Employee Productivity Rate

What is employee productivity rate? The employee productivity rate is an important performance metric that measures how efficiently a workforce converts inputs—such as time, labor, and materials—into valuable output. It reflects employees’ effectiveness in using their skills and resources to achieve business goals. Companies track this metric to maximize their operational efficacy and profitability, identify…

Casual Loading

What is casual loading? Casual loading is an extra payment—typically around 25%—added to the base pay of casual employees. It’s meant to compensate for not receiving certain National Employment Standards (NES) entitlements, such as annual leave, personal/carer’s leave, notice periods, and redundancy pay. Since casual workers don’t have the same job security or benefits as…

Social Recruiting 

What is social recruiting? Social recruiting refers to the common practice of using social media platforms to identify, engage with, and attract potential employees.  HR can use social recruiting on networks like LinkedIn, Facebook, Instagram, YouTube, and X to connect with candidates, build employer branding, and post new job openings. Effective social recruiting can help…

Compensable Time

What is compensable time? The term ‘compensable time’ refers to the hours an employee must be paid for under the U.S. Department of Labor’s (DOL) Fair Labor Standards Act (FLSA).  This includes any time an employee must be present at their job or work location, even if they aren’t actively doing tasks (e.g., an emergency…

Standard Hours

What are standard hours? Standard hours are the set number of hours employees are expected to work in a regular workweek. In the U.S., 40 hours per week are considered standard work hours for full-time employees. However, standard working hours can vary depending on employment status (e.g., part-time or full-time), work schedule (shift work or…

Straight Time Pay

What is straight time pay? Straight time pay is the regular wage an employee receives during a standard pay period (e.g., 40 hours a week) for working regular hours at their standard rate. Generally, it does not include additional earnings, like bonuses, paid time off (PTO), or overtime pay. In this case, any hour worked…

Employer of Record

What is an employer of record? An employer of record (EOR) is an independent third-party organization that assumes the legal and administrative responsibilities of an employer on behalf of another entity known as the ‘client company.’ The EOR handles tasks such as payroll processing, tax withholdings, benefits administration, guidance on local HR regulations, and compliance…

On Target Earnings

What are on target earnings (OTE)? On target earnings (OTE) refer to a compensation package used to incentivize performance and remunerate sales representatives, financial advisors, and senior executives. OTE represents the total projected compensation for a role, including a base salary component (a fixed amount paid to the employee regardless of performance) and a commission…

Insourcing

What is insourcing? Insourcing is the practice of assigning tasks, projects, or business operations to internal staff and resources rather than outsourcing them to external organizations or third-party vendors. This approach allows a company to maintain greater control over processes, quality, and outcomes while leveraging existing talent and infrastructure. Insourcing can involve bringing previously outsourced…

Bumping Rights

What are bumping rights? Bumping rights are contractual provisions that allow employees with greater seniority to assume the roles of less tenured colleagues when positions are downsized, eliminated, or significantly changed. Senior employees can move into these roles if they meet the necessary qualifications. The displaced employee may be offered another position within the organization…