Functional Organizational Structure 

What is a functional organizational structure?  A functional organizational structure is a type of business organization that groups employees into departments based on shared skills, expertise, or job responsibilities. Common departments in a functional structure include HR, marketing, sales, finance, operations, and IT. Organizations often use this structure to improve specialization, standardize processes, and create…

Leave Without Pay

What is leave without pay? Leave without pay (LWOP) is an approved absence during which an employee doesn’t receive wages. It’s typically granted at the employer’s discretion and may be used when an employee has exhausted their paid leave or needs time off for personal reasons. LWOP doesn’t break an employee’s continuous service but may…

Full Time Hours Per Week

What are full time hours per week? According to the IRS and the Affordable Care Act (ACA), employees are considered full-time if they work at least 30 hours per week or 130 hours per month. There’s no federal law in the U.S. that sets a standard number of hours for full time status, so it’s…

Ordinary Time Earnings

What are ordinary time earnings (OTE)? Ordinary Time Earnings (OTE) refer to the payments an employee receives for their ordinary work hours. This figure is used to calculate superannuation guarantee (SG) contributions under the Superannuation Guarantee (Administration) Act. OTE includes most regular earnings, such as salary, allowances, commissions, and shift loadings, but excludes overtime. Understanding…

Hourly Employee

What is an hourly employee? An hourly employee is a staff member who is compensated at a specific rate for every hour they work rather than receiving a fixed salary. This means their earnings are tied directly to the number of hours they clock in. Unlike most salaried employees, hourly workers are typically eligible for…

Reasonable Overtime

What is reasonable overtime? In Australian employment law, “reasonable overtime” refers to additional work hours considered fair and lawful under Section 62 of the Fair Work Act 2009. Whether overtime is reasonable depends on several factors, including business needs, the employee’s personal circumstances, the nature of their work, and any associated health and safety risks. Employers…

Utilization Analysis

What is a utilization analysis? A utilization analysis, also referred to as a workforce utilization analysis, is a formal process for evaluating how effectively an organization’s workforce is being used to meet its operational and strategic goals.  It involves collecting and analyzing data on employee time, skills, and workload to identify areas of under-utilization or…

Payment in Lieu of Notice

What is payment in lieu of notice? Payment in lieu of notice (PILON) is a payment an employer makes to an employee when ending their employment immediately and not requiring them work through their notice period. It compensates the employee for the wages and entitlements they would have received during that time, and is often…

Workforce Agility

What is workforce agility? Workforce agility is an organization’s ability to be flexible and adaptable to changes. An agile workforce can quickly respond to shifting economic and market conditions, technological advancements, and other unexpected events. Common characteristics of an agile workplace are employees’ ability to be proactive, collaborative, and innovative in the face of challenges…

Voluntary Redundancy

What is voluntary redundancy? Voluntary redundancy is a workforce reduction method where an employer invites employees to nominate themselves for redundancy, often with a financial incentive. It differs from compulsory redundancy in that it allows employees to leave on their own terms. The process is used during restructures, downsizing, or when roles become redundant due…