRC uses to collect Income Tax and National Insurance contributions from employees. The tax and NICs is deducted throughout the tax year and then paid to HMRC, based on the employees’ earnings levels.

PAYE in Real Time: The term used when employers send HMRC data about tax, NICs and other deductions using payroll software when or before payments are made, instead of waiting until after the end of the tax year.

Payroll giving: A way for individuals to make regular payments to charities directly from salary. Payments made through payroll giving are deducted before tax is deducted; meaning employees are given tax relief on their donation immediately.

Payroll outsourcing: Transferring responsibilities of payroll to an external third-party provider rather than completing it internally within your company.

Performance Management: an on-going process of communication between a supervisor and an employee that occurs throughout the year, in support of accomplishing the strategic objectives of the individual and the organisation.

Pensions: a regular payment made to people of or above the official retirement age and to some widows and disabled people.

Perks: These are benefits which employees or company directors receive from their employment which are not included in their salary cheque or wages. They are sometimes called ‘Benefits In Kind’ or ‘fringe benefits’. They include things like company cars, private medical insurance paid for by the employer and cheap or free loans. Find out more about our Specialist Payroll Services.

Presenteeism: Attending work despite being unwell. Sometimes referred to as ‘sickness presence’.

Predictive Analytics: is the branch of the advanced analytics which is used to make predictions about unknown future events. Predictive analytics uses techniques including data mining, statistics, modelling, machine learning, and artificial intelligence to analyse current data to make predictions about future.

Q

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R

RTI (Real Time Information): Under this system employers need to provide HM Revenue & Customs with details of payments made to employees, together with the tax and national insurance contributions deducted when or before the payments are made to the employee. View Ceridian’s PAYE in Real Time Resources.

Recruitment: Searching for and obtaining a pool of potential candidates with the desired knowledge, skills and experience to allow an organisation to select the most appropriate people to fill job vacancies against defined position descriptions and specifications.

Right to Work: Rules that describe the checks and tasks an employer must carry out to check if someone is eligible to legally work in the UK and ascertain what documents should be checked.

Rostering & Scheduling: A schedule, often called a rota or roster, is a list of employees, and associated information e.g. location, working times, responsibilities for a given time period e.g. week, month or sports season.

S

Salary sacrifice: A contractual agreement between an employee and their employer to reduce contractual pay in return for the employer providing an alternative benefit in kind which enjoys certain tax or National Insurance reliefs. Read more about the benefits of salary sacrifice

Self-service: Technology that gives employees the power to manage and access their own HR and payroll information; update personal information, view payslips, sign up for training courses, submit requests for annual leave.

SMP (Statutory Maternity Pay): When you take time off to have a baby you might be eligible for SMP. It is paid for up to 39 weeks for eligible employees, with payments made in the same way as your salary. You get 90% of your average weekly earnings (before tax) for the first 6 weeks, £138.18 or 90% of your average weekly earnings (whichever is lower) for the next 33 weeks. Related blog: Maternity Rights and Childcare; as clear as mud!

Shares & Share Schemes: Share-option schemes are typically used as an incentive for employees. A share option is the right to buy a certain number of shares at a fixed price, some time in the future, within a company.

Software as a service (SaaS): a way of delivering applications over the Internet as a service. Instead of installing and maintaining software, you simply access it via the Internet, freeing yourself from complex software and hardware management. View Ceridian’s range of Software

Statutory Sickness Pay (SSP): Your employees may be eligible for Statutory Sick Pay (SSP), which is £88.45 a week for up to 28 weeks. You can offer more if you have a company sickness policy (you can’t offer less). Company schemes are also called ‘contractual’ or ‘occupational’ sick pay and must be included in an employment contract.

Succession Planning: a process for identifying and developing internal people with the potential to fill key business leadership positions in the company. Succession planning increases the availability of experienced and capable employees that are prepared to assume these roles as they become available.

Scheduling & Rostering: A schedule, often called a rota or roster, is a list of employees, and associated information e.g. location, working times, responsibilities for a given time period e.g. week, month or sports season.

System of Record (SoR): or Source System of Record (SSoR) is Data Management term for an information storage system, commonly implemented on a computer system, that is the authoritative data source for a given data element or piece of information.

T

Talent Management: a set of integrated organisational HR processes designed to attract, develop, motivate, and retain employees. The goal of talent management is to create a high-performance, sustainable organisation that meets its strategic and operational goals and objectives.

Tax year End: The period of time which is covered by a particular tax return. Many firms use the calendar year as their tax year, however this is not always required. When a firm begins or ends operations, it often needs to file a tax return for a shorter time period than a full 12 months. View Ceridian’s tax year end resources.

The PayBack Foundation: Ceridian wanted to find a way to ‘pay back’ into the local community, and in 1997, we created our own registered charity to help disadvantaged children. Find out more about PayBack.

Time and Attendance: A system that allows for the automation of processes and tasks relating to employee time tracking, streamline timesheet maintenance, and simplify gross pay calculation. Find out more about Ceridian’s Time and Attendance solution.

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U

Unpaid Parental Leave: A period of up to 4 weeks unpaid leave per year which an individual with parental responsibility can take to care for the child up to its 18th birthday. The overall maximum amount allowable is 18 weeks.

V

Value Added Tax (VAT): a type of consumption tax that is placed on a product or service whenever value is added at a stage of production. VAT is most often used in the European Union.

W

Wellness Programme : A comprehensive health programme designed to maintain a high level of well-being through stress management and illness prevention. Find out more about our wellness programme, LifeWorks.

Wirearchy: A wirearchy provides a different view of an organisation and can be used to show how people and information interact; it looks at people’s influence and authority based on trust and knowledge sharing, rather than an individual’s position within the traditional hierarchy. Related blog: Top 5 buzzwords in the world of HR & Payroll.

Workforce management (WFM): Assigning the right employees with the right skills to the right job at the right time.

Workforce Planning: a continual process to align the needs and priorities of an organisation with those of its workforce to ensure it can meet its legislative, regulatory, service and organisational objectives.

Work-life balance: Splitting time and energy between work and other important parts of your life.

X

XOXO Customer Success Programme: The Ceridian XOXO Customer Success Programme recognises Human Capital Management professionals who strive to succeed. Register today to build a strong network of industry contacts and to get started on your journey to success and rewards with Ceridian. Find out more about our Customer Success Programme.

Y

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Z

Zero hours contract: A contract that allows employers to hire staff with no guarantee of work. Employees only work as and when they are needed by employers and are only paid for the hours they work.

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