Encyclopedia Human Resource Management by Jonas Lindblom

Encyclopedia Human Resource Management (2289 Terms)

Management Topic

Keyword

Definition

Human Resource Management

Ability to Pay

This term is found in labor negotiations and refers to the ability of an organization to afford a wage or benefit cost increase.

Human Resource Management

Absolute Assignment

This is when a right to a benefit is transferred from one person to another. (An example is the ownership of a life insurance policy or the right to retirement benefits).

Human Resource Management

Absolute ratings

A rating method where the rater assigns a specific value on a fixed scale to the behavior or performance of an individual instead of assigning ratings based on comparisons between other individuals.

Human Resource Management

Accelerated Life Insurance Benefits

This is when benefit payments from life insurance or long-term benefit plans are increased to cover expenses for a chronically ill individual.

Human Resource Management

Accidental Death and This describes common group benefit plan coverage where insurance pays for a covered individual's permanent disfigurement, loss of a body part, or permanent loss of use of a body part or function of the body, or death. Dismemberment

Human Resource Management

Accidental Death and An addition to a Life Insurance Policy, it provides these benefits as a supplement to basic death insurance coverage. Typically, this additional amount is payable only if the insured dies in an accident or loses any two limbs or his/her eyesight in an Dismemberment accident. (Some riders are third party administered). (AD&D) Rider

A to Z

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Accidental Death and An insurance plan that provides benefits in the event of loss of life, limbs, or eyesight as the result of an accident. As costed in Dismemberment ERI's Benefit Assessor software (and as sold), it is priced as U.S. cents ($.01) per $1,000 of coverage on a monthly basis. Insurance (AD&D)

Human Resource Management

Accounting Principles This Board published rules by which United States CPAs conducted their accounting. The Financial Accounting Standards Board (FASB) replaced it in 1974. Board (APB)

Human Resource Management

Accounting Research These were the bulletins published in the U.S. before 1960, which stated the generally accepted accounting principles. Bulletin (ARB)

Human Resource Management

Accrual Basis

In accounting, this is the method where expense items and income are recognized as incurred or earned, even if they have not yet been received or paid. This is also called ACCRUAL METHOD. It is the opposite of CASH BASIS.

Human Resource Management

Accrual of Benefits

In pension (defined benefit) plans, it is the accumulation and counting of pension credits for years of experience, age, and earnings. In profit sharing plans (defined contribution), it is the vesting of funds accumulated in personal accounts.

Human Resource Management

Accrual of Vacation Pay

This is the counting of vacation time due. Usually accumulation is by the number of hours or days worked. For example, after two years of service, an employee would have the right to two weeks of paid vacation.

Human Resource Management

Accrued Liability

The value of a pension plan's promised benefits calculated by an actuary (actuarial valuation), taking into account a set of investment and benefit assumptions to a certain date.

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Accumulated Benefit The value of a Pension Plan's vested and non-vested promised benefits using a formula (or formulae) typically based upon employees' years of service. Obligation (ABO)

Human Resource Management

Accumulated Cost of This basic value reflects the cost of a single payment (premium) at the end of a term necessary to provide benefits to the insured that would have collected during that term. Insurance

Human Resource Management

Accumulated Funding In the United States, this is the amount by which the accumulated promises of a Pension Plan, as compared to the funds available, do not meet certain minimum funding standards. Deficiency

Human Resource Management

Accumulated Value

In profit sharing plans, this is the amount of money available in an individual account, including earnings.

Human Resource Management

Accumulation Option

A life insurance term where dividends are left in a policy so that they can earn tax-free interest. Sometimes called Accumulated Interest Option.

Human Resource Management

Accumulation Period A Deferred Annuity period in which premiums are payable.

Human Resource Management

Acid Test

A ratio used by financial analysts where the available assets (cash, marketable securities, and account receivables) are divided by the current liabilities (Current Assets/Current Liabilities). Also called the Quick Ratio.

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When one organization purchases another, with the surviving organization being the purchaser. (As opposed to a Merger, where both organizations might change forms.) Acquisitions may be of two types - purchase of assets or purchase of stock. The latter includes purchase of all liabilities, including retirement and welfare plans. The former often does not include these liabilities (although union fund retirement plan obligations are not escaped with an asset only purchase).

Human Resource Management

Acquisition

Human Resource Management

Acquisition Expenses These are costs associated with and caused by one organization purchasing another. Also called Acquisition Costs.

Human Resource Management

Across-the-board Increase

General increase amount given to all eligible employees; may be either a flat amount or a percentage of base rate, sometimes referred to as general increase.

Human Resource Management

activation

The employment of a nonconstraint resource for the sake of keeping busy unrelated to whether it is useful in supporting system throughput.

Human Resource Management

Actively at Work Provision

Should an employee's health insurance coverage be scheduled to commence and that employee is absent from work for certain specified reasons, the coverage will not commence until the employee returns to work.

Human Resource Management

Activities of Daily Living (ADL)

Activities of daily living include getting in and out of bed, dressing, bathing, eating, and generally getting around inside the home.

Human Resource Management

Actual Hours

The number of hours worked during a pay period, as compared to the scheduled hours.

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Actuarial Assumptions

These are assumptions made by actuaries regarding mortality, morbidity, interest, expense and other forecasts. In insurance, they are used to set insurance reserves. In retirement plans, they are used (along with salary levels and turnover) to determine the annual contribution deemed necessary to a pension plan.

Human Resource Management

Actuarial Cost Method

One of many mathematical approaches by which an actuary determines the annual amount a Pension or Benefit Plan Sponsor should contribute.

Human Resource Management

Actuarial Department The department, within an insurance company, that determines the reserves needed for liabilities.

Human Resource Management

Actuarial Equivalent

An alternative form of a benefit equal in value. For example, a Lump Sum payout of a benefit rather than smaller monthly payments.

Human Resource Management

Actuarial Valuation

In a pension or a benefit plan trust, this is the total amount needed to meet promised benefits. This set of mathematical procedures typically calculates the value of benefits to be paid, the funds available, the annual contribution required, and the amount of expense that an organization can take on for accounting and tax purposes.

Human Resource Management

Actuarially Sound

This is a description of when a Voluntary Employee Beneficiary Association Plan (VEBA) or pension plan has the amounts of funds necessary to meet liabilities.

Human Resource Management

Actuary

In life insurance, this is a professional who calculates mortality rates, morbidity rates, lapse rates, premium rates, policy reserves and other values. In pension work, a professional who applies these and other principles to calculate retirement plan obligations.

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ADEA (Age Discrimination in Employment Act)

In the United States, the Age Discrimination in Employment Act of 1967 protects employment rights of individuals age 40 and over. 1978 amendments raised the minimum mandatory retirement age to 70 years of age for most employees.

Human Resource Management

Adjustable Life Insurance Policy

A variable life insurance contract where a person can change his or her annual premiums and the amount of coverage provided.

Human Resource Management

Administrative self-funded plans. The ASO Contract or provider provides claim and policy administration, but the purchasing organization Services Only (ASO) retains financial responsibility. ASO providers are also called THIRD-PARTY ADMINISTRATORS.

Human Resource Management

Administrator

An organization designated under the legal terms of the contract, plan, or trust to operate and direct a Benefit Plan. This is almost always a corporation, rather than an individual or the Plan Sponsor.

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Admitted Reinsurer

In the United States, this is a corporation that is licensed to accept reinsurance in a state or territory. Also called an AUTHORIZED REINSURER.

Human Resource Management

Advance Funding

An organization deposits funds in a plan in advance of the time when funds will be distributed.

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Advanced Underwriting Department

This is the insurance industry's misnomer for the main company's home office department that provides technical and marketing assistance to agents in the field.

Common to health welfare plans, where an organization employs an outside organization to provide administrative services for

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Adverse Impact

This is where a not obviously discriminatory practice affects a protected group of employees. This term is used in salary administration, retirement, and benefit discrimination tests, as well as in general human resource practices.

Human Resource Management

Adverse Selection

Occurs when an employee or group of employees purchase or select coverage with a greater than likely loss at the expense of an insurance company (or the organization if it is self-insured). This is also called ANTI-SELECTION.

Human Resource Management

Affiliated Director

A Board of Directors member who is not a current employee, but who may be either a retired employee or one who does business with the organization on which he/she serves as a member.

Human Resource Management

Affinity Provider

An Internet term related to the sharing of links. In some cases, two sites link to each other on a reciprocal basis. The term partner is not used.

Human Resource Management

Affirmative action

Carried out on behalf of women and disadvantaged groups and members of such groups are placed in dominant positions.

Human Resource Management

Age Discrimination

In the United States, an employer is prohibited from treating individuals over age 40 differently because of their age.

Human Resource Management

Age of Majority

The legal term used for when an individual can enter into and be bound by a legal contract.

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Agency

Several definitions: 1) A service or business authorized to act on the behalf of others. (For example, an employment agency that refers employees to organizations for a fee.)(2) A government's administrative section. (3) A legal term describing the relationship between two parties -- a principal and his or her agent, representing the principal in business transactions with a third party.

Human Resource Management

Agency Agreement

A contract that describes an agent's authority.

Human Resource Management

Agency System

A distribution system whereby insurance companies use their own commissioned agents to sell and deliver insurance policies. The agency system is the most common system for distributing individual life insurance products and includes the branch office distribution system and the general agency distribution system. Also called the ordinary agency system. See also branch office distribution system, brokerage distribution system, and general agency distribution system.

Human Resource Management

Agent

An individual who sells insurance policies as either a Direct Writer or Independent Agent. Also services insurance policies for clients.

Human Resource Management

Agent of Record

The agent or broker who is recognized by the insurer as the person to whom commission is to be paid.

Human Resource Management

Agent's Statement

The portion of the insurance application in which the agent reports anything he or she knows or suspects about the proposed insured that is not reported by the applicant or proposed insured.

Human Resource Management

Aggregate Funding Method(s)

A method of accumulation of money for a pension plan, where an actuary determines the present value of all future payments of benefits and deducts from this value any funds that may be on hand with trustee or with the insurance company and distributing the balance as a cost over the future.

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Human Resource Management

Aggregate Mortality Table

A type of mortality table that shows total statistics for the probability of living and dying throughout a person's entire life cycle. It is based on the combined statistics of both the Ultimate Mortality Table and the Select Mortality Table.

Human Resource Management

Aging Survey Data

The practice of increasing market survey data by an assumed percentage, which is representative of wage movement, to bring the data to a consistent point in time. Also known as 'advancing' or 'trending' the data.

Human Resource Management

Aleatory Contract

A contract under which one party provides something of value to another party in exchange for a conditional promise. This promise is that the other party will perform a stated act if a specified, uncertain event occurs. Insurance contracts are aleatory (dependent on chance) because the policy owner pays premiums to the insurer, and in return the insurer promises to pay benefits if the event insured against occurs.

Human Resource Management

Alien Corporation

A company that is incorporated under the laws of another country. Compare to DOMESTIC CORPORATION and FOREIGN CORPORATION.

Human Resource Management

The assignment of a plan participant's benefits to an individual other than the participant. In the United States, ERISA generally prohibits such alienation of benefits, although exceptions to this rule exist and include the use of a participant's vested benefit Alienation of Benefits as collateral for a loan. The ERISA prohibition on alienation of benefits prevents creditors from attaching an individual's pension benefits.

Human Resource Management

All-Causes Deductible

In the context of health insurance, this is a deductible that must only be satisfied once during a given period of time. If the period of time is a calendar year, as it usually is, then this type of deductible is known as a calendar year deductible. Contrast with a PER CAUSE DEDUCTIBLE.

Human Resource Management

Allocated Funding

A method of funding a pension plan whereby a portion of the total plan funds is allocated to each participant. This type of funding is often achieved through the purchase of annuities or insurance contracts for each participant. Contrast with unallocated funding.

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Allowance Supplemental

Payments such as those for hardship, relocation, or the education of dependent children. It is distinguished from differential, which is a payment to offset differences in costs between the home and assignment locations.

Human Resource Management

All-Salaried Work Force

A pay policy that makes exempt/nonexempt status 'invisible' to workers. Under this policy, all employees are paid on a salaried basis and all pay is defined in the same terms, such as a monthly or annual salary.

Human Resource Management

Alternative Minimum Tax (AMT)

This is an IRS mechanism created to ensure that corporations, trusts, high-income individuals, and estates all pay at least some minimum amount of tax, regardless of deductions, exemptions or credits. The AMT is triggered when there are large numbers of personal exemptions on state and local taxes paid, by Incentive Stock Option (ISO) plans, or large numbers of miscellaneous itemized deductions or medical expenses.

Human Resource Management

American Council of An organization that collects and disseminates data on life insurance markets in the United States. Life Insurance (ACLI)

Human Resource Management

American Stock Exchange (AMEX)

An organization overseeing the buying and selling of publicly owned shares of stock listed on the exchange.

Human Resource Management

Americans With Disabilities Act of 1990 (ADA)

This law creates non-discrimination protection for people with disabilities, similar to the Title VII of the Civil Rights Act of 1964 extended to other minorities. Under the law, employers may not refuse to hire a person due to his or her disability.

Human Resource Management

American-Style Option

A stock option contract that can be exercised at any time between the date of purchase and the expiration date. Most exchange-traded options are American-Style options vs. European-style options, which may only be exercised during a specified period of time just prior to expiration.

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Amortization

1) The gradual elimination of a liability, such as a mortgage, in regular payments over a specified period of time. Such payments must be sufficient to cover both principal and interest. 2) Writing off an intangible asset investment over the projected life of the assets.

Human Resource Management

Amortization Basis

The process of paying off an interest-bearing liability through a series of installment payments.

Human Resource Management

analytic workplace design

Design based on established physical and behavioral concepts, including the known working habits of people. Produces a workplace environment well within the range of human capacity and does not generally require modification or improvement.

Human Resource Management

Anniversary Date

The date used in some merit-pay systems at which a review of the employee's salary occurs. It may be the anniversary of hiring, last pay increase, promotion or some other reference point.

Human Resource Management

Anniversary Year

The 12-month period following an employee's date of hire or date of re-employment (after a one-year break in service), and each succeeding 12-month period.

Human Resource Management

Annual Benefits Statements Under The Employee Retirement Income Security Act of 1974 (ERISA)

Employers are required to provide participants in qualified plans specific information about the status of their projected pension income or account balances.

Human Resource Management

Annual Bonus

Usually a lump-sum payment (cash, shares, etc.) made once a year in addition to an employee's normal salary or wage for a fiscal or calendar year. Generally nondiscretionary and not based on predetermined performance criteria or standards.

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Annual Bonus Plans

A plan in which each year, usually at the end of the year, employees become eligible for an additional amount of money or other reward.

Human Resource Management

Annual Budget

A 12-month operating budget ending on the last day of the calendar year (i.e. December 31 of that year).

Human Resource Management

Annual Incentive

Usually a lump-sum payment (cash or stock) made in addition to an employee's normal pay for a fiscal or calendar year, based on performance (individual, business unit and/or company). May also be called an annual bonus.

Human Resource Management

Annual Information Return

In Canada, a report containing financial and other information that pension plans must file annually with the appropriate provincial or federal government.

Human Resource Management

Annual Lease Valuation Automobiles

Enables Employers, in a number of ways, to determine the value of a worker's personal use of a company car.

Human Resource Management

Annual Renewable Term Life Insurance (ARTLI)

Life insurance that allows an individual to continue the coverage at the end of the year for a specified number of years. This coverage is also called YEARLY RENEWABLE TERM INSURANCE (YRT).

Human Resource Management

Annual Report Form 5500

In the United States, a detailed report of membership and financial information pertaining to the operation of a pension plan. This report must be filed annually with the Internal Revenue Service.

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Annual Statement

An accounting report that insurers must file each year with the appropriate regulatory agency. This report contains detailed accounting and statistical data that regulators use to evaluate a life and health insurance company's solvency and its compliance with insurance laws.

Human Resource Management

Annualized Increase Percent (also, Equivalent Annual Percent Increase)

Salary increase that is expressed as an annual rate of increase, calculated by dividing the number of months since the last increase (the dominator) into 12 (the numerator) and multiplying the result by the increase percent.

Human Resource Management

Annually Renewable Term (ART) Insurance

See yearly renewable term (YRT) insurance.

Human Resource Management

Annuities and Annuity An annuity is a contract for the payment of specified or objectively determinable periodic payments over a specified period of time or over the lifetime of the recipient. Contracts

Human Resource Management

Annuity Mortality Table

A calculation of probability of dying at each age. Used by actuaries to calculate premiums and reserves for annuities in which benefits are paid only if a designated person is alive. Annuity mortality tables usually project lower rates of mortality than do mortality tables that are used for life insurance. See also MORTALITY TABLES.

Human Resource Management

Anti-Selection

Occurs when an employee or group of employees purchase or select coverages with a greater than likely loss at the expense of an insurance company (or the organization if it is self-insured). This is also called Adverse Selection.

Human Resource Management

Apparent Authority

When a principal (client who hires an agent) suggests to a third party that the agent may act on the principal's behalf. The third party believes in the authority of the agent, but that authority was not expressly conferred; it is implied.

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Applicant

The person who has applied to a job advertised or someone who has submitted their CV for inclusion on the searchable database.

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Application

A paper or electronic form that must be completed by an employee who desires a certain benefit. Information provided by the individual allows the insurance carrier or employing organization the information necessary to enroll (or not enroll) the individual.

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Appraisal

See Performance planning.

Human Resource Management

Approval Type An agreement issued along with a conditional premium receipt that provides temporary life insurance coverage as of the date Temporary Insurance the insurer approves the proposed insured as a standard risk. See also insurability conditional premium receipt and temporary insurance agreements. Compare to insurability type temporary insurance agreement. Agreement

Human Resource Management

Arbitration

For collectively bargained single employer plans, the bargaining agreement's grievance and arbitration procedure may double as a claims procedure.

Human Resource Management

Area Differential

Several definitions: 1) Allowance paid to compensate expatriate employees for medium-term cultural and hardship factors present in his or her country of assignment as compared to the base country. (This is also known as a hardship allowance.) (2) Allowance paid to domestic employees in some geographic areas, which is based on different average pay levels and or cost of living.

Human Resource Management

Area Wage Surveys

These are standard survey formats used across geographic boundaries so that consistent reporting can illustrate the same jobs and their different pay in various geographic areas.

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assessing

The process of conducting In Process Reviews (IPRs) and After Action Reviews (AARs). IPRs help to determine initial expectations, ascertain strengths and weakness of both employees and the organization, and identify key issues and organizations whose willing support is needed to accomplish the mission. AARs determine how well the goals are being accomplished, usually by identifying areas to sustain and improve.

Human Resource Management

Assessment Center

A method for assessing aptitude and performance; applied to a group of participants by trained assessors using various aptitude diagnostic processes in order to obtain information about applicants' abilities or development potential.

Human Resource Management

Assessment Method

An early method of funding life insurance where members of the plan were charged in advance for the amount of money that the administrators estimated would be needed to pay each year's death claims. Also called the pre-death assessment method.

Human Resource Management

Assessor Series

Geographic, Salary, Benefit, Relocation and Executive Compensation software and databases designed to assist the compensation and benefits analyst and manager with his/her research.

Human Resource Management

Asset

An asset is anything of value that is owned by an organization or an individual. Examples are cash, computer equipment, and investments. Assets can be any percentage of real property or of personal property that can be liquidated in order to pay debts. Assets are shown on the balance sheet of a company's Annual Statement.

Human Resource Management

Asset Investment Performance

The periodic review of the actions of the asset manager(s) who are investing a qualified pension plan's assets. The plan administrators of such plans have a fiduciary responsibility to conduct this review regularly.

Arithmetic Mean

Arithmetic Mean (as defined by the U.S. DOL) is the rate of wages to be determined, to the extent feasible, by adding the wages paid to workers similarly employed in the area of intended employment and dividing the total by the number of such workers. This computation usually produces a Weighted Average.

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Asset Sale

A transaction whereby the purchaser only acquires title to certain identified assets and or liabilities of the seller, with no obligation for any non-identified liabilities or assets. (A buyer may, for example, acquire only one line of product from a seller.)

Human Resource Management

Asset Share Calculation

A method of calculating that imitates the way in which the assets of a particular block of policies should grow, depending on certain assumptions about future interest rates, morbidity, mortality, expenses and so on.

Human Resource Management

Asset-Liability Matching

The process of investing, purchasing, selling and otherwise adjusting an insurance company's asset holdings so that cash is available when it is needed to cover the company's liabilities.

Human Resource Management

Assignee

The party to whom all or certain contractual rights are transferred under an absolute or collateral assignment.

Human Resource Management

Assignment

Several definitions: 1) The transfer of ownership rights in a life insurance policy or other type of contract from one party to another. (2) The document that causes the transfer of ownership rights to go into effect. See also ABSOLUATE ASSIGNMENT and COLLATERAL ASSIGNMENT.

Human Resource Management

Assignment Location The country in which an expatriate lives and works during an assignment.

Human Resource Management

Assignment of Benefits

An authorization directing an insurer to make payment directly to a provider of benefits, such as a physician or dentist, rather than to the insured.

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Assignor

The person or party who transfers certain contractual rights under an absolute or collateral assignment.

Human Resource Management

Association Organization Insurance

Organization insurance extended to the members of a trade, professional, or other association.

Human Resource Management

Assumption Reinsurance

A reinsurance agreement by which one company permanently transfers (cedes) full responsibility for a block of policies to another company. After the cession, the ceding company is no longer a party to the insurance agreement.

Human Resource Management

Attained Age

The current age of the insured. Also refers to the age of the insured at the time the insured's policy was issued, plus the number of years elapsed since the policy was issued.

Human Resource Management

Attained Age Conversion

The changing of a life insurance policy from one form of insurance to another (such as from term life insurance to whole life insurance) at a premium rate that is based on the age the insured person has reached at the time the change takes place.

Human Resource Management

Attendance Bonus

Attendance Bonuses are provided to employees who have maintained perfect attendance for a period of time, typically a full quarter or year. These bonuses are usually provided in the form of a flat cash amount, additional paid time off, or gift awards upon completion of the period of perfect attendance.

Human Resource Management

Attending Physician's A written statement from a physician who has treated, or is currently treating, a proposed insured or an insured for one or more conditions. The statement provides the insurance company with information relevant to underwriting a risk or settling a claim. Statement (APS)

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attributes

Characteristics or qualities or properties. Attributes of the leader fall into three categories: mental, physical, and emotional.

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Attrition

A term used to describe voluntary and involuntary terminations, deaths, and employee retirements that result in a reduction to the employer's physical workforce.

Human Resource Management

authoritarian leadership

A style of leadership in which the leader tells the employees what needs to be done and how to perform it without getting their advice or ideas.

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Authorized Reinsurer

In the United States, this is a corporation that is licensed to accept reinsurance in a state or territory. They are often also called an Admitted Reinsurer.

Human Resource Management

Autocratic leadership

Leader determines policy of the organization, instructs members what to do/make, subjective in approach, aloof and impersonal.

Human Resource Management

Automatic Dividend Option

For a specific life insurance policy, this is the dividend option that applies in the event that the policy owner does not choose an option. See DIVIDEND OPTIONS.

Human Resource Management

Automatic Nonforfeiture Option

For a specific life insurance policy, a specified nonforfeiture benefit that automatically becomes effective when a renewal premium is not paid by the end of the grace period and the policy owner has not elected another nonforfeiture option. See also nonforfeiture options.

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Automatic Premium Loan (APL)

A life insurance nonforfeiture option that allows the insurer to pay overdue premiums on a policy by establishing a loan against the policy's cash value. See also NONFORFEITURE OPTIONS.

Human Resource Management

Automatic Reinsurance Treaty

A reinsurance agreement in which the reinsurer agrees, for a stipulated type of risk, to accept each risk or a portion of each risk submitted by the ceding company, up to a certain limit, provided the ceding company insures up to its usual retention limit. In this agreement, the ceding company assumes full underwriting responsibility for all cases reinsured.

Human Resource Management

Automatic Wage Adjustment

Automatically increasing or decreasing wages according to a specific plan formula.

Human Resource Management

Automatic Wage Progression

Automatically increasing wages after specified periods of service, until the employee reaches the top of his or her salary range. Automatic wage progression often is achieved through an automatic step-rate pay system.

Human Resource Management

Automobile Benefits

An allowance to an employee for the use of his/her own automobile, which may or may not be taxable.

Human Resource Management

Automobile Insurance

Companies that maintain a fleet of cars for the use of employees who require transportation for business purposes may purchase insurance for automobiles and drivers of the automobiles.

Human Resource Management

Average

The average is the result of dividing the sum of two or more quantities by the number of quantities. Example: (a + b + c)/3 = the average. See also mean.

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Average Frequency Normally calculated on a department-wide or company-wide basis. It is determined by summing up the months between (Of Salary Increases) increases granted for the employee groups and dividing by the number of increases and employees.

Human Resource Management

Average Hourly Earnings

Hourly pay determined by dividing hours worked per period into the total wages earned for that period.

Human Resource Management

Average Indexed Monthly Earnings

In the United States, this is the figure on which social security disability, retirement and other benefits are based. The figure is an average of the monthly earnings on which a worker has paid Social Security tax. The figure is indexed, that is, adjusted to compensate for inflation.

Human Resource Management

Average Percent Increase

Calculated by dividing the sum of salary increase amounts for all eligible employees by the eligible payroll. Both the numerator and the denominator include those who were eligible and participated but received no increase.

Human Resource Management

Average StraightHourly pay determined by dividing the hours worked per period into the total straight-time earnings for the period (excluding Time Hourly Earnings overtime).

Human Resource Management

Awards

Awards, prizes and gifts are a traditional way for employers to recognize and reward employees for their contributions to the company. Such contributions may comprise long years of service, a cost-saving suggestion, a good safety record, or outstanding performance.

Human Resource Management

Baby boomers

Those born between 1946 and 1964, when birth rates rose sharply, and now a popular target group for marketers.

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Back-Loaded Policy

A life insurance policy (usually a universal life insurance policy) in which most of the expense charges occur when the policy owner surrenders the policy or makes cash withdrawals from the policy. Such charges are usually highest in the early policy years and are often eliminated at the end of a certain number of years. See also front-loaded policy and universal life insurance.

Human Resource Management

Back-Loading

The practice of providing a higher accrual of pension benefits during a participant's later years of employment. The practice is designed to encourage and reward long service.

Human Resource Management

Backup Withholding

Refers to withholding 20% of payments for federal income taxes unless the payee has a correct Social Security number on file with the employer, or is otherwise not subject to withholding.

Human Resource Management

Bail Out

An acquisition transaction (usually initiated by the seller) in which the seller is in poor financial condition and another company purchases the financially troubled company and improves their financial condition.

Human Resource Management

Balance Sheet

A financial statement of a company or other entity, showing what it owns (assets), what it owes (liabilities), and the owner's investment (shareholders equity) at a point in time such as the end of the fiscal year.

Human Resource Management

Balance Sheet Approach

An accounting term that describes a situation where debits and credits must match. The balance sheet approach is used to set expatriate compensation. There the goal is to protect or equalize an expatriate's purchasing power while on assignment abroad. Its primary objective is to ensure equity among expatriates and their home or base country peers.

Back Pay

The amount of lost earnings accruing between the time a plaintiff terminates employment and a subsequent measuring date. Like Front Pay, it is not subject to the Civil Rights Act of 1991 $300,000 liability cap. Each can be awarded over and above any compensatory or punitive damages.

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Balanced Scorecard

A popular strategic management concept developed in the early 1990's by Drs. Robert Kaplan and David Norton, the balanced scorecard is a management and measurement system which enables organizations to clarify their vision and strategy and translate them into action. The goal of the balanced scorecard is to tie business performance to organizational strategy by measuring results in four areas: financial performance, customer knowledge, internal business processes, and learning and growth.

Human Resource Management

Band Grading

The grouping of life insurance policies according to death benefit amounts for the purpose of calculating loading or expense charges.

Human Resource Management

Bankruptcy

A standard bankruptcy liquidates a business or individual. Then, subject to specific exemptions, assets of the bankrupt are collected and paid to creditors.

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Bar Chart

A graph displaying data in a frequency distribution represented by horizontal or vertical bars.

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Base Country or Home Country

In international compensation, this is the country upon which an expatriate's compensation is based. It is usually the expatriate's home country or the country in which the employee's headquarters is located.

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Base Pay

Base pay is the salary that would be paid for a position on the basis of its level. For expatriate's it is the stated home country salary before any addition of differentials, allowances or incentives for Foreign Service or required contributions.

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Base Payroll

Determined by the sum of annual salaries and or wages (base rates) paid at the opening of business on the first day of the plan year or last day of prior year, e.g., Dec. 31, before any increase.

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Base Rate or Base Wage Rate

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Base Salary or Wage The basic rate of pay (excluding overtime pay).

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Base wage rate (or base rate)

The hourly rate or monthly salary paid for a job performed. Does not include shift differentials, benefits, overtime, incentive premiums, or any pay element other than the base rate.

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Basic Death Benefit

The death benefit according to the terms of the original, basic contract of a life insurance policy. The basic death benefit does not include the benefit for any supplementary riders, such as an accidental death benefit (ADB) rider. For policies whose death benefit remains constant, the basic death benefit is equivalent to the face amount.

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Basic Earnings Per Share

The net earnings available to common shareholders of an organization divided by the weighted average of total shares outstanding. No consideration is given in this calculation for common stock equivalents such as stock options.

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Basic Mortality Table A mortality table without a safety margin. Also called a basic experience table. See also mortality table and safety margin.

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Basic Plan with Major A medical insurance plan that provides for coverage of almost all hospital and surgical charges and some other medical expenses, up to a specified amount without a deductible. Medical

The rate of pay set for a unit of work before anything extra is added. This rate does not include things like shift differentials, benefits, overtime, incentive premiums or any other pay element other than the base rate.

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Basic Services

Commonly covered items on an insurance policy (e.g. Dental procedures specified in a dental insurance plan such as diagnostic, preventive, and routine restorative dental services).

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Basket Clause

Several definitions: 1) From an investment point of view, this is a provision that allows insurance companies to invest a small percentage of their assets generally without regard to statutory restrictions. (2) From an accounting point of view, this is a clause that permits life, and health insurers to hold a specified amount of their assets as nonauthorized assets, which are not restricted in the same way as authorized assets.

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Behavior Based Appraisal

Any performance assessment system that concentrates on the behaviors of those being rated (such as behavioral expectation scales, behaviorally anchored rating scales, or behavioral observation scales).

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Behavioral based interview

An interview technique which focuses on a candidates past experiences, behaviors, knowledge, skills and abilities by asking the candidate to provide specific examples of when they have demonstrated certain behaviors or skills as a means of predicting future behavior and performance.

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Behavioral competency

The behavior of the employee which is the subject of measurement and appraisal in terms of whether or not the behaviors shown by an employee are those identified by job analysis/competency profiling as those contributing to team and/or organizational success.

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Behaviorally An appraisal that requires raters list important dimensions of a particular job and collect information regarding the critical anchored rating scale behaviors that distinguish between successful and unsuccessful performance. These critical behaviors are then categorized and appointed a numerical value which is used as the basis for rating performance. (BARS)

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beliefs

Assumptions and convictions that a person holds to be true regarding people, concepts, or things.

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Below Market Rate Employee Loans

This is a compensation-related loan. It is any loan bearing a below-market interest rate made in connection with performance of services directly or indirectly between an employer and employee.

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Benchmark job

A standard job used to make pay comparisons, either within the organization or to comparable jobs outside the organization, to develop or validate a job-worth hierarchy. Pay data for these jobs are readily available in purchased surveys.

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Benchmark Job Data Market and company data for surveyed jobs.

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benchmark measures

A set of measurements (metrics) that is used to establish goals for performance improvements. These are often derived from other firms that display "Best In Class" performance.

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Benchmarking

A technique using quantitative or qualitative data to make comparisons between different organizations or different sections of the organizations.

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Beneficiary

The person designated to receive the benefits resulting from the death of an employee, such as the proceeds of a life or accidental death insurance policy or benefits from a pension plan. See also Contingent Beneficiary, Irrevocable Beneficiary, Primary Beneficiary, and Revocable Beneficiary.

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Beneficiary Declaration

Specific to Canada, an insurance policy beneficiary designation that is made in a separate written document after the insurance policy has been issued.

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Benefit

For insurance purposes this is the amount of money paid when an insurance claim is approved. Also known as the policy benefit.

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Benefit of Survivorship

A term used to describe the fact that annuity payments will be made as long as the designated recipient is alive at the time the payment is due. This concept is used in the calculation of amounts due under life insurance settlement options.

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Benefit Plans - Health The two types of health care benefit programs are indemnity programs and health maintenance organizations. Care

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Benefit Plans Retirement

A Retirement Plan is an agreement on the part of management to provide a vehicle for the retirement income needs of employees. Such plans may be qualified or non-qualified for tax purposes.

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Benefit Reductions

A cost-containment measure utilized by an organization to reduce its expenses through reduction in benefit coverage (e.g. increase in medical plan deductibles, increase in employee contributions, reduction in annual limits in dental plans).

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Benefit Schedule

Under an organization's insurance plan, this is a table or schedule that specifies the amount of coverage, provided for each class of insured. Insureds are often classified with reference either to earnings or to rank or position. Also called a schedule of benefits.

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Benefit Statements

Each year employees must be given an individual benefit statement that explains accrued benefits to date and vesting status.

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Benefits

Employers provide a package of additions to the base salary to employees. These benefits can include health insurance, dental insurance, life insurance, disability insurance, a severance package, tuition assistance, and more. On average, organizations spend 41 cents for benefits for every dollar of payroll. Thatâ&#x20AC;&#x2DC;s 29 percent of the total employee compensation package.

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Benefits Packages

The total value of all non-cash compensation elements, including but not limited to income protection, health coverage, retirement savings, vacation and income supplements for employees, provided in whole or in part by employer payments.

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Bennett Amendment

An amendment to the Civil Rights Act of 1964 that states that it shall not be unlawful practice to differentiate compensation on the basis of sex if such differentiation is authorized by the Equal Pay Act.

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Bereavement leave

Paid days off following the death of an employeeâ&#x20AC;&#x2DC;s spouse, parent, child grandparent or in-law so that the employee may attend funeral proceedings, etc.

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Best Earnings Plan

A benefit plan that calculates a recipient's retirement benefit based on the period during which the employee earned his or her highest income.

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Beta

A mathematical measure of the volatility of a particular stock, mutual fund, and/or portfolio in comparison with the entire market. Specifically, it measures the stock, fund or portfolio performance during the last 5 years. A beta of 1.0 indicates that an asset closely followed the market; a beta greater than 1.0 indicates a greater volatility than the market - a beta of less than 1.0 indicates that the asset was less volatile than the market.

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BFOQ

Bona Fide Occupational Qualifications â&#x20AC;&#x201C; legally defensible minimum qualifications to perform the job.

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Bilingual Differential

Bilingual Differential is a cash differential that is paid in addition to base salary for language skills that are required in a job. The differential also provides a continual reminder to the employee that he or she is compensated for this ability in addition to performance of the job.

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Bimodal Distribution

A probability distribution with two modes.

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Binding Premium Receipt

A type of initial premium receipt that makes insurance coverage effective immediately, but only until the insurance company either rejects the application or approves it and issues a policy.

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Binomial Option Pricing Model

A mathematical formula that determines a theoretical value for an option on stock subject to trade on an option exchange. May be used by a company that chooses to apply the FAS123 rule to stock granted to employees.

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Birthday Rule

A provision that specifies the manner in which benefits for dependent children are to be coordinated between two insurance plans. According to the birthday rule, benefits for dependent children will be paid by the plan of the parent whose birthday falls earlier in the year.

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Black-Scholes Model options traded on public markets. The Black-Scholes Formula provides a way to determine the worth of a CALL OPTION at

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A mathematical model originally derived by economists Myron Scholes, Robert Merton, and Fischer Black to value stock any given time. To find out how to use this formula, see DLC Course 22: Black-Scholes Valuations.

Blended Rates

Several definitions, two of which are listed: 1) Organization mortality rates that are based, in part, on a group's own experience and in part on manual rates. These Blended Rates are used to determine the appropriate organization insurance premium rates for intermediate-size groups. See also Experience Rating and Manual Rates. (2) A rate offered by a lender, which is somewhere between a previous rate and a new loan rate.

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BLS

U.S. Government's Bureau of Labor Statistics.

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Blue Cross Plan

A health care plan offered by a regionally-operated health care provider, having any of these insurance products: PPO, fee-forservice, HMO, or POS. A provider of such plans belongs to the Blue Cross and Blue Shield Association.

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Blue Shield Plan

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Bonafide Typically refers to a valid job requirement, i.e., a knowledge, skill or an ability level that is required for competent job Occupational performance. Origin of the term BFOQ is found in Title VII of the Civil Rights Act (1964). Qualification (BFOG)

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Bond

A debt instrument issued for a period of more than one year with the intent of raising capital by borrowing. The Federal government, states, cities, corporations, and other types of institutions sell bonds. A bond is typically a promise to repay the principal loan along with interest on a specified date of maturity.

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Bonus

Plans that award cash or other items of value, such as stock (or stock options), based on accomplishments achieved. While incentive plans are 'forward' looking' bonus plans are 'backward looking'.

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Bonus (Pay Plans)

Plans that award cash or other items of value, such as stock or stock options, based on accomplishments achieved. Incentive plans are 'forward' looking; bonus plans are 'backward' looking.

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Bonus Eligible

Refers to groups or classes of employees eligible to participate in a bonus program.

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Bonus Guarantee

A payment in addition to base salary that is made regardless of performance, e.g., an incentive award that is guaranteed, usually to a new hire or to a newly promoted person. It is usually nonrecoverable by the company.

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Bonus Progressivity

An employee rewards plan that increases the incentive as the employee performance exceeds predetermined degrees of performance. See PROGRESSIVITY OF INCENTIVES.

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Book Unit Award Plan

A type of long-term incentive plan, whereby an employee is awarded stock valued at the book value per share. In this kind of plan an increase in the book value of the stock accrues to the benefit of the employee.

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Book Value (BV)

Total shareholders' equity divided by the number of common shares outstanding. Book value is sometimes used in incentive plans in privately owned companies where the fair market value of shares is not readily known.

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Book Value Purchase An incentive program in which employees purchase shares of their organization at book value. They subsequently can sell the shares back to the organization at the then book value. Plans

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Bottom Line

An individual's or company's profit after taking into consideration all expenses, income and taxes.

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brainstorming

A technique for teams that is used to generate ideas on a subject. Each person on the team is asked to think creatively and write down as many ideas as possible. After the writing session, the ideas are discussed by the team.

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Branch Manager

The individual typically in charge of a field office. For insurance companies, this individual uses the Branch Office Distribution System. Also called a general manager.

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Branch Office Distribution System

A common system for selling individual life insurance. Under this system, the soliciting agents who work out of a branch office are under contract to the insurance company, not to the branch manager. The agents receive commissions directly from the insurance company. The branch office manager, supervisors, and clerical personnel in the field office are employees of the insurance company; and these employees are subject to the same types of controls normally exercised by an employer. See also AGENCY SYSTEM and BRANCH MANAGER.

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Branding

The process of identifying and differentiating an organizationâ&#x20AC;&#x2DC;s products, processes or services from another organization by giving it a name, phrase or other mark.

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Breach of Duties

A breach is a violation or infraction, as of a law, a legal obligation, or a promise. When applied to an employee, it is grounds for dismissal.

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Break In Service

The length of time between the date on which an employee leaves an organization and the date on which the employee resumes working for that firm. For pension and employee benefit plan purposes in the United States, a plan participant cannot be deprived of benefits that accumulate before a break in service, unless the break is longer than (1) five years or (2) the amount of time that the participant has been employed when the break commences.

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Break In Service Year An anniversary year during which a plan participant does not complete more than 500 hours of service and earns no pension (Erisa Pension-Plan benefits. If a non-vested employee incurs five or more consecutive break years, that employee may lose all the time towards vesting under the plan. Standards)

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Bridge Loan

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A Canadian program that provides a supplemental pension to a pension plan participant who retires before age 65. The bridging supplement is generally used to integrate private pension plans with public pension plans. If a pension plan participant retires before age 65, the plan sponsor can provide a bridging supplement until the retiree turns 65 and begins to receive Bridging Supplement payments from the public pension plans. The combined benefit payment that the participant receives remains level and is the same as the participant would have received had he or she waited until the age of 65 before beginning to receive benefits. The sponsor is providing an amount in addition to the basic pension payment. Known also as a Bridging Benefit.

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Broadbanding

A pay structure that consolidates a large number of narrower pay grades into fewer broad bands with wider salary ranges.

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Broker

A person or firm who, for a fee or commission, acts as an intermediary between a buyer and seller. Usually a license is required.

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Broker Dealer

Other than a bank, any individual or firm that is in the business of buying and selling securities for itself and others. Called an agent or broker when buying securities and a principal or dealer when selling them. The SEC requires that broker/dealers not only register with the SEC but also with the states in which they conduct business.

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Brokerage Distribution System

A distribution system relying on commissioned agents, called brokers, who sell the products of more than one insurance company.

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Brokerage Manager

A salaried insurance company employee or an independent agent whose responsibility is to appoint brokers on behalf of the company and to encourage brokers to sell the products of a particular insurance company.

This is a loan typically secured by your current home, which is usually listed for sale. The bridge loan is used to finance the purchase of the second home. The homeowner usually has a year within which to sell or rent the first home and to pay off the loan with the proceeds.

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Brokerage Shop

An agency operated by an independent general agent who is under contract to a number of insurance companies. Also known as a Brokerage General Agency.

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Brother-Sister Arrangement

When a third corporation, group, or person owns two or more corporations this arrangement is typically known as 'brother sister.'

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Budget

An itemized plan of an individual or company's income and expenses expected for a future period of time.

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building

An activity focused on sustaining and renewing the organization. It involves actions that indicate commitment to the achievement of group or organizational goals: timely and effective discharge of operational and organizational duties and obligations; working effectively with others; compliance with and active support of organizational goals, rules, and policies.

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Bulletin Boards

Bulletin Boards are one method of posting information that is of general interest to employees. This may include information that employers are required to make available to employees such as equal employment policies, safety requirements, and other government regulations.

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Bumping

The practice of allowing more senior level employees whose positions have been slotted for elimination or downsizing the option of accepting an alternative position within the organization, for which they may be qualified to perform and which is currently occupied by another employee with less seniority.

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Bundled Insurance Product

An insurance product in which the mortality, investment, and expense factors are all used to determine premium rates. Cash values are not separately identified in the policy. Usually whole life insurance is an example of a bundled insurance product. See and contrast with UNBUNDLED INSURANCE PRODUCT.

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Bureau Of Labor Statistics (BLS)

This is the United States Federal Government's major fact-finding agency in the field of labor economics and statistics. Its responsibilities include finding data on wage, national pay, and industry surveys, such as the National Compensation Survey (NCS) and the Occupational Employment Survey (OES).

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Business Continuation Insurance

An insurance type for closely held businesses, it is designed to provide funds to enable the remaining partners in a business, or the remaining stockholders in a closely-held corporation, to purchase the business interest of a deceased or disabled partner or stockholder. Compare with PARTNERSHIP INSURANCE and STOCK REEPURCHASE INSURANCE.

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Business Expenses

Several definitions: 1) This is the cost of operating a business. It is a deductible for federal income tax purposes. 2) Where the employee is concerned, a business expense is that expense for which the employee is reimbursed and which is not included in his/her pay.

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Business Insurance

This type of insurance is intended to serve the insurance coverage needs of a business, as opposed to that of an individual.

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Business Travel Accident Insurance

An insurance plan that covers both employees and the employer should an accident occur while the employee is traveling on company business.

Human Resource Management

Business Travel Accident Plan

An insurance plan that covers both employees and the employer should an accident occur while the employee is traveling on company business.

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Buyer's Guide

In the United States many states require that insurance companies make this publication available to an applicant for life insurance. The Buyer's Guide enables the applicant to make a better-informed choice among policies.

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Buying Power

The inverse of cost of living. COST OF LIVING is the cost of purchasing goods and services, as determined by the demand and supply of goods, services, and property. For example, if the cost of living is 10% higher in an area, the buying power is approximately 10% less in that area.

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Cafeteria Plan

Also known as a flexible benefit plan, offers each employee several choices as to the types and or amounts of organization benefits. An employee is given a set amount, and he or she can choose how it is spent.

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Call Back Pay

A guarantee of pay for a minimum number of hours when employees, who are not scheduled to work and who are not on call, are called back to their work. They receive pay for at least the minimum number of hours established, even if they do not end up working up to those many hours.

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Call In Pay

This is the guaranteed pay for a set minimum amount of time for employees who show up to work at the usual time and for whom there is no work. The employees receive pay for at least the specified minimum number of hours, even if they did not work at all.

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Call Option

A stock option contract that gives you the right to purchase a specified quantity of stock at a specified strike price by a specified expiration date.

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Canada Pension Plan This plan applies to all Canadian provinces (with the exception of Quebec). This plan primarily provides for retirement and longterm disability income benefits to residents. (CPP)

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Canadian Council Of Similar to the National Association of Insurance Commissioners in the United States, this Canadian organization of provincial Insurance Regulators insurance regulators meet regularly to discuss insurance matters. The Council also develops model insurance legislation, which it encourages legislatures to adopt. (CCIR)

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Canadian Life And Health Insurance Association (CLHIA)

Most of the life and health insurance companies in Canada belong to this Association. Their main responsibility is to conducts research on insurance issues and to promote the best interests of the insurance industry. The CLHIA is the main source of information about the life and health insurance industry in Canada.

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Canadian Life And Health Insurance Compensation Corporation (CompCorp)

This is a federally incorporated, nonprofit company established by the Canadian Life and Health Insurance Association (CLHIA) in order to protect consumers against loss of benefits in the event a life or health insurance company becomes insolvent.

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Canadian Method

A Canadian prescribed method for the calculation of modified net premiums and reserves.

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Cancelable Policy

An individual health insurance policy that can be terminated at any time by the insurer. See also CONDITIONALLY RENEWABLE POLICY, GUARANTEED RENEWABLE POLICY, and OPTIONALLY RENEWABLE POLICY.

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Cap

The total incentive opportunity a sales representative can earn in a given period. Sometimes a cap is referred to as the maximum, the lid, or the ceiling.

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capacity

The capability of a worker, system, or organization to produce output per time period. It can be classified as budgeted, dedicated, demonstrated, productive, protective, rated, safety, or theoretical.

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Capital Employed

The value of all the assets employed in the course of business (e.g. equity and preference capital, fixed and current assets, and gross borrowings). Sometimes used as a measure of performance for executive incentive plans. Most commonly used in the calculation of Return on Capital Employed. See also RETURN ON CAPTIAL EMPLOYED.

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Capital Expenditures Monies spent to acquire or upgrade physical assets such as buildings and machinery.

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Capital Gains Taxation

A tax levied on profits realized from the sale of a capital asset, such as stock and real estate.

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Capitation Basis

A health insurance payment method whereby a fixed amount of money is paid per person to cover all services, without regard to the number or nature of services rendered to each person within a set period of time. It is the provider who bears the financial responsibility to coordinate patient care within the fees or capitated rate for all patients. See also FEE SCHEDULE BASIS.

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Captive Agents

Agents who work exclusively for one insurance company and who may not represent another company. See also EXCLUSIVE AGENTS.

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Captive Insurance Company

Usually set up and owned by a parent company for the purpose of insuring the parent company's exposures to loss. This type of insurance company provides insurance coverage at a lower cost than is available by going through the general insurance market. A captive insurance company may be either a non-admitted, nonresident, or foreign insurer. May also provide reinsurance to a self-insure or a domestic company.

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Career Agent

A full-time commissioned salesperson who works out of an insurance company's field office, holds an agent contract with that company, and sends most or all of his or her business to that company. On occasions, a career agent may broker business with other companies.

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Career Average

A method used to calculate payout to a retiree in a defined-benefit pension plan by determining average annual salary. Years where less than 1,000 hours were worked may not always be included in the calculation.

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Career Average (Career Earnings) Benefit Formula

This describes a formula by which retirement benefits are calculated, based on compensation for the entire amount of time in the plan. See also DEFINED BENEFIT FORMULA.

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Career Average Pension

A formula which basing retirement benefits on actual credited compensation of an employee during his or her total period of service or participation.

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Career ladder

A series of defined levels where the nature of work is similar and the levels represent the organizationâ&#x20AC;&#x2DC;s typical requirements for career growth. Parallel ladders and overlapping ladders are often created to allow transition from one field to another (e.g., from engineering to management). Also called career pathing.

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Carpooling

Carpooling is a program whereby employees are encouraged to share rides to work so as to reduce traffic problems, preserve the environment, and save money.

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Carry Over Provision

Found in most medical expense policies, this provision permits you to apply both eligible in-network and out-of-network expenses incurred during the last three months of the calendar year to the next year's deductible or out-of-pocket maximum.

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Case Management

A cost-containment program designed to identify alternate, less costly methods of treatment for seriously ill patients without sacrificing the quality of care a patient receives. Also called large claim management or medical case management. See also CATASTROPHIC CLAIM MANAGEMENT.

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Cash Balance Pension Plan

An established benefit plan resembling a defined contribution plan. The characteristics are usually annual or monthly account additions made at a predetermined rate (e.g., a percentage of pay). These contributions grow at a stated rate. Upon retirement or withdrawal, the participant may receive the full account balance in one lump sum, so long as the benefits are fully vested. The account balance may be used to purchase an annuity.

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Cash Basis Compensation

Cash basis compensation implies two things. The first is that the person is paid cash and not in kind, such as room and board or transportation. The second is that the company records labor expenses as they occur or are paid, and not as accrued.

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Cash Flow

The amount paid out throughout the entire year, along with all the incidental changes. The timing of salary changes affects the actual monies paid out, pay period by pay period.

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Cash Flow Statement

A financial statement that highlights monies actually received and paid out within a certain time frame (typically a year). It represents the differentials in the cash and cash equivalents account for the period in question.

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Cash Option Exercise The fact of paying cash for the price of an option exercise of a number of shares exercised in order to purchase the shares.

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Cash Or Deferred Arrangements

A program in which employees have the option of taking cash or placing some of their earnings into an established trust on a pre-tax basis.

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Cash Payment Option

A life insurance policy dividend option under which benefits are paid to policy owners in cash.

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Cash Premium Accounting System

Used for industrial insurance. Under this system, the broker directs the home office of the actual amount collected per policy. The home office then updates the policy records to mirror these collections and prepares new collection records.

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Cash Refund Option

A type of the life income option with refund, which specifies that any proceeds remaining when the beneficiary dies is to be paid in a lump sum to the contingent payee. Compare to the installment refund option.

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Cash Surrender Value

The amount available in cash when the owner of a policy voluntarily terminates the policy before it matures or becomes payable by death.

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Cash Surrender Value Option

In a life insurance policy, this is the amount of money, adjusted for factors like policy loans or late premiums, which would be received by the policy owner if he/she were to cancel the coverage and surrender the policy to the insurance company. Also known as the net cash value.

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Cash Value

In a life insurance policy, this is the amount of money, before adjustments, that are made for factors such as policy loans or late premiums, that the policy owner will receive if the policy owner allows the policy to lapse or cancels it and surrenders the policy to the insurance company. Cash values are a feature of most types of permanent life insurance. Compare to CASH SURRENDER VALUE. Also known as INSIDE BUILD-UP and policy owner's equity.

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Cashless Option Exercise

The exercise of an option by an individual through an outside broker or dealer. The broker, in effect, makes simultaneous purchases and sales of the underlying option shares and delivering cash or stock to the individual for the options. The individual does not therefore have to actually come up the purchase price.

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Catastrophic Claim Management

A cost-containment program designed to identify alternate, less costly methods of treatment for seriously ill patients without sacrificing the quality of care a patient receives. Also known as catastrophic claim management, large claim management, or medical case management.

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Causal Relation Requirements

Proof required by statute in Kansas, Missouri, Rhode Island, and Puerto Rico to show that the facts not accurately represented in an insurance application were material. In other words, that the misrepresentation affected the insurers decision to insure against that particular loss, to whatever extent.

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Ceding Company

The definition of reinsurance is the transfer of part or all of a risk insured against to another insurance company. The transferor of the risk is known as the 'ceding company' while the transferee (receiver of the risk) is known as the 'assuming company' or the REINSURER.

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Central Index Key (CIK)

A code used by the Securities and Exchange Commission's (SEC) computer systems to identify corporations and individual people who have filed disclosure with the SEC. The CIK can be used to find a specific company or fund on EDGAR.

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Central Tendency

In statistics, central tendency is a measure THAT indicates the middle (mean, median or mode) of a data distribution.

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Central Tendency Error

The end result when evaluators rate individual performance of subordinates toward the center of a performance scale, implying the assumption that everyone's performance is about average or that different performance levels are not significant.

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Centralization

The extent to which a central group controls the determination of and the practice of administration of salaries, most commonly, across organizational units. The degree of centralization or decentralization depends on the CULTURE an organization.

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Certain Payment

Payment not based on any condition. This is payment that will be made no matter.

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Certificate Of Assumption

In terms of assumption reinsurance, this is a certificate sent to each 'transferor of risk' or 'ceding company' to give the policy owner notice that: (1) the risk had been assumed, and (2) pertinent information about the new insurer, assuming company, or the REINSURER.

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Certificate Of Authority

A document that grants an agent power to act for the insurance company. This document comes from the insurer and is given to the agent as proof of his authority. The document not only grants authority but also outlines the extent of that authority. A certificate of authority may be used in any situation where one party grants power to another to act on the first party's behalf.

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Certificate Of Indebtedness

A certificate issued by an insurer to the beneficiary of a life insurance policy. This certificate details the minimum interest rate, which is guaranteed, and the frequency with which interest payments will be made.

Human Resource Management

Certificate Of Insurance

A document given to the insured by the organization insurance plan. This document outlines the type and extent of coverage to which the organization member is entitled and the beneficiary of that coverage. Very often, the certificate will also contain a rundown of the contract terms as they affect individual organization members. See also master contract.

Human Resource Management

Cession

The act of passing risk to another. The act of ceding. See Ceding Company.

Human Resource Management

Champus

Health coverage provided by the United States government to members of the armed services.

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Chance Of Loss

In insurance terms, this is the likelihood that an event (such as death or injury) will happen.

Human Resource Management

Change In Control Provision

A clause within a contractual document making provisions for conditions that must be satisfied in the case of a change of control. The change of control does not necessarily have to be a complete change of ownership. It may only be a percentage of the company that changes hands.

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Change management

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Change Of An individual health insurance policy clause that provides that the insurer has the right to make amendments or adjustments to Occupation Provision a policy's premium rate or benefits available when the insured changes work position or careers.

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Changes In Methods This is a change, which includes a change in the system of accounting of gross income and or deduction, or a change in the way a material item is treated. See also MATERIAL FACT. Of Accounting

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character

The sum total of an individual's personality traits and the link between a person's values and her behavior.

Human Resource Management

Chauffeur Services

Providing an employee with a chauffeur in addition to a car. For tax purposes, the value of the chauffeur is determined separately from the value of the car.

Human Resource Management

Child Support

There are two instances where an employer may become involved with an employee's Child Support: 1) Where there is a court order requiring the employer to withhold the support payment from the wages of the employee. Under the Child Support Enforcement Amendments of 1984 these payments take precedence over all other garnishment orders. 2) Under the Qualified Medical Child Support Order [QMCS], the child must be covered under the employer's health care plan to the extent that the plan covers dependents.

Human Resource Management

Church Plans

Church employees are generally exempt from the requirements of ERISA, unless they conduct business other than directly related to the operation of church.

The deliberate effort of an organization to anticipate change and to manage its introduction, implementation, and consequences.

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Civil Rights Act

A provision in Title VII of the Civil Rights Act of 1964 that seeks to prohibit discrimination in all areas of employment on the basis of race, color, religion, national origin or sex.

Human Resource Management

Claim

This is notification given to an insurance company asking for payment under the term of the insurance policy. May also be referred to as insurance claim.

Human Resource Management

Claim Administration claim examiners whose duty it is to review claims made, check into their validity and then authorize the payment of benefits to Department the proper party.

Human Resource Management

Claim Examiner

An employee who investigates insurance claims for an insurance company. This individual establishes that claims are valid and authorizes payment for these claims, while denying those that are fraudulent or invalid.

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Claim Frequency Rate

In terms of health insurance calculations, the claim frequency rate is the anticipated percentage of insured that will make claims against the company and the number of claims they will make during a certain period of time. The claim frequency rate is used to calculate the estimated average cost of claims, which, in turn are used to establish premium rates.

Human Resource Management

Claim Investigation

A system of operation whereby pertinent information regarding a claim is gathered for the determination of whether or not payment is to be made on that claim.

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Claim Reserve

A claim department's estimate of the amount of money needed to pay a claim. The estimate is made with the help of information that the claim department gathers in the course of handling the claim. This information may involve, for example, the extent to which the claim is covered by the policy, the effect of previously paid claims on the amount of coverage available to pay a current claim, and the effect of any applicable reinsurance coverage on the claim.

This is the department in a life and/or health insurance company responsible for processing claims. This department also has

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Claimant

The person(s) making a request, under the terms of an insurance contract, for payment of benefits due.

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Claims Base

The claim, employees as a whole, actually incurred in the previous two or three-year period under the same benefits plan.

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Claims Procedures

Set procedures, meeting regulatory standards, must be in place and outlined succinctly in plan description for every employee benefit plan. The set procedure must, in no way, discourage or make it unnecessarily difficult for individuals to apply for benefits. The procedure must also provide participants with a policy for appeals (within a specific time frame).

Human Resource Management

Class Beneficiary Designation

A way of classifying certain beneficiaries as one or as a group (e.g. children of the insured).

Human Resource Management

Classification

Hierarchical structure of jobs arranged into classes or pay grades.

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Classification Control Any procedure set up for the review and assignment of jobs to established classes / grades.

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Classification method Compares jobs on a â&#x20AC;&#x2022;wholeâ&#x20AC;&#x2013; job basis. Predefined class descriptions are established for each job and jobs are placed in whichever classification best describes them. of job evaluation

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Clean Slate

The Criminal Records (Clean Slate) Act 2004 establishes a clean slate scheme to limit the effect of an individual's convictions in most circumstances (subject to certain exceptions set out in Section 19) if the individual satisfies the relevant eligibility criteria.

Human Resource Management

Clean-Up Fund

This is a one-time life insurance benefit existing for the sole purpose of paying the insured's final expenses and unpaid debt.

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Cliff Vesting

When, after a specified number of years of service, all benefits accrued vests without any gradual vesting before the set time.

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climate

The short-term phenomenon created by the current junior or senior leaders. Organizational climate is a system of the perception of people about the organization and its leaders, directly attributed to the leadership and management style of the leaders, based on the skills, knowledge and attitude and priorities of the leaders. The personality and behavior of the leaders creates a climate that influences everyone in the organization.

Human Resource Management

Closed Contract

An insurance policy in which the condition of the policy and the application constitute the agreement, in its entirety, between the policy owner and the insurer. Contrast with OPEN CONTRACT.

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Closed ended questionnaire

A structured questionnaire used for job analysis that provides the incumbent with a written set of questions regarding job content that limits the responses to a predetermined set of answers. Questions are either behaviorally based or task based and require validation.

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Closing

The finalization of the sale of property. Used to describe the securing of commitment from a prospective buyer by requesting and obtaining the prospect's agreement to submit an application for the amount recommended in the sale proposal.

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Clubs

Employers may find it useful to pay for an employee's membership in clubs and professional organizations. Reasons for doing so would include the contacts made by the employee, the knowledge gained, the community perspective, ore growth of the employee.

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CMSA

Consolidated Metropolitan Statistical Area (CMSA). See METROPOLITAN STATISTICAL AREA (MSA).

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CNIL

The Commission Nationale de l'Iinformatique et des Libertés or CNIL is an independent French administrative authority whose mission is to ensure that data privacy law is applied to the collection, storage, and use of personal data. Created by law n° 7817 of 6 january 1978 about computers, files and liberties (data privacy). EQ. Privacy is a central element of the FTC's (Federal Trade Commission)

Human Resource Management

Coach

A qualified person who concentrates on improvement of a paddler's performance and skills rather than teaching new or basic skills.

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Coaching

A one-to-one process between a manager and subordinate, whereby the former will ‗train‘ the latter. See also Mentoring.

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Coefficient of Determination

The ratio of the explained variation to the total variation is called the coefficient of determination. This is a measure of predicitive reliability, and is defined as the correlation coefficient squared.

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Coinsurance

Found in most health insurance policies, this is an express requirement that the insured pay a particular percentage in excess of the deductible and of all eligible medical expenses.

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The term COLA can be used in two senses. 1) A Cost-of-Living Adjustment in which wage rates are periodically adjusted, usually upward, based upon changes in the cost of living. These are often found in collective bargaining agreements. In addition, they constitute large increases in government programs, such as social security. 2) A Cost-of-Living Allowance is a payment to an expatriate employee for differences in living costs between the host and home country of the employee.

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COLA

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This is when someone designates a policyâ&#x20AC;&#x2DC;s death benefit OR cash surrender value TO a creditor AS security WHEN applying FOR a loan. IF the loan does NOT get repaid, the policy proceeds go TO the creditor up TO the outstanding loanâ&#x20AC;&#x2DC;s balance. Collateral Assignment The policyâ&#x20AC;&#x2DC;s beneficiary receives the remainder. Life insurance IS acceptable security TO lenders because it IS freely assignable.The lender IS guaranteed the money IF the borrower dies before repaying the loan.

Human Resource Management

Collective Bargaining The process by which [an] employer[s] will negotiate employment contracts with [a] union[s].

Human Resource Management

Collective Bargaining Agreements between employees and employers outlining acceptable work conditions including working hours, vacation, holidays, and termination of service guidelines. These employees are typically part of a bargaining unit represented by a union. Agreements

Human Resource Management

Collectively Bargained Plans

Collectively bargained plans may have many features not allowed in other forms of qualified plans. A great deal of flexibility is written into the laws allowing unions and management to design plans that are in keeping with the circumstances of the particular situation.

Human Resource Management

Combination Clause

In a disability insurance policy establishing when the definition of total disability changes from the inability to perform a certain job to the inability to perform any job.

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Combination Company

A life insurance company that sells both industrial and ordinary insurance policies.

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Combination Dental Plan

This kind of dental plan contains both the features of the scheduled and nonscheduled plans. Generally, the combination plans cover preventative and diagnostic procedures on a nonscheduled basis and other services on a scheduled basis.

Human Resource Management

Combination Pay Plan

Describes a pay plan that is in two parts. The first is a base salary and the second is one or any combination of cash incentive elements (e.g. commission and/or bonus).

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Combination Plan

This is a type of pension plan that adopts an approach whereby part of the funding (the employer's contribution) is allocated and used to acquire life insurance policies with cash values. The other part of the funding is unallocated and is placed in a conversion fund. Consider also ALLOCATED FUNDING and UNALLOCATED FUNDING.

Human Resource Management

Commission

Commissions may be defined as payment to employees or representatives, usually in sales, of a set percentage of the selling price of the product.

Human Resource Management

Commissioners Method

Established by the United States, this is a system used to calculate modified net premiums and reserves for life insurance.

Human Resource Management

Common Accident Provision

Several definitions: 1) In terms of medical insurance policies, this is a common clause, which specifies that: should two or more members of the same family be injured in the same accident, they will only be subject to one deductible. (2) In terms of many voluntary organization accidental death and dismemberment policies, this is a clause that provides that the amount which becomes payable by an insurance company is limited to a designated maximum for a situation where more than one employee is killed or hurt in one accident.

Human Resource Management

Common Disaster Clause

This is an insurance provision requiring that the beneficiary survive the insured by a particular length of time for the benefits to pass to him/her. In a situation where the beneficiary does not survive the insured by the specified amount of time, the benefits will be paid as if the primary beneficiary predeceased the insured.

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Common Law Employees

A common law employment relationship is deemed to exist in a situation where the person/company for whom services are being rendered the right to direct/control the person rendering that service. The said control must go beyond the employer having the right to control what the employee does. It must include the right to instruct the employee how to do it.

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Common Review Date

Also known as focal point, this is the date on which an entire organization will receive increases in pay. A company may, therefore, affect increases for all employees on June 1s. (Those employees who were hired half way through a cycle will normally have their increases prorated.)

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Common Shares

Used to describe the units of equity ownership in a corporation or units of ownership in a mutual fund. Usually, these will have voting rights and sometimes dividends attached to them. The appreciation and the dividends are neither fixed nor guaranteed.

Human Resource Management

Common Stock

May be a share in a publicly traded or a privately held company. Holders of common shares have voting and dividend rights. See also COMMON SHARES.

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communicating

Comprises the ability to express oneself effectively in individual and group situations, either orally or in writing. It involves a sender transmitting an idea to a receiver.

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Community Rated

Used to describe an insurance plan in which the risk is shared equally between the members. Also the premium rebate is based on the overall community's health and that of the individual members. Also allows for an increase in the insured benefits.

Human Resource Management

Community Rating

Term used to describe the application of the same premium rates for a particular group without the consideration of past loss experience or their potential for loss.

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Commuting

Commuting is travel between the employee's residence and regular place of business and is considered a non-deductible personal expense. However, transportation expenses between two specific business locations during the workday are considered a deductible expense.

Human Resource Management

Company Cars

Excluded from Income. In general, when an employer provides a vehicle to an employee for business purposes, the value of the vehicle may be excluded from the employee's income. However, if the employee uses the vehicle for personal as well as business reasons, only the portion of the car's value that can be attributed to business use may be excluded.

Human Resource Management

Company Retention Method

A means by which the costs of various life insurance policies are compared. The cash values, dividends and yearly premiums are weighted by the chances they will be paid. Consider also comparison methods.

Commuted Value

In Canada, this is based on a variety of factors (interest rates, assumptions of mortality, pension entitlements and so on). This is a term used to refer to the current value of all future income payments from a pension plan. This is typically calculated and provided by the pension administrator upon request.

Human Resource Management

Comparable Worth

This is a doctrine that states that jobs have an inherent value. As such, men and women who perform jobs of the same inherent value should be similarly compensated. Before disparate treatment of protected classes became an issue, this term was used for both external competitive comparisons and for internal equity decisions. Today comparable worth focuses special attention on pay practices that may match the market or perpetuate past internal practices, but still create or perpetuate discrimination in the treatment of those holding female-dominated jobs whose content is similar but not equal to that of maledominated jobs. Comparable worth means that women should be paid the same as men, excepting allowable differences (i.e. seniority plans, merit plans, production-based pay plans, or different establishments or locations).

Human Resource Management

Compa-Ratio

The ratio of an employee's actual salary (the numerator) to the midpoint of the applicable (the denominator) salary range. To calculate an individual's compa-ratio, divide the actual salary by the midpoint of the assigned salary range.

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Compensable Factor In quantitative job evaluation plans, this is a term used to describe yardsticks used to measure and identify particular levels of compensable factor. Typically, there are about seven degrees for each factor. Degree

Human Resource Management

Compensable Factor In a job evaluation plan, this is the percentage, weight or influence, each compensable factor in a job is assigned. Weight

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Elements of a job for which the organization is willing to pay. These are used to provide a basis for judging job value to create a job worth hierarchy (job evaluation). Factors are usually measured in degrees and are weighted, based on their preCompensable factors determined value to the organization. Typical factors include skills, effort, responsibility, scope of authority, and working conditions.

Human Resource Management

Compensation

A methodical approach to assigning a monetary value to employees in return for work performed. Compensation may include any or all of the following: base pay, overtime pay, commissions, stock option plans, merit pay, profit sharing, bonuses, housing allowance, vacations and all benefits. This is referred to as remuneration in some foreign countries.

Human Resource Management

Compensation Committee

A high level committee (board of directors level) that approves pay and incentive award programs where senior management of the company are concerned.

Human Resource Management

Compensation Committee Report

A requirement of the Securities and Exchange Commission (SEC), this is an annual report to made by the Compensation and Benefits Committee. The Compensation and Benefits Committee has the responsibility for establishing compensation for a company's executives as well as for other compensation programs. Members may not be employees of the company, nor may they be involved with the executive compensation programs. The Committee takes into account information provided by independent compensation consultants.

Human Resource Management

Compensation Costs

This describes the overall cost to a company, including unforeseen and unrealized cost effects of current compensation decisions concerning the total compensation program (base pay, incentive programs and benefit plans).

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Compensation Limits Executive pay in corporations is limited in small measure. The amount of compensation paid to executives that is deductible or reimbursable to the company is no more than $1 million in compensation paid to an individual chief executive officer or the four For Officers Of other highest compensated officers of a corporation. Corporations

Human Resource Management

Compensation Reimbursement Agreement

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Compensation This describes the intrinsic guiding factor for the application and administration of a compensation program. Such a policy Strategy / Philosophy would, of course ensure that a compensation program (which would include benefits and pay) would align with the company philosophy. / Policy

Human Resource Management

Compensatory And Punitive Damages

The intent of an award of compensatory damages is to compensate the plaintiff for loss suffered. To re-instate the plaintiff to the position in which they were before they suffered the loss. The intent of an award of punitive damages is to both punish the defendant and to act as a deterrent to others from similar behavior. Employees wrongfully dismissed may seek compensatory and punitive damages.

Human Resource Management

Competencies

‗an underlying characteristic of a person‘ ‗motive, trait, skill, aspect of one‘s self-image or social role, or a body of knowledge‘.

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Competency-based pay

Competency based pay is a compensation system that recognizes employees for the depth, breadth, and types of skills they obtain and apply in their work. Also known as skill based and knowledge based pay.

Human Resource Management

Competitive advantage

‗People are the source of competitive advantage‘. Other systems in an organization can be copied but not the people in the organization.

This agreement requires employees who receive compensation that‘s disallowed as a deduction to the corporation to return the funds to the corporation.

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Competitive Compa- The term compa-ratio indicates how employees of a company are paid in comparison with the value of their jobs in the market. In other words, how the market pay ratio compares to the company's midpoint range in salaries of the same category. Ratio

Human Resource Management

Competitive Pay Data

Information from salary surveys of competing organizations' pay practices. This data allows compensation managers to set pay that is at, above, or below market level, depending on their organizations' pay strategies.

Human Resource Management

Competitive Pay Policy

Usually, this is a game plan that a company has, whereby they use the results of labor market surveys as means of evaluating and determining how to set pay levels.

Human Resource Management

Completion Bonus

Usually only applicable to an employee with an expatriate status, this is a bonus / lump sum given after the successful completion of an assignment. The objective is to provide incentive for the expatriate to continue with the assignment until its completion.

Human Resource Management

Compound Interest

Also known as the value of money over time, this is interest that is earned not only on the initial capital, but also on interest that has accrued over time.

Human Resource Management

Compound Salary This term is employed to describe the growth rate, expressed as a percentage of a salary over a period of time. Growth Rate (CSGR)

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Comprehensive Health Plan

This is a term used to describe a medical insurance program providing coverage of most medical expenses within the one policy. There is usually an annual deductible, which must be met before benefits become payable.

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Comprehensive Major Medical Insurance

Health insurance coverage with a combination of both a major medical policy and a hospital expense policy.

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Compressed WorkWeeks

A term used to describe any alternative workweek schedules (10 hour days or more complex rotation resulting in extended weekends).

Human Resource Management

Compression

Pay differentials too small to be considered equitable. The term may apply to differences between (1) the pay of supervisors and subordinates, (2) the pay of experienced and newly hired incumbents of the same job, and (3) pay-range midpoints in successive job grades.

Human Resource Management

Compulsory Retirement Age / Date

This describes the age and or date at which employees must retire. Since the amendment to the Age Discrimination in Employment Act of 1967 (ADEA), mandatory retirement, which is based only on age, has mostly been prohibited.

Human Resource Management

Computer-Aided Job In job evaluation, a computer may be used to manipulate statistical data in order to rank jobs. Evaluation

Human Resource Management

Computers Employer amount of personal use by the employee and the family, the benefit may not be considered taxable compensation to the Provided employee.

Human Resource Management

Conditionally Renewable Policy

When it is to their benefit, employers provide computers for employees to use when working at home. Depending on the

This is a health insurance policy that gives the insurer the right to refuse to renew the policy for reasons outlined in the policy at the end of a premium payment period. Compare with CANDELABLE POLICY, GUARANTEED RENEWABLE POLICY, and OPTIONALLY RENEWABLE POLICY.

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Confidence Interval

This is a range thatâ&#x20AC;&#x2DC;s computed for the observed value that should include the â&#x20AC;&#x2022;realâ&#x20AC;&#x2013; value 90% or 95% of the time. To determine this range or confidence interval, you must first compute the standard error of the value.

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Confidentiality agreement

An agreement restricting an employee from disclosing confidential or proprietary information.

Human Resource Management

Confirmation Certificate

Issued to a beneficiary of a life insurance policy, this certificate outlines the amount of life insurance proceeds in a retained asset account and other pertinent information.

Human Resource Management

conflict of interest

Any business activity, personal or company related, that interferes with the company's goals or that entails unethical or illegal actions.

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Conservation

An attempt by insurer's or their agent to prevent a policy from lapsing.

Human Resource Management

Consolidated In the United States, this is a statute that mandates that employers sponsoring organization health plans continue to offer Omnibus Budget coverage under the organization plan to employees, their spouses, and dependent children who lost coverage due to the Reconciliation Act Of occurrence of a qualifying event (e.g. reduction in work hours, many types of termination of employment, death, and divorce). 1985 (COBRA)

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Consolidated Subsidiary Accounting

An accounting method used for subsidiaries where the ownership is more than 50%. See COST METHOD.

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Constant Population With Constant Midpoints Model

The first approach used in determining salary increase budgets. In this approach, there is no information on any planned promotions, new hires, terminations, reclassifications, etc. It is assumed, that the status quo is maintained.

Human Resource Management

constraint

Any element or factor that prevents a person from reaching a higher lever of performance with respect to her goal.

Human Resource Management

constraint management

The practice of managing resources and organizations in accordance with the Theory Of Constraints (TOC) principles.

Human Resource Management

Construct Validity

The extent to which a measurement reflects the specific underlying construct it purports to assess. Construct validity requires gradual accumulation of evidence from a variety of sources.

Human Resource Management

Constructive

A tax principle for the determination of timing of tax liability, where there is a deferred payment. The law states that tax is to be imposed at the time when an individual reaches out to take the benefit.

Human Resource Management

Constructive Delivery policy with the intention that the insurer will be unconditionally bound by the policy as a completed instrument, or (b) when the

Human Resource Management

Constructive dismissal

Legally equivalent to physical delivery of a policy. Constructive delivery occurs: (a) when an insurer parts with control of the policy is physically delivered to an agent of the applicant.

Coercion by threats to act or promises to refrain and includes a resignation given as an alternative to be dismissed.

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Constructive Distributions

If a corporation pays a shareholder-employee a salary that‘s unreasonably high considering the services actually performed, the IRS may treat the excessive part of the salary as a constructive distribution of earnings to the employee-shareholder. The employee-stockholder‘s wages are reduced, and the difference is treated as a dividend. This creates increased corporate taxable income and tax liability for the corporation since the reduced wages increase the corporation‘s earnings but the cash to pay the additional tax is gone. There are also penalties and interest to be paid on the underpayment. To avoid this compound effect, the corporation and shareholder-employee can enter into a Compensation Reimbursement Agreement.

Human Resource Management

Consultants

The use of non-employee professionals by companies provides flexibility in the workforce. Consultants can undertake and complete projects without increasing the workforce of the organization.

Human Resource Management

Consumer Price Index (CPI)

CPI measures the change in consumer prices, as determined by the Bureau of Labor Statistics' monthly survey. Many pension and employment contract changes are tied to changes in consumer prices. This protects employees against inflation and reduced purchasing power.

Human Resource Management

Consumer Report

The communication of any information relating to a person's credit-worthiness, capacity and or general reputation by a consumer reporting agency.

Human Resource Management

Consumer Reporting Any person or body that provides consumer reports on a regular basis and makes them available for profit or non-profit basis, to another. Known also as credit reporting agency. See also FAIR CREDIT REPORTING ACT (FCRA). Agency

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Content Validity

The extent to which a measurement reflects the specific intended domain of content. Stated as a question: Do the ... thoroughly cover all relevant aspects of the conceptual domain they are intended to measure?

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Contestable Period

A pre-established period (usual two years) within which the insurer may contest the validity of a life insurance policy. Contrast with incontestable clause.

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Contingencies

Events that are likely but not certain to happen. Insurance premium rates and insurance companies' willingness to accept risks are based partly on the degree of likelihood or the probability that certain contingencies will or will not happen.

Human Resource Management

Contingency Reserve

A fund or reserve set up by an insurance company of its own volition to cover or help to cover any unusual or unexpectedly large claim amounts.

Human Resource Management

Contingent Annuity Option

An option under which an employee may elect to receive, under certain conditions, a reduced amount of annuity with the same income, or a specified fraction, to be paid after his death to another person designated as his contingent annuitant, for that person's lifetime. The contingent annuitant is usually the husband or the wife. (See JOINT AND SURVIVOR ANNUITIES.)

Human Resource Management

Contingent Beneficiary

Should the person designated to receive the proceeds of life insurance policy, predecease the person whose life is insured, then the contingent beneficiary becomes the beneficiary. May also be known as the secondary beneficiary.

Human Resource Management

Contingent Compensation

Similar to a BONUS, this is a payment or benefit that depends on the behavior and or performance of an employee.

Human Resource Management

Contingent Payee

This is the person or party who will receive the proceeds of a life insurance policy remaining to be paid under an option of settlement at the time of the original payee's death. May be contrasted with the CONTINGENT BENEFICIARY, whose rights end when the insured dies. Also known as the successor payee.

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Contingent Payment

A payment that will be made upon the occurrence of a predetermined event. For instance, this is a payment that will only be made at a certain date, if and only if, the recipient is alive.

Human Resource Management

Contingent workers

Employees who may be: casual labor, part-timers, freelancers, subcontractors, independent professionals and consultants.

Human Resource Management

Continuance Tables

Tables containing morbidity statistics that indicate the distribution of claims according to the duration of the illness or amount of expense involved in the claims.

Human Resource Management

Continuation Coverage

COBRA and other regulations provide for health care continuation of coverage for employees who have terminated or been terminated from their employer.

Human Resource Management

Continuing Education An annual education requirement for many professionals to continue to receive certification in their respective field of work. CE credits are usually governed by various State Boards. (CE)

Human Resource Management

Continuing Legal Education (CLE)

Continuing education credit that attorneys are required to earn each year. CLE accreditation is governed by state boards. The ERI Distance Learning Center provides CLE credit for selected courses. See our Course Credit Map for more information.

Human Resource Management

Continuing Professional Development (CPD)

In the United Kingdom, this is activity beyond initial training, aimed at improving skills, knowledge and understanding, whether by online courses, day seminars, spare-time study, etc. ERI provides CPD credit for UK counselors (attorneys). See our Course Credit Map.

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Continuing Professional Education (CPE)

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Continuous-Premium Also known as straight life insurance, this is a species of whole life insurance in which premiums are payable right up until the Whole Life Insurance death of the insured / throughout the whole life of the policy.

Human Resource Management

Contract for services An agreement with an independent contractor.

Human Resource Management

Contract Of Indemnity

Under this kind of contract, the amount of benefit to be paid is strictly based upon the amount of loss suffered financially (determined at the time of loss). Insurance contracts are typically contracts of indemnity. Their object is to reinstate the beneficiary to their position before their loss. See VALUED CONTRACT.

Human Resource Management

Contract of service

An employment agreement.

Human Resource Management

Contracts

In common law, employment is viewed and treated as a contract, and as such is subject to all the usual laws of contracts. Consideration must, therefore pass from one party to another for a contract to be considered to be binding and for the statute of frauds to apply.

Human Resource Management

Contributed Surplus

Peculiar to Canada, this is the amount in excess of the par value paid by the owners of the stock, minus the number of dividends paid to the owners of the stock.

This term is used generally for CPAs. CPE credits are governed by the National Accounting Standards Board (NASBA) located in Nashville, except for Illinois and Nebraska, which are governed by their respective State Board.

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Contribution Limit

In a defined contribution pension plan, this is the maximum allowed by law to be added to the participant's account. The annual contribution is inclusive of employer's contributions.

Human Resource Management

Contribution To Surplus

In mutual insurance companies, this is the income that results when an insurance company makes more money than is required to pay for the cost of actually providing insurance.

Human Resource Management

Contributory Benefit Plan

A benefits program requiring that employees contribute part (or all) of the cost, and the employer covers any remainder.

Human Resource Management

Contributory Organization Insurance

Any organization insurance plan that calls for the insured to contribute a portion of the cost of the organization insurance coverage. To be contrasted with NONCONTRIBUTORY ORGANIZATION INSURANCE.

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Contributory Plan

Any pension or employee benefit plan in which plan participants can or must make contributions to the plan out of their own pockets.

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Control point

The point within a salary range representing the desired pay for a fully qualified, satisfactory (average) performer in a job or group of jobs at a given time (usually the midpoint of a salary range).

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Controlled Foreign Corporation

Treated by the IRS as a U.S. tax reporting entity because of voting control or ownership of U.S. citizens, this is really an offshore company. Technically it is defined as a foreign corporation in which U.S. person(s) has 10% or more ownership or voting control.

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Controlled Groups

Usually refers to a group of corporations. One is known as the 'parent' company and owns a stock interest in at least one (if not more) other corporations, known as 'subsidiaries'. May also be a 'brother- sister' type association, whereby two or more corporations are owned by the same person or groups of persons. A controlled group may also consist of a combination of the two types of groups (in which case it is known as a 'combined controlled group').

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Convention Blank

Filed annually to their respective state insurance regulators, this is a financial statement required of all United States insurers.

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Conversion Fund

A fund where all the employer's unallocated contributions to a combination plan accrue.

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Conversion Privilege

May be defined in two ways: (1) The right, which an individual has, under certain circumstances to change coverage (e.g. change from an individual term policy to an individual whole life policy). (2) The right of an individual covered by an organization policy to change his or her coverage under an individual insurance policy. Typically, this kind of conversion may be made when a person leaves the group or the benefits are downgraded or ended for a certain group of people.

Human Resource Management

Convertible Debenture

A bond that may be converted, at the option of the owner, into common shares of the issuing company at certain times and at specific prices.

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Convertible Preferred May, at the owner's option, be converted at specific times into a certain amount of common stock of the issuing company. Stock

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Convertible Securities Convertible securities combine aspects of both stocks and bonds, thus creating a truly 'best of both worlds' investment. (Such As Debentures Convertible securities are a bonds, debenture or preferred stock exchangeable which, at the holder's option, may be Or Preferred Stock) exchanged for the common stock of the issuing company.

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Convertible Term Insurance

Term life insurance which may: 1) be converted into cash value insurance (USA) or may be the conversion of term assurance into an endowment assurance (UK); 2) converted into a permanent insurance policy at the option of the owner without further evidence of insurability.

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Coordination Of Benefits (COB) Clause

This is a clause included in health insurance policies that states that benefits will not be paid for amounts that are already covered by other organizational health insurers. The object of a coordination of benefits clause is to ensure that benefits from all eligible sources do not exceed 100% of permissible medical expenses. This also prevents an individual from profiting from duplicative organization health care coverage. Consider also OVER INSURANCE PROVISION.

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Core Benefits

These are the basic standard benefits that are offered to every employee (e.g. life insurance and health care).

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Core competencies

The skills, knowledge and abilities which employees must possess in order to successfully perform job functions which are essential to business operations.

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Core Labor Force

A small group of permanent workers, for example, strategists, planners.

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Corporate Culture

The shared beliefs, norms and assumptions of an organization, which enable it to adapt to its external environment and to integrate its employees and units internally.

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Corporate mission

The aims and objectives of an organization.

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Corporate-Owned (beyond what may be available through qualified plans). The company and the executive typically share ownership and the Life Insurance (COLI) beneficiary interests.

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corrective action

The implementation of solutions resulting in the reduction or elimination of an identified problem.

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Correlation

Several definitions: 1) In statistical terms, this is the simultaneous increase or decrease of two numerically valued random variables. 2) In lay man terms, this is a word used to describe some kind of association.

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Corridor

In order to qualify as life insurance for income tax purposes, a specific level of pure insurance protection, which is in excess of the accumulated value, must be maintained. It is this pure insurance coverage that is known as corridor.

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Corridor Deductible

Peculiar to the health insurance industry, this is when a major policy has paid up to the entire amount of the benefits to the insured party and there still exists some remaining expenses. This additional expense must be shouldered by the insured party before any further coverage becomes available.

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Cost Comparison Methods

A means by which cost of various life insurance policies are compared by calculating the cash values, dividends and premiums yearly and weighting them by the chances that it will be paid.

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Cost Containment

A plan whereby a company / organization attempts to minimize rising costs of health and welfare benefits by putting into effect programs that focus on cost effectiveness.

The purpose of COLI is to enable a corporation to insure the lives of their highly compensated / executive level employees

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Cost leadership

A strategy of becoming the lowest-cost producer in its industry.

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Cost Method

An accounting method used by affiliated companies, where the percentage of ownership is not more than 20%. Compare with EQUITY METHOD.

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Cost Of Capital

An economic concept that may be defined in various ways. 1) A discounted rate equating the market value of securities with the current value of cash flows to the security owners. 2) A discount rate equating market value of securities to the current value of the net operating income of a company, after tax. 3) May also refer to minimum rate of return, which must be assumed of a possible investment for the market value of the company not to be affected.

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Cost Of Goods Sold

Determined by subtracting ending inventory from goods remaining and available for sale (purchases vs. beginning inventory).

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Cost Of Increase In Current Year

The eligible payroll multiplied by the average increase, adjusted to reflect the percent of the year the increase is in effect.

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Cost Of Increase In Future Year

Eligible payroll multiplied by the average increase.

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Cost Of Labor

The process of establishing external pay practices, where information on labor market costs (total compensation amounts) are obtained from labor market competitors and relied upon when determining target total compensation opportunity.

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Cost Of Living

The cost of purchasing goods and services, as determined by the demand and supply of goods, services, and property. Typically, these costs are determined by a standard packages of goods.

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Cost Of Sales

In terms of sales compensation, the cost of sales is a subjective measure of internal costs. It reflects an 'ability to pay' line of thinking for setting target pay levels.

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Cost Shifting

A strategy whereby an organization minimizes the cost of making health coverage available, by transferring a portion of the costs or cost increases to someone other than the organization itself (usually to the employee).

Human Resource Management

Cost-of-living adjustment (COLA)

An across-the-board wage and salary increase or supplemental payment designed to bring pay in line with increases in the cost of living to maintain real purchasing power.

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Cost-Of-Living Index and employment contract changes are tied to changes in consumer prices to protect against inflation and reduced purchasing

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Cost-of-Living Levels

The cost of purchasing goods and services, as determined by the demand for and supply of goods, services, and property. Typically, these costs are determined by a standard packages of goods, such as is used by the Consumer Price Index (CPI).

Human Resource Management

Counseling

Counseling (work coaching) is providing day-to-day feedback to employees about areas in which their performance at work can improve.

CPI measures the change in consumer prices, as determined by the Bureau of Labor Statistics' monthly survey. Many pension power.

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Coupon Advertisement

In Canada, the Superintendent's Guidelines defined in a retirement or welfare plan.

courage

The virtue that enables us to conquer fear, danger, or adversity, no matter what the context happens to be (physical or moral). Courage includes the notion of taking responsibility for decisions and actions. Additionally, the idea involves the ability to perform critical self-assessment, to confront new ideas, and to change.

Human Resource Management

Coverage Rules

Coverage rules govern the admission of employees to participation in a retirement or welfare plan. The term "coverage" also refers to the IRS and rules that are designed to insure that qualified retirement plans benefit a broad cross-section of the employer's lower compensated employees. The rules for determining whether coverage is adequate in this latter sense are: 1. The Average Benefit Percentage Test: A plan will pass this test if: (a) it benefits employees under a classification that the does not discriminate in favor of highly compensated employees (the classification test); and (b) the "average benefit percentage" for lower compensated employees (their plan benefits expressed as a percentage of their compensation) is at least 70 percent of the average benefits percentage for highly compensated employees. 2. Minimum Participation Rule: A requirement for qualified retirement plans that a plan benefit at least the lesser of: (a) 50 employees; or (b) 40 percent or more of all employees of the employer. 3. Ratio Test: This test requires that the plan benefit a classification of employees that does not allow more than a specified difference between the percentage of an employer's highly compensated employees who are covered and a similarly computed percentage for lower compensated employees. For this purpose, the maximum allowable difference is a 70 percent ratio. 4. 70 Percent Test: This test requires a plan to benefit 70 percent or more of all of the employer's lower compensated employees. For this purpose, all eligible employees are considered to benefit under a plan. In a Section 401(k) plan, or a plan to which employees may voluntarily contribute or may receive employer matching contributions, all employees eligible to contribute will be considered to benefit in that portion of the plan.

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Covered Compensation

The foundation for integrating pension plan with Social Security benefits. The IRS defines it in its regulation as, the average of the 35 years of Social Security wage bases up to and including the year an employee reaches the age of eligibility (retirement).

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Covered Wages

In benefits plans, this represents the amount of employee wages or salaries used to calculate corresponding benefit amounts. For instance, pension calculations are typically based on salary and generally do not include other kinds of variable compensation (e.g., bonuses).

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Credibility Percentage

This is the amount of credit or weight given to a group's actual claims experience, when calculating a projection of future claims or a dividend. May also be referred to as the credibility factor. Consider also EXPERIENCE RATING and EXPERIENCE REFUND.

Human Resource Management

Credit Life Insurance

A term insurance that decreases by nature. The purpose is to pay the balance due on a loan in a situation where the borrower dies before the loan is repaid.

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Credit Unions

A credit union is a non-profit cooperative owned and operated by the members to provide financial services to its members.

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Credited Service (ERISA Standard)

This is the amount of service hours recognized in a benefit formula for the purpose of determining a pension. Typically, plans will credit one year of service for every year during which a beneficiary works a minimum of 1,000 hours.

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Credits

Several definitions: 1) A term used in accounting to describe a payment made towards an amount owed. 2) May also be a transaction between two parties whereby one (creditor/lender) provides money, goods or securities in return for a promised future payment by the other party (debtor/borrower). Transactions such as this normally include the payment of interest to the lender. Contrast with DEBIT.

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Credits And The Numerical Rating System

The process of underwriting, that have a positive effect on an individual's mortality rating. Credits are assigned negative values. Contrast with DEBIT and NUMERICAL RATING SYSTEM.

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Critical Incident

A method of performance documentation in which the rater keeps a written record of on-the-job incidents and or behaviors, which may be examples of effective or ineffective behavior. The record is subsequently used as a source document to rate the employee. The purpose being to avoid subjective judgments, which feature in most ranking and rating methods.

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Cross-Selling

Several definitions: 1) The process of using an existing customer base for one product as prospective buyers for other products.

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Culture

The shared beliefs, norms, and assumptions of an organization that enable it to adapt to its external environment and to integrate its employees and units internally.

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Cumulative

Several definitions: 1) An arrangement whereby payment not made when it is due is carried over to the next period. 2) May also refer to a type of cycle of performance where the performance of the employee currently holding a certain position is accumulated and expressed over next performance periods.

Human Resource Management

Cumulative Withholding

Cumulative withholding refers to a method of determining income taxes to be withheld. Wages are added for a particular payroll period to total wages already paid during the year. The aggregate is then divided by the number of payroll periods, and any excess tax is deducted from current payment of wages.

Human Resource Management

Currency Exchange Rates

The rate at which a certain country's currency exchanges with another. Distinctive changes in currency rates, relative to the base country currency, cause the fluctuation of relative payroll costs of expatriates.

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Current Assets

An item on a company's balance sheet that represents the sum of cash (including cash equivalents, accounts receivable, inventory, prepaid expenses and other assets), which could potentially be converted to cash within a year. Contrast with NONCURRENT ASSET. Compare with CURRENT LIABILITIES and CURRENT RATIO.

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Current Assumption experience. An amassment account is credited with a current interest rate, which changes over time. May also be known as Whole Life Insurance interest-sensitive whole life insurance.

A type of whole life insurance where the cash values are based on the insurer's current mortality, investment, and expense

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Current Liabilities

A balance sheet item that represents the sum of all monies owed by a company and due within a year. Also known as payables or current debt.

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Current Ratio

Current assets divided by current liabilities. This is an indication of a company's ability to meet short-term debt obligations. The higher the ratio, the more liquid the company is. See also RATION and QUICK RATIO.

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Current Review

A part of a utilization re-assessment program that monitors an insured's care while the insured is hospitalized and encourages the discharge of an insured from the hospital as soon as their medical condition no longer warrants continued in-patient care.

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Current Settlement Option Rates

Settlement option rates mirroring the interest rates presently earned by the insurer.

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Curriculum vitĂŚ (RĂŠsumĂŠ)

A curriculum vitae is a written description of your work experience, educational background, and skills. Also called a CV, or simply a vitae, it is more detailed than a resume and is commonly used by those looking for work outside the U.S. and Australia. A curriculum vitae is also used by someone looking for an academic job, i.e. in a college or university.

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Curtailment

An amendment to a pension plan significantly reducing plan benefits or employer contributions. Types of curtailments include a reduction of the expected years of service of present employees, and the elimination or reduction of the accrual of certain benefits for some or all of the future services of a significant count of employees.

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Custodial Care

Specialized care that is provided for those who cannot care for themselves. Custodial care is usually for the old, the seriously ill, or severely injured.

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Customarily and Regularly

Under FLSA, this means greater than occasional but less than constant. It includes work normally done every workweek, but does not include isolated or one-time tasks. (Section 541.701)

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Customer Service Department

The department in a life and health insurance company tasked with the provision of assistance to the company's policy owners, agents, and beneficiaries. Customer service specialists are tasked with answering policy owners' questions, assisting them with the interpretation of policy, and responding to questions on the policy coverage itself. They are also tasked with making changes requested by the policy owners, such as change of address, beneficiary designation, and mode of premium payment. The customer service department may also be the department that sends premium notices to customers; collects premium payments; and calculates and processes policy loans, dividends, nonforfeiture options and surrenders. Also known as the client service department, the policy administration department, the policy owner service department or the service and claim department.

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Cyclical unemployment

A form of unemployment – rises in times of economic recession and falls in times of prosperity. Now shows signs of being able to withstand increased prosperity.

Human Resource Management

Danger Pay

Usually paid in addition to a hardship premium, danger pay is often given to expatriates who are required to live and work in a foreign country where a civil war, revolution, or some kind of terrorism could threaten the physical well-being of the expatriate. The State Department sets the rate and establishes where and when it is needed. The rate never surpasses 25% of the base salary. However, companies are free to exceed this rate if they so wish.

Human Resource Management

Daubert Hearing

A pretrial hearing where a judge determines whether or not ―scientific evidence‖ to be presented by an expert witness will be allowed at trial. Under this test, judges evaluate whether the evidence is both ―relevant‖ and ―reliable‖ in determining if it will be admissible at trial.

Human Resource Management

Day Care Centers

Child care facilities that take care of children for multiple hours of a day while their parents are at work. One way to assist working parents is for employers to provide onsite day care for employees' children.

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Death Benefit Payments

"This is the money to be paid when the person insured under a life insurance policy dies. (It does not include adjustments for monies owed.) The first $5,000 of this amount is not taxed. This money may also represent the amount payable to the beneficiary of a retirement plan upon the death of the insured employee.

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Death Claim

A request for payment due to death under the terms of a life insurance policy or annuity contract.

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Debit

Several definitions: 1) An accounting entry resulting either in an increased amount of assets or a decreased number of liabilities. (2) In terms of insurance and underwriting, debits represent factors that have a negative effect on an individual's mortality rating.

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Debits Use Of Funds On a Cash Flow Statement, a debits use of funds is a cash expenditure of receipts.

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Debt Amounts Owed

Also known as liabilities, these are often divided into current liabilities (which are due within a year of the date entered on the balance sheet) and non-current liabilities (which are due more than a year after the date on the balance sheet).

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Debtor-Creditor Groups

A group composed of lending institutions--banks, credit unions, savings and loan associations, finance companies, retail merchants, and credit card companies--and their debtors.

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Debts Paid By Employer

Amounts for payment against a debt due from the employee. An employer who pays an employee's debt must include the amount as income to the employee for tax purposes.

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Deciles

In statistics this represents any of nine points that divide a distribution of ranked scores into equal intervals where each interval contains one-tenth of the scores.

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decision making

The process of reaching logical conclusions, solving problems, analyzing factual information, and taking appropriate actions based on the conclusions.

Human Resource Management

decision matrix

A matrix used by teams to evaluate possible solutions to problems. Each solution is listed. Criteria are selected and listed on the top row to rate the possible solutions. Each possible solution is rated on a scale from 1 to 5 for each criterion and the rating recorded in the corresponding grid. The ratings of all the criteria for each possible solution are added to determine each solution's score. The scores are then used to help decide which solution deserves the most attention.

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Decision Tree Model One of the Contingency theories of leadership â&#x20AC;&#x201C; developed by Vroom and Yettor (1973).

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Decreasing Term Insurance

This is a type of life insurance where the amount of coverage decreases over the duration of the coverage.

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Decrement

The process of gradually becoming less. In insurance terms, this is the reduction in the number of participants in an employee benefits plan (usually caused by such factors as retirement, disability, death or termination).

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Deductible

A deductible is the amount of expenses that the insured party must pay before receiving any benefits from the insurance company. It can also refer to an item or expense that is taken away from an individual's gross income in order to reduce the amount of taxable income (e.g. mortgage interest, state taxes, charitable contributions, and business expenses that are not reimbursed). See also Corridor Deductible, Integrated Deductible, and Per Cause Deductible.

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Deductible Limit

Usually, the maximum amount of money the insured must pay before the insurance company starts to pay. Insurance companies usually have a family deductible limit, which may be equal to two times the individual deductible.

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Deferral Date

A date occurring a period of time (typically a year) after the first anniversary of a group insurance policy. Deferring payment to this date helps insurance companies in better calculating the new premium based on the first full yearâ&#x20AC;&#x2DC;s experience.

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Deferral Options

Options where an employee may defer an amount of compensation and thereby delay owing taxes on the deferred amount until the option is exercised.

Human Resource Management

Deferred Annuity

An annuity (an investment through an insurance company) that delays income payments until the holder chooses to receive them.

Human Resource Management

Deferred Benefits

Non-monetary future compensation that an employee may be entitled to, providing that he/she has accumulated enough credited years of service (for vesting purposes). These usually include pension plans, 401(k) plans and stock option plans.

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Deferred Compensation Plan

An arrangement where a portion of an employeeâ&#x20AC;&#x2DC;s income is paid out at a later date than when the income was actually earned. Examples include stock options, retirement plans, and pensions. For most deferred compensation, the primary benefit is the deferral of tax.

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Deferred Incentives

Typically a part of an executive compensation package where the reward for consistent performance is a financial incentive payable in the future.

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Deferred Life Annuity

A life annuity (providing the purchaser with regular periodic payments, usually for the rest of their life) where payments are started no earlier than one year after its purchase.

Human Resource Management

Deferred Premium Arrangement

Also called a premium-delay arrangement, an agreement between an insurer and a group policy holder that lengthens the grace period of premiums on a permanent basis, usually by 30, 60, or 90 days. This agreement is usually only granted to companies with excellent credit ratings.

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Deferred Profit profits with all employees or a designated group of employees. The employer's contribution up to a specific limit is tax Sharing Plan (DPSP) deductible, and the employees receiving a share of the profits paid out by the employer can avoid paying federal taxes on the

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deficiency

Human Resource Management

Deficit Reduction Act plan. In terms of health benefits, it makes it mandatory for employers to treat an employee spouse who is over the age of 65, Of 1984 (DEFRA) the same as an employee spouse under 65.

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Defined Benefit Formula

Human Resource Management

There are basically two kinds of retirement plans: the defined benefit plan and the defined contribution plan. The defined benefit plan is one in which an employer comes up with a system that outlines how much an employee who is retiring will Defined Benefit Plans receive on a monthly basis for the rest of his/her life. The following are all taken into consideration when calculating the retirees' monthly stipend: years of employment with the employer, age and salary.

An employer-sponsored Canadian profit sharing plan that is a type of pension. Periodically, the employer shares the business

money received from the DPSP until it is withdrawn.

Failure to meet a set performance standard.

This statute affects benefits in many ways. It prevents most taxable benefits from being offered as part of a flexible benefits

This is a formula used to determine the benefits due each participant, upon retirement, in a defined benefit plan. The benefit amount is often related to the years of participation in the plan.

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Defined Contribution This is a formula used to establish the amount of contributions made toward a group benefit plan on a yearly basis. This contribution is typically a designated percentage of the participant's salary. Formula

Human Resource Management

Defined Contribution contribution plan is one in which an employer deposits a specific amount into an individual account for each employee. Accounts such as these are not required to specify how much is to be deposited into the account on a yearly basis, but they Plans

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delegative leadership

A style of leadership in which the leader entrusts decision making to an employee of a group of employees. The leader is still responsible for their decisions.

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Deming's 14 points

Management philosophy to help organizations increase their quality and productivity

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Demotion

When an employee is assigned to a position lower (in the company's hierarchy) than the employeeâ&#x20AC;&#x2DC;s current position. This may be as a result of poor performance, company re-organization, or even at an employee's request. Compare with PROMOTION or a lateral move.

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Demutualization

The process of converting a stock insurance company to a mutual insurance company, or vice versa.

Human Resource Management

Dental Care Benefits Dental insurance usually covers preventative care and treatment of teeth, gums, and the mouth. Plans might also cover

There are basically two kinds of retirement plans: the defined benefit plan and the defined contribution plan. The defined

must specify how it is to be done. These kinds of plans are also known as INDIVIDUAL ACCOUNT PLANS.

Dental Care Benefits are considered an aspect of health care benefits, although insurance plans ordinarily separate the two. orthodontia, X-rays, and cosmetic work.

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Dental Maintenance Organization

An organization like an HMO, but that provides only dental care.

Human Resource Management

Dental Plan Organization (DPO)

Similar to the HMO, this is an organization that provides dental care only.

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Dentist-Consultant

A licensed dentist who works for the insurance company, advising them as to the suitability of dental treatment. A licensed dentist must understand the underwriting objective of the dental plan he/she is advising.

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Department CompaRatio

The compa-ratio identifies exactly where an employee falls in their salary range. It is calculated by dividing the employee's annual pay by the midpoint of the salary range.

Human Resource Management

Dependent Care / Dependent Care Assistance

Employers may help to meet employees' child and other dependent care needs through a qualified dependent care assistance program, whereby employees are reimbursed for dependent care expenses (either directly or indirectly).

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Dependent Care Referral Programs

For these programs, employers collect sources from within the community of available day care options and presenting these to employees who need help finding day care.

Human Resource Management

Dependent Care Reimbursement Account

Many flexible benefit programs include flexible spending accounts, which give employees the opportunity to set aside pretax funds for the reimbursement of eligible tax-favored welfare benefits. FSAs can be funded through salary reduction, employer contributions, or a combination of both. Employees can purchase additional benefits, pay health insurance deductibles and copayments, or pay for child care benefits with the money in their FSAs.

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Dependent Care Spending Account

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Dependent Life Insurance

This is a group life insurance policy that is made available, on an elective basis, to cover dependents of group members. It is usually sold in small amounts intended to cover final expenses.

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Dependent Variable

This is a term used to describe something that must be numerically measured during a test or investigation, in order to answer a problem.

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Dependents

A word used to describe a person who is reliant upon another (usually, the head of a household) for financial support. A dependent is usually a child, spouse, parent, or sibling of the employee. In some companies, the definition of a dependent has been extended to include a significant other and, on occasions, son or daughter-in-law.

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Deposit Administration Contract

A method of funding a pension plan in which the sponsor of the plan places the insurance company's assets in a general account. Upon the resignation of a participant, the insurer retrieves enough funds from the general account to pay the plan participant an annuity. This contract typically protects the sponsor of the plan against loss and guarantees minimum returns. May be compared with IMMEDIATE PARTICIPATION GUARANTEE (IPG) CONTRACT.

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Deposit Term Insurance

Not really involving a deposit, this is a kind of term insurance where the premium for the first year is greater than that payable in subsequent years.

Human Resource Management

Deposition / Depositions

In a deposition, opposing lawyers have the opportunity to review material to be presented and to ask preliminary questions regarding a case. These sessions are transcribed, so you should worry less about presentation and more about the words that are to be transcribed in depositions.

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Depreciation

Used to describe a decline in value in any given property through wear and tear. Contrast with APPRECIATION.

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Deregulation

The removal of entities such as financial markets, road and transport from governmental control.

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Derivative Security

Any security (stock options, warrants, convertible securities or other) that may become a share of common stock.

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Determination Letter

Provided by the IRS (Internet Revenue Service), this is a letter documenting the full compliance (with its rules) of a pension plan.

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developing

The art of developing the competence and confidence of subordinate leaders through role modeling and training and development activities related to their current or future duties.

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Deviated Rate

Group insurance that adheres to rates put in force by a state insurance commissioner and sometimes offers lower rates than those recommended in certain areas. The company is said to have 'deviated' from the bureau rate for that area. Typically this is based on the group's claim experience.

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DHMOs

Give employers access to providers offering discounted services. DHMOs are becoming more popular amongst employers as a way to increase dental benefits while containing costs.

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Diagnostic Related Groups (DRGS)

A system of health benefit payment, where the payments are based on the individual's diagnosis as opposed to the actual number of medical services received.

Human Resource Management

Diary / Log

A method for gathering detailed information about a job by requiring the job incumbent to keep track of his or her specific activities during a determined period of time.

Human Resource Management

Dictionary Of Occupational Titles (DOT)

Based on over 75,000 job analyses, this dictionary was developed and produced by the Department of Labor. It defines over 20,000 jobs. Supposedly, the DOT has been replaced by O*Net, a new method of defining jobs, adopted by the Federal Government. The O*Net, however, is held in some contempt by practitioners, due to its complexity.

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Differential

In expatriate compensation, this is used to describe an amount of money used to compensate for the discrepancies in costs between the home and the assignment locations.

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Diluted Earnings Per If all the convertible shares were to be traded in for stock, this would be the value/earnings per share. It is a more accurate reflection of a company's earnings. Share

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Dilution (Percent)

A decrease in the equity of a share of stock due to additional shares being issued.

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Dining Facilities

In order to keep employees on-site for lunch, many employers provide a dining facility to employees.

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Direct Observation

In order to thoroughly understand a job content, this method of job analysis involves the direct observation of employee(s) while they perform their duties. This method is usually used when analyzing production type jobs, which are very repetitive in nature.

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Direct Pay / Cash Compensation

Payments made to employees in direct exchange for their contributions to an organization (does not include bonuses, stock options, life insurance, 401K or other benefits).

Human Resource Management

Direct Response Distribution System

Also known as 'Direct response marketing', this is a way in which insurance companies sell policies directly to customers. It relies on media advertisements, telephone solicitations, and direct mail. By adopting this type of marketing, insurance companies bypass insurance agents.

Human Resource Management

Direct Response Marketing

This is a way in which insurance companies sell policies directly to customers. It relies on media advertisements, telephone solicitations, and direct mail. By adopting this type of marketing, insurance companies bypass insurance agents.

Human Resource Management

Direct Seller

In terms of sales compensation, this is one whose sole purpose or objective is to obtain an order from the end user.

Human Resource Management

Directly and Closely Related Work

Under FLSA, this work may include physical tasks and menial tasks that arise out of exempt duties, and the routine work without which the exempt employee‘s exempt work cannot be performed properly. Work ‗‗directly and closely related‘‘ to the performance of exempt duties may also include recordkeeping; monitoring and adjusting machinery; taking notes; using the computer to create documents or presentations; opening the mail for the purpose of reading it and making decisions; and using a photocopier or fax machine. Work is not ‗‗directly and closely related‘‘ if the work is remotely related or completely unrelated to exempt duties. (Section 541.703)

Human Resource Management

Director And Officer (D&O) Liability Insurance

Additional insurance employed by companies in order to protect members of the board of directors and other key officers from law suits for various kinds of malpractice and or oversight.

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Directors Fees

Directors fees are fees received by Directors from a Corporation for services rendered. In a situation where a Director is not an actual employees of a company, the fees are considered to be self employment income for tax purposes and must be reported to the IRS.

Human Resource Management

Directors Of Corporations

May be internal or external persons elected by shareholders. It is the Board's responsibility to determine company policies, elect the president, vice president, and all other operation officers.

Human Resource Management

Disability

A condition rendering an insured party incapable of performing his or her duties.

Human Resource Management

Disability Benefits

These are usually paid monthly to an insured who is rendered unable to work prior to his or her normal retirement date. Includes both long and short-term disability benefits.

Human Resource Management

Disability Buy-Out Insurance

The purpose of this insurance is to provide funds to a business or to a partnership so that it may purchase the interests of a partner or a stock holder who is long-term disabled.â&#x20AC;&#x2013;

Human Resource Management

Disability Income Insurance

A kind of health insurance designed to provide periodic payments (usually monthly) in order to compensate insured people for a percentage of their income lost as a result of the disability. Also known as loss of time insurance. Compare with LONGTERM and SHORT-TERM DISABILITY INCOME INSURANCE.

Human Resource Management

Disability Table

Several definitions: (1) A calculation of the probability of becoming disabled at each age. (2) A calculation of the number of people who remain disabled at each age and the length of the disability.

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Disability Under Ada

Under the Americans with Disabilities Act of 1990 a disability is defined as a physical or other impairment, which substantially affects a person's ability to carry out one or more major life activities. In order for it to be said that a disability exists, it has to in fact substantially limit a major life activity. It is not enough that it could or might limit such an activity if corrective measures are not taken. A person whose impairment is not corrected by medication (or by other measures), therefore does not have an impairment as defined by the ADA.

Human Resource Management

Disabled / Disability

Under the Americans with Disabilities Act (ADA), employees are considered to be disabled if their "earning or productive capacity" in the occupation in which they engage is impaired by a physical or mental disability, including alcoholism, or drug addiction.

Human Resource Management

Disabled Life Annuity

This is a term used to describe a series of payments made to an insured party, which is contingent upon that person being both alive and disabled.

Human Resource Management

Discharge Provision

This is a part of the small estates statute, which frees an insurance company from liability that may arise under an insurance policy if it were to pay the proceeds to an insured's estate.â&#x20AC;&#x2013;

Human Resource Management

Disciplinary procedure

A procedure carried out in the workplace in the event of an employee committing some act contrary to terms of the employment agreement. If the act is regarded as Gross Misconduct this may lead to Summary Dismissal.

Human Resource Management

In general legal terms, a disclaimer is a term used to describe a denial or repudiation of responsibility for an act or thing. May also be an attempt to limit liabilities. Most contracts contain a disclaimer clauses of sorts. In an employment contract, a Disclaimer Statement disclaimer may take the form of a clause stating that the job description provided is not conclusive (For example, it may say: '...to perform other duties as needed.').

Human Resource Management

Disclosure Requirements

Employers are required, under the Employee Retirement Income Security Act (ERISA), to disclose to employees information about benefit plan provisions and legal protections provided under ERISA.

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Discontinuity Index

A test that is required by the NAIC Model Life Insurance Disclosure Regulation. Its objective is to pinpoint instances in which policy illustrations have been tampered with, so that they show an unrealistic/untrue progression of premiums, dividends and benefits.

Human Resource Management

Discount Rate

May also be known as rediscount rate or bank rate. This is the interest rate charged by a central bank for reserve fund loans to other financial institutions. Initially this was an actual discount (an interest charge withheld out from the amount loaned); but now it is an interest charge in its own right, despite the fact that it is still known as discount rate.

Human Resource Management

Discount Stock Option

Rights to a stock option at a price less than 100 percent of fair market value on date of grant.

Human Resource Management

Discounted Cash Flow

Calculation of cash flow anticipated in the future using an assumed interest rate in order to determine the current cash value of the future flows.

Human Resource Management

Discounted Restricted Stock Purchase

The purchase, by an employee, of restricted stock at a price that is below market rate.

Human Resource Management

Discounts On Merchandise And Services

Ordinarily, any benefit provided to an employee is taxable unless specifically excluded by Statute. When specifically excluded, it is known as a discount.

Human Resource Management

Discrete

This is a term used to describe a kind of performance cycle, whereby the performance of an employee is limited to a particular performance time period without any relation or reference to past or future performance time periods. As an example: 'Each month is discrete, because performance is measured on its own'.

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Discrete Data

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Discretionary dispersed, and the percentage each employee is to receive after a performance period. These types of bonuses have no pre(Informal) Bonus Plan established formulas nor are there any guarantees attached.

Human Resource Management

Discrimination

The favoring of one group of people to the detriment of others.

Human Resource Management

Discrimination Laws

Since the 1960's a series of anti-discrimination laws have been enacted. The major one has been the Civil Rights Act of 1964, as amended in 1972 and 1991. Title VII of that Act covers employment.

Human Resource Management

Discrimination Testing

This is a method used to determine whether benefits within a plan are being provided fairly and equally to a wide range of employees.

Human Resource Management

Disintermediation

This is the process whereby money is removed from an agent for the purpose of earning a higher yield elsewhere, typically with another financial agent / intermediary. Historically, disintermediation, has been a problem source for life and health insurers especially during periods of economic depression and or high inflation.

Human Resource Management

Disparate Treatment inconsistent with the provisions of the Civil Rights Act or the Equal Pay Act. This would include any company policy or practice

In terms of statistics, this describes variables that assume only particular, distinct values and that are not continuous. For example, salary levels and performance classifications are discrete variables, whereas height and weight are continuous variables.

A bonus plan that is completely at the discretion of management. Management decides on the total amount of bonus to be

The treatment of members of a protected class of people (under Title VII of the Civil Rights Act or the Equal Pay Act), which is that is deemed to be inconsistent with either of the Acts.

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Disqualified Person

A disqualified person is one who in the past five years was in a position to exercise substantial influence over the affairs of a tax-exempt organization. This person may be subject to IRS fines under INTERMEDIATE SANCTIONS regulations.

Human Resource Management

Disqualifying Disposition (of an Incentive Stock Option ISO)

This is a term used to describe the premature sale or disposition of shares (in other words when the required holding period is not met). When this occurs, the ISO is taxed at the regular rate.

Human Resource Management

Distance Learning

The process of delivering educational or instructional programs to locations away from a classroom or site to another location by varying technology such as video or audio-conferencing, computers, web-based applications or other multimedia communications.

Human Resource Management

Distance Learning Center (DLC)

The ERI Distance Learning Center (DLC) provides compensation and benefit courses. Online education lets you attend class in your home, your office, or while traveling, 24 hours a day, 7 days a week. All you need is a computer with an Internet connection. Each course examines a topic used daily by HR professionals. The DLC offers downloadable course materials, interactive self-study exercises, instantly graded exams, and the ability to track credits and print completion certificates. DLC courses are approved for PHR/GPHR/SPHR, CBP/CCP/GRP, CPE, JCA, CLE, and CE credit. To enroll, go to www.eridlc.com and click on Enroll Now! at the top of the page.

Human Resource Management

Distress Termination

A pension plan that is under funded and discontinued by a company. Contrast with STANDARD PLAN TERMINATION. Compare with VOLUNTARY and INVOLUNTARY PLAN TERMINATION.

Human Resource Management

Distribution Expenses

This is a term used to describe the expenses incurred while making insurance products available to the public (typically, these include the cost of printing, postage, telecommunication expenses, sales representative wages etc.).

Human Resource Management

Distribution System

In terms of insurance, this is a term employed to describe all the companies and people involved with getting the product from insurance companies to customers (e.g., those involved with all the necessary marketing activities).

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Distributions

Where benefits are concerned, this is a word employed to describe any payments made to a beneficiary / participant (e.g., the disbursements of profits to shareholders, interests earned, or dividends.) May also be used to describe payments from a pension plan).

Human Resource Management

Distributive bargaining

Related to the process of Negotiation. Known also as Competitive bargaining â&#x20AC;&#x201C; The parties are concerned with their respective shares of the benefits available and compete and conflict with each other until one side wins an increased share at the expense of the other.

Human Resource Management

Distributive Justice

The theory that people involved in an exchange are most happy if the relationship between the outcomes and inputs is the same all parties. This theory is attributable to G.C.Homans and forms the basis for the equity theory.

Human Resource Management

Distributor / Wholesaler

These are the 'middle men' in an indirect channel who buy products in bulk for the sole purpose of re-selling them.

Human Resource Management

Divergent Data

Measurements that move apart from the norm. They move ahead of the common point or fail to approach the limit of a distribution.

Human Resource Management

diversity

Committing to establish an environment where the full potential of all employees can be tapped by paying attention to, and taking into account their differences in work background, experience, age, gender, race, ethic origin, physical abilities, religious belief, sexual orientation, and other perceived differences.

Human Resource Management

Divestiture

A transaction by a company, which disposes of, or sells an asset owned by a company or a part of the business. Depending on the circumstances, may also be known as spin-off.

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Dividend / Dividend Payment

Several definitions: 1) In terms of investments and shares, this is a distribution to shareholders of earnings. Typically this distribution is made on a quarterly basis in the form of cash or stocks. The amount to be distributed is decided upon by the B

Human Resource Management

Dividend Accumulations

An option made available to the policyholder of a life insurance policy, whereby he or she may leave their dividends with the insurer. Doing so often results in an increased amount of interests earned from the insurer's investments.

Human Resource Management

Dividend Expenses

This represents the cost of maintenance of each policy during the course of the current year. The insurance company calculates this by using the dividends owed to policy owners.

Human Resource Management

Dividend For Organization Insurance

This is the amount to be reimbursed to the insured of all or a part of the excess of premiums paid (e.g., premium not needed by the insurer to pay claims, establish reserves, and cover expenses).

Human Resource Management

Dividend Interest Rate

Used to calculate dividends owed to policyowners, the dividend interest rate is the actual rate of earnings on an insurer's investments.

Human Resource Management

Dividend Options

This is a term used to describe the several possibilities that a policyowner has to choose from when receiving a share of the company's surplus. See and compare with AUTOMATIC DIVIDEND OPTION, CASH PAYMENT OPTION, DIVIDEND ACCUMULATIONS, and PREMIUM REDUCTION OPTION.

Human Resource Management

Dividend Rate Of Mortality

This is the term used to describe the mortality rate being experienced by the insurance company on the policies that it has sold. May also be described as the MORTALITY RATE for a particular age that the insurance company decides to use to calculate the dividends owed to the policyowners.

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Divisible Surplus

The part of an insurance company's earnings that is to be disbursed among the owners of the company's policies. See SURPLUS.

Human Resource Management

Divorce

A divorce of an employee can affect that person's benefits. The ex-spouse has rights to retirement benefits accrued during the time of the marriage. The ex-spouse also may apply for health benefits under COBRA. If there are children, then there are payments for child support, which may be enforced through garnishment.

Human Resource Management

Doctrine Of Reasonable Expectations

This is a doctrine applied by the courts, where (even though the policy does not expressly lay it out) the reasonable expectations of policyowners and beneficiaries will be upheld.

Human Resource Management

DOL

U.S. Department of Labor.

Human Resource Management

Dollar Value of Taxable Benefits

In general, the value of a benefit to an employee for tax purposes is the cost incurred by the employer in providing that benefit. This cost must include all taxes the employer pays in providing the benefit, but it is the net cost (as when the employee pays a portion of the cost).

Human Resource Management

Domestic Corporation

A company located in and doing business in the state in which it was incorporated. Compare with FOREIGN CORPORATION and ALIEN CORPORATION.

Human Resource Management

Domestic Partners

Some organizations recognize, as a family unit for benefit purposes, committed relationships between two unrelated people (whether of the same or opposite sex). These relationships are similar to, but which does not involve, an official marriage.

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U.S. Department of Labor's Dictionary of Occupational Titles provided the basis for many job descriptions still in use today. The latest version of the DOT has 12,761 occupations, but many are considered outdated and incomplete. That‘s because the last full-scale review and rewrite of the DOT was in 1977, so it does not take into account today‘s economy, especially in high-tech fields. To view DOT descriptions, see http://www.oalj.dol.gov/libdot.htm, or use ERI's Platform Library and select Resources I Immigration Data I DOT Data. To find out about ERI's update to the DOT, the enhanced Dictionary of Occupational Titles, see www.eri-edot.com.

Human Resource Management

DOT

Human Resource Management

Double Declining A depreciation method, whereby an accelerated depreciation is noted as expense during the first year and then the depreciable Balance Depreciation balance is reduced by an exact percentage that reflects the acceleration.

Human Resource Management

Double Indemnity

A type of death benefit policy that, if an insured's death is accidental / unnatural, pays an additional benefit that is equal to the basic benefit. Also known as accidental death benefit (ADB).

Human Resource Management

Double Taxation

The profits of any business are subject to corporate income tax. When any portion of these profits is distributed to stockholders, the distribution is also taxed as income to the stockholder. In most people‘s eyes, this is a case of double taxation.

Human Resource Management

The most established and most widely watched stock index in the world. The Dow, as it is most commonly known, includes 30 stocks (which typically are stocks of only the highest quality of common stocks listed on the New York Stock Exchange). The Dow Jones Industrial Dow is very often considered to be a good indicator as to how the entire market is fairing. However, because the Dow only Average (DJIA) includes 30 stocks, there are some who don't necessarily consider it to be a reliable barometer with which to measure the entire stock market. In recent times wider, more all-encompassing indexes are also commonly watched.

Human Resource Management

Downgrading

The movement of a job to a lower level in a job-evaluation system (i.e., to a lower job grade and/or pay range within a pay structure).

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Downsizing

Downsizing means to reduce the number of employees in an organization. Downsizing or lay-offs reduce the size of a work force. Used sparingly, and with planning, downsizing can be an organizational lifesaver, but when layoffs are used repeatedly without a thoughtful strategy, downsizing can destroy an organization's effectiveness. Also known as: reduction in force.

Human Resource Management

Draw

A cash advance against future performance. May be recoverable or non-recoverable.

Human Resource Management

Dread Disease Policy

A type of health insurance policy that covers only expenses incurred by treatment for specific diseases named in the policy (e.g. cancer). See LIMITED COVERAGE POLICY.

Human Resource Management

Drinking Criticism

In terms of underwriting, used to describe evidence that the abuse of alcohol or that alcoholism exists.

Human Resource Management

Drug Abuse

Employees, who have been convicted of a felony drug offence, must be disciplined by their employers, per the Drug-Free Workplace Act (e.g. of discipline would be the completion of a drug abuse rehabilitation program).

Human Resource Management

The Drug-Free Workplace Act of 1988 requires most federal government contractors and federal grantees to take specific steps to ensure a drug-free workplace. The law requires contractors to: 1. Develop and publish a policy statement notifying employees that the unlawful manufacture, distribution, dispensation, possession, or use of a controlled substance is prohibited Drug-Free Workplace in the workplace. 2. Establish a drug awareness program that tells employees about available drug counseling, rehabilitation, Act of 1988 and the Employee Assistance Program (EAP), if the employer offers one. 3. Impose sanctions on employees who are convicted of a criminal drug offense, or require them to participate satisfactorily in a drug abuse assistance or rehabilitation program.

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DSOS

Operate much like medical management service organizations, where a management company buys dentists' practices and provides them with administrative support.

Human Resource Management

Dual Labor Markets

organizations will operate with a small Core Labor Force and a Peripheral Labor Force

Human Resource Management

Dual Registration

When a registered representative is licensed with more than one broker, he or she is said to have a dual registration.

Human Resource Management

Dual-Choice Provision

The Health Maintenance Organization Act of 1973 states that employers with more than 25 employees and who meet a certain criteria, must offer a federally qualified HMO as an alternative to other more common health plan.

Human Resource Management

Due diligence

A critical component of mergers and acquisitions, it is the process by investigation and evaluation is conducted to examine the details of a particular investment or purchase by obtaining sufficient and accurate information or documents which may influence the outcome of the transaction.

Human Resource Management

Due Diligence Process

Due diligence is an indispensable part of the acquisition process, and therefore, investment. The objective of due diligence is to establish the financial and operating stability of the company being acquired. The due diligence process involves a diverse group of experts (lawyers, accountants, engineers, real estate professionals, etc.) who must examine / evaluate data and assess the property being acquired for price affecting conditions.

Human Resource Management

Dues And Membership Fees

Organizations may choose to pay membership dues to chambers of commerce or other business or professional groups that employees join as a consequence of their employment. Conversely, organizations may be required under a collective bargaining agreement to collect union dues or assessments from employees' pay, and turn the proceeds over to the union.

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Duplicate Coverage Inquiry (DCI) Form

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Early Retirement Age receiving his or her retirement income at once or may chose to have it deferred. If immediate receipt of income is elected, (Pension Plans) typically, it would be paid at a reduced rate.

I n the United States, when a health insurance company receives a claim, this is the form it fills out and sends to another insurance company. The goal is to determine whether the second company also covers the claim received.

This is the minimum age at which an employee may retire. An employee who chooses to retire early may also chose to start

Human Resource Management

Early Retirement Agreements

There are two ways in which early retirement agreements can occur. In some retirement plans early retirement is built in. This is especially true of defined benefit plans. Many such plans define an early age when the employee may retire at a reduced monthly payment, based upon age, tenure, and salary. In a defined contribution plan, the employee would be able to draw out his/her account at an early age. Organizations may choose to initiate an early retirement program in lieu of lay offs. These must be voluntary early retirement agreements. This is done by adding years to workers' ages and lengths of service. Some firms make the offer more attractive by offering outplacement assistance. Employees may be more likely to elect early retirement if the employer makes it easier to find new jobs through outplacement counseling.

Human Resource Management

Earned Time Off

ETO is earned each pay cycle, but is available the cycle after it first accrued. As an employee's years of service increase so does the rate of ETO accrual.

Human Resource Management

Earnings

Earnings include base pay, premium, overtime and bonuses. They are the total wages and or cash earned within a specific period of time.

Human Resource Management

Earnings And Profits This represents EARNINGS and PROFITS as computed for tax purposes.

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Earnings Per Share (EPS)

Term used to describe the total earnings of an organization divided by the number of outstanding shares. EPS is sometimes used as a basis for executive incentives. Also see DILUTED EARNINGS PER SHARE.

Human Resource Management

Earnings Statement

A detailed summary of the income and expenses of a business over a period of time (usually quarterly, semiannually or annually) showing the net income or loss incurred.

Human Resource Management

Economic Benefit

Measurable benefit not necessarily in the form of cash.

Human Resource Management

Economic Value Added (EVA)

This is a species of Residual Income. EVA is determined by subtracting from the income, the sum of cost of capital multiplied by the invested capital. EVA is often the measure employed in the determination of an organizationâ&#x20AC;&#x2DC;s economic profit. It is not uncommon for EVA to be used as a basis for incentive programs.

Human Resource Management

Edgar Extracts

EDGAR is a database maintained by the Securities Exchange Commission (SEC). All publicly traded companies in the U.S. must register data into this database. EDGAR can be reached through the Internet. Financial data is available on all publicly traded companies.

Human Resource Management

Education Individual Retirement Account (IRA)

A taxpayer can establish an education IRA to pay the qualified higher education expenses of a named child or grandchild, under the age of 18.

Human Resource Management

Educational Benefits educational reimbursement plan, in which employees are reimbursed for the costs of schooling or training that can be shown to

Companies may include educational benefits in their benefit package in a number of forms. The most common is an be related to their job or to their career in the company.

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Effective Date

Several definitions: (1) The date on which a health insurance policy and/or retirement plan kicks into effect and the insured party's coverage actually begins. (2) The date on which an increase in salary or pay rate goes into effect.

Human Resource Management

Effective Tax Rate

The ratio of income tax actually paid divided by gross income, showing the percentage of income actually paid in taxes.

Human Resource Management

efficiency

A measure (as a percentage) of the actual output to the standard output expected. Efficiency measures how well someone is performing relative to expectations.

Human Resource Management

Effort Bargain

The effort bargain is what an employee receives (level of compensation, benefits, etc.) from an employer in exchange for what the employee: brings to the table (knowledge and experience) AND does (the tasks of the job or the â&#x20AC;&#x2022;effortâ&#x20AC;&#x2013; made) for that employer. The terms of the bargain are typically outlined in an employment contract.

Human Resource Management

Elder Care Programs

Programs designed to assist the elderly in day-to-day activities. Usually this refers to the care of an elderly relative (financially, emotionally or even mentally).

Human Resource Management

Election Period

This represents the 60 days, after having been notified of one's COBRA eligibility, during which an ex-employee may opt to accept the continuation of health coverage or decline.

Human Resource Management

Elective Contributions Contributions made to an employee's 401(k) plan, made by an employer on the behalf of the employee. Contributions are Or Elective Deferrals made with before tax monies from a reduction in the employee's pay check.

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Elective Surgery

Under a health insurance program, elective surgery is a covered procedure, but one that requires adequate time to schedule any necessary diagnostic tests and/or initiation of treatment. This type of surgery usually requires the employee to obtain a second opinion as to the necessity of the surgery and/or review by the insurance company.

Human Resource Management

Electronic signature

An electronic sound, symbol, or process attached to or logically associated with a contract or record. This is executed by a person whose intent is to sign a record or contract. An electronic signature may be a number or code inputted on a telephone key pad, or the clicking of an I Accept box on a webpage. It indicates acceptance of terms.

Human Resource Management

Eligibility Date

This is the date on which an employee and/or his or her dependents are eligible for benefits.

Human Resource Management

Eligibility For A Plan

The foundation for establishing the employees or class of individuals who are qualified to participate in a specific plan (e.g., supplemental benefit or incentive plan).

Human Resource Management

Eligibility Period

Typically 31 days (sometimes 3 months) within which a recently employed individual has to elect to participate in an employerâ&#x20AC;&#x2DC;s insurance plan (which is contributory in nature).

Human Resource Management

Eligibility Requirements

Requirements that an individual must meet before being able to participate in a company's life insurance plan, health coverage plan or retirement, benefit.

Human Resource Management

Eligible Payroll

Established by calculating the total amount of salaries / wages of employees who, though eligible, do not receive a salary increase.

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Elimination Period

(1) Duration between the start of employment and date upon which the employee is actually eligible to receive benefits. (2) The time frame between an individual's disability and the beginning of benefits from the policy. Also known as qualification period (Canada) or WAITING PERIOD.

Human Resource Management

Emergency Room Coverages

Emergency room services are typically covered in most health plans. In managed care plans, the participant may be required to use a specified emergency room, unless out of area. Emergency room services are covered in Part B of Medicare.

Human Resource Management

Emerging Issues Task Force

This task force was created by FASB to deal with matters not expressly falling under GAAP. Jurisdiction includes but not limited to matters concerning stocks granted to employees.

Human Resource Management

Emotional Intelligence

Describes the mental ability an individual possess enabling him/her to be sensitive and understanding to the emotions of others as well as being able to manage their own emotions and impulses.

Human Resource Management

Employee achievement. However, under IRS rules, the employer may establish a qualified plan based upon length of service and /or Achievement Awards safety.

Human Resource Management

Employee Assistance An Employee Assistance Program (EAP) is an employer-initiated program to assist employees in dealing with problems such as substance abuse, marital discord, and employment problems. Programs

Human Resource Management

Employee Benefits

Any employer can establish an employee achievement award program, using whatever criteria wished to determine

Forms of compensation (excluding cash) available to employees. Benefits include but are in no way limited to the following: health coverage, vacation, income protection, retirement savings.

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Employee Contributions

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Employee Counseling counseling are taxable. In Quebec, counseling for physical and mental health is defined narrowly as stress management, Services tobacco, drug and alcohol abuse.

Human Resource Management

Employee Discounts

Employers may grant discounts to employees for their products or services. These discounts can be qualified as exclusions from gross income, provided that certain requirements are met.

Human Resource Management

Employee Empowerment

Empowerment is the process of enabling or authorizing an individual to think, behave, take action, and control work and decisionmaking in autonomous ways. It is the state of feeling self-empowered to take control of one's own destiny. Empowerment rules as a development strategy. Learn more about what empowerment is â&#x20AC;&#x201C; and is not.

Human Resource Management

Employee Involvement

Employee involvement is creating an environment in which people have an impact on decisions and actions that affect their jobs. Employee involvement is not the goal nor is it a tool, as practiced in many organizations. Rather, employee involvement is a management and leadership philosophy about how people are most enabled to contribute. Find out more about employee involvement.

Human Resource Management

Employee Participation

Several definitions: (1)The extent to which employees are involved with the implementation and or the administration of benefits and pay. This may also include the extent to which employees are involved with other company programs. (2) The level of voluntary participation of an employee in company benefits plan.

Human Resource Management

Employee Relations

A broad term used to refer to the general management and planning of activities related to developing, maintaining, and improving employee relationships by communicating with employees, processing grievances/disputes, etc.

Payments made by an employee to fund a specific benefit, thereby contributing to or covering the employer's entire cost.

Counseling for the mental and physical health of the employee is not taxable. Neither is retirement counseling. Other kinds of

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Employee retention

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Employee Retirement A Federal statute that establishes the following: (1) Rights of beneficiaries to pension benefits. (2) Standards that must be Income Security Act followed when investing pension plan assets. (3) Requirements that must be met before the disclosure of pension provisions and or funding. The Pension Benefit Guaranty is also established by ERISA. Of 1974 (ERISA)

Human Resource Management

Employee Services And Allowances

A category of benefits inclusive of relocation packages, subsidies on company-provided food service, discounts, and more.

Human Resource Management

Employee Stock Option Plan (ESOP)

A contract between a company and an employee giving the employee the right to purchase a specific number of shares in the company for a fixed price, during a certain period of time. Employee Stock Option Plans should not be confused with the term EMPLOYEE STOCK OWNERSHIP PLANS (also ESOPs), which are retirement plans.

Human Resource Management

Employee Stock Ownership Plan (ESOP)

Typically, this is benefit plan that requires that an employee meet certain requirements in order to participate and that has a portion of its investments (if not all) on company stock. An Employee Stock Ownership Plan (ESOP) is a type of defined contribution retirement plan in which the account of the employee consists of company stock.

Human Resource Management

Employees

Employees are persons who are compensated for services performed and whose duties are under the control of an employer.

Human Resource Management

Employee's Cost Basis

This is the amount taken away from the total amount paid to a pension beneficiary, so as to determine the part of the distribution that is taxable.

organizational policies and practices designed to meet the diverse needs of employees, and create an environment that encourages employees to remain employed.

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Employees Profit withdraw the amount deposited for tax purposes. Employees typically are taxed on contributions made on their behalf during Sharing Plan (EPSP) the year in which the contribution is made and also taxed on interests earned, if any.

Human Resource Management

In a way, all employment is an employment contract, but at times it is in the interests of the company to establish a written agreement. This is usually for a key employee. Such a contract usually includes a written guarantee of receiving certain Employment Contract rewards, regardless of the results produced on the job beyond a stipulated period. The employment contract may also have other stipulations, such as a no competition clause (where the new employee agrees not to compete with the business of the present employer for a certain amount of time).

Human Resource Management

Employment Taxes

In the United States, employers are required to pay a number of taxes on their payroll. These include Social Security, Medicare, and Unemployment taxes. Employees must also pay toward Social Security and Medicare. In addition, employees have deductions for income taxes.

Human Resource Management

Empowerment

The process of enabling or authorizing an individual to think, behave, take action, and control work and decision-making in autonomous ways.

Human Resource Management

Endorsement

Also known as a RIDER, this is an amendment made to an insurance contract, which then becomes part of the agreement by expanding or by limiting the existing terms.

Human Resource Management

The way the beneficiary to a life insurance policy is changed. Change may be effected in the following ways: (1) The owner of the policy may return the contract to the insurer. The insurance company then â&#x20AC;&#x2014; endorsesâ&#x20AC;&#x2DC; it with the name(s) of any new Endorsement Method beneficiary or (2) the policy is not actually returned to the insurer. Instead, the policy owner requests (over the telephone) that a change be made reflecting, the fact that there are new beneficiaries. Then the insurer mails an endorsement, reflecting the change, to the policy owner. Compare with recording method.

Human Resource Management

Endowment Insurance

In Canada, this is a profit sharing species, whereby the employer makes a deposit of funds in a trust account, but is able to

A kind of life insurance policy providing benefits (1) if death occurs within a pre-determined number of years, or (2) if after a predetermined number of years, the insured is still living.

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Enhancement Type Policy

A life insurance policy whereby part of the dividend is used to provide paid-up-additions and the other is used to produce a preestablished death benefit.

Human Resource Management

Enrolled Actuary

An actuary of a pension who has met the requirements and who has been enrolled by the Joint Board for the Enrollment of Actuaries (a federal agency).

Human Resource Management

Entertainment Expenses

Employees are entitled to reimbursement for business-related entertainment expenses; these payment are not considered wages if maintained separately. Business must be the purpose of the entertainment or meal such that there is at least discussion of business during the time. While meals are the most common entertainment items, sporting events, concerts, or other entertainment is allowable.

Human Resource Management

Entire Contract Provision

This is an insurance clause that states that only the actual policy and the application for it are binding on the parties.

Human Resource Management

environment

1. The political, strategic, or operational context within the organization. 2. The external environment is the environment outside the organization.

Human Resource Management

Equal Employment The purpose of the Equal Employment Opportunity Commission (EEOC) is to administer the various discrimination laws of the federal government. EEOC has the authority to investigate and conciliate charges of discrimination because of race, color, Opportunity Commission (EEOC) religion, sex, or national origin by employers, unions, employment agencies, and joint apprenticeship or training committees.

Human Resource Management

Equal Pay Act Of 1963

Makes gender based differentials in pay (wage discrimination) illegal, for jobs that are similar in terms of qualification requirements and that are performed under similar working conditions

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Equal Pay For Comparable Work

Human Resource Management

Equal Pay For Equal The intention of this doctrine is to protect women from gender based discrimination in pay and the U.S. Equal Pay Act of 1963 embodies it. Work

Human Resource Management

Equitable Assignment

A transfer which though it does not meet the requirements needed for a legal assignment, will be enforced because it is the right thing (the equitable or the fair thing to do).

Human Resource Management

Equity

When used in reference to direct pay this concept refers to a criterion of pay based on similar responsibilities and contribution to the organization. It may focus on the â&#x20AC;&#x2022;fairnessâ&#x20AC;&#x2013; of pay between employees within or outside the organization.

Human Resource Management

Equity Allocation

A term used to describe when a part of a retirement plan is funded by common stock investments (investments in equity).

Human Resource Management

Equity Investment

An investment which grants the investor an ownership title and or voting rights.

Human Resource Management

Equity Method

An accounting technique used by an investor who owns 20% to 50% of the voting shares / voting common shares. See cost method and consolidated subsidiary accounting.

This doctrine goes beyond the Equal Pay Act of 1963. It states that women must be paid the same in a female dominated job type as a man for a job that is substantially of the same value in a male dominated job type. This doctrine is in effect saying that job value / worth can be measured.

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Equity Pension

A pension plan providing benefits, partially at least, which varies according to the success of the investment in common stocks (or other investments). The equity part of the pension benefit is intended to provide benefits that grow as the rate of inflation rises.

Human Resource Management

Equity theory

Based on the notion that people are motivated by a desire for fairness, that is, to be treated fairly and will compare their own efforts and the rewards of others in the organization with a view to judging the fairness of their treatment.

Human Resource Management

Equity-Based Insurance Product

A life policy or an annuity whereby the value and benefit fluctuate depending on the performance of the equity investments. Owners of this kind of insurance policy, in effect are accepting and or risking to sharing in the insurer's gains and losses.

Human Resource Management

Equivalent Annual Percent Increase (EAPI)

Same as annualized increase percent.

Human Resource Management

Equivalent Level Annual Dividend (ELAD)

An amount presented as part of interest-adjusted method of comparing cost of life policies, to consumers. The equivalent level annual dividend is meant to represent the part of the interest-adjusted payment and the cost that is, in effect, not guaranteed by the insurer, because dividends will change in the future as the insurer's experience changes. This amount gives the buyer an idea of the extent that nonguaranteed amounts affect the interest-adjusted payment and the cost of a policy.

Human Resource Management

Equivalent Single Payment

A payment which is equal in amount to a series of other lesser payments and which may be made in place of several other payments.

Human Resource Management

Equivocal Suicide

A suicide which leaves no doubt as to the deceased's intention to die as a result of a self-inflicted destructive act.

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e-Recruiting

Recruiting services provided over the Internet are called eRecruiting and offer the ability for job seekers to log in and post their resumes. Similarly, organizations may post job openings with these online services, using email and chatboards to further communication. Typically, the Internet service provider chargers the organization a fee for posting the open position information.

Human Resource Management

Ergonomics

A methodical application of known information about every aspect (physical, psychological and social attributes) of human beings to the establishment and use of everything that may affect a person's working condition. This includes working environment, layout, training, the organization of the work-load and the job itself.

ERI Data Observations / Counts

ERI's software data is based upon a plethora of original sources, including hundreds of surveys. Some of these surveys do not specify the number of enterprises surveyed or the number of incumbent observations reported. Other surveys do enumerate the number of observations, but their totalities may involve redundant counts. In keeping with our constant insistence on accuracy and statistical precision, ERI declines to estimate how many total job incumbents are represented by the current consensus updated figures we report by industry, location, relevant experience, or size dimension from every possible source. Instead, we provide only the reliability statistics for one single identifiable survey out of the hundreds that we analyze. This source's counts can be proven accurate and precise (even if somewhat conservative, given all the many additional sources we also reference). For the Salary Assessor software, this source is the Bureau of Labor Statistic's OES; for the Executive Compensation Assessor software this is the SEC Edgar list of all ~14,000 registered US corporations. For Canada, we receive no similar reliability statistics from Statistics Canada.

ERI Distance Learning Center (DLC)

The ERI Distance Learning Center (DLC) provides compensation and benefit courses. Online education lets you attend class in your home, your office, or while traveling - 24 hours a day, 7 days a week. All you need is a computer with an Internet connection. Each course examines a topic used daily by HR professionals. The DLC offers downloadable course materials, interactive self-study exercises, instantly graded exams, and the ability to track credits and print completion certificates. Courses are free, and continuing education credit costs just $19 per certificate. DLC courses are approved for PHR/SPHR, CBP/CCP/GRP, CPE, JCA, CLE, and CE credit. To enroll, go to www.eridlc.com and click on Enroll Now! at the top of the page.

ERISA

The Employee Retirement Income Security Act of 1974 (ERISA) was passed to ensure that pensions offered by privateindustry employers met certain standards and were received by employees. ERISA does not require employers to offer pension programs. But ERISA does require that those who offer pension programs follow certain rules if they want favorable tax treatment for their contributions and employeeâ&#x20AC;&#x2DC;s deferral of income. ERISAâ&#x20AC;&#x2DC;s four basic requirements cover participation, vesting, funding and fiduciary duties. For more information on ERISA, see DLC Courses 15, 42 and 74.

Human Resource Management

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ERP

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Error And Omissions including but not limited to (1) his or negligent acts or omissions or (2) mistakes made by individuals for whom the agent is (E&O) Insurance vicariously liable.

Human Resource Management

ESOP

A contract between a company and an employee, giving the employee the right to purchase a specific number of shares in the company for a fixed price, during a certain period of time. Employee Stock Option Plans should not be confused with the term EMPLOYEE STOCK OWNERSHIP PLANS (also ESOPs), which are retirement plans.

Human Resource Management

esprit

The spirit, soul, and state of mind of an organization. It is the overall consciousness of the organization that a person identifies with and feels a part of.

Human Resource Management

Estates

Both assets and liabilities left by an individual upon his or her death. This includes any monies owed to the employee by the employer (wages are the most obvious but these could, theoretically include interest stemming from a retirement program and or life insurance policy which the company provides.

Human Resource Management

Estoppel

Estoppel is a legal term that creates a bar to alleging or denying a fact because of one's own previous actions or words to the contrary.

Human Resource Management

ethical climate

The "feel of the organization" about the activities that have ethical content or those aspects of the work environment that constitute ethical behavior. The ethical climate is the feel about whether we do things right; or the feel of whether we behave the way we ought to behave.

ERPs are the most common form of EDUCATIONAL BENEFIT. Under an ERP an employer could fully or partially reimburse an employee for education or training expenses on a pay-as-you-go basis.

A type of insurance which is designed to cover claims resulting from negligent acts and or mistakes of an insurance agent,

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European-Style Option

A stock option contract that may be exercised only during a specified period of time just prior to its expiration. This is in contrast to American-style options, which may be exercised at any time between the purchase date and expiration date.

Human Resource Management

evaluation

Judging the worth, quality, or significance of people, ideas, or things.

Human Resource Management

Evergreen Authorization

A term employed to describe a situation where shares are set aside to be granted in the future under an option which represents a portion of shares that are outstanding for every year the plan exists. Shares that remain unused from a previous year get carried forward to be used in a later evergreen plan. Typically, such plans remain in full effect until cancelled by the board of directors.

Human Resource Management

Evergreen Plan

A plan that has no specific date, upon which grants will no longer be permitted. Typically, a grant such as this remains in effect until specifically canceled by the board of directors.

Human Resource Management

Evidence Of Insurability

This is proof that an individual is an insurable risk.

Human Resource Management

Excess Benefit Plans benefits for highly compensated executives. These plans are initiated in order to attract retain and attract motivated executives.

Human Resource Management

Excess Benefit Transaction

Excess Benefit Plans are one form of non-qualified deferred compensation arrangements to supplement other retirement They may also be used for early retirement, takeovers, and firing of top executives.

A transaction in which a DISQUALIFIED PERSON receives an economic benefit from a tax-exempt organization that exceeds the value of the benefit the disqualified person provided to the organization. In terms of compensation, this means it was unreasonable compensation under Section 162.

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Excess Contributions

Excess Contributions are those contributions that exceed the deductible limits. A contribution to a profit-sharing or stock bonus plan is limited to 15 percent. The excessive amounts are subject to an excise tax of 10 percent.

Human Resource Management

Excess Interest

An interest amount, which is above the guaranteed amount, which an insurance company must pay, when interest rates increase, on a settlement option.

Human Resource Management

Excess Plan

Several definitions: 1) A plan providing benefits, only in excess of limits imposed on plans that are tax-qualified. (2) Also a plan providing benefits to company executives who have limited 401(k) plans.

Human Resource Management

Exchange Program

A program which permits the insured to exchange a policy with another without the requirement of proving insurability.

Human Resource Management

Exchange rate

Economically defined as the intersect of the labor demand and the labor supply functions in an external market. It constitutes the wage rate that employers are willing to pay and labor is willing to accept. From a compensation viewpoint, the exchange rate defines the criterion of external equity.

Human Resource Management

Excise Taxes

Excise taxes are a wide variety of taxes levied on employers for two main reasons. The first is as a penalty for failing to perform a required action or purposely or accidentally doing something wrong. The second type of excise tax is like a license to perform something. You pay for the privilege of having the right to do something. Most of these excise taxes have to do with the administration of benefit programs or taxes.

Human Resource Management

Exclusion Ratio

A term used to refer to the taxable part of an annuity plan. May also be used to describe the ratio of an employee's cost basis in relation to the employee's anticipated return.

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Exclusion Rider

Also known as impairment rider, this is a supplement to a health policy excluding or limiting insurance for a particular health defect.

Human Resource Management

Exclusions

These are losses not covered by an insurance policy. In terms of Accidental death policies, exclusions would be causes of death not deemed to be accidental. In terms of health insurance, this would be losses not insured (those that were pre-existing, surgeries that are cosmetic in nature or injuries that are self inflicted.

Human Resource Management

Exclusive Agents

Known also as captive agents, exclusive agents are those who work exclusively for one insurance company and who may not represent another company.

Human Resource Management

Exclusive of Board, Lodging, or Other Facilities

Under FLSA, the phrase ‗‗exclusive of board, lodging, or other facilities‘‘ means ‗‗free and clear‘‘ or independent of any claimed credit for non-cash items of value that an employer may provide to an employee. (Section 541.606)

Human Resource Management

Exclusive Territory

This is a territory no other agent may operate and offer insurance products. May be contrasted with nonexclusive territory and overlapping territory.

Human Resource Management

Exculpatory Statute

In community-property states, this is a law that permits an insurance company to pay proceeds of a life policy according to the terms of the agreement without the risk of incurring double liability.

Human Resource Management

executing

The ability to complete individual and organizational assigned tasks according to specified standards and within certain time criteria or event criteria.

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Executive

In relation to businesses, an executive is taken to be anyone who a sizeable amount of responsibility where the management of a company is concerned.

Human Resource Management

Executive Benefits

Provided to a limited number of executives, this is a form of non-cash compensation that is over and above the benefit packages given to the other employees. These may include but are not limited to company car and supplemental insurance.

Human Resource Management

Executive Officer

Responsible for a significant business/company function. Usually an executive officer is involved in policy-making.

Human Resource Management

Exempt Employees

Employees who are not subject to (i.e., they are exempt from) FLSA minimum wage and overtime provisions. These employees are typically paid on salary.

Human Resource Management

Exercise (Of A Share When a share option holder (owner) actually takes possession of the proceeds of the shares or of the shares themselves, he Option Or Other or she is said to have exercised their share option. In other words, the actual buying of shares under the terms of stock option Executive-Plan grant. Feature)

Human Resource Management

Exercise Period

Time frame / the specific days during which stock option may be purchased by the holder of the option.

Human Resource Management

Exit Interview

An interview between a member of staff of the organization that an employee is leaving to ascertain the reasons for the employee leaving the organization. Should not be carried out by employeeâ&#x20AC;&#x2DC;s immediate superior. Used for possible changes.

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Exoneration Statutes

A statute the effect of which is to pardon an insurer if a claim of policy proceeds is made when the insurer has already made payment to another party without knowing of other conflicting claims (e.g., the payment was made in good faith).

Human Resource Management

Expatriate

Also known as an international assignee or international staff, this is an individual who has been assigned to a country other than his or her home base for a period of time.

Human Resource Management

Expatriate Premium

This term is used to describe any number of supplemental payments which is made to an international assignee / expatriate employee in order to compensate for any hardship, education of dependent children in their mother tongue or other conditions that may be specific to the location.

Human Resource Management

Expectancy Theory

This is a theory that states that individuals make choices according to what they anticipate will give them the most payoffs. When applied to salaries, it follows that employees must hold the belief that the greater the effort that they make, the better their performance will be (the greater their results) and therefore the higher the salary they will command.

Human Resource Management

Expense Accounts And Allowances

Expense Accounts are ordinarily a feature of perquisites for executives. Since executives create expenses as a part of their jobs, they are allowed to keep an account, which allows them to be reimbursed periodically for these expenses.

Human Resource Management

Experience Rating

This rating system makes use of a group's premium and their claim experience to establish premium rates. Depending on the previous year's claim experience the insured party's premium will go up or down. See blended rates and manual rates.

Human Resource Management

Experience Refund

Several definitions: 1) The part of an insurance premium, which is given back to, the policyowner who experiences better than predicted claim experience. May also be known as an experience rating refund and or retroactive rate reduction. See dividend. (2) The part of a reinsurance premium which is returned to the ceding company in a situation whereby the actual claim experience is better than that which was predicted.

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Experience-Rated Arrangement

This is an insurance policy whereby the premiums are set according to the insured's previous claim experience.

Human Resource Management

Experimental Underwriting

As the name suggests, this is when an insurance company accepts to cover a risk on an experimental basis (risks which, under normal circumstances, they would not insure against).

Human Resource Management

Expiration Date

The date on which an option is nullified, if it is not exercised. The day that the option to exercise ceases.

Human Resource Management

Express Authority

This is an authority specifically granted upon an agent. Compare with implied authority and or apparent authority.

Human Resource Management

Extended Spouse's Allowance

Peculiar to Canada, this is an Old Age Security (OAS) benefit which is payable had been dependent on and was receiving a 'spouse's allowance', when their spouse dies. Such a person is entitled to receive this benefit until they either remarry or until they attain the age of 65. See and compare with spouse's allowance.

Human Resource Management

Extended Term Insurance Option

A non-forfeiture option providing for cash value of a policy to be applied as a net one time payment to purchase a term insurance at the same price as the death policy which is being surrendered minus and loans outstanding. The insured party still will have the same coverage but typically for a shorter time. See non-forfeiture options.

Human Resource Management

External Equity

The measure of a company's pay scales (pay levels or the going market rate) compared to the rate of other similar companies. External equity indicates that a company's pay levels are comparable to the market rate.

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External Wage Structure

Defines the wide variety that exists in pay rates that a company faces in the different labor and occupation markets.

Human Resource Management

Extraordinary Items

Either a gain or a loss stemming from an unusual event, which is non-recurring. An extraordinary item would typically be recorded separately on a company's financial statement.

Human Resource Management

Extra-Percentage Tables Method

A plan commonly used to rate substandard risks. Using this system, each substandard risk is charged a premium a specific percentage above the standard rate. To be contrasted with the standard premium method.

Human Resource Management

Extrinsic rewards

Work-related rewards that have value measurable in monetary terms, as opposed to intrinsic rewards, such as satisfaction in a job well done.

Human Resource Management

Face Page

This is the first page of an insurance agreement. This page typically includes the name of the insured party, their age and the name of the policyowner if it is different from the insured's name. This page also states the amount of the premiums, the agreement number, date on which the parties entered into an agreement. Lastly, this page normally has the signatures of both the president and the secretary of the company.

Human Resource Management

Face Validity

When a technique clearly appears to do what itâ&#x20AC;&#x2DC;s intended to do.

Human Resource Management

Facility-Of-Payment Clause

A provision of life insurance which allows the insurer to pay part of or all of the proceeds of the policy either to a blood relation or the insured party or to anyone who has a valid claim. This clause permits the insurer to pay benefits on time when it is not possible to pay benefits to the beneficiary who is identified in the insurance agreement.

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Factor comparison method

A job evaluation method in which a series of rankings are performed to assess which jobs contain more of each specific compensable factor than other jobs being evaluated The factor rankings of each job are assigned numerical values, weighted and then added together to determine the total job score.

Human Resource Management

Factor Table

Used by underwriters to establish the net worth of an applicant by specifying what that the applicant's income should be multiplied by in order to arrive at the maximum permissible insurance coverage.

Human Resource Management

Factor Weight

The weight assigned, in job evaluation, to compensable factors indicating their relative importance.

Human Resource Management

Fair Credit Reporting A federal law meant to ensure that consumer-reporting agencies are fair in their reporting (especially where the consumer's right to privacy is concerned. See consumer-reporting agency. Act (FCRA)

Human Resource Management

Fair Labor Standards This is a federal law that governs, amongst other things, child labor law, minimum wage and record-keeping requirements. Act Of 1938 (FLSA)

Human Resource Management

Fair Market Value (FMV)

The price of stock is typically measured as an average of the low and high market prices of a company's share of stock, on a specific day and on a recognized stock exchange.

Human Resource Management

Family Benefit

This is a life policy providing term coverage for spouses and children of the insured's.

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Family Deductible

Relieves a family from having to satisfy a deductible for each member of the family. The family deductible sets a single deductible for the entire family unit.

Human Resource Management

Family Income Insurance

Typically, this type of specialized individual insurance policy combines decreasing term with the whole life insurance. The former provides income for a pre-established period for the insured's family and the latter portion is normally paid in a lump sum when the insured party dies.

Human Resource Management

Family Insurance Policy

This type of insurance policy covers the entire family unit under the one policy.

Human Resource Management

Family Leave

Paid or unpaid time off granted an employee for the purpose of caring for a family member who is seriously ill or who has a serious medical condition. Also granted when a new baby is born or a child is adopted.

Human Resource Management

Fasb Statement No. 35

Issued by the Financial Accounting Standards Board (FASB) in 1985, the statement 35 deals with rules with which to measure and report a defined pension plan's value in accounting reports issued by the benefit pension plan.

Human Resource Management

Fasb Statement No. 87

Statement 87 governs the ways in which an employer accounts for and reports the costs of pension benefits offered to its employees. It requires that, for accounting purposes, employers use a cost method known as the projected unit credit method in order to establish the net periodic cost of pension benefits offered to employees. Statement 87 further requires employers to recognize a liability if the net periodic cost is higher than employer contributions to the plan and an asset if the net periodic cost is lower.

Human Resource Management

Fasb Statement No. 88

Statement 88 determines accounting requirements for employers whose defined benefit pension plans have been limited and or terminated, or who have experience other unusual events, (e.g., settlement of a pension obligation through a lump-sum payment of benefits to a plan beneficiary.

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Fasb, Financial Accounting Standards Board

This Board published rules by which U.S. CPAs conducted their accounting. It replaced the Accounting Principals Board (APB) in 1974.

Human Resource Management

Federal Insurance Contributions Act (FICA)

Established the payroll deduction of OASDI and Medicare taxes from employers and employees. Under Chapter 9 of the Internal Revenue Code of 1939 and Subchapters A and B of Chapter 21 of the Internal Revenue Code of 1954, as such codes have been and may from time to time be amended.

Human Resource Management

Federal Rule of Evidence 702

Federal Rule of Evidence 702 was enacted by Congress to simplify and widen the admission of expert-witness testimony. It was hoped that Rule 702 would clear up the inconsistencies by the Frye decision. This rule was intended to support and extend Frye, not replace it. See DLC Course 11: Daubert Criteria in Expert Witness Testimony.

Human Resource Management

Federal Unemployment Tax Act

FUTA, as it is commonly known, imposes tax on employers in order to pay for the unemployment benefits system. The tax represents the wages paid to employees.

Human Resource Management

Federally Qualified HMO

This is a HMO, which fulfills Health Maintenance Organization Act of 1973 requirements. Federally qualified HMOs may receive some grants and loans from the government and they may be used by employers to meet the provision to provide dual choice.

Fee Basis

Under FLSA, administrative and professional employees may be paid on a fee basis. An employee will be considered to be paid on a ‗‗fee basis‘‘ within the meaning of these regulations if the employee is paid an agreed upon sum for a single job regardless of the time required for its completion. These payments resemble piecework payments with the important distinction that generally a ‗‗fee‘‘ is paid for the kind of job that is unique rather than for a series of jobs repeated an indefinite number of times and for which payment on an identical basis is made over and over again. Payments based on the number of hours or days worked and not on the accomplishment of a given single task are not considered payments on a fee basis. (Section 541.605)

Human Resource Management

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Fee Schedule

A list, which represents the maximum benefits payable under a company medical contract for specified procedures. See also relative value schedule. May also be known as schedule.

Human Resource Management

Fee Schedule Basis

Compensation plan found in HMOs and PPOs whereby physicians are paid a pre-established amount for specific services that they provide. See Capitation basis.

Human Resource Management

Feedback

The outcome or state of a system, which may be utilized in the modification of system's operation. This term is usually used in terms of compensation and as such, relates to the system whereby information is obtained regarding performance versus compensation.

Human Resource Management

FICA

The Federal Insurance Contributions Act established the payroll deduction of OASDI and Medicare taxes from employers and employees. Under Chapter 9 of the Internal Revenue Code of 1939 and Subchapters A and B of Chapter 21 of the Internal Revenue Code of 1954, as such codes have been and may from time to time be amended.

Human Resource Management

Fiduciaries

A fiduciary is a person who has a position of trust with respect to any other person. In employee benefit plans, covered by ERISA, there is a standard of conduct imposed upon such a person.

Human Resource Management

Field Allowance

Compensation in form of a payment to an expatriate for additional costs and difficulties and working in different locations.

Human Resource Management

Field Force

Insurer's field offices that house insurance agents.

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Field Office

Local sales office.

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Field Underwriter

An underwriter who works out of a sales office.

Human Resource Management

Field Underwriting

Underwriting of a prospective client that takes place out in the sales field or sales office.

Human Resource Management

A private entity created by the accounting profession to develop and promulgate financial accounting standards and practices. Its membership is composed of top-level accounting professionals from business, government and education professions. It Financial Accounting derives its authority from official recognition by the Securities and Exchange Commission (SEC) and the American Institute of Certified Public Accountants (AICPA) and from the general support of corporate and investment communities. While the Standards Board Securities and Exchange Commission (SEC) has the authority to regulate accounting standards, it nearly always defers to the FASB.

Human Resource Management

Financial Accounting Issued in the United States by the Financial Accounting Standards Board (FASB) in 1985, Statement 87 governs the ways in Standards Board which an employer accounts for and reports the costs of pension benefits offered to its employees. The Statement, titled Statement 87 (FAS 'Employers' A 87)

Human Resource Management

Financial Institution

An institution that uses its funds chiefly to purchase financial assets (deposits, loans, securities) as opposed to tangible property.

Human Resource Management

Financial Intermediary

Often referred to as financial institutions, they act as the middleman between investors and firms raising funds.

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Financial Planning

Evaluating the investing and financing options available to a firm. Planning includes attempting to make optimal decisions, projecting the consequences of these decisions for the firm in the form of a financial plan, and then comparing future performance against that plan.

Human Resource Management

Financial Settlement

A payment made under a contract.

Human Resource Management

Financial Statements

A financial statement (sometimes called an income and expense declaration) is a court paper, which requires a party to specify her monthly income and expenses.

Human Resource Management

First Dollar Coverage Insurance that provides payment for the full loss up to the insured amount with no deductibles.

Human Resource Management

First In, First Out

A method of valuing the cost of goods sold that uses the cost of the oldest items in inventory first.

Human Resource Management

First Year Commission

Commission amounts paid for a policy's first year of premium, based on an annual amount.

Human Resource Management

Fiscal Year

A 12-month period used by an organization as the accounting period. Can begin on any date. Is used as the time frame for financial reporting, preparation of profit and loss statements, etc.

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Fiscal Year Budget (FYB)

A 12-month operating budget for an organization that can begin on any date. This time frame is used for financial reporting, preparation of profit and loss statements, etc.

Human Resource Management

five why's

The practice of (Japanese) asking "why" five times when confronted with a problem. By the time the fifth why is answered, they believe they have found the ultimate cause of the problem.

Human Resource Management

Fixed Benefit Retirement Plan

A type of retirement plan providing benefits only on a fixed amount or at a fixed percentage # such as 1 percent of monthly salary times the number of years of credited employment or 25 percent of the employee's average pay over the last few years prior to retirement.

Human Resource Management

Fixed Liabilities

Also known as liabilities. These are often divided into current liabilities, which are due within a year of the date entered on the balance sheet and non-current liabilities, which are due more than a year after the date on the balance sheet.

Human Resource Management

Fixed Period Option

Life insurance settlement option in which the policy proceeds are paid out in fixed amounts.

Human Resource Management

Fixed Term Employment

An employee and an employer may agree that the employment of the employee will end at the close of a specified date or period or on the occurrence of a specified event or at the conclusion of a specified project.

Human Resource Management

Flat Extra Premium Method

A method of rating a sub-standard life insurance risk when the extra risk is considered to be constant or temporary.

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flexibility

The ability of a system to respond quickly, in terms of range and time, to external or internal changes.

Flexible Benefit Plan

A benefit program under Section 125 of the Internal Revenue Code that offers employees a choice between permissible taxable benefits, including cash, and nontaxable health and welfare benefits such as life and health insurance, vacation pay, retirement plans and child care. Although a common core of benefits may be required, the employee can determine how his or her remaining benefit dollars are to be allocated for each type of benefit from the total amount promised by the employer. Sometimes employee contributions may be made for additional coverage.

Human Resource Management

Flexible Benefits

Many flexible benefit programs include flexible spending accounts, which give employees the opportunity to set aside pretax funds for the reimbursement of eligible tax-favored welfare benefits. FSAs can be funded through salary reduction, employer contributions or a combination of both. Employees can purchase additional benefits, pay health insurance deductibles and copayments, or pay for child care benefits with the money in their FSAs.

Human Resource Management

Flexible Compensation

An approach to expatriate compensation. Allowances can be changed depending upon the needs and desires of the expatriate.

Human Resource Management

Flexible Premium Annuity

An annuity under which the policyholder or contract holder may vary the amounts or timing of premium payments.

Human Resource Management

Flexible Spending Accounts

Many flexible benefit programs include flexible spending accounts, which give employees the opportunity to set aside pretax funds for the reimbursement of eligible tax-favored welfare benefits. FSAs can be funded through salary reduction, employer contributions or a combination of both. Employees can purchase additional benefits, pay health insurance deductibles and copayments, or pay for child care benefits with the money in their FSAs.

Human Resource Management

Flextime

A system of working according to which people work a set number of hours within a fixed period of time, but can vary the time they start or finish work.

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FLSA

The Fair Labor Standards Act is a U.S. federal law that governs, amongst other things, child labor law, minimum wage and record-keeping requirements.

Human Resource Management

follow-up

Monitoring of job, task, or project progress to see that operations are performed on schedule.

Human Resource Management

Forced Ranking

Forced ranking systems direct managers to evaluate their employees' performance against other employees, rather than the more common (and often grade inflated) measure of evaluating performance against pre-determined standards. The result of such a process is often brutally blunt: The top 20 percent of performers are amply rewarded, and the bottom 10 percent are shown the door.

Human Resource Management

Foreign Corporation

A corporation, which was incorporated under the laws of a foreign country, here also called alien corporation. Also, a corporation doing business in a state other than the one in which it is incorporated here also called out-of-state corporation.

Human Resource Management

Foreign Employees

Employees that are employed in another country.

Human Resource Management

Foreign Insurer

An insurer is a foreign company in any state other than the one in which it is incorporated.

Human Resource Management

Foreseeability

A key issue in determining a person's liability. If a defendant could not reasonably have foreseen that someone might be hurt by his or her actions, then there may be no liability.

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Forfeiture

The loss or surrender of money, property, a right or privilege due to failure to perform.

Human Resource Management

Forfeiture Loss

Loss of money or anything of value due to failure to perform, such as a deposit given to insure performance.

Human Resource Management

Form 10-K

A company's annual audited report filed with the Securities and Exchange Commission, due within 90 days of the end of the company's fiscal year.

Human Resource Management

Form Of Payment

All payments must be by cash, certified check, cashiers or treasurer's check or by a United States postal, bank, express, or telegraph money order.

Human Resource Management

Former Employee

An individual who was once an employee of a particular company or organization. Termination may be voluntary or not.

Human Resource Management

Fractional Premium

In insurance, a proportionate amount of the annual premium, that is, one-twelfth of the annual premium per month for each month involved. A premium less than the mode premium, usually used when a change in premium date is desired and the premium must be set to cover the tie period between the original payment date and the new one.

Human Resource Management

Fraternal Benefit Society

Fraternal benefit societies are open to men, women and children to provide social, educational and community service opportunities. In addition, fraternal benefit societies offer members life, accident and health insurance and/or annuities.

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Fraternal Insurance

Insurance offered to a social organization for their members.

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Fraudulent Claim

The submission of a claim, which contains false information, is a crime. You may not claim any item, which you did not own or did not ship. It is also illegal to deliberately falsify purchase prices, dates of purchase, quantities, or similar information.

Human Resource Management

Fraudulent Misrepresentation

A false statement of fact, made by a person who does not believe the truth of the statement or is recklessly indifferent to whether it is true or not, to another with the intention that the other person will rely on it.

Human Resource Management

Free Examination Period

A period of time where a policy or product can be reviewed and return it if satisfaction has not been met, with a full refund.

Human Resource Management

Freedom of association

The right to belong to a union. As protected by the Human Rights Act 1993.

Human Resource Management

Frequency

Several definitions: 1) Number of times an average person or home is exposed to a media vehicle (or group of vehicles), within a given time period. (2) The position of a television or radio station's broadcast signal within the electromagnetic spectrum.

Human Resource Management

Frequency Distribution

Table of statistical data arranged to indicate the number of occurrences of each value.

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Fringe Benefits

Non-salary employee compensation.

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Front Loaded Policy

With this type of life insurance certificate, most of the expense charges take the form of deductions from each premium payment and continue throughout the premium-payment period.

Human Resource Management

Front Pay

The amount of lost earnings accruing between the time a plaintiff wins a legal judgment and is reinstated to his/her job or takes another job. Like back pay, front pay essentially is the equivalence of lost earnings. Neither Back Pay or Front Pay is subject to the Civil Rights Act of 1991 $300,000 liability cap. Each can be awarded over and above any compensatory or punitive damages.

Human Resource Management

Frozen Plans

Plans that have not been terminated but have ceased accruing benefits and are no longer accepting new participants.

Human Resource Management

Fully Contributory

A general term used with group health insurance plans in which the employee pays a portion of the premium.

Human Resource Management

Functional job analysis

The preparation required for the construction of a job description. It is necessary to collect data on the job to be advertised.

Human Resource Management

Fund

To finance or underwrite.

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Funding Agency

A financial institution or individual that provides for the accumulation or administration of the pension contributions that will be used to pay pension benefits.

Human Resource Management

Funding Standard Account

A pension plan funding approach under which a separate account is charged with certain liabilities and credited with certain amounts. The funding standard is satisfied when there is no accumulated funding deficiency, that is, when the balance in the account is zero.

Human Resource Management

FUTA

The federal government and the various states impose a tax on employers with respect to certain categories of employee service. A few states also require employees to contribute to the cost of providing unemployment benefits.

Human Resource Management

FUTA Tax

The Federal Unemployment Tax Act (FUTA) levies an excise tax on employers to pay for the unemployment benefits system. The tax is a percentage of the wages paid to employees. Contributions to state unemployment funds are generally a credit against the FUTA tax.

Human Resource Management

Future Service

For pension benefit purposes, the period of time beginning with the current date and ending with the anticipated date of an employee's retirement.

Human Resource Management

Future Value

The value at some point in the future of a present amount of money.

Human Resource Management

Gainsharing / GainSharing

This type of variable pay ties bonuses or salary increases to increased productivity (vs. profit increases). This is performancebased incentive pay.

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Gatekeeper

The primary care provider responsible for managing medical treatment rendered to an enrollee of a health plan. Alternatively, this term has been used to describe third party monitoring of care to avoid excessive costs by allowing only appropriate and necessary care to be rendered.

Human Resource Management

GED

General educational development, and/or general equivalency diploma.

Human Resource Management

Gender Discrimination

Gender is one of the protected groups under the Civil Rights Act. Thus gender, in and of itself, may not be used in a whole range of human resource decisions regarding employees. In addition, the Equal Pay Act prohibits paying men and women differently for the same or substantially similar jobs, and Title IX prohibits discrimination by gender in educational institutions.

Human Resource Management

General Account

A margin account provided to a customer by a brokerage, in Federal Reserve Board terminology. Regulation T requires that all transactions involving credit given to the customer must be made in a general account.

Human Resource Management

General Agency Distribution System

A means of distribution that uses general insurance agents rather than branch offices to sell life and health insurance.

Human Resource Management

General Agent

One who is authorized by a principal to represent the principal in a specific range of matters.

Human Resource Management

General Asset Plan

A type of self-funding arrangement in which benefit claims from nonqualified plans are paid from current operating revenues. Supporting assets are commingled with the employer's other assets. Fiduciary standards and reporting and disclosure requirements apply.

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Generally Accepted Accounting Principles Accounting practices mandated by recognized rule-making authorities. (GAAP)

Human Resource Management

Geographic differentials

Pay differences established for the same job based on variations in costs of living or costs of labor among two or more geographical areas.

Human Resource Management

Geographic Salary Differentials

The percent difference between pay levels for an occupation in two or more geographic areas. Due to the demand for and supply of labor, an employee may be paid more or less depending on where she works. This makes setting branch-office salaries complicated, as they must be adjusted for the local labor market pricing (and in some cases the local cost of living). ERI's Geographic Assessor and Salary Assessor software aid in planning salaries for positions in multiple locations. See www.erieri.com.

Human Resource Management

GI Rider

Guaranteed Insurability Rider is an insurance policy in which the insurer is required to renew the policy for a specified amount of time regardless of changes to the health of the insured. The agreement requires that premiums are paid on time and that the insurer makes no changes except if a premium change is made for an entire class of policyholders.

Human Resource Management

Glass Ceiling Analysis

Refers to the analysis of how well (or poorly) women and minorities are doing at moving upwards in organizations. A Glass Ceiling Commission was authorized by law to study artificial barriers to the advancement of women and minorities in the workforce and to recommend means of overcoming such barriers.

Human Resource Management

Goal Setting

The process of setting and assigning a set of specific and attainable goals to be met by an individual, group or organization.

Human Resource Management

Golden Handcuffs

Rewards and penalties designed to discourage key employees from leaving a company.

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Golden Parachutes

A clause in an executive's employment contract specifying that he/she will receive large benefits in the event that the company is acquired and the executive's employment is terminated. These benefits can take the form of severance pay, a bonus, stock options, or a combination thereof.

Human Resource Management

Good faith bargaining

A duty under Section 4 of the Employment Relations Act 2000 to conduct negotiations where two parties meet and confer at reasonable times with open minds and the intention of reaching an agreement.

Human Resource Management

Good Practices

A document that is prepared during the formation of a corporation. It states the corporation's goals and objectives as well as what the corporation can do and cannot do to fulfill its goals.

Human Resource Management

Goodwill

Reputation for a product or service standard. A company's value over and above the physical property and accounts receivables.

Human Resource Management

Grace Period

A specified period after a premium payment is due, in which the policyholder may make such payment, and during which the protection of the policy continues.

Human Resource Management

Graded Premium A form of modified life insurance that provides for annual increases in premiums for a constant face amount of insurance Whole Life Insurance during a defined preliminary period, with the purpose of making initial payments more affordable.

Human Resource Management

Graded Vesting

A vesting schedule under which an employee is partially vested, typically 25%, after a certain number of years of service, with the vesting schedule increasing until full vesting is achieved.

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Grant Date

The date that a stock option term begins and the option become effective.

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Green Circle Rate

An individual rate that is below the minimum of the established pay range for a specific job or pay grade.

Human Resource Management

Grievance

A complaint brought by one party to an employment contract against another party.

Human Resource Management

Gross Income

Total income produced by a property before any expenses are deducted.

Human Resource Management

Gross Margin

With regard to an adjustable rate mortgage, an amount expressed as percentage points, stated in the note which is added to the current index value on the rate adjustment date to establish a new note rate.

Human Resource Management

Gross misconduct

An act committed by any personnel likely to lead to Summary Dismissal. Examples may be:

Human Resource Management

Gross Premium

The premium paid by the policyholder.

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Group Annuity

A pension program underwritten and administered by an insurance company. Normally uses the unit benefit method of funding. Plan participants are covered under one contract the employer pays premiums on their behalf.

Human Resource Management

Group Creditor Life Insurance

Life insurance issued to the creditor on the lives of debtors to pay the amount of the indebtedness in the event of death. Used frequently by lending and other financial institutions to eliminate problems of collection from a deceased's estate.

Human Resource Management

Group Deferred Annuity

A funding instrument wherein the insurance company, for a stipulated fee for each participant's benefit, will guarantee the purchase rates of the future annuity and will administer the plan.

Human Resource Management

Group dynamics

The social manner in which people interact with each other within a group.

Human Resource Management

Group Incentive

A material incentive provided to all members of a work group to reward the group's collective performance.

Human Resource Management

Group Insurance

Any insurance plan under which a number of employees and their dependents are insured under a single master policy, issued to their employer or to an association, with individual certificates given to each insured individual. The most commonly written lines are health life and accident.

Human Resource Management

Group Legal Services

It is a plan, which establishes a fund providing legal services for an employee or union, association or organization member as a fringe benefit.

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Group life insurance is part of an increasing number of workplace benefit packages. Most group life insurance policies offer term life coverage, but individual states in the U.S. usually insist that companies allow employees to change their life insurance policies from term to permanent when employees leave their jobs. The individuals then pay premiums to the insurer. Federal Group Life Insurance requirements for group life insurance include: (1) The policy must provide a general death benefit. (2) The policy must cover a "group of employees." (3) The policy must be carried directly or indirectly by the employer. (4) The amount of insurance must be computed under a formula precluding individual selection.

Human Resource Management

Group Life Insureds

In Canada, the persons who are insured by a group life insurance contract. Usually called 'insureds' in the United States.

Human Resource Management

Group Paid Up Insurance

A combination life insurance plan under which each employee's annual contribution is used as a single premium to buy a unit of paid-up insurance, while the employer's contribution is used to buy group term coverage. On termination of employment, the employee may take paid-up insurance or receive a refund of contributions or the cash surrender value of the paid-up insurance.

Human Resource Management

Group Permanent Insurance

A group insurance plan in which the whole life policy purchased provides death benefits to the employee's survivors in the event of premature death. Upon retirement, the cash value can be used to provide income to the employee.

Human Resource Management

Group Practice Model practice may work exclusively with the HMO, or it may provide services to non-HMO patients as well. The HMO pays the

Human Resource Management

Group Representative

An HMO that contracts with a single multispecialty medical group to provide care to the HMO's membership. The group medical group a negotiated, per capita rate, which the group distributes among its physicians, usually on a salaried basis.

An individual that represents an insurance company in the capacity of sales.

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Group RRSP (Registered Retirement Savings Plan)

A contractual arrangement registered under Section 146 of the Income Tax Act between an individual and an insurer, trust company or corporation authorized to accept payments from an individual or his her spouse for the purpose of providing a retirement income for that individual or his or her spouse by, upon maturation of the plan, purchase of a prescribed form of annuity or transfer of the plan assets to a registered retirement income fund (RRIF). Subject to prescribed maximums, such contributions made by a resident of Canada having earned income are deductible for income tax purposes.

Human Resource Management

Group Term Life Insurance

A plan qualifying under Code Section 79 to provide employees with employer-paid life insurance coverage at little or no tax cost.

Human Resource Management

Group Universal Life policyholder, which can be used to create nontaxable permanent insurance or to accumulate tax-deferred capital. Participation Plan is entirely voluntary and the employee pays all premiums.

Human Resource Management

Guarantee

The assumption of responsibility for payment of a debt or performance of some obligation if the liable party fails to perform to expectations.

Human Resource Management

Guaranteed Annual Wage (GAW)

A provision in a contract with an employer guaranteeing the employee a minimum income or work over a period of one year.

Human Resource Management

Guaranteed Income Supplement(GIS)

A nontaxable monthly benefit paid to lower-income OAS recipients on the basis of family income.

Human Resource Management

Guaranteed A rider now offered on most life insurance policies whereby additional insurance may be purchased at specified future times Insurability Rider (GI) without a medical examination or other evidence of insurability. Rates are based on attained age at time of purchase.

A form of group life insurance that combines term protection for designated beneficiaries with an investment element for the

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Guaranteed Investment Contract

A deposit arrangement entered into with an insurance company, which guarantees both the principal and interest repayments. It is a type of annuity contract, not a marketable security. The amount deposited can be a single sum or a stream of monies deposited over a specified and limited period of time. Similarly, the deposit plus the guaranteed interest paid thereon can be repaid in a single sum or installments. Expenses related to the contract arrangement can be charged against the guaranteed interest payments or paid separately by the contract holder.

Human Resource Management

Guaranteed Issue Insurance

The insurer will issue up to some stipulated amount of insurance for each individual employee without evidence of insurability. The requirements are usually based on size of group and distribution by ages, and individual insurers decide on amounts.

Human Resource Management

Guaranteed Renewable Policy

An insurance policy, which is guaranteed renewable provided premiums are paid. The policy conditions remain unchanged although the insurers may review premium rates.

Human Resource Management

All 50 states, the District of Columbia, and Puerto Rico require licensed insurers to assume some of an insolvent insurance company's policyholder liabilities. Guaranty associations are the mechanism by which solvent insurers bail out the Guaranty Association policyholders of companies that fails. The lines of insurance covered by guaranty associations and the maximum amount paid on any claim vary considerably from one state to another. In most states, two different guaranty associations cover life and health insurance lines and property/casualty lines.

Human Resource Management

Guide To Buying Life describes the types of life insurance available, so that prospects for life insurance can compare the advantages and Insurance disadvantages of each type of policy.

Human Resource Management

Guidelines Governing In Canada, Superintendents' Guidelines that regulate several aspects of group health insurance contracts, including the types Group Accident And of groups to which a group health insurance contract may be issued and the particulars that must be included in the certificate Sickness Insurance issued to each person insured by the contract.

Human Resource Management

Guidelines Governing In Canada, a set of guidelines issued by the Canadian Council of Insurance Regulators. The guidelines specify, among other Group Life Insurance things, the types of groups eligible for group life insurance.

In Canada, a written statement developed by the Canadian Life and Health Insurance Association (CLHIA). The guide

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Hardship Allowance

A payment made in recognition of 'different' conditions prevailing at the host location. Locations are assessed for their degree of hardship and the criteria may include isolation, special health risks, extremes of climate and political instability, for example. The allowance is usually expressed as percentage of base pay.

Human Resource Management

Hardship Distributions

A withdrawal of an employee's contributions to a 401(k) plan prior to retirement at age 55 or attainment of age 591/2. A hardship withdrawal may be made only in cases of financial emergency provided there are no other sources available to meet the need the withdrawal is taxable as an early distribution and subject to a 10% excise tax.

Human Resource Management

Hawthorne Effect

A term produced as a result of an experiment conducted by Elton Mayo whereby he concluded that expressing concern for employees and treating them in a manner which fulfills their basic human needs and wants will ultimately result in better performance.

Human Resource Management

Hazard

Danger or obstacle, the existence of which is sometimes tied to the reward system.

Human Resource Management

Hazardous Duty Pay

Work, which exposes the employee to a considerably greater risk than normal, working conditions. Pay is above normal rate tables due to the risk associated with each position and risks.

Human Resource Management

Head Hunter

A colloquial term for recruiters, employment agencies or executive search firms that broker human resources. Like real estate, stock brokers and sports agents, headhunters are in the middle of an employment sales transaction: they solicit customers (companies with job openings willing to pay a fee) and they seek talent (people with specific skills).

Human Resource Management

Headquarters Country

The country where the center of operations or administration of a particular employer.

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Health Care Benefits

In health insurance, policy benefits payable as a result of disability from covered sickness or accident. Sickness coverage is rarely written separately, unless the insured also carries an amount of accident insurance with the same company.

Human Resource Management

Health Care Financing Administration (HCFA)

The agency of the Department of Health and Human Services that, among other things, administers the Medicare program and works with the states to administer their Medicaid programs.

Human Resource Management

Health Care Reimbursement Account

Allows employees to set aside pretax funds for eligible health care benefits such as physical exams, vision care and dental care, including deductibles and co-payments. See also Flexible Spending Accounts (FSAs).

Human Resource Management

Health Insurance

Protection that provides payment of benefits for covered sickness or injury. Included under this heading are various types of insurance, such as accident insurance, disability income insurance, medical expense insurance, and accidental death and dismemberment insurance.

Human Resource Management

Health Insurance Portability And Accountability Act Of 1996 (HIPAA)

Federal legislation that improves access to health insurance when changing jobs by restricting certain preexisting condition limitations, and guarantees availability and renew ability of health insurance coverage for all employers regardless of claims experience or business size. The law also increases the health insurance deduction for the self-employed provides tax incentives for purchase of long-term care insurance, and establishes medical saving accounts (MSAs), which provide for taxdeductible contributions to accounts to cover medical expenses.

Human Resource Management

Health Maintenance Act (HMA)

The Health Maintenance Act was established to encourage the development of HMOs. It requires employers subject to minimum wage standards who employ 25 or more employees, as well as states and their political subdivisions, to include in a health benefit plan offered to employees the option of membership in a qualified health maintenance organization (HMO) if an HMO had made a request for such inclusion.

Human Resource Management

Health Maintenance Organization (HMO)

A prepaid medical group practice plan that provides a comprehensive predetermined medical care benefit package. The government, medical schools, hospitals, employers, labor unions, consumer groups, insurance companies, can sponsor the HMO and hospital-medical plans. HMOs are both insurers and providers of health care.

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Heirs Of ERISA Plans

The term is broadly applied to anyone who receives property from a deceased person's estate. The heir of the ERISA plan is deemed to be the beneficiary of the employee's retirement plan.

Human Resource Management

Hierarchy of needs

A psychology theory ascribed to Abraham H. Maslow in which he proposed that people will constantly seek to have their basic needs (sleep, food, water, shelter, etc.) fulfilled and that such needs ultimately determine behavior

Human Resource Management

Highly Compensated highest paid officer as an HCE, the top-100 rule, and family aggregation rules in both the HCE definition and the $150,000 Employees compensation cap. Discrimination in favor of this group is prohibited.

Human Resource Management

Highly Structured Questionnaires

An insurance policy in which the condition of the policy and the application constitute the agreement, in its entirety, between the policy owner and the insurer. Contrast with open contract.

Human Resource Management

Hiring Bonus

An extra sum of money provided at time of hire to entice an applicant to accept a job offer or to make up for compensation forfeited at the previous company.

Human Resource Management

Hiring rate

As a matter of wage policy, the beginning rate at which people typically are hired into a job.

Human Resource Management

History Statement

A physician's report on a particular health condition.

Either a 5% owner or a person who earned more than $80,000 during the current or preceding year. Repeals rule treating

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Hold Harmless Release

A statement indicating that the individual will reimburse the insurance company if the claim is ever challenged and deemed to be fraudulent.

Human Resource Management

Holidays

Days established by law or custom for which workers receive pay while absent from work. Law establishes statutory holidays. When the customary day tolls on a weekend a moveable holiday may be substituted for it on another day.

Human Resource Management

Home Country

The expatriate's normal country of employment.

Human Resource Management

Home Health Care

Skilled and semi-skilled part-time care received at home. May include nursing care, physical therapy, speech therapy and/or such custodial services as cooking, cleaning and washing.

Human Resource Management

Home Leave

Company funded return airfares, which allow an expatriate to return to his home country for holiday/vacation purposes.

Human Resource Management

Home Sale Protection

This is a feature provided for expatriates that are selling their home for a foreign assignment. It will pay all the costs associated for selling a home and relocation, except for capital gains.

Human Resource Management

honor

A state of being or state of character, that people possess by living up to the complex set of all the values that make up the public moral code. Honor includes: integrity, courage, loyalty, respect, selfless-service, and duty. Honor demands adherence to a public moral code, not protection of a reputation.

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hoshin planning

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Hospital Confinement A form of health insurance that provides a stipulated daily, weekly or monthly indemnity during hospital confinement. The indemnity is payable on an unallocated basis without regard to the actual expense of hospital confinement. Insurance

Human Resource Management

Hospital Expense Insurance

A health insurance policy that covers daily hospital room and board charges and some miscellaneous hospital expenses.

Human Resource Management

Hospital Indemnity Insurance

A form of health insurance that provides a stipulated daily, weekly or monthly indemnity during hospital confinement. The indemnity is payable on an unallocated basis without regard to the actual expense of hospital confinement.

Human Resource Management

Hospital Surgical Expense Insurance

Medical expense health insurance that combines basic hospital coverage and basic surgical coverage into one policy.

Human Resource Management

Hospitals

A legally constituted institution having organized facilities for the care and treatment of sick and injured persons on a resident or inpatient basis, including facilities for diagnosis and surgery under the supervision of a staff of one or more licensed physicians and which provides 24-hour nursing services by a registered nurse on duty or call. It does not mean convalescent, nursing, rest or extended care facilities or a facility operated exclusively for the treatment of the aged, drug addict or alcoholic, whether or not such facilities are operated as a separate institution by a hospital.

Human Resource Management

Host Country

A nation in which representatives or organizations of another state are present because of government invitation and/or international agreement.

A Japanese strategic panning process in which a company develops up to four vision statements that indicate where the company should be in the next five years. Goals and plans are developed based on the vision statements. Audits are conducted periodically to monitor progress.

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Hour Of Service

For purposes of retirement plans, an hour for which an employee is directly or indirectly paid by the employer for the performance of duties. An hour of overtime is still counted as only an hour of service, even though the pay for overtime may be higher. Hours during a leave of absence or a vacation with pay are counted.

Human Resource Management

Hourly rate

The rate of pay per hour for a job being performed. An ―hourly‖ worker may be assigned to various rated jobs during any pay period and is paid the ―rate‖ applicable to each job while working on it.

Human Resource Management

Hours Of Work

Standard hours worked in a year is 2,080 (52 weeks x 40 hours per week).

Human Resource Management

Housing Allowance

An amount paid by the company, either to the expatriate or direct to the property landlord, to enable the expatriate to rent or lease housing in the host country.

Human Resource Management

Housing Norm

The portion of the base salary typically spent in the home country on housing. The norm may vary depending on family status and salary level.

Human Resource Management

HR Audit

A method by which human resources effectiveness can be assessed. Can be carried out internally or HR audit systems are available.

HRM

Human Resource Management (HRM) is both an academic theory and a business practice. It is based on the notion that employees are firstly human, and secondly should NOT be treated as a basic business resource. HRM is also seen as an understanding of the human aspect of a company and its strategic importance. HRM is seen as moving on from a simple "personnel" approach (or was supposed to) because it is preventative of potential problems, and secondly it should be a major aspect of the company philosophy, in which all managers and employees are champions of HRM-based policies and philosophy.

Human Resource Management

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HTML

An acronym for Hypertext Markup Language, HTML is the computer language used to create hypertext documents. HTML uses a finite list of tags that describe the general structure of various kinds of documents linked together on the World Wide Web.

Human Resource Management

Human Capital

The collective knowledge, skills and abilities of an organization‘s employees.

Human Resource Management

human nature

The common qualities of all human beings.

Human Resource Management

Human Resources

William R. Tracey, in The Human Resources Glossary defines Human Resources as: ―The people that staff and operate an organization … as contrasted with the financial and material resources of an organization. The organizational function that deals with the people ...‖

Human Resource Management

Hurdle Rate

The required return in capital budgeting. For example, if a project has an expected rate of return higher than the hurdle rate, the project may be accepted.

Human Resource Management

Hypothetical Tax

The approximate amount of tax, calculated on home country base salary and bonus, where applicable, that the expatriate would have paid if he/she had remained in the home country.

Human Resource Management

IBNR (Incurred But Not Reported)

Claims that have been incurred but have not been reported to the insurer as of some specific date. Often a disputed figure since carriers must estimate this liability for accounting purposes based on their experience with claims lags.

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Identifying The Customer

Understanding who the prospect is and the cycle of the sales process.

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Illness Perils

A systematic classification method to classify the type and degree of a peril, for a specific industry, to a specific occupation. An insurance company does the system of classification.

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Immediate Annuity

An annuity under which income payments begin one annuity period (e.g., one month or one year) after the annuity is purchased.

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Immediate Participation Guarantee Contract (IPG)

A group insurance contract under which the employer's unallocated account is credited with its share of actual investment income for the year. There is generally no guarantee of principal or a minimum rate of interest. Annuity payments are charged directly against the account as they are paid.

Human Resource Management

Immigration Prevailing Wage Rates

A special set of definitions exist for determining the competitive rate of pay that should be paid to immigrants who hold temporary work permits in the United States. These rules are spelled out in General Administrative Letter 2-98.

Human Resource Management

Impairment

The amount by which stated capital is reduced by distributions and losses.

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Impairment Rider

A rider attached to a health insurance contract that waives the insurance company's liability for all future claims on a preexisting condition.

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Implied Authority

Authority that, while not specifically granted to the agent in the agency agreement, the agent can assume he or she has through common sense. Authority that is apparently necessary for an agent's ability to carry out day-to-day or routine responsibilities.

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Improshare

Cost-saving group incentive plan in which a standard cost of production is established and the employees share in the cash savings of production costs under that amount. Improshare stands for improved productivity through sharing.

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improving

A focus on sustaining and renewing the development of individuals and the organization (with a time horizon from months to decades) that requires a need for experimentation and innovation with results that are difficult to quantify. Usually it entails longterm, complex outcomes.

Human Resource Management

Incentive (pay plans) the beginning of the performance cycle. The plans can be individual, group, companywide, or a combination of any. Incentive

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Incentive Compensation

Rewarding the performance of an individual in an institution with added compensation, typically in the form of bonuses or percentage increments above the base salary.

Human Resource Management

Incentive pay

Additional compensation used to motivate and to reward employees for exceeding performance or productivity goals.

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Incentive Stock Option (ISO)

Gives an employee a right to purchase company stock usually at a bargain price.

Pay plans designed to reward the accomplishment of specific results. Awards are usually tied to expected results identified at plans are ―forward‖ looking; bonus plans look ―backward.‖

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Incident Of Ownership

Rights that will result in the inclusion of life insurance policy proceeds in the policyholder's estate for federal estate tax purposes.

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Income Protection Insurance Policy

A disability income policy, which specifies that an insured be disabled if he or she suffers an income loss caused by a disability, therefore qualifying him or her for benefits under the policy.

Human Resource Management

Income Replacement A residual or partial disability benefit that is to be paid upon satisfaction of the company's elimination period, and the employee experiences another loss of earnings due to a previous partial or total disability. Benefit

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Income Replacement The amount of gross income that is replaced by the retirement plan. Ratio

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Income Statement

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Incontestable Clause A clause that provides that the insurer may not contest the validity of the contract after it has been in force for a period of years.

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Increasing Term Insurance

A detailed summary of the income and expenses of a business over a period of time (usually quarterly, semiannually or annually) showing the net income or loss incurred.

Term life insurance coverage that increases in face value each year (or certain period) from the date of policy issue to the date of expiration.

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Incumbent

Holding an indicated position, role, office, etc., currently.

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Indemnification

The compensation to the victim of a loss, in whole or in part, by payment, repair, or replacement.

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Indemnity

A benefit paid by an insurer for a loss insured under a policy.

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Independent contractor

A person who works for him/herself but has a contract for services with another person/organization.

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This test considers the return on investment indicated by the increase in the value of a corporation‘s stock along with dividends paid during the time period in question. It looks at the company‘s performance throughout the year to determine if the Independent Investor compensation to key employees is reasonable. Basically, an ―independent‖ investor should be happy with the return on his/her Test investment and not object to the compensation paid to key employees. The rate of return must be high enough to warrant their pay.

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Independent Life Brokers

An insurance solicitor, licensed by the state, who places business with a variety of insurance companies and who represents the buyers of insurance rather than the companies even though he or she is paid commissions by the companies.

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Independent Physicians Association (IPA)

A type of managed care organization composed of a group of independent physicians who have formed an association as a separate legal entity for contracting purposes. IPA physician providers retain their individual practices, work in separate offices, continue to see their non-managed care patients and have the option to contract directly with managed care plans.

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Independent Property and not being an agent of the insurer, solicits, negotiates, or procures insurance or reinsurance or the renewal or continuance / Casualty Broker thereof, or in any manner aids therein, for insureds or prospective insureds other than him.

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Independent Variable A variable in a functional relation whose value determines the value or values of other variables, as x in the relation y = 3x2.

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Indeterminate Premium Life Insurance

A type of nonparticipating whole life insurance that allows premium rate modifications throughout the life of the policy and guarantees that the premium rate will never exceed a stated maximum rate.

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Indexation

Modifying contracts so that their dollar terms adjust to the inflation rate as measured in an index, such as the consumer price index.

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Indexed Options

An option based on the market value of a particular group of stocks. Unlike stock options, index options--when exercised--are settled in cash.

Indexing

A statistical model expressed in terms of percentages of a base year or years that serves as a reference in judging investment performance. The index most often used for stock market performance is the Standard & Poor's 500 Index, which measures the average performance of 500 widely held common stocks. Other frequently used indexes are the Dow Jones Industrial Average, the NASDAQ and the Russell 2000, used for smaller company stocks, the Toronto Stock Exchange 300 Composite Index (TSE 300), used in Canada, and the Morgan Stanley Capital International Europe, Australia, Far East Index (EAFE), which is used as a benchmark for foreign company stocks.

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A Broker is any person who, on behalf of the insured, for compensation as an independent contractor, for commission, or fee,

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Indirect Labor

Workforce not directly engaged in the manufacture of a product line.

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Indirect pay:

All forms of nondirect (i.e., noncash) compensation made to employees in exchange for their contribution to an organization.

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Individual Account Plan

A defined contribution plan or profit-sharing plan that provides an individual account for each participant, allows participants to choose, from a broad range of investment options, how their accounts will be invested, and whose benefits are based solely on the amount contributed to the participant's account, including income, expenses, gains and losses. Defined contribution retirement plans such, as 401(k) plans are examples of individual account plans.

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Individual Contract Pension Plan

A type of pension plan, frequently used for small groups, administered by trustees who are authorized to purchase individual level premium policies or annuity contracts for each member of the plan. The polices usually provide both life insurance and retirement benefits.

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Individual employment agreement

The legal relationship between an employee and employer. See Part 6 of the Employment Relations Act 2000

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Individual Insurance

An individual life or health insurance policy purchased on an individual basis (as distinct from group and blanket insurance.) Sometimes called personal insurance.

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Individual Pay Rate

A pay level assigned to an individual or to a particular position.

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Individual Practice Association

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Individuals, whether they are covered by a pension or not, are now permitted to save money on a tax-deferred basis in a qualified IRA plan. Although money can be withdrawn, a 10% penalty has been placed on those assets withdrawn prior to the Individual Retirement individual turning 59 1/2, in addition to the normal taxes, which must be paid upon withdrawal. An individual can set up his own plan with a bank, insurance company, brokerage house or mutual fund. A company can also deduct an agreed-upon amount Account from employees' paychecks and send it along to a designated agent, or set up its own plan where managers are selected to manage the assets.

Human Resource Management

Individuals, whether they are covered by a pension or not, are now permitted to save money on a tax-deferred basis in a qualified IRA plan. Although money can be withdrawn, a 10% penalty has been placed on those assets withdrawn prior to the Individual Retirement individual turning 59 1/2, in addition to the normal taxes, which must be paid upon withdrawal. An individual can set up his own plan with a bank, insurance company, brokerage house or mutual fund. A company can also deduct an agreed-upon amount Account (IRA) from employees' paychecks and send it along to a designated agent, or set up its own plan where managers are selected to manage the assets.

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Induction

The process of introducing a new employee into the organization.

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Industrial Insurance

Life insurance issued in small amounts, usually less than $1,000, with premiums payable on a weekly or monthly basis.

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Industrial relations

The study of theories and practices in the workplace relationship.

A type of managed care organization composed of a group of independent physicians who have formed an association as a separate legal entity for contracting purposes. IPA physician providers retain their individual practices, work in separate offices, continue to see their nonmanaged care patients and have the option to contract directly with managed care plans.

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Industry Wage Surveys

Surveys conducted and collected by a variety of sources to provide wage information for a wide variety of industries.

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Inferential Statistics

That branch of statistics dealing with procedures used to make inferences about a population from information contained in a sample.

Human Resource Management

Inflation

A phase of the business cycle characterized by abnormally high prices, a decrease in the purchasing power of money, and spiraling costs and wage rates. Inflation may occur when purchasing power is in excess of goods and services for sale, and/or buyers stampede to convert money into commodities or when production costs and prices advance to consecutively higher levels.

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influencing

The key feature of leadership, performed through communicating, decision making, and motivating.

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Initial Deductible

Several definitions: 1) Amount of expenses which the insured party must pay before receiving any benefits from the insurance company. (2) An item or expense which is taken away from an individual's gross income in order to reduce the amount of taxable income (e.g. mortgage interest, state taxes, business expenses which are not reimbursed and charitable contributions). See also calendar year deductible, corridor deductible, family deductible, integrated deductible and per cause deductible.

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Initial Premium

In life and health insurance, the first premium, generally payable with the application or upon delivery of the policy. In group insurance, especially health, an amount paid at the inception of an insurance contract that permits adjustments to be made based upon future experience.

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Initial Public Offering The original sale of a company's securities to the public.

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Initial Reserve

In life insurance, the reserve amount determined at the beginning of the policy year. It equals the preceding year's terminal reserve, plus the annual net premium.

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Inside Build Up

In terms of life insurance policy, this is the amount of money, before adjustments are made for factors such as policy loans or late premiums, that the policy owner will receive if the policy owner allows the policy to lapse or cancels it and surrenders the policy to the insurance company. Cash values are a feature of most types of permanent life insurance. Compare to cash surrender value. Also known as inside build-up and policy owner's equity.

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Inside Director

A member of a company's board of directors who is also an employee of the company.

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Inside Payroll Costs

Payroll costs that are not separated out.

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Insider

A stockholder who owns 10% or more of a company, a member of the board of directors or an elected officer of a corporation, or anyone else who possesses information that is not publicly known about the company, but which is important in valuing its stock. Securities and Exchange Commission (SEC) regulations place restrictions on stock purchases and sales by insiders.

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Insiders

Section 16 of the SEC regulations identifies 'insiders' as those precluded from profiting, unfairly from the sale and or purchase of company stock.

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Insolvency Clause

In reinsurance, a clause that holds the reinsurer liable for its share of loss assumed under the treaty, even though the primary insurer is insolvent.

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Inspection Receipt

In life and health insurance, a receipt obtained from an applicant when a policy (upon which the first premium has not been paid) is left with him or her for further inspection. It states that the insurance is not in effect and that the policy has been delivered for inspection only.

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Installation

The act of installing or condition of being installed.

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Installment Certificate A certificate given to the beneficiary of an insurance policy stating the benefit payment information.

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Installment Refund Option

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Insurability An insurance company offer that provides for insuring an applicant if he/she were to die before their application and premium Conditional Premium reached the Home office. Receipt

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Insurability Provision

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Insurability Statement A statement ascertaining if there have been changes in insurability between the time of application and policy issue.

An insurance option that states if any proceeds from a policy remain after the beneficiary's death, they will be paid to the contingent payee in a series of installments.

An insurance provision stating that the policy will not become effective unless the insured is still considered insurable at the time of delivery.

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Insurability Type An agreement that provides temporary insurance for a short period of time, such as during the period in which regular Temporary Insurance insurance is being written. Agreement

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Insurable Interest

A person's or party's interest--financial or emotional--in the continuing life of an individual, a person or party must have an insurable interest in the life of a proposed insured in order to purchase an insurance policy on the proposed insured's life.

Human Resource Management

Insurance

A means of providing or purchasing protection against some of the economic consequences of loss. Risk of loss is transferred to a third party in exchange for a 'consideration' or premium. This exchange creates an insurance contract.

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Insurance Act

This Act, except as provided, applies to every insurer that carries on any business of insurance in British Columbia and to every contract of insurance made or deemed made in British Columbia.

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Insurance Agent

A sales representative of an insurance company.

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Insurance Coverage

Generally refers to the amount of protection available and the kind of loss which would be paid for under an insurance contract with an insurer.

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Insurance Network

An HMO model that contracts with multiple physician groups to provide services to HMO members, may involve large single and multispecialty groups.

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Insurance Regulatory Formerly known as Early Warning System or Early Warning Tests, financial ratio and performance criteria designed by the Information System National Association of Insurance Commissioners to identify insurance companies, which may need close surveillance by state insurance departments. (IRIS)

Human Resource Management

Insured Plan

A pension plan in which the benefits are at least partially insured by an insurance company. Such plans provide a death benefit to beneficiaries if the employee dies before retirement.

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Insurer

The insurance company or party that provides the insurance policy.

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Insurer Administered A group insurance plan in which the insurer handles all administrative work. Organization Insurance Plan

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Intangible rewards

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Integrated Deductible A deductible that can be satisfied by payments in another portion of the plan.

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Integrated Dental Plan

Non-monetary re-enforcers such as praise given to an employee in recognition of a job well done, or a particular achievement.

A major medical plan that has a dental plan as part of their features.

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Integrated Pension Plan

A pension plan that is integrated with Social Security retirement benefits.

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integrity

A moral virtue that encompasses the sum total of a person's set of values and moral code. A breach of any of these values will damage the integrity of the individual. Integrity, comes from the same Latin root (integritas) as the word "integer," refers to a notion of completeness, wholeness, and uniqueness. Integrity also entails the consistent adherence of action to one's personal moral beliefs.

Human Resource Management

Intensive Care Units

The specialized center in a hospital where intensive care is provided.

Human Resource Management

Intercept

The x-intercept, or y-intercept, or z-intercept, etc., a point where a curve crosses the x-axis, or crosses the y-axis, or crosses the z-axis, etc. EX. A linear equation when graphed has at most one x-intercept.

Human Resource Management

Interest Adjusted Cost

In life insurance, a method of comparing costs of similar policies by using an index that takes into account the time value of money due at different times through interest adjustments to the annual premiums, dividends and cash value increases at an assumed interest rate.

Human Resource Management

Interest Option

In life insurance, a settlement option under which all or part of the proceeds of a policy are left with the insurance company for a definite period at a guaranteed minimum rate of interest. The principal remains with the company for a specified period of time. Interest may be paid (usually subject to certain minimums) annually, semiannually, quarterly or monthly # or, in some cases, may be added to the proceeds.

Human Resource Management

Interest Rate

That percentage of a principal sum earned from investment or charged upon a loan.

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Internal Equity

Refers to the pay relationships among jobs.

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Internal Revenue Code (IRC)

The federal agency responsible for administering and enforcing the Treasury Department's revenue laws, through the assessment and collection of taxes, determination of pension plan qualification, and related activities. See also 1099, 401(k) plan, amended return, audit, backup withholding, deficiency, determination letter, imputed interest, itemized deduction, over-55 home sale exemption, revenue ruling, standard mileage rate, wash sale rule.

Human Resource Management

Internet

Short for Internet work. A network of networks, a group of networks interconnected via routers. Contrast with The Internet (with a capital I), the world's largest Internet.

Human Resource Management

Interpleader

The procedure when two parties are involved in a lawsuit over the right to collect a debt from a third party, who admits the money is owed but does not know which person to pay. The debtor deposits the funds with the court ('interpleads'), asks the court to dismiss him/her/it from the lawsuit and lets the claimants fight over it in court.

Human Resource Management

Interquartile Range

Statistics. The range including the central 50% of the observations in a data set.

Human Resource Management

Interview

There are screening interviews and hiring or selection interviews. Screening interviews qualify a candidate before he meets with a hiring authority for possible selection. Hiring interviews allow the employer to assess the fit of the candidate. The candidate also interviews the employer for job suitability. Most of these interviews take place in an office setting one-on-one or in a small group.

Human Resource Management

Intrinsic Motivation

An incentive that originates from the behavior itself rather than from an external reward or reinforcement. Thus, intrinsically motivated behavior.

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Intrinsic rewards

Rewards that are associated with the job itself, such as the opportunity to perform meaningful work, complete cycles of work, see finished products, experience variety, and receive feedback on work results.

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Invention, imagination, originality, or talent

Distinguishes from work that primarily depends on intelligence, diligence, and accuracy.

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Investigative Consumer Report

A special type of credit report, which contains more detail than a routine credit report. For example, it includes information regarding a consumer's character, general reputation, and personal characteristics.

Human Resource Management

Investment Companies

A company or trust managed by investment professionals that invests its capital in other companies for purposes of diversification, the two principal types of which are the closed-end and open-end or mutual fund. Closed-end funds have a fixed capitalization, and are usually listed and traded on the New York Stock Exchange like any other security, and may sell at a premium or discount to net asset value. Open-end funds whose shares are not listed stand ready to sell new shares continuously to investors and to redeem them when called upon to do so.

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Investment Managers

Long-term, risk-return targets developed principally from careful consideration of plan sponsor factors, investment factors and a forecast of the future. Critical in the adoption of investment objectives is the asset allocation decision.

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Investment Sensitive A form of life insurance (also called Universal Life II or flexible life) offering a guaranteed death benefit that combines the flexible premium features of universal life with the investment component of variable life. Insurance

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Investment Year Method (IYM)

Any dividend calculation method that recognizes differences in earned interest rates depending upon the year in which the investment is made.

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Involuntary Plan Termination

The termination of a pension plan by a party other than the plan sponsor, generally a governmental organization.

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Irrevocable Beneficiary

An unalterable beneficiary. The owner gives up the right to change the beneficiary designation without the beneficiary's consent.

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ISO 9000

Developed by the International organization for Standardization (ISO), it is a set of standards for quality management systems that is accepted around the world. organizations that conform to these standards can receive ISO 9000 certification. The standard intended for quality management system assessment and registration is ISO 9001. The standards apply uniformly to organizations of any size or description.

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Issuing Bank

A bank that opens a straight or a negotiable letter of credit. This bank assumes the obligation to pay the beneficiary or a correspondent bank if the documents presented are in accordance with the terms of the letters of Edit.

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Job

The total collection of tasks, duties, and responsibilities assigned to one or more positions which require work of the same nature and level.

Human Resource Management

Job Analysis

The systematic, formal study of the duties and responsibilities that comprise job content. The process seeks to obtain important and relevant information about the nature and level of the work performed and the specifications required for an incumbent to perform the job at a competent level.

Human Resource Management

Job and Compensation Analyst (JCA)

ERIâ&#x20AC;&#x2DC;s compensation and benefits accreditaton program. A JCA credential is granted only to those compensation specialists who have proven their mastery of analytical and quantitative skills by taking 50 ERI courses within a 12-month period and answering all exam questions with 100% accuracy. This will successfully illustrate mastery of over two dozen different types of mathematical skills and calculations and a thousand compensation and benefit concepts.

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Job Description

A written description of a job which includes information regarding the general nature of the work to be performed, specific responsibilities and duties, and the employee characteristics required to perform the job.

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Job Documentation

Physical evidence, such as a written contract, which explains the responsibilities, rights, and duties of each party.

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Job Duty

Something that you have to do because it is part of your job.

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Job Enlargement

The act of increasing in size or volume or quantity or scope.

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Job Enrichment

Act of making fuller or more meaningful or rewarding.

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Job Entry Requirements / Job Qualifications / Job Requirements

The education, experience, and performance requirements for entry into a job. ERI software only reports salaries of properly qualified and duly licensed practitioners in all occupations. This ERI salary data shows ranges for the very least qualified to the very most qualified job-holders.

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Job evaluation

Used for compensation planning purposes, it is the process of comparing a job with other jobs in an organization to determine an appropriate pay rate for the job.

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Job Evaluation Committee

The committee that conducts the job evaluations.

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Job Family

A group of jobs having the same nature of work (e.g., engineering) but requiring different levels of skill, effort, responsibility, or working conditions (e.g., entry-level vs. senior engineer).

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Job Grade

One of the classes, levels or groups into which jobs of the same or similar value are grouped for compensation purposes. Usually, all jobs in a grade have the same pay range. However, sometimes different jobs in the same pay grade have different pay ranges, due to market conditions for some of the jobs.

Human Resource Management

Job interview

A job interview is a process in which a potential employee is evaluated by an employer for prospective employment in their firm.

Human Resource Management

Job Offer Letter

A job offer letter is a document that confirms the details of an offer of employment. The job offer letter includes details such as job description, reporting relationship, salary, bonus potential, benefits, and more. The job offer letter generally confirms the terms.

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Job Responsibility

Ability or necessity to answer for or be responsible for one's conduct.

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Job Satisfaction

The contentment you feel when you have done something right.

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Job Sharing

Two people, typically in career-oriented professional positions, performing the tasks of one full-time position in order to enjoy more flexibility in their personal schedules, typically for child or dependent care. Salary and benefits are prorated.

Human Resource Management

Job Specifications

A section of the job description that defines what worker characteristics (i.e., the knowledge, skills and abilities) are required to perform the job for it to be carried out competently. These characteristics must be bona fide occupational qualifications (BFOQs).

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Job Title

A summary for all the duties for a particular job or position.

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Job Worth Hierarchy

The perceived value of jobs in relationship to each other within an organization. The job worth hierarchy forms the basis for grouping similar jobs together and establishing salary ranges.

Human Resource Management

Joint And Survivor Annuities

An annuity that pays an income jointly to two individuals. Upon the death of one, the same income continues to the survivor for life. When the survivor dies, payments stop.

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Joint And Survivor Option

Provides a continued payment to your spouse in the event you die prior to your spouse's death after you retire.

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Joint Credit Life Insurance

Is offered to cover the cost of repaying loan obligations in the event of your death.

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Joint Venture

An association formed for a specific purpose and duration between two or more parties to own and/or develop real estate. A joint venture may take a variety of legal forms including partnership, tenancy in common or corporation.

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Joint Whole Life Insurance

A life insurance contract that covers two or more lives and provides for the payment of the proceeds at the death of the first insured, at which time the policy automatically terminates, with no remaining coverage for the survivors.

Human Resource Management

Junk Bonds

Bonds that are initially issued as low-quality securities, often in conjunction with takeovers, leveraged buyouts and restructurings. They offer high interest and high risk. These securities generally lack the characteristics of a desirable investment. The rights of the bondholder are subordinated to senior debt holders. Assurance of interest and principal payments in the future is limited. Repayment often depends on asset sales rather than on the ongoing profitability of the business.

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Junk Science

A scientific opinion or testimony that is irrelevant and unreliable.

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Juvenile Insurance Policy

An insurance policy that is issued on the life of a child but is owned and paid for by an adult.

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kaizen

The Japanese term for improvement. It involves both workers and managers.

Human Resource Management

Keogh Act

The Self-Employed Individuals Tax Retirement Act of 1962 (also called HR-10 or the Keogh Act), and its subsequent amendments, made it possible for owner-employees of unincorporated businesses and other self-employed persons to be covered under qualified retirement plans.

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Keogh Plan

A tax deferred pension account available to the self-employed. (4)

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Key Contributor Insurance

A qualified tax-deductible pension or profit-sharing retirement plan for self-employed individuals and their employees, with contribution units based on net earnings. Disability, health, and/or life insurance policies designed to protect the company for the loss of the services of essential employees, with premiums paid and benefits received by the company, key man insurance. A type of corporate-owned life insurance purchased by a company to protect itself from financial loss.

Human Resource Management

Key Employee

A salaried employee who is among the highest paid 10 percent of all the employees employed by the employer.

Human Resource Management

Kilobits Per Second (Kbps)

Thousand bits per second. A data transfer rate.

Human Resource Management

Kilobyte(Kb)

One thousand bytes (103) or 1024 (210) bytes. A unit of measurement used for computer file sizes.

Human Resource Management

Knowledge Based Pay

Pay-for-knowledge rewards employees for increasing the depth and breadth of knowledge and skill and the utilization of those skills. Pay-for-knowledge is often an extension of work redesign efforts.

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Knowledge Management

Knowledge management is the name of a concept in which an enterprise consciously and comprehensively gathers, organizes, shares, and analyzes its knowledge in terms of resources, documents, and people skills.

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Knowledge Management System A distributed system from Knowledge Systems, Inc. for managing knowledge in organizations. (KMS)

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Knowledge, Skills New hires and merit promotions are made on the basis of how applicants measure up to a set of factors, often called And Abilities (KSAS) 'Knowledge, Skills, and Abilities' (KSAs) or 'Knowledge, Skills, Abilities and Other Characteristics (KSAOs).'

Human Resource Management

Knowledge-based pay

A system of salary differentiation based on the formal education, related experience or specialized training a professional employee has that qualifies the individual to deal with specific subject matter, or work effectively in a specific field. Salary level may not be dependent on whether the incumbent utilizes the knowledge.

Human Resource Management

KPI‘s

‗Knowledge, Skills and Abilities‘ - Key Performance Indicators. Tasks that have been agreed between an employee and line manager/HR with an expectation that they will be completed satisfactorily in the time agreed or as an ongoing task.

Human Resource Management

KSA (Knowledge, skills, and abilities)

Common job specifications. Knowledge refers to acquired information necessary to do the job (e.g., principles of nuclear physics). Skills refer to acquired measurable behaviors (e.g., autoclave operation). Abilities refers to natural talents or acquired dexterity (e.g., capacity to lift 200 pounds).

Human Resource Management

Labor Demand

The highest wage an employer is willing to pay for a given level of employment or number of employees.

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Labor force participation

A rate at which the number of people in the labor force is divided by the number of people of working age x 100.

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Labor Grade

Salary classification to a specific job title.

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Labor Market

A place where labor is exchanged for wages. These places are identified and defined by a combination of the following factors: (1) geography (i.e., local, regional, national, international), (2) industry, (3) education, licensing or certification and (4) function or occupation.

Human Resource Management

Laissez Faire Tax Policy

A policy to cut taxes.

Human Resource Management

Last In, First Out (LIFO)

Used in inventory accounting terminology to reflect the fact that sales are made against the latest inventory purchases, which tends to minimize inventory profits and losses. Contrast with First In, First Out (FIFO).

Human Resource Management

Lead Lag Structure Policy

The practice of setting salary structures at the beginning of the year, to what the competition would reach at the middle of the year. This is based on competitive information and market research.

Human Resource Management

Lead Structure Policy

The practice of setting salary structures at the beginning of the year- for the entire year. This is based on competitive information and market research.

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leadership

The process of influencing people while operating to meet organizational requirements and improving the organization through change.

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Leadership Development

Formal and informal training and professional development programs designed for all management and executive level employees to assist them in developing the leadership skills and styles required to deal with a variety of situations.

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learning

An essential shift or progress of the mind where recreation is evident and enjoins activities such as re-engineering, envisioning, changing, adapting, moving into, and creating the future.

Human Resource Management

learning curve

A curve reflecting the rate of improvement in performing a new task as a learner practices and uses her newly acquired skills.

Human Resource Management

Learning Management System A software system that automates the administration of training events. (LMS)

Human Resource Management

Learning Service Provider (LSP)

Training delivery software on a hosted or rental basis through a specialized ASP offering learning management.

Human Resource Management

Leased Employees

A three-party relationship whereby the user business purchases services of a worker, on a more or less full-time basis, from a business that pays the worker's salary. Any interrelationship between these parties can lead to an affiliated service group relationship, which is treated separately.

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Least Squares Line

Actual y- values. A line fitted to the points that minimize the sum of the squared deviations of the points. This occurs in regression analysis.

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Legislation

Law emanating from Parliament in the form of Acts.

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Level Annual Premium Funding Method

The cost of providing a pension where the contributions for any employee remain constant until normal retirement age.

Human Resource Management

Level Cutters

Phrases or words used to distinguish the variety of levels in a particular employment arena. (i.e. accounting, senior vs. junior accountant)

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Level Of Work

Important information about the content of a job. It will include skill effort, responsibility and working conditions. (9)

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Leverage In Financing

A debt to equity ratio is a measure of the entity's leverage.

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Leveraged Employee need not be dependent on profits, and benefits are distributable in the stock of the employer corporation. Typically, the ESOP is used as a financing vehicle for the employer corporation. The plan borrows money from the employer or uses the employer's Stock Ownership credit, and purchases employer stock. The borrowed money is paid to the employer for its stock. The loan is repaid with annual Plan (LESOP)

A qualified stock bonus plan or a qualified stock bonus and money purchase plan. Like a stock bonus plan, the contributions

employer contributions. See also Stock Bonus Plan.

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Leveraged Stock Option

An option in which the underlying is the common stock of a corporation. The Company matches a multiple of the stock options at the employee's purchase price.

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Liabilities

A financial obligation, or the cash outlay that must be made at a specific time to satisfy the contractual terms of such an obligation.

Human Resource Management

Liability Insurance

A type of insurance that provides a benefit payable on behalf of a covered party who is held legally responsible (liable) for harming others or their property.

Human Resource Management

Licensed Broker

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Lien

The right to take and hold or to sell a debtor's property as security or payment for a debt..

Human Resource Management

Life Annuity

An annuity payable during one's life.

Human Resource Management

Life Annuity With Period Certain

An annuity payable during one's life. If the insured dies before the designated period of time, the payments will continue to a contingent payee.

Life Cycle Pension Plan

A defined benefit plan that expresses benefits as a lump-sum benefit rather than as an annuity. There are no account balances for the plan participants. In addition, this plan recognizes final average salary in the benefit calculation. Under the life cycle plan, a participant earns credits for each year of service. Age is not directly a factor, except as it pertains to how much service an individual could accrue. The total of these credits is considered a percentage, which is multiplied by the annual final average salary of the participant to determine what lump sum will be paid at retirement. Also known as retirement bonus plan and lumpsum plan.

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Life Income Option

A life insurance settlement option that guarantees the beneficiary a payout of equal payments as long as the beneficiary lives.

Human Resource Management

Life Income Option With Period Certain

A life insurance settlement option that guarantees the beneficiary designated equal payments for a specified period of time. Then the beneficiary will continue to pay out the life insurance as long as the beneficiary lives. If the beneficiary dies during the specified period of time, payment will be continued during the rest of the specified time to another recipient designated by the original beneficiary.

Human Resource Management

Life Income Option With Refund

A life insurance settlement option that guarantees a total amount due to the beneficiary. If the beneficiary dies prior to the total pay out amount, the remaining amount will be given to a contingent payee.

Human Resource Management

Life Income With Period Certain Annuity

An annuity payable during one's life. If the insured dies before the designated period of time, the payments will continue to a contingent payee.

Human Resource Management

Life Insurance

The act or system of insuring against death, a contract by which the insurer undertakes, in consideration of the payment of a premium (usually at stated periods), to pay a stipulated sum in the event of the death of the insured or of a third person in whose life the insured has an interest.

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Life Insured

Canadian term for a person whose life is insured by an insurance company.

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Life Underwriter

A sales representative of an insurance company.

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Life-Only Annuity

Payment of an annuity, until the death of the annuitant.

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Lifetime Maximum

The maximum amount of eligible medical expenses that the medical policy will pay for. This is during the lifetime of the insured.

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LIFO

In the event of a redundancy situation occurring, the system of â&#x20AC;&#x2014;last in first outâ&#x20AC;&#x2DC; is regarded as the most equitable method of choosing those who should be made redundant.

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Limited Coverage Policy

A medical policy that covers only a specific illness, or designated disease. Also called a Dread Disease policy.

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Limited-Payment A life insurance policy that does not require payment during the entire lifetime of the insured. Whole Life Insurance

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Linear Regression

The relation between variables when the regression equation is linear, e.g., y = ax + b

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Linear Relationship

A situation in which the relationship between an x-variable and a y-variable can best be described by a straight line.

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Linear Scales

Lines on which equal distances between increments represent equal intervals between increments.

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Link

A link generally refers to any highlighted words or phrases in a hypertext document that allow you to jump to another section of the same document or to another document on the World Wide Web.

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Liquidity

Being in cash or easily convertible to cash.

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Listserv

The heart of an electronic mailing list, Listserv software automatically subscribes and unsubscribes list members and sends copies of every e-mail message to every list subscriber.

Human Resource Management

Living Benefit Rider

A provision in a life insurance policy that allows the insured to receive part or all of the benefit prior to death. This is in the case of terminal illness.

Human Resource Management

Living Wage

A wage sufficient for a worker and family to subsist comfortably.

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Local Area Network (LAN)

An acronym for Local Area Network, LAN refers to a local network that connects computers located on the same floor or in the same building or nearby buildings.

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Local National

Employees hired by a local subsidiary or branch in the country of operation. Usually nationals of that country but may be citizens of any country.

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Localization

To become local, especially to become fixed in one area or part.

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Location Selling Distribution System

Also known as Retail Outlet Distribution System. A system of selling insurance products in high traffic consumer locations. I.e. department stores, grocery stores, and banks.

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Lock Box Banking

Premium payments are received at a post office box. The insurer allows the bank to have access to the post office box. The bank opens all the mail, and deposits the premium. The bank sends receipts of all transactions to the insurer.

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To access a network or remote system. Logging on often requires a password.

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Log Off

To exit a network or remote system.

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Logarithm

One of a class of auxiliary numbers, devised by John Napier, of Merchiston, Scotland (1550-1617), to abridge arithmetical calculations, by the use of addition and subtraction in place of multiplication and division.

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Logarithmic Model

A calculation under which the x-variable is transformed into logarithms. The equation is y = a + blogx. It is used to describe certain nonlinear relationships, where y increases at an ever-decreasing rate as x increases.

Human Resource Management

Logarithmic Scales

Scale on which actual distances from the origin are proportional to the logarithms of the corresponding scale numbers.

Human Resource Management

Long Form Reinstatement Application

A reinstatement application. This application is used if the policy has lapsed for a specific reason, and the policyholder would like to reinstate the policy.

Human Resource Management

Long-Term Bonus

An income stream in the form of a bonus. It is a form of deferred compensation.

Human Resource Management

Long-Term Care

A product designed to provide coverage for necessary diagnostic, preventative, therapeutic, rehabilitative, maintenance, or personal care services provided in a setting other than an acute care unit of a hospital, such as a nursing home or even one's own home. Also known as LTC insurance.

Human Resource Management

Long-Term Compensation

Long-term compensation is generally any cash compensation paid for work/services from prior to last year per a multi-year contract or other extended pay agreement. Typical examples of long-term compensation include the current yearâ&#x20AC;&#x2DC;s cash payouts for the third installment of a five-year incentive plan or current cash paid pursuant to a deferred compensation agreement in which an employee might receive 10% of last yearâ&#x20AC;&#x2DC;s bonus this year (and each of the next nine years).

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Long-Term Debt

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Long-Term Disability Policy pays an income benefit when the insured is unable to work due to illness or injury (even if injured on vacation). Benefits are paid weekly or monthly and determined at a percentage of the insured's past earnings, normally 60 to 70%. Income Insurance

Human Resource Management

Long-Term Disability insurance (LTD) is a common offering in an employee benefit program. The purpose of this insurance is to offer employees protection from the effects of an illness or injury that results in a long term absence from employment. LTD Long-Term Disability is ordinarily group insurance which provides compensation to employees because of their loss of income. This coverage is characterized by benefit periods of either two years, five years, or to age 65. Typically, group LTD insurance policies will pay an Plan / Long-Term employee 50 to 60 percent of pre-tax salary, subject to a monthly cap. Most LTD policies become effective after a waiting Disability Insurance period that can range from six months to one year. Most often, LTD begins at the time that the employee's sick leave and shortterm disability benefits have been exhausted. Some LTD programs include rehabilitation services and wellness programs as a means of managing disability insurance costs and aiding the employee in returning to work as soon as possible.

Human Resource Management

Long-Term Incentive An incentive plan typically limited to executives. It requires a level of performance for a predetermined amount of time, for the maximum benefit to the employee. Plan

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Long-Term Income Protection

Insurance plans that provide financial protection in the event of retirement, disability, and financial security for family needs.

Human Resource Management

Loss Of Limbs

An insurance policy that covers the incident of accidental loss of limbs. See also Accidental Death &Dismemberment (AD&D) insurance.

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Loss Ratio

The ratio of paid and incurred claims plus expenses to premium.

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Lost Wages

Lost wages is generally an element of damages recoverable from the defendant under state law. Lost wages is not the same as loss or reduction of future earnings. The plaintiff has the burden of proving to the court or juries the damages, which he or she has suffered as a direct result of defendant's wrongdoing. Generally, testimony of a medical expert may be needed to prove the reason and type of disability preventing the plaintiff from earning his or her regular wages. Proof of the wages actually lost is also part of the evidence needed to substantiate a claim for lost wages. It is important to determine if your case allows recovery for lost wages and what evidence is needed to prove your damages. For more information on lost wages, contact a qualified attorney.

Human Resource Management

loyalty

The intangible bond based on a legitimate obligation; it entails the correct ordering of our obligations and commitments. Loyalty demands commitment to the organization and is a precondition for trust, cooperation, teamwork, and camaraderie..

Human Resource Management

Lump Sum Bonus

An award that is paid in a single cash payment.

Human Resource Management

Lump Sum Distributions

A payment of the entire amount to the employee from a qualified retirement plan within one tax year. (4)

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Lump Sum Incentive An incentive award that is paid in a single cash payment. Award

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Lump Sum Increase

An increase in pay made in the form of one large payment.

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Lump Sum Merit

Merit pay in the form of one lump sum cash payment. This is separate from the base pay.

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Lump sum payment

A fixed negotiated payment which is not typically included in an employeeâ&#x20AC;&#x2DC;s annual salary. Often times given in lieu of pay increases.

Human Resource Management

Lump Summing

A method of determining expatriate employee compensation. In this approach, a lump sum is provided to an expatriate to spend as he or she wishes. It can be broken into lump sums for pre-departure, at the post, and repatriation.

Human Resource Management

Lump-sum Increase

Any increase in pay that is made in the form of a single cash payment. The most common form is the lump-sum merit.

Human Resource Management

Lurking

Visiting an online discussion and reading other people's comments without contributing. Lurking is a good way for a beginner to get familiar with a newsgroup or forum.

Human Resource Management

Luxury Automobiles

A luxury automobile is defined by the IRS as one with a fair market value of more than a certain amount.

Human Resource Management

Major Medical Insurance

A type of supplementary insurance, in addition to basic medical insurance, to provide for the costs of a major illness or injury.

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Major Services

Relates to dental insurance for services that are the most costly.

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Managed Care

A method by which insurance carriers attempt to manage healthcare costs by utilizing a pre-selected panel of physicians.

Human Resource Management

Managed Health Care

A healthcare approach that delivers medical services while controlling cost and quality.

Human Resource Management

Management by Coaching and Development (MBCD)

Managers see themselves primarily as employee trainers.

Human Resource Management

Management by Competitive Edge (MBCE)

Individuals and groups within the organization compete against one another to see who can achieve the best results.

Human Resource Management

Management by Consensus (MBC)

Managers construct systems to allow for the individual input of employees.

Human Resource Management

Management by Decision Models (MBDM)

Decisions are based on projections generated by artificially constructed situations.

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Management by Exception (MBE)

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Management by Information Systems Managers depend on data generated within the company to help them increase efficiency and inter-relatedness. (MBIS)

Human Resource Management

Management by Interaction (MBI)

Emphasizes communication and balance of male/female energy as well as integration of all human aspects (mental, emotional, physical and spiritual), creating an empowered, high-energy, high-productive workforce. [Management style developed by Barbara Taylor and Michael Anthony]

Human Resource Management

Management by Matrices (MBM)

Managers study charted variables to discern their inter-relatedness, probable cause and effect, and available options.

Human Resource Management

Management by Objectives (MBO)

A process by which management and employees set specific goals with feedback on goal progress.

Human Resource Management

Management by Organizational Development (MBOD)

Managers constantly seek to improve employee relations and communications.

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Management by Performance (MBP)

Managers seek quality levels of performance through motivation and employee relations.

Managers delegate as much responsibility and activity as possible to those below them, stepping in only when absolutely necessary.

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Management by Styles (MBS)

Managers adjust their approaches to meet situational needs.

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Management by Walking Around (MBWA)

Managers walk around the company, getting a 'feel' for people and operations; stopping to talk and to listen. Sometimes known as Management by Walking Around and Listening (MBWAL). This management style is based on the HP Way developed by entrepreneur Dave Packard, co-founder of Hewlett-Packard.

Human Resource Management

Management by Work Simplification (MBWS)

Managers constantly seek ways to simplify processes and reduce expenses.

Human Resource Management

Managing General Agent (MGA)

An independent contractor that appoints personal general agents on behalf of an account, and who might represent numerous accounts.

Human Resource Management

Mandatary

A person that receives a mandate.

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Mandated Benefits

Non-cash benefits that are required by state law to be covered by an insurance carrier.

Human Resource Management

Mandator

An individual who hires another to carry out the command or wishes of a mandate.

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Mandatory Mandatory Continuing Legal Education (also known as MCLE) are annual educational requirements for legal professionals. Continuing Education MCLE credits are governed by various related State Boards. Approximately 1/2 of all U.S. states have these annual requirements. The www.eridlc.com website refers to legal continuing education credit as CLE. (MCLE)

Human Resource Management

Mandatory Continuing Legal Education (MCLE)

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Mandatory Securities A liability account that is supposed to incorporate realized and unrealized capitol gains and losses resulting from investments. Valuation Reserve (MSVR)

Human Resource Management

Manual Rates

A premium rate based on claims experience of an average group.

Human Resource Management

Margin

An error factor, usually a percentage of premium, margin is used by underwriters to set risk.

Human Resource Management

Marginal Tax Rate

The tax rate paid on the last dollar of income.

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Market Adjustment

The percentage increase to organization, group or individual pay that is necessary to adjust it to the estimated market level.

Annual educational requirements for legal professionals. MCLE credits are governed by various related State Boards.

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Market Based Salary An organizations budget to increase salaries that is estimated by their knowledge of the competition. Increase Budget

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Market Basket

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Market Capitalization The result of multiplying the number of outstanding shares by the price per share.

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Market Compa-Ratio The comparison of internal pay to competitive pay of a company or individual.

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Market Cycle

A description of the various stages of a product or company as it growths or declines.

Human Resource Management

Market Index

An index that is used to calculate an individual or groups market pay by dividing the current pay of an individual by the market pay.

Human Resource Management

Market Pricing

The technique of creating a job-worth hierarchy based on the â&#x20AC;&#x2022;going rateâ&#x20AC;&#x2013; for benchmark jobs in the labor market(s) relevant to the organization. Non-benchmark jobs are slotted into the structure based on whole job comparison.

A combination of goods and services used to calculate a consumer price index.

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Market Rates

An organization's determination of rates for wages that are typical for a specific occupation.

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Master Contract

A legally binding agreement between and insurance company and the policy holder, usually an organization.

Human Resource Management

Master Plan

A defined benefit or defined contribution plan, such as pension or other employee benefit plan, that has been developed by a sponsoring organization and that provides a single trust account in which all adopting employers must invest their plan contributions. The sponsoring organization must have the plan approved by the Internal Revenue Service.

Human Resource Management

Matching Contributions

Contributions that are made to an employee's 401K plan by their employer. The intent is to match the employee contribution to a pre-set dollar or percentage maximum.

Human Resource Management

Material Fact

In the insurance industry a fact that is considered applicable to an underwriter when considering rating or issuing a policy.

Human Resource Management

Material Misrepresentation

In the insurance industry any incorrect, misleading or false statement(s) by the applicant that would cause the insurer to accept this individual as a risk, when under truthful circumstances the insurer may have accepted the risk under other provisions, or may have declined the policy.

Human Resource Management

Materiality

In accounting, this idea represents that that relevant information concerning monetary transactions and/or condition of the organization it to be reported and explained separately.

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Matrix organization

An organizational structure where employees report to more then one manager or supervisor.

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Matters of Significance

Refers to the level of importance or consequence of the work performed.

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Matured Endowment In insurance, a type of life insurance that is payable if the insured is still alive on the date the policy has matured.

Human Resource Management

Maturity Curve

A process of determining employeesâ&#x20AC;&#x2DC; salaries as a function of years from the time of the first degree earned. Maturity curves are most commonly used for pricing jobs in lieu of relying on job evaluation techniques. The process assumes that years in the profession equate with more highly valued competencies.

Human Resource Management

Maximum Benefit

In the U.S., the highest lifetime or annual benefit amount that can be paid by a qualified defined benefit plan to a plan participant legally. (Canada) The highest amount an insured may receive under an insurance plan.

Human Resource Management

Maximum Benefit Period

The longest amount of time that a disability insurance plan will continue to provide disability income payments.

Human Resource Management

Maximum Benefits For Related Confinements Provision

A limitation that is found within policies that refer to all hospital stays and all surgeries that are completed within a period of sickness or a surgery.

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Maximum Reasonable Compensation

In the IRS determination of reasonable compensation for owner-managers, one of the main considerations is that of comparable wages. Maximum reasonable compensation would be the highest amount of compensation, both wages and bonus, which would be allowable to be used as a business expense for services rendered in comparable circumstances. Based on IRS cases, ERI developed the definition in terms of the standard error of the distribution of compensation for comparable executives. This measure is approximately plus/minus 3.01 standard error. Very similar to the standard deviation, the standard error represents the range of pay in which one might find 95% of the population.

Human Resource Management

Maximum Years of Experience

In ERI survey software data, maximum years is twice the normal career job incumbency period. This is two times the average number of years people hold this job (per Census and other survey reports). Beyond this point of maximum years you can expect to find very few people still performing the same job. This maximum years figure is the top number of years that accurately and reliably predicts pay differentials. The pay of those few who hold this job beyond the maximum year is not related to their total years of experience; i.e., if 5 years is the average, pay differentials are not reported beyond 10; the pay of those at 11, 12, 13 years, etc., remains best predicted by the 10-year level and has a spurious relationship with the years in excess of 10. Pay thereafter is related to some factor beyond years of total experience over the maximum.

Human Resource Management

McCarran Ferguson Act

The McCarran Ferguson Act allows employers to not include certain time and activities of employees, prior to and/or after work, as "work time." These activities are ones that are not required in order to accomplish the job. The most common of these is the time taken to commute to work. Examples of types of activities other than commuting that are non-compensable are: waiting to check in at the beginning of a workday or waiting in line for a paycheck at the conclusion of a shift.

Human Resource Management

Mean

A mean is the result of dividing the sum of two or more quantities by the number of quantities. See AVERAGE.

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Median

One type of norm measure found by arranging the values in order and then selecting the one in the middle. Therefore, half of the numbers are less than the median, and half are higher than the median.

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Median - Grouped Data

A special quantitative analysis technique is useful when analyzing a group of data in a frequency distribution.

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Mediation Services

The process of intervention by a specialist in an employment dispute. Provided under the Employment Relations Act 2000.

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Medicaid

An insurance plan funded by the government that provides medical coverage to individuals under age 65 who are low wage earners, and/or meet other criteria.

Human Resource Management

Medical Application

An application for medical insurance which also include a medical exam for which the results are reported the insurance company.

Human Resource Management

Medical Expense Insurance

A type of insurance plan designed to pay for various medical expenses.

Human Resource Management

Medical Information Bureau (MIB)

An organization that provides fraud protection from those that would try to hide or omit information when applying for various insurance coverage.

Human Resource Management

Medical Necessity Provision

A provision in most medical insurance plans that states that a medical service must be prevent harm to the patient or an adverse effect on the patient's quality of life, and in addition cannot be experimental in nature.

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Medical Report

A report on a potential insured's health based on physical examination and questions by a physician for the purpose of a medical application.

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Medical Savings (Spending) Account (MSA)

A savings account that can be used to pay for medical expenses that are not covered by insurance. The employee contributions to the plan are tax-deductible.

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Medicare

A medical plan that is available to those over age 65 and those with specific disabilities via the U.S. government through the Social Security Administration. There are two plans available through Medicare. Part A, provides for inpatient hospital services and post-hospital care. Part B, pays for medically necessary doctors' services, outpatient hospital services and a number of other medical services and supplies not covered under Medicare Part A.

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Medicare Risk HMO

An option to replace the traditional Medicare plans A and B with an HMO plan that is approved by Medicare.

Human Resource Management

Medicare Secondary These rules determine when an employer, group medical insurance plan, would cover medical claims first. Amounts not covered by the employer's plan can then be submitted to Medicare. Payor Rules

Human Resource Management

Medicare Supplement An insurance option available to Medicare eligible individuals to cover expenses that are not covered by Medicare.

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Mental Health

In medical insurance these benefits are related to emotional problems and sometime substance abuse issues.

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Mental Health Parity Act Of 1996

Insurance plans that provide mental health benefits are not allowed to impose lifetime or annual dollar limits for mental health benefits that are less than those imposed on medical or surgical benefits. Substance abuse treatment is not included in these guidelines.

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Mentoring

A one-to-one process between an outside trainer and an employee, whereby the former will â&#x20AC;&#x2014;trainâ&#x20AC;&#x2DC; the latter. See also Coaching.

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Merger

The combining of two or more entities into one, therefore all administration is under one corporation.

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Merit Bonus

An incentive award based upon an individual's performance.

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Merit Increase

An increase to an individualâ&#x20AC;&#x2DC;s base pay rate based on performance.

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Merit Matrix

A process by which an individuals salary increase is determined by using performance and pay within the salary range.

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Merit Pool

Total amount of dollars available for salary increases.

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Merit Progression

A process by which an employee progresses through a wage range due to performance or other measurable criteria.

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Merit Rating

A method for appraising the performance of an employee with respect to his or her job. It frequently serves as a basis for making pay adjustments, promotion decisions, or work reassignments.

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Metropolitan Statistical Areas (MSA)

A geographic area consisting of a large population nucleus together with adjacent communities having a high degree of economic and social integration with the nucleus. Where metropolitan areas are combined to form Consolidated Metropolitan Areas (CMSA's), the component metropolitan areas are designated Primary Metropolitan Statistical Areas (PMSA's). Metropolitan areas that are not combined to form CMSA's are designated Metropolitan Statistical Areas (MSA's). More information on metropolitan areas is available from the U.S. Census Bureau website: www.census.gov/population/www/estimates/metroarea.html.

Human Resource Management

Midpoint

The salary that represents the middle of a given salary range or pay grade.

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Midpoint Progression adjacent grades. A midpoint progression is calculated by taking the difference between two adjacent midpoints as a

Human Resource Management

Military Service Payments

A salary payment agreement between an employee and employer when the employee is involved in such temporary duties as the National Guard or Reserve. The arrangement may include the employer paying full regular salary or the difference between that when involved in active status and regular duty.

Human Resource Management

Minimum Age

The federal law states the minimum age for employment is 17, however a minor under the age of 17 may also work if the conditions of the occupation meet certain criteria and are not dangerous.

Human Resource Management

Minimum Age Requirement

A requirement in planning pensions that an employee must be a certain age prior to being permitted to participation in the employer's pension plan.

The difference in wage rates paid between two adjacent grades, usually defined as the difference in the midpoints of the two percentage of the lower of the midpoints.

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Minimum Continuing Annual educational requirements for legal professionals. MCLE credits are governed by various related State Boards. Legal Education (MCLE)

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Minimum Deposit Arrangement

An agreement where an insured can apply the first year cash value to the initial premium amount.

Human Resource Management

Minimum Deposit Business

A policy owner will request the premium be paid out of the policy's cash value, and the insurance company is only to bill the policy owner if the cash value is not enough.

Human Resource Management

Minimum Distribution When an employee reaches the age of 70.5 a minimum distribution is required. The amount is determined by the amount in the employee's account and the employee's life expectancy. Rules

Human Resource Management

Minimum Participation Requirements

A rule that requires all plans to have at least 50 employees or 40 % of the total employees enrolled.

Human Resource Management

Minimum Premium Plan (MPP)

A health insurance plan that is partly self -insured by the employer, however is fully administered by the insurance carrier. The employer pays all claims up to an agreed amount, and the carrier pays the rest.

Human Resource Management

Minimum Service Requirement

Certain insurance plans require a that an employee wait a specific period of time before they are eligible to participate in the particular plan.

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Minimum wages

The lowest level of earnings of employees set by Government.

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Minor

Laws regarding work hours, work conditions and occupations for certain ages under 18 years of age.

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Misrepresentation

To be dishonest and provide false information to sell insurance plans. To be dishonest and provide false information when applying for insurance.

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Mission Statement

A statement illustrating who the company is, what the company does, and where the company is headed.

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Misstatement Of Age Usually related to life insurance if at the time of the insured's death it is determined that the insured did not state the correct age on the application, and resulted in incorrect premium being charged for the amount of insurance that the insured received. Provision

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Mix

An outline of parts of pay generally stated in percentages of a total amount.

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Mode

In a set of observations the worth that is most prevalent.

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Mode Of Premium Payment

The frequency that premiums are paid.

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model

(1) A person that serves as a target subject for a learner to emulate. (2) A representation of a process or system that show the most important variables in the system in such a way that analysis of the model leads to insights into the system.

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Model Bill

Legislation created by NAIC that can be used exactly as is or as a guideline by states or provinces to create their own laws.

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Model Life Insurance In a 1976 a regulation that was implemented by the NAIC that states insurance companies are to provide information detailing what life insurance plan may best suit their needs, an understanding of the plan provisions, and the ability to conduct an Solicitation analysis of various plans. Regulation

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Model Rules Governing The Life insurance guidelines set by NAIC regarding advertising for annuity contracts and life insurance. Advertisement Of Life Insurance

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Model Unfair Trade Practices Act

A NAIC law that contains prohibition against any form of insurance advertisements that are misleading, untrue or deceptive.

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Modified Net Premiums

Premiums that are net rather than level.

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Modified-Premium After that period of time the premium payments increase to an agreed upon amount that is higher than usual for the life of the Whole Life Insurance policy.

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Money Market Fund

A mutual fund that only makes investments in money markets.

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Money Purchase Plan

A kind of defined contribution plan that utilizes a formula to determine the employer's contribution to the employees account. The formula and contribution are not related to profitability.

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Monthly Debit Ordinary Insurance

Ordinary life insurance that is paid for in monthly premium payments, typically paid directly to the agent.

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Moral Hazard

The risk that a potential insured might purposefully try to hide or falsify information that would affect the underwriter's decision to accept the risk of insuring this individual.

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morale

The mental, emotional, and spiritual state of an individual.

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Morbidity

A diseased state. The occurrence of disease, or of all diseases in a population.

A version of a whole life insurance policy where the insured pays less premium than usual for an agreed upon amount of time.

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Morbidity Rate

The chance that an individual at a certain age will become ill or disabled. In health insurance a persons premium is somewhat based on the morbidity rating for their specific age group.

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Morbidity Table

A chart that indicates the prevalence of illness among various age groups.

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Mortality Charge

The cost that is charged for the insurance protection element of a universal life insurance policy. The cost takes into account various such as the amount at risk, the insured's current age and the insured's risk factor at the time the policy is purchased.

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Mortality Curve

A graph that depicts the change in mortality rates throughout life.

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Mortality Experience

Several definitions: 1) The rate that participants in a pension plan have died. 2) The effect of actual deaths while on the plan that then has a financial effect for the plan.

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Mortality Rate

The frequency that death occurs among a specific group of people. The premium paid for a life insurance policy is partly established by the mortality rate by that person's age.

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Mortality Table

Actuarial tables used in the insurance industry to predict the life expectancy and the death rates for various types of people.

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Mortgage Redemption Insurance

A decreasing term insurance plan that insures the life of a person that takes out a mortgage. The policy proceeds will estimate the rest of the mortgage in the event of death.

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motivating

Using an individuals wants and needs to influence how the person thinks and what does. Motivating embodies using appropriate incentives and methods in reinforcing individuals or groups as they effectively work toward task accomplishment and resolution of conflicts / disagreements. Coupled with influence, motivating actively involves empowering junior leaders and workers to achieve organizational goals and properly rewarding their efforts as they achieve the goals.

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Motivation

The reason(s) why a person works at a particular job and for a particular organization. Subject to various theories relating to the way they do things.

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Motivational theories An attempt to explain how people are motivated, in the form of work behavior and performance.

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Moving And These expenses are paid for up front or reimbursed to an employee by the employer when the company needs to have that Relocation Expenses employee's skills utilized in another location.

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MSA

Metropolitan Statistical Areas are U.S. geographic area consisting of a large population nucleus together with adjacent communities having a high degree of economic and social integration with the nucleus. Where metropolitan areas are combined to form Consolidated Metropolitan Areas (CMSA's), the component metropolitan areas are designated Primary Metropolitan Statistical Areas (PMSA's). Metropolitan areas that are not combined to form CMSA's are designated Metropolitan Statistical Areas (MSA's). More information on metropolitan areas is available from the U.S. Census Bureau website: www.census.gov/population/www/estimates/metroarea.html.

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Multi-Company Representation

A life and health insurance agent is permitted to represent more than one insurance company.

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Multi-Employer Plan

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Multinational Pooling An arrangement that links together the benefit plans of a multinational company.

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Multiple Employee Welfare (MEWA)

An employee benefit plan that is maintained by two or more employer groups to provide health and welfare benefits to the employees.

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Multiple Employer Trust (MET)

Group benefit plans that cover medical, dental and pension plans, typically for smaller employers, that have joined together under one master policy.

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Multiple Line Agency Full-time agents that sell life and health, and property and casualty insurance to groups of financially related or managed companies. System (MLA)

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Mutual Insurance Company

An insurance company that is owned by individual or group policyholders, not stockholders.

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Mutualization

The process that occurs while a stock insurance company changes to a mutual company.

A employee benefit plan or pension plan that that has more than one employer.

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Myers-Briggs Type Indicator

A psychological test used to assess an individuals personality type.

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Naic Model Privacy Act

A bill written by the National Association of Insurance Commissioners that set guidelines for data provided to or by insurance agents, institutions and support organizations.

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NAICS

The North American Industry Classification System was developed by the United States, Canada, and Mexico to provide comparable statistics of industrial production across the three countries and replace SIC. NAICS also provides for increased comparability

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Named Individuals

Based on SEC requirements, these persons have their compensation listed in the company proxy statement.

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National Association Of Insurance Commissioners (NAIC)

The primary responsibility is to protect the interests of consumers that are covered or considering buying insurance. The NAIC helps state regulators in that respect.

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National Association A voluntary self-regulated securities organization responsible for the operation and regulation, including fair and ethical Of Securities Dealers practice, of the NASDAQ stock market and over-the-counter markets. (NASD)

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National Association Of Securities Dealers An organization that helps in stock trading, via a computerized system, for listed and over the counter stocks. Automated Quotation System (NASDAQ)

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National Average Earnings (NAE)

A measurement, per individual country, of the average salary per individual.

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National Brokerage Houses

Companies that provide individualized employee benefit and risk management advice to their clients.

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National Committee For Quality Assurance (NCQA)

An independent group that reviews quality of care and other procedures of managed care organizations to render an accreditation. NCQA developed the Health Plan Employer Data and Information Set (HEDIS), which is used as part of the accreditation process.

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National Compensation Survey (NCS)

A survey of salaries, wages, and benefits produced by the U.S. Bureau of Labor Statistics. Includes local, regional, and nationwide data. The NCS is designed to replace the Employment Cost Index (ECI), the Occupational Compensation Survey Program (OCSP), and Employee Benefits Survey (EBS).

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National Labor Relations Act Of 1935 (Wagner Act)

A federal law giving employees the right to self-organize unions, bargain collectively through representatives of their own choosing.

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National Labor Relations Board (NLRB)

A board of members who administer the Wagner and the Taft-Hartley Acts. The board determines bargaining agents, bargaining units and adjudicates unfair labor practice charges.

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National Occupational The Canadian labor market classification system for jobs. Includes coding for duties, skills, interests, aptitudes, education Classification System requirements, and work settings. (NOC)

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National Organization Of Life And Health A voluntary association of life and health guaranty associations that resolve issues and problems for policyholders in the event Guaranty of a life and health insurance company insolvency. Associations (NOLHGA)

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National Technical Information Service (NTIS)

This U.S. government agency is responsible for the SIC (Standard Industrial Classification) manual.

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Nature Of Work

Information about a specific occupation that describes the duties and responsibilities.

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NCS

The National Compensation Survey is the U.S. government's survey of salaries, wages, and benefits produced by the U.S. Bureau of Labor Statistics. Includes local, regional, and nationwide data. The NCS is designed to replace the Employment Cost Index (ECI), the Occupational Compensation Survey Program (OCSP), and Employee Benefits Survey (EBS).

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NEC

Stands for: not elsewhere classified.

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Needs Analysis

Discovering facts about a potential client to assist in determining their insurance needs.

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Negative Differential

When the cost of goods and housing are more expensive in an employees home country than those of the assigned temporary location.

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Negotiated Trusteeship

When collective bargaining results in an agreement between a union and an employer to provide the organization insurance.

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Negotiation

The process of discussion with a view to mutual settlement usually by the means of a conference.

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Nepotism

Favoritism shown to relatives by individuals in a position of authority such as CEOâ&#x20AC;&#x2DC;s, managers or supervisors.

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Net Amount At Risk

The difference between the death benefit of a life insurance policy and the policy's reserve at the end of the year.

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Net Asset Value (NAV)

The dollar value or purchase price of a single stock in a mutual fund.

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Net Assets

Total assets minus total liabilities.

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Net Cost

A figure to describe the cost of individual insurance.

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Net Income After Tax An individuals or company's profit after taking into consideration all other expenses and income and taxes.

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Net Loss

An individuals or company's loss after taking into consideration all other expenses and income and taxes.

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Net Premium

In life insurance it is the amount of money necessary to provide benefits.

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Net Present Value (NPV)

The current worth of an investment's future net cash flows minus the initial investment.

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Net Sales

Total sales less any returns and discounts.

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Net Worth

Complete assets less complete liabilities.

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Networking

Networking is building a web of interpersonal relationships for mutually beneficial purposes such as business referrals, customer acquisition, complementary product offerings, and sharing information. Networking means establishing, maintaining and utilizing contacts made for purposes beyond the reason for the initial contact.

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New Employee Orientation

New employee orientation is the process for welcoming a new employee into your organization. New employee orientation, often spearheaded by a meeting with the Human Resources department, generally contains information about safety, the work environment, the new job description, benefits and eligibility, company culture, company history, and anything else relevant to working in the new company.

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New York Stock Exchange (NYSE)

In the U.S., the NYSE is the oldest and the largest stock exchange. It is located on Wall Street in New York City.

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NMHPA

Newborns' and Mothers' Health Protection Act of 1996 (NMHPA) is part of the Mental Health Parity Act and states that group health plans cannot restrict the length of any hospital stay that relates to childbirth for the newborn or mother to less than 48 hours for a normal vaginal delivery or 96 hours for a Caesarean delivery.

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No Correlation

A relationship where there is no pattern.

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NOC

The National Occupational Classification System is the Canadian labor market classification system for jobs. Includes coding for duties, skills, interests, aptitudes, education requirements, and work settings.

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No-Evidence Limit

In group insurance, the maximum dollar amount that an insurance company will insure an individual for without requiring evidence of insurability. May also be referred to as guaranteed issue.

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No-Load Fund

A mutual fund in which no commissions are paid if the purchaser buys direct from the fund.

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Nominal Measurements

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Non Admitted Assets The assets that are restricted from being added to a life insurance company's balance sheet.

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Non Admitted Reinsurer

In a certain jurisdiction, a reinsurer who is not licensed to accept reinsurance.

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Non Compete Agreements

A condition of an employment contract that states a specific time period that the employee cannot compete with the employer if the employee is terminated.

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Non Current Assets

An asset that is not easily changed to cash or not anticipated to become cash within a year.

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Non Current Liabilities

A debt that is not due to be paid within the next year.

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Non Statutory Stock Option (NSO)

A stock-option that is part of a compensation package that does not meet the IRS guidelines for a qualified stock option. The employee is taxed at the beginning if the value of the stock is known, or at the end when the employee exercises the option if the value of the option in unknown. These options are typically offered to executives.

These measurements use numbers as an identifier.

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Non-Cancelable And A health insurance policy for an individual that states the premium cannot be increased and the benefits cannot be terminated. Guaranteed Renewable Policy

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Noncash Incentives

Incentives that are not a direct cash payment, such as comp time, a membership to a club and a reserved parking space.

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Noncontributory Benefit Plan

A term used when discussing employee benefit plans under which the employer pays, or contributes, the entire cost of the premium for benefits for the employees.

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Noncontributory Organization Insurance

A term used when discussing employee benefit plans under which the employer pays, or contributes, the entire cost of the premium for benefits for the employees.

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Nondiscrimination Rules

An Internal Revenue code that states employee benefit plans are not to provide significantly greater benefits to higher paid employees and owners than to lower paid employees.

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Non-Duplication Of Benefits

A kind of coordination-of-benefits provision under which the insured's secondary insurance plan pays the difference, if any, between the amount paid by the primary plan and the amount that would have been payable by the secondary plan had that plan been primary.

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Nonelective Contributions

Any employer contribution, that is not a matching contribution, for which the employee may choose to have the contribution paid to the employee in cash in lieu of being contributed to the plan and, the contributions are not forfeitable when made and cannot be withdrawn prior to reaching certain conditions.

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Nonexclusive Territory

An arrangement in which several agents can represent one insurer.

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Nonexempt Employees / Nonexempt Employee

Employees who are subject to the minimum wage and overtime pay provisions of the Fair Labor Standards Act.

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Nonfinancial Rewards Any recognition given to an employee by an employer other than cash.

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Nonforfeiture Factors Values that are similar to annual premiums that insurers may use to calculate policies cash values.

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Nonforfeiture Values The benefits that a life insurer guarantees to the policy holder if the policy holder discontinues premium payments.

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Nonforfieture Options Different options that a policy holder has if a life insurance policy lapses to apply the cash value of that policy.

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Nonimmigrant Visas

Under specific circumstances, a visa will allow a non U.S. citizen to work in the United States.

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Non-Insured Pension A pension fund that has not been funded by insurance contracts. Fund

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Nonmedical Application

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Nonmonetary Awards An award that is not cash.

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Nonparticipating Policy

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Nonqualified Annuity An annuity that has been funded with money that was previously taxed in the same year that the funds are to be deposited.

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Nonqualified Deferred Compensation Plan

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Nonqualified Foreign A foreign plan that is no longer qualified due to termination or reversal of a section 404A election. Plan

An application for insurance that does not require the applicant to submit to a medical examination.

An annuity or life insurance policy that the policy holder does not receive dividends.

Typically used for senior executives and highly compensated employees, this retirement income plan does not meet the guidelines for a qualified plan, therefore they do not meet the criteria to be eligible for the tax advantages of a qualified plan.

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Nonqualified Pension A pension plan that does not meet IRS requirements, or receive the positive tax benefits, due to the increased benefits compared to what is allowable of a qualified plan. Plan

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Non-Qualified Stock Options

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Nonquantitative job evaluation

A method that creates job worth hierarchy based on the perceived value of the â&#x20AC;&#x2022;whole job,â&#x20AC;&#x2013; but does not utilize quantitative methods. Examples include classification, ranking, and slotting.

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Nonrandom Sampling A sampling that has not used a random selection.

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Nonresident License The license gives the agent of another state authorization to the sell insurance in the licensing state.

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Nonretroactive Disability Benefits

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Nonscheduled Dental The dentist is paid based on actual charges, if the charges are usual, customary and reasonable. Plan

A disability benefit that pays for the period of disability after the elimination period.

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Nonsmoker Risk Class

People who are a standard risk and that have not smoked for a particular time period prior to the application.

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Nonsymmetric Distribution

Graphed points that are not the exact image of each other, usually with cluster of more points on one side of the graph.

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Normal Cost

The amount necessary to fund for retirement benefits for one plan year for an individual or a whole pension plan.

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Normal Distribution

A certain bell shaped distribution on an graph usually as a statistic deduction.

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Normal Retirement Age

The age, as established by a plan, when retirement normally occurs, and the participant(s) in the plan can receive their full pension benefits.

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North American Developed by the United States, Canada, and Mexico to provide comparable statistics of industrial production across the three Industry Classification countries and replace SIC. NAICS also provides for increased comparability with the International Standard Industrial Classification. System (NAICS)

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NTIS

The National Technical Information Service is the U.S. government agency responsible for the SIC (Standard Industrial Classification) manual.

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Numerical Rating System

A system of categorizing risk where medical and nonmedical factors are given a numeric number based upon the expected impact on mortality.

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Observation interview

The process of observing employees while performing their respective jobs or tasks used to collect data regarding specific jobs or tasks.

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Occasional Tasks

Under the Fair Labor Standards Act (FLSA) new regulations, occasional tasks are infrequently recurring tasks that cannot practicably be performed by nonexempt employees, but are the means for an exempt employee to properly carry out exempt functions and responsibilities, are considered exempt work. The following factors should be considered in determining whether such work is exempt work: Whether the same work is performed by any of the exempt employeeâ&#x20AC;&#x2DC;s subordinates; practicability of delegating the work to a nonexempt employee; whether the exempt employee performs the task frequently or occasionally; and existence of an industry practice for the exempt employee to perform the task. (FLSA Section 541.707)

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Occupation

Generalized job or family of jobs.

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Occupational Differentials

Wage rates that have stable differences among occupations.

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Occupational Employment Statistics (OES)

Occupational Employment Statistics that provides employment and wage estimates by occupation for selected metropolitan areas, as well as the nation and the individual states.

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Occupational Outlook Provides general information on jobs, occupations, job categories. Handbook

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OES

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Office Of Federal Contract Compliance Under the Vocational Rehabilitation Act of 1973, the agency is to enforce affirmative action for government contractors. Programs

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Office Of The Superintendent Of Financial Institutions

An executive agency in Canada that is responsible for administering insurance laws for the provinces.

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Offset

A provision in tax law in which an insurer is allowed to use the amount paid for one type of tax to decrease another area of tax liability.

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Offset Approach

A method of coordinating defined private pension plan benefits with those of a government plan. The benefits from the private plan are decreased by a certain percent from the benefits received from the government benefits.

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Old Age Security Act In Canada, a law that gives pension benefits to almost all citizens 65 or older. (OAS)

Occupational Employment Statistics that provides employment and wage estimates by occupation for selected metropolitan areas, as well as the nation and the individual states.

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Old Age, Survivors, Disability And Health A federal law that created Social Security in the United States for the elderly and disabled that includes retirement, survivor and disability insurance, hospital and medical insurance. Insurance Act (OASDHI)

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Omnibus Budget Federal legislation that impacts many direct and indirect components of pay (such as qualified retirement plan limits), Reconciliation Act Of increases the Medicare tax base, eliminates the deduction for executive pay in excess of $1 million under most circumstances, and extends the tuition reimbursement exclusion. 1993

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Onboarding

A relatively new term, it is more far reaching than historical orientation programs It links new employees with team members very early in the employment process and continuing after the traditional orientation program ends.

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On-call Pay

A nominal amount of compensation provided in return for an employee being available to report to work at employerâ&#x20AC;&#x2DC;s discretion. Because the employee is expected to be easily reachable and able to report to the work site on short notice, he or she is compensated for having restricted personal time.

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Ontology

A listing of statements written in a resource description framework (RDF).

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Open Contract

A kind of insurance contract utilized by fraternal benefit societies in which the society's charter, constitution and by laws become part of the insurance contract.

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Open Ended Questionnaire

A technique used when analyzing a job using a written set of questions that requires a narrative response.

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Open Pay System

A compensation program that makes public salary information , including individual wage levels.

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operating

A focus on action to meet the immediate situation (with a time horizon from minutes to months) that requires standard procedures and structures with an expectation of prompt, measurable results. Usually it has a relatively clear linkage between cause and effect and contains much hard data often conveniently available for decision making.

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operating efficiency

A ratio (percentage) of the actual output of a department as compared to the desired or planned output.

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Operating Income

A measure of a company's earning power.

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Opportunity Cost

The cost of spending funds on one investment instead of another.

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optimization

Achieving the best possible solution to a problem in terms of a specified objective function.

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Option

The right, to buy or sell a specific amount of a given stock, index, commodity, currency, or debt, at a specified price during a specified period of time.

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Option A Plan

A plan common to universal life insurance where the policy proceeds are equivalent to the death benefit.

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Option B Plan

A plan common to universal life insurance where the policy proceeds are equal to the death benefit, plus the cash value.

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Option Exercise Price The price that will be paid to purchase shares covered by a stock option.

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Option Grant Date

The date that a stock option term begins and the option become effective.

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Option Performance Vesting

An option becomes exercisable during its term based on certain performance objectives.

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Option Profit

When the price of the shares is more than the exercise price at the time the shares are exercised.

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Optional Modes Of Settlement

The kinds of payments that are available to the insured or the beneficiary instead of a lump-sum payment.

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Optionally Renewable A individual health plan that is renewable on the anniversary if the insurer chooses to renew it. Policy

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Ordinal Measurements

Measurements that show the rank or order of the items being counted or measured.

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Ordinary Income

According to the IRS, all income that is subject to ordinary tax treatment.

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Ordinary Income Tax An individual's tax they must pay on earnings from all sources of income, except capital gains.

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Ordinary Insurance

Insurance that is issued to an individual person.

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Ordinary Life Insurance

Life insurance that is available on a somewhat unrestricted maximum death benefit amounts.

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Organization For Economic An association European countries, Asia/Pacific and North America that share the same principles of market economy, democracy and human rights. Cooperation And Development (OECD)

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Organization Manager

Any officer, director, trustee, or person having similar powers or responsibilities in a tax-exempt organization. This person may be subject to IRS fines under INTERMEDIATE SANCTIONS regulations.

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organizational Culture

A pattern that emerges from the interlocking system of the beliefs, values and Behavioral expectations of all the members of an organization.

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Organizational Development (OD)

Improving individual and organizational behavior via systems and programs, through training and development.

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Orientation

The introduction of employees to their jobs, co-workers, and the organization by providing them with information regarding such items as policies, procedures, company history, goals, culture, and work rules. Similar to Induction.

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Original Age Conversion

Changing a term life policy into a whole life policy at a premium rate based on the age of the policyholder at the time the term policy was purchased.

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Original Equipment Manager (OEM)

Takes integrated products of another manufacturer makes them into a final product.

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OSH

Occupational health and safety â&#x20AC;&#x201C; the law relating to the health and safety of personnel at work.

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Out Of Plan Services

Healthcare providers that are not participating in a health plans network, therefore the insurer would require higher co pays or deductibles.

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Out Of Pocket Limit

The dollar amount that an employee is responsible for paying for medical care during a certain period of time, usually a calendar year, then the insurer pays 100% once the out of pocket limit has been paid.

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Outliers

A Medicare patient that has an illness that is unique and not able to be classified in one of the diagnostic groups.

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Outplacement

A benefit offered by the employer to displaced employees which may consist of such services as job counseling, training, and job-finding assistance.

Human Resource Management

Outplacement Assistance

Counseling to employees that have laid off that can include assistance in regaining self confidence, teaching job search skills, resume preparation and ultimately finding a new position.

Human Resource Management

Outside Director

A member of the board of directors that is not an active employee, or a retired employee or conducts business with the company for which he is a board member.

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Outside Payroll

Refers to costs of benefits that do not include the company's direct payroll.

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Outsourcing

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Outstanding Premium Premium that is required on or prior to the policy statement, but has not been received by the specific date.

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Over Insurance Provision

In individual health insurance, the policy will specify that under certain situations the benefits will be reduced if the employee has more insurance that what is necessary to pay for medical expenses, or in the event that disability income may exceed the insured's predisability earnings.

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Over Retained

An occurrence in which an insurance or reinsurance organization has approved an amount of insurance that exceeds the company's usual capacity for a specific risk.

Human Resource Management

Over The Counter

Securities in companies that that are publicly traded, however are not on one of the enacted stock exchanges.

Human Resource Management

Overfunded Pension A defined-benefit pension plan that the assets have surpassed the company's current and projected future liabilities. Plan

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Overlap

A contractual agreement between an employer and an external third party provider whereby the employer transfers responsibility and management for certain HR, benefit or training related functions or services to the external provider.

The degree by which there is overlap in adjacent pay ranges.

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Overlapping Territory

In the general agency system, the territory that some portion of the area is open to another agent, rather than the general agent, but the rest of the territory is exclusive to the general agent.

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Overriding Commission

Commission that is earned by the field office manager which is based upon the business that is created by the agents in the office.

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Overtime

Each hour worked in a workweek in excess of the maximum hours applicable. This usually means hours worked in excess of 40 in a workweek. Under the Fair Labor Standards Act of 1938 (FLSA), there is no limit to the number of hours that an employee may work, either daily or weekly. It simply requires that overtime pay must be paid at a rate of not less than 1Â˝ times the nonexempt employeeâ&#x20AC;&#x2DC;s regular rate of pay for hours worked over the maximum in a workweek.

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Own

50% ownership of a value of a stock or at least 50% value of combined voting strength of the various classes of stock each organization of the group.

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Owners Equity

Money given to the company owners via an issuance of equity securities and possibly through retained earnings.

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Owners Of Corporations

Stockholders.

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Package

A combination of benefits and wages that employees receive due to collective bargaining.

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Paid Sabbatical

An executive benefit that allows a paid leave of absence for a predetermined period of time, usually to let the executive to follow another endeavor.

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Paid-Up Policy

An insurance policy that has already been paid, therefore no further premium is due for services that are received at a future date.

Human Resource Management

Paired comparison

A ranking technique that compares each job being evaluated individually to every other job in a pair-wise fashion to determine which job has a higher value. Ranks of jobs are created which can than be pegged to the market via benchmark jobs.

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Par Value

For stocks a random number given to a stock that is issued that is obligated by the registration requirements of particular states. Not all states have a par value for shares.

Human Resource Management

Parachute

An employment contract that states if there is a change in control of the corporation, there will be an increase or accelerated payments or vesting or some other rights to the employee once the change is final as stated in the contract.

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Paramedical Report

A report that is completed by another medical professional such as a technician, or a nurse or a physician assistant after a medical history and physical examination.

Paraprofessional

A trained worker who assists a professional, although not a member of the profession. For example: AAâ&#x20AC;&#x2DC;s in disciplines like Accounting and Information Technology, Certified Information Systems technicians, paralegals, licensed paramedics, certified professional secretaries, CAD-CAM operators, and other similarly technically focused workers who are narrowly specialized and whose formal credentials fall short of Wage-Hour FLSA Professional Long Test requirements. Typically, these individuals have successfully completed an extensive course of professional instruction (or the equivalent) beyond secondary school but short of a four-year college degree.

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Parent And Subsidiaries

One company is controlled by another company via stock ownership.

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Parent Subsidiary Group

One company, the parent company, owns stock in one or more companies called subsidiaries.

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Pareto chart

A bar graph used to rank in order of importance information such as causes or reasons for specific problems so that measures for process improvement can be established.

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Parking

A free parking space dedicated to an employee is typically a taxable benefit, however if there is not a market value to the parking space, not value can be determined.

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Partial Disability

A type of disability that would prevent an insured from completing the usual occupation on a full time basis, or from completing some of the duties of that usual occupation.

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Partial Disability Benefit

A disability income insurance policy that pays a flat amount if the insured has a partial disability.

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Partial Plan Termination

Termination of a pension plan or benefit plan from a specific organization, but not for another.

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Participants

An employee that is currently eligible or will be eligible in the future for the company benefits. A participant may also include a beneficiary.

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Participating Insurance Contract

A agreement with the employer group and the insurance company in which the premium due is based upon the actual premium and utilization of the plan.

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Participating Policy

A kind of life insurance policy or annuity where dividends might be paid to the policy owner.

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Participation

The amount of individuals given pay increases as a percentage of all of the employees in that group.

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participative leadership

A style of leadership in which the leader involves one or more employees in determining what to do and how to do it. The leader maintains final decision making authority.

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Particular Weight

In FLSA exempt employee determinations, factors to consider include, but are not limited to, whether it is part of the employeeâ&#x20AC;&#x2DC;s job duties to make such suggestions and recommendations; frequency with which such suggestions and recommendations are made, requested, and relied upon.

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Partnership Insurance

One type of insurance for businesses that is intended to provide funds to the remaining business partners so that they may purchase the interest of the business of the disabled or deceased partner.

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Past Service

The time of employment prior to a pension policy beginning or being amended or the time before that employee had begun participating in the plan.

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Pay Adjustment

A general revision of pay raises. The adjustment may be either across-the-board, such as cost-of-living adjustments (COLA), or spot adjustments for increases in prevailing wage rates.

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Pay As You Go

The typical technique for financing social security.

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Pay At Risk

A changeable pay policy that is funded by a reduction of base pay that is typically offset by the chance that a larger variable pay policy will payout when base pay is not at risk.

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Pay Compression

A term used to describe differentials in pay that is too little to be considered equitable. May be applied to the differences between (1) a supervisors pay and that of a subordinate. (2) The pay of an experienced employee versus that of a newly hired employee.

Human Resource Management

Pay for Performance

Paying employees based upon their performance level. Employees are evaluated via performance appraisals and given raises based upon their performance ratings. Poorly performing employees have their wages frozen; they are not given wage cuts.

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Pay For Time Not Worked

An employee is paid for the time that was not actually worked, such as holidays, jury duty, and personal days.

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Pay Grade

The salary level assigned to a job through a job evaluation system. (See ERI DLC Course 34: Installing Job Evaluation in Your Organization.)

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Pay In Lieu Of Notice

A pay arrangement for employees that have been terminated that is a continuation of the usual pay and usual benefits after the last day for a specific period of time.

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Pay Plan

A schedule of pay rates or ranges for each job in the classification plan. May include rules of administration and the benefit package.

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Pay Policy

A specific position of a company's pay with respect to the jobs competitive pay at a specific time.

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Pay Policy Line

The level at which the organization decides to set its pay against the external market; usually the midpoint of the salary structure is set as an estimate of the market going rate.

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Pay Range

The range of pay rates, from minimum to maximum, established for a pay grade or class. Typically used to set individual employee pay rates.

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Pay Range Overlap

The degree to which the pay ranges assigned to adjacent grades in a structure overlap. Numerically, the percentage of overlap between two adjacent pay ranges.

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Pay Range Width

The width or spread of a pay range, measured by the ratio: Width = (maximum pay â&#x20AC;&#x201C; minimum pay)/minimum pay.

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Pay Satisfaction

When an employee thinks that the salary they are paid is fair in comparison to the work they actually perform.

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Pay Steps

Specified levels within a pay range. Employees may progress from step to step on the basis of time-in-grade.

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Pay Survey

The gathering of data on wages and salaries paid by other employers for selected key classes of jobs or benchmark jobs.

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Payee

The individual that benefits are payable to as stated in the supplementary contract.

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Payment Of In Canada, an insurer can take action if they have admitted liability to fund policy proceeds, however the insurer cannot Insurance Money Into determine the appropriate recipient. After the insurer pays the court, they are released of any further obligation under the policy. Court

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Payout Frequency

The time that incentives are paid. They can be paid weekly, monthly, per quarter, or yearly.

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Payroll Deduction Plan

A payment method in which the employer deducts the premium from the individual employee's paychecks and sends it to the insurer.

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PBA

Principal Business Activities are IRS definitions of industry classifications.

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Peer appraisal

A performance appraisal strategy whereby an employee is reviewed by his/her peers who have sufficient opportunity to examine the individualâ&#x20AC;&#x2DC;s job performance.

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Peer Comparison

This is an idea in which results of incentive plans certain financial measures are compared to those of similar organizations.

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Peer Review Organization

Local physicians that belong to an organization that assist in resolving insurance claims arguments and encourage ethical and fair behavior in the health care business.

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Penalties

In benefits and wages, when a employer does not adhere to the legal requirements they must pay a sum of money.

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Pension

A fixed sum of money that is paid to a person that has retired and is entitled to receive the benefit under the pension plan.

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Pension Benefit A federal corporation that insures the benefits of defined benefit pension plans. The PBGC is supposed to ensure that all plan Guaranty Corporation participants received their vested benefits, even in the event that the pension plan goes bankrupt. (PBGC)

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Pension Benefits Guarantee Fund

In the Canadian province of Ontario, a fund is created to guarantee that benefits are paid in the event of insolvency of a pension plan.

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Pension Benefits Standards Act

Federal legislation in Canada that regulate administration of pension plans for federal employees and other employees that may fall under this legislative authority.

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Pension Equity Plan (PEP)

A kind of defined benefit pension plan that bases its retirement on final pay, however the percentage at a certain rate per year based upon the individual's age and/or service.

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Pension Fund

A fund set up to manage the assets and pay for the pensions of retirees.

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Pension Index

An index utilized by the Canadian Pension Plan and Quebec Pension Plan to change the pension payments to incorporate the effects of inflation.

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Pension Plan

A benefit plan that offers retirement benefits from a trust or another fund, via the purchase of insurance or from an unfunded plan.

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Pension Plans

A pension is a monetary benefit to an employee or beneficiary at the time of retirement.

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Pension Trust Fund

A fund that is made up of money that has been contributed to by both the employer and the employee for pension benefits. A trustee takes the funds and invests the money, collects the earnings and interest and distributes the benefits.

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Pension Versus Lump Sum

A pension is a retirement benefit that is paid periodically, and a lump sum is paid all at one time.

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Per Capita Beneficiary Designation

A beneficiary designation in which the proceeds from a life insurance policy are only shared with the class members who live longer than the insured.

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Per Cause Deductible A deductible that must be paid for each individual illness or accident before nay major medical benefits will be paid.

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Per Cause Maximum A medical expense policy maximum amount that will be paid for medical expenses incurred from any specific injury or illness.

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Per Stirpes Beneficiary Designation

A beneficiary designation in which the proceeds from a life insurance policy are given to the descendents of the deceased beneficiary.

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Percent

One part of 100.

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Percent Difference

The percent that the worth of one item is different from another item.

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Percentage Bar

A device in the form of a graph that is used to provide a summary of data that depicts percentiles of common interest in the data in graph form.

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Percentage Contribution

The total premium that company member would pay or pays to a contributory insurance plan.

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Percentage Method Of Withholding

A technique of figuring income taxes that are to be withheld by including wages for a specific pay period to the total wages paid to date that year.

Human Resource Management

Percentage Participation

A provision of a policy, typically found in major medical insurance, in which the insured employee and the insurer share the medical and hospital expenses in a predetermined ratio (e.g., 80%:20%), after the deductible is met. Also known as a form of cost-sharing.

Human Resource Management

Percentile

A point on a rank-ordered scale, found by dividing a group of observations into parts in order of magnitude from lowest to highest. The first percentile approximates the very lowest/bottom number found, while the 100th percentile is the very highest reported. The nth percentile is the point exceeding n percent of the observations. For example, in test taking, a score equal to or greater than 55 percent of those earned on an exam is said to be at the 55th percentile.

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Performance Appraisal

Any system of determining how well an individual employee has performed during a period of time, frequently used as a basis for determining merit increases.

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Performance Based Restricted Stock

Restricted shares of stock that are awarded to an executive and are contingent upon the attainment of internal or external performance goals or an increase in the price of the company stock.

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Performance Culture A group of averages and attitudes regarding performance in an organization.

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Performance Cycle

Job incumbents performance taken on a year to date cycle.

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Performance Dimensions

Phases of performance that are imperative to an occupation by which the incumbent will be measured.

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performance efficiency

A ratio (percentage) of the actual output of a person as compared to the desired or planned output.

Human Resource Management

Performance Improvement

Performance Improvement Plan when you have identified a performance problem and are looking for ways to improve the performance of an employee. The Performance Improvement Plan plays an integral role in correcting performance discrepancies. It is a tool to monitor and measure the deficient work products, processes and/or behaviors of a particular employee in an effort to improve performance or modify behavior.

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Performance Log

A written log that is kept by managers to remember behaviors that were effective and ineffective with regard to certain performance standards during the appraisal period being measured.

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Performance Management

A process utilized by managers that is made up of planning an managing performance via observation and providing feedback. The process also includes bettering performance through development, assessing and rewarding performance.

Human Resource Management

Performance Measurement

Any method utilized to gather data that gives a basis to exercise performance appraisal judgment.

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Performance Period

The time period for which performance is measured.

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Performance planning

A total approach to managing people and performance. Involving setting performance aims and expectations for the organization, departments and individuals employees.

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performance rating

Observation of a person's performance to rate productivity in terms of the performance standard

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Performance Sharing A method by which performance is described in terms of specific criteria, and norms are determined along with incentive awards being made depending upon if the goals have been met. (Goal Sharing)

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performance standard

A criterion or benchmark against which actual performance is measured.

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Performance Targets

Job duties or behavioral goals that are predetermined for an employee to provide a comparison for performance appraisal purposes.

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Performance Unit Plan (PUP)

Closely resembles a performance share plan, however the unit value is not related to the stock price. The award payment could be is stock, cash or a combination of the two.

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Peril

The cause of loss, such as earthquake, fire, flood and accident.

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Period Certain

Also known as annuity certain. A contract that states income will be provided for a specified number of years, regardless of life or death. If an annuitant or insured dies, his or the payments will be made to the beneficiary for the remaining years.

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Permanent And Total A situation that keeps an insured person from performing the job duties of any suitable, gainful employment. Disability

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Permanent Capital

The capital that a company has that is supposed to be an aspect of a balance sheet for over one year. The capital is to include non-current liabilities and equity.

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Permanent Transferee

An employee that was relocated and is not expected to go back to his home country or relocate to another country.

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Permitted Disparity

The difference between benefit and contribution rates that are allowed for highly compensated and non-highly compensated participants in a qualified pension plan as legislated by the IRS.

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Perquisite

Special benefits, perks, for high level executives and other managerial employees. This income is taxable to the employee. Some of these perks may include club memberships, legal counseling, and special parking.

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Persistency

The retention of business that takes place when an insurance policy stays in force as the result of continuing to pay premium.

Human Resource Management

Personal grievance

A complaint brought by one party to an employment contract against another party. See Part 9 of the Employment Relations Act 2000.

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Personal Interview Report

A report that includes a proposed insured's lifestyle, occupation, and economic standing. The report relies solely on the information reported by the proposed insured.

Human Resource Management

Personal Producing General Agency (PPGA)

A kind of general agent that is more similar to a broker than to a agency manager. Usually PPGAs are contracted with various insurance companies and spend their time attempting to sell insurance rather than managing and building an office.

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Personal Producing General Agency (PPGA) System

An individual that sells distribution systems who relies upon the use of PPGAs.

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Personal Selling Distribution System

A system to sell insurance that utilizes salaried or commissioned sales people to prospective insurance purchasers via oral presentations.

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Person-based Pay

Compensation programs that base an employeeâ&#x20AC;&#x2DC;s salary on that individualâ&#x20AC;&#x2DC;s skills or knowledge rather than on the nature of a rigidly defined job. Types include skill-, knowledge-, and competency-based pay.

Human Resource Management

Phantom Options

Options on units equal to stock shares, however they are not true shares, or rights to the increase in value of the shares not including related option rights.

Human Resource Management

Phantom Stock (Full Value)

An incentive plan that is long term in which the participant is given the compensation in cash that is determined by a formula. A full value plan pays the full value. The formula does not have to include the actual price of the stock.

Human Resource Management

Phantom Stock (Incremental Value)

The concept is similar to the phantom stock full value, however the payment is an appreciation or increase in value as determined by the formula. The formula does not have to include the actual price of the stock.

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Philosophy

A method of translating the current state of a company into real policy action to gain the long term goals of the company.

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Physical Examination A provision in health insurance plans that the insurer has the right to have a n insured that has filed a claim be examined by a physician of their choice and their expense. Provision

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Physical Examinations Employer Assisted

Many times employers will provide the employees with a yearly physical examination, typically at no cost or very little cost to the employee.

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Piece Rate

A direct performance payment based on production by an individual worker. A payment is made for each piece or other quantity unit of work produced by an employee.

Human Resource Management

Piece Work

An incentive payment is given for work that has been completed. The pay is dependent upon the amount of items produced or operations finished.

Human Resource Management

Plan Administrator

The administrator of the plan is the plan sponsor, however someone else can be named as the sponsor in the plan document. The responsibilities include- 1) managing the plan assets to reduce risk of loss, 2) act on the interests of the beneficiaries, 3) act accordingly under the terms governing the plan.

Human Resource Management

Plan Advisor

A person that the plan trustees might delegate their tasks to. The plan advisor has fiduciary responsibilities, including buying, selling and managing plan assets. The plan advisor must put in writing that he or she is the plan fiduciary. The plan advisor must also be a registered investment advisor.

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Plan Document

A document that states the terms of a pension plan for an employer. The document states the eligibility requirements and the specific benefits of the plan.

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Plan Participant

An individual, such as an employer, a terminated employee or a beneficiary of an employee or terminated employee for which contributions are made or benefits are earned under a employee benefit plan or a pension plan.

Plan Sponsor

The party that creates and maintains the plan. This party is either (1) the employer, when the employee benefit plan is maintained by a one employer, (2) the employee organization, if the plan is maintained by an employee organization, or (3) the committee or association, joint board of trustees or other equivalent group individuals of the parties involved, if the plan is maintained by one or more employers and one or more employee organizations.

Human Resource Management

Plan Termination

The benefits of a pension plan profit sharing plan cease voluntarily or due to circumstances. The discontinuation of benefits will cause assets to be distributed to beneficiaries. If the distributions are not equal to the accrued benefits, the Pension Benefit Guarantee Corporation will try to assist with the difference.

Human Resource Management

Plan Year

A period of 12 months for which plan records are kept.

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plan-do-check-action Sometimes referred to as the Shewhart Cycle, for the inventor - Walter A. Shewhart. A four step process for quality improvement (PDCA)

Human Resource Management

planning

A course of action for oneself and others to accomplish goals; establishing priorities and planning appropriate allocation of time and resources and proper assignment of people to achieve feasible, acceptable, and suitable goals.

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PMSA

Primary Metropolitan Statistical Area (PMSA). See METROPOLITAN STATISTICAL AREAS (MSA).

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Point Factor

A quantitative occupation evaluation technique that utilizes defined factors and degree levels in each factor.

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Point Of Service Plans (POS)

Health Plans that are a combination of an HMO and fee for service plan. The individual can choose at the point of service whether he wants to see a network provider or a non network provider. The co pays and will be vary and deductibles may apply.

Human Resource Management

Policy

A document that provides evidence of the insurance contract and has the important facts about the agreement between the insurance carrier and the policyholder.

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Policy Acquisition Costs

Cost that are attributed directly the production of any new business.

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Policy Anniversary

The anniversary of the date that a policy was first issued.

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Policy Charge

The amount that will add to the total premium to assist in covering the insurance company's expenses. The charge is the same and does not take into consideration the size of the group.

Human Resource Management

Policy Filing

The process of getting legal authorization to sell insurance products in certain areas.

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Policy Loan

A loan that is given to a life insurance policyholder by the insurer. The loan cannot exceed the cash value and is secured by the cash value. When the benefits are paid the pending policy loan against the policy is subtracted from the benefits.

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Policy Proceeds

The actual amount that a beneficiary receives from a life insurance policy after all adjustments have been to the death benefit.

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Policy Provisions

The statements in a policy the discuss the insurance contract.

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Policy Reserve

The assets that ensure the insurer will have the appropriate funds to cover future claims.

Human Resource Management

Policy Summary

Usually a computer printout, this document provides specific legally required information with regard to the certain policy that the applicant is considering.

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Policyholder

A organization or company that owns a group insurance contract. The policy holder does not have the same rights that a individual policy owner has with an individual contract.

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Policyowner

The person that owns an individual life insurance policy. The policyowner is not required to also be the insured party.

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Pooled Trust

A common trust fund generally sponsored by one employer and used to accumulate the assets of different plans of the employer and its subsidiaries.

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Pooling

A practice in group insurance in which the underwriters put several small groups together to create a large group.

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Population

A statistical term that takes into account all of the units that are of interest for a certain situation.

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Portability

The right of a pension plan participant to transfer already accrued pension benefits under a one plan with one employer to another employer sponsored plan. The act of transferring is typically tax free.

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Portfolio

Several definitions: 1) The products that are offered by an insurance carrier, 2) Investments that are owned or managed an organization or individual.

Human Resource Management

Portfolio Method

A technique in accounting utilized by insurers in that every customer gets the interest rate that is equal to the norm of all of the assets in the general account.

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Position

The total of duties and responsibilities of a single employee. The total number of positions in an organization equals the number of employees plus vacancies. A job is typically made up of several positions that require the same duties at the same level.

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Positive Correlation

When the relationships between x and y are generally the same.

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Post Employment Benefits

Typically given to executives these employment benefits include other benefits beyond medical and retirement, such as compensation and a secular trust.

Human Resource Management

Post Notice

A document that an insurer is required to send to an applicant in situations that the insurance company has made a negative decision based upon information that was received via a consumer reporting agency.

Human Resource Management

Post Retirement Benefits

Any form of benefits, beyond retirement income, that is provided to its retirees by their employer.

Human Resource Management

Power Of Agency

An insurance agents right to act on the behalf of an insurer. It is created through contracts between and insurer and their agents.

Human Resource Management

PPO

Preferred Provider Organization. A network of healthcare providers that will discount services to individuals or groups that participate in the particular plan.

Human Resource Management

Pre-Admission Review

An element of the utilization and review system that provides authorization for non-emergency hospitalization, if the insured person or the insured's physician has received prior authorization.

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Pre-Authorized Payment System

A payment method that allows a policyowner to sign an authorization to pay insurance premiums. The authorization is two parts. The first part gives the insurer authorization to withdraw the premium from the insured's account. The second part gives the bank authorization to allow withdrawals that do not have the insured's signature. If this authorization system is completed via checks, it is then called the pre-authorized check (PAC) system.

Human Resource Management

Predetermination Of Benefits Provision

A stipulation that is often included in dental policies that states if dental services are anticipated to exceed a certain level the dentist will need to submit a proposed treatment plan to the insurer so that the insurer can determine what amount they will cover.

Human Resource Management

Pre-Existing Condition

Several definitions: 1) In individual medical plans, the condition is an injury that occurred or an illness that was diagnosed prior to the policy issue date, and in addition was not stated on the insurance application, 2) In group medical insurance the condition is one in which the employee received medical attention during a certain period of time (typically 3 months), just before the effective date.

Human Resource Management

Pre-Existing Condition Provision

A stipulation in many insurance policies that states that the insured must be covered under the policy for a specific time period before the insurer will pay for benefits resulting from any pre-existing condition.

Human Resource Management

Preference Beneficiary Clause

Wording in a life insurance policy that states if there is not a specific beneficiary named, that the insurance company will pay the proceeds according to a list of people included in the policy, in a stated order.

Human Resource Management

Preferred Beneficiary grandchildren of the said insured. The policyowner can only change the preferred beneficiary to a non-preferred beneficiary

Human Resource Management

Preferred Provider Organization (PPO)

A class of beneficiaries, in Canada, associated with policies given before 1962 that include grandparents, parents, spouse and with the authorization of the preferred beneficiary.

A managed care health delivery arrangement that contracts with certain health care providers and/or health care organizations to provide comprehensive medical service. Providers provide services at discounted rates to members of the PPO.

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Preferred Shares

Capital stock which gives a certain dividend that is paid prior to any dividends are paid to the common stock holders, and that takes priority over the common stock if the company must liquidate.

Human Resource Management

Preferred Stock

Capital stock which gives a certain dividend that is paid prior to any dividends are paid to the common stock holders, and that takes priority over the common stock if the company must liquidate.

Human Resource Management

Pregnancy Disability Leave

Leave from the workplace for a specific period of time that is related to disability caused by pregnancy.

Human Resource Management

Preliminary Inquiry Form

Application that is used if there is a strong possibility that the policy may not be used at a later date or may be issued with a high substandard so that the premium for the policy will not be acceptable to the applicant.

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Premature Distribution

A withdrawal prior to the age 59 1/2 from a qualified retirement plan. There are certain circumstances that will allow the distribution if specific requirements are met. If these requirements are not met there usually is a penalty associated with the distribution.

Human Resource Management

Premium

Several definitions: 1) An amount that is added to a base salary to pay additional monies for situations such as graveyard shift, working weekends, or working away from home, 2) In an international situation the definition relates to an incentive that is paid to an expatriate, 3) One payment or a sequence of payments made for an individual or for a group to continue the insurance policy that is in force.

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Premium Conversion Provision that allows employees to make a contribution, pretax, to an employer sponsored health or welfare plan.

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Premium Deposits

Money that is left on deposit with the insurance carrier to pay for future premiums.

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Premium For Risk

The usual amount of presumed additional return on investment that is required by investors when they choose a higher-risk investment.

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Premium Pay

Extra pay, beyond the base wage rate, for work performed outside or beyond regularly scheduled work periods.

Human Resource Management

Premium Receipt

Recognition that the insurer has received the initial premium payment.

Human Resource Management

Premium Receipt Book

A book with receipts in it that is given the policyowner at the time when a home service agent sells a policy. The book has prenumbered receipts that the agent signs at the time premium is collected.

Human Resource Management

Premium Reduction Option

A life insurance policy dividend option that applies policy dividends toward the payment of renewal premiums.

Human Resource Management

Pre-Notice

Notification to the applicant in advance that the insurance company may make an investigative consumer report.

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Pre-Retirement Counseling

Preparation for the financial and emotional changes that occur during retirement for the employee and the spouse.

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Preretirement Survivor Annuity

A provision in a pension plan that states a certain benefit for a surviving spouse of a vested plan participant if the participant should die prior to retirement.

Human Resource Management

Prescribed Annuity Contract

A type of annuity in Canada that has met the specific criteria set by the Income Tax Regulations to therefore qualify as exempt from accrual taxation.

Human Resource Management

Present Value

Current value of an amount of money or its value at the beginning of a certain time period.

Human Resource Management

Present Value Factor

The value that an amount of money that is going to be paid at a later date is multiplied to determine the current value of the money.

Human Resource Management

Presumptive Disability

A state that will cause an insured to be deemed totally disabled, such as loss of two limbs, or total hearing loss, or total blindness.

Human Resource Management

Prevailing Wage Rate

The salaries that other employers pay for labor in similar markets. These wages rates are typically used with immigration pay analyses, where General Administrative Letter 2-98 requirements must be met. See www.erieri.com/freedata/hrcodes.

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Price At Exercise

The price of a stock at the time a person exercises the option. This act also determines the option price at a time after the option exercise price is subtracted.

Human Resource Management

Prima Facie Rate

In the United States, that standard premium rate that is suggested by the state regulators for a contributory policy in organization creditor insurance. An insurance company is not allowed to require more than the prima facie rate when the contributory organization creditor insurance policy is initially issued.

Human Resource Management

Primary Beneficiary

The individual or parties of a group that are first to receive the benefits once the benefits of an insurance policy become due.

Human Resource Management

Primary Duty

The principal, main, major, or most important duty that the employee performs. Determination of an employee‘s primary duty must be based on all the facts in a particular case, with the major emphasis on the character of the employee‘s job as a whole. Factors to consider when determining the primary duty of an employee include, but are not limited to, the relative importance of the exempt duties as compared with other types of duties; the amount of time spent performing exempt work; the employee‘s relative freedom from direct supervision; and the relationship between the employee‘s salary and the salary paid to other employees for the kind of nonexempt work performed by the employee. (FLSA Section 541.700)

Human Resource Management

Primary Provider Of Benefits

Under circumstances when coordination of benefits occurs, the medical expense plan that covers the benefits under this plan prior to any benefits being paid by another medical expense plan.

Human Resource Management

Principal Business Activity (PBA)

IRS definition of industry classifications.

Human Resource Management

Prior Service Liability

Liability that relates to services that prior to the plan implementation or is attributed to an increase in benefits for services prior to amendment date.

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PRN

PRN Nurses are part-time nurses that work intermittent schedules on an as-needed basis. These employees are typically not eligible to receive benefits but receive competitive hourly wages and an increased work-life balance.

Human Resource Management

Probability

Several definitions: 1)The chance of something occurring, 2) A mathematical term that is the amount occurrences that something may occur out of a specific amount of occurrences.

Human Resource Management

Probationary Arrangements

Where the parties to an employment agreement agree as part of the agreement that an employee will serve a period of probation or trial after the commencement of the employment. See Section 66 Employment Relations Act 2000

Human Resource Management

Probationary Period

Several definitions: 1) The duration of time between the beginning of an insured person's disability and the start of the policy's benefits. (2) The period between employment or enrollment in a program and the date when an insured person becomes eligible for benefits.

Human Resource Management

Proceeds

The money that the insurer is supposed to pay for a settlement of an endowment policy, an annuity or life insurance policy.

Human Resource Management

process improvement Activities designed to identify and eliminate causes of poor quality, process variation, and non-value added activities.

Human Resource Management

Productivity

A measuring of an operation's efficiency, typically including a comparison of outputs to inputs.

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Professional ethics

the principles and standards that underlie one's responsibilities and conduct in a particular field of expertise (profession).

Human Resource Management

Professional in Human Resources (PHR)

A designation proving mastery of the HR body of knowledge. Initial PHR certification is provided by the Human Resource Certification Institute (HRCI); see www.hrci.org. The ERI Distance Learning Center provides PHR recertification credits. See our Course Credit Map for a list of courses each approved for 1 PHR recertification credit hour.

Human Resource Management

Professional Reinsurer

A insurance company whose major line of business is reinsurance. Sometimes the insurance company may only handle reinsurance.

Human Resource Management

Profit And Loss Statement (P&L)

A detailed summary of the income and expenses of a business over a period of time (usually quarterly, semiannually or annually) showing the net income or loss incurred.

Human Resource Management

Profit Sharing Pension Plan

A money purchase pension plan in Canada that link employer contributions to company profits. Employers are required to make a minimum contribution of 1% of employee earnings, even if the company was not profitable. The plan must adhere to the same legal provisions as pension plans.

Human Resource Management

Profit Sharing Plan

An agreement between an employer and the employees in which the profits of the company are shared with the employees.

Human Resource Management

Profits

The result of selling goods or services for more than the cost of producing them. In investment, profits result from selling a commodities or securities for a higher price than the cost of purchasing them.â&#x20AC;&#x2013;

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program

A significant long-term activity, as opposed to a project. Normally defined as a line item in the organization's budget.

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Progressive Discipline

Progressive discipline is a process for dealing with job-related behavior that does not meet expected and communicated performance standards.

Human Resource Management

Progressive Incentive An employee rewards plan that increases the incentive as the employee performance exceeds predetermined degrees of performance. Formula

Human Resource Management

Progressivity Of Incentives

An employee rewards plan that increases the incentive as the employee performance exceeds predetermined degrees of performance.

Human Resource Management

project

An endeavor with a specific objective to be met within a prescribed time and dollar limitation.

Human Resource Management

Project Management techniques to a broad range of activities to meet the requirements of the particular project."Promotion The advancement of an

Human Resource Management

Projected Benefit Obligation (PBO)

According to the American Society for Quality (ASQ), project management is, "The application of knowledge, skills, tools and employee from one position to another position that has a higher salary range maximum is called a promotion.

The current value of benefits that have accrued for a defined benefit plan, no future service is assumed however, salary increases are anticipated.

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Promotion

Human Resource Management

Promotional Increase An increase in an employees salary due to a promotion.

Human Resource Management

Property Insurance

A kind of insurance that provides a benefit if in the event of theft, accident, fire or another circumstance insured items are lost or damaged.

Human Resource Management

Property Plant And Equipment

Non current assets.

Human Resource Management

Proposal Form

A document in Canada that is provided to a prospective insured with individualized data about the policy and its values.

Human Resource Management

Prospective Normal Retirement Age

The pension that is expected to pay at normal retirement age to any employee that has stayed on the job to the specified date and that employee's salary as it relates to pension is unchanged.

Human Resource Management

Prospectus

A legal document required by the SEC offering securities or mutual fund shares for sale. It must state the offer, including the terms, issuer, objectives if mutual fund or planned use of the money if securities, historical data, business plan and other information about the company.

The (re)assignment of an employee to a job in a higher grade or range in the organizationâ&#x20AC;&#x2DC;s job worth hierarchy.

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Prototype Plan

A standardized pension or employee benefit plan, created to make drafting plans easier for the plan sponsors.

Human Resource Management

Provider Fraud

One type of medical insurance fraud that takes place with the provider tries to grow his/her own income by sending the insurance company fraudulent claims.

Human Resource Management

Provision For Taxes

Earnings on a company income statement report item estimating current year tax liability.

Human Resource Management

Proximate Cause Of Death

A circumstance that is the cause of an event or a death that begins a chain of events that is not broken that ultimately leads to death.

Human Resource Management

Proxy Reporting

An SEC requirement for public corporations to reveal the compensation, in a summary compensation table, of the five highest paid executives.

Human Resource Management

Proxy Statement

The SEC requires that publicly owned companies send out a document that alerts shareholders of the annual meeting, or any other special meetings. The proxy statement will also disclose the issues that will be discussed.

Human Resource Management

Prudent Expert Rule

The sponsor or manager must abide by the legal requirements in that he/she must display specific standards of prudence and competence in accounting for the assets in a pension plan as well as investing the funds of the plan.

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Prudent Man Rules

Common law standard that is supposed to be followed by the trustees of funds. The trustee is expected to act faithfully, with discretion, prudence and intelligence keeping in consideration the probable income and the security of the capital.

Human Resource Management

Purchasing Power

When determining cost of living, an index must be referred to that determines the strength of the dollar for the purchasing of goods and services.

Human Resource Management

Pure Endowment

An amount of money that is only paid to the individuals who remain living for a specific period of time. If they do not live for the certain time period, they do not receive any of the endowment. This is typically illegal unless it is combined with a form of life insurance.

Human Resource Management

Put Option

A stock option contract that gives you the right to sell a specified quantity of the stock at a specified strike price by a specified expiration date.

Human Resource Management

Pyramiding

The process of taking profits that were accumulated from open positions to purchase additional securities without having to use cash.

Human Resource Management

Qualified Annuity

A kind of annuity, in the U.S. that is funded with dollars that are deductible, up to a predetermined maximum from the depositors gross income the year that funds are deposited.

Human Resource Management

Qualified Beneficiary

An individual that is eligible to receive Cobra health care continuation coverage per the Consolidated Omnibus Reconciliation Act of 1985 due to a qualifying event.

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Qualified Costs

The maximum an employer can deduct for tax purposes for contribution to a welfare benefit fund. It equals the fund's qualified direct cost and permitted additions to a qualified asset account, minus the fund's after-tax income for the taxable year.

Human Resource Management

Qualified Domestic Relations Order (QDROS)

Court orders from a state domestic court that are deemed qualified by the plan administrator. QDROs allow the employer to split the retirement benefits of an employee in the event of divorce without breaching ERISA or tax code.

Human Resource Management

Qualified Joint And In the United States, an annuity from a pension plan that provides pension benefits to continue for the spouse of the retired Survivor Annuity (QJ person after they have died. The survivors benefit continues throughout the life of the spouse and cannot be less than 50% or more than 100% of the original benefits for their joint lives. & S)

Human Resource Management

Qualified Medical Child Support Order (QMCSO)

A judgment, decree or order that is issued by a court that requires a group health plan to offer benefits to children of a plan participant.

Human Resource Management

Qualified Plan

A pension or profit sharing plan that the Internal Revenue Service approves as meeting their requirements. These plans may have tax advantages.

Human Resource Management

Qualifying Event

An event that qualifies a participant and dependents to be eligible for COBRA. This event may be a termination of employment (or a reduction in hours), divorce or legal separation, death of a covered employee, a dependent child's loss of dependent status, a covered employee's eligibility for Medicare or loss of coverage due to the employer's filing of a bankruptcy proceeding.

Human Resource Management

Quality

Definition for the Human Resources Glossary Quality is a measure of excellence; quality defines desirable characteristics of a product, a process, or a service.

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Quality management

The process or system of ensuring that a product or service should do what the user needs or wants and has a right to expect. There are five dimensions to quality, design, conformance, availability, safety and field use.

Human Resource Management

Quantitative Job Evaluation

A technique that displays a hierarchy of job worth by examining occupations in terms of certain numerical indexes and factors.

Human Resource Management

Quartile

A value that is divided into four parts. The first part is 25%, the second part 50%, the third part is 75% and the fourth part is 100%.

Human Resource Management

Quebec Pension Plan A plan that mostly provides retirement funds and LTD income to individuals that reside in Quebec. (QPP)

Human Resource Management

Quick Ratio

A measure used by company's to determine liquidity. Equals quick assets divided by current liabilities.

Human Resource Management

Quintiles

A value that is divided into fifths.

Human Resource Management

Quota

A predetermined performance objective.

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Quota Setting

The process of determining quotas.

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Quota Share Reinsurance Plan

A kind of reinsurance plan that the assuming organization reinsures a certain percent of all risks of a specific type insured by the granting company.

Human Resource Management

Rabbi Trust

This nonqualified arrangement, allows the employer to set money aside expressly to pay for excess pensions or deferred pay. Employers do not take a tax deduction, and the beneficiaries do not pay tax on contributions to the trusts until such time that they start receiving their money. Although funds are subject to employer's creditors, they are not accessible to current and future management.

Human Resource Management

Raise

An increase in wages or salary.

Human Resource Management

Random Sampling

A method under which sections of a population are drawn utilizing a procedure by which every member of the population has an equal opportunity to be chosen.

Human Resource Management

Random Testing

Drug and alcohol tests administered by an employer which selects employees to be tested on a random basis.

Human Resource Management

Range

Several definitions: 1) The difference between the maximum value and minimum value, 2) In reference to a pay grade, the amount that the maximum pay exceeds the minimum pay.

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Range Penetration

The level of an individualâ&#x20AC;&#x2DC;s pay compared to the total pay range (rather than compared with midpoint, as in compa-ratio). Range penetration is calculated as:

Human Resource Management

Range Spread

Usually used to determine individual employee pay, this term refers to range of rates, from the minimum to the maximum for a particular class or grade of employees.

Human Resource Management

Ranking Method Of Job Evaluation

A job comparison that results in the ranking of jobs into a hierarchy beginning at the highest and ending at the lowest.

Human Resource Management

Rate

The money rate paid to an employee per hour.

Human Resource Management

Rate Making

The actuarial calculation of rates for insurance products.

Human Resource Management

Rate Of Return Method

A technique that compares the price for life insurance when the important figure is the annual percentage rate that represents the rate of return.

Human Resource Management

Rate Range

Usually used to determine individual employee pay, this term refers to range of rates, from the minimum to the maximum for a particular class or grade of employees.

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Rated Policy

An insurance policy that covers a person classified as a greater than average risk of loss. The policy's premium rate may be higher than the rate for a standard policy or the policy is issued with special limitations or exclusions or both.

Human Resource Management

Rating Classes

Three various techniques that insurance companies use for mortality assumptions to determine group life premiums. The methods are rating are: experience rates, manually rated and blended.

Human Resource Management

Rating Manual

A manual used by underwriters, for determining premium, that includes suggested ratings and very little background for the impairments listed.

Human Resource Management

Ratio

A value that is divided by another value.

Human Resource Management

Ratio Measurements Measurements that show how much or the amount of a quality or an item is being measured.

Human Resource Management

Real Wages

Earnings that are deflated by a price index. Utilized as an index of the purchasing strength of the dollars received from salary.

Human Resource Management

Reasonable And Customary Charge

The typical charge made by providers of similar ability for a similar service in a particular geographic area.

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Reasonable Compensation

Reasonable compensation is a term used by the IRS to define the compensation amount that is a deductible business expense. The issue comes up because stockholder-employees can alter their wages and income distributions to avoid taxes. Under IRC 162 (a), wages are a deductible business expense to the extent wages are reasonable. In an S Corporation, underpayment of wages occurs in order to maximize pass-through income and avoid payment of FICA and Medicare contributions. In a C corporation, wages are maximized and dividends eliminated or minimized to avoid the double taxation of dividends.

Human Resource Management

Rebating

A sales practice in insurance sales that is typically forbidden. Rebating occurs when a sales agent offers the applicant an incentive to buy the policy. The rebate is typically a percentage or a dollar figure of the agent's commission.

Human Resource Management

Rebuttable Presumption of Reasonableness

The rebuttable presumption of reasonableness is a procedure that, once properly invoked, shifts the burden of proof regarding unreasonable compensation to the IRS for purposes of intermediate sanctions excise-tax penalties. Simply put, the presumption is established when: (1) the board or authorized committee, free of any conflict with the executive in question, determines the compensation arrangement prior to effectuating the arrangement, (2) the board or committee uses appropriate compensation comparability data in arriving at its decision and (3) the board or committee properly documents its decision in a timely manner.

Human Resource Management

Reclassification

The (re)assignment of a job to a higher or lower grade or range in the organizationâ&#x20AC;&#x2DC;s job worth hierarchy due to a job content (re)evaluation and/or significant change in the external labor market going rate for comparable jobs. (See WAC 251-01-355 Reallocation)

Human Resource Management

Recognition

Recognition is providing attention or favorable notice to another person. Recognition can be written, verbal, or monetary. In the workplace, the second purpose for employee recognition is to communicate and reinforce the behaviors and actions you'd like to see the employee do more often.

Human Resource Management

Recognition Program A process in which employees efforts and successes are recognized.

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Recording Method

The process of changing the beneficiary in a life insurance policy in which the policyowner provides a written statement to the insurance company.

Human Resource Management

Recovery Benefit

A residual or partial disability benefit that is to be paid upon satisfaction of the company's elimination period, and the employee experiences another loss of earnings due to a previous partial or total disability.

Human Resource Management

Recruiter

Recruiters are employed by a company for the purpose of finding and qualifying new employees for the organization. Third party recruiters are subcontracted to by a company for the same purpose. Several different types of third party recruiters exist, but the main difference between them lies in how they are compensated, up front or by a company-paid percentage of the hired person's first year pay.

Human Resource Management

Recruiting consultancy agency

A recruiting firm is a firm that identifies and helps to procure employees for hiring firms. In contrast to a standard staffing firm, a recruiting firm does not typically place employees within the hiring firm and assume the administrative duties associated with the employees, such as payroll taxes, insurance, etc.

Human Resource Management

Recruitment

The process of bringing into an organization personnel who will possess the appropriate education, qualifications, skills and experience for the post offered.

Human Resource Management

Recruitment Bonuses

Reward payments that are given to new employees to entice them to accept the job offer. The rewards may be paid at the time the employee begins the employment, or over a pre-agreed upon period of time.

Human Resource Management

Red Circle Rate

An individual pay rate that is above the established range maximum assigned to the job grade. Hence, the incumbent is usually not eligible for further base pay increases until the range maximum surpasses the individual pay rate.

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Redundancy

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Re-Enlistment Bonus A monetary incentive paid to an expatriate to stay on the current assignment longer than initially expected.

Human Resource Management

Referral Bonus

Payments that are given to existing employees who recruit new employees as long as the new employee remains employed for a specific period of time, or for a new client that produces new revenue for the organization.

Human Resource Management

Refund Annuity

A life insurance annuity that specifies that if nothing else, the purchase price will be paid in benefits.

Human Resource Management

Regional Director Of Agencies (RDA)

An employee at the insurance company that is responsible for assigning PPGAs for company representation.

Human Resource Management

Registered Pension Plan

A pension plan in Canada that meets the Canadian Minister's National Revenue requirements.

Human Resource Management

Registered Reinsurer A reinsuer in Canada that is licensed to receive reinsurance in certain jurisdictions.

The act of dismissing an employee when that employee is surplus to the requirements of the organization.

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Registered Representative

An individual who has passed the series 7 and series 63 exams and then sells securities and has the legal power of an agent. This representative will typically work for a brokerage firm licensed by the NASD, NYSE and SEC.

Human Resource Management

Registered Retirement Plan

A pension plan in Quebec that has been approved and registered by the Quebec Department of Revenue.

Human Resource Management

Registered Retirement Savings Plan (RRSP)

A policy in Canada that lets Canadian citizens to create tax-sheltered accounts to accrue money for retirement.

Human Resource Management

Regressive Incentive A decreasing incentive rate as performance surpasses previously determined levels.

Human Resource Management

Regular Rate Of Pay

The total compensation that is utilized to determine the overtime rates according the Fair Labor Standards Act. The regular rate for an hourly employee is the hourly pay rate plus some other forms of compensation received by the employee.

Human Resource Management

Reinforcement Theory

A behavior theory that hypothesizes that employees will act in ways that provide rewards as opposed to punishment.

Human Resource Management

Reinstatement

A life insurance company restoring the life insurance benefits of a policy that had been terminated due to nonpayment of premium.

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Reinstatement Provision

A provision in a life insurance policy that states the terms the policyowner must comply with in order for the insurance company to reinstate a terminated policy due to nonpayment of premiums.

Human Resource Management

Reinsurance

A method utilized by insurance companies to distribute insurance risk when one organization has accepted part of the risk for insurance underwritten by a different organization to share in the premium.

Human Resource Management

Reinsurer

An insurance carrier that provides reinsurance policies to other carriers.

Human Resource Management

Relation Of Earnings A part of some individual disability policies that places a limitation on the benefit that an insurance company pay if the total To Insurance Clause disability benefit from all insurers is more than the insured's earnings.

Human Resource Management

Relative Value Schedule

A surgical procedure schedule that describes the costs for surgical procedures in units as opposed to dollars.

Human Resource Management

Reliability

Refers to the reproducibility of results with any criterion or method. Also see validity.

Human Resource Management

Religious Discrimination

The failure of an employer to make a reasonable accommodation to allow the employee or employees to observe a religious holiday or practice, except in the event that the employees absence would create hardship on the employers business.

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Relocation Premium

A lump sum of money given to an expatriate to help with the unusually expensive costs associated with relocation.

Human Resource Management

Remembrance Funds

A fund that provides items such as obituary notices, flowers or small gifts in the event of illness, termination, hospitalization, or death for the employee or for a member of the employees family. This fund is exempt from reporting for ERISA purposes.

Human Resource Management

Remote-SiteAllowance

A specific type of payment that is given to an employee if a work site is difficult to reach or isolated.

Human Resource Management

Remuneration

The sum of the financial and nonfinancial value to the employee of all the elements in the employment package.

Human Resource Management

Remuneration Loss Replacement

Remuneration Loss Replacement Plans cover employees from wage loss due to: 1. sickness and injury, 2. weekly indemnity, 3. short-term disability, 4. long-term disability. The employers contributions to these plans are not a taxable benefit to the employee. However, receiving benefits under the plan is a taxable benefit to the employee.

Human Resource Management

Remuneration Strategy, Philosophy, The characteristics that assist in the administration and implementation of a remuneration plan at a company. Policy

Human Resource Management

Renewable Term Insurance

A kind of term insurance that includes a renewal clause that at the end of the term the insured can renew the coverage without going through evidence of insurability.

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Renewal Commission

Commissions that are paid to an agent for a certain period of years, typically nine, after the initial policy year. The renewal commission rates are typically lower after the first year, and commission is only paid on the policies that remain in force.

Human Resource Management

Renewal Premiums

Premiums that are payable after the first premium payment.

Human Resource Management

Renewal Provision

Several definitions: 1) A stipulation in an individual health policy that discussed the conditions upon which the insurer will not renew coverage, can cancel coverage or can increase the premium, 2) An individual life insurance policy stipulation that allows the policyowner to continue coverage at the end of the term without going through evidence of insurability.

Human Resource Management

Renter's Buying Power

The salary equivalent after taking into account the cost of living in the region.

Human Resource Management

Replacement

The giving up of an insurance policy or a part thereof in order to purchase another.

Human Resource Management

Replacement charts

A summarization in visual form the numbers of incumbents in each job or family of jobs, the number of current vacancies per job and the projected future vacancies. See Succession planning.

Human Resource Management

Reportable Event

Several definitions: 1) This is a term used in the United States and it means an event indicating that a pension plan may be deteriorating financially, to the extent that the plan could be terminated. Events such as those have to be reported to the Pension Benefit Guaranty Corporation (PBGC). (2) An occurrence, the result of which is that a defined-contribution is materially changed or that a defined-benefit plan is changed materially. This event may be a change of formula, an acquisition or a divestiture.

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Representation

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Request for proposal A document an organization sends to a vendor inviting the vendor to submit a bid for a product or, service. (RFP)

Human Resource Management

Required Reserve

Peculiar to Canada, this is a reserve, which the insurer is obligated to maintain by the department of insurance in the province in which the insurer operates and or by a foreign jurisdiction, if that is where the insurance company operates.

Human Resource Management

Rescission

A remedy in equity under which an insurance company may void an insurance contract or have it declared null and void. A rescission is typically granted in a situation where there has been a misrepresentation, deemed to be material, on the insurance application. See Representation.

Human Resource Management

Reservation Wage

People make decisions, not by evaluating all alternatives but by developing a model in their head of an acceptable solution. Doing this creates a situation in which economists state that wages are â&#x20AC;&#x2022;noncompensatory.â&#x20AC;&#x2013; This means that there is some wage below which job seekers will NOT accept a particular job offer. This is the reservation wage. Other factors will not substitute for this amount. This wage may or may not be related to the going wage.

Human Resource Management

Reserve

Several definitions: 1) Usually, this is an account, which establishes the amount needed to pay future claims. (2) If used in terms of Life Insurance, 'Reserve' refers to policy reserve. (3) In terms of investments, 'reserve' includes savings, social security payments, investment portfolios and insurance. See also policy reserve.

Human Resource Management

Reserve For Future Contingent Benefits

In terms of health insurance, this is an amount established as reserve for claims, which though may already have been incurred may be dependent on the happening of a future event, which may be beyond the control of the insurance company. May also be for deferred maternity benefits.

This is a statement or declaration by an individual making an insurance application, upon which the insurance company bases its decision.

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Reserve Strengthening

This is the process whereby additional policy reserves are set up, using a formula determined in a disability income policy. The percentage of income lost is usually what determines the amount of the benefit. See partial disability benefit.

Human Resource Management

Resisted Claim

This term is used to describe a claim, which the insurance company has refused to pay but which it may have to pay at a later date.

Human Resource Management

Resource

An Internet term, which may be used to refer to a wide variety of things (e.g., a Web page, part of a Web page, computer devices, people, or other entities).

Human Resource Management

Resource Description A computer framework that is easily understood by computers, that is utilized to express what terms and concepts mean. Framework (RDF)

Human Resource Management

respect

The regard and recognition of the absolute dignity that every human being possesses. Respect is treating people as they should be treated. Specifically, respect is indicative of compassion and consideration of others, which includes a sensitivity to and regard for the feelings and needs of others and an awareness of the effect of one's own behavior on them. Respect also involves the notion of treating people justly.

Human Resource Management

Responsibility

A duty or set of duties describing the main objective or the reason for a job existing.

Human Resource Management

Rest-And-Recreation Considered to be distinct and separate from regular vacation and or home leave, this is time off, which is granted to expatriates from time to time especially to those working in areas where living conditions are very difficult. Leave

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Restricted Stock

This is stock given to an employee or which is sold to an employee at a discount. The employee is typically prevented from selling or otherwise disposing of the stock for a specified period. The employee, owns any dividends deriving there from but if he or she should leave the company before the period of restriction, then he or she forfeits the stock.

Human Resource Management

Restrictive covenant

A contract clause requiring executives or other highly skilled employees to refrain from seeking and obtaining employment with competitor organizations in a specific geographical region and for a specified period of time.

Human Resource Management

Restructuring

Describes any number of methods of reorganizing a company resulting in dramatic change within the company. Benefits are usually short term but may be long term and the main objective is typically to discourage take-over bids.

Human Resource Management

Result Clause

This clause, when found in an employment contract, is there to exclude benefits from being paid on losses caused by acts related to war. May also be known as war-hazard exclusion.

Human Resource Management

Retained Asset Account (RAA)

Established by insurance companies for the beneficiaries of life insurance, this is a money market checking account, which bears interest.

Human Resource Management

Retention

Several definitions: 1) In terms of reinsurance, this describes the risk that the insurance company/the ceding company keeps. (2) In terms of a company's insurance agreement, this is the part of the premium, which the company keeps for the purpose of covering expenses, charges, risks and contribution to the surplus.

Human Resource Management

Retention Bonus

Retention Bonus is typically used for positions that experience high levels of turnover, such as nurses. The Retention Bonus is paid in a lump sum at the end of a specified period of employment such as 6 months or one year.

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Retention Limit

This is the limit of risk that an insurance company will assume, without ceding a part of the risk to another company, on any individual.

Human Resource Management

Retired Lives Reserve

A fund set up by some employers into which they pay monies on the behalf of employees, throughout the period of their employment, for the purpose of providing life insurance to the employees upon their retirement.

Human Resource Management

Retiree Benefit Reserves

In order to protect retirement benefits and to reduce non-funded liabilities of the company, many companies create reserves for payment of future health and insurance obligations.

Human Resource Management

Retro Premium

This is an amount agreed upon by the insurance company and the owner of the policy at the beginning of the paying period but which is to be paid at the end, if and only if the insured party's claim experience calls for it.

Human Resource Management

Retroactive Disability Benefits payable at the on-set of disability but whose first payment does not occur until after a specified elimination period. Benefit

Human Resource Management

Retrospective Premium Arrangement

An insurance arrangement where, the insurance company's margin / cut is waived from the premium but the insurance company still maintains the right to 'call' the margin up to a certain percentage, depending on the insured's claim experience.

Human Resource Management

Retrospective Review

An aspect of a utilization review system, which provides the insurance company with reports, periodically, on the practice patterns of physicians and the average lengths of hospital stay.

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Retrospective-Rating the insured party at the beginning of the payment period and the remainder is collected at the end, unless the insured party's Arrangement claim experience is better than anticipated.

Human Resource Management

Return On Assets (ROA)

This term describes the ratio of net income to total assets of an organization. This is a major financial measure, which is sometimes used as a determining factor in the establishment of incentive plans.

Human Resource Management

Return On Capital Employed (ROC, ROTC, ROCE)

Represents a companies earnings before interest and tax divided by capital employed plus short term borrowings minus total intangibles. ROCE takes into account all the assets employed in the course of business including loans and measures the return the company made on them. If a company has a low ROCE, it is using its resources inefficiently, even if it has a high profit margin.

Human Resource Management

Return On Equity (ROE)

Frequently used as an incentive plan measure, this is a term employed to describe returns due to shareholder by aligning profits to the equity of stockholders.

Human Resource Management

Return on investment A ratio of the benefit or profit derived from a specific investment compared to the cost of the investment itself. (ROI)

Human Resource Management

Return On Net Assets (RONA)

This is a way of measuring the overall earning power and or profitability of a company. It is the ration of the total assets (minus liabilities) to the net income. May be used as a measure for executive incentive plans. Compare with ROC and ROTC.

Human Resource Management

Return On Sales (ROS)

Sometimes used to establish executive incentive plans, this is an important financial measure, which represents the ratio of net income and sales.

A type of funding for insurance agreements, in which the insurance company collects a percentage of the due premium from

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Return On Selected (Or Employed) Assets (ROSA, ROEA)

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Return On Frequently used as an incentive plan measure, this is a term employed to describe returns due to shareholder by aligning Shareholders' Equity profits to the equity of stockholders. (ROSE)

Human Resource Management

Revenue

Money, which is generated by a company form the sale of their services or goods.

Human Resource Management

Revocable Beneficiary

A term employed to describe a beneficiary to a life policy whose rights as beneficiary does not vest for so long as the insured party is alive and who may be cancelled at any time (during the life time of the party insured).

Human Resource Management

Revocable Trust

A revocable trust is one that may be cancelled at any time by either the grantor or by another person. Unlike the irrevocable trust, estate taxes are not avoidable with the revocable trust. See revisionary trust and vivos trust.

This is a term employed to describe the ratio of the net earnings of a company to the assets, which are relevant to those earnings. This is an important measure, which is sometimes a criterion in incentive plans for the executives of a company.

Human Resource Management

Rewards System

As more companies look for better ways to attract, retain and motivate good employees, in a competitive labor market, the pressure is growing to get rid of the old methods of compensation (which focuses on money and nothing else) and for new methods to be developed (which would be varied and which would encompass more). As much as money is important, it has been shown that both job seekers and employees value advancement possibilities, emotional rewards and learning and rank those highly on lists of today's best companies attribute list. The reward system is a compensation method/package, which includes all of those attributes.

Human Resource Management

Rider

Also known as an 'endorsement', this is an amendment made to an insurance contract, which then becomes part of the agreement by expanding or by limiting the existing terms.

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Right Of Survivorship

A clause, which is sometimes included in transfers / assignments of life policies, providing that, should an assignee die, his or her survivors are entitled to his or her part of the transfer / assignment.

Human Resource Management

Right to manage

The â&#x20AC;&#x2014;rightâ&#x20AC;&#x2DC; of management to make decisions and to run an organization without interference from external or internal forces.

Human Resource Management

Rightsizing

This is the term used to describe the elimination of non-essential / redundant positions in order to reduce the size of the work force to the smallest possible size that it can be without negatively affect operations. The employees who are not laid off at the end of this process are known as residual employees.

Human Resource Management

Risk Class

In organizational insurance, these are groups of insureds that represent ostensibly similar risk, in the eyes of the insurance company. The most common classes of risk are, standard, substandard, preferred, non-smoker and uninsurable.

Human Resource Management

Risk In Insurance

This is the fact that the occurrence of loss of or lack there of is uncertain.

Human Resource Management

Risk management

The use of insurance and other strategies in an effort to minimize an organizationâ&#x20AC;&#x2DC;s exposure to liability in the event a loss or injury occurs.

Human Resource Management

Risk Premium

This is a term used to describe the reward for accepting an investment considered to be risky (an investment with greater risk than the U.S. Treasury Securities). See premium, risk premium and Capital Asset Pricing Model.

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Risk-Free Rate Of Return

U.S. Treasury Securities are considered to be risk free and so this term would be used to describe the yield / gain on U.S. Treasury Securities. A risk-free rate pf return is frequently used to determine the cost of capital.

Human Resource Management

Rollover

This is the process of re-investing distribution from one qualified plan of a prior employer to another or investing it in an individual retirement account (IRA). Roll-overs are tax -free transfers of account balances.

Human Resource Management

Room and Board

To receive room and board or transportation benefits tax free the employee must: (1) be on temporary assignment, (2) must have a permanent residence elsewhere, (3) this residence must be available for his/her use, (4) the work site be too far to return to nightly, and (5) must be on assignment for over 36 hours.

Human Resource Management

Roth Individual Retirement

Beginning in 1998, taxpayers can make nondeductible contributions of up to $2000 a year into a new Roth Individual Retirement Account

Human Resource Management

Rucker Share Of Production Plan

A program whereby certain cost savings resulting from an employee's effort will be shared with all employees.

Human Resource Management

Safe Harbor

Safe harbors are regulations that describe certain acts or behaviors, which are not illegal under a specific law, even though they might otherwise be illegal.

Human Resource Management

Safety Margin

In terms of life insurance, this is the amount the probability of mortality (per age) is increased by actuaries in mortality tables. The safety margin provides the insurance company with added security incase of an adverse experience.

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Salaried

This is the compensation, which is received by an employee, weekly, monthly or yearly as opposed to an hourly pay. Typically, this applies to employees of higher levels with non-repetitive jobs that may or may not be supervisory in nature. These positions are exempt from the Fair Labor Standards Act provisions.

Human Resource Management

Salaried Sales Agents

These sales representatives are actual employees of the insurer and their compensation is typically a combination of a base salary plus commission. Salaried sales agents may work independently or they may work with other agents. They may make direct sales or they may promote the insurer's product by pitching sales to middlemen. May also be known as salaried sales representatives.

Human Resource Management

Salaried Sales Distribution System

A method of distribution method, which uses the salaried employees insurance companies to sell and to service insurance policies. Salaried sales staff may either work independently or they could work with agents and are frequently used for the distribution of organization insurance products.

Human Resource Management

Salary

Human Resource Management

Salary Budget

Money designated, over a specific amount of time, with which to pay salaries. When structure adjustments and or individual employee adjustments are being planned, the salary budget must be taken into consideration.

Human Resource Management

Salary Compensation exchange for their contributions to an organization. They do not include bonuses, stock options, life insurance, 401(k) plans, or

Human Resource Management

Salary Continuation Plan

Cash payments made to an individual for services during a given year. These are payments made to employees in direct other benefits.

A sick leave and or disability plan providing for employees to receive up to 100 percent of their salary for a certain amount of time, should they become sick or disabled.

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Salary Increase

The difference between an organization's current pay and what it plans to pay in the future. Salary increases can be given based upon merit (such as pay for performance), cost-of-living increases, or matching what competing organizations pay. In the latter case, wage surveys are used to determine the amounts of salary increases.

Human Resource Management

Salary Increase Budget

Salary increase budget represents the difference, which exists, between a company's current pay and the goal it has or where it foresees its pay levels reaching in the future.

Human Resource Management

Salary Range

Usually used to determine individual employee pay, this term refers to range of rates, from the minimum to the maximum for a particular class or grade of employees.

Human Resource Management

Salary Reduction Plan

Salary reduction plans are ones in which deductions are made from the employees salary prior to the calculation of income for tax purposes.

Human Resource Management

Salary Structure

The structure of job grades and pay ranges established within an organization. The salary structure may be expressed in terms of job grades, job evaluation points or policy lines.

Human Resource Management

Salary Structure Change

This term is employed to describe the adjustment of a wage structure. Typically, it is expressed as the average percentage change between the range midpoints of the old structure and the new structure.

Human Resource Management

Salary Surveys

Salary surveys are used by organizations to determine what the 'market rate' is for jobs or skills used in their organization. Paying a competitive wage is important for attracting and maintaining an adequate workforce.

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Salary-Reduction Plan

This is available in most companies and is a system where the employee has to the option to ask pay-roll to reduce the his or her cash compensation and for the company to contributed the difference to the employee's pension plan, insurance plan or any other benefit plans available to employees.

Human Resource Management

Sale Of Stock

This is the exchange of shares in return for its cash value.

Human Resource Management

Sales

Money, which is generated by a company form the sale of their services or goods.

Human Resource Management

Sales Channel

A resource with which to access potential customers.

Human Resource Management

Sales Compensation

This is the amount, which is paid to members of the sales team of a company. This amount typically varies according to the degree to which individual representatives attained or surpassed their set goals.

Human Resource Management

Sales Compensation sales related jobs, compensation for those kinds of jobs are typically incentive (or commission) based. Compensation plans for sales type jobs may be fall into any of the following categories, Commission only, salary only plans, Commission-plus-draw Plans

Human Resource Management

Sales Cycle

Sales compensation plans differ from the other types of compensation plans. Due to the fact that results are measurable in

plans, Salary-plus-commission plans, and or Salary-plus-bonus plans.

This is typically, the time from which a potential customer is identified and the time when the sale was closed.

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Sales Illustration

Typically in graphic form, this is a tool used by agents to illustrate the benefits of the insurance policy he or she is trying to sell.

Human Resource Management

Salvage Value

The estimated value obtainable for an asset, which has passed its useful life.

Human Resource Management

Sample

In terms of statistics, this unit, which is representative of a class drawn from and studied in order to estimate the characteristics of an entire population. A random sample is where each member of the population has the same chance of being chosen. Convenience sample, on the other hand, is when units are selected, not at random but on the basis of what is easily available or accessible

Human Resource Management

Sampling Errors

These are possible errors, which may occur due to the lack of complete information in the analysis of jobs. May also be caused by the misinterpretation of data or answers to survey questions. May be due to bias or the misuse of procedures used in statistics.

Human Resource Management

Savings (Thrift) Plan whereby the employees make a contribution and the employer matches the contribution according to a pre-established rate

Human Resource Management

Savings Bank Life Insurance (SBLI)

This is a type of life policy, which authorized savings banks sell to those who reside and or work within the state in which the policy is offered. Three states, in the United States, permit SBLI (Connecticut, Massachusetts and New York).

Human Resource Management

Scanlon Plan

This is a profit sharing program whereby employees share in pre-established cost savings, which are due to employee effort. Formal employee participation is necessary with the Scanlon Plan, as well as periodic progress reporting and an incentive formula, all of which are pre-established.

Set up by employers, this is plan established for the purpose of systematically providing for capital accumulation by employees, and limit. See 401(k).

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Scattergram

Also known as a scatter plot, this is a mathematical technique that displays a picture of the existing relationship between any two variable. It does this by plotting two (x,y) points.

Human Resource Management

Scheduled Dental Plan

This is a dental plan that pays fixed amounts of benefits for certain procedures according to a pre-established schedule. See also combination dental plan and unscheduled dental plan.

Human Resource Management

Scheduled Hours

This represents the number of hours that an employee is scheduled to work in a given work period as opposed to the number of hours actually worked.

Human Resource Management

Scope

The set of quantifiable job characteristics that ascribe value to a job. Typical characteristics include number of subordinates, size of budget managed, and sales volume of the organization.

Human Resource Management

Scope Data

These are particular numbers (usually sales or number of employees) used for selecting appropriate salary survey figures to determine going rates for a job or organization of jobs.

Human Resource Management

Screening Interview

Screening interviews are used to qualify a candidate before he or she meets with a hiring authority for possible selection. Screening interviews are usually quick, efficient and low cost strategies that result in a short list of qualified candidates. These interviews save time and money by eliminating unqualified candidates via phone or email.

Human Resource Management

SEC

The SEC is the principal federal regulatory agency, which regulates the securities industry. The main function of the SEC is to promote full disclosure and it exists to protect investors, in the securities market, against practices that are fraudulent and or manipulative. SEC enforces several acts, including but not limited to the Securities Act of 1933, the Securities Exchange Act of 1934, the Trust Indenture Act of 1939, the Investment Company Act of 1940 and the Investment Advisers Act.

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Sec Management Compensation Reporting

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Secondary Source Of This is a term employed, in job analysis, to describe any source of job related information other than the person whose job is being analyzed and or his direct supervisor. Job Information

Human Resource Management

Second-To-Die Life Insurance

Life insurance, which insures two people and the benefit is paid after the death of both participants. Typically, this is designed to make funds available to cover estate taxes. See survivorship life insurance.

Human Resource Management

Section 3460

In Canada, Section3460 of the Canadian Institute of Chartered Accounts (CICA) contain recommendations relating to employer's accounting for obligations and pension costs. The recommendation made by Section3460 is that, for defined benefit plans, the projected benefit method should be the determinant for pension costs for accounting purposes.

Human Resource Management

Section 401(K) Plan

In the United States, a deferred profit sharing and or stock-bonus plan permitting participants to decide the extent to which their compensation is deferred. Contributions of participant are not taxable until that time when the funds are withdrawn. Contributions of sponsor and investment earnings are both also tax-deferred. Also known as Cash or Deferred Arrangement (CODA).

Human Resource Management

Section 403(B) Plan

This is a type of retirement plan, typically established by certain tax-exempt organizations (i.e., charities, churches and hospitals). Section 403(b) plans are a creation of congress to serve as incentive to tax-exempt organizations, which ordinarily would not benefit from the tax advantages of qualified pension plans. The section 403(b) plan enables such organizations to offer their employees retirement compensation, albeit in a slightly different form. Educational organizations may also set up section 403(b) plans. May also be referred to as a tax-deferred annuity (TDA) plan or a tax-sheltered annuity (TSA) plan.

Human Resource Management

Section 415 Limits

This the limit imposed on the amount of annual contribution that can be made on the behalf of a participant of a defined contribution plan. There is also a limit placed on the amount of benefits payable to a participant of a defined benefit plan. These limits are set under Section 415 of the Internal Revenue Code. See contribution limit and maximum benefit.

The annual reporting to the SEC by publicly traded corporations requires the reporting of the annual salary, bonus, and all other payments to the company's five top executive officers.

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Secular Trusts

A secular trust is a part of a nonqualified deferred compensation plan. In a secular trust, the employer contributes to an irrevocable trust to provide post-employment benefits to the executive. The executive has a nonforfeitable right to the assets of the trust at the time the trust is established however, the employee is not entitled to these assets until an event such as the employee's retirement, death, or termination of employment with the employer.

Human Resource Management

Securities And Exchange Commission (SEC)

Human Resource Management

Segmentation

This is when an insurer divides general investment accounts into parts, corresponding to the insurance company's prime lines of business.

Human Resource Management

Segregated Account

Known as and called a 'separate account' in America, this is the Canadian version. A segregated account is an asset account standing apart from the general account of a company.

Human Resource Management

This table includes data exclusively on people who have recently purchased life insurance. Experience has shown that such people have a lower mortality rate in the years immediately following their insurance purchase than those who have been Select Mortality Table insured for a longer period, probably because they have recently passed a medical examination, and because they are younger.

Human Resource Management

Self-Administered

Section 79

Section 79 of the Internal Revenue Code provides that employer contributions to purchase company term life policy receive preferential tax treatment. It also lists specifications that a plan is required to meet before being considered a nondiscriminatory organization term insurance plan for tax purposes.

A type of benefit plan whereby the company is responsible for the administration of the plan in every way, including the administration of claims and the investment of assets.

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Self-Administered Organization Insurance Plan

In this kind of organization insurance plan, the policyholder and not the insurance company performs the major part of the administrative work necessary for the plan. The policyholder keeps detailed records of organization membership, handles routine requests (e.g., for beneficiary changes and name and address changes etc.).

Human Resource Management

Self-Administered Trusteed Plan

This is a retirement plan whereby contributions for the purchase of pension benefits are made to a bank (known as the trustee), which in turn makes investments with the money and pays benefits to eligible employees from the monies accumulated and interests earned.

Human Resource Management

self-directed work team

A small independent, self-organized, and self-controlling group in which members plan, organize, determine, and manage their duties and actions, as well as perform many other supportive functions.

Human Resource Management

Self-Funding (SelfInsurance)

A method of funding a benefit plan, where the employer bears the risk for claims. An employer may contract, if it so wishes, with a third party for it to pay claims on the company's behalf.

Human Resource Management

Self-Insured Organization Insurance

A type of insurance whereby the organization sponsor and not an insurance company, has the responsibility for the payment of claims made by the insured parties. A company may be completely or partially self-insured. See also administrative services only (ASO) contract.

Human Resource Management

Self-Insured Plans

There are two parts of any insurance policy. (1) Risk assumption. (2) Processing of the claims. In self-insurance, the organization itself, takes on the risk of payment, typically by placing money that would have been paid as premiums into a fund with which claims are paid. Self-insured plans are usually taken on by very large organizations because it would take only one sizeable claim for a small fund to be wiped out.

Human Resource Management

selfless service

the proper ordering of priorities. Think of it as service before self. The welfare of the organization come before the individual. This does not mean that the individual neglects to take care of family or self. Also, it does not preclude the leader from having a healthy ego or self esteem, nor does it preclude the leader from having a healthy sense of ambition. It does, however, preclude selfish careerism.

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Senior Professional in A designation for experienced HR professionals provided by the Human Resource Certification Institute (HRCI). See www.hrci.org for initial SPHR certification. The ERI Distance Learning Center provides SPHR recertification credits. See our Human Resources Course Credit Map for a list of courses each approved for 1 SPHR recertification credit hour. (SPHR)

Human Resource Management

Seniority

A privileged status attained by length of continuous service in a campany.

Human Resource Management

Separate Account

As its name implies, this is an account, which is separately maintained from the general accounts of a life insurance company. The separate account facilitates the management of the non-guarantee insurance product funds. The maintenance of separate accounts enables insurance companies to modify their investment strategies, while not adversely affecting general accounts funds. In Canada, this is known as segregated account. See investment-sensitive life insurance and general account.

Human Resource Management

Separate Account Contract

A pension plan funding channel, whereby the assets of the pension are invested through a separate account of the insurance company. This kind of insurance policy, typically does not offer any guarantees as to investment performance. May also be known as an investment facility contract.

Human Resource Management

Separate Health Benefit Account (401(H))

A method of funding used for health insurance benefits meant for retirees, which is either a part of defined benefit or a defined contribution plan but in which the funds for the health benefits are held separately.

Human Resource Management

Separate Lines Of Business

Organizations may seek to have different benefit plans for different segments of the company. They may do this by seeking to establish separate lines of business. This is done by identifying all the property and services provided to customers during the testing year and then designating which portion of the property and services is provided by each business. Employers may use their discretion to determine their lines of business in a manner that conforms to their business operations.

Human Resource Management

Separation From Service

Separation from service is a termination of employment for any reason other than a quit, discharge, retirement, or death, regardless of the duration of such absence.

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Sequential Exercise

When an employee exercises stocks in the same order that he received them, it is known as 'sequential exercise'. Though, no longer applicable, this was a stock option incentive requirement.

Human Resource Management

Service Providers

Service providers are people such as lawyers, accountants, third party administrators, and actuaries. They are not fiduciaries as long as they stay within professional boundaries. However, fees paid to service providers must be reasonable compared to the services received.

Human Resource Management

Settlement

The word settlement may refer to various things. An action, revocable in nature, which relieves a plan sponsor of the obligation to pay pension benefit. See financial benefit.

Human Resource Management

Settlement Agreement

An arrangement between an insurance company and a policyowner (or beneficiary) relating to the method in which the insurance company will pay proceeds of the policy to the beneficiary. See settlement options.

Human Resource Management

Settlement Option Payments

Payments made, from time to time, by insurance companies, instead of lump sum payments of the proceeds of life insurance.

Human Resource Management

Settlement Options

These are the option given to Social Security Disability Income (SSDI) policyowners (or beneficiaries). In America, this is longterm income program for those who are disabled yet who are under 65 and who have paid a particular amount of Social Security tax for a specified amount of time.

Human Resource Management

seven tools of quality Tools that help an organization understand its processes in order to improve them

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Severance / Benefits is paid either on a continuation basis or in a lump sum. The amount of the severance is typically contingent upon the length of Continuation time the employee served the company.

Human Resource Management

Severance Pay

In most countries, though not the U.S., severance pay is mandatory any time an employee is terminated. The purpose of severance pay is to soften the blow of unemployment, upon the termination of an employee. Typically, severance pay is equal to one week's pay for each year worked for the severing company (may be more and it may be less). In the U.S. severance pay is considered a welfare plans and is subject to the Employee Retirement Income Security Act's reporting, disclosure, and fiduciary standards. Severance payments are taxable to employees and usually are subject to federal income tax withholding and FICA.

Human Resource Management

Sex Discrimination / range of human resource decisions regarding employees. In addition, the Equal Pay Act prohibits paying men and women Sexual Discrimination differently for the same or substantially similar jobs, and Title IX prohibits discrimination by gender in educational institutions.

This is a term employed to describe the continuation of the salary of an employee after he or she has been terminated, which

Gender is one of the protected groups under the Civil Rights Act. Thus gender, in and of itself, may not be used in a whole

Human Resource Management

Sexual Harassment

In the United States, Title VII prohibits two kinds of sexual harassment: quid pro quo and hostile work environment. When a quid pro quo case is proven, employers automatically are liable. Employers are liable only under certain circumstances when hostile work environment is proven. Quid pro quo cases require that the unwelcome sexual demand on the employee be made by someone with the ability to grant or deny an employee some benefit. Also, there must be a link between the demand for sex and the granting or denial of the benefit. Hostile work environment cases must involve pervasive, unwelcome sexually charged behavior that is directed toward an employee by someone in the workplace.

Human Resource Management

Shapes Of Distribution

This a term employed to describe data, as charted on a graph.

Human Resource Management

Shareholder

Several definitions: 1) In terms of corporations, a shareholder is an individual who owns shares (of stock) in a company. Ownership of shares of stock comes with the right to dividends when it is declared and voting rights in certain company matters (e.g., board of directors). (2) May also be an individual who owns shares in a mutual fund. Both my also be known as stockholder.

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Shareholder Protection Formula

This is a formula used by companies and which is related to bonus plans whereby a pre-established percent of the profit is set aside to be distributed to shareholders, before any of it is made available to employees as bonus awards.

Human Resource Management

Shareholders' Equity

This is the amount with which a company's assets surpasses its liabilities. It represents the net-worth of a company, its true value. Also known as Net Worth.

Human Resource Management

Sherman Anti-Trust Act (1890)

This Federal law was enacted in order to protect the general public from corporate monopolies. This law has, since 1908 applied to Unions, who have used the statute to ensure that competitive wages are paid.

Human Resource Management

Shift Differentials (premiums)

Extra pay allowances made to employees who work on a shift other than a regular day shift, if the shift is thought to represent a hardship, or if competitive organizations provide a similar premium. Shift differentials usually are expressed as a percentage or in cents per hour.

Human Resource Management

Short-Form Reinstatement Application

This is an application designed to protect against the re-enrollment of insureds whose conditions have changed dramatically since the last due date of their premium. This application is typically used for reinstatements, which were requested within a relatively short period, (e.g., 30 to 90, days after the end of the grace period).

Human Resource Management

Short-Term Assignment (International)

A term employed by companies to describe assignments, which lasts over three months, known as 'business trip' but less than a year, known also as 'expatriate assignment'. The premiums which become payable varies from company to company.

Human Resource Management

Short-Term Disability This is insurance that provides benefit for both short term and long-term (the first part of long-term) disability. Income Insurance

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Short-Term Disability but only when the employee is expected to return to his or her regular duties within a particular amount of time (typically 6 Plan months).

Human Resource Management

Short-Term Incentives

Rewards, which are based on the achievement of short-term goals (typically 12 months or less).

Human Resource Management

SIC

The U.S. Standard Industrial Classification (SIC) system is a U.S. federally designed system that identifies companies by industry with a standard numbering system. It provides other information and is used by securities analysts, market researchers, and others. The SIC is being replaced by the North American Industry Classification System (NAICS). The current SIC Division Structure may be found online at www.osha.gov/cgi-bin/sic/sicser5.

Human Resource Management

Sick Leave

Sick leave means providing pay for employees when not working due to illness or injury. It may start on the first day of illness or after two or three days. In developing a sick leave policy the following points need to be considered: (1) When are employees eligible? (2) Will proof of sickness be required? (3) What pay schedule will be used and will the employee receive full pay? (4) How much sick leave can be accumulated and what is done about unused sick leave? (5) May sick leave be used for taking care of family members?

Human Resource Management

Simple Plan

First allowed in 1997, this is a kind of qualified retirement plan (IRA or 401(k)) for companies with over 100 employees.

Human Resource Management

Simplified Employee Pension (SEP)

This is a pension plan that an employer may make contributions retirement income to, using individual retirement annuities or accounts. Under the SEP employers may directly contribute directly to Individual Retirement Accounts, amounts, which have been deferred by employees. Typically the SEP is cheaper to operate and therefore most commonly used by employers who are unable to afford more complex pension plans.

Human Resource Management

Simultaneous Death Act

This law is typically enacted on a state or province level and it provides that, should the insured and the first beneficiary both die under such conditions that it is not possible to determine who died first, it will be deemed that the insured in fact survived the first (primary) beneficiary (unless there exists a clause in the policy to the contrary.

A benefit plan, whose goal is to provide income to employees who are absent from work either through illness or an accident

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Single Premium Annuity

This is an annuity, which is purchased with a single, one time payment / premium. May also be known as an immediate or a deferred annuity.

Human Resource Management

Single Purchase Annuity Contract

This is an annuity, which is purchased with a single, one time payment / premium. May also be known as an immediate or a deferred annuity.

Human Resource Management

Single-Premium Deferred Annuity (SPDA)

This is an annuity, which is purchased with a single, one time payment / premium. May also be known as an immediate or a deferred annuity.

Human Resource Management

Single-Premium Method

This is an insurance premium payment arrangement for plans that are contributory in nature, where at the moment that the loan is granted, all the premium that will be due for the insurance is paid, up front / in a lump sum by the borrower or added to the principal amount of the loan. May be contrasted with monthly outstanding balance method.

Human Resource Management

Single-rate System

A remuneration policy under which all employees in a given job are paid at the same rate instead of being placed in a pay range. Generally applies in situations where there is little room for variation in job performance or skill level.

Human Resource Management

This is a pre-existing condition exclusion clause typically found in credit disability insurance policies, which provides that a disability will not be covered if the party insured was treated for the disability during the six months preceding the effective date Six And Six Exclusion of the commencement of coverage. May frequently also provide that an insured party will not be covered if he or she becomes disabled from the same ailment / condition within six month post commencement of coverage date.

Human Resource Management

Skewed Distribution

This is a series of data that is plotted and non-symmetric in nature, which has a tail of extreme values going in a single direction.

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Skill-based Pay

A person-based remuneration system based on the repertoire of jobs an employee can perform rather than the specific job that the employee may be doing at a particular time. Pay increases generally are associated with the addition and/or improvement of the skills of an individual employee, as opposed to better performance or seniority within the system.

Human Resource Management

skills (competencies)

Those abilities that people develop and use with people, with ideas, and with things, hence, the division of interpersonal, cognitive, and technical skills.

Human Resource Management

Skills Inventory

Typically used by employment agencies, personnel departments and contract programming companies who wish to set up and maintain a file for candidates and their associated qualifications. Once all the data is in place and information about a potential candidate is entered along with particular job requirements, then a search can be done for the candidate or candidates who meet the requirements.

Human Resource Management

Slope

The slope of the line represents how much each unit change of the independent variable X changes the dependent variable Y. The slope (m) tells you how hard it would be to run up the straight line, i.e. how steep it is. The larger "m" is, the steeper the slope. A perfectly horizontal line has a slope of zero. A line that makes a 45-degree angle with its base has a slope of 1.

Human Resource Management

Slotting

The process of placing a position / a job into a hierarchy of jobs using other methods of evaluating jobs. This process entails the comparison of one job to others, already exist in the hierarchy of jobs.

Human Resource Management

Small Business Job Protection Act (SBJPA)

This statute simplifies pension provision. SBJPA also extends the tax breaks provided by employers for educational assistance, increases the federal minimum wage, provides special rules on employee/independent contractor determinations, and allows employers to establish new qualified adoption assistance benefits for employees.

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Small Estates Statutes

These statutes makes it possible for an insurance company to pay fairly small amount of the policy proceeds to an estate without having to get involved in court proceedings.

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Small Organization Insurance Plan

A species of organization life insurance plan, which uses organization underwriting techniques but adds a certain degree of simplified individual underwriting and is designed to insure groups of 2 to 25 people. Also known as baby organization plan.

Human Resource Management

Small-Group Incentive

Any incentive plan, which focuses, primarily on the performance of a small group (typically a work team).

Human Resource Management

SOC

The SOC is a Canadian system used by statistical agencies to categorize workers into occupational groups so as to collect, calculate, and disseminate data. Workers will be grouped into a particular classification of occupation (of which there are over 820) depending on their definition. To make classification easier, occupations will be combined so as to form 23 main groups, 96 sub-groups and 449 broad categories of occupations.

Human Resource Management

Social benefits

FInancial help in time of sickness, old age, or uneployment.

Human Resource Management

Social Insurance Supplement Policy

This is medical expense insurance, which is sold to provide for benefits, which compliment that available from a determined government health insurance plan.

Human Resource Management

Social Security

Social Security is a federal government program that is part way between a tax plan and social insurance. Employers and employees pay payroll taxes to fund its two programs - Old Age Survivors' and Disability Insurance

Human Resource Management

Social Security Act

The Social Security Act is the Act passed in 1935 establishing the social security system in the United States.

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Social Security The Social Security Administration is the U.S. government bureau that administers the social security system. There are 12 Administration (SSA) regional offices, as well as offices in most major cities in the United States.

Human Resource Management

Social Security Level Under this option, employees may chose to have monthly annuity payments (before the age of 62 or 65) increased actuarially and thereafter, that payments be decreased. Income Option

Human Resource Management

Social Security Tax

Generally known as FICA taxes, after the Federal Insurance Contribution Act, these taxes are imposed on wages paid to employees to fund Social Security benefits for employees. Both the employer and the employee must pay FICA tax on an employee's annual wages from the employer up to the Social Security taxable wage base. This tax is divided into 2 components: Medicare and the Old Age Survivors and Disability Insurance (OASDI) component.

Human Resource Management

Sole Proprietor

A sole proprietor is the 100% owner of a business, which is not incorporated.

Human Resource Management

Sole Proprietorship Insurance

This is a kind of life insurance on the life of the sole proprietor of a company. The purpose of this is to cover the cost of paying salary of the person employed to run the business after the owner of the company dies, is disabled or in to compensate the family of the owner for loss of possible / potential income, should the business fail after the disability or death of the sole proprietor.

Human Resource Management

Soliciting Agent

Insurance companies frequently work with a general agent or sometimes a branch manager. The soliciting agent actually makes contact with potential customers, collects the first premium payments and delivers policies. See Insurance agent.

Human Resource Management

Special Vocational Preparation (SVP)

The amount of time required by a typical worker to acquire skills for average performance. There are nine levels of time duration required by a typical worker to acquire skills for average performance in the subject position, 9 being the highest and 1 being the lowest. For more information on SVP, please refer to the Dictionary of Occupational TiItles or U.S. Department of Labor.

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Special Work Location

Ordinarily, payment by the employer of room and board and/or transportation costs are considered taxable income. Exceptions may be made for special work locations and remote locations. In addition, those employees living in northern areas of Canada may be eligible for a tax deduction.

Human Resource Management

Specified Fringe Benefits

Benefit plans for specific purposes including group-term life, accident and health, group legal services, cafeteria plans, educational assistance programs, and dependent care assistance programs.

Human Resource Management

Spendable Income

This is the total income minus housing expenses, taxes, savings, and life insurance.

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Split Credit

Credit is given to more than one individual.

Human Resource Management

Split Dollar Life Insurance

The employer and employee share in the expenses, equity and death benefits of the policy.

Human Resource Management

Split Funding

The use of two or more funding agencies for the same pension plan. An arrangement whereby a portion of the contributions to the pension plan are paid to a life insurance company and the remainder of the contributions are invested through a corporate trustee, primarily in equities.

Human Resource Management

Spot Awards

Spot Awards are a frequently administered ―alternative pay‖ program for non-exempt and exempt non-management personnel. They are usually cash or gift awards delivered ―on-the-spot‖ for extraordinary performance, completion of a project, and/or individual recognition. These awards are typically administered at the discretion of management.

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Spouse And Children's Insurance An additional rider to the life insurance plan that covers a spouse and child. Rider

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Springing Rabbi Trust

Trusts might be 'springing,' meaning that assets are transferred to the trust upon a triggering event - usually a change of control.

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Stacking

Not paying benefits under a public pension plan. When there is no integration of two plans- private and public. This is considered stacking.

Human Resource Management

Stakeholder

Any party that has an interest ('stake') in a firm.

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standard

An established norm against which measurements are compared. The time allowed to perform a task including the quality and quantity of work to be produced.

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Standard And Poors (S&P)

Investment rating service.

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Standard Deviation

The square root of the variance. A measure of dispersion of a set of data from its mean.

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Standard Error Of Estimate

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Standard Industrial This federally designed system identifies companies by industry with a standard numbering system. It provides other Classification System information and is used by securities analysts, market researchers, and others. (SIC)

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Standard Metropolitan Statistical Area (SMSA)

A central city area and its surrounding suburbs and small jurisdictions.

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Standard Nonforfeiture Law

State law stating what the minimum benefits a life-insurance policy can have.

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Standard Occupational Code (SOC)

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Standard Plan Termination

The termination of a plan that has sufficient funds to pay for any and all benefits the participants may be entitled to.

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Standard Premium Rate

The premium rate for a person considered to be average in the chance of experiencing a loss.

An estimate of the variability or random error of the sample to the population.

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Standard Rate

Designated rate for a specific job classification, established by evaluation or performance.

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Standard Risk Class

In life and health insurance, a person entitled to insurance protection without extra rating or special restrictions, a risk meeting the same conditions as the tabular risks on which rates are based.

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standard time

The length of time that should be required to perform a task through one complete cycle. It assumes an average worker follows prescribed procedures and allows time for rest to overcome fatigue.

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Starting Rate

Refers to the wage or salary to which an employee is assigned upon entering the job.

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State Disability Insurance Program (SDI)

A plan for accident and sickness, or disability insurance required by state legislation of those employers doing business in that particular state.

Human Resource Management

State Unemployment are used to provide benefits for unemployed workers. The amount paid by the employer depends upon the experience of Tax Act (SUTA) claims by former employees on the fund.

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Statute Of Limitations State law that sets a time limit within which legal action must be taken.

The State Unemployment Tax Act (SUTA) provides that employers pay a payroll tax that supplies funds at the state level that

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Statutory Accounting Principles required by statute that must be followed by an insurance company when submitting its financial statements to the various state insurance departments. Such principles differ from the Generally Accepted Accounting Principles (GAAP). Practices (SAP)

Human Resource Management

Statutory Benefits

Benefits that are required by statutory law. In the United States, for example, workers' compensation, Social Security and unemployment insurance are required, benefits vary among countries. Companies operating in foreign countries must comply with host country compensation and benefits mandates.

Human Resource Management

Statutory Reserve

In insurance, especially life, a reserve, either specific or general, required by law.

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Statutory Stock Options

Gives an employee a right to purchase company stock usually at a bargain price.

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Step Rates

Standard progression pay rates that are established within a pay range. Step rates usually are a function of time in grade and are often referred to as â&#x20AC;&#x2022;automaticâ&#x20AC;&#x2013;. However, they can be variable or can be used in conjunction with merit programs.

Human Resource Management

Stock

A certificate of ownership, a contract between the issuing corporation and the owner that gives the latter an interest in the management of the corporation, the right to participate in profits and, if the corporation is dissolved, a claim upon assets remaining from all debts that have been paid.

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Stock Appreciation Rights (SAR)

An executive can receive the difference between the stock option price and current market price of the company's stock without buying any, often used in conjunction with an incentive stock option.

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Stock Bonus Plan

A qualified defined contribution plan established and maintained by an employer to provide benefits similar to those of a profitsharing plan, except that the contributions by the employer are not necessarily dependent upon profits and the benefits are distributable in stock of the employer company. For the purpose of allocating and distributing the stock of the employer that is to be shared among employees or their beneficiaries, such a plan is subject to the same requirements as a profit-sharing plan.

Human Resource Management

Stock Bonus Planning

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Stock Insurance Company

An insurance company that is owned by people who buy shares of the company's stock.

Human Resource Management

Stock Option

The right, but not the obligation, to buy company stock at a certain price within a particular period of time.

Human Resource Management

Stock Option Incentive

A special benefit that some companies offer to their employees to purchase stock at a fixed price. Companies usually award incentive stock options as a bonus for performance, or as an incentive to get you to work harder.

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Stock Ownership

Consisting of one or more shares that have been purchased, which then entitles the owner to a share of the company, and declared dividends.

Human Resource Management

A plan that allows senior management or other key personnel to purchase employer stock. Certain restrictions apply: (1) the stockholder must be employed for a particular length of time, (2) the employer has the right to buy back the stock and (3) Stock Purchase Plan stockholders cannot sell the stock for a specific time period. (Qualified) A program under which employees buy shares in the (Nonqualified) employer's stock. The employer contributes a certain amount for each unit of employee contribution. Also, stock may be offered at a fixed price (usually below market) and paid for in full by the employees.

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Stock Repurchase Insurance

Insurance used to repurchase company stock from a deceased stockholder.

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Stock Sale

When a buyer takes ownership, full, of the company entirely.

Human Resource Management

Stock Split

A division made of the capital stock of a corporation to create more shares, primarily to improve marketability and heighten investor interest. Stock splits are generally on a two-for-one basis (two shares of new stock are made exchangeable for one share of old).

Human Resource Management

Stock Swap

Allowing an executive to deliver already-owned stock, instead of paying cash, to exercise a stock option.

Human Resource Management

Stop-Loss Provision

An insurance provision stating that the insurance company will pay all expenses after a set amount of out-of-pocket expenses has been paid.

Human Resource Management

Straight Life Annuity

An annuity that lasts for the length of the annuitant's life and stops all payments at the time of death.

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Straight Life Income Option

An insurance option that states that benefit payments will be made to the beneficiary until the beneficiary dies and that at that time all payments cease.

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Straight Life Insurance

Whole life insurance on which premiums are payable for life.

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Straight Line Depreciation

A method of calculating the depreciation of an asset, which assumes the asset, will lose an equal amount of value each year.

Human Resource Management

Strategic Business Unit (SBU)

Independent business unit within a company that markets its own products.

Human Resource Management

Strategic HRM

The process of aligning human resources more closely to the strategic and operating objectives of the organization.

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Strategic Planning

The process of identifying an organization's long-term goals and objectives and then determining the best approach for achieving those goals and objectives.

Human Resource Management

Strength Rating

The overall physical strength required to perform a job is expressed as a strength rating.

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stress

The real or perceived demand on the mind, emotions, spirit, or body. Too much stress puts an undo amount of pressure upon us and drives us into a state of tension. Controlled stress is good as it is what motivates us.

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Strikes

To refuse to continue working because of an argument with an employer about working conditions, pay levels or job losses.

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Subchapter S Corporation

This is a type of corporation, which does not have its gains taxed at the corporate level but rather the tax is passed down to the shareholders who then are required to report the gains on their individual tax returns.

Human Resource Management

Subject Matter Expert customer service agent, account manager, or website programmer might qualify if the individual is an authority on the subject (SME) matter.

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Subpoena / Subpeonas

To order (someone) to go to a court of law to answer questions or to order that (documents) must be produced in a court of law.

Human Resource Management

Subrogation

Taking over of a debt from the original creditor. In insurance, subrogation is the right of the employer or insurance company to recoup benefits paid to a participant through a legal suit, if the action causing the disability and subsequent expenses was the fault of another person.

Human Resource Management

Substandard Broker

A broker that specializes in substandard risk.

Human Resource Management

Substandard Premium Rate

A premium rate, generally higher than a standard premium, charged on a substandard risk.

An individual who shows a high degree of expertise at performing a job, task, or skill in an organization. For example, a

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Substandard Risk Class

A risk class with a greater chance of loss than the average person.

Human Resource Management

Succession Planning

Succession planning is a process whereby an organization ensures that employees are recruited and developed to fill each key role within the company. Succession planning ensures you can fill key roles from within your organization.

Human Resource Management

Successor Employers A successor employer is one who has taken over the assets and liabilities of another company.

Human Resource Management

Successor Owner

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Suggestions Awards Allows employees a monetary or incentive reward for company savings ideas or a unique idea.

Human Resource Management

Suicide Clause

An insurance provision that states that no benefits will be paid if the insured dies as a result of suicide. (This is often limited to a set period of time following the issue of the insurance policy.)

Human Resource Management

Summary Annual Reports (SAR)

Summaries report on the financial status of an employee benefit plan, must be given to participants.

A person designated to become the owner of a life insurance policy if the owner dies.

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Summary dismissal

The act of dismissing personnel immediately, usually because the person has committed some act of Gross Misconduct.

Human Resource Management

Summary Plan Description (SPD)

A requirement of ERISA for a written statement of a plan in an easy-to-read form, including a statement of eligibility, coverage, employee rights and appeal procedure. It is provided to participants, beneficiaries and, upon request, the Department of Labor.

Human Resource Management

Superannuation

Plan or scheme that provides benefits in the event of retirement, death or disability. Can refer to private company plans as well as industry or union funds. Frequently used in British Commonwealth countries.

Human Resource Management

Superimposed Major A medical plan used in conjunction with basic medical plans that provides coverage if expenses exceed what is covered by the basic plans. Medical Plan

Human Resource Management

Superintendent Of Insurance

The head of the Bureau of Insurance.

Human Resource Management

supervising

The ability to establish procedures for monitoring and regulating processes, tasks, or activities of employees and one's own job, taking actions to monitor the results of delegated tasks or projects.

Human Resource Management

Supper Money

A fringe benefit for employees working overtime. It is a monetary allowance provided for an evening meal.

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Supplemental Death Benefits (Supplemental Life Insurance)

This is an additional layer of coverage you may purchase to help financially protect your family if you die.

Human Resource Management

Supplemental Disability Benefits

A benefit provided that goes beyond the company provided disability plans.

Human Resource Management

Supplemental Executive Retirement This is an additional layer of coverage you may purchase to help financially protect your family if you die. Plan (SERP)

Human Resource Management

Supplemental Long A long-term disability that goes above and beyond the standard plan. Term Disability Plans

Human Resource Management

Supplemental Major Medical Insurance

This coverage is designed to insure expenses not covered by a basic medical plan. Covered persons are first reimbursed for their medical expenses under the employer's basic plan, usually with no deductible or co-payment applied, to the extent that the basic plan covers the expenses. Expenses not covered by the basic plan can be reimbursed under the supplemental major medical plan, usually after the satisfaction of a corridor type deductible. After the covered expenses exceed the deductible, the major medical plan takes over and typically pays a percentage, such as 80%, of the covered expenses in excess of the deductible amount. There frequently is a limit on the amount of covered expenses that are subject to a coinsurance provision, after which the covered expenses are reimbursed in full.

Supplemental Nurse

A Supplemental Nurse is employed by an agency and may work either short or long-term assignments in a hospital or other health care facility. Supplemental Nurses provide specific nursing skills and may be referred to as a â&#x20AC;&#x2022;traveling nurse professional.â&#x20AC;&#x2013; Pay rates for these positions are usually better than per diem or staff rates with flexibility in scheduling or shift preference.

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Supplemental Organization Life Insurance

Additional life insurance that is purchased to provide benefit coverage beyond the company sponsored plan.

Human Resource Management

Supplemental Unemployment Benefits (SUB)

Amounts provided under a labor contract as additions or supplements to the unemployment compensation provided by law.

Human Resource Management

Supplemental Unemployment Compensation Benefits

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Supplementary Benefit Rider

Benefits provided by a pension plan in addition to regular retirement benefits. Supplemental benefits vary according to the terms of a plan and include such items as the payment of benefits in the event of terminations, death, disability or early retirement.

Human Resource Management

Supplementary Contract

A document or rider attached to an insurance policy and made a part of it, providing for an additional benefit or some modification of a benefit already contained in the policy.

Human Resource Management

Supplementary Contract With Life Contiguous (WLC)

A supplementary contract or annuity in which the duration of the payment period depends on the lifetime of the beneficiary.

Human Resource Management

Supplementary Contract Without Life A supplementary contract or annuity where the proceeds of a life insurance policy are held at interest or paid in installments. Contingencies

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Supplementary Notice

The Fair Credit Reporting Act requires it. Notice to a consumer of the nature and scope of the investigation mentioned in the pre-notice form that an insurance company has sent to the client.

Human Resource Management

Supplementary Shift Bonus

A Supplementary Shift Bonus is sometimes used to reward employees who fill in for another employee who calls in sick.

Human Resource Management

Surgical Schedule

In a basic medical expense health insurance policy, the list of cash allowances that are payable for various types of surgery, with the respective maximum amounts payable based upon the severity of the medical procedure. The stipulated maximum usually covers all professional fees involved (e.g., surgeon, anesthesiologist).

Human Resource Management

Surplus

An excess amount. In financial terms, this is the remainder of assets left after debts, expenses, and liabilities are deducted.â&#x20AC;&#x2013;

Human Resource Management

Surrender Charge

A charge for the cancellation of an insurance or annuity policy.

Human Resource Management

Surrender Cost Index money due at different times through interest adjustments to the annual premiums, dividends and cash value increases at an (SCI) assumed interest rate.

Human Resource Management

Survey

In life insurance, a method of comparing costs of similar policies by using an index that takes into account the time value of

An examination of opinions, behavior etc., made by asking people questions.

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Surviving Spouse

A widow or widower.

Human Resource Management

Survivor Income Benefit

A type of group life insurance, which provides income benefits if a 'qualified survivor' survives the insured. Usually the qualified survivor category includes only the insured's spouse and children.

Human Resource Management

Survivorship Life Insurance

Life insurance covering two people that do not pay benefits until both have died.

Human Resource Management

Suspension

A form of disciplinary action resulting in an employee being sent home without pay for a specified period of time.

Human Resource Management

SVP

Specific Vocational Preparation is defined as the time required by the average worker to acquire techniques and to gain the necessary knowledge and information in order to perform averagely in a particular job or work situation.

Human Resource Management

Tactical Planning

Deals primarily with the implementation phase of the planning process.

Human Resource Management

Tag

A code within a data structure that gives instructions for formatting or other actions. World Wide Web documents are set up using HTML tags, which serve various functions such as controlling the styling of text and placement of graphic elements and providing links to interactive programs and scripts.

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Take Home Pay

Pay actually received by an employee after adding on bonuses, but deducting taxes.

Human Resource Management

Talent Management

Talent Management, often times referred to as Human Capital Management, is the process recruiting, managing, assessing, developing and maintaining an organization‘s most important resource—it‘s people!

Human Resource Management

Tangible rewards

Rewards which can be physically touched or held (i.e. a gift certificate, gifts in the form of merchandise, or a savings bond.)

Human Resource Management

Target Benefits

Contributions are based upon an actuarial valuation designed to provide a target benefit to each participant upon retirement. The plan does not guarantee that such benefit will be paid, its only obligation is to pay whatever benefit can be provided by the amount in the participant's account.

Human Resource Management

Target Compa-ratio

The organization‘s planned average (or total) salary for the organization, group or individual at year-end as a percent of the corresponding average (or total) midpoint.

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Target Compensation Expected pay for a job or position. This would include all avenues of compensation. (Base pay, incentives, bonuses, etc.)

Human Resource Management

Target Performance

Expected sales results.

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Target Total Compensation

The complete cash compensation available to sales representative, for achieving sales goals.

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Task

Actions to accomplish an objective.

Human Resource Management

Tax Deferred Annuity Offered by savings and loans, brokers and others, it offers high interest rates when the account is opened, but future interest rates are not guaranteed. Tax is deferred on the account until money is withdrawn. (Tda)

Human Resource Management

Tax Equalization

A tax reimbursement system intended to ensure the expatriate neither gains nor loses, with regard to income tax, from undertaking an expatriate assignment. A hypothetical tax amount is deducted and the company then meets any additional host country tax liability on the entire package.

Human Resource Management

Tax Equity And Fiscal Responsibility Act Of 1982 (TEFRA)

Lowered limits on contributions and benefits for corporate plans. Allowed certain loans from plans to be treated as distributions. Reduced estate tax exclusion for retirement plan death benefits to maximum of $100,000. Repealed special Keogh plan and subchapter S restrictions. Added 'top-heavy' plan requirements. Stopped employers and health plans from forcing employees ages 65 to 69 to use Medicare rather than group health plan.

Human Resource Management

Tax Protection

Under this system, the expatriate pays no more in income tax than if they had remained at home, the company meeting the host tax bill in excess of the assumed home country liability. No hypothetical tax deductions are made, thereby allowing the expatriate to gain where the host country tax liability is lower than the home country assumed liability.

Human Resource Management

Tax Reform Act Of 1986

Dictated extensive changes in the law governing the qualifications of pension and profit sharing plans and the tax treatment of employers and employees. Imposed the comprehensive nondiscrimination rules of IRC Section 89.

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Tax Sheltered Annuities (TSAs)

This describes special regulation under IRC Sections 501(c)(3) and 403(b) wherein employees of certain institutions may reduce their income by permitting the employer to pay part of their earned income into a deferred annuity.

Human Resource Management

Tax Sheltered Annuity (TSA)

Human Resource Management

Taxable Benefits

In Canada, there are two criteria for determining if a benefit is taxable: (1) The person receiving the benefit must have received the benefit as part of the employment relationship. (2) The person must receive or enjoy the benefit.

Human Resource Management

Taxpayer Identification Number Your social security number (SSN) for yourself as an individual, or your employer identification number (EIN) for your business. (TIN)

Human Resource Management

TCN

Third Country Nationals are citizens of one country who are employed by a company headquartered in a second country to work in a third country.

Human Resource Management

Telecommuting

Working at home by using a computer terminal electronically linked to one's place of employment.

Human Resource Management

Temporary Insurance An agreement that provides temporary insurance for a short period of time, such as during the period in which regular insurance is being written. Agreements

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Temporary Life Annuity

A series of payments, structured like an annuity that continues for a limited amount of time.

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Ten-Day Free Look

Free Examination.

Human Resource Management

Term Insurance

Insurance in which the benefit is payable only if the loss occurs during a specific period of time.

Human Resource Management

Term Or Period Certain

A contract that provides an income for a specified number of years, regardless of life or death. If an annuitant dies, his or her beneficiary will receive payments for the remaining number of specified years.

Human Resource Management

Term Policy Dividend

A life insurance policy dividend option under which policy dividends are used as a net single premium to purchase one-year term insurance.

Human Resource Management

Termination Expenses

The cost of processing death benefit claims and cash surrenders.

Human Resource Management

Termination Indemnity

Obligation by law for payments on separation based on age, service or reason for termination.

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Territory

Area a salesperson covers.

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Testamentary Disposition

How the terms of a will divide the testator's (will writer's) estate, including specific gifts to named beneficiaries.

Human Resource Management

theory of constraints (TOC)

A management philosophy developed by Dr. Eliyahu M. Goldratt that is broken down into three interrelated areas - logistics, performance measurement, and logical thinking. Logistics include drum-buffer-rope scheduling, buffer management, and VAT analysis. Performance measurement includes throughput, inventory and operating expense, and the five focusing steps. Logical thinking includes identifying the root problem (current reality tree), identifying and expanding win-win solutions (evaporating cloud and future reality tree), and developing implementation plans (prerequisite tree and transition tree).

Human Resource Management

Third Country National (TCN)

Citizens of one country who are employed by a company headquartered in a second country to work in a third country.

Human Resource Management

Third Party The party to an employee benefit plan that may collect premiums, pay claims and/or provide administrative services. Usually Administration (TPA) an out-of-house professional firm providing administrative services for employee benefit plans.

Human Resource Management

Third Party Administrator

The party to an employee benefit plan that may collect premiums, pay claims and/or provides administrative services. Usually an out-of-house professional firm providing administrative services for employee benefit plans.

Human Resource Management

Third Party Application

An insurance application submitted by a person or party other than the proposed insured.

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Third Party Beneficiary

A person not a party to a contract, yet who has legally enforceable rights under the contract. Such a person might be a life insurance beneficiary, a mortgagee holding an assignment, or a member of a group insurance plan.

Human Resource Management

Third Party Endorsement

A method of marketing individual insurance to groups. In the third-party endorsement method, a life insurance company makes an agreement with an organization (such as a club, a business, or a professional association) to sell individual insurance to members or employees of the organization. The organization endorses the insurer's products, but the group members are free to buy the products or not.

Human Resource Management

Third Party Insurance Insurance coverage applied for by someone other than the proposed insured.

Human Resource Management

Three Factor Contribution Method

A method for calculating policy dividends, considering separately the contributions arising from interest, mortality, and loading.

Human Resource Management

Threshold

A starting-point Example, on the threshold of a new career.

Human Resource Management

Thrift Plans

A defined contribution plan to which employees make contributions on an after tax basis, usually as a percentage of salary. The employer also makes incentive matching or partially matching contributions on behalf of the participating employees.

Human Resource Management

Tiered Pay Plan

A remuneration system that differentiates salary based on time of hire (i.e., new employees are paid less than current employees for performing the same or similar jobs) as well as on nature of work performed.

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Time Off With Pay

Compensation that is paid to the employee, based on pay for holidays, vacation, sick leave, lunch periods, and other approved time off.

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Time Span Of Discretion

A non-economic definition of job value.

Human Resource Management

Timing Of Payment

When payment is received early, current, or deferred.

Human Resource Management

Top Hat Plans

An unfunded deferred compensation plan or welfare plan that is maintained to provide deferred compensation for a select group of management or highly compensated employees.

Human Resource Management

Top Heavy Plans

A qualified plan in which the share of benefits allocable to key employees is more than 60%. The plan may be subject to special accelerated vesting provisions and minimum contribution rates.

Human Resource Management

Tort

A civil wrongdoing that creates a claim thatâ&#x20AC;&#x2DC;s to be tried in court before a jury.

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Total Annual Cash Compensation

The sum of all cash payments made to an individual for services during a given year.

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Total Cash Compensation

The sum of all monetary payments made to an individual for services (i.e., employment) during a given year.

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Total Compensation

The sum of all payments made to an employee for a specific time period (usually annual) including base salary, incentives, and bonuses (and/or other variable pay such as commissions).

Human Resource Management

Total Direct Compensation

In executive compensation, total annual cash compensation plus the annualized value of long-term incentives.

Human Resource Management

total employee involvement

An empowerment technique where employees participate in actions and decision making that were traditionally reserved for management.

Human Resource Management

Total Needs Programming

A basis for selling life insurance in which the agent takes into consideration all the prospect's financial needs, calculates the amount of money required to take care of all those needs, determines the amount of money required to take care of all those needs, determines the amount of funds that will be available when the prospect dies, and calculates the amount of life insurance required to provide the difference.

Human Resource Management

Total Net Pay

The amount paid to an expatriate consisting of the sum of his or her base salary, expatriation premium and allowances less the tax equalization factor.

Human Resource Management

Total Payroll

The sum of wages paid at the opening of business on the first day of the plan year or the last day of prior year.

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total quality management (TQM)

Describes Japanese style management approaches to quality improvement. It includes the long term success of the organization through customer satisfaction and is based on participation of all members of the organization in improving process, products, service, culture, etc.

Human Resource Management

Total Remuneration

The sum of the financial and nonfinancial value to the employee of all the elements in the employment package (i.e., salary, incentives, benefits, perquisites, job satisfaction, organizational affiliation, status, etc.) and any other intrinsic or extrinsic rewards of the employment exchange that the employee values.

Human Resource Management

Total Shareholder Return (TSR)

The total return of a stock to an investor (capital gain plus dividends).

Human Resource Management

Totalization Agreements

Social security arrangements between countries intended to protect the social security benefits of employees who move between countries and ensure single country social security coverages for employees on assignment.

Human Resource Management

Traditional Net Cost Method (TNC)

An insurance policy cost comparison method that is prohibited by the NAIC Model Life Insurance Solicitation Regulation primarily because it ignores the time value of money.

Human Resource Management

Training and development

A process dealing primarily with transferring or obtaining knowledge, attitudes and skills needed to carry out a specific activity or task.

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Training Needs Analysis

A method of analyzing how employee skill deficits can be addressed through current or future training and professional development programs, as well as determining the types of training/development programs required, and how to prioritize training/development.

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trait

A distinguishing quality or characteristic of a person. For a trait to be developed in a person, that person must first believe in and value that trait.

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Transfer

A Transfer is the movement of an employee to a job having the same value as the one that was occupied at the time of the move. A transfer will typically not provide an adjustment in pay since it is a lateral, rather than an upward move as in a promotion.

Human Resource Management

Travel Accident Benefit

Health insurance policies that limit the payment of benefits to losses that result while traveling, usually by common carrier.

Human Resource Management

Treasury Shares

Common stock that has been issued and reacquired (purchased) by the corporation from the public at the current market price.

Human Resource Management

Treasury Stock Method

The method used in calculating diluted earnings per share whereby common stock equivalents such as unexercised stock options exist. Generally accepted accounting principles require that this method be used in calculating and reporting.

Human Resource Management

Tri-Modal

A distribution having three modes.

Human Resource Management

Triple Indemnity

A type of accidental death benefit coverage that pays an additional benefit equal to twice the policy's basic death benefit if the accident is sustained while the insured is a passenger in a public conveyance operated by a licensed common carrier, such as a bus, train, or airplane.

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Trust Agreement

In a trusteed pension plan, the contract between the plan sponsor and the trustee that describes the trustee's authority and responsibilities for investing and administering plan assets. Trust agreements are also found when group insurance is provided through a multiple-employer trust (MET).

Human Resource Management

Trust Fund

Assets held in a trust.

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Trust Fund Plan

A pension plan in which all contributions are sent to a trustee who then invests the contributions and makes any benefit payments.

Human Resource Management

Trusteed Pension Plan

A pension plan in which the corporation's contributions to the plan are placed in a trust for investment and reinvestment, as distinguished from a plan in which the benefits are secured by life insurance.

Human Resource Management

Trustees

A person, bank or trust company that has responsibility over financial aspects (receipt, disbursement and investment) of funds. Where a bank or trust company, a board of trustees does not exercise this responsibility in which the individual trustee has but one vote usually exercises it.

Human Resource Management

Turnover

Describes changes in the work force resulting from voluntary or involuntary resignations.

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Twisting

In life insurance, inducing an insured through misrepresentation to drop an existing policy in order to take a similar policy from the selling agent. Twisting is cause for license revocation in most states and is an offense that is against the law in many states.

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U.S. Adopted Child precluded from applying pre-existing condition exclusions to an adopted child where no such exclusion applies to a newborn Health Care Mandate biological child.

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U.S. Minimum Wage The lowest wage, determined by law or contract, that an employer may pay an employee for a specified job.

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U.S. Permanent A green card holder who is considered a permanent resident alien. They are entitled to all the rights, privileges and obligations Resident Alien Status of an American citizen except the right to vote.

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Ultimate Mortality Table

A table of data that excludes the first 5 to 10 years of experience of those who have purchased life insurance. A Mortality Table shows the number of deaths per 1000 within a grouping of people. Experience has shown that people have a lower mortality rate in the first years after they purchase insurance, and this can skew the data. By excluding this information the Ultimate Mortality Table is believed to give a more accurate portrayal of actual mortality rates.

Human Resource Management

Unallocated Funding

A method of funding a pension plan in which the pension funds as a whole are held and managed by a funding agency, often an insurance company, and are not allocated to specific plan participants.

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Unappropriated Earned Surplus

The amount of an insurer's surplus remaining after determination of an insurer's reserves, capital, and other surplus amounts.

Human Resource Management

Unbundled Insurance The process, of an insurance product, in which the mortality, investment, and expense factors used to calculate premium rates and cash values are each identified in the policy. Product

Under COBRA, group health plans must treat adopted children like biological children covered by the plan, and plans are

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Unclaimed Benefits

There are no payees to be found in the collection process of claims.

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Unclaimed Property Statutes

Statutes that regulate the disposition of funds for which no owner can be found. Insurers typically hold unclaimed property for seven years. If the rightful owner is not found during this time, the property is turned over to the state.

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Underfunded Pension A pension plan that has a negative surplus. Plan

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Underwater Options

An outstanding option where the option price is above the stock's current market price.

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Underwriter

Several definitions 1) the company that receives the premiums and accepts responsibility for fulfilling the policy contract, (2) the company employee who decides whether or not the company should assume a particular risk or (3) the agent who sells the policy. (Investments) With respect to a mutual fund, the entity responsible for marketing the shares of the fund. See also Investment Banker.

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Underwriting

The process of identifying and classifying the potential degree of risk represented by a proposed insured. (Investments) The procedure by which investment bankers channel investment capital from investors to corporations and municipalities.

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Underwriting Department

The department in a life and health insurance company that selects the risks that the company will insure.

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Underwriting Impairments

Factors that increase an individual's risk above that which is normal for his or her age.

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Underwriting Requirements

Printed instructions that indicate what evidence of insurability is required for a given situation and which of several optional information sources will be needed to provide underwriters with necessary information.

Human Resource Management

Unemployment Compensation

Payments made under state-administered programs to workers who are unemployed and meet the requirements of the law involved to qualify for such payments. The requirements usually are (1) that the worker not be unemployed voluntarily. (2) That the worker has worked in employment that is 'covered' by the law. (3) That the worker be willing and able to take employment offered him or her. (4) That an initial period (the waiting period) of unemployment elapse before compensation is due. Programs are entirely employer financed except in four states that require small employee contributions.

Human Resource Management

Unemployment Insurance

In Canada, a federal statute that provides unemployment insurance to almost all persons who are employed in Canada.

Human Resource Management

Unemployment Insurance Act

In Canada, a federal statute that provides unemployment insurance to almost all persons who are employed in Canada.

Human Resource Management

Unexercised Options The rights that have not yet been exercised. They may consist of both exercisable (vested) and non-exercisable (non-vested) rights. / SARS

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Unfunded Commitments To Executives

A nonqualified compensation plan in which future Financial commitments have been made to an executive organization. The compensation plan has not been secured with funds that have been put aside for that purpose.

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Unicasting

Human Resource Management

Uniform Accident And Model legislation governing health insurance contracts, in Canada. It has been agreed upon by the Canadian Council of Sickness Insurance Insurance Regulators (CCIR) and enacted with minor variations by all the common law jurisdictions. Act

Human Resource Management

Uniform Distribution

It looks 'flat' when graphed. A symmetrical distribution in which the frequency in each interval is about the same.

Human Resource Management

Uniform Life Insurance Act

Model legislation governing life insurance contracts, in Canada. It has been agreed upon by the Canadian Council of Insurance Regulators (CCIR) and enacted with minor variations by all of the common law jurisdictions.

Human Resource Management

Uniform Pension Plan A prototype pension plan (see prototype plan), in Canada, developed by members of the Canadian Life and Health Insurance Association and approved by the appropriate Canadian regulatory authorities. (UPP)

Human Resource Management

Uniform Resource Locator (URL)

An acronym for Uniform Resource Locator, a URL is the address for a resource or site (usually a directory or file) on the World Wide Web and the convention that web browsers use for locating files and other remote services.

Human Resource Management

Unilateral Contract

A contract in which only one party promises to do something.

Over a network, communication between a sender and single user.

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Uni-Modal

Distribution having only one mode.

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Uninsurable Risk Class

Individuals with a risk of loss so great that an insurance company will not offer them insurance.

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Union Welfare Fund

A union organized fund, and one or more employers to which contributions are made by the employer(s) so that organization benefits can be made available to the union's members.

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Unions

Groups of workers who have formed incorporated associations relating to the type of work that they perform.

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Unit-Benefit Formula A method of calculating benefits for a defined benefit pension plan based on years of service.

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Unit-Credit Funding Cost Method

This is a funding method where with a single, one time payment / premium.

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Universal Life Insurance

A whole life insurance product whose investment component pays a competitive interest rate rather than the below-market crediting rate.

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Unjustifiable dismissal

The act of terminating an employeeâ&#x20AC;&#x2DC;s employment agreement for a reason that the Employment Relations Authority or Employment Court regards as unjustifiable.

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Unscheduled Absence

Any unanticipated time lost from work.

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Unweighted Mean

A simple arithmetic average of individual means.

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Upgrading

The advancement of a job to a higher grade or salary range.

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Uplink

In satellite communications, a link from an earth station to an orbiting body.

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Upload

Often confused with download, uploading a file means loading it from your computer onto a remote one. Most people do a lot more downloading than uploading.

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Upside Potential (Leverage)

A percent of target total compensation or as a multiple of dollars at risk.

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Usability

The effectiveness, efficiency, and satisfaction with which users can achieve tasks in a particular environment of a product. High usability means that a system is easy to learn and remember, efficient, visually pleasing, fun to use and quick to recover from errors.

Human Resource Management

Usual, Customary And Reasonable (UCR)

Based on the average fee charged by all doctors in a given geographic area. Many insurers pay the (UCR) amount and the balance of any overcharges or costs of any disallowed services are the insured's responsibility.

Human Resource Management

Usury Laws

Charging of an interest rate that is illegally high.

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Utilization Review

The evaluation of medical necessity, efficiency or quality of health cares services, prospectively, concurrently, or retrospectively. The term utilization review is more limited to the physician's diagnosis, treatment and billing amount.

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Utilization Review Organization

Independent review organizations, insurance companies or in-house programs providing utilization review services.

Human Resource Management

Validity

How well a given criterion actually measures or predicts. Also see reliability.

Human Resource Management

Valuation Date

Designated time of closing (monthly, quarterly, etc.) for determination of account balances in a defined-contribution or defined benefit plan.

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Valuation Mortality Tables

Mortality tables developed and published as industry-wide standards for computing the values of policy reserves.

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Valuation Premium

The net annual premium used to calculate reserves.

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Value Added Services

Custom training needs and or analysis.

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Valued Contract

A contract under which the amount of the benefit is set in advance.

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values

Ideas about the worth or importance of things, concepts, and people.

Human Resource Management

Variable Annuity

Annuity expressed in terms of benefit units instead of fixed dollar amounts. Annuity in which the amount of each periodic payment fluctuates according to some variable factor. Under an equity annuity plan, payments vary according to the value of a specific portfolio of common stocks and similar investments. Under a cost-of-living plan, benefits are adjusted to reflect variations in a specific index, such as the Consumer Price Index of the Bureau of Labor Statistics. An insured variable` annuity is one under which the benefit varies according to the investment results of an insurance company's separate account.

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Variable Life Insurance

A form of whole life insurance under which the death benefit and the cash value of the policy fluctuate according to the investment performance of a separate account fund. Most variable life insurance policies guarantee that the death benefit will not fall below a specified minimum. A minimum cash value is seldom guaranteed. Because the policy owner assumes investment risk under variable life insurance policies, these products are considered securities contracts. In the United States, variable life insurance policies must be registered with the Securities and Exchange Commission (SEC), and only agents who have passed the National Association of Securities Dealers (NASD) examination may sell this product. In Canada, variable life insurance policies are considered life insurance contracts, and agents do not need a special license to sell these products. See also investment-sensitive life insurance.

Human Resource Management

Variable Pay

Rewards based on performance rather than rewards based on time spent on the job or the value of the job.

Human Resource Management

Variable Premium Life Insurance

A type of nonparticipating whole life insurance that allows premium rate modifications throughout the life of the policy and guarantees that the premium rate will never exceed a stated maximum rate.

Human Resource Management

Variable Universal Life Insurance

A form of life insurance (also called Universal Life II or flexible life) offering a guaranteed death benefit that combines the flexible premium features of universal life with the investment component of variable life.

Human Resource Management

Variance

A measure of variability based on squared deviations of individual observations from the mean value of the distribution. Its square root is the standard deviation.

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Venture Capital Firm

An organization that provides funding for new ventures and business ideas, typically by offering funds in the form of a loan that can be converted to equity.

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Vested Benefit

Accrued benefits of a participant that have become nonforfeitable under the vesting schedule adopted by the plan.

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Vested Benefit Obligation (VBO)

The actuarial present value of vested benefits.

Human Resource Management

Vested Terminees

An employee who has a full vested right to benefits under one or more pension/capital accumulation plans payable at a later date, whose employment has been discontinued.

Human Resource Management

Video Conferencing

A discussion between two or more groups of people who are in different places but can see and hear each other using electronic communications. The telecommunication network carries pictures and sound and such conferences can take place across the world.

Human Resource Management

Video On Demand (VOD)

A system by which viewers can watch video programs on their own television sets at the time they choose. The programs are supplied by cable or ISDN.

Human Resource Management

Virtual Classroom

Where online learning takes place and where learners and instructors interact.

Human Resource Management

Virtual Community

A virtual community is a community of people sharing common interests, ideas, and feelings over the Internet or other collaborative networks.

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Virtual Private Network (VPN)

A network which has the appearance and functionality of a dedicated line, but which is really like a private network within a public one, because it is still controlled by the telephone company, and its backbone trunks are used by all customers.

Human Resource Management

Virus

A program that infects a computer by attaching itself to another program, and propagating itself when that program is executed. A computer can become infected by files downloaded over a network, or by the installation of new software or floppy disks that are infected with viruses. Some viruses are only pranks, and perform harmless actions like displaying a screen with a joke message on it. Others can destroy files or wipe out a hard drive.

Human Resource Management

Virus Detection Program

A software program that scans, detects, and cleans computer viruses.

Human Resource Management

Vision Care Benefits

An insurance plan that provides participants with eye examinations, lenses, frames, and fitting of glasses.

Human Resource Management

Vocational Rehabilitation

Providing a disabled or laid-off individual with training in a specific trade to prepare them for alternate employment.

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Vocational Rehabilitation Act of 1973

This act is intended to promote job access for qualified individuals with disabilities.

Human Resource Management

Voice Over IP (VOIP) Any technology providing voice telephony services over IP connections.

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Void Contract

A contract that is not valid.

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Voir Dire

Voir dire questions deal with challenges to your suitability for acceptance by the court as a person qualified to give expert testimony.

Human Resource Management

Voluntary Benefits

Specific benefits that the employer administers and the employees pay for. Commonly used for benefits that employee's want but which the employer views as nonessential to the business.

Human Resource Management

Voluntary Employee Benefit Association

Usually covered by IRC Section 501(c)(9), it serves as the base of an employer-sponsored employee benefit plan. It is a taxexempt fund that pays death, health, accident or other benefits to members, their dependents and/or beneficiaries.

Human Resource Management

Voluntary Exit Incentive Program

The plan provides an incentive for employees close to retirement to retire early.

Human Resource Management

Voluntary Plan Termination

The termination of a pension plan with the curtailment or termination being initiated by the plan sponsor.

Human Resource Management

Vortal

A vortal is a portal - the posh word for a gateway to the Internet - which specializes in one industry. In the jargon of the business schools, a site like this is vertically integrated, hence vertical portal, or vortal.

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W-2 Form

Wage and Tax Statement.

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W-4 Form

The Employee's Withholding Allowance Certificate.

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Wage

The total of salary and also commissions, or bonuses, paid by an employer for services.

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Wage And Price Controls

Wages and prices are limited to some low percentage of growth through government regulation until they are deemed to be under control.

Human Resource Management

Wage Contour

Developed by labor economist John Dunlop, a way of considering an external wage structure.

Human Resource Management

Wage curve

Depicts pay rates currently being paid for each job within a pay grade in relation with the rankings awarded to each job during the job evaluation process.

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Wage Differential

Differences in wage rates (for similar jobs) that can occur because of location of company, hours of work, working conditions, type of product manufactured, or a variety of other circumstances.

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Wage drift

The gap between the Collective Agreement rate and the rate actually paid. Evidence of geographical variations in wage levels.

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Wage Level

The average of all salaries paid to workers in an occupation, department, organization, or industry.

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Wage Movement

A decrease or increase in the wage levels for a particular position or occupation in a market.

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Wage Rate

The money rate paid to an employee per hour.

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Wage Structure

Usually established within an organization, this is the levels or hierarchy of job and pay ranges. The salary structure is also referred to as job grades, job-evaluation points and or policy lines.

Human Resource Management

Wage Survey

A survey of a labor market to determine the going rates for benchmark jobs.

Human Resource Management

Waiting Period

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Waiver Of Coverage Relinquishing the right to a benefit, especially in regard to health benefits, flexible benefits or early retirement window plans.

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Waiver Of Deductible A provision in some major medical coverage that waives the initial deductible if the medical expenses are the result of an accidental injury. Provision

Human Resource Management

Waiver Of Premium A rider which the insurer promises to give up its right to collect the policy's premium if the policy owner becomes unable to For Disability Benefit work because of an accident or injury. (WP)

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Waiver Of Premium For Payer Benefit

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Walsh-Healey Public A federal law requiring that pay be at least be the federal minimum wage with certain employers holding federal contracts for Contracts Act Of the manufacture or provision of materials, supplies and equipment. 1936

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War Exclusion Provision

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Web-Based Training Web-based training (sometimes called e-learning) is anywhere, any-time instruction delivered over the Internet or a corporate intranet to browser-equipped learners. (WBT)

A rider often included in juvenile policies which provides that the insurer will give up its right to collect the policy's premiums if the adult policy owner dies or becomes disabled.

A life insurance policy provision that if death were connected with war or military service, it would limit the insurer's liability to pay a death benefit.

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Webpage

A document on the World Wide Web, consisting of an HTML file and any related files for scripts and graphics, and often hyper linked to other documents on the Web.

Human Resource Management

Website

Locations where files are located on the World Wide Web that can be viewed through an Internet browser.

Human Resource Management

Weekender

Weekenders are found in health care environments. These are usually nurses (but may be other health care professionals) that work two 12-hour shifts over a weekend. Weekenders typically do not receive benefits but are paid at the regular base rate plus a substantial premium of 50% or more of base rate.

Human Resource Management

Weekly Indemnity Plan

A short-term disability income insurance plan which pays a weekly benefit equal to a dollar amount or a percentage of the insured person's earnings.

Human Resource Management

Weighted Average

The average of the total population or number of incumbents reported. For each job, it is computed by multiplying each company's average salary by their number of incumbents, adding these values, and dividing by the total number of incumbents for each job.

Human Resource Management

Weighted Mean

Reflects equally the number of incumbents in a survey. If companies participating are truly representative of the market, then the data should reflect the market value of the job. The weighted mean answers the question, 'On average, what are incumbents in a particular job paid?'

Human Resource Management

Welfare Benefit Plans unemployment, vacation benefits, training programs, day-care centers, scholarship funds, prepaid legal services, or financial

ERISA defines welfare benefit plans to include medical, surgical, or hospital care, sickness, accident, disability, death, assistance for employee housing.

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Wellness Programs

Employer-sponsored programs and activities designed to promote and maintain the physical and psychological health of employees.

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what-if-analysis

The process of evaluating alternate strategies by answering the consequences of changes to the way a job, task, etc. is changed.

Human Resource Management

Whistle blower

Whistle blower protection is contained in the Protected Disclosures Act 2000. The Act provides protection to employees against retaliation for reporting illegal acts of employers. An employer may not rightfully retaliate in any way, such as discharging, demoting, suspending or harassing the whistle blower. Employer retaliation of any kind may result in the whistle blower bringing a personal grievance against the employer.

Human Resource Management

Whiteboard

Similar to a dry erase board, it is an electronic version. It provides a virtual classroom to view what an instructor, presenter, or fellow learner writes down.

Human Resource Management

Whole Life Annuity

A term for a series of periodic payments, each is made only if a designated payee is alive, with the payments continuing for that payee's entire life.

Human Resource Management

Whole Life Insurance number of years (limited payment life) or for life (straight life). The premiums may remain level or decrease (by accumulating

Human Resource Management

Wide-Area Network (WAN)

Insurance payable to a beneficiary at the death of the insured, whenever that occurs. Premiums may be payable for a specified cash in the initial years of the policy).

A computer network that spans a relatively large geographical area. Also called 'WAN.'

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Windfall

An unexpected legacy, or other gain.

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Window Pension Plans

Programs that provide incentives for voluntary retirement.

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Window Period

The 10-day period, when insiders may exercise their stock-appreciation rights for cash without violating Securities and Exchange Commission rules.

Human Resource Management

Wireless Application Protocol (WAP)

A global standard for developing applications over wireless communication networks.

Human Resource Management

Wireless Markup Language (WML)

XML based language that allows a smaller version of WebPages' text to be viewed on cellular phones and personal digital assistants.

Human Resource Management

Withdrawal

Formal withdrawal or separation from an alliance or contract. See also lapse.

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Withdrawal Provision

A life insurance provision that permits the policy owner to reduce the amount in the policy's cash value by taking up to that amount in cash.

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Withholding

Income tax withheld from employees' wages and paid directly to the government by the employer.

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Witness Duty Leave

Allowing employees to take time off from work to appear before a court of law or other judicial proceeding if they are subpoenaed or a party to the action.

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Work Coaching

Coaching (work coaching) is a method used by managers and supervisors to provide positive or constructive feedback to employees to help them continue excellent performance or identify ways to improve performance.

Human Resource Management

work sample

The use of number of random samples to determine the frequency with which certain activities are performed.

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Work-Design Variances

Differences that exist in similar jobs within two or more organizations.

Human Resource Management

worker efficiency

A measure (usually computed as a percentage) of worker performance that compares the standard time allowed to complete a task to the actual worker time to complete it.

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Workers' Compensation

Government-mandated insurance that provides benefits to covered employees and their dependents if the employee suffers job-related injury, disease, or death. For more information, see DLC Course 63: Workers' Compensation .

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Working Capital

Assets available for use in the production of further assets.

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Work-life Balance

Having a measure of control over when, where and how an individuals works, leading to their being able to enjoy an optimal quality of life. Work-life balance is achieved when an individualâ&#x20AC;&#x2DC;s right to a fulfilled life inside and outside paid work is accepted and respected as the norm, to the mutual benefit of the individual, business and society.

Human Resource Management

Works Councils

A council representing employer and employees of a plant or business to discuss working conditions etc. May also be a committee representing the workers elected to negotiate with management about grievances and wages etc.

Human Resource Management

Workstation

A general-purpose computer designed to be used by one person at a time and which offers higher performance than normally found in a personal computer, especially with respect to graphics, processing power and the ability to carry out several tasks at the same time.

Human Resource Management

Workweek

Generally a fixed period of 168 hours (7 consecutive 24-hour periods). The employer establishes the workweek. It may begin on any day of the week and at any hour of the day. Under FLSA, a workweek is 40 hours long with no daily hour limit.

Human Resource Management

World Wide Web (WWW)

A collection of Internet sites that offer text and graphics and sound and animation resources through the hypertext transfer protocol.

Human Resource Management

World Wide Web Consortium (W3C)

Also called W3O, this is the main body that creates standards for the World Wide Web. Based at the Massachusetts Institute of Technology (MIT), it also produces reference software.

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Written Plan

Defined by plan instruments or required under the law of a foreign country, or both.

Human Resource Management

XML Extensible Markup Language

It allows programmers to define and use their own tags. XML is for the programmer only.

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Year Book

A school publication that is compiled usu. By a graduating class and that serves as a record of the yarsâ&#x20AC;&#x2DC; activities.

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Year Of Service

As defined by ERISA, a 12-month period during which an employee completes at least 1,000 hours of service to the employer.

Human Resource Management

Year's Basic Exemption (YBE)

The first 10 percent of an employee's annual earnings up to the amount of the Year's Maximum Pensionable Earnings (YMPE). As defined by the Canada Pension Plan (CPP) and Quebec Pension Plan (QPP) in Canada.

Human Resource Management

Year's Maximum The maximum amount of employment earnings that, after deducting the Year's Basic Exemption, can be used to determine an Pensionable Earnings individual's benefits under the Canada Pension Plan and Quebec Pension Plan. (YMPE)

Human Resource Management

Years of Experience

Total years of directly related experience in a position for any and all employers.

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YRT (Yearly Renewable Term Insurance)

Insurance that allows an individual to continue the coverage at the end of the year for a specified number of years.

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Z-Score

The position of a variable as it relates to the mean of the entire dataset.

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