Encyclopedia Human Resource

Encyclopedia Human Resource Management (2289 Terms) Powered by www.drawpack.com; All rights reserved.
Management
A to Z Keyword Definition
Topic
Human
A Resource 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.
Management
Human
This is when a right to a benefit is transferred from one person to another. (An example is the ownership of a life insurance
A Resource Absolute Assignment
policy or the right to retirement benefits).
Management
Human
A rating method where the rater assigns a specific value on a fixed scale to the behavior or performance of an individual
A Resource Absolute ratings
instead of assigning ratings based on comparisons between other individuals.
Management
Human
Accelerated Life This is when benefit payments from life insurance or long-term benefit plans are increased to cover expenses for a chronically
A Resource
Insurance Benefits ill individual.
Management
Human
Accidental Death and This describes common group benefit plan coverage where insurance pays for a covered individual's permanent
A Resource
Dismemberment disfigurement, loss of a body part, or permanent loss of use of a body part or function of the body, or death.
Management
Human Accidental Death and An addition to a Life Insurance Policy, it provides these benefits as a supplement to basic death insurance coverage. Typically,
A Resource Dismemberment this additional amount is payable only if the insured dies in an accident or loses any two limbs or his/her eyesight in an
Management (AD&D) Rider accident. (Some riders are third party administered).
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Human 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
A Resource 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.
Management Insurance (AD&D)
Human
Accounting Principles This Board published rules by which United States CPAs conducted their accounting. The Financial Accounting Standards
A Resource
Board (APB) Board (FASB) replaced it in 1974.
Management
Human
Accounting Research
A Resource
Bulletin (ARB)
These were the bulletins published in the U.S. before 1960, which stated the generally accepted accounting principles.
Management
Human
In accounting, this is the method where expense items and income are recognized as incurred or earned, even if they have not
A Resource Accrual Basis
yet been received or paid. This is also called ACCRUAL METHOD. It is the opposite of CASH BASIS.
Management
Human
In pension (defined benefit) plans, it is the accumulation and counting of pension credits for years of experience, age, and
A Resource Accrual of Benefits
earnings. In profit sharing plans (defined contribution), it is the vesting of funds accumulated in personal accounts.
Management
Human
Accrual of Vacation This is the counting of vacation time due. Usually accumulation is by the number of hours or days worked. For example, after
A Resource
Pay two years of service, an employee would have the right to two weeks of paid vacation.
Management
Human
The value of a pension plan's promised benefits calculated by an actuary (actuarial valuation), taking into account a set of
A Resource Accrued Liability
investment and benefit assumptions to a certain date.
Management
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Human
Accumulated Benefit The value of a Pension Plan's vested and non-vested promised benefits using a formula (or formulae) typically based upon
A Resource
Obligation (ABO) employees' years of service.
Management
Human
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
A Resource
Insurance insured that would have collected during that term.
Management
Human
Accumulated Funding In the United States, this is the amount by which the accumulated promises of a Pension Plan, as compared to the funds
A Resource
Deficiency available, do not meet certain minimum funding standards.
Management
Human
A Resource Accumulated Value In profit sharing plans, this is the amount of money available in an individual account, including earnings.
Management
Human
A life insurance term where dividends are left in a policy so that they can earn tax-free interest. Sometimes called Accumulated
A Resource Accumulation Option
Interest Option.
Management
Human
A Resource Accumulation Period A Deferred Annuity period in which premiums are payable.
Management
Human
A ratio used by financial analysts where the available assets (cash, marketable securities, and account receivables) are divided
A Resource Acid Test
by the current liabilities (Current Assets/Current Liabilities). Also called the Quick Ratio.
Management
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When one organization purchases another, with the surviving organization being the purchaser. (As opposed to a Merger,
Human
where both organizations might change forms.) Acquisitions may be of two types - purchase of assets or purchase of stock.
A Resource Acquisition
The latter includes purchase of all liabilities, including retirement and welfare plans. The former often does not include these
Management liabilities (although union fund retirement plan obligations are not escaped with an asset only purchase).
Human
A Resource Acquisition Expenses These are costs associated with and caused by one organization purchasing another. Also called Acquisition Costs.
Management
Human
Across-the-board General increase amount given to all eligible employees; may be either a flat amount or a percentage of base rate, sometimes
A Resource
Increase referred to as general increase.
Management
Human
The employment of a nonconstraint resource for the sake of keeping busy unrelated to whether it is useful in supporting
A Resource activation
system throughput.
Management
Human
Actively at Work Should an employee's health insurance coverage be scheduled to commence and that employee is absent from work for
A Resource
Provision certain specified reasons, the coverage will not commence until the employee returns to work.
Management
Human
Activities of Daily Activities of daily living include getting in and out of bed, dressing, bathing, eating, and generally getting around inside the
A Resource
Living (ADL) home.
Management
Human
A Resource Actual Hours The number of hours worked during a pay period, as compared to the scheduled hours.
Management
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Human These are assumptions made by actuaries regarding mortality, morbidity, interest, expense and other forecasts. In insurance,
Actuarial
A Resource
Assumptions
they are used to set insurance reserves. In retirement plans, they are used (along with salary levels and turnover) to determine
Management the annual contribution deemed necessary to a pension plan.
Human
Actuarial Cost One of many mathematical approaches by which an actuary determines the annual amount a Pension or Benefit Plan Sponsor
A Resource
Method should contribute.
Management
Human
A Resource Actuarial Department The department, within an insurance company, that determines the reserves needed for liabilities.
Management
Human
An alternative form of a benefit equal in value. For example, a Lump Sum payout of a benefit rather than smaller monthly
A Resource Actuarial Equivalent
payments.
Management
Human In a pension or a benefit plan trust, this is the total amount needed to meet promised benefits. This set of mathematical
A Resource Actuarial Valuation procedures typically calculates the value of benefits to be paid, the funds available, the annual contribution required, and the
Management amount of expense that an organization can take on for accounting and tax purposes.
Human
This is a description of when a Voluntary Employee Beneficiary Association Plan (VEBA) or pension plan has the amounts of
A Resource Actuarially Sound
funds necessary to meet liabilities.
Management
Human In life insurance, this is a professional who calculates mortality rates, morbidity rates, lapse rates, premium rates, policy
A Resource Actuary reserves and other values. In pension work, a professional who applies these and other principles to calculate retirement plan
Management obligations.
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Human ADEA (Age

In the United States, the Age Discrimination in Employment Act of 1967 protects employment rights of individuals age 40 and
A Resource Discrimination in
over. 1978 amendments raised the minimum mandatory retirement age to 70 years of age for most employees.
Management Employment Act)
Human
Adjustable Life A variable life insurance contract where a person can change his or her annual premiums and the amount of coverage
A Resource
Insurance Policy provided.
Management
Human Common to health welfare plans, where an organization employs an outside organization to provide administrative services for
Administrative
A Resource 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.
Management
Human
An organization designated under the legal terms of the contract, plan, or trust to operate and direct a Benefit Plan. This is
A Resource Administrator
almost always a corporation, rather than an individual or the Plan Sponsor.
Management
Human
In the United States, this is a corporation that is licensed to accept reinsurance in a state or territory. Also called an
A Resource Admitted Reinsurer
AUTHORIZED REINSURER.
Management
Human
A Resource Advance Funding An organization deposits funds in a plan in advance of the time when funds will be distributed.
Management
Human Advanced
This is the insurance industry's misnomer for the main company's home office department that provides technical and
A Resource Underwriting
marketing assistance to agents in the field.
Management Department
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Human
This is where a not obviously discriminatory practice affects a protected group of employees. This term is used in salary
A Resource Adverse Impact
administration, retirement, and benefit discrimination tests, as well as in general human resource practices.
Management
Human
Occurs when an employee or group of employees purchase or select coverage with a greater than likely loss at the expense of
A Resource Adverse Selection
an insurance company (or the organization if it is self-insured). This is also called ANTI-SELECTION.
Management
Human
A Board of Directors member who is not a current employee, but who may be either a retired employee or one who does
A Resource Affiliated Director
business with the organization on which he/she serves as a member.
Management
Human
An Internet term related to the sharing of links. In some cases, two sites link to each other on a reciprocal basis. The term
A Resource Affinity Provider
partner is not used.
Management
Human
A Resource Affirmative action Carried out on behalf of women and disadvantaged groups and members of such groups are placed in dominant positions.
Management
Human
A Resource Age Discrimination In the United States, an employer is prohibited from treating individuals over age 40 differently because of their age.
Management
Human
A Resource Age of Majority The legal term used for when an individual can enter into and be bound by a legal contract.
Management
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Several definitions: 1) A service or business authorized to act on the behalf of others. (For example, an employment agency
Human
that refers employees to organizations for a fee.)(2) A government's administrative section. (3) A legal term describing the
A Resource Agency
relationship between two parties -- a principal and his or her agent, representing the principal in business transactions with a
Management third party.
Human
A Resource Agency Agreement A contract that describes an agent's authority.
Management
A distribution system whereby insurance companies use their own commissioned agents to sell and deliver insurance policies.
Human
The agency system is the most common system for distributing individual life insurance products and includes the branch
A Resource Agency System
office distribution system and the general agency distribution system. Also called the ordinary agency system. See also branch
Management office distribution system, brokerage distribution system, and general agency distribution system.
Human
An individual who sells insurance policies as either a Direct Writer or Independent Agent. Also services insurance policies for
A Resource Agent
clients.
Management
Human
A Resource Agent of Record The agent or broker who is recognized by the insurer as the person to whom commission is to be paid.
Management
Human
The portion of the insurance application in which the agent reports anything he or she knows or suspects about the proposed
A Resource Agent's Statement
insured that is not reported by the applicant or proposed insured.
Management
Human A method of accumulation of money for a pension plan, where an actuary determines the present value of all future payments
Aggregate Funding
A Resource
Method(s)
of benefits and deducts from this value any funds that may be on hand with trustee or with the insurance company and
Management distributing the balance as a cost over the future.
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Human
Aggregate Mortality A type of mortality table that shows total statistics for the probability of living and dying throughout a person's entire life cycle. It
A Resource
Table is based on the combined statistics of both the Ultimate Mortality Table and the Select Mortality Table.
Management
Human
The practice of increasing market survey data by an assumed percentage, which is representative of wage movement, to bring
A Resource Aging Survey Data
the data to a consistent point in time. Also known as 'advancing' or 'trending' the data.
Management
A contract under which one party provides something of value to another party in exchange for a conditional promise. This
Human
promise is that the other party will perform a stated act if a specified, uncertain event occurs. Insurance contracts are aleatory
A Resource Aleatory Contract
(dependent on chance) because the policy owner pays premiums to the insurer, and in return the insurer promises to pay
Management benefits if the event insured against occurs.
Human
A company that is incorporated under the laws of another country. Compare to DOMESTIC CORPORATION and FOREIGN
A Resource Alien Corporation
CORPORATION.
Management
The assignment of a plan participant's benefits to an individual other than the participant. In the United States, ERISA generally
Human
prohibits such alienation of benefits, although exceptions to this rule exist and include the use of a participant's vested benefit
A Resource Alienation of Benefits
as collateral for a loan. The ERISA prohibition on alienation of benefits prevents creditors from attaching an individual's
Management pension benefits.
Human In the context of health insurance, this is a deductible that must only be satisfied once during a given period of time. If the
All-Causes
A Resource
Deductible
period of time is a calendar year, as it usually is, then this type of deductible is known as a calendar year deductible. Contrast
Management with a PER CAUSE DEDUCTIBLE.
Human A method of funding a pension plan whereby a portion of the total plan funds is allocated to each participant. This type of
A Resource Allocated Funding funding is often achieved through the purchase of annuities or insurance contracts for each participant. Contrast with
Management unallocated funding.
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Human
Allowance Payments such as those for hardship, relocation, or the education of dependent children. It is distinguished from differential,
A Resource
Supplemental which is a payment to offset differences in costs between the home and assignment locations.
Management
Human
All-Salaried Work A pay policy that makes exempt/nonexempt status 'invisible' to workers. Under this policy, all employees are paid on a salaried
A Resource
Force basis and all pay is defined in the same terms, such as a monthly or annual salary.
Management
This is an IRS mechanism created to ensure that corporations, trusts, high-income individuals, and estates all pay at least
Human
Alternative Minimum some minimum amount of tax, regardless of deductions, exemptions or credits. The AMT is triggered when there are large
A Resource
Tax (AMT) numbers of personal exemptions on state and local taxes paid, by Incentive Stock Option (ISO) plans, or large numbers of
Management miscellaneous itemized deductions or medical expenses.
Human
American Council of
A Resource
Life Insurance (ACLI)
An organization that collects and disseminates data on life insurance markets in the United States.
Management
Human
American Stock
A Resource
Exchange (AMEX)
An organization overseeing the buying and selling of publicly owned shares of stock listed on the exchange.
Management
Human Americans With

This law creates non-discrimination protection for people with disabilities, similar to the Title VII of the Civil Rights Act of 1964
A Resource Disabilities Act of
extended to other minorities. Under the law, employers may not refuse to hire a person due to his or her disability.
Management 1990 (ADA)
Human A stock option contract that can be exercised at any time between the date of purchase and the expiration date. Most
American-Style
A Resource
Option
exchange-traded options are American-Style options vs. European-style options, which may only be exercised during a
Management specified period of time just prior to expiration.
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Human 1) The gradual elimination of a liability, such as a mortgage, in regular payments over a specified period of time. Such
A Resource Amortization payments must be sufficient to cover both principal and interest. 2) Writing off an intangible asset investment over the
Management projected life of the assets.
Human
A Resource Amortization Basis The process of paying off an interest-bearing liability through a series of installment payments.
Management
Human
analytic workplace Design based on established physical and behavioral concepts, including the known working habits of people. Produces a
A Resource
design workplace environment well within the range of human capacity and does not generally require modification or improvement.
Management
Human
The date used in some merit-pay systems at which a review of the employee's salary occurs. It may be the anniversary of
A Resource Anniversary Date
hiring, last pay increase, promotion or some other reference point.
Management
Human
The 12-month period following an employee's date of hire or date of re-employment (after a one-year break in service), and
A Resource Anniversary Year
each succeeding 12-month period.
Management
Annual Benefits
Statements Under
Human
The Employee Employers are required to provide participants in qualified plans specific information about the status of their projected pension
A Resource
Retirement Income income or account balances.
Management
Security Act of 1974
(ERISA)
Human
Usually a lump-sum payment (cash, shares, etc.) made once a year in addition to an employee's normal salary or wage for a
A Resource Annual Bonus
fiscal or calendar year. Generally nondiscretionary and not based on predetermined performance criteria or standards.
Management
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Human
A plan in which each year, usually at the end of the year, employees become eligible for an additional amount of money or
A Resource Annual Bonus Plans
other reward.
Management
Human
A Resource Annual Budget A 12-month operating budget ending on the last day of the calendar year (i.e. December 31 of that year).
Management
Human
Usually a lump-sum payment (cash or stock) made in addition to an employee's normal pay for a fiscal or calendar year, based
A Resource Annual Incentive
on performance (individual, business unit and/or company). May also be called an annual bonus.
Management
Human
Annual Information In Canada, a report containing financial and other information that pension plans must file annually with the appropriate
A Resource
Return provincial or federal government.
Management
Human Annual Lease

A Resource Valuation Enables Employers, in a number of ways, to determine the value of a worker's personal use of a company car.
Management Automobiles
Human Annual Renewable

Life insurance that allows an individual to continue the coverage at the end of the year for a specified number of years. This
A Resource Term Life Insurance
coverage is also called YEARLY RENEWABLE TERM INSURANCE (YRT).
Management (ARTLI)
Human
Annual Report Form In the United States, a detailed report of membership and financial information pertaining to the operation of a pension plan.
A Resource
5500 This report must be filed annually with the Internal Revenue Service.
Management
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Human An accounting report that insurers must file each year with the appropriate regulatory agency. This report contains detailed
A Resource Annual Statement accounting and statistical data that regulators use to evaluate a life and health insurance company's solvency and its
Management compliance with insurance laws.
Annualized Increase
Human
Percent (also, Salary increase that is expressed as an annual rate of increase, calculated by dividing the number of months since the last
A Resource
Equivalent Annual increase (the dominator) into 12 (the numerator) and multiplying the result by the increase percent.
Management
Percent Increase)
Human Annually Renewable

A Resource Term (ART) See yearly renewable term (YRT) insurance.
Management Insurance
Human
Annuities and Annuity An annuity is a contract for the payment of specified or objectively determinable periodic payments over a specified period of
A Resource
Contracts time or over the lifetime of the recipient.
Management
Human A calculation of probability of dying at each age. Used by actuaries to calculate premiums and reserves for annuities in which
Annuity Mortality
A Resource
Table
benefits are paid only if a designated person is alive. Annuity mortality tables usually project lower rates of mortality than do
Management mortality tables that are used for life insurance. See also MORTALITY TABLES.
Human
Occurs when an employee or group of employees purchase or select coverages with a greater than likely loss at the expense
A Resource Anti-Selection
of an insurance company (or the organization if it is self-insured). This is also called Adverse Selection.
Management
Human
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
A Resource Apparent Authority
party believes in the authority of the agent, but that authority was not expressly conferred; it is implied.
Management
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Human
The person who has applied to a job advertised or someone who has submitted their CV for inclusion on the searchable
A Resource Applicant
database.
Management
Human A paper or electronic form that must be completed by an employee who desires a certain benefit. Information provided by the
A Resource Application individual allows the insurance carrier or employing organization the information necessary to enroll (or not enroll) the
Management individual.
Human
A Resource Appraisal See Performance planning.
Management
Human Approval Type An agreement issued along with a conditional premium receipt that provides temporary life insurance coverage as of the date
A Resource Temporary Insurance the insurer approves the proposed insured as a standard risk. See also insurability conditional premium receipt and temporary
Management Agreement insurance agreements. Compare to insurability type temporary insurance agreement.
Human
For collectively bargained single employer plans, the bargaining agreement's grievance and arbitration procedure may double
A Resource Arbitration
as a claims procedure.
Management
Several definitions: 1) Allowance paid to compensate expatriate employees for medium-term cultural and hardship factors
Human
present in his or her country of assignment as compared to the base country. (This is also known as a hardship allowance.) (2)
A Resource Area Differential
Allowance paid to domestic employees in some geographic areas, which is based on different average pay levels and or cost
Management of living.
Human
These are standard survey formats used across geographic boundaries so that consistent reporting can illustrate the same
A Resource Area Wage Surveys
jobs and their different pay in various geographic areas.
Management
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Human Arithmetic Mean (as defined by the U.S. DOL) is the rate of wages to be determined, to the extent feasible, by adding the
A Resource Arithmetic Mean wages paid to workers similarly employed in the area of intended employment and dividing the total by the number of such
Management workers. This computation usually produces a Weighted Average.
The process of conducting In Process Reviews (IPRs) and After Action Reviews (AARs). IPRs help to determine initial
Human
expectations, ascertain strengths and weakness of both employees and the organization, and identify key issues and
A Resource assessing
organizations whose willing support is needed to accomplish the mission. AARs determine how well the goals are being
Management accomplished, usually by identifying areas to sustain and improve.
Human
A method for assessing aptitude and performance; applied to a group of participants by trained assessors using various
A Resource Assessment Center
aptitude diagnostic processes in order to obtain information about applicants' abilities or development potential.
Management
Human
An early method of funding life insurance where members of the plan were charged in advance for the amount of money that
A Resource Assessment Method
the administrators estimated would be needed to pay each year's death claims. Also called the pre-death assessment method.
Management
Human
Geographic, Salary, Benefit, Relocation and Executive Compensation software and databases designed to assist the
A Resource Assessor Series
compensation and benefits analyst and manager with his/her research.
Management
Human An asset is anything of value that is owned by an organization or an individual. Examples are cash, computer equipment, and
A Resource Asset investments. Assets can be any percentage of real property or of personal property that can be liquidated in order to pay debts.
Management Assets are shown on the balance sheet of a company's Annual Statement.
Human
Asset Investment The periodic review of the actions of the asset manager(s) who are investing a qualified pension plan's assets. The plan
A Resource
Performance administrators of such plans have a fiduciary responsibility to conduct this review regularly.
Management
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Human
A transaction whereby the purchaser only acquires title to certain identified assets and or liabilities of the seller, with no
A Resource Asset Sale
obligation for any non-identified liabilities or assets. (A buyer may, for example, acquire only one line of product from a seller.)
Management
Human
Asset Share A method of calculating that imitates the way in which the assets of a particular block of policies should grow, depending on
A Resource
Calculation certain assumptions about future interest rates, morbidity, mortality, expenses and so on.
Management
Human
Asset-Liability The process of investing, purchasing, selling and otherwise adjusting an insurance company's asset holdings so that cash is
A Resource
Matching available when it is needed to cover the company's liabilities.
Management
Human
A Resource Assignee The party to whom all or certain contractual rights are transferred under an absolute or collateral assignment.
Management
Human Several definitions: 1) The transfer of ownership rights in a life insurance policy or other type of contract from one party to
A Resource Assignment another. (2) The document that causes the transfer of ownership rights to go into effect. See also ABSOLUATE ASSIGNMENT
Management and COLLATERAL ASSIGNMENT.
Human
A Resource Assignment Location The country in which an expatriate lives and works during an assignment.
Management
Human
Assignment of An authorization directing an insurer to make payment directly to a provider of benefits, such as a physician or dentist, rather
A Resource
Benefits than to the insured.
Management
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Human
A Resource Assignor The person or party who transfers certain contractual rights under an absolute or collateral assignment.
Management
Human Association
A Resource Organization Organization insurance extended to the members of a trade, professional, or other association.
Human
Assumption A reinsurance agreement by which one company permanently transfers (cedes) full responsibility for a block of policies to
A Resource
Reinsurance another company. After the cession, the ceding company is no longer a party to the insurance agreement.
Management
Human
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
A Resource Attained Age
number of years elapsed since the policy was issued.
Management
Human
Attained Age The changing of a life insurance policy from one form of insurance to another (such as from term life insurance to whole life
A Resource
Conversion insurance) at a premium rate that is based on the age the insured person has reached at the time the change takes place.
Management
Human Attendance Bonuses are provided to employees who have maintained perfect attendance for a period of time, typically a full
A Resource Attendance Bonus quarter or year. These bonuses are usually provided in the form of a flat cash amount, additional paid time off, or gift awards
Management upon completion of the period of perfect attendance.
Human
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
A Resource
Statement (APS) conditions. The statement provides the insurance company with information relevant to underwriting a risk or settling a claim.
Management
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Human
A Resource attributes Characteristics or qualities or properties. Attributes of the leader fall into three categories: mental, physical, and emotional.
Management
Human
A term used to describe voluntary and involuntary terminations, deaths, and employee retirements that result in a reduction to
A Resource Attrition
the employer's physical workforce.
Management
Human
authoritarian A style of leadership in which the leader tells the employees what needs to be done and how to perform it without getting their
A Resource
leadership advice or ideas.
Management
Human
In the United States, this is a corporation that is licensed to accept reinsurance in a state or territory. They are often also called
A Resource Authorized Reinsurer
an Admitted Reinsurer.
Management
Human
Leader determines policy of the organization, instructs members what to do/make, subjective in approach, aloof and
A Resource Autocratic leadership
impersonal.
Management
Human
Automatic Dividend For a specific life insurance policy, this is the dividend option that applies in the event that the policy owner does not choose an
A Resource
Option option. See DIVIDEND OPTIONS.
Management
Human For a specific life insurance policy, a specified nonforfeiture benefit that automatically becomes effective when a renewal
Automatic
A Resource
Nonforfeiture Option
premium is not paid by the end of the grace period and the policy owner has not elected another nonforfeiture option. See also
Management nonforfeiture options.
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Human
Automatic Premium A life insurance nonforfeiture option that allows the insurer to pay overdue premiums on a policy by establishing a loan against
A Resource
Loan (APL) the policy's cash value. See also NONFORFEITURE OPTIONS.
Management
Human A reinsurance agreement in which the reinsurer agrees, for a stipulated type of risk, to accept each risk or a portion of each
Automatic
A Resource
Reinsurance Treaty
risk submitted by the ceding company, up to a certain limit, provided the ceding company insures up to its usual retention limit.
Management In this agreement, the ceding company assumes full underwriting responsibility for all cases reinsured.
Human
Automatic Wage
A Resource
Adjustment
Automatically increasing or decreasing wages according to a specific plan formula.
Management
Human
Automatic Wage Automatically increasing wages after specified periods of service, until the employee reaches the top of his or her salary range.
A Resource
Progression Automatic wage progression often is achieved through an automatic step-rate pay system.
Management
Human
A Resource Automobile Benefits An allowance to an employee for the use of his/her own automobile, which may or may not be taxable.
Management
Human
Companies that maintain a fleet of cars for the use of employees who require transportation for business purposes may
A Resource Automobile Insurance
purchase insurance for automobiles and drivers of the automobiles.
Management
Human
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
A Resource Average
average. See also mean.
Management
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Human
Average Frequency Normally calculated on a department-wide or company-wide basis. It is determined by summing up the months between
A Resource
(Of Salary Increases) increases granted for the employee groups and dividing by the number of increases and employees.
Management
Human
Average Hourly
A Resource
Earnings
Hourly pay determined by dividing hours worked per period into the total wages earned for that period.
Management
Human In the United States, this is the figure on which social security disability, retirement and other benefits are based. The figure is
Average Indexed
A Resource
Monthly Earnings
an average of the monthly earnings on which a worker has paid Social Security tax. The figure is indexed, that is, adjusted to
Management compensate for inflation.
Human
Average Percent Calculated by dividing the sum of salary increase amounts for all eligible employees by the eligible payroll. Both the numerator
A Resource
Increase and the denominator include those who were eligible and participated but received no increase.
Management
Human
Average Straight- Hourly pay determined by dividing the hours worked per period into the total straight-time earnings for the period (excluding
A Resource
Time Hourly Earnings overtime).
Management
Human Awards, prizes and gifts are a traditional way for employers to recognize and reward employees for their contributions to the
A Resource Awards company. Such contributions may comprise long years of service, a cost-saving suggestion, a good safety record, or
Management outstanding performance.
Human
B Resource Baby boomers Those born between 1946 and 1964, when birth rates rose sharply, and now a popular target group for marketers.
Management
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Human The amount of lost earnings accruing between the time a plaintiff terminates employment and a subsequent measuring date.
B Resource Back Pay 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
Management compensatory or punitive damages.
A life insurance policy (usually a universal life insurance policy) in which most of the expense charges occur when the policy
Human
owner surrenders the policy or makes cash withdrawals from the policy. Such charges are usually highest in the early policy
B Resource Back-Loaded Policy
years and are often eliminated at the end of a certain number of years. See also front-loaded policy and universal life
Management insurance.
Human
The practice of providing a higher accrual of pension benefits during a participant's later years of employment. The practice is
B Resource Back-Loading
designed to encourage and reward long service.
Management
Human
Refers to withholding 20% of payments for federal income taxes unless the payee has a correct Social Security number on file
B Resource Backup Withholding
with the employer, or is otherwise not subject to withholding.
Management
Human
An acquisition transaction (usually initiated by the seller) in which the seller is in poor financial condition and another company
B Resource Bail Out
purchases the financially troubled company and improves their financial condition.
Management
Human
A financial statement of a company or other entity, showing what it owns (assets), what it owes (liabilities), and the owner's
B Resource Balance Sheet
investment (shareholders equity) at a point in time such as the end of the fiscal year.
Management
Human An accounting term that describes a situation where debits and credits must match. The balance sheet approach is used to set
Balance Sheet
B Resource
Approach
expatriate compensation. There the goal is to protect or equalize an expatriate's purchasing power while on assignment
Management abroad. Its primary objective is to ensure equity among expatriates and their home or base country peers.
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A popular strategic management concept developed in the early 1990's by Drs. Robert Kaplan and David Norton, the balanced
Human scorecard is a management and measurement system which enables organizations to clarify their vision and strategy and
B Resource Balanced Scorecard translate them into action. The goal of the balanced scorecard is to tie business performance to organizational strategy by
Management measuring results in four areas: financial performance, customer knowledge, internal business processes, and learning and
growth.
Human
The grouping of life insurance policies according to death benefit amounts for the purpose of calculating loading or expense
B Resource Band Grading
charges.
Management
Human
A standard bankruptcy liquidates a business or individual. Then, subject to specific exemptions, assets of the bankrupt are
B Resource Bankruptcy
collected and paid to creditors.
Management
Human
B Resource Bar Chart A graph displaying data in a frequency distribution represented by horizontal or vertical bars.
Management
Human
Base Country or In international compensation, this is the country upon which an expatriate's compensation is based. It is usually the
B Resource
Home Country expatriate's home country or the country in which the employee's headquarters is located.
Management
Human
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
B Resource Base Pay
salary before any addition of differentials, allowances or incentives for Foreign Service or required contributions.
Management
Human
Determined by the sum of annual salaries and or wages (base rates) paid at the opening of business on the first day of the
B Resource Base Payroll
plan year or last day of prior year, e.g., Dec. 31, before any increase.
Management
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Human
Base Rate or Base The rate of pay set for a unit of work before anything extra is added. This rate does not include things like shift differentials,
B Resource
Wage Rate benefits, overtime, incentive premiums or any other pay element other than the base rate.
Management
Human
B Resource Base Salary or Wage The basic rate of pay (excluding overtime pay).
Management
Human
Base wage rate (or The hourly rate or monthly salary paid for a job performed. Does not include shift differentials, benefits, overtime, incentive
B Resource
base rate) premiums, or any pay element other than the base rate.
Management
Human The death benefit according to the terms of the original, basic contract of a life insurance policy. The basic death benefit does
B Resource Basic Death Benefit not include the benefit for any supplementary riders, such as an accidental death benefit (ADB) rider. For policies whose death
Management benefit remains constant, the basic death benefit is equivalent to the face amount.
Human
Basic Earnings Per The net earnings available to common shareholders of an organization divided by the weighted average of total shares
B Resource
Share outstanding. No consideration is given in this calculation for common stock equivalents such as stock options.
Management
Human
B Resource Basic Mortality Table A mortality table without a safety margin. Also called a basic experience table. See also mortality table and safety margin.
Management
Human
Basic Plan with Major A medical insurance plan that provides for coverage of almost all hospital and surgical charges and some other medical
B Resource
Medical expenses, up to a specified amount without a deductible.
Management
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Human
Commonly covered items on an insurance policy (e.g. Dental procedures specified in a dental insurance plan such as
B Resource Basic Services
diagnostic, preventive, and routine restorative dental services).
Management
Several definitions: 1) From an investment point of view, this is a provision that allows insurance companies to invest a small
Human
percentage of their assets generally without regard to statutory restrictions. (2) From an accounting point of view, this is a
B Resource Basket Clause
clause that permits life, and health insurers to hold a specified amount of their assets as nonauthorized assets, which are not
Management restricted in the same way as authorized assets.
Human
Behavior Based Any performance assessment system that concentrates on the behaviors of those being rated (such as behavioral expectation
B Resource
Appraisal scales, behaviorally anchored rating scales, or behavioral observation scales).
Management
Human An interview technique which focuses on a candidates past experiences, behaviors, knowledge, skills and abilities by asking
Behavioral based
B Resource
interview
the candidate to provide specific examples of when they have demonstrated certain behaviors or skills as a means of
Management predicting future behavior and performance.
Human The behavior of the employee which is the subject of measurement and appraisal in terms of whether or not the behaviors
Behavioral
B Resource
competency
shown by an employee are those identified by job analysis/competency profiling as those contributing to team and/or
Management organizational success.
Human Behaviorally An appraisal that requires raters list important dimensions of a particular job and collect information regarding the critical
B Resource anchored rating scale behaviors that distinguish between successful and unsuccessful performance. These critical behaviors are then categorized
Management (BARS) and appointed a numerical value which is used as the basis for rating performance.
Human
B Resource beliefs Assumptions and convictions that a person holds to be true regarding people, concepts, or things.
Management
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Human
Below Market Rate This is a compensation-related loan. It is any loan bearing a below-market interest rate made in connection with performance
B Resource
Employee Loans of services directly or indirectly between an employer and employee.
Management
Human
A standard job used to make pay comparisons, either within the organization or to comparable jobs outside the organization, to
B Resource Benchmark job
develop or validate a job-worth hierarchy. Pay data for these jobs are readily available in purchased surveys.
Management
Human
B Resource Benchmark Job Data Market and company data for surveyed jobs.
Management
Human
A set of measurements (metrics) that is used to establish goals for performance improvements. These are often derived from
B Resource benchmark measures
other firms that display "Best In Class" performance.
Management
Human
A technique using quantitative or qualitative data to make comparisons between different organizations or different sections of
B Resource Benchmarking
the organizations.
Management
Human The person designated to receive the benefits resulting from the death of an employee, such as the proceeds of a life or
B Resource Beneficiary accidental death insurance policy or benefits from a pension plan. See also Contingent Beneficiary, Irrevocable Beneficiary,
Management Primary Beneficiary, and Revocable Beneficiary.
Human
Beneficiary Specific to Canada, an insurance policy beneficiary designation that is made in a separate written document after the
B Resource
Declaration insurance policy has been issued.
Management
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Human
For insurance purposes this is the amount of money paid when an insurance claim is approved. Also known as the policy
B Resource Benefit
benefit.
Management
Human
Benefit of 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
B Resource
Survivorship payment is due. This concept is used in the calculation of amounts due under life insurance settlement options.
Management
Human
Benefit Plans - Health
B Resource
Care
The two types of health care benefit programs are indemnity programs and health maintenance organizations.
Management
Human
Benefit Plans - A Retirement Plan is an agreement on the part of management to provide a vehicle for the retirement income needs of
B Resource
Retirement employees. Such plans may be qualified or non-qualified for tax purposes.
Management
Human
A cost-containment measure utilized by an organization to reduce its expenses through reduction in benefit coverage (e.g.
B Resource Benefit Reductions
increase in medical plan deductibles, increase in employee contributions, reduction in annual limits in dental plans).
Management
Human Under an organization's insurance plan, this is a table or schedule that specifies the amount of coverage, provided for each
B Resource Benefit Schedule class of insured. Insureds are often classified with reference either to earnings or to rank or position. Also called a schedule of
Management benefits.
Human
B Resource Benefit Statements Each year employees must be given an individual benefit statement that explains accrued benefits to date and vesting status.
Management
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Employers provide a package of additions to the base salary to employees. These benefits can include health insurance,
Human
dental insurance, life insurance, disability insurance, a severance package, tuition assistance, and more. On average,
B Resource Benefits
organizations spend 41 cents for benefits for every dollar of payroll. That‘s 29 percent of the total employee compensation
Management package.
Human
The total value of all non-cash compensation elements, including but not limited to income protection, health coverage,
B Resource Benefits Packages
retirement savings, vacation and income supplements for employees, provided in whole or in part by employer payments.
Management
Human
An amendment to the Civil Rights Act of 1964 that states that it shall not be unlawful practice to differentiate compensation on
B Resource Bennett Amendment
the basis of sex if such differentiation is authorized by the Equal Pay Act.
Management
Human
Paid days off following the death of an employee‘s spouse, parent, child grandparent or in-law so that the employee may attend
B Resource Bereavement leave
funeral proceedings, etc.
Management
Human
A benefit plan that calculates a recipient's retirement benefit based on the period during which the employee earned his or her
B Resource Best Earnings Plan
highest income.
Management
A mathematical measure of the volatility of a particular stock, mutual fund, and/or portfolio in comparison with the entire
Human
market. Specifically, it measures the stock, fund or portfolio performance during the last 5 years. A beta of 1.0 indicates that an
B Resource Beta
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
Management indicates that the asset was less volatile than the market.
Human
B Resource BFOQ Bona Fide Occupational Qualifications – legally defensible minimum qualifications to perform the job.
Management
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Human Bilingual Differential is a cash differential that is paid in addition to base salary for language skills that are required in a job. The
B Resource Bilingual Differential differential also provides a continual reminder to the employee that he or she is compensated for this ability in addition to
Management performance of the job.
Human
B Resource Bimodal Distribution A probability distribution with two modes.
Management
Human
Binding Premium A type of initial premium receipt that makes insurance coverage effective immediately, but only until the insurance company
B Resource
Receipt either rejects the application or approves it and issues a policy.
Management
Human
Binomial Option A mathematical formula that determines a theoretical value for an option on stock subject to trade on an option exchange. May
B Resource
Pricing Model be used by a company that chooses to apply the FAS123 rule to stock granted to employees.
Management
Human A provision that specifies the manner in which benefits for dependent children are to be coordinated between two insurance
B Resource Birthday Rule plans. According to the birthday rule, benefits for dependent children will be paid by the plan of the parent whose birthday falls
Management earlier in the year.
Human A mathematical model originally derived by economists Myron Scholes, Robert Merton, and Fischer Black to value stock
B Resource Black-Scholes Model options traded on public markets. The Black-Scholes Formula provides a way to determine the worth of a CALL OPTION at
Management any given time. To find out how to use this formula, see DLC Course 22: Black-Scholes Valuations.
Several definitions, two of which are listed: 1) Organization mortality rates that are based, in part, on a group's own experience
Human
and in part on manual rates. These Blended Rates are used to determine the appropriate organization insurance premium
B Resource Blended Rates
rates for intermediate-size groups. See also Experience Rating and Manual Rates. (2) A rate offered by a lender, which is
Management somewhere between a previous rate and a new loan rate.
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Human
B Resource BLS U.S. Government's Bureau of Labor Statistics.
Management
Human
A health care plan offered by a regionally-operated health care provider, having any of these insurance products: PPO, fee-for-
B Resource Blue Cross Plan
service, HMO, or POS. A provider of such plans belongs to the Blue Cross and Blue Shield Association.
Management
Human
A health care plan offered by a regionally-operated health care provider, having any of these insurance products: PPO, fee-for-
B Resource Blue Shield Plan
service, HMO, or POS. A provider of such plans belongs to the Blue Cross and Blue Shield Association.
Management
Human Bonafide
Typically refers to a valid job requirement, i.e., a knowledge, skill or an ability level that is required for competent job
B Resource Occupational
performance. Origin of the term BFOQ is found in Title VII of the Civil Rights Act (1964).
Management Qualification (BFOG)
Human A debt instrument issued for a period of more than one year with the intent of raising capital by borrowing. The Federal
B Resource Bond government, states, cities, corporations, and other types of institutions sell bonds. A bond is typically a promise to repay the
Management principal loan along with interest on a specified date of maturity.
Human
Plans that award cash or other items of value, such as stock (or stock options), based on accomplishments achieved. While
B Resource Bonus
incentive plans are 'forward' looking' bonus plans are 'backward looking'.
Management
Human
Plans that award cash or other items of value, such as stock or stock options, based on accomplishments achieved. Incentive
B Resource Bonus (Pay Plans)
plans are 'forward' looking; bonus plans are 'backward' looking.
Management
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Human
B Resource Bonus Eligible Refers to groups or classes of employees eligible to participate in a bonus program.
Management
Human
A payment in addition to base salary that is made regardless of performance, e.g., an incentive award that is guaranteed,
B Resource Bonus Guarantee
usually to a new hire or to a newly promoted person. It is usually nonrecoverable by the company.
Management
Human
An employee rewards plan that increases the incentive as the employee performance exceeds predetermined degrees of
B Resource Bonus Progressivity
performance. See PROGRESSIVITY OF INCENTIVES.
Management
Human
A type of long-term incentive plan, whereby an employee is awarded stock valued at the book value per share. In this kind of
B Resource Book Unit Award Plan
plan an increase in the book value of the stock accrues to the benefit of the employee.
Management
Human
Total shareholders' equity divided by the number of common shares outstanding. Book value is sometimes used in incentive
B Resource Book Value (BV)
plans in privately owned companies where the fair market value of shares is not readily known.
Management
Human
Book Value Purchase An incentive program in which employees purchase shares of their organization at book value. They subsequently can sell the
B Resource
Plans shares back to the organization at the then book value.
Management
Human
B Resource Bottom Line An individual's or company's profit after taking into consideration all expenses, income and taxes.
Management
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Human
A technique for teams that is used to generate ideas on a subject. Each person on the team is asked to think creatively and
B Resource brainstorming
write down as many ideas as possible. After the writing session, the ideas are discussed by the team.
Management
Human
The individual typically in charge of a field office. For insurance companies, this individual uses the Branch Office Distribution
B Resource Branch Manager
System. Also called a general manager.
Management
A common system for selling individual life insurance. Under this system, the soliciting agents who work out of a branch office
Human are under contract to the insurance company, not to the branch manager. The agents receive commissions directly from the
Branch Office
B Resource
Distribution System
insurance company. The branch office manager, supervisors, and clerical personnel in the field office are employees of the
Management 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.
Human
The process of identifying and differentiating an organization‘s products, processes or services from another organization by
B Resource Branding
giving it a name, phrase or other mark.
Management
Human
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
B Resource Breach of Duties
dismissal.
Management
The length of time between the date on which an employee leaves an organization and the date on which the employee
Human
resumes working for that firm. For pension and employee benefit plan purposes in the United States, a plan participant cannot
B Resource Break In Service
be deprived of benefits that accumulate before a break in service, unless the break is longer than (1) five years or (2) the
Management amount of time that the participant has been employed when the break commences.
Human 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
B Resource (Erisa Pension-Plan benefits. If a non-vested employee incurs five or more consecutive break years, that employee may lose all the time towards
Management Standards) vesting under the plan.
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Human This is a loan typically secured by your current home, which is usually listed for sale. The bridge loan is used to finance the
B Resource Bridge Loan 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
Management loan with the proceeds.
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
Human
retires before age 65, the plan sponsor can provide a bridging supplement until the retiree turns 65 and begins to receive
B Resource Bridging Supplement
payments from the public pension plans. The combined benefit payment that the participant receives remains level and is the
Management 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.
Human
B Resource Broadbanding A pay structure that consolidates a large number of narrower pay grades into fewer broad bands with wider salary ranges.
Management
Human
A person or firm who, for a fee or commission, acts as an intermediary between a buyer and seller. Usually a license is
B Resource Broker
required.
Management
Human Other than a bank, any individual or firm that is in the business of buying and selling securities for itself and others. Called an
B Resource Broker Dealer agent or broker when buying securities and a principal or dealer when selling them. The SEC requires that broker/dealers not
Management only register with the SEC but also with the states in which they conduct business.
Human
Brokerage A distribution system relying on commissioned agents, called brokers, who sell the products of more than one insurance
B Resource
Distribution System company.
Management
Human
A salaried insurance company employee or an independent agent whose responsibility is to appoint brokers on behalf of the
B Resource Brokerage Manager
company and to encourage brokers to sell the products of a particular insurance company.
Management
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Human
An agency operated by an independent general agent who is under contract to a number of insurance companies. Also known
B Resource Brokerage Shop
as a Brokerage General Agency.
Management
Human
Brother-Sister When a third corporation, group, or person owns two or more corporations this arrangement is typically known as 'brother -
B Resource
Arrangement sister.'
Management
Human
B Resource Budget An itemized plan of an individual or company's income and expenses expected for a future period of time.
Management
Human An activity focused on sustaining and renewing the organization. It involves actions that indicate commitment to the
B Resource building achievement of group or organizational goals: timely and effective discharge of operational and organizational duties and
Management obligations; working effectively with others; compliance with and active support of organizational goals, rules, and policies.
Human Bulletin Boards are one method of posting information that is of general interest to employees. This may include information
B Resource Bulletin Boards that employers are required to make available to employees such as equal employment policies, safety requirements, and
Management other government regulations.
Human The practice of allowing more senior level employees whose positions have been slotted for elimination or downsizing the
B Resource Bumping option of accepting an alternative position within the organization, for which they may be qualified to perform and which is
Management currently occupied by another employee with less seniority.
Human An insurance product in which the mortality, investment, and expense factors are all used to determine premium rates. Cash
Bundled Insurance
B Resource
Product
values are not separately identified in the policy. Usually whole life insurance is an example of a bundled insurance product.
Management See and contrast with UNBUNDLED INSURANCE PRODUCT.
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Human This is the United States Federal Government's major fact-finding agency in the field of labor economics and statistics. Its
Bureau Of Labor
B Resource
Statistics (BLS)
responsibilities include finding data on wage, national pay, and industry surveys, such as the National Compensation Survey
Management (NCS) and the Occupational Employment Survey (OES).
Human Business An insurance type for closely held businesses, it is designed to provide funds to enable the remaining partners in a business,
B Resource Continuation or the remaining stockholders in a closely-held corporation, to purchase the business interest of a deceased or disabled
Management Insurance partner or stockholder. Compare with PARTNERSHIP INSURANCE and STOCK REEPURCHASE INSURANCE.
Human Several definitions: 1) This is the cost of operating a business. It is a deductible for federal income tax purposes. 2) Where the
B Resource Business Expenses employee is concerned, a business expense is that expense for which the employee is reimbursed and which is not included in
Management his/her pay.
Human
B Resource Business Insurance This type of insurance is intended to serve the insurance coverage needs of a business, as opposed to that of an individual.
Management
Human
Business Travel An insurance plan that covers both employees and the employer should an accident occur while the employee is traveling on
B Resource
Accident Insurance company business.
Management
Human
Business Travel An insurance plan that covers both employees and the employer should an accident occur while the employee is traveling on
B Resource
Accident Plan company business.
Management
Human
In the United States many states require that insurance companies make this publication available to an applicant for life
B Resource Buyer's Guide
insurance. The Buyer's Guide enables the applicant to make a better-informed choice among policies.
Management
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Human The inverse of cost of living. COST OF LIVING is the cost of purchasing goods and services, as determined by the demand
B Resource Buying Power and supply of goods, services, and property. For example, if the cost of living is 10% higher in an area, the buying power is
Management approximately 10% less in that area.
Human
Also known as a flexible benefit plan, offers each employee several choices as to the types and or amounts of organization
C Resource Cafeteria Plan
benefits. An employee is given a set amount, and he or she can choose how it is spent.
Management
Human A guarantee of pay for a minimum number of hours when employees, who are not scheduled to work and who are not on call,
C Resource Call Back Pay are called back to their work. They receive pay for at least the minimum number of hours established, even if they do not end
Management up working up to those many hours.
Human 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
C Resource Call In Pay whom there is no work. The employees receive pay for at least the specified minimum number of hours, even if they did not
Management work at all.
Human
A stock option contract that gives you the right to purchase a specified quantity of stock at a specified strike price by a
C Resource Call Option
specified expiration date.
Management
Human
Canada Pension Plan This plan applies to all Canadian provinces (with the exception of Quebec). This plan primarily provides for retirement and long-
C Resource
(CPP) term disability income benefits to residents.
Management
Human Canadian Council Of Similar to the National Association of Insurance Commissioners in the United States, this Canadian organization of provincial
C Resource Insurance Regulators insurance regulators meet regularly to discuss insurance matters. The Council also develops model insurance legislation,
Management (CCIR) which it encourages legislatures to adopt.
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Human Canadian Life And Most of the life and health insurance companies in Canada belong to this Association. Their main responsibility is to conducts
C Resource Health Insurance research on insurance issues and to promote the best interests of the insurance industry. The CLHIA is the main source of
Management Association (CLHIA) information about the life and health insurance industry in Canada.
Canadian Life And

Human Health Insurance This is a federally incorporated, nonprofit company established by the Canadian Life and Health Insurance Association
C Resource Compensation (CLHIA) in order to protect consumers against loss of benefits in the event a life or health insurance company becomes
Management Corporation insolvent.
(CompCorp)
Human
C Resource Canadian Method A Canadian prescribed method for the calculation of modified net premiums and reserves.
Management
Human
An individual health insurance policy that can be terminated at any time by the insurer. See also CONDITIONALLY
C Resource Cancelable Policy
RENEWABLE POLICY, GUARANTEED RENEWABLE POLICY, and OPTIONALLY RENEWABLE POLICY.
Management
Human
The total incentive opportunity a sales representative can earn in a given period. Sometimes a cap is referred to as the
C Resource Cap
maximum, the lid, or the ceiling.
Management
Human
The capability of a worker, system, or organization to produce output per time period. It can be classified as budgeted,
C Resource capacity
dedicated, demonstrated, productive, protective, rated, safety, or theoretical.
Management
Human The value of all the assets employed in the course of business (e.g. equity and preference capital, fixed and current assets,
C Resource Capital Employed and gross borrowings). Sometimes used as a measure of performance for executive incentive plans. Most commonly used in
Management the calculation of Return on Capital Employed. See also RETURN ON CAPTIAL EMPLOYED.
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Human
C Resource Capital Expenditures Monies spent to acquire or upgrade physical assets such as buildings and machinery.
Management
Human
Capital Gains
C Resource
Taxation
A tax levied on profits realized from the sale of a capital asset, such as stock and real estate.
Management
A health insurance payment method whereby a fixed amount of money is paid per person to cover all services, without regard
Human
to the number or nature of services rendered to each person within a set period of time. It is the provider who bears the
C Resource Capitation Basis
financial responsibility to coordinate patient care within the fees or capitated rate for all patients. See also FEE SCHEDULE
Management BASIS.
Human
Agents who work exclusively for one insurance company and who may not represent another company. See also EXCLUSIVE
C Resource Captive Agents
AGENTS.
Management
Usually set up and owned by a parent company for the purpose of insuring the parent company's exposures to loss. This type
Human
Captive Insurance of insurance company provides insurance coverage at a lower cost than is available by going through the general insurance
C Resource
Company market. A captive insurance company may be either a non-admitted, nonresident, or foreign insurer. May also provide
Management reinsurance to a self-insure or a domestic company.
Human A full-time commissioned salesperson who works out of an insurance company's field office, holds an agent contract with that
C Resource Career Agent company, and sends most or all of his or her business to that company. On occasions, a career agent may broker business
Management with other companies.
Human
A method used to calculate payout to a retiree in a defined-benefit pension plan by determining average annual salary. Years
C Resource Career Average
where less than 1,000 hours were worked may not always be included in the calculation.
Management
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Human Career Average

This describes a formula by which retirement benefits are calculated, based on compensation for the entire amount of time in
C Resource (Career Earnings)
the plan. See also DEFINED BENEFIT FORMULA.
Management Benefit Formula
Human
Career Average A formula which basing retirement benefits on actual credited compensation of an employee during his or her total period of
C Resource
Pension service or participation.
Management
Human A series of defined levels where the nature of work is similar and the levels represent the organization‘s typical requirements
C Resource Career ladder for career growth. Parallel ladders and overlapping ladders are often created to allow transition from one field to another (e.g.,
Management from engineering to management). Also called career pathing.
Human
Carpooling is a program whereby employees are encouraged to share rides to work so as to reduce traffic problems, preserve
C Resource Carpooling
the environment, and save money.
Management
Human
Found in most medical expense policies, this provision permits you to apply both eligible in-network and out-of-network
C Resource Carry Over Provision
expenses incurred during the last three months of the calendar year to the next year's deductible or out-of-pocket maximum.
Management
Human A cost-containment program designed to identify alternate, less costly methods of treatment for seriously ill patients without
C Resource Case Management sacrificing the quality of care a patient receives. Also called large claim management or medical case management. See also
Management CATASTROPHIC CLAIM MANAGEMENT.
An established benefit plan resembling a defined contribution plan. The characteristics are usually annual or monthly account
Human
Cash Balance additions made at a predetermined rate (e.g., a percentage of pay). These contributions grow at a stated rate. Upon retirement
C Resource
Pension Plan or withdrawal, the participant may receive the full account balance in one lump sum, so long as the benefits are fully vested.
Management The account balance may be used to purchase an annuity.
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Human
Cash Basis Cash basis compensation implies two things. The first is that the person is paid cash and not in kind, such as room and board
C Resource
Compensation or transportation. The second is that the company records labor expenses as they occur or are paid, and not as accrued.
Management
Human
The amount paid out throughout the entire year, along with all the incidental changes. The timing of salary changes affects the
C Resource Cash Flow
actual monies paid out, pay period by pay period.
Management
Human
A financial statement that highlights monies actually received and paid out within a certain time frame (typically a year). It
C Resource Cash Flow Statement
represents the differentials in the cash and cash equivalents account for the period in question.
Management
Human
C Resource 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.
Management
Human
Cash Or Deferred A program in which employees have the option of taking cash or placing some of their earnings into an established trust on a
C Resource
Arrangements pre-tax basis.
Management
Human
Cash Payment
C Resource
Option
A life insurance policy dividend option under which benefits are paid to policy owners in cash.
Management
Human
Cash Premium Used for industrial insurance. Under this system, the broker directs the home office of the actual amount collected per policy.
C Resource
Accounting System The home office then updates the policy records to mirror these collections and prepares new collection records.
Management
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Human
A type of the life income option with refund, which specifies that any proceeds remaining when the beneficiary dies is to be paid
C Resource Cash Refund Option
in a lump sum to the contingent payee. Compare to the installment refund option.
Management
Human
Cash Surrender The amount available in cash when the owner of a policy voluntarily terminates the policy before it matures or becomes
C Resource
Value payable by death.
Management
Human In a life insurance policy, this is the amount of money, adjusted for factors like policy loans or late premiums, which would be
Cash Surrender
C Resource
Value Option
received by the policy owner if he/she were to cancel the coverage and surrender the policy to the insurance company. Also
Management known as the net 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
Human
late premiums, that the policy owner will receive if the policy owner allows the policy to lapse or cancels it and surrenders the
C Resource Cash Value
policy to the insurance company. Cash values are a feature of most types of permanent life insurance. Compare to CASH
Management SURRENDER VALUE. Also known as INSIDE BUILD-UP and policy owner's equity.
Human The exercise of an option by an individual through an outside broker or dealer. The broker, in effect, makes simultaneous
Cashless Option
C Resource
Exercise
purchases and sales of the underlying option shares and delivering cash or stock to the individual for the options. The
Management individual does not therefore have to actually come up the purchase price.
Human A cost-containment program designed to identify alternate, less costly methods of treatment for seriously ill patients without
Catastrophic Claim
C Resource
Management
sacrificing the quality of care a patient receives. Also known as catastrophic claim management, large claim management, or
Management medical case management.
Human Proof required by statute in Kansas, Missouri, Rhode Island, and Puerto Rico to show that the facts not accurately represented
Causal Relation
C Resource
Requirements
in an insurance application were material. In other words, that the misrepresentation affected the insurers decision to insure
Management against that particular loss, to whatever extent.
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Human The definition of reinsurance is the transfer of part or all of a risk insured against to another insurance company. The transferor
C Resource Ceding Company of the risk is known as the 'ceding company' while the transferee (receiver of the risk) is known as the 'assuming company' or
Management the REINSURER.
Human
Central Index Key A code used by the Securities and Exchange Commission's (SEC) computer systems to identify corporations and individual
C Resource
(CIK) people who have filed disclosure with the SEC. The CIK can be used to find a specific company or fund on EDGAR.
Management
Human
C Resource Central Tendency In statistics, central tendency is a measure THAT indicates the middle (mean, median or mode) of a data distribution.
Management
Human
Central Tendency The end result when evaluators rate individual performance of subordinates toward the center of a performance scale, implying
C Resource
Error the assumption that everyone's performance is about average or that different performance levels are not significant.
Management
Human The extent to which a central group controls the determination of and the practice of administration of salaries, most
C Resource Centralization commonly, across organizational units. The degree of centralization or decentralization depends on the CULTURE an
Management organization.
Human
C Resource Certain Payment Payment not based on any condition. This is payment that will be made no matter.
Management
Human In terms of assumption reinsurance, this is a certificate sent to each 'transferor of risk' or 'ceding company' to give the policy
Certificate Of
C Resource
Assumption
owner notice that: (1) the risk had been assumed, and (2) pertinent information about the new insurer, assuming company, or
Management the REINSURER.
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Human A document that grants an agent power to act for the insurance company. This document comes from the insurer and is given
Certificate Of
C Resource
Authority
to the agent as proof of his authority. The document not only grants authority but also outlines the extent of that authority. A
Management certificate of authority may be used in any situation where one party grants power to another to act on the first party's behalf.
Human
Certificate Of A certificate issued by an insurer to the beneficiary of a life insurance policy. This certificate details the minimum interest rate,
C Resource
Indebtedness which is guaranteed, and the frequency with which interest payments will be made.
Management
Human A document given to the insured by the organization insurance plan. This document outlines the type and extent of coverage to
Certificate Of
C Resource
Insurance
which the organization member is entitled and the beneficiary of that coverage. Very often, the certificate will also contain a
Management rundown of the contract terms as they affect individual organization members. See also master contract.
Human
C Resource Cession The act of passing risk to another. The act of ceding. See Ceding Company.
Management
Human
C Resource Champus Health coverage provided by the United States government to members of the armed services.
Management
Human
C Resource Chance Of Loss In insurance terms, this is the likelihood that an event (such as death or injury) will happen.
Management
Human A clause within a contractual document making provisions for conditions that must be satisfied in the case of a change of
Change In Control
C Resource
Provision
control. The change of control does not necessarily have to be a complete change of ownership. It may only be a percentage
Management of the company that changes hands.
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Human
The deliberate effort of an organization to anticipate change and to manage its introduction, implementation, and
C Resource Change management
consequences.
Management
Human
Change Of An individual health insurance policy clause that provides that the insurer has the right to make amendments or adjustments to
C Resource
Occupation Provision a policy's premium rate or benefits available when the insured changes work position or careers.
Management
Human
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
C Resource
Of Accounting way a material item is treated. See also MATERIAL FACT.
Management
Human
C Resource character The sum total of an individual's personality traits and the link between a person's values and her behavior.
Management
Human
Providing an employee with a chauffeur in addition to a car. For tax purposes, the value of the chauffeur is determined
C Resource Chauffeur Services
separately from the value of the car.
Management
There are two instances where an employer may become involved with an employee's Child Support: 1) Where there is a court
Human order requiring the employer to withhold the support payment from the wages of the employee. Under the Child Support
C Resource Child Support Enforcement Amendments of 1984 these payments take precedence over all other garnishment orders. 2) Under the Qualified
Management 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
Church employees are generally exempt from the requirements of ERISA, unless they conduct business other than directly
C Resource Church Plans
related to the operation of church.
Management
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Human
A provision in Title VII of the Civil Rights Act of 1964 that seeks to prohibit discrimination in all areas of employment on the
C Resource Civil Rights Act
basis of race, color, religion, national origin or sex.
Management
Human
This is notification given to an insurance company asking for payment under the term of the insurance policy. May also be
C Resource Claim
referred to as insurance claim.
Management
Human This is the department in a life and/or health insurance company responsible for processing claims. This department also has
Claim Administration
C Resource
Department
claim examiners whose duty it is to review claims made, check into their validity and then authorize the payment of benefits to
Management the proper party.
Human
An employee who investigates insurance claims for an insurance company. This individual establishes that claims are valid
C Resource Claim Examiner
and authorizes payment for these claims, while denying those that are fraudulent or invalid.
Management
Human In terms of health insurance calculations, the claim frequency rate is the anticipated percentage of insured that will make
Claim Frequency
C Resource
Rate
claims against the company and the number of claims they will make during a certain period of time. The claim frequency rate
Management is used to calculate the estimated average cost of claims, which, in turn are used to establish premium rates.
Human
A system of operation whereby pertinent information regarding a claim is gathered for the determination of whether or not
C Resource Claim Investigation
payment is to be made on that claim.
Management
A claim department's estimate of the amount of money needed to pay a claim. The estimate is made with the help of
Human
information that the claim department gathers in the course of handling the claim. This information may involve, for example,
C Resource Claim Reserve
the extent to which the claim is covered by the policy, the effect of previously paid claims on the amount of coverage available
Management to pay a current claim, and the effect of any applicable reinsurance coverage on the claim.
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Human
C Resource Claimant The person(s) making a request, under the terms of an insurance contract, for payment of benefits due.
Management
Human
C Resource Claims Base The claim, employees as a whole, actually incurred in the previous two or three-year period under the same benefits plan.
Management
Human Set procedures, meeting regulatory standards, must be in place and outlined succinctly in plan description for every employee
C Resource Claims Procedures benefit plan. The set procedure must, in no way, discourage or make it unnecessarily difficult for individuals to apply for
Management benefits. The procedure must also provide participants with a policy for appeals (within a specific time frame).
Human
Class Beneficiary
C Resource
Designation
A way of classifying certain beneficiaries as one or as a group (e.g. children of the insured).
Management
Human
C Resource Classification Hierarchical structure of jobs arranged into classes or pay grades.
Management
Human
C Resource Classification Control Any procedure set up for the review and assignment of jobs to established classes / grades.
Management
Human
Classification method Compares jobs on a ―whole‖ job basis. Predefined class descriptions are established for each job and jobs are placed in
C Resource
of job evaluation whichever classification best describes them.
Management
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Human The Criminal Records (Clean Slate) Act 2004 establishes a clean slate scheme to limit the effect of an individual's convictions
C Resource Clean Slate in most circumstances (subject to certain exceptions set out in Section 19) if the individual satisfies the relevant eligibility
Management criteria.
Human
C Resource 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.
Management
Human
C Resource Cliff Vesting When, after a specified number of years of service, all benefits accrued vests without any gradual vesting before the set time.
Management
The short-term phenomenon created by the current junior or senior leaders. Organizational climate is a system of the
Human
perception of people about the organization and its leaders, directly attributed to the leadership and management style of the
C Resource climate
leaders, based on the skills, knowledge and attitude and priorities of the leaders. The personality and behavior of the leaders
Management creates a climate that influences everyone in the organization.
Human
An insurance policy in which the condition of the policy and the application constitute the agreement, in its entirety, between the
C Resource Closed Contract
policy owner and the insurer. Contrast with OPEN CONTRACT.
Management
Human A structured questionnaire used for job analysis that provides the incumbent with a written set of questions regarding job
Closed ended
C Resource
questionnaire
content that limits the responses to a predetermined set of answers. Questions are either behaviorally based or task based
Management and require validation.
Human
The finalization of the sale of property. Used to describe the securing of commitment from a prospective buyer by requesting
C Resource Closing
and obtaining the prospect's agreement to submit an application for the amount recommended in the sale proposal.
Management
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Human Employers may find it useful to pay for an employee's membership in clubs and professional organizations. Reasons for doing
C Resource Clubs so would include the contacts made by the employee, the knowledge gained, the community perspective, ore growth of the
Management employee.
Human
C Resource CMSA Consolidated Metropolitan Statistical Area (CMSA). See METROPOLITAN STATISTICAL AREA (MSA).
Management
The Commission Nationale de l'Iinformatique et des Libertés or CNIL is an independent French administrative authority whose
Human
mission is to ensure that data privacy law is applied to the collection, storage, and use of personal data. Created by law n° 78-
C Resource CNIL
17 of 6 january 1978 about computers, files and liberties (data privacy). EQ. Privacy is a central element of the FTC's (Federal
Management Trade Commission)
Human
A qualified person who concentrates on improvement of a paddler's performance and skills rather than teaching new or basic
C Resource Coach
skills.
Management
Human
C Resource Coaching A one-to-one process between a manager and subordinate, whereby the former will ‗train‘ the latter. See also Mentoring.
Management
Human
Coefficient of The ratio of the explained variation to the total variation is called the coefficient of determination. This is a measure of
C Resource
Determination predicitive reliability, and is defined as the correlation coefficient squared.
Management
Human
Found in most health insurance policies, this is an express requirement that the insured pay a particular percentage in excess
C Resource Coinsurance
of the deductible and of all eligible medical expenses.
Management
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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,
Human
usually upward, based upon changes in the cost of living. These are often found in collective bargaining agreements. In
C Resource COLA
addition, they constitute large increases in government programs, such as social security. 2) A Cost-of-Living Allowance is a
Management payment to an expatriate employee for differences in living costs between the host and home country of the employee.
This is when someone designates a policy‘s death benefit OR cash surrender value TO a creditor AS security WHEN applying
Human
FOR a loan. IF the loan does NOT get repaid, the policy proceeds go TO the creditor up TO the outstanding loan‘s balance.
C Resource Collateral Assignment
The policy‘s beneficiary receives the remainder. Life insurance IS acceptable security TO lenders because it IS freely
Management assignable.The lender IS guaranteed the money IF the borrower dies before repaying the loan.
Human
C Resource Collective Bargaining The process by which [an] employer[s] will negotiate employment contracts with [a] union[s].
Management
Human
Collective Bargaining Agreements between employees and employers outlining acceptable work conditions including working hours, vacation,
C Resource
Agreements holidays, and termination of service guidelines. These employees are typically part of a bargaining unit represented by a union.
Management
Human Collectively bargained plans may have many features not allowed in other forms of qualified plans. A great deal of flexibility is
Collectively
C Resource
Bargained Plans
written into the laws allowing unions and management to design plans that are in keeping with the circumstances of the
Management particular situation.
Human
In a disability insurance policy establishing when the definition of total disability changes from the inability to perform a certain
C Resource Combination Clause
job to the inability to perform any job.
Management
Human
Combination
C Resource
Company
A life insurance company that sells both industrial and ordinary insurance policies.
Management
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Human
Combination Dental This kind of dental plan contains both the features of the scheduled and nonscheduled plans. Generally, the combination plans
C Resource
Plan cover preventative and diagnostic procedures on a nonscheduled basis and other services on a scheduled basis.
Management
Human
Combination Pay 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
C Resource
Plan elements (e.g. commission and/or bonus).
Management
Human This is a type of pension plan that adopts an approach whereby part of the funding (the employer's contribution) is allocated
C Resource Combination Plan and used to acquire life insurance policies with cash values. The other part of the funding is unallocated and is placed in a
Management conversion fund. Consider also ALLOCATED FUNDING and UNALLOCATED FUNDING.
Human
Commissions may be defined as payment to employees or representatives, usually in sales, of a set percentage of the selling
C Resource Commission
price of the product.
Management
Human
Commissioners
C Resource
Method
Established by the United States, this is a system used to calculate modified net premiums and reserves for life insurance.
Management
Several definitions: 1) In terms of medical insurance policies, this is a common clause, which specifies that: should two or
Human more members of the same family be injured in the same accident, they will only be subject to one deductible. (2) In terms of
Common Accident
C Resource
Provision
many voluntary organization accidental death and dismemberment policies, this is a clause that provides that the amount
Management 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 This is an insurance provision requiring that the beneficiary survive the insured by a particular length of time for the benefits to
Common Disaster
C Resource
Clause
pass to him/her. In a situation where the beneficiary does not survive the insured by the specified amount of time, the benefits
Management will be paid as if the primary beneficiary predeceased the insured.
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Human A common law employment relationship is deemed to exist in a situation where the person/company for whom services are
Common Law
C Resource
Employees
being rendered the right to direct/control the person rendering that service. The said control must go beyond the employer
Management having the right to control what the employee does. It must include the right to instruct the employee how to do it.
Human Also known as focal point, this is the date on which an entire organization will receive increases in pay. A company may,
Common Review
C Resource
Date
therefore, affect increases for all employees on June 1s. (Those employees who were hired half way through a cycle will
Management normally have their increases prorated.)
Human
Used to describe the units of equity ownership in a corporation or units of ownership in a mutual fund. Usually, these will have
C Resource Common Shares
voting rights and sometimes dividends attached to them. The appreciation and the dividends are neither fixed nor guaranteed.
Management
Human
May be a share in a publicly traded or a privately held company. Holders of common shares have voting and dividend rights.
C Resource Common Stock
See also COMMON SHARES.
Management
Human
Comprises the ability to express oneself effectively in individual and group situations, either orally or in writing. It involves a
C Resource communicating
sender transmitting an idea to a receiver.
Management
Human
Used to describe an insurance plan in which the risk is shared equally between the members. Also the premium rebate is
C Resource Community Rated
based on the overall community's health and that of the individual members. Also allows for an increase in the insured benefits.
Management
Human
Term used to describe the application of the same premium rates for a particular group without the consideration of past loss
C Resource Community Rating
experience or their potential for loss.
Management
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Human In Canada, this is based on a variety of factors (interest rates, assumptions of mortality, pension entitlements and so on). This
C Resource Commuted Value is a term used to refer to the current value of all future income payments from a pension plan. This is typically calculated and
Management provided by the pension administrator upon request.
Human Commuting is travel between the employee's residence and regular place of business and is considered a non-deductible
C Resource Commuting personal expense. However, transportation expenses between two specific business locations during the workday are
Management considered a deductible expense.
Human Excluded from Income. In general, when an employer provides a vehicle to an employee for business purposes, the value of
C Resource Company Cars the vehicle may be excluded from the employee's income. However, if the employee uses the vehicle for personal as well as
Management business reasons, only the portion of the car's value that can be attributed to business use may be excluded.
Human
Company Retention A means by which the costs of various life insurance policies are compared. The cash values, dividends and yearly premiums
C Resource
Method are weighted by the chances they will be paid. Consider also comparison methods.
Management
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
Human was used for both external competitive comparisons and for internal equity decisions. Today comparable worth focuses
C Resource Comparable Worth special attention on pay practices that may match the market or perpetuate past internal practices, but still create or perpetuate
Management discrimination in the treatment of those holding female-dominated jobs whose content is similar but not equal to that of male-
dominated 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
The ratio of an employee's actual salary (the numerator) to the midpoint of the applicable (the denominator) salary range. To
C Resource Compa-Ratio
calculate an individual's compa-ratio, divide the actual salary by the midpoint of the assigned salary range.
Management
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Human
Compensable Factor In quantitative job evaluation plans, this is a term used to describe yardsticks used to measure and identify particular levels of
C Resource
Degree compensable factor. Typically, there are about seven degrees for each factor.
Management
Human
Compensable Factor
C Resource
Weight
In a job evaluation plan, this is the percentage, weight or influence, each compensable factor in a job is assigned.
Management
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
Human
a job worth hierarchy (job evaluation). Factors are usually measured in degrees and are weighted, based on their pre-
C Resource Compensable factors
determined value to the organization. Typical factors include skills, effort, responsibility, scope of authority, and working
Management conditions.
Human A methodical approach to assigning a monetary value to employees in return for work performed. Compensation may include
C Resource Compensation any or all of the following: base pay, overtime pay, commissions, stock option plans, merit pay, profit sharing, bonuses, housing
Management allowance, vacations and all benefits. This is referred to as remuneration in some foreign countries.
Human
Compensation A high level committee (board of directors level) that approves pay and incentive award programs where senior management
C Resource
Committee of the company are concerned.
Management
A requirement of the Securities and Exchange Commission (SEC), this is an annual report to made by the Compensation and
Human Benefits Committee. The Compensation and Benefits Committee has the responsibility for establishing compensation for a
Compensation
C Resource
Committee Report
company's executives as well as for other compensation programs. Members may not be employees of the company, nor may
Management they be involved with the executive compensation programs. The Committee takes into account information provided by
independent compensation consultants.
Human
This describes the overall cost to a company, including unforeseen and unrealized cost effects of current compensation
C Resource Compensation Costs
decisions concerning the total compensation program (base pay, incentive programs and benefit plans).
Management
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Human Compensation Limits Executive pay in corporations is limited in small measure. The amount of compensation paid to executives that is deductible or
C Resource For Officers Of reimbursable to the company is no more than $1 million in compensation paid to an individual chief executive officer or the four
Management Corporations other highest compensated officers of a corporation.
Human Compensation
This agreement requires employees who receive compensation that‘s disallowed as a deduction to the corporation to return
C Resource Reimbursement
the funds to the corporation.
Management Agreement
Human Compensation This describes the intrinsic guiding factor for the application and administration of a compensation program. Such a policy
C Resource Strategy / Philosophy would, of course ensure that a compensation program (which would include benefits and pay) would align with the company
Management / Policy philosophy.
The intent of an award of compensatory damages is to compensate the plaintiff for loss suffered. To re-instate the plaintiff to
Human
Compensatory And the position in which they were before they suffered the loss. The intent of an award of punitive damages is to both punish the
C Resource
Punitive Damages defendant and to act as a deterrent to others from similar behavior. Employees wrongfully dismissed may seek compensatory
Management and punitive damages.
Human
C Resource Competencies ‗an underlying characteristic of a person‘ ‗motive, trait, skill, aspect of one‘s self-image or social role, or a body of knowledge‘.
Management
Human
Competency-based Competency based pay is a compensation system that recognizes employees for the depth, breadth, and types of skills they
C Resource
pay obtain and apply in their work. Also known as skill based and knowledge based pay.
Management
Human
Competitive ‗People are the source of competitive advantage‘. Other systems in an organization can be copied but not the people in the
C Resource
advantage organization.
Management
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Human
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.
C Resource
Ratio In other words, how the market pay ratio compares to the company's midpoint range in salaries of the same category.
Management
Human
Information from salary surveys of competing organizations' pay practices. This data allows compensation managers to set pay
C Resource Competitive Pay Data
that is at, above, or below market level, depending on their organizations' pay strategies.
Management
Human
Competitive Pay Usually, this is a game plan that a company has, whereby they use the results of labor market surveys as means of evaluating
C Resource
Policy and determining how to set pay levels.
Management
Human Usually only applicable to an employee with an expatriate status, this is a bonus / lump sum given after the successful
C Resource Completion Bonus completion of an assignment. The objective is to provide incentive for the expatriate to continue with the assignment until its
Management completion.
Human
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
C Resource Compound Interest
has accrued over time.
Management
Human
Compound Salary
C Resource
Growth Rate (CSGR)
This term is employed to describe the growth rate, expressed as a percentage of a salary over a period of time.
Management
Human
Comprehensive This is a term used to describe a medical insurance program providing coverage of most medical expenses within the one
C Resource
Health Plan policy. There is usually an annual deductible, which must be met before benefits become payable.
Management
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Human Comprehensive
C Resource Major Medical Health insurance coverage with a combination of both a major medical policy and a hospital expense policy.
Human
Compressed Work- A term used to describe any alternative workweek schedules (10 hour days or more complex rotation resulting in extended
C Resource
Weeks weekends).
Management
Human Pay differentials too small to be considered equitable. The term may apply to differences between (1) the pay of supervisors
C Resource Compression and subordinates, (2) the pay of experienced and newly hired incumbents of the same job, and (3) pay-range midpoints in
Management successive job grades.
Human Compulsory
This describes the age and or date at which employees must retire. Since the amendment to the Age Discrimination in
C Resource Retirement Age /
Employment Act of 1967 (ADEA), mandatory retirement, which is based only on age, has mostly been prohibited.
Management Date
Human
Computer-Aided Job
C Resource
Evaluation
In job evaluation, a computer may be used to manipulate statistical data in order to rank jobs.
Management
Human When it is to their benefit, employers provide computers for employees to use when working at home. Depending on the
Computers Employer
C Resource
Provided
amount of personal use by the employee and the family, the benefit may not be considered taxable compensation to the
Human 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
Conditionally
C Resource
Renewable Policy
the end of a premium payment period. Compare with CANDELABLE POLICY, GUARANTEED RENEWABLE POLICY, and
Management OPTIONALLY RENEWABLE POLICY.
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Human
This is a range that‘s computed for the observed value that should include the ―real‖ value 90% or 95% of the time. To
C Resource Confidence Interval
determine this range or confidence interval, you must first compute the standard error of the value.
Management
Human
Confidentiality
C Resource
agreement
An agreement restricting an employee from disclosing confidential or proprietary information.
Management
Human
Confirmation Issued to a beneficiary of a life insurance policy, this certificate outlines the amount of life insurance proceeds in a retained
C Resource
Certificate asset account and other pertinent information.
Management
Human
Any business activity, personal or company related, that interferes with the company's goals or that entails unethical or illegal
C Resource conflict of interest
actions.
Management
Human
C Resource Conservation An attempt by insurer's or their agent to prevent a policy from lapsing.
Management
Consolidated
Human In the United States, this is a statute that mandates that employers sponsoring organization health plans continue to offer
Omnibus Budget
C Resource 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).
Management
1985 (COBRA)
Human Consolidated
C Resource Subsidiary An accounting method used for subsidiaries where the ownership is more than 50%. See COST METHOD.
Management Accounting
Page 56 of 333
Human Constant Population

The first approach used in determining salary increase budgets. In this approach, there is no information on any planned
C Resource With Constant
promotions, new hires, terminations, reclassifications, etc. It is assumed, that the status quo is maintained.
Management Midpoints Model
Human
C Resource constraint Any element or factor that prevents a person from reaching a higher lever of performance with respect to her goal.
Management
Human
constraint
C Resource
management
The practice of managing resources and organizations in accordance with the Theory Of Constraints (TOC) principles.
Management
Human
The extent to which a measurement reflects the specific underlying construct it purports to assess. Construct validity requires
C Resource Construct Validity
gradual accumulation of evidence from a variety of sources.
Management
Human
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
C Resource Constructive
imposed at the time when an individual reaches out to take the benefit.
Management
Human Legally equivalent to physical delivery of a policy. Constructive delivery occurs: (a) when an insurer parts with control of the
C Resource Constructive Delivery policy with the intention that the insurer will be unconditionally bound by the policy as a completed instrument, or (b) when the
Management policy is physically delivered to an agent of the applicant.
Human
Constructive
C Resource
dismissal
Coercion by threats to act or promises to refrain and includes a resignation given as an alternative to be dismissed.
Management
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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
Human
Constructive employee-stockholder‘s wages are reduced, and the difference is treated as a dividend. This creates increased corporate
C Resource
Distributions taxable income and tax liability for the corporation since the reduced wages increase the corporation‘s earnings but the cash to
Management 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
The use of non-employee professionals by companies provides flexibility in the workforce. Consultants can undertake and
C Resource Consultants
complete projects without increasing the workforce of the organization.
Management
Human CPI measures the change in consumer prices, as determined by the Bureau of Labor Statistics' monthly survey. Many pension
Consumer Price
C Resource
Index (CPI)
and employment contract changes are tied to changes in consumer prices. This protects employees against inflation and
Management reduced purchasing power.
Human
The communication of any information relating to a person's credit-worthiness, capacity and or general reputation by a
C Resource Consumer Report
consumer reporting agency.
Management
Human
Consumer Reporting Any person or body that provides consumer reports on a regular basis and makes them available for profit or non-profit basis,
C Resource
Agency to another. Known also as credit reporting agency. See also FAIR CREDIT REPORTING ACT (FCRA).
Management
Human
The extent to which a measurement reflects the specific intended domain of content. Stated as a question: Do the ...
C Resource Content Validity
thoroughly cover all relevant aspects of the conceptual domain they are intended to measure?
Management
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Human
A pre-established period (usual two years) within which the insurer may contest the validity of a life insurance policy. Contrast
C Resource Contestable Period
with incontestable clause.
Management
Human
Events that are likely but not certain to happen. Insurance premium rates and insurance companies' willingness to accept risks
C Resource Contingencies
are based partly on the degree of likelihood or the probability that certain contingencies will or will not happen.
Management
Human
A fund or reserve set up by an insurance company of its own volition to cover or help to cover any unusual or unexpectedly
C Resource Contingency Reserve
large claim amounts.
Management
Human An option under which an employee may elect to receive, under certain conditions, a reduced amount of annuity with the same
Contingent Annuity
C Resource
Option
income, or a specified fraction, to be paid after his death to another person designated as his contingent annuitant, for that
Management person's lifetime. The contingent annuitant is usually the husband or the wife. (See JOINT AND SURVIVOR ANNUITIES.)
Human
Contingent Should the person designated to receive the proceeds of life insurance policy, predecease the person whose life is insured,
C Resource
Beneficiary then the contingent beneficiary becomes the beneficiary. May also be known as the secondary beneficiary.
Management
Human
Contingent
C Resource
Compensation
Similar to a BONUS, this is a payment or benefit that depends on the behavior and or performance of an employee.
Management
Human This is the person or party who will receive the proceeds of a life insurance policy remaining to be paid under an option of
C Resource Contingent Payee settlement at the time of the original payee's death. May be contrasted with the CONTINGENT BENEFICIARY, whose rights
Management end when the insured dies. Also known as the successor payee.
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Human
A payment that will be made upon the occurrence of a predetermined event. For instance, this is a payment that will only be
C Resource Contingent Payment
made at a certain date, if and only if, the recipient is alive.
Management
Human
C Resource Contingent workers Employees who may be: casual labor, part-timers, freelancers, subcontractors, independent professionals and consultants.
Management
Human
Tables containing morbidity statistics that indicate the distribution of claims according to the duration of the illness or amount of
C Resource Continuance Tables
expense involved in the claims.
Management
Human
Continuation COBRA and other regulations provide for health care continuation of coverage for employees who have terminated or been
C Resource
Coverage terminated from their employer.
Management
Human
Continuing Education An annual education requirement for many professionals to continue to receive certification in their respective field of work. CE
C Resource
(CE) credits are usually governed by various State Boards.
Management
Human
Continuing Legal Continuing education credit that attorneys are required to earn each year. CLE accreditation is governed by state boards. The
C Resource
Education (CLE) ERI Distance Learning Center provides CLE credit for selected courses. See our Course Credit Map for more information.
Management
Human Continuing In the United Kingdom, this is activity beyond initial training, aimed at improving skills, knowledge and understanding, whether
C Resource Professional by online courses, day seminars, spare-time study, etc. ERI provides CPD credit for UK counselors (attorneys). See our
Management Development (CPD) Course Credit Map.
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Human Continuing
This term is used generally for CPAs. CPE credits are governed by the National Accounting Standards Board (NASBA) located
C Resource Professional
in Nashville, except for Illinois and Nebraska, which are governed by their respective State Board.
Management Education (CPE)
Human
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
C Resource
Whole Life Insurance death of the insured / throughout the whole life of the policy.
Management
Human
C Resource Contract for services An agreement with an independent contractor.
Management
Human Under this kind of contract, the amount of benefit to be paid is strictly based upon the amount of loss suffered financially
Contract Of
C Resource
Indemnity
(determined at the time of loss). Insurance contracts are typically contracts of indemnity. Their object is to reinstate the
Management beneficiary to their position before their loss. See VALUED CONTRACT.
Human
C Resource Contract of service An employment agreement.
Management
Human In common law, employment is viewed and treated as a contract, and as such is subject to all the usual laws of contracts.
C Resource Contracts Consideration must, therefore pass from one party to another for a contract to be considered to be binding and for the statute
Management of frauds to apply.
Human
Peculiar to Canada, this is the amount in excess of the par value paid by the owners of the stock, minus the number of
C Resource Contributed Surplus
dividends paid to the owners of the stock.
Management
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Human
In a defined contribution pension plan, this is the maximum allowed by law to be added to the participant's account. The annual
C Resource Contribution Limit
contribution is inclusive of employer's contributions.
Management
Human
Contribution To In mutual insurance companies, this is the income that results when an insurance company makes more money than is
C Resource
Surplus required to pay for the cost of actually providing insurance.
Management
Human
Contributory Benefit
C Resource
Plan
A benefits program requiring that employees contribute part (or all) of the cost, and the employer covers any remainder.
Management
Human Contributory
Any organization insurance plan that calls for the insured to contribute a portion of the cost of the organization insurance
C Resource Organization
coverage. To be contrasted with NONCONTRIBUTORY ORGANIZATION INSURANCE.
Human
Any pension or employee benefit plan in which plan participants can or must make contributions to the plan out of their own
C Resource Contributory Plan
pockets.
Management
Human
The point within a salary range representing the desired pay for a fully qualified, satisfactory (average) performer in a job or
C Resource Control point
group of jobs at a given time (usually the midpoint of a salary range).
Management
Human 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
Controlled Foreign
C Resource
Corporation
offshore company. Technically it is defined as a foreign corporation in which U.S. person(s) has 10% or more ownership or
Management voting control.
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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
Human
more) other corporations, known as 'subsidiaries'. May also be a 'brother- sister' type association, whereby two or more
C Resource Controlled Groups
corporations are owned by the same person or groups of persons. A controlled group may also consist of a combination of the
Management two types of groups (in which case it is known as a 'combined controlled group').
Human
C Resource Convention Blank Filed annually to their respective state insurance regulators, this is a financial statement required of all United States insurers.
Management
Human
C Resource Conversion Fund A fund where all the employer's unallocated contributions to a combination plan accrue.
Management
May be defined in two ways: (1) The right, which an individual has, under certain circumstances to change coverage (e.g.
Human
change from an individual term policy to an individual whole life policy). (2) The right of an individual covered by an organization
C Resource Conversion Privilege
policy to change his or her coverage under an individual insurance policy. Typically, this kind of conversion may be made when
Management a person leaves the group or the benefits are downgraded or ended for a certain group of people.
Human
Convertible A bond that may be converted, at the option of the owner, into common shares of the issuing company at certain times and at
C Resource
Debenture specific prices.
Management
Human
Convertible Preferred
C Resource
Stock
May, at the owner's option, be converted at specific times into a certain amount of common stock of the issuing company.
Management
Human Convertible Securities Convertible securities combine aspects of both stocks and bonds, thus creating a truly 'best of both worlds' investment.
C Resource (Such As Debentures Convertible securities are a bonds, debenture or preferred stock exchangeable which, at the holder's option, may be
Management Or Preferred Stock) exchanged for the common stock of the issuing company.
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Human Term life insurance which may: 1) be converted into cash value insurance (USA) or may be the conversion of term assurance
Convertible Term
C Resource
Insurance
into an endowment assurance (UK); 2) converted into a permanent insurance policy at the option of the owner without further
Management evidence of insurability.
This is a clause included in health insurance policies that states that benefits will not be paid for amounts that are already
Human Coordination Of
covered by other organizational health insurers. The object of a coordination of benefits clause is to ensure that benefits from
C Resource Benefits (COB)
all eligible sources do not exceed 100% of permissible medical expenses. This also prevents an individual from profiting from
Management Clause duplicative organization health care coverage. Consider also OVER INSURANCE PROVISION.
Human
C Resource Core Benefits These are the basic standard benefits that are offered to every employee (e.g. life insurance and health care).
Management
Human
The skills, knowledge and abilities which employees must possess in order to successfully perform job functions which are
C Resource Core competencies
essential to business operations.
Management
Human
C Resource Core Labor Force A small group of permanent workers, for example, strategists, planners.
Management
Human
The shared beliefs, norms and assumptions of an organization, which enable it to adapt to its external environment and to
C Resource Corporate Culture
integrate its employees and units internally.
Management
Human
C Resource Corporate mission The aims and objectives of an organization.
Management
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Human The purpose of COLI is to enable a corporation to insure the lives of their highly compensated / executive level employees
Corporate-Owned
C Resource (beyond what may be available through qualified plans). The company and the executive typically share ownership and the
Life Insurance (COLI) beneficiary interests.
Management
Human
C Resource corrective action The implementation of solutions resulting in the reduction or elimination of an identified problem.
Management
Human
Several definitions: 1) In statistical terms, this is the simultaneous increase or decrease of two numerically valued random
C Resource Correlation
variables. 2) In lay man terms, this is a word used to describe some kind of association.
Management
Human
In order to qualify as life insurance for income tax purposes, a specific level of pure insurance protection, which is in excess of
C Resource Corridor
the accumulated value, must be maintained. It is this pure insurance coverage that is known as corridor.
Management
Human Peculiar to the health insurance industry, this is when a major policy has paid up to the entire amount of the benefits to the
C Resource Corridor Deductible insured party and there still exists some remaining expenses. This additional expense must be shouldered by the insured party
Management before any further coverage becomes available.
Human
Cost Comparison A means by which cost of various life insurance policies are compared by calculating the cash values, dividends and premiums
C Resource
Methods yearly and weighting them by the chances that it will be paid.
Management
Human
A plan whereby a company / organization attempts to minimize rising costs of health and welfare benefits by putting into effect
C Resource Cost Containment
programs that focus on cost effectiveness.
Management
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Human
C Resource Cost leadership A strategy of becoming the lowest-cost producer in its industry.
Management
Human
An accounting method used by affiliated companies, where the percentage of ownership is not more than 20%. Compare with
C Resource Cost Method
EQUITY METHOD.
Management
An economic concept that may be defined in various ways. 1) A discounted rate equating the market value of securities with
Human
the current value of cash flows to the security owners. 2) A discount rate equating market value of securities to the current
C Resource Cost Of Capital
value of the net operating income of a company, after tax. 3) May also refer to minimum rate of return, which must be assumed
Management of a possible investment for the market value of the company not to be affected.
Human
C Resource Cost Of Goods Sold Determined by subtracting ending inventory from goods remaining and available for sale (purchases vs. beginning inventory).
Management
Human
Cost Of Increase In
C Resource
Current Year
The eligible payroll multiplied by the average increase, adjusted to reflect the percent of the year the increase is in effect.
Management
Human
Cost Of Increase In
C Resource
Future Year
Eligible payroll multiplied by the average increase.
Management
Human
The process of establishing external pay practices, where information on labor market costs (total compensation amounts) are
C Resource Cost Of Labor
obtained from labor market competitors and relied upon when determining target total compensation opportunity.
Management
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Human
The cost of purchasing goods and services, as determined by the demand and supply of goods, services, and property.
C Resource Cost Of Living
Typically, these costs are determined by a standard packages of goods.
Management
Human
In terms of sales compensation, the cost of sales is a subjective measure of internal costs. It reflects an 'ability to pay' line of
C Resource Cost Of Sales
thinking for setting target pay levels.
Management
Human
A strategy whereby an organization minimizes the cost of making health coverage available, by transferring a portion of the
C Resource Cost Shifting
costs or cost increases to someone other than the organization itself (usually to the employee).
Management
Human
Cost-of-living An across-the-board wage and salary increase or supplemental payment designed to bring pay in line with increases in the
C Resource
adjustment (COLA) cost of living to maintain real purchasing power.
Management
Human CPI measures the change in consumer prices, as determined by the Bureau of Labor Statistics' monthly survey. Many pension
C Resource Cost-Of-Living Index and employment contract changes are tied to changes in consumer prices to protect against inflation and reduced purchasing
Management power.
Human
The cost of purchasing goods and services, as determined by the demand for and supply of goods, services, and property.
C Resource Cost-of-Living Levels
Typically, these costs are determined by a standard packages of goods, such as is used by the Consumer Price Index (CPI).
Management
Human
Counseling (work coaching) is providing day-to-day feedback to employees about areas in which their performance at work
C Resource Counseling
can improve.
Management
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Human
Coupon
C Resource
Advertisement
In Canada, the Superintendent's Guidelines defined in a retirement or welfare plan.
Management
Human The virtue that enables us to conquer fear, danger, or adversity, no matter what the context happens to be (physical or moral).
C Resource courage Courage includes the notion of taking responsibility for decisions and actions. Additionally, the idea involves the ability to
Management perform critical self-assessment, to confront new ideas, and to change.
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
Human the average benefits percentage for highly compensated employees. 2. Minimum Participation Rule: A requirement for
C Resource Coverage Rules qualified retirement plans that a plan benefit at least the lesser of: (a) 50 employees; or (b) 40 percent or more of all employees
Management 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.
Human
Covered The foundation for integrating pension plan with Social Security benefits. The IRS defines it in its regulation as, the average of
C Resource
Compensation the 35 years of Social Security wage bases up to and including the year an employee reaches the age of eligibility (retirement).
Management
Human In benefits plans, this represents the amount of employee wages or salaries used to calculate corresponding benefit amounts.
C Resource Covered Wages For instance, pension calculations are typically based on salary and generally do not include other kinds of variable
Management compensation (e.g., bonuses).
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Human This is the amount of credit or weight given to a group's actual claims experience, when calculating a projection of future
Credibility
C Resource
Percentage
claims or a dividend. May also be referred to as the credibility factor. Consider also EXPERIENCE RATING and EXPERIENCE
Management REFUND.
Human
A term insurance that decreases by nature. The purpose is to pay the balance due on a loan in a situation where the borrower
C Resource Credit Life Insurance
dies before the loan is repaid.
Management
Human
C Resource Credit Unions A credit union is a non-profit cooperative owned and operated by the members to provide financial services to its members.
Management
Human
Credited Service This is the amount of service hours recognized in a benefit formula for the purpose of determining a pension. Typically, plans
C Resource
(ERISA Standard) will credit one year of service for every year during which a beneficiary works a minimum of 1,000 hours.
Management
Several definitions: 1) A term used in accounting to describe a payment made towards an amount owed. 2) May also be a
Human
transaction between two parties whereby one (creditor/lender) provides money, goods or securities in return for a promised
C Resource Credits
future payment by the other party (debtor/borrower). Transactions such as this normally include the payment of interest to the
Management lender. Contrast with DEBIT.
Human Credits And The

The process of underwriting, that have a positive effect on an individual's mortality rating. Credits are assigned negative values.
C Resource Numerical Rating
Contrast with DEBIT and NUMERICAL RATING SYSTEM.
Management System
Human A method of performance documentation in which the rater keeps a written record of on-the-job incidents and or behaviors,
C Resource Critical Incident which may be examples of effective or ineffective behavior. The record is subsequently used as a source document to rate the
Management employee. The purpose being to avoid subjective judgments, which feature in most ranking and rating methods.
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Human
Several definitions: 1) The process of using an existing customer base for one product as prospective buyers for other
C Resource Cross-Selling
products.
Management
Human
The shared beliefs, norms, and assumptions of an organization that enable it to adapt to its external environment and to
C Resource Culture
integrate its employees and units internally.
Management
Human Several definitions: 1) An arrangement whereby payment not made when it is due is carried over to the next period. 2) May
C Resource Cumulative also refer to a type of cycle of performance where the performance of the employee currently holding a certain position is
Management accumulated and expressed over next performance periods.
Human Cumulative withholding refers to a method of determining income taxes to be withheld. Wages are added for a particular
Cumulative
C Resource
Withholding
payroll period to total wages already paid during the year. The aggregate is then divided by the number of payroll periods, and
Management any excess tax is deducted from current payment of wages.
Human
Currency Exchange The rate at which a certain country's currency exchanges with another. Distinctive changes in currency rates, relative to the
C Resource
Rates base country currency, cause the fluctuation of relative payroll costs of expatriates.
Management
Human An item on a company's balance sheet that represents the sum of cash (including cash equivalents, accounts receivable,
C Resource Current Assets inventory, prepaid expenses and other assets), which could potentially be converted to cash within a year. Contrast with NON-
Management CURRENT ASSET. Compare with CURRENT LIABILITIES and CURRENT RATIO.
Human A type of whole life insurance where the cash values are based on the insurer's current mortality, investment, and expense
Current Assumption
C Resource 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.
Management
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Human
A balance sheet item that represents the sum of all monies owed by a company and due within a year. Also known as payables
C Resource Current Liabilities
or current debt.
Management
Human
Current assets divided by current liabilities. This is an indication of a company's ability to meet short-term debt obligations. The
C Resource Current Ratio
higher the ratio, the more liquid the company is. See also RATION and QUICK RATIO.
Management
Human
A part of a utilization re-assessment program that monitors an insured's care while the insured is hospitalized and encourages
C Resource Current Review
the discharge of an insured from the hospital as soon as their medical condition no longer warrants continued in-patient care.
Management
Human
Current Settlement
C Resource
Option Rates
Settlement option rates mirroring the interest rates presently earned by the insurer.
Management
Human A curriculum vitae is a written description of your work experience, educational background, and skills. Also called a CV, or
Curriculum vitæ
C Resource
(Résumé)
simply a vitae, it is more detailed than a resume and is commonly used by those looking for work outside the U.S. and
Management Australia. A curriculum vitae is also used by someone looking for an academic job, i.e. in a college or university.
Human An amendment to a pension plan significantly reducing plan benefits or employer contributions. Types of curtailments include a
C Resource Curtailment reduction of the expected years of service of present employees, and the elimination or reduction of the accrual of certain
Management benefits for some or all of the future services of a significant count of employees.
Human
Specialized care that is provided for those who cannot care for themselves. Custodial care is usually for the old, the seriously
C Resource Custodial Care
ill, or severely injured.
Management
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Human
Customarily and Under FLSA, this means greater than occasional but less than constant. It includes work normally done every workweek, but
C Resource
Regularly does not include isolated or one-time tasks. (Section 541.701)
Management
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
Human
Customer Service changes requested by the policy owners, such as change of address, beneficiary designation, and mode of premium payment.
C Resource
Department The customer service department may also be the department that sends premium notices to customers; collects premium
Management 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.
Human
Cyclical A form of unemployment – rises in times of economic recession and falls in times of prosperity. Now shows signs of being able
C Resource
unemployment to withstand increased prosperity.
Management
Usually paid in addition to a hardship premium, danger pay is often given to expatriates who are required to live and work in a
Human
foreign country where a civil war, revolution, or some kind of terrorism could threaten the physical well-being of the expatriate.
D Resource Danger Pay
The State Department sets the rate and establishes where and when it is needed. The rate never surpasses 25% of the base
Management salary. However, companies are free to exceed this rate if they so wish.
Human A pretrial hearing where a judge determines whether or not ―scientific evidence‖ to be presented by an expert witness will be
D Resource Daubert Hearing allowed at trial. Under this test, judges evaluate whether the evidence is both ―relevant‖ and ―reliable‖ in determining if it will be
Management admissible at trial.
Human
Child care facilities that take care of children for multiple hours of a day while their parents are at work. One way to assist
D Resource Day Care Centers
working parents is for employers to provide onsite day care for employees' children.
Management
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Human "This is the money to be paid when the person insured under a life insurance policy dies. (It does not include adjustments for
Death Benefit
D Resource
Payments
monies owed.) The first $5,000 of this amount is not taxed. This money may also represent the amount payable to the
Management beneficiary of a retirement plan upon the death of the insured employee.
Human
D Resource Death Claim A request for payment due to death under the terms of a life insurance policy or annuity contract.
Management
Human Several definitions: 1) An accounting entry resulting either in an increased amount of assets or a decreased number of
D Resource Debit liabilities. (2) In terms of insurance and underwriting, debits represent factors that have a negative effect on an individual's
Management mortality rating.
Human
D Resource Debits Use Of Funds On a Cash Flow Statement, a debits use of funds is a cash expenditure of receipts.
Management
Human
Also known as liabilities, these are often divided into current liabilities (which are due within a year of the date entered on the
D Resource Debt Amounts Owed
balance sheet) and non-current liabilities (which are due more than a year after the date on the balance sheet).
Management
Human
Debtor-Creditor A group composed of lending institutions--banks, credit unions, savings and loan associations, finance companies, retail
D Resource
Groups merchants, and credit card companies--and their debtors.
Management
Human
Debts Paid By Amounts for payment against a debt due from the employee. An employer who pays an employee's debt must include the
D Resource
Employer amount as income to the employee for tax purposes.
Management
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Human
In statistics this represents any of nine points that divide a distribution of ranked scores into equal intervals where each interval
D Resource Deciles
contains one-tenth of the scores.
Management
Human
The process of reaching logical conclusions, solving problems, analyzing factual information, and taking appropriate actions
D Resource decision making
based on the conclusions.
Management
A matrix used by teams to evaluate possible solutions to problems. Each solution is listed. Criteria are selected and listed on
Human
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
D Resource decision matrix
recorded in the corresponding grid. The ratings of all the criteria for each possible solution are added to determine each
Management solution's score. The scores are then used to help decide which solution deserves the most attention.
Human
D Resource Decision Tree Model One of the Contingency theories of leadership – developed by Vroom and Yettor (1973).
Management
Human
Decreasing Term
D Resource
Insurance
This is a type of life insurance where the amount of coverage decreases over the duration of the coverage.
Management
Human
The process of gradually becoming less. In insurance terms, this is the reduction in the number of participants in an employee
D Resource Decrement
benefits plan (usually caused by such factors as retirement, disability, death or termination).
Management
A deductible is the amount of expenses that the insured party must pay before receiving any benefits from the insurance
Human
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
D Resource Deductible
amount of taxable income (e.g. mortgage interest, state taxes, charitable contributions, and business expenses that are not
Management reimbursed). See also Corridor Deductible, Integrated Deductible, and Per Cause Deductible.
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Human
Usually, the maximum amount of money the insured must pay before the insurance company starts to pay. Insurance
D Resource Deductible Limit
companies usually have a family deductible limit, which may be equal to two times the individual deductible.
Management
Human
A date occurring a period of time (typically a year) after the first anniversary of a group insurance policy. Deferring payment to
D Resource Deferral Date
this date helps insurance companies in better calculating the new premium based on the first full year‘s experience.
Management
Human
Options where an employee may defer an amount of compensation and thereby delay owing taxes on the deferred amount
D Resource Deferral Options
until the option is exercised.
Management
Human
An annuity (an investment through an insurance company) that delays income payments until the holder chooses to receive
D Resource Deferred Annuity
them.
Management
Human
Non-monetary future compensation that an employee may be entitled to, providing that he/she has accumulated enough
D Resource Deferred Benefits
credited years of service (for vesting purposes). These usually include pension plans, 401(k) plans and stock option plans.
Management
Human An arrangement where a portion of an employee‘s income is paid out at a later date than when the income was actually
Deferred
D Resource
Compensation Plan
earned. Examples include stock options, retirement plans, and pensions. For most deferred compensation, the primary benefit
Management is the deferral of tax.
Human
Typically a part of an executive compensation package where the reward for consistent performance is a financial incentive
D Resource Deferred Incentives
payable in the future.
Management
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Human
A life annuity (providing the purchaser with regular periodic payments, usually for the rest of their life) where payments are
D Resource Deferred Life Annuity
started no earlier than one year after its purchase.
Management
Human Also called a premium-delay arrangement, an agreement between an insurer and a group policy holder that lengthens the
Deferred Premium
D Resource
Arrangement
grace period of premiums on a permanent basis, usually by 30, 60, or 90 days. This agreement is usually only granted to
Management companies with excellent credit ratings.
An employer-sponsored Canadian profit sharing plan that is a type of pension. Periodically, the employer shares the business
Human
Deferred Profit profits with all employees or a designated group of employees. The employer's contribution up to a specific limit is tax
D Resource
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
Management money received from the DPSP until it is withdrawn.
Human
D Resource deficiency Failure to meet a set performance standard.
Management
Human This statute affects benefits in many ways. It prevents most taxable benefits from being offered as part of a flexible benefits
Deficit Reduction Act
D Resource
Of 1984 (DEFRA)
plan. In terms of health benefits, it makes it mandatory for employers to treat an employee spouse who is over the age of 65,
Management the same as an employee spouse under 65.
Human
Defined Benefit This is a formula used to determine the benefits due each participant, upon retirement, in a defined benefit plan. The benefit
D Resource
Formula amount is often related to the years of participation in the plan.
Management
There are basically two kinds of retirement plans: the defined benefit plan and the defined contribution plan. The defined
Human
benefit plan is one in which an employer comes up with a system that outlines how much an employee who is retiring will
D Resource 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
Management retirees' monthly stipend: years of employment with the employer, age and salary.
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Human
Defined Contribution This is a formula used to establish the amount of contributions made toward a group benefit plan on a yearly basis. This
D Resource
Formula contribution is typically a designated percentage of the participant's salary.
Management
There are basically two kinds of retirement plans: the defined benefit plan and the defined contribution plan. The defined
Human
Defined Contribution contribution plan is one in which an employer deposits a specific amount into an individual account for each employee.
D Resource
Plans Accounts such as these are not required to specify how much is to be deposited into the account on a yearly basis, but they
Management must specify how it is to be done. These kinds of plans are also known as INDIVIDUAL ACCOUNT PLANS.
Human
A style of leadership in which the leader entrusts decision making to an employee of a group of employees. The leader is still
D Resource delegative leadership
responsible for their decisions.
Management
Human
D Resource Deming's 14 points Management philosophy to help organizations increase their quality and productivity
Management
Human When an employee is assigned to a position lower (in the company's hierarchy) than the employee‘s current position. This may
D Resource Demotion be as a result of poor performance, company re-organization, or even at an employee's request. Compare with PROMOTION
Management or a lateral move.
Human
D Resource Demutualization The process of converting a stock insurance company to a mutual insurance company, or vice versa.
Management
Human Dental Care Benefits are considered an aspect of health care benefits, although insurance plans ordinarily separate the two.
D Resource Dental Care Benefits Dental insurance usually covers preventative care and treatment of teeth, gums, and the mouth. Plans might also cover
Management orthodontia, X-rays, and cosmetic work.
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Human
Dental Maintenance
D Resource
Organization
An organization like an HMO, but that provides only dental care.
Management
Human
Dental Plan
D Resource
Organization (DPO)
Similar to the HMO, this is an organization that provides dental care only.
Management
Human
A licensed dentist who works for the insurance company, advising them as to the suitability of dental treatment. A licensed
D Resource Dentist-Consultant
dentist must understand the underwriting objective of the dental plan he/she is advising.
Management
Human
Department Compa- The compa-ratio identifies exactly where an employee falls in their salary range. It is calculated by dividing the employee's
D Resource
Ratio annual pay by the midpoint of the salary range.
Management
Human Dependent Care /

Employers may help to meet employees' child and other dependent care needs through a qualified dependent care assistance
D Resource Dependent Care
program, whereby employees are reimbursed for dependent care expenses (either directly or indirectly).
Management Assistance
Human
Dependent Care For these programs, employers collect sources from within the community of available day care options and presenting these
D Resource
Referral Programs to employees who need help finding day care.
Management
Many flexible benefit programs include flexible spending accounts, which give employees the opportunity to set aside pretax
Human Dependent Care
funds for the reimbursement of eligible tax-favored welfare benefits. FSAs can be funded through salary reduction, employer
D Resource Reimbursement
contributions, or a combination of both. Employees can purchase additional benefits, pay health insurance deductibles and
Management Account copayments, or pay for child care benefits with the money in their FSAs.
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Human
Dependent Care funds for the reimbursement of eligible tax-favored welfare benefits. FSAs can be funded through salary reduction, employer
D Resource
Spending Account contributions, or a combination of both. Employees can purchase additional benefits, pay health insurance deductibles and
Management copayments, or pay for child care benefits with the money in their FSAs.
Human
Dependent Life This is a group life insurance policy that is made available, on an elective basis, to cover dependents of group members. It is
D Resource
Insurance usually sold in small amounts intended to cover final expenses.
Management
Human
This is a term used to describe something that must be numerically measured during a test or investigation, in order to answer
D Resource Dependent Variable
a problem.
Management
Human A word used to describe a person who is reliant upon another (usually, the head of a household) for financial support. A
D Resource Dependents dependent is usually a child, spouse, parent, or sibling of the employee. In some companies, the definition of a dependent has
Management been extended to include a significant other and, on occasions, son or daughter-in-law.
A method of funding a pension plan in which the sponsor of the plan places the insurance company's assets in a general
Human Deposit
account. Upon the resignation of a participant, the insurer retrieves enough funds from the general account to pay the plan
D Resource Administration
participant an annuity. This contract typically protects the sponsor of the plan against loss and guarantees minimum returns.
Management Contract May be compared with IMMEDIATE PARTICIPATION GUARANTEE (IPG) CONTRACT.
Human
Deposit Term Not really involving a deposit, this is a kind of term insurance where the premium for the first year is greater than that payable
D Resource
Insurance in subsequent years.
Management
Human In a deposition, opposing lawyers have the opportunity to review material to be presented and to ask preliminary questions
Deposition /
D Resource
Depositions
regarding a case. These sessions are transcribed, so you should worry less about presentation and more about the words that
Management are to be transcribed in depositions.
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Human
D Resource Depreciation Used to describe a decline in value in any given property through wear and tear. Contrast with APPRECIATION.
Management
Human
D Resource Deregulation The removal of entities such as financial markets, road and transport from governmental control.
Management
Human
D Resource Derivative Security Any security (stock options, warrants, convertible securities or other) that may become a share of common stock.
Management
Human
Provided by the IRS (Internet Revenue Service), this is a letter documenting the full compliance (with its rules) of a pension
D Resource Determination Letter
plan.
Management
Human
The art of developing the competence and confidence of subordinate leaders through role modeling and training and
D Resource developing
development activities related to their current or future duties.
Management
Human Group insurance that adheres to rates put in force by a state insurance commissioner and sometimes offers lower rates than
D Resource Deviated Rate those recommended in certain areas. The company is said to have 'deviated' from the bureau rate for that area. Typically this
Management is based on the group's claim experience.
Human
Give employers access to providers offering discounted services. DHMOs are becoming more popular amongst employers as
D Resource DHMOs
a way to increase dental benefits while containing costs.
Management
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Human
Diagnostic Related A system of health benefit payment, where the payments are based on the individual's diagnosis as opposed to the actual
D Resource
Groups (DRGS) number of medical services received.
Management
Human
A method for gathering detailed information about a job by requiring the job incumbent to keep track of his or her specific
D Resource Diary / Log
activities during a determined period of time.
Management
Human Dictionary Of Based on over 75,000 job analyses, this dictionary was developed and produced by the Department of Labor. It defines over
D Resource Occupational Titles 20,000 jobs. Supposedly, the DOT has been replaced by O*Net, a new method of defining jobs, adopted by the Federal
Management (DOT) Government. The O*Net, however, is held in some contempt by practitioners, due to its complexity.
Human
In expatriate compensation, this is used to describe an amount of money used to compensate for the discrepancies in costs
D Resource Differential
between the home and the assignment locations.
Management
Human
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
D Resource
Share reflection of a company's earnings.
Management
Human
D Resource Dilution (Percent) A decrease in the equity of a share of stock due to additional shares being issued.
Management
Human
D Resource Dining Facilities In order to keep employees on-site for lunch, many employers provide a dining facility to employees.
Management
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Human In order to thoroughly understand a job content, this method of job analysis involves the direct observation of employee(s)
D Resource Direct Observation while they perform their duties. This method is usually used when analyzing production type jobs, which are very repetitive in
Management nature.
Human
Direct Pay / Cash Payments made to employees in direct exchange for their contributions to an organization (does not include bonuses, stock
D Resource
Compensation options, life insurance, 401K or other benefits).
Management
Human Also known as 'Direct response marketing', this is a way in which insurance companies sell policies directly to customers. It
Direct Response
D Resource
Distribution System
relies on media advertisements, telephone solicitations, and direct mail. By adopting this type of marketing, insurance
Management companies bypass insurance agents.
Human
Direct Response This is a way in which insurance companies sell policies directly to customers. It relies on media advertisements, telephone
D Resource
Marketing solicitations, and direct mail. By adopting this type of marketing, insurance companies bypass insurance agents.
Management
Human
D Resource Direct Seller In terms of sales compensation, this is one whose sole purpose or objective is to obtain an order from the end user.
Management
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
Human
Directly and Closely performance of exempt duties may also include recordkeeping; monitoring and adjusting machinery; taking notes; using the
D Resource
Related Work computer to create documents or presentations; opening the mail for the purpose of reading it and making decisions; and
Management 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 Director And Officer

Additional insurance employed by companies in order to protect members of the board of directors and other key officers from
D Resource (D&O) Liability
law suits for various kinds of malpractice and or oversight.
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Human Directors fees are fees received by Directors from a Corporation for services rendered. In a situation where a Director is not an
D Resource Directors Fees actual employees of a company, the fees are considered to be self employment income for tax purposes and must be reported
Management to the IRS.
Human
Directors Of May be internal or external persons elected by shareholders. It is the Board's responsibility to determine company policies,
D Resource
Corporations elect the president, vice president, and all other operation officers.
Management
Human
D Resource Disability A condition rendering an insured party incapable of performing his or her duties.
Management
Human
These are usually paid monthly to an insured who is rendered unable to work prior to his or her normal retirement date.
D Resource Disability Benefits
Includes both long and short-term disability benefits.
Management
Human
Disability Buy-Out 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
D Resource
Insurance partner or a stock holder who is long-term disabled.‖
Management
Human A kind of health insurance designed to provide periodic payments (usually monthly) in order to compensate insured people for
Disability Income
D Resource
Insurance
a percentage of their income lost as a result of the disability. Also known as loss of time insurance. Compare with LONG-
Management TERM and SHORT-TERM DISABILITY INCOME INSURANCE.
Human
Several definitions: (1) A calculation of the probability of becoming disabled at each age. (2) A calculation of the number of
D Resource Disability Table
people who remain disabled at each age and the length of the disability.
Management
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Under the Americans with Disabilities Act of 1990 a disability is defined as a physical or other impairment, which substantially
Human 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
D Resource Disability Under Ada fact substantially limit a major life activity. It is not enough that it could or might limit such an activity if corrective measures are
Management 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 Under the Americans with Disabilities Act (ADA), employees are considered to be disabled if their "earning or productive
D Resource Disabled / Disability capacity" in the occupation in which they engage is impaired by a physical or mental disability, including alcoholism, or drug
Management addiction.
Human
This is a term used to describe a series of payments made to an insured party, which is contingent upon that person being
D Resource Disabled Life Annuity
both alive and disabled.
Management
Human
This is a part of the small estates statute, which frees an insurance company from liability that may arise under an insurance
D Resource Discharge Provision
policy if it were to pay the proceeds to an insured's estate.‖
Management
Human
Disciplinary A procedure carried out in the workplace in the event of an employee committing some act contrary to terms of the
D Resource
procedure employment agreement. If the act is regarded as Gross Misconduct this may lead to Summary Dismissal.
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
Human
also be an attempt to limit liabilities. Most contracts contain a disclaimer clauses of sorts. In an employment contract, a
D Resource Disclaimer Statement
disclaimer may take the form of a clause stating that the job description provided is not conclusive (For example, it may say:
Management '...to perform other duties as needed.').
Human
Disclosure Employers are required, under the Employee Retirement Income Security Act (ERISA), to disclose to employees information
D Resource
Requirements about benefit plan provisions and legal protections provided under ERISA.
Management
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Human A test that is required by the NAIC Model Life Insurance Disclosure Regulation. Its objective is to pinpoint instances in which
D Resource Discontinuity Index policy illustrations have been tampered with, so that they show an unrealistic/untrue progression of premiums, dividends and
Management benefits.
Human 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
D Resource Discount Rate other financial institutions. Initially this was an actual discount (an interest charge withheld out from the amount loaned); but
Management now it is an interest charge in its own right, despite the fact that it is still known as discount rate.
Human
Discount Stock
D Resource
Option
Rights to a stock option at a price less than 100 percent of fair market value on date of grant.
Management
Human
Discounted Cash Calculation of cash flow anticipated in the future using an assumed interest rate in order to determine the current cash value of
D Resource
Flow the future flows.
Management
Human Discounted
D Resource Restricted Stock The purchase, by an employee, of restricted stock at a price that is below market rate.
Management Purchase
Human Discounts On
Ordinarily, any benefit provided to an employee is taxable unless specifically excluded by Statute. When specifically excluded,
D Resource Merchandise And
it is known as a discount.
Management Services
Human This is a term used to describe a kind of performance cycle, whereby the performance of an employee is limited to a particular
D Resource Discrete performance time period without any relation or reference to past or future performance time periods. As an example: 'Each
Management month is discrete, because performance is measured on its own'.
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Human In terms of statistics, this describes variables that assume only particular, distinct values and that are not continuous. For
D Resource Discrete Data example, salary levels and performance classifications are discrete variables, whereas height and weight are continuous
Management variables.
Human A bonus plan that is completely at the discretion of management. Management decides on the total amount of bonus to be
Discretionary
D Resource 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.
Management
Human
D Resource Discrimination The favoring of one group of people to the detriment of others.
Management
Human
Since the 1960's a series of anti-discrimination laws have been enacted. The major one has been the Civil Rights Act of 1964,
D Resource Discrimination Laws
as amended in 1972 and 1991. Title VII of that Act covers employment.
Management
Human
Discrimination This is a method used to determine whether benefits within a plan are being provided fairly and equally to a wide range of
D Resource
Testing employees.
Management
Human This is the process whereby money is removed from an agent for the purpose of earning a higher yield elsewhere, typically with
D Resource Disintermediation another financial agent / intermediary. Historically, disintermediation, has been a problem source for life and health insurers
Management especially during periods of economic depression and or high inflation.
Human 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
D Resource Disparate Treatment inconsistent with the provisions of the Civil Rights Act or the Equal Pay Act. This would include any company policy or practice
Management that is deemed to be inconsistent with either of the Acts.
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Human
A disqualified person is one who in the past five years was in a position to exercise substantial influence over the affairs of a
D Resource Disqualified Person
tax-exempt organization. This person may be subject to IRS fines under INTERMEDIATE SANCTIONS regulations.
Management
Disqualifying
Human
Disposition (of an This is a term used to describe the premature sale or disposition of shares (in other words when the required holding period is
D Resource
Incentive Stock not met). When this occurs, the ISO is taxed at the regular rate.
Management
Option ISO)
Human The process of delivering educational or instructional programs to locations away from a classroom or site to another location
D Resource Distance Learning by varying technology such as video or audio-conferencing, computers, web-based applications or other multimedia
Management communications.
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
Human
Distance Learning connection. Each course examines a topic used daily by HR professionals. The DLC offers downloadable course materials,
D Resource
Center (DLC) interactive self-study exercises, instantly graded exams, and the ability to track credits and print completion certificates. DLC
Management 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
A pension plan that is under funded and discontinued by a company. Contrast with STANDARD PLAN TERMINATION.
D Resource Distress Termination
Compare with VOLUNTARY and INVOLUNTARY PLAN TERMINATION.
Management
Human
This is a term used to describe the expenses incurred while making insurance products available to the public (typically, these
D Resource Distribution Expenses
include the cost of printing, postage, telecommunication expenses, sales representative wages etc.).
Management
Human
In terms of insurance, this is a term employed to describe all the companies and people involved with getting the product from
D Resource Distribution System
insurance companies to customers (e.g., those involved with all the necessary marketing activities).
Management
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Human Where benefits are concerned, this is a word employed to describe any payments made to a beneficiary / participant (e.g., the
D Resource Distributions disbursements of profits to shareholders, interests earned, or dividends.) May also be used to describe payments from a
Management pension plan).
Human Related to the process of Negotiation. Known also as Competitive bargaining – The parties are concerned with their respective
Distributive
D Resource
bargaining
shares of the benefits available and compete and conflict with each other until one side wins an increased share at the
Management expense of the other.
Human
The theory that people involved in an exchange are most happy if the relationship between the outcomes and inputs is the
D Resource Distributive Justice
same all parties. This theory is attributable to G.C.Homans and forms the basis for the equity theory.
Management
Human
Distributor /
D Resource
Wholesaler
These are the 'middle men' in an indirect channel who buy products in bulk for the sole purpose of re-selling them.
Management
Human
Measurements that move apart from the norm. They move ahead of the common point or fail to approach the limit of a
D Resource Divergent Data
distribution.
Management
Human Committing to establish an environment where the full potential of all employees can be tapped by paying attention to, and
D Resource diversity taking into account their differences in work background, experience, age, gender, race, ethic origin, physical abilities, religious
Management belief, sexual orientation, and other perceived differences.
Human
A transaction by a company, which disposes of, or sells an asset owned by a company or a part of the business. Depending on
D Resource Divestiture
the circumstances, may also be known as spin-off.
Management
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Human
Dividend / Dividend Several definitions: 1) In terms of investments and shares, this is a distribution to shareholders of earnings. Typically this
D Resource
Payment 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
Management
Human
Dividend An option made available to the policyholder of a life insurance policy, whereby he or she may leave their dividends with the
D Resource
Accumulations insurer. Doing so often results in an increased amount of interests earned from the insurer's investments.
Management
Human
This represents the cost of maintenance of each policy during the course of the current year. The insurance company
D Resource Dividend Expenses
calculates this by using the dividends owed to policy owners.
Management
Human Dividend For

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
D Resource Organization
by the insurer to pay claims, establish reserves, and cover expenses).
Human
Dividend Interest Used to calculate dividends owed to policyowners, the dividend interest rate is the actual rate of earnings on an insurer's
D Resource
Rate investments.
Management
Human This is a term used to describe the several possibilities that a policyowner has to choose from when receiving a share of the
D Resource Dividend Options company's surplus. See and compare with AUTOMATIC DIVIDEND OPTION, CASH PAYMENT OPTION, DIVIDEND
Management ACCUMULATIONS, and PREMIUM REDUCTION OPTION.
Human This is the term used to describe the mortality rate being experienced by the insurance company on the policies that it has
Dividend Rate Of
D Resource
Mortality
sold. May also be described as the MORTALITY RATE for a particular age that the insurance company decides to use to
Management calculate the dividends owed to the policyowners.
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Human
The part of an insurance company's earnings that is to be disbursed among the owners of the company's policies. See
D Resource Divisible Surplus
SURPLUS.
Management
Human A divorce of an employee can affect that person's benefits. The ex-spouse has rights to retirement benefits accrued during the
D Resource Divorce time of the marriage. The ex-spouse also may apply for health benefits under COBRA. If there are children, then there are
Management payments for child support, which may be enforced through garnishment.
Human Doctrine Of
This is a doctrine applied by the courts, where (even though the policy does not expressly lay it out) the reasonable
D Resource Reasonable
expectations of policyowners and beneficiaries will be upheld.
Management Expectations
Human
D Resource DOL U.S. Department of Labor.
Management
Human In general, the value of a benefit to an employee for tax purposes is the cost incurred by the employer in providing that benefit.
Dollar Value of
D Resource
Taxable Benefits
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
Management portion of the cost).
Human
A company located in and doing business in the state in which it was incorporated. Compare with FOREIGN CORPORATION
D Resource Domestic Corporation
and ALIEN CORPORATION.
Management
Human
Some organizations recognize, as a family unit for benefit purposes, committed relationships between two unrelated people
D Resource Domestic Partners
(whether of the same or opposite sex). These relationships are similar to, but which does not involve, an official marriage.
Management
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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
Human
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
D Resource DOT
fields. To view DOT descriptions, see http://www.oalj.dol.gov/libdot.htm, or use ERI's Platform Library and select Resources I
Management 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
Double Declining A depreciation method, whereby an accelerated depreciation is noted as expense during the first year and then the depreciable
D Resource
Balance Depreciation balance is reduced by an exact percentage that reflects the acceleration.
Management
Human
A type of death benefit policy that, if an insured's death is accidental / unnatural, pays an additional benefit that is equal to the
D Resource Double Indemnity
basic benefit. Also known as accidental death benefit (ADB).
Management
Human The profits of any business are subject to corporate income tax. When any portion of these profits is distributed to
D Resource Double Taxation stockholders, the distribution is also taxed as income to the stockholder. In most people‘s eyes, this is a case of double
Management taxation.
The most established and most widely watched stock index in the world. The Dow, as it is most commonly known, includes 30
Human stocks (which typically are stocks of only the highest quality of common stocks listed on the New York Stock Exchange). The
Dow Jones Industrial
D Resource
Average (DJIA)
Dow is very often considered to be a good indicator as to how the entire market is fairing. However, because the Dow only
Management 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
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
D Resource Downgrading
structure).
Management
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Human Downsizing means to reduce the number of employees in an organization. Downsizing or lay-offs reduce the size of a work
D Resource Downsizing force. Used sparingly, and with planning, downsizing can be an organizational lifesaver, but when layoffs are used repeatedly
Management without a thoughtful strategy, downsizing can destroy an organization's effectiveness. Also known as: reduction in force.
Human
D Resource Draw A cash advance against future performance. May be recoverable or non-recoverable.
Management
Human
A type of health insurance policy that covers only expenses incurred by treatment for specific diseases named in the policy
D Resource Dread Disease Policy
(e.g. cancer). See LIMITED COVERAGE POLICY.
Management
Human
D Resource Drinking Criticism In terms of underwriting, used to describe evidence that the abuse of alcohol or that alcoholism exists.
Management
Human
Employees, who have been convicted of a felony drug offence, must be disciplined by their employers, per the Drug-Free
D Resource Drug Abuse
Workplace Act (e.g. of discipline would be the completion of a drug abuse rehabilitation program).
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
Human employees that the unlawful manufacture, distribution, dispensation, possession, or use of a controlled substance is prohibited
Drug-Free Workplace
D Resource
Act of 1988
in the workplace. 2. Establish a drug awareness program that tells employees about available drug counseling, rehabilitation,
Management 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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Human
Operate much like medical management service organizations, where a management company buys dentists' practices and
D Resource DSOS
provides them with administrative support.
Management
Human
D Resource Dual Labor Markets organizations will operate with a small Core Labor Force and a Peripheral Labor Force
Management
Human
D Resource Dual Registration When a registered representative is licensed with more than one broker, he or she is said to have a dual registration.
Management
Human
Dual-Choice The Health Maintenance Organization Act of 1973 states that employers with more than 25 employees and who meet a certain
D Resource
Provision criteria, must offer a federally qualified HMO as an alternative to other more common health plan.
Management
Human A critical component of mergers and acquisitions, it is the process by investigation and evaluation is conducted to examine the
D Resource Due diligence details of a particular investment or purchase by obtaining sufficient and accurate information or documents which may
Management influence the outcome of the transaction.
Due diligence is an indispensable part of the acquisition process, and therefore, investment. The objective of due diligence is
Human
Due Diligence to establish the financial and operating stability of the company being acquired. The due diligence process involves a diverse
D Resource
Process group of experts (lawyers, accountants, engineers, real estate professionals, etc.) who must examine / evaluate data and
Management assess the property being acquired for price affecting conditions.
Human Organizations may choose to pay membership dues to chambers of commerce or other business or professional groups that
Dues And
D Resource
Membership Fees
employees join as a consequence of their employment. Conversely, organizations may be required under a collective
Management bargaining agreement to collect union dues or assessments from employees' pay, and turn the proceeds over to the union.
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Human
Duplicate Coverage I n the United States, when a health insurance company receives a claim, this is the form it fills out and sends to another
D Resource
Inquiry (DCI) Form insurance company. The goal is to determine whether the second company also covers the claim received.
Management
Human This is the minimum age at which an employee may retire. An employee who chooses to retire early may also chose to start
Early Retirement Age
E Resource
(Pension Plans)
receiving his or her retirement income at once or may chose to have it deferred. If immediate receipt of income is elected,
Management typically, it would be paid at a reduced rate.
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
Human monthly payment, based upon age, tenure, and salary. In a defined contribution plan, the employee would be able to draw out
Early Retirement
E Resource
Agreements
his/her account at an early age. Organizations may choose to initiate an early retirement program in lieu of lay offs. These must
Management 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
ETO is earned each pay cycle, but is available the cycle after it first accrued. As an employee's years of service increase so
E Resource Earned Time Off
does the rate of ETO accrual.
Management
Human
Earnings include base pay, premium, overtime and bonuses. They are the total wages and or cash earned within a specific
E Resource Earnings
period of time.
Management
Human
E Resource Earnings And Profits This represents EARNINGS and PROFITS as computed for tax purposes.
Management
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Human
Earnings Per Share Term used to describe the total earnings of an organization divided by the number of outstanding shares. EPS is sometimes
E Resource
(EPS) used as a basis for executive incentives. Also see DILUTED EARNINGS PER SHARE.
Management
Human
A detailed summary of the income and expenses of a business over a period of time (usually quarterly, semiannually or
E Resource Earnings Statement
annually) showing the net income or loss incurred.
Management
Human
E Resource Economic Benefit Measurable benefit not necessarily in the form of cash.
Management
Human This is a species of Residual Income. EVA is determined by subtracting from the income, the sum of cost of capital multiplied
Economic Value
E Resource by the invested capital. EVA is often the measure employed in the determination of an organization‘s economic profit. It is not
Added (EVA) uncommon for EVA to be used as a basis for incentive programs.
Management
Human EDGAR is a database maintained by the Securities Exchange Commission (SEC). All publicly traded companies in the U.S.
E Resource Edgar Extracts must register data into this database. EDGAR can be reached through the Internet. Financial data is available on all publicly
Management traded companies.
Human Education Individual

A taxpayer can establish an education IRA to pay the qualified higher education expenses of a named child or grandchild,
E Resource Retirement Account
under the age of 18.
Management (IRA)
Human Companies may include educational benefits in their benefit package in a number of forms. The most common is an
E Resource Educational Benefits educational reimbursement plan, in which employees are reimbursed for the costs of schooling or training that can be shown to
Management be related to their job or to their career in the company.
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Human
Several definitions: (1) The date on which a health insurance policy and/or retirement plan kicks into effect and the insured
E Resource Effective Date
party's coverage actually begins. (2) The date on which an increase in salary or pay rate goes into effect.
Management
Human
E Resource Effective Tax Rate The ratio of income tax actually paid divided by gross income, showing the percentage of income actually paid in taxes.
Management
Human
A measure (as a percentage) of the actual output to the standard output expected. Efficiency measures how well someone is
E Resource efficiency
performing relative to expectations.
Management
Human The effort bargain is what an employee receives (level of compensation, benefits, etc.) from an employer in exchange for what
E Resource Effort Bargain the employee: brings to the table (knowledge and experience) AND does (the tasks of the job or the ―effort‖ made) for that
Management employer. The terms of the bargain are typically outlined in an employment contract.
Human
Programs designed to assist the elderly in day-to-day activities. Usually this refers to the care of an elderly relative (financially,
E Resource Elder Care Programs
emotionally or even mentally).
Management
Human
This represents the 60 days, after having been notified of one's COBRA eligibility, during which an ex-employee may opt to
E Resource Election Period
accept the continuation of health coverage or decline.
Management
Human
Elective Contributions Contributions made to an employee's 401(k) plan, made by an employer on the behalf of the employee. Contributions are
E Resource
Or Elective Deferrals made with before tax monies from a reduction in the employee's pay check.
Management
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Human Under a health insurance program, elective surgery is a covered procedure, but one that requires adequate time to schedule
E Resource Elective Surgery any necessary diagnostic tests and/or initiation of treatment. This type of surgery usually requires the employee to obtain a
Management second opinion as to the necessity of the surgery and/or review by the insurance company.
Human An electronic sound, symbol, or process attached to or logically associated with a contract or record. This is executed by a
E Resource Electronic signature person whose intent is to sign a record or contract. An electronic signature may be a number or code inputted on a telephone
Management key pad, or the clicking of an I Accept box on a webpage. It indicates acceptance of terms.
Human
E Resource Eligibility Date This is the date on which an employee and/or his or her dependents are eligible for benefits.
Management
Human
The foundation for establishing the employees or class of individuals who are qualified to participate in a specific plan (e.g.,
E Resource Eligibility For A Plan
supplemental benefit or incentive plan).
Management
Human
Typically 31 days (sometimes 3 months) within which a recently employed individual has to elect to participate in an employer‘s
E Resource Eligibility Period
insurance plan (which is contributory in nature).
Management
Human
Eligibility Requirements that an individual must meet before being able to participate in a company's life insurance plan, health coverage
E Resource
Requirements plan or retirement, benefit.
Management
Human
Established by calculating the total amount of salaries / wages of employees who, though eligible, do not receive a salary
E Resource Eligible Payroll
increase.
Management
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Human (1) Duration between the start of employment and date upon which the employee is actually eligible to receive benefits. (2) The
E Resource Elimination Period time frame between an individual's disability and the beginning of benefits from the policy. Also known as qualification period
Management (Canada) or WAITING PERIOD.
Human
Emergency Room Emergency room services are typically covered in most health plans. In managed care plans, the participant may be required
E Resource
Coverages to use a specified emergency room, unless out of area. Emergency room services are covered in Part B of Medicare.
Management
Human
Emerging Issues This task force was created by FASB to deal with matters not expressly falling under GAAP. Jurisdiction includes but not
E Resource
Task Force limited to matters concerning stocks granted to employees.
Management
Human
Emotional Describes the mental ability an individual possess enabling him/her to be sensitive and understanding to the emotions of others
E Resource
Intelligence as well as being able to manage their own emotions and impulses.
Management
Human Any employer can establish an employee achievement award program, using whatever criteria wished to determine
Employee
E Resource achievement. However, under IRS rules, the employer may establish a qualified plan based upon length of service and /or
Achievement Awards safety.
Management
Human
Employee Assistance An Employee Assistance Program (EAP) is an employer-initiated program to assist employees in dealing with problems such
E Resource
Programs as substance abuse, marital discord, and employment problems.
Management
Human
Forms of compensation (excluding cash) available to employees. Benefits include but are in no way limited to the following:
E Resource Employee Benefits
health coverage, vacation, income protection, retirement savings.
Management
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Human
Employee
E Resource
Contributions
Payments made by an employee to fund a specific benefit, thereby contributing to or covering the employer's entire cost.
Management
Human Counseling for the mental and physical health of the employee is not taxable. Neither is retirement counseling. Other kinds of
Employee Counseling
E Resource
Services
counseling are taxable. In Quebec, counseling for physical and mental health is defined narrowly as stress management,
Management tobacco, drug and alcohol abuse.
Human
Employers may grant discounts to employees for their products or services. These discounts can be qualified as exclusions
E Resource Employee Discounts
from gross income, provided that certain requirements are met.
Management
Human Empowerment is the process of enabling or authorizing an individual to think, behave, take action, and control work and
Employee
E Resource
Empowerment
decisionmaking in autonomous ways. It is the state of feeling self-empowered to take control of one's own destiny.
Management Empowerment rules as a development strategy. Learn more about what empowerment is – and is not.
Employee involvement is creating an environment in which people have an impact on decisions and actions that affect their
Human
Employee jobs. Employee involvement is not the goal nor is it a tool, as practiced in many organizations. Rather, employee involvement is
E Resource
Involvement a management and leadership philosophy about how people are most enabled to contribute. Find out more about employee
Management involvement.
Human Several definitions: (1)The extent to which employees are involved with the implementation and or the administration of
Employee
E Resource
Participation
benefits and pay. This may also include the extent to which employees are involved with other company programs. (2) The
Management level of voluntary participation of an employee in company benefits plan.
Human
A broad term used to refer to the general management and planning of activities related to developing, maintaining, and
E Resource Employee Relations
improving employee relationships by communicating with employees, processing grievances/disputes, etc.
Management
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Human
organizational policies and practices designed to meet the diverse needs of employees, and create an environment that
E Resource Employee retention
encourages employees to remain employed.
Management
Human Employee Retirement A Federal statute that establishes the following: (1) Rights of beneficiaries to pension benefits. (2) Standards that must be
E Resource Income Security Act followed when investing pension plan assets. (3) Requirements that must be met before the disclosure of pension provisions
Management Of 1974 (ERISA) and or funding. The Pension Benefit Guaranty is also established by ERISA.
Human
Employee Services
E Resource
And Allowances
A category of benefits inclusive of relocation packages, subsidies on company-provided food service, discounts, and more.
Management
Human A contract between a company and an employee giving the employee the right to purchase a specific number of shares in the
Employee Stock
E Resource
Option Plan (ESOP)
company for a fixed price, during a certain period of time. Employee Stock Option Plans should not be confused with the term
Management EMPLOYEE STOCK OWNERSHIP PLANS (also ESOPs), which are retirement plans.
Human Employee Stock Typically, this is benefit plan that requires that an employee meet certain requirements in order to participate and that has a
E Resource Ownership Plan portion of its investments (if not all) on company stock. An Employee Stock Ownership Plan (ESOP) is a type of defined
Management (ESOP) contribution retirement plan in which the account of the employee consists of company stock.
Human
E Resource Employees Employees are persons who are compensated for services performed and whose duties are under the control of an employer.
Management
Human
Employee's Cost This is the amount taken away from the total amount paid to a pension beneficiary, so as to determine the part of the
E Resource
Basis distribution that is taxable.
Management
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Human In Canada, this is a profit sharing species, whereby the employer makes a deposit of funds in a trust account, but is able to
Employees Profit
E Resource 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.
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
Human agreement. This is usually for a key employee. Such a contract usually includes a written guarantee of receiving certain
E Resource Employment Contract rewards, regardless of the results produced on the job beyond a stipulated period. The employment contract may also have
Management 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 In the United States, employers are required to pay a number of taxes on their payroll. These include Social Security,
E Resource Employment Taxes Medicare, and Unemployment taxes. Employees must also pay toward Social Security and Medicare. In addition, employees
Management have deductions for income taxes.
Human
The process of enabling or authorizing an individual to think, behave, take action, and control work and decision-making in
E Resource Empowerment
autonomous ways.
Management
Human
Also known as a RIDER, this is an amendment made to an insurance contract, which then becomes part of the agreement by
E Resource Endorsement
expanding or by limiting the existing terms.
Management
The way the beneficiary to a life insurance policy is changed. Change may be effected in the following ways: (1) The owner of
Human the policy may return the contract to the insurer. The insurance company then ‗ endorses‘ it with the name(s) of any new
E Resource Endorsement Method beneficiary or (2) the policy is not actually returned to the insurer. Instead, the policy owner requests (over the telephone) that a
Management 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
Endowment A kind of life insurance policy providing benefits (1) if death occurs within a pre-determined number of years, or (2) if after a pre-
E Resource
Insurance determined number of years, the insured is still living.
Management
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Human
Enhancement Type A life insurance policy whereby part of the dividend is used to provide paid-up-additions and the other is used to produce a pre-
E Resource
Policy established death benefit.
Management
Human
An actuary of a pension who has met the requirements and who has been enrolled by the Joint Board for the Enrollment of
E Resource Enrolled Actuary
Actuaries (a federal agency).
Management
Employees are entitled to reimbursement for business-related entertainment expenses; these payment are not considered
Human
Entertainment wages if maintained separately. Business must be the purpose of the entertainment or meal such that there is at least
E Resource
Expenses discussion of business during the time. While meals are the most common entertainment items, sporting events, concerts, or
Management other entertainment is allowable.
Human
Entire Contract
E Resource
Provision
This is an insurance clause that states that only the actual policy and the application for it are binding on the parties.
Management
Human
1. The political, strategic, or operational context within the organization. 2. The external environment is the environment outside
E Resource environment
the organization.
Management
Human Equal Employment The purpose of the Equal Employment Opportunity Commission (EEOC) is to administer the various discrimination laws of the
E Resource Opportunity federal government. EEOC has the authority to investigate and conciliate charges of discrimination because of race, color,
Management Commission (EEOC) religion, sex, or national origin by employers, unions, employment agencies, and joint apprenticeship or training committees.
Human
Equal Pay Act Of Makes gender based differentials in pay (wage discrimination) illegal, for jobs that are similar in terms of qualification
E Resource
1963 requirements and that are performed under similar working conditions
Management
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Human This doctrine goes beyond the Equal Pay Act of 1963. It states that women must be paid the same in a female dominated job
Equal Pay For
E Resource
Comparable Work
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
Management that job value / worth can be measured.
Human
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
E Resource
Work embodies it.
Management
Human
A transfer which though it does not meet the requirements needed for a legal assignment, will be enforced because it is the
E Resource Equitable Assignment
right thing (the equitable or the fair thing to do).
Management
Human
When used in reference to direct pay this concept refers to a criterion of pay based on similar responsibilities and contribution
E Resource Equity
to the organization. It may focus on the ―fairness‖ of pay between employees within or outside the organization.
Management
Human
E Resource Equity Allocation A term used to describe when a part of a retirement plan is funded by common stock investments (investments in equity).
Management
Human
E Resource Equity Investment An investment which grants the investor an ownership title and or voting rights.
Management
Human
An accounting technique used by an investor who owns 20% to 50% of the voting shares / voting common shares. See cost
E Resource Equity Method
method and consolidated subsidiary accounting.
Management
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Human A pension plan providing benefits, partially at least, which varies according to the success of the investment in common stocks
E Resource Equity Pension (or other investments). The equity part of the pension benefit is intended to provide benefits that grow as the rate of inflation
Management rises.
Human
Based on the notion that people are motivated by a desire for fairness, that is, to be treated fairly and will compare their own
E Resource Equity theory
efforts and the rewards of others in the organization with a view to judging the fairness of their treatment.
Management
Human
Equity-Based A life policy or an annuity whereby the value and benefit fluctuate depending on the performance of the equity investments.
E Resource
Insurance Product Owners of this kind of insurance policy, in effect are accepting and or risking to sharing in the insurer's gains and losses.
Management
Human Equivalent Annual

E Resource Percent Increase Same as annualized increase percent.
Management (EAPI)
An amount presented as part of interest-adjusted method of comparing cost of life policies, to consumers. The equivalent level
Human Equivalent Level
annual dividend is meant to represent the part of the interest-adjusted payment and the cost that is, in effect, not guaranteed
E Resource Annual Dividend
by the insurer, because dividends will change in the future as the insurer's experience changes. This amount gives the buyer
Management (ELAD) an idea of the extent that nonguaranteed amounts affect the interest-adjusted payment and the cost of a policy.
Human
Equivalent Single A payment which is equal in amount to a series of other lesser payments and which may be made in place of several other
E Resource
Payment payments.
Management
Human
E Resource 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.
Management
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Recruiting services provided over the Internet are called eRecruiting and offer the ability for job seekers to log in and post their
Human
resumes. Similarly, organizations may post job openings with these online services, using email and chatboards to further
E Resource e-Recruiting
communication. Typically, the Internet service provider chargers the organization a fee for posting the open position
Management information.
Human A methodical application of known information about every aspect (physical, psychological and social attributes) of human
E Resource Ergonomics beings to the establishment and use of everything that may affect a person's working condition. This includes working
Management environment, layout, training, the organization of the work-load and the job itself.
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
Human ERI Data
consensus updated figures we report by industry, location, relevant experience, or size dimension from every possible source.
E Resource Observations /
Instead, we provide only the reliability statistics for one single identifiable survey out of the hundreds that we analyze. This
Management Counts 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.
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
Human ERI Distance connection. Each course examines a topic used daily by HR professionals. The DLC offers downloadable course materials,
E Resource Learning Center interactive self-study exercises, instantly graded exams, and the ability to track credits and print completion certificates.
Management (DLC) 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.
The Employee Retirement Income Security Act of 1974 (ERISA) was passed to ensure that pensions offered by private-
Human industry employers met certain standards and were received by employees. ERISA does not require employers to offer
E Resource ERISA pension programs. But ERISA does require that those who offer pension programs follow certain rules if they want favorable
Management tax treatment for their contributions and employee‘s deferral of income. ERISA‘s four basic requirements cover participation,
vesting, funding and fiduciary duties. For more information on ERISA, see DLC Courses 15, 42 and 74.
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Human
ERPs are the most common form of EDUCATIONAL BENEFIT. Under an ERP an employer could fully or partially reimburse
E Resource ERP
an employee for education or training expenses on a pay-as-you-go basis.
Management
Human A type of insurance which is designed to cover claims resulting from negligent acts and or mistakes of an insurance agent,
Error And Omissions
E Resource
(E&O) Insurance
including but not limited to (1) his or negligent acts or omissions or (2) mistakes made by individuals for whom the agent is
Management vicariously liable.
Human A contract between a company and an employee, giving the employee the right to purchase a specific number of shares in the
E Resource ESOP company for a fixed price, during a certain period of time. Employee Stock Option Plans should not be confused with the term
Management EMPLOYEE STOCK OWNERSHIP PLANS (also ESOPs), which are retirement plans.
Human
The spirit, soul, and state of mind of an organization. It is the overall consciousness of the organization that a person identifies
E Resource esprit
with and feels a part of.
Management
Human Both assets and liabilities left by an individual upon his or her death. This includes any monies owed to the employee by the
E Resource Estates employer (wages are the most obvious but these could, theoretically include interest stemming from a retirement program and
Management or life insurance policy which the company provides.
Human
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
E Resource Estoppel
contrary.
Management
Human The "feel of the organization" about the activities that have ethical content or those aspects of the work environment that
E Resource ethical climate constitute ethical behavior. The ethical climate is the feel about whether we do things right; or the feel of whether we behave
Management the way we ought to behave.
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Human
European-Style A stock option contract that may be exercised only during a specified period of time just prior to its expiration. This is in
E Resource
Option contrast to American-style options, which may be exercised at any time between the purchase date and expiration date.
Management
Human
E Resource evaluation Judging the worth, quality, or significance of people, ideas, or things.
Management
A term employed to describe a situation where shares are set aside to be granted in the future under an option which
Human
Evergreen represents a portion of shares that are outstanding for every year the plan exists. Shares that remain unused from a previous
E Resource
Authorization year get carried forward to be used in a later evergreen plan. Typically, such plans remain in full effect until cancelled by the
Management board of directors.
Human
A plan that has no specific date, upon which grants will no longer be permitted. Typically, a grant such as this remains in effect
E Resource Evergreen Plan
until specifically canceled by the board of directors.
Management
Human
Evidence Of
E Resource
Insurability
This is proof that an individual is an insurable risk.
Management
Human Excess Benefit Plans are one form of non-qualified deferred compensation arrangements to supplement other retirement
E Resource Excess Benefit Plans benefits for highly compensated executives. These plans are initiated in order to attract retain and attract motivated executives.
Management They may also be used for early retirement, takeovers, and firing of top executives.
Human A transaction in which a DISQUALIFIED PERSON receives an economic benefit from a tax-exempt organization that exceeds
Excess Benefit
E Resource
Transaction
the value of the benefit the disqualified person provided to the organization. In terms of compensation, this means it was
Management unreasonable compensation under Section 162.
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Human
Excess Contributions are those contributions that exceed the deductible limits. A contribution to a profit-sharing or stock bonus
E Resource Excess Contributions
plan is limited to 15 percent. The excessive amounts are subject to an excise tax of 10 percent.
Management
Human
An interest amount, which is above the guaranteed amount, which an insurance company must pay, when interest rates
E Resource Excess Interest
increase, on a settlement option.
Management
Human
Several definitions: 1) A plan providing benefits, only in excess of limits imposed on plans that are tax-qualified. (2) Also a plan
E Resource Excess Plan
providing benefits to company executives who have limited 401(k) plans.
Management
Human
E Resource Exchange Program A program which permits the insured to exchange a policy with another without the requirement of proving insurability.
Management
Human Economically defined as the intersect of the labor demand and the labor supply functions in an external market. It constitutes
E Resource Exchange rate the wage rate that employers are willing to pay and labor is willing to accept. From a compensation viewpoint, the exchange
Management rate defines the criterion of external equity.
Excise taxes are a wide variety of taxes levied on employers for two main reasons. The first is as a penalty for failing to
Human
perform a required action or purposely or accidentally doing something wrong. The second type of excise tax is like a license to
E Resource Excise Taxes
perform something. You pay for the privilege of having the right to do something. Most of these excise taxes have to do with
Management the administration of benefit programs or taxes.
Human
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
E Resource Exclusion Ratio
in relation to the employee's anticipated return.
Management
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Human
Also known as impairment rider, this is a supplement to a health policy excluding or limiting insurance for a particular health
E Resource Exclusion Rider
defect.
Management
Human These are losses not covered by an insurance policy. In terms of Accidental death policies, exclusions would be causes of
E Resource Exclusions death not deemed to be accidental. In terms of health insurance, this would be losses not insured (those that were pre-existing,
Management surgeries that are cosmetic in nature or injuries that are self inflicted.
Human
Known also as captive agents, exclusive agents are those who work exclusively for one insurance company and who may not
E Resource Exclusive Agents
represent another company.
Management
Human Exclusive of Board,

Under FLSA, the phrase ‗‗exclusive of board, lodging, or other facilities‘‘ means ‗‗free and clear‘‘ or independent of any claimed
E Resource Lodging, or Other
credit for non-cash items of value that an employer may provide to an employee. (Section 541.606)
Management Facilities
Human
This is a territory no other agent may operate and offer insurance products. May be contrasted with nonexclusive territory and
E Resource Exclusive Territory
overlapping territory.
Management
Human
In community-property states, this is a law that permits an insurance company to pay proceeds of a life policy according to the
E Resource Exculpatory Statute
terms of the agreement without the risk of incurring double liability.
Management
Human
The ability to complete individual and organizational assigned tasks according to specified standards and within certain time
E Resource executing
criteria or event criteria.
Management
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Human
In relation to businesses, an executive is taken to be anyone who a sizeable amount of responsibility where the management
E Resource Executive
of a company is concerned.
Management
Human
Provided to a limited number of executives, this is a form of non-cash compensation that is over and above the benefit
E Resource Executive Benefits
packages given to the other employees. These may include but are not limited to company car and supplemental insurance.
Management
Human
E Resource Executive Officer Responsible for a significant business/company function. Usually an executive officer is involved in policy-making.
Management
Human
Employees who are not subject to (i.e., they are exempt from) FLSA minimum wage and overtime provisions. These
E Resource Exempt Employees
employees are typically paid on salary.
Management
Exercise (Of A Share

Human When a share option holder (owner) actually takes possession of the proceeds of the shares or of the shares themselves, he
Option Or Other
E Resource
Executive-Plan
or she is said to have exercised their share option. In other words, the actual buying of shares under the terms of stock option
Management grant.
Feature)
Human
E Resource Exercise Period Time frame / the specific days during which stock option may be purchased by the holder of the option.
Management
Human
An interview between a member of staff of the organization that an employee is leaving to ascertain the reasons for the
E Resource Exit Interview
employee leaving the organization. Should not be carried out by employee‘s immediate superior. Used for possible changes.
Management
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Human
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
E Resource Exoneration Statutes
payment to another party without knowing of other conflicting claims (e.g., the payment was made in good faith).
Management
Human
Also known as an international assignee or international staff, this is an individual who has been assigned to a country other
E Resource Expatriate
than his or her home base for a period of time.
Management
Human This term is used to describe any number of supplemental payments which is made to an international assignee / expatriate
E Resource Expatriate Premium employee in order to compensate for any hardship, education of dependent children in their mother tongue or other conditions
Management that may be specific to the location.
Human This is a theory that states that individuals make choices according to what they anticipate will give them the most payoffs.
E Resource Expectancy Theory When applied to salaries, it follows that employees must hold the belief that the greater the effort that they make, the better
Management their performance will be (the greater their results) and therefore the higher the salary they will command.
Human
Expense Accounts Expense Accounts are ordinarily a feature of perquisites for executives. Since executives create expenses as a part of their
E Resource
And Allowances jobs, they are allowed to keep an account, which allows them to be reimbursed periodically for these expenses.
Management
Human
This rating system makes use of a group's premium and their claim experience to establish premium rates. Depending on the
E Resource Experience Rating
previous year's claim experience the insured party's premium will go up or down. See blended rates and manual rates.
Management
Several definitions: 1) The part of an insurance premium, which is given back to, the policyowner who experiences better than
Human
predicted claim experience. May also be known as an experience rating refund and or retroactive rate reduction. See dividend.
E Resource Experience Refund
(2) The part of a reinsurance premium which is returned to the ceding company in a situation whereby the actual claim
Management experience is better than that which was predicted.
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Human
Experience-Rated
E Resource
Arrangement
This is an insurance policy whereby the premiums are set according to the insured's previous claim experience.
Management
Human
Experimental As the name suggests, this is when an insurance company accepts to cover a risk on an experimental basis (risks which,
E Resource
Underwriting under normal circumstances, they would not insure against).
Management
Human
E Resource Expiration Date The date on which an option is nullified, if it is not exercised. The day that the option to exercise ceases.
Management
Human
E Resource Express Authority This is an authority specifically granted upon an agent. Compare with implied authority and or apparent authority.
Management
Human Peculiar to Canada, this is an Old Age Security (OAS) benefit which is payable had been dependent on and was receiving a
Extended Spouse's
E Resource
Allowance
'spouse's allowance', when their spouse dies. Such a person is entitled to receive this benefit until they either remarry or until
Management they attain the age of 65. See and compare with spouse's allowance.
Human A non-forfeiture option providing for cash value of a policy to be applied as a net one time payment to purchase a term
Extended Term
E Resource
Insurance Option
insurance at the same price as the death policy which is being surrendered minus and loans outstanding. The insured party still
Management will have the same coverage but typically for a shorter time. See non-forfeiture options.
Human
The measure of a company's pay scales (pay levels or the going market rate) compared to the rate of other similar companies.
E Resource External Equity
External equity indicates that a company's pay levels are comparable to the market rate.
Management
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Human
External Wage
E Resource
Structure
Defines the wide variety that exists in pay rates that a company faces in the different labor and occupation markets.
Management
Human
Either a gain or a loss stemming from an unusual event, which is non-recurring. An extraordinary item would typically be
E Resource Extraordinary Items
recorded separately on a company's financial statement.
Management
Human
Extra-Percentage A plan commonly used to rate substandard risks. Using this system, each substandard risk is charged a premium a specific
E Resource
Tables Method percentage above the standard rate. To be contrasted with the standard premium method.
Management
Human
Work-related rewards that have value measurable in monetary terms, as opposed to intrinsic rewards, such as satisfaction in
E Resource Extrinsic rewards
a job well done.
Management
This is the first page of an insurance agreement. This page typically includes the name of the insured party, their age and the
Human
name of the policyowner if it is different from the insured's name. This page also states the amount of the premiums, the
F Resource Face Page
agreement number, date on which the parties entered into an agreement. Lastly, this page normally has the signatures of both
Management the president and the secretary of the company.
Human
F Resource Face Validity When a technique clearly appears to do what it‘s intended to do.
Management
Human 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
Facility-Of-Payment
F Resource
Clause
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
Management possible to pay benefits to the beneficiary who is identified in the insurance agreement.
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Human A job evaluation method in which a series of rankings are performed to assess which jobs contain more of each specific
Factor comparison
F Resource
method
compensable factor than other jobs being evaluated The factor rankings of each job are assigned numerical values, weighted
Management and then added together to determine the total job score.
Human
Used by underwriters to establish the net worth of an applicant by specifying what that the applicant's income should be
F Resource Factor Table
multiplied by in order to arrive at the maximum permissible insurance coverage.
Management
Human
F Resource Factor Weight The weight assigned, in job evaluation, to compensable factors indicating their relative importance.
Management
Human
Fair Credit Reporting A federal law meant to ensure that consumer-reporting agencies are fair in their reporting (especially where the consumer's
F Resource
Act (FCRA) right to privacy is concerned. See consumer-reporting agency.
Management
Human
Fair Labor Standards
F Resource
Act Of 1938 (FLSA)
This is a federal law that governs, amongst other things, child labor law, minimum wage and record-keeping requirements.
Management
Human
Fair Market Value 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
F Resource
(FMV) specific day and on a recognized stock exchange.
Management
Human
F Resource Family Benefit This is a life policy providing term coverage for spouses and children of the insured's.
Management
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Human
Relieves a family from having to satisfy a deductible for each member of the family. The family deductible sets a single
F Resource Family Deductible
deductible for the entire family unit.
Management
Human Typically, this type of specialized individual insurance policy combines decreasing term with the whole life insurance. The
Family Income
F Resource
Insurance
former provides income for a pre-established period for the insured's family and the latter portion is normally paid in a lump
Management sum when the insured party dies.
Human
Family Insurance
F Resource
Policy
This type of insurance policy covers the entire family unit under the one policy.
Management
Human
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
F Resource Family Leave
serious medical condition. Also granted when a new baby is born or a child is adopted.
Management
Human
Fasb Statement No. Issued by the Financial Accounting Standards Board (FASB) in 1985, the statement 35 deals with rules with which to measure
F Resource
35 and report a defined pension plan's value in accounting reports issued by the benefit pension plan.
Management
Statement 87 governs the ways in which an employer accounts for and reports the costs of pension benefits offered to its
Human employees. It requires that, for accounting purposes, employers use a cost method known as the projected unit credit method
Fasb Statement No.
F Resource
87
in order to establish the net periodic cost of pension benefits offered to employees. Statement 87 further requires employers to
Management 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 Statement 88 determines accounting requirements for employers whose defined benefit pension plans have been limited and
Fasb Statement No.
F Resource
88
or terminated, or who have experience other unusual events, (e.g., settlement of a pension obligation through a lump-sum
Management payment of benefits to a plan beneficiary.
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Human Fasb, Financial

This Board published rules by which U.S. CPAs conducted their accounting. It replaced the Accounting Principals Board (APB)
F Resource Accounting
in 1974.
Management Standards Board
Human Federal Insurance Established the payroll deduction of OASDI and Medicare taxes from employers and employees. Under Chapter 9 of the
F Resource Contributions Act Internal Revenue Code of 1939 and Subchapters A and B of Chapter 21 of the Internal Revenue Code of 1954, as such codes
Management (FICA) have been and may from time to time be amended.
Human Federal Rule of Evidence 702 was enacted by Congress to simplify and widen the admission of expert-witness testimony. It
Federal Rule of
F Resource
Evidence 702
was hoped that Rule 702 would clear up the inconsistencies by the Frye decision. This rule was intended to support and extend
Management Frye, not replace it. See DLC Course 11: Daubert Criteria in Expert Witness Testimony.
Human Federal
FUTA, as it is commonly known, imposes tax on employers in order to pay for the unemployment benefits system. The tax
F Resource Unemployment Tax
represents the wages paid to employees.
Management Act
Human This is a HMO, which fulfills Health Maintenance Organization Act of 1973 requirements. Federally qualified HMOs may
Federally Qualified
F Resource
HMO
receive some grants and loans from the government and they may be used by employers to meet the provision to provide dual
Management choice.
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
Human regardless of the time required for its completion. These payments resemble piecework payments with the important distinction
F Resource Fee Basis 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
Management 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)
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Human
A list, which represents the maximum benefits payable under a company medical contract for specified procedures. See also
F Resource Fee Schedule
relative value schedule. May also be known as schedule.
Management
Human
Compensation plan found in HMOs and PPOs whereby physicians are paid a pre-established amount for specific services that
F Resource Fee Schedule Basis
they provide. See Capitation basis.
Management
Human The outcome or state of a system, which may be utilized in the modification of system's operation. This term is usually used in
F Resource Feedback terms of compensation and as such, relates to the system whereby information is obtained regarding performance versus
Management compensation.
Human The Federal Insurance Contributions Act established the payroll deduction of OASDI and Medicare taxes from employers and
F Resource FICA employees. Under Chapter 9 of the Internal Revenue Code of 1939 and Subchapters A and B of Chapter 21 of the Internal
Management Revenue Code of 1954, as such codes have been and may from time to time be amended.
Human
A fiduciary is a person who has a position of trust with respect to any other person. In employee benefit plans, covered by
F Resource Fiduciaries
ERISA, there is a standard of conduct imposed upon such a person.
Management
Human
F Resource Field Allowance Compensation in form of a payment to an expatriate for additional costs and difficulties and working in different locations.
Management
Human
F Resource Field Force Insurer's field offices that house insurance agents.
Management
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Human
F Resource Field Office Local sales office.
Management
Human
F Resource Field Underwriter An underwriter who works out of a sales office.
Management
Human
F Resource Field Underwriting Underwriting of a prospective client that takes place out in the sales field or sales office.
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
Human
Financial Accounting derives its authority from official recognition by the Securities and Exchange Commission (SEC) and the American Institute of
F Resource
Standards Board Certified Public Accountants (AICPA) and from the general support of corporate and investment communities. While the
Management Securities and Exchange Commission (SEC) has the authority to regulate accounting standards, it nearly always defers to the
FASB.
Financial Accounting
Human Issued in the United States by the Financial Accounting Standards Board (FASB) in 1985, Statement 87 governs the ways in
Standards Board
F Resource
Statement 87 (FAS
which an employer accounts for and reports the costs of pension benefits offered to its employees. The Statement, titled
Management 'Employers' A
87)
Human
An institution that uses its funds chiefly to purchase financial assets (deposits, loans, securities) as opposed to tangible
F Resource Financial Institution
property.
Management
Human
Financial
F Resource
Intermediary
Often referred to as financial institutions, they act as the middleman between investors and firms raising funds.
Management
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Human Evaluating the investing and financing options available to a firm. Planning includes attempting to make optimal decisions,
F Resource Financial Planning projecting the consequences of these decisions for the firm in the form of a financial plan, and then comparing future
Management performance against that plan.
Human
F Resource Financial Settlement A payment made under a contract.
Management
Human
A financial statement (sometimes called an income and expense declaration) is a court paper, which requires a party to specify
F Resource Financial Statements
her monthly income and expenses.
Management
Human
F Resource First Dollar Coverage Insurance that provides payment for the full loss up to the insured amount with no deductibles.
Management
Human
F Resource First In, First Out A method of valuing the cost of goods sold that uses the cost of the oldest items in inventory first.
Management
Human
First Year
F Resource
Commission
Commission amounts paid for a policy's first year of premium, based on an annual amount.
Management
Human
A 12-month period used by an organization as the accounting period. Can begin on any date. Is used as the time frame for
F Resource Fiscal Year
financial reporting, preparation of profit and loss statements, etc.
Management
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Human
Fiscal Year Budget A 12-month operating budget for an organization that can begin on any date. This time frame is used for financial reporting,
F Resource
(FYB) preparation of profit and loss statements, etc.
Management
Human
The practice of (Japanese) asking "why" five times when confronted with a problem. By the time the fifth why is answered, they
F Resource five why's
believe they have found the ultimate cause of the problem.
Management
Human A type of retirement plan providing benefits only on a fixed amount or at a fixed percentage # such as 1 percent of monthly
Fixed Benefit
F Resource
Retirement Plan
salary times the number of years of credited employment or 25 percent of the employee's average pay over the last few years
Management prior to retirement.
Human
Also known as liabilities. These are often divided into current liabilities, which are due within a year of the date entered on the
F Resource Fixed Liabilities
balance sheet and non-current liabilities, which are due more than a year after the date on the balance sheet.
Management
Human
F Resource Fixed Period Option Life insurance settlement option in which the policy proceeds are paid out in fixed amounts.
Management
Human
Fixed Term An employee and an employer may agree that the employment of the employee will end at the close of a specified date or
F Resource
Employment period or on the occurrence of a specified event or at the conclusion of a specified project.
Management
Human
Flat Extra Premium
F Resource
Method
A method of rating a sub-standard life insurance risk when the extra risk is considered to be constant or temporary.
Management
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Human
F Resource flexibility The ability of a system to respond quickly, in terms of range and time, to external or internal changes.
Management
A benefit program under Section 125 of the Internal Revenue Code that offers employees a choice between permissible
Human taxable benefits, including cash, and nontaxable health and welfare benefits such as life and health insurance, vacation pay,
F Resource Flexible Benefit Plan retirement plans and child care. Although a common core of benefits may be required, the employee can determine how his or
Management 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
funds for the reimbursement of eligible tax-favored welfare benefits. FSAs can be funded through salary reduction, employer
F Resource Flexible Benefits
contributions or a combination of both. Employees can purchase additional benefits, pay health insurance deductibles and
Human
Flexible An approach to expatriate compensation. Allowances can be changed depending upon the needs and desires of the
F Resource
Compensation expatriate.
Management
Human
Flexible Premium
F Resource
Annuity
An annuity under which the policyholder or contract holder may vary the amounts or timing of premium payments.
Management
Human
Flexible Spending funds for the reimbursement of eligible tax-favored welfare benefits. FSAs can be funded through salary reduction, employer
F Resource
Accounts contributions or a combination of both. Employees can purchase additional benefits, pay health insurance deductibles and
Human
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
F Resource Flextime
they start or finish work.
Management
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Human
The Fair Labor Standards Act is a U.S. federal law that governs, amongst other things, child labor law, minimum wage and
F Resource FLSA
record-keeping requirements.
Management
Human
F Resource follow-up Monitoring of job, task, or project progress to see that operations are performed on schedule.
Management
Forced ranking systems direct managers to evaluate their employees' performance against other employees, rather than the
Human
more common (and often grade inflated) measure of evaluating performance against pre-determined standards. The result of
F Resource Forced Ranking
such a process is often brutally blunt: The top 20 percent of performers are amply rewarded, and the bottom 10 percent are
Management shown the door.
Human
A corporation, which was incorporated under the laws of a foreign country, here also called alien corporation. Also, a
F Resource Foreign Corporation
corporation doing business in a state other than the one in which it is incorporated here also called out-of-state corporation.
Management
Human
F Resource Foreign Employees Employees that are employed in another country.
Management
Human
F Resource Foreign Insurer An insurer is a foreign company in any state other than the one in which it is incorporated.
Management
Human
A key issue in determining a person's liability. If a defendant could not reasonably have foreseen that someone might be hurt
F Resource Foreseeability
by his or her actions, then there may be no liability.
Management
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Human
F Resource Forfeiture The loss or surrender of money, property, a right or privilege due to failure to perform.
Management
Human
F Resource Forfeiture Loss Loss of money or anything of value due to failure to perform, such as a deposit given to insure performance.
Management
Human
A company's annual audited report filed with the Securities and Exchange Commission, due within 90 days of the end of the
F Resource Form 10-K
company's fiscal year.
Management
Human
All payments must be by cash, certified check, cashiers or treasurer's check or by a United States postal, bank, express, or
F Resource Form Of Payment
telegraph money order.
Management
Human
F Resource Former Employee An individual who was once an employee of a particular company or organization. Termination may be voluntary or not.
Management
Human In insurance, a proportionate amount of the annual premium, that is, one-twelfth of the annual premium per month for each
F Resource Fractional Premium month involved. A premium less than the mode premium, usually used when a change in premium date is desired and the
Management premium must be set to cover the tie period between the original payment date and the new one.
Human
Fraternal Benefit Fraternal benefit societies are open to men, women and children to provide social, educational and community service
F Resource
Society opportunities. In addition, fraternal benefit societies offer members life, accident and health insurance and/or annuities.
Management
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Human
F Resource Fraternal Insurance Insurance offered to a social organization for their members.
Management
Human
The submission of a claim, which contains false information, is a crime. You may not claim any item, which you did not own or
F Resource Fraudulent Claim
did not ship. It is also illegal to deliberately falsify purchase prices, dates of purchase, quantities, or similar information.
Management
Human
Fraudulent A false statement of fact, made by a person who does not believe the truth of the statement or is recklessly indifferent to
F Resource
Misrepresentation whether it is true or not, to another with the intention that the other person will rely on it.
Management
Human
Free Examination
F Resource
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.
Management
Human
Freedom of
F Resource
association
The right to belong to a union. As protected by the Human Rights Act 1993.
Management
Human
Several definitions: 1) Number of times an average person or home is exposed to a media vehicle (or group of vehicles), within
F Resource Frequency
a given time period. (2) The position of a television or radio station's broadcast signal within the electromagnetic spectrum.
Management
Human
Frequency
F Resource
Distribution
Table of statistical data arranged to indicate the number of occurrences of each value.
Management
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Human
F Resource Fringe Benefits Non-salary employee compensation.
Management
Human
With this type of life insurance certificate, most of the expense charges take the form of deductions from each premium
F Resource Front Loaded Policy
payment and continue throughout the premium-payment period.
Management
The amount of lost earnings accruing between the time a plaintiff wins a legal judgment and is reinstated to his/her job or takes
Human
another job. Like back pay, front pay essentially is the equivalence of lost earnings. Neither Back Pay or Front Pay is subject to
F Resource Front Pay
the Civil Rights Act of 1991 $300,000 liability cap. Each can be awarded over and above any compensatory or punitive
Management damages.
Human
F Resource Frozen Plans Plans that have not been terminated but have ceased accruing benefits and are no longer accepting new participants.
Management
Human
F Resource Fully Contributory A general term used with group health insurance plans in which the employee pays a portion of the premium.
Management
Human
Functional job
F Resource
analysis
The preparation required for the construction of a job description. It is necessary to collect data on the job to be advertised.
Management
Human
F Resource Fund To finance or underwrite.
Management
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Human
A financial institution or individual that provides for the accumulation or administration of the pension contributions that will be
F Resource Funding Agency
used to pay pension benefits.
Management
Human A pension plan funding approach under which a separate account is charged with certain liabilities and credited with certain
Funding Standard
F Resource
Account
amounts. The funding standard is satisfied when there is no accumulated funding deficiency, that is, when the balance in the
Management account is zero.
Human
The federal government and the various states impose a tax on employers with respect to certain categories of employee
F Resource FUTA
service. A few states also require employees to contribute to the cost of providing unemployment benefits.
Management
Human The Federal Unemployment Tax Act (FUTA) levies an excise tax on employers to pay for the unemployment benefits system.
F Resource FUTA Tax The tax is a percentage of the wages paid to employees. Contributions to state unemployment funds are generally a credit
Management against the FUTA tax.
Human
For pension benefit purposes, the period of time beginning with the current date and ending with the anticipated date of an
F Resource Future Service
employee's retirement.
Management
Human
F Resource Future Value The value at some point in the future of a present amount of money.
Management
Human
Gainsharing / Gain- This type of variable pay ties bonuses or salary increases to increased productivity (vs. profit increases). This is performance-
G Resource
Sharing based incentive pay.
Management
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Human The primary care provider responsible for managing medical treatment rendered to an enrollee of a health plan. Alternatively,
G Resource Gatekeeper this term has been used to describe third party monitoring of care to avoid excessive costs by allowing only appropriate and
Management necessary care to be rendered.
Human
G Resource GED General educational development, and/or general equivalency diploma.
Management
Human 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
Gender
G Resource
Discrimination
range of human resource decisions regarding employees. In addition, the Equal Pay Act prohibits paying men and women
Management differently for the same or substantially similar jobs, and Title IX prohibits discrimination by gender in educational institutions.
Human
A margin account provided to a customer by a brokerage, in Federal Reserve Board terminology. Regulation T requires that all
G Resource General Account
transactions involving credit given to the customer must be made in a general account.
Management
Human
General Agency
G Resource
Distribution System
A means of distribution that uses general insurance agents rather than branch offices to sell life and health insurance.
Management
Human
G Resource General Agent One who is authorized by a principal to represent the principal in a specific range of matters.
Management
Human A type of self-funding arrangement in which benefit claims from nonqualified plans are paid from current operating revenues.
G Resource General Asset Plan Supporting assets are commingled with the employer's other assets. Fiduciary standards and reporting and disclosure
Management requirements apply.
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Human Generally Accepted

G Resource Accounting Principles Accounting practices mandated by recognized rule-making authorities.
Management (GAAP)
Human
Geographic Pay differences established for the same job based on variations in costs of living or costs of labor among two or more
G Resource
differentials geographical areas.
Management
The percent difference between pay levels for an occupation in two or more geographic areas. Due to the demand for and
Human supply of labor, an employee may be paid more or less depending on where she works. This makes setting branch-office
Geographic Salary
G Resource
Differentials
salaries complicated, as they must be adjusted for the local labor market pricing (and in some cases the local cost of living).
Management ERI's Geographic Assessor and Salary Assessor software aid in planning salaries for positions in multiple locations. See
www.erieri.com.
Human Guaranteed Insurability Rider is an insurance policy in which the insurer is required to renew the policy for a specified amount
G Resource GI Rider of time regardless of changes to the health of the insured. The agreement requires that premiums are paid on time and that
Management the insurer makes no changes except if a premium change is made for an entire class of policyholders.
Human Refers to the analysis of how well (or poorly) women and minorities are doing at moving upwards in organizations. A Glass
Glass Ceiling
G Resource
Analysis
Ceiling Commission was authorized by law to study artificial barriers to the advancement of women and minorities in the
Management workforce and to recommend means of overcoming such barriers.
Human
G Resource Goal Setting The process of setting and assigning a set of specific and attainable goals to be met by an individual, group or organization.
Management
Human
G Resource Golden Handcuffs Rewards and penalties designed to discourage key employees from leaving a company.
Management
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Human A clause in an executive's employment contract specifying that he/she will receive large benefits in the event that the company
G Resource Golden Parachutes is acquired and the executive's employment is terminated. These benefits can take the form of severance pay, a bonus, stock
Management options, or a combination thereof.
Human
A duty under Section 4 of the Employment Relations Act 2000 to conduct negotiations where two parties meet and confer at
G Resource Good faith bargaining
reasonable times with open minds and the intention of reaching an agreement.
Management
Human
A document that is prepared during the formation of a corporation. It states the corporation's goals and objectives as well as
G Resource Good Practices
what the corporation can do and cannot do to fulfill its goals.
Management
Human
Reputation for a product or service standard. A company's value over and above the physical property and accounts
G Resource Goodwill
receivables.
Management
Human
A specified period after a premium payment is due, in which the policyholder may make such payment, and during which the
G Resource Grace Period
protection of the policy continues.
Management
Human
Graded Premium A form of modified life insurance that provides for annual increases in premiums for a constant face amount of insurance
G Resource
Whole Life Insurance during a defined preliminary period, with the purpose of making initial payments more affordable.
Management
Human
A vesting schedule under which an employee is partially vested, typically 25%, after a certain number of years of service, with
G Resource Graded Vesting
the vesting schedule increasing until full vesting is achieved.
Management
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Human
G Resource Grant Date The date that a stock option term begins and the option become effective.
Management
Human
G Resource Green Circle Rate An individual rate that is below the minimum of the established pay range for a specific job or pay grade.
Management
Human
G Resource Grievance A complaint brought by one party to an employment contract against another party.
Management
Human
G Resource Gross Income Total income produced by a property before any expenses are deducted.
Management
Human
With regard to an adjustable rate mortgage, an amount expressed as percentage points, stated in the note which is added to
G Resource Gross Margin
the current index value on the rate adjustment date to establish a new note rate.
Management
Human
G Resource Gross misconduct An act committed by any personnel likely to lead to Summary Dismissal. Examples may be:
Management
Human
G Resource Gross Premium The premium paid by the policyholder.
Management
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Human
A pension program underwritten and administered by an insurance company. Normally uses the unit benefit method of funding.
G Resource Group Annuity
Plan participants are covered under one contract the employer pays premiums on their behalf.
Management
Human
Group Creditor Life Life insurance issued to the creditor on the lives of debtors to pay the amount of the indebtedness in the event of death. Used
G Resource
Insurance frequently by lending and other financial institutions to eliminate problems of collection from a deceased's estate.
Management
Human
Group Deferred A funding instrument wherein the insurance company, for a stipulated fee for each participant's benefit, will guarantee the
G Resource
Annuity purchase rates of the future annuity and will administer the plan.
Management
Human
G Resource Group dynamics The social manner in which people interact with each other within a group.
Management
Human
G Resource Group Incentive A material incentive provided to all members of a work group to reward the group's collective performance.
Management
Human Any insurance plan under which a number of employees and their dependents are insured under a single master policy, issued
G Resource Group Insurance to their employer or to an association, with individual certificates given to each insured individual. The most commonly written
Management lines are health life and accident.
Human
It is a plan, which establishes a fund providing legal services for an employee or union, association or organization member as
G Resource Group Legal Services
a fringe benefit.
Management
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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
Human
policies from term to permanent when employees leave their jobs. The individuals then pay premiums to the insurer. Federal
G Resource Group Life Insurance
requirements for group life insurance include: (1) The policy must provide a general death benefit. (2) The policy must cover a
Management "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
G Resource Group Life Insureds In Canada, the persons who are insured by a group life insurance contract. Usually called 'insureds' in the United States.
Management
A combination life insurance plan under which each employee's annual contribution is used as a single premium to buy a unit
Human
Group Paid Up of paid-up insurance, while the employer's contribution is used to buy group term coverage. On termination of employment, the
G Resource
Insurance employee may take paid-up insurance or receive a refund of contributions or the cash surrender value of the paid-up
Human
Group Permanent A group insurance plan in which the whole life policy purchased provides death benefits to the employee's survivors in the
G Resource
Insurance event of premature death. Upon retirement, the cash value can be used to provide income to the employee.
Management
Human An HMO that contracts with a single multispecialty medical group to provide care to the HMO's membership. The group
G Resource 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
Management medical group a negotiated, per capita rate, which the group distributes among its physicians, usually on a salaried basis.
Human
Group
G Resource
Representative
An individual that represents an insurance company in the capacity of sales.
Management
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Group RRSP A contractual arrangement registered under Section 146 of the Income Tax Act between an individual and an insurer, trust
Human company or corporation authorized to accept payments from an individual or his her spouse for the purpose of providing a
(Registered
G Resource
Retirement Savings
retirement income for that individual or his or her spouse by, upon maturation of the plan, purchase of a prescribed form of
Management annuity or transfer of the plan assets to a registered retirement income fund (RRIF). Subject to prescribed maximums, such
Plan) contributions made by a resident of Canada having earned income are deductible for income tax purposes.
Human
Group Term Life A plan qualifying under Code Section 79 to provide employees with employer-paid life insurance coverage at little or no tax
G Resource
Insurance cost.
Management
Human A form of group life insurance that combines term protection for designated beneficiaries with an investment element for the
Group Universal Life
G Resource
Plan
policyholder, which can be used to create nontaxable permanent insurance or to accumulate tax-deferred capital. Participation
Management is entirely voluntary and the employee pays all premiums.
Human
The assumption of responsibility for payment of a debt or performance of some obligation if the liable party fails to perform to
G Resource Guarantee
expectations.
Management
Human
Guaranteed Annual
G Resource
Wage (GAW)
A provision in a contract with an employer guaranteeing the employee a minimum income or work over a period of one year.
Management
Human
Guaranteed Income
G Resource
Supplement(GIS)
A nontaxable monthly benefit paid to lower-income OAS recipients on the basis of family income.
Management
Human
Guaranteed A rider now offered on most life insurance policies whereby additional insurance may be purchased at specified future times
G Resource
Insurability Rider (GI) without a medical examination or other evidence of insurability. Rates are based on attained age at time of purchase.
Management
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A deposit arrangement entered into with an insurance company, which guarantees both the principal and interest repayments.
Human It is a type of annuity contract, not a marketable security. The amount deposited can be a single sum or a stream of monies
Guaranteed
G Resource
Investment Contract
deposited over a specified and limited period of time. Similarly, the deposit plus the guaranteed interest paid thereon can be
Management 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
Guaranteed Issue The insurer will issue up to some stipulated amount of insurance for each individual employee without evidence of insurability.
G Resource
Insurance The requirements are usually based on size of group and distribution by ages, and individual insurers decide on amounts.
Management
Human
Guaranteed An insurance policy, which is guaranteed renewable provided premiums are paid. The policy conditions remain unchanged
G Resource
Renewable Policy although the insurers may review premium rates.
Management
All 50 states, the District of Columbia, and Puerto Rico require licensed insurers to assume some of an insolvent insurance
Human company's policyholder liabilities. Guaranty associations are the mechanism by which solvent insurers bail out the
G Resource Guaranty Association policyholders of companies that fails. The lines of insurance covered by guaranty associations and the maximum amount paid
Management 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 In Canada, a written statement developed by the Canadian Life and Health Insurance Association (CLHIA). The guide
Guide To Buying Life
G Resource
Insurance
describes the types of life insurance available, so that prospects for life insurance can compare the advantages and
Management disadvantages of each type of policy.
Human Guidelines Governing In Canada, Superintendents' Guidelines that regulate several aspects of group health insurance contracts, including the types
G Resource 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
Management Sickness Insurance issued to each person insured by the contract.
Human
Guidelines Governing In Canada, a set of guidelines issued by the Canadian Council of Insurance Regulators. The guidelines specify, among other
G Resource
Group Life Insurance things, the types of groups eligible for group life insurance.
Management
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Human A payment made in recognition of 'different' conditions prevailing at the host location. Locations are assessed for their degree
H Resource Hardship Allowance of hardship and the criteria may include isolation, special health risks, extremes of climate and political instability, for example.
Management The allowance is usually expressed as percentage of base pay.
Human 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
H Resource
Distributions
hardship withdrawal may be made only in cases of financial emergency provided there are no other sources available to meet
Management the need the withdrawal is taxable as an early distribution and subject to a 10% excise tax.
Human A term produced as a result of an experiment conducted by Elton Mayo whereby he concluded that expressing concern for
H Resource Hawthorne Effect employees and treating them in a manner which fulfills their basic human needs and wants will ultimately result in better
Management performance.
Human
H Resource Hazard Danger or obstacle, the existence of which is sometimes tied to the reward system.
Management
Human
Work, which exposes the employee to a considerably greater risk than normal, working conditions. Pay is above normal rate
H Resource Hazardous Duty Pay
tables due to the risk associated with each position and risks.
Management
Human A colloquial term for recruiters, employment agencies or executive search firms that broker human resources. Like real estate,
H Resource Head Hunter stock brokers and sports agents, headhunters are in the middle of an employment sales transaction: they solicit customers
Management (companies with job openings willing to pay a fee) and they seek talent (people with specific skills).
Human
Headquarters
H Resource
Country
The country where the center of operations or administration of a particular employer.
Management
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Human
In health insurance, policy benefits payable as a result of disability from covered sickness or accident. Sickness coverage is
H Resource Health Care Benefits
rarely written separately, unless the insured also carries an amount of accident insurance with the same company.
Management
Health Care
Human
Financing The agency of the Department of Health and Human Services that, among other things, administers the Medicare program and
H Resource
Administration works with the states to administer their Medicaid programs.
Management
(HCFA)
Human Health Care

Allows employees to set aside pretax funds for eligible health care benefits such as physical exams, vision care and dental
H Resource Reimbursement
care, including deductibles and co-payments. See also Flexible Spending Accounts (FSAs).
Management Account
Human Protection that provides payment of benefits for covered sickness or injury. Included under this heading are various types of
H Resource Health Insurance insurance, such as accident insurance, disability income insurance, medical expense insurance, and accidental death and
Management dismemberment insurance.
Health Insurance Federal legislation that improves access to health insurance when changing jobs by restricting certain preexisting condition
Human limitations, and guarantees availability and renew ability of health insurance coverage for all employers regardless of claims
Portability And
H Resource
Accountability Act Of
experience or business size. The law also increases the health insurance deduction for the self-employed provides tax
Management incentives for purchase of long-term care insurance, and establishes medical saving accounts (MSAs), which provide for tax-
1996 (HIPAA) deductible contributions to accounts to cover medical expenses.
The Health Maintenance Act was established to encourage the development of HMOs. It requires employers subject to
Human
Health Maintenance minimum wage standards who employ 25 or more employees, as well as states and their political subdivisions, to include in a
H Resource
Act (HMA) health benefit plan offered to employees the option of membership in a qualified health maintenance organization (HMO) if an
Management HMO had made a request for such inclusion.
Human A prepaid medical group practice plan that provides a comprehensive predetermined medical care benefit package. The
Health Maintenance
H Resource
Organization (HMO)
government, medical schools, hospitals, employers, labor unions, consumer groups, insurance companies, can sponsor the
Management HMO and hospital-medical plans. HMOs are both insurers and providers of health care.
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Human
The term is broadly applied to anyone who receives property from a deceased person's estate. The heir of the ERISA plan is
H Resource Heirs Of ERISA Plans
deemed to be the beneficiary of the employee's retirement plan.
Management
Human
A psychology theory ascribed to Abraham H. Maslow in which he proposed that people will constantly seek to have their basic
H Resource Hierarchy of needs
needs (sleep, food, water, shelter, etc.) fulfilled and that such needs ultimately determine behavior
Management
Human Either a 5% owner or a person who earned more than $80,000 during the current or preceding year. Repeals rule treating
Highly Compensated
H Resource
Employees
highest paid officer as an HCE, the top-100 rule, and family aggregation rules in both the HCE definition and the $150,000
Management compensation cap. Discrimination in favor of this group is prohibited.
Human
Highly Structured An insurance policy in which the condition of the policy and the application constitute the agreement, in its entirety, between the
H Resource
Questionnaires policy owner and the insurer. Contrast with open contract.
Management
Human
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
H Resource Hiring Bonus
forfeited at the previous company.
Management
Human
H Resource Hiring rate As a matter of wage policy, the beginning rate at which people typically are hired into a job.
Management
Human
H Resource History Statement A physician's report on a particular health condition.
Management
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Human
Hold Harmless A statement indicating that the individual will reimburse the insurance company if the claim is ever challenged and deemed to
H Resource
Release be fraudulent.
Management
Human
Days established by law or custom for which workers receive pay while absent from work. Law establishes statutory holidays.
H Resource Holidays
When the customary day tolls on a weekend a moveable holiday may be substituted for it on another day.
Management
Human
H Resource Home Country The expatriate's normal country of employment.
Management
Human
Skilled and semi-skilled part-time care received at home. May include nursing care, physical therapy, speech therapy and/or
H Resource Home Health Care
such custodial services as cooking, cleaning and washing.
Management
Human
H Resource Home Leave Company funded return airfares, which allow an expatriate to return to his home country for holiday/vacation purposes.
Management
Human
This is a feature provided for expatriates that are selling their home for a foreign assignment. It will pay all the costs associated
H Resource Home Sale Protection
for selling a home and relocation, except for capital gains.
Management
Human 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
H Resource honor public moral code. Honor includes: integrity, courage, loyalty, respect, selfless-service, and duty. Honor demands adherence to
Management a public moral code, not protection of a reputation.
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Human A Japanese strategic panning process in which a company develops up to four vision statements that indicate where the
H Resource hoshin planning company should be in the next five years. Goals and plans are developed based on the vision statements. Audits are
Management conducted periodically to monitor progress.
Human
Hospital Confinement A form of health insurance that provides a stipulated daily, weekly or monthly indemnity during hospital confinement. The
H Resource
Insurance indemnity is payable on an unallocated basis without regard to the actual expense of hospital confinement.
Management
Human
Hospital Expense
H Resource
Insurance
A health insurance policy that covers daily hospital room and board charges and some miscellaneous hospital expenses.
Management
Human
Hospital Indemnity A form of health insurance that provides a stipulated daily, weekly or monthly indemnity during hospital confinement. The
H Resource
Insurance indemnity is payable on an unallocated basis without regard to the actual expense of hospital confinement.
Management
Human
Hospital Surgical
H Resource
Expense Insurance
Medical expense health insurance that combines basic hospital coverage and basic surgical coverage into one policy.
Management
A legally constituted institution having organized facilities for the care and treatment of sick and injured persons on a resident
Human or inpatient basis, including facilities for diagnosis and surgery under the supervision of a staff of one or more licensed
H Resource Hospitals physicians and which provides 24-hour nursing services by a registered nurse on duty or call. It does not mean convalescent,
Management 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
A nation in which representatives or organizations of another state are present because of government invitation and/or
H Resource Host Country
international agreement.
Management
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Human For purposes of retirement plans, an hour for which an employee is directly or indirectly paid by the employer for the
H Resource Hour Of Service performance of duties. An hour of overtime is still counted as only an hour of service, even though the pay for overtime may be
Management higher. Hours during a leave of absence or a vacation with pay are counted.
Human
The rate of pay per hour for a job being performed. An ―hourly‖ worker may be assigned to various rated jobs during any pay
H Resource Hourly rate
period and is paid the ―rate‖ applicable to each job while working on it.
Management
Human
H Resource Hours Of Work Standard hours worked in a year is 2,080 (52 weeks x 40 hours per week).
Management
Human
An amount paid by the company, either to the expatriate or direct to the property landlord, to enable the expatriate to rent or
H Resource Housing Allowance
lease housing in the host country.
Management
Human
The portion of the base salary typically spent in the home country on housing. The norm may vary depending on family status
H Resource Housing Norm
and salary level.
Management
Human
A method by which human resources effectiveness can be assessed. Can be carried out internally or HR audit systems are
H Resource HR Audit
available.
Management
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
Human
understanding of the human aspect of a company and its strategic importance. HRM is seen as moving on from a simple
H Resource HRM
"personnel" approach (or was supposed to) because it is preventative of potential problems, and secondly it should be a major
Management aspect of the company philosophy, in which all managers and employees are champions of HRM-based policies and
philosophy.
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Human An acronym for Hypertext Markup Language, HTML is the computer language used to create hypertext documents. HTML
H Resource HTML uses a finite list of tags that describe the general structure of various kinds of documents linked together on the World Wide
Management Web.
Human
H Resource Human Capital The collective knowledge, skills and abilities of an organization‘s employees.
Management
Human
H Resource human nature The common qualities of all human beings.
Management
Human William R. Tracey, in The Human Resources Glossary defines Human Resources as: ―The people that staff and operate an
H Resource Human Resources organization … as contrasted with the financial and material resources of an organization. The organizational function that
Management deals with the people ...‖
Human
The required return in capital budgeting. For example, if a project has an expected rate of return higher than the hurdle rate,
H Resource Hurdle Rate
the project may be accepted.
Management
Human
The approximate amount of tax, calculated on home country base salary and bonus, where applicable, that the expatriate
H Resource Hypothetical Tax
would have paid if he/she had remained in the home country.
Management
Human
IBNR (Incurred But Claims that have been incurred but have not been reported to the insurer as of some specific date. Often a disputed figure
I Resource
Not Reported) since carriers must estimate this liability for accounting purposes based on their experience with claims lags.
Management
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Human
Identifying The
I Resource
Customer
Understanding who the prospect is and the cycle of the sales process.
Management
Human
A systematic classification method to classify the type and degree of a peril, for a specific industry, to a specific occupation. An
I Resource Illness Perils
insurance company does the system of classification.
Management
Human
An annuity under which income payments begin one annuity period (e.g., one month or one year) after the annuity is
I Resource Immediate Annuity
purchased.
Management
Immediate
Human A group insurance contract under which the employer's unallocated account is credited with its share of actual investment
Participation
I Resource
Guarantee Contract
income for the year. There is generally no guarantee of principal or a minimum rate of interest. Annuity payments are charged
Management directly against the account as they are paid.
(IPG)
Human Immigration
A special set of definitions exist for determining the competitive rate of pay that should be paid to immigrants who hold
I Resource Prevailing Wage
temporary work permits in the United States. These rules are spelled out in General Administrative Letter 2-98.
Management Rates
Human
I Resource Impairment The amount by which stated capital is reduced by distributions and losses.
Management
Human
A rider attached to a health insurance contract that waives the insurance company's liability for all future claims on a pre-
I Resource Impairment Rider
existing condition.
Management
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Human Authority that, while not specifically granted to the agent in the agency agreement, the agent can assume he or she has
I Resource Implied Authority through common sense. Authority that is apparently necessary for an agent's ability to carry out day-to-day or routine
Management responsibilities.
Human
Cost-saving group incentive plan in which a standard cost of production is established and the employees share in the cash
I Resource Improshare
savings of production costs under that amount. Improshare stands for improved productivity through sharing.
Management
Human A focus on sustaining and renewing the development of individuals and the organization (with a time horizon from months to
I Resource improving decades) that requires a need for experimentation and innovation with results that are difficult to quantify. Usually it entails long-
Management term, complex outcomes.
Human Pay plans designed to reward the accomplishment of specific results. Awards are usually tied to expected results identified at
I Resource Incentive (pay plans) the beginning of the performance cycle. The plans can be individual, group, companywide, or a combination of any. Incentive
Management plans are ―forward‖ looking; bonus plans look ―backward.‖
Human
Incentive Rewarding the performance of an individual in an institution with added compensation, typically in the form of bonuses or
I Resource
Compensation percentage increments above the base salary.
Management
Human
I Resource Incentive pay Additional compensation used to motivate and to reward employees for exceeding performance or productivity goals.
Management
Human
Incentive Stock
I Resource
Option (ISO)
Gives an employee a right to purchase company stock usually at a bargain price.
Management
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Human
Incident Of Rights that will result in the inclusion of life insurance policy proceeds in the policyholder's estate for federal estate tax
I Resource
Ownership purposes.
Management
Human
Income Protection A disability income policy, which specifies that an insured be disabled if he or she suffers an income loss caused by a disability,
I Resource
Insurance Policy therefore qualifying him or her for benefits under the policy.
Management
Human
Income Replacement A residual or partial disability benefit that is to be paid upon satisfaction of the company's elimination period, and the employee
I Resource
Benefit experiences another loss of earnings due to a previous partial or total disability.
Management
Human
Income Replacement
I Resource
Ratio
The amount of gross income that is replaced by the retirement plan.
Management
Human
A detailed summary of the income and expenses of a business over a period of time (usually quarterly, semiannually or
I Resource Income Statement
annually) showing the net income or loss incurred.
Management
Human
I Resource 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.
Management
Human
Increasing Term Term life insurance coverage that increases in face value each year (or certain period) from the date of policy issue to the date
I Resource
Insurance of expiration.
Management
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Human
I Resource Incumbent Holding an indicated position, role, office, etc., currently.
Management
Human
I Resource Indemnification The compensation to the victim of a loss, in whole or in part, by payment, repair, or replacement.
Management
Human
I Resource Indemnity A benefit paid by an insurer for a loss insured under a policy.
Management
Human
Independent
I Resource
contractor
A person who works for him/herself but has a contract for services with another person/organization.
Management
This test considers the return on investment indicated by the increase in the value of a corporation‘s stock along with dividends
Human paid during the time period in question. It looks at the company‘s performance throughout the year to determine if the
Independent Investor
I Resource 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
Management
pay.
Human
Independent Life An insurance solicitor, licensed by the state, who places business with a variety of insurance companies and who represents
I Resource
Brokers the buyers of insurance rather than the companies even though he or she is paid commissions by the companies.
Management
Human Independent A type of managed care organization composed of a group of independent physicians who have formed an association as a
I Resource Physicians separate legal entity for contracting purposes. IPA physician providers retain their individual practices, work in separate offices,
Management Association (IPA) continue to see their non-managed care patients and have the option to contract directly with managed care plans.
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Human A Broker is any person who, on behalf of the insured, for compensation as an independent contractor, for commission, or fee,
Independent Property
I Resource
/ Casualty Broker
and not being an agent of the insurer, solicits, negotiates, or procures insurance or reinsurance or the renewal or continuance
Management thereof, or in any manner aids therein, for insureds or prospective insureds other than him.
Human
I Resource 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.
Management
Human Indeterminate
A type of nonparticipating whole life insurance that allows premium rate modifications throughout the life of the policy and
I Resource Premium Life
guarantees that the premium rate will never exceed a stated maximum rate.
Human
Modifying contracts so that their dollar terms adjust to the inflation rate as measured in an index, such as the consumer price
I Resource Indexation
index.
Management
Human
An option based on the market value of a particular group of stocks. Unlike stock options, index options--when exercised--are
I Resource Indexed Options
settled in cash.
Management
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
Human
the average performance of 500 widely held common stocks. Other frequently used indexes are the Dow Jones Industrial
I Resource Indexing
Average, the NASDAQ and the Russell 2000, used for smaller company stocks, the Toronto Stock Exchange 300 Composite
Management 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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Human
I Resource Indirect Labor Workforce not directly engaged in the manufacture of a product line.
Management
Human
I Resource Indirect pay: All forms of nondirect (i.e., noncash) compensation made to employees in exchange for their contribution to an organization.
Management
A defined contribution plan or profit-sharing plan that provides an individual account for each participant, allows participants to
Human
Individual Account choose, from a broad range of investment options, how their accounts will be invested, and whose benefits are based solely on
I Resource
Plan the amount contributed to the participant's account, including income, expenses, gains and losses. Defined contribution
Management retirement plans such, as 401(k) plans are examples of individual account plans.
Human A type of pension plan, frequently used for small groups, administered by trustees who are authorized to purchase individual
Individual Contract
I Resource
Pension Plan
level premium policies or annuity contracts for each member of the plan. The polices usually provide both life insurance and
Management retirement benefits.
Human Individual
I Resource employment The legal relationship between an employee and employer. See Part 6 of the Employment Relations Act 2000
Management agreement
Human
An individual life or health insurance policy purchased on an individual basis (as distinct from group and blanket insurance.)
I Resource Individual Insurance
Sometimes called personal insurance.
Management
Human
I Resource Individual Pay Rate A pay level assigned to an individual or to a particular position.
Management
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Human A type of managed care organization composed of a group of independent physicians who have formed an association as a
Individual Practice
I Resource
Association
separate legal entity for contracting purposes. IPA physician providers retain their individual practices, work in separate offices,
Management continue to see their nonmanaged care patients and have the option to contract directly with managed care plans.
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
Human
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
I Resource
Account plan with a bank, insurance company, brokerage house or mutual fund. A company can also deduct an agreed-upon amount
Management 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.
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
Human
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
I Resource
Account (IRA) plan with a bank, insurance company, brokerage house or mutual fund. A company can also deduct an agreed-upon amount
Management 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
I Resource Induction The process of introducing a new employee into the organization.
Management
Human
I Resource Industrial Insurance Life insurance issued in small amounts, usually less than $1,000, with premiums payable on a weekly or monthly basis.
Management
Human
I Resource Industrial relations The study of theories and practices in the workplace relationship.
Management
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Human
Industry Wage
I Resource
Surveys
Surveys conducted and collected by a variety of sources to provide wage information for a wide variety of industries.
Management
Human
That branch of statistics dealing with procedures used to make inferences about a population from information contained in a
I Resource Inferential Statistics
sample.
Management
A phase of the business cycle characterized by abnormally high prices, a decrease in the purchasing power of money, and
Human
spiraling costs and wage rates. Inflation may occur when purchasing power is in excess of goods and services for sale, and/or
I Resource Inflation
buyers stampede to convert money into commodities or when production costs and prices advance to consecutively higher
Management levels.
Human
I Resource influencing The key feature of leadership, performed through communicating, decision making, and motivating.
Management
Several definitions: 1) Amount of expenses which the insured party must pay before receiving any benefits from the insurance
Human company. (2) An item or expense which is taken away from an individual's gross income in order to reduce the amount of
I Resource Initial Deductible taxable income (e.g. mortgage interest, state taxes, business expenses which are not reimbursed and charitable
Management contributions). See also calendar year deductible, corridor deductible, family deductible, integrated deductible and per cause
deductible.
Human In life and health insurance, the first premium, generally payable with the application or upon delivery of the policy. In group
I Resource Initial Premium insurance, especially health, an amount paid at the inception of an insurance contract that permits adjustments to be made
Management based upon future experience.
Human
I Resource Initial Public Offering The original sale of a company's securities to the public.
Management
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Human
In life insurance, the reserve amount determined at the beginning of the policy year. It equals the preceding year's terminal
I Resource Initial Reserve
reserve, plus the annual net premium.
Management
In terms of life insurance policy, this is the amount of money, before adjustments are made for factors such as policy loans or
Human
late premiums, that the policy owner will receive if the policy owner allows the policy to lapse or cancels it and surrenders the
I Resource Inside Build Up
policy to the insurance company. Cash values are a feature of most types of permanent life insurance. Compare to cash
Management surrender value. Also known as inside build-up and policy owner's equity.
Human
I Resource Inside Director A member of a company's board of directors who is also an employee of the company.
Management
Human
I Resource Inside Payroll Costs Payroll costs that are not separated out.
Management
Human A stockholder who owns 10% or more of a company, a member of the board of directors or an elected officer of a corporation,
I Resource Insider or anyone else who possesses information that is not publicly known about the company, but which is important in valuing its
Management stock. Securities and Exchange Commission (SEC) regulations place restrictions on stock purchases and sales by insiders.
Human
Section 16 of the SEC regulations identifies 'insiders' as those precluded from profiting, unfairly from the sale and or purchase
I Resource Insiders
of company stock.
Management
Human
In reinsurance, a clause that holds the reinsurer liable for its share of loss assumed under the treaty, even though the primary
I Resource Insolvency Clause
insurer is insolvent.
Management
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Human In life and health insurance, a receipt obtained from an applicant when a policy (upon which the first premium has not been
I Resource Inspection Receipt 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
Management delivered for inspection only.
Human
I Resource Installation The act of installing or condition of being installed.
Management
Human
I Resource Installment Certificate A certificate given to the beneficiary of an insurance policy stating the benefit payment information.
Management
Human
Installment Refund An insurance option that states if any proceeds from a policy remain after the beneficiary's death, they will be paid to the
I Resource
Option contingent payee in a series of installments.
Management
Human Insurability
An insurance company offer that provides for insuring an applicant if he/she were to die before their application and premium
I Resource Conditional Premium
reached the Home office.
Management Receipt
Human
An insurance provision stating that the policy will not become effective unless the insured is still considered insurable at the
I Resource Insurability Provision
time of delivery.
Management
Human
I Resource Insurability Statement A statement ascertaining if there have been changes in insurability between the time of application and policy issue.
Management
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Human Insurability Type

An agreement that provides temporary insurance for a short period of time, such as during the period in which regular
I Resource Temporary Insurance
insurance is being written.
Management Agreement
Human
A person's or party's interest--financial or emotional--in the continuing life of an individual, a person or party must have an
I Resource Insurable Interest
insurable interest in the life of a proposed insured in order to purchase an insurance policy on the proposed insured's life.
Management
Human
A means of providing or purchasing protection against some of the economic consequences of loss. Risk of loss is transferred
I Resource Insurance
to a third party in exchange for a 'consideration' or premium. This exchange creates an insurance contract.
Management
Human
This Act, except as provided, applies to every insurer that carries on any business of insurance in British Columbia and to
I Resource Insurance Act
every contract of insurance made or deemed made in British Columbia.
Management
Human
I Resource Insurance Agent A sales representative of an insurance company.
Management
Human
Generally refers to the amount of protection available and the kind of loss which would be paid for under an insurance contract
I Resource Insurance Coverage
with an insurer.
Management
Human
An HMO model that contracts with multiple physician groups to provide services to HMO members, may involve large single
I Resource Insurance Network
and multispecialty groups.
Management
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Human Insurance Regulatory Formerly known as Early Warning System or Early Warning Tests, financial ratio and performance criteria designed by the
I Resource Information System National Association of Insurance Commissioners to identify insurance companies, which may need close surveillance by state
Management (IRIS) insurance departments.
Human
A pension plan in which the benefits are at least partially insured by an insurance company. Such plans provide a death benefit
I Resource Insured Plan
to beneficiaries if the employee dies before retirement.
Management
Human
I Resource Insurer The insurance company or party that provides the insurance policy.
Management
Human Insurer Administered

I Resource Organization A group insurance plan in which the insurer handles all administrative work.
Management Insurance Plan
Human
I Resource Intangible rewards Non-monetary re-enforcers such as praise given to an employee in recognition of a job well done, or a particular achievement.
Management
Human
I Resource Integrated Deductible A deductible that can be satisfied by payments in another portion of the plan.
Management
Human
Integrated Dental
I Resource
Plan
A major medical plan that has a dental plan as part of their features.
Management
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Human
Integrated Pension
I Resource
Plan
A pension plan that is integrated with Social Security retirement benefits.
Management
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
Human
damage the integrity of the individual. Integrity, comes from the same Latin root (integritas) as the word "integer," refers to a
I Resource integrity
notion of completeness, wholeness, and uniqueness. Integrity also entails the consistent adherence of action to one's personal
Management moral beliefs.
Human
I Resource Intensive Care Units The specialized center in a hospital where intensive care is provided.
Management
Human
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
I Resource Intercept
the z-axis, etc. EX. A linear equation when graphed has at most one x-intercept.
Management
Human In life insurance, a method of comparing costs of similar policies by using an index that takes into account the time value of
Interest Adjusted
I Resource
Cost
money due at different times through interest adjustments to the annual premiums, dividends and cash value increases at an
Management assumed interest rate.
In life insurance, a settlement option under which all or part of the proceeds of a policy are left with the insurance company for
Human
a definite period at a guaranteed minimum rate of interest. The principal remains with the company for a specified period of
I Resource Interest Option
time. Interest may be paid (usually subject to certain minimums) annually, semiannually, quarterly or monthly # or, in some
Management cases, may be added to the proceeds.
Human
I Resource Interest Rate That percentage of a principal sum earned from investment or charged upon a loan.
Management
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Human
I Resource Internal Equity Refers to the pay relationships among jobs.
Management
The federal agency responsible for administering and enforcing the Treasury Department's revenue laws, through the
Human
Internal Revenue assessment and collection of taxes, determination of pension plan qualification, and related activities. See also 1099, 401(k)
I Resource
Code (IRC) plan, amended return, audit, backup withholding, deficiency, determination letter, imputed interest, itemized deduction, over-55
Management home sale exemption, revenue ruling, standard mileage rate, wash sale rule.
Human
Short for Internet work. A network of networks, a group of networks interconnected via routers. Contrast with The Internet (with
I Resource Internet
a capital I), the world's largest Internet.
Management
Human The procedure when two parties are involved in a lawsuit over the right to collect a debt from a third party, who admits the
I Resource Interpleader money is owed but does not know which person to pay. The debtor deposits the funds with the court ('interpleads'), asks the
Management court to dismiss him/her/it from the lawsuit and lets the claimants fight over it in court.
Human
I Resource Interquartile Range Statistics. The range including the central 50% of the observations in a data set.
Management
There are screening interviews and hiring or selection interviews. Screening interviews qualify a candidate before he meets
Human
with a hiring authority for possible selection. Hiring interviews allow the employer to assess the fit of the candidate. The
I Resource Interview
candidate also interviews the employer for job suitability. Most of these interviews take place in an office setting one-on-one or
Management in a small group.
Human
An incentive that originates from the behavior itself rather than from an external reward or reinforcement. Thus, intrinsically
I Resource Intrinsic Motivation
motivated behavior.
Management
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Human
Rewards that are associated with the job itself, such as the opportunity to perform meaningful work, complete cycles of work,
I Resource Intrinsic rewards
see finished products, experience variety, and receive feedback on work results.
Management
Human Invention,
I Resource imagination, Distinguishes from work that primarily depends on intelligence, diligence, and accuracy.
Management originality, or talent
Human
Investigative A special type of credit report, which contains more detail than a routine credit report. For example, it includes information
I Resource
Consumer Report regarding a consumer's character, general reputation, and personal characteristics.
Management
A company or trust managed by investment professionals that invests its capital in other companies for purposes of
Human diversification, the two principal types of which are the closed-end and open-end or mutual fund. Closed-end funds have a fixed
Investment
I Resource
Companies
capitalization, and are usually listed and traded on the New York Stock Exchange like any other security, and may sell at a
Management 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.
Human
Long-term, risk-return targets developed principally from careful consideration of plan sponsor factors, investment factors and
I Resource Investment Managers
a forecast of the future. Critical in the adoption of investment objectives is the asset allocation decision.
Management
Human
Investment Sensitive A form of life insurance (also called Universal Life II or flexible life) offering a guaranteed death benefit that combines the
I Resource
Insurance flexible premium features of universal life with the investment component of variable life.
Management
Human
Investment Year Any dividend calculation method that recognizes differences in earned interest rates depending upon the year in which the
I Resource
Method (IYM) investment is made.
Management
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Human
Involuntary Plan
I Resource
Termination
The termination of a pension plan by a party other than the plan sponsor, generally a governmental organization.
Management
Human
Irrevocable An unalterable beneficiary. The owner gives up the right to change the beneficiary designation without the beneficiary's
I Resource
Beneficiary consent.
Management
Developed by the International organization for Standardization (ISO), it is a set of standards for quality management systems
Human
that is accepted around the world. organizations that conform to these standards can receive ISO 9000 certification. The
I Resource ISO 9000
standard intended for quality management system assessment and registration is ISO 9001. The standards apply uniformly to
Management organizations of any size or description.
Human
A bank that opens a straight or a negotiable letter of credit. This bank assumes the obligation to pay the beneficiary or a
I Resource Issuing Bank
correspondent bank if the documents presented are in accordance with the terms of the letters of Edit.
Management
Human
The total collection of tasks, duties, and responsibilities assigned to one or more positions which require work of the same
J Resource Job
nature and level.
Management
Human The systematic, formal study of the duties and responsibilities that comprise job content. The process seeks to obtain
J Resource Job Analysis important and relevant information about the nature and level of the work performed and the specifications required for an
Management incumbent to perform the job at a competent level.
ERI‘s compensation and benefits accreditaton program. A JCA credential is granted only to those compensation specialists
Human Job and
who have proven their mastery of analytical and quantitative skills by taking 50 ERI courses within a 12-month period and
J Resource Compensation
answering all exam questions with 100% accuracy. This will successfully illustrate mastery of over two dozen different types of
Management Analyst (JCA) mathematical skills and calculations and a thousand compensation and benefit concepts.
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Human
A written description of a job which includes information regarding the general nature of the work to be performed, specific
J Resource Job Description
responsibilities and duties, and the employee characteristics required to perform the job.
Management
Human
J Resource Job Documentation Physical evidence, such as a written contract, which explains the responsibilities, rights, and duties of each party.
Management
Human
J Resource Job Duty Something that you have to do because it is part of your job.
Management
Human
J Resource Job Enlargement The act of increasing in size or volume or quantity or scope.
Management
Human
J Resource Job Enrichment Act of making fuller or more meaningful or rewarding.
Management
Job Entry
Human The education, experience, and performance requirements for entry into a job. ERI software only reports salaries of properly
Requirements / Job
J Resource
Qualifications / Job
qualified and duly licensed practitioners in all occupations. This ERI salary data shows ranges for the very least qualified to the
Management very most qualified job-holders.
Requirements
Human
Used for compensation planning purposes, it is the process of comparing a job with other jobs in an organization to determine
J Resource Job evaluation
an appropriate pay rate for the job.
Management
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Human
Job Evaluation
J Resource
Committee
The committee that conducts the job evaluations.
Management
Human
A group of jobs having the same nature of work (e.g., engineering) but requiring different levels of skill, effort, responsibility, or
J Resource Job Family
working conditions (e.g., entry-level vs. senior engineer).
Management
Human One of the classes, levels or groups into which jobs of the same or similar value are grouped for compensation purposes.
J Resource Job Grade Usually, all jobs in a grade have the same pay range. However, sometimes different jobs in the same pay grade have different
Management pay ranges, due to market conditions for some of the jobs.
Human
A job interview is a process in which a potential employee is evaluated by an employer for prospective employment in their
J Resource Job interview
firm.
Management
Human A job offer letter is a document that confirms the details of an offer of employment. The job offer letter includes details such as
J Resource Job Offer Letter job description, reporting relationship, salary, bonus potential, benefits, and more. The job offer letter generally confirms the
Management terms.
Human
J Resource Job Responsibility Ability or necessity to answer for or be responsible for one's conduct.
Management
Human
J Resource Job Satisfaction The contentment you feel when you have done something right.
Management
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Human
Two people, typically in career-oriented professional positions, performing the tasks of one full-time position in order to enjoy
J Resource Job Sharing
more flexibility in their personal schedules, typically for child or dependent care. Salary and benefits are prorated.
Management
Human A section of the job description that defines what worker characteristics (i.e., the knowledge, skills and abilities) are required to
J Resource Job Specifications perform the job for it to be carried out competently. These characteristics must be bona fide occupational qualifications
Management (BFOQs).
Human
J Resource Job Title A summary for all the duties for a particular job or position.
Management
Human
The perceived value of jobs in relationship to each other within an organization. The job worth hierarchy forms the basis for
J Resource Job Worth Hierarchy
grouping similar jobs together and establishing salary ranges.
Management
Human
Joint And Survivor An annuity that pays an income jointly to two individuals. Upon the death of one, the same income continues to the survivor for
J Resource
Annuities life. When the survivor dies, payments stop.
Management
Human
Joint And Survivor
J Resource
Option
Provides a continued payment to your spouse in the event you die prior to your spouse's death after you retire.
Management
Human
Joint Credit Life
J Resource
Insurance
Is offered to cover the cost of repaying loan obligations in the event of your death.
Management
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Human
An association formed for a specific purpose and duration between two or more parties to own and/or develop real estate. A
J Resource Joint Venture
joint venture may take a variety of legal forms including partnership, tenancy in common or corporation.
Management
Human
Joint Whole Life A life insurance contract that covers two or more lives and provides for the payment of the proceeds at the death of the first
J Resource
Insurance insured, at which time the policy automatically terminates, with no remaining coverage for the survivors.
Management
Bonds that are initially issued as low-quality securities, often in conjunction with takeovers, leveraged buyouts and
Human
restructurings. They offer high interest and high risk. These securities generally lack the characteristics of a desirable
J Resource Junk Bonds
investment. The rights of the bondholder are subordinated to senior debt holders. Assurance of interest and principal payments
Management in the future is limited. Repayment often depends on asset sales rather than on the ongoing profitability of the business.
Human
J Resource Junk Science A scientific opinion or testimony that is irrelevant and unreliable.
Management
Human
Juvenile Insurance
J Resource
Policy
An insurance policy that is issued on the life of a child but is owned and paid for by an adult.
Management
Human
K Resource kaizen The Japanese term for improvement. It involves both workers and managers.
Management
Human The Self-Employed Individuals Tax Retirement Act of 1962 (also called HR-10 or the Keogh Act), and its subsequent
K Resource Keogh Act amendments, made it possible for owner-employees of unincorporated businesses and other self-employed persons to be
Management covered under qualified retirement plans.
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Human
K Resource Keogh Plan A tax deferred pension account available to the self-employed. (4)
Management
A qualified tax-deductible pension or profit-sharing retirement plan for self-employed individuals and their employees, with
Human
Key Contributor contribution units based on net earnings. Disability, health, and/or life insurance policies designed to protect the company for
K Resource
Insurance the loss of the services of essential employees, with premiums paid and benefits received by the company, key man insurance.
Management A type of corporate-owned life insurance purchased by a company to protect itself from financial loss.
Human
K Resource Key Employee A salaried employee who is among the highest paid 10 percent of all the employees employed by the employer.
Management
Human
Kilobits Per Second
K Resource
(Kbps)
Thousand bits per second. A data transfer rate.
Management
Human
K Resource Kilobyte(Kb) One thousand bytes (103) or 1024 (210) bytes. A unit of measurement used for computer file sizes.
Management
Human
Knowledge Based Pay-for-knowledge rewards employees for increasing the depth and breadth of knowledge and skill and the utilization of those
K Resource
Pay skills. Pay-for-knowledge is often an extension of work redesign efforts.
Management
Human
Knowledge Knowledge management is the name of a concept in which an enterprise consciously and comprehensively gathers, organizes,
K Resource
Management shares, and analyzes its knowledge in terms of resources, documents, and people skills.
Management
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Human Knowledge
K Resource Management System A distributed system from Knowledge Systems, Inc. for managing knowledge in organizations.
Management (KMS)
Human
Knowledge, Skills New hires and merit promotions are made on the basis of how applicants measure up to a set of factors, often called
K Resource
And Abilities (KSAS) 'Knowledge, Skills, and Abilities' (KSAs) or 'Knowledge, Skills, Abilities and Other Characteristics (KSAOs).'
Management
Human A system of salary differentiation based on the formal education, related experience or specialized training a professional
Knowledge-based
K Resource
pay
employee has that qualifies the individual to deal with specific subject matter, or work effectively in a specific field. Salary level
Management may not be dependent on whether the incumbent utilizes the knowledge.
Human
‗Knowledge, Skills and Abilities‘ - Key Performance Indicators. Tasks that have been agreed between an employee and line
K Resource KPI‘s
manager/HR with an expectation that they will be completed satisfactorily in the time agreed or as an ongoing task.
Management
Human Common job specifications. Knowledge refers to acquired information necessary to do the job (e.g., principles of nuclear
KSA (Knowledge,
K Resource
skills, and abilities)
physics). Skills refer to acquired measurable behaviors (e.g., autoclave operation). Abilities refers to natural talents or
Management acquired dexterity (e.g., capacity to lift 200 pounds).
Human
L Resource Labor Demand The highest wage an employer is willing to pay for a given level of employment or number of employees.
Management
Human
Labor force
L Resource
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.
Management
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Human
L Resource Labor Grade Salary classification to a specific job title.
Management
Human A place where labor is exchanged for wages. These places are identified and defined by a combination of the following
L Resource Labor Market factors: (1) geography (i.e., local, regional, national, international), (2) industry, (3) education, licensing or certification and (4)
Management function or occupation.
Human
Laissez Faire Tax
L Resource
Policy
A policy to cut taxes.
Management
Human
Last In, First Out Used in inventory accounting terminology to reflect the fact that sales are made against the latest inventory purchases, which
L Resource
(LIFO) tends to minimize inventory profits and losses. Contrast with First In, First Out (FIFO).
Management
Human
Lead Lag Structure The practice of setting salary structures at the beginning of the year, to what the competition would reach at the middle of the
L Resource
Policy year. This is based on competitive information and market research.
Management
Human
The practice of setting salary structures at the beginning of the year- for the entire year. This is based on competitive
L Resource Lead Structure Policy
information and market research.
Management
Human
The process of influencing people while operating to meet organizational requirements and improving the organization through
L Resource leadership
change.
Management
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Human
Leadership Formal and informal training and professional development programs designed for all management and executive level
L Resource
Development employees to assist them in developing the leadership skills and styles required to deal with a variety of situations.
Management
Human
An essential shift or progress of the mind where recreation is evident and enjoins activities such as re-engineering, envisioning,
L Resource learning
changing, adapting, moving into, and creating the future.
Management
Human
L Resource learning curve A curve reflecting the rate of improvement in performing a new task as a learner practices and uses her newly acquired skills.
Management
Human Learning
L Resource Management System A software system that automates the administration of training events.
Management (LMS)
Human
Learning Service
L Resource
Provider (LSP)
Training delivery software on a hosted or rental basis through a specialized ASP offering learning management.
Management
Human A three-party relationship whereby the user business purchases services of a worker, on a more or less full-time basis, from a
L Resource Leased Employees business that pays the worker's salary. Any interrelationship between these parties can lead to an affiliated service group
Management relationship, which is treated separately.
Human
Actual y- values. A line fitted to the points that minimize the sum of the squared deviations of the points. This occurs in
L Resource Least Squares Line
regression analysis.
Management
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Human
L Resource Legislation Law emanating from Parliament in the form of Acts.
Management
Human Level Annual

L Resource Premium Funding The cost of providing a pension where the contributions for any employee remain constant until normal retirement age.
Management Method
Human
Phrases or words used to distinguish the variety of levels in a particular employment arena. (i.e. accounting, senior vs. junior
L Resource Level Cutters
accountant)
Management
Human
L Resource Level Of Work Important information about the content of a job. It will include skill effort, responsibility and working conditions. (9)
Management
Human
Leverage In
L Resource
Financing
A debt to equity ratio is a measure of the entity's leverage.
Management
A qualified stock bonus plan or a qualified stock bonus and money purchase plan. Like a stock bonus plan, the contributions
Human Leveraged Employee need not be dependent on profits, and benefits are distributable in the stock of the employer corporation. Typically, the ESOP
L Resource Stock Ownership is used as a financing vehicle for the employer corporation. The plan borrows money from the employer or uses the employer's
Management Plan (LESOP) credit, and purchases employer stock. The borrowed money is paid to the employer for its stock. The loan is repaid with annual
employer contributions. See also Stock Bonus Plan.
Human
Leveraged Stock An option in which the underlying is the common stock of a corporation. The Company matches a multiple of the stock options
L Resource
Option at the employee's purchase price.
Management
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Human
A financial obligation, or the cash outlay that must be made at a specific time to satisfy the contractual terms of such an
L Resource Liabilities
obligation.
Management
Human
A type of insurance that provides a benefit payable on behalf of a covered party who is held legally responsible (liable) for
L Resource Liability Insurance
harming others or their property.
Management
Human
An insurance solicitor, licensed by the state, who places business with a variety of insurance companies and who represents
L Resource Licensed Broker
the buyers of insurance rather than the companies even though he or she is paid commissions by the companies.
Management
Human
L Resource Lien The right to take and hold or to sell a debtor's property as security or payment for a debt..
Management
Human
L Resource Life Annuity An annuity payable during one's life.
Management
Human
Life Annuity With An annuity payable during one's life. If the insured dies before the designated period of time, the payments will continue to a
L Resource
Period Certain contingent payee.
Management
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
Human
Life Cycle Pension plan, a participant earns credits for each year of service. Age is not directly a factor, except as it pertains to how much service
L Resource
Plan an individual could accrue. The total of these credits is considered a percentage, which is multiplied by the annual final average
Management salary of the participant to determine what lump sum will be paid at retirement. Also known as retirement bonus plan and lump-
sum plan.
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Human
L Resource Life Income Option A life insurance settlement option that guarantees the beneficiary a payout of equal payments as long as the beneficiary lives.
Management
A life insurance settlement option that guarantees the beneficiary designated equal payments for a specified period of time.
Human
Life Income Option Then the beneficiary will continue to pay out the life insurance as long as the beneficiary lives. If the beneficiary dies during the
L Resource
With Period Certain specified period of time, payment will be continued during the rest of the specified time to another recipient designated by the
Management original beneficiary.
Human
Life Income Option A life insurance settlement option that guarantees a total amount due to the beneficiary. If the beneficiary dies prior to the total
L Resource
With Refund pay out amount, the remaining amount will be given to a contingent payee.
Management
Human Life Income With

An annuity payable during one's life. If the insured dies before the designated period of time, the payments will continue to a
L Resource Period Certain
contingent payee.
Management Annuity
Human The act or system of insuring against death, a contract by which the insurer undertakes, in consideration of the payment of a
L Resource Life Insurance 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
Management whose life the insured has an interest.
Human
L Resource Life Insured Canadian term for a person whose life is insured by an insurance company.
Management
Human
L Resource Life Underwriter A sales representative of an insurance company.
Management
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Human
L Resource Life-Only Annuity Payment of an annuity, until the death of the annuitant.
Management
Human
The maximum amount of eligible medical expenses that the medical policy will pay for. This is during the lifetime of the
L Resource Lifetime Maximum
insured.
Management
Human
In the event of a redundancy situation occurring, the system of ‗last in first out‘ is regarded as the most equitable method of
L Resource LIFO
choosing those who should be made redundant.
Management
Human
Limited Coverage
L Resource
Policy
A medical policy that covers only a specific illness, or designated disease. Also called a Dread Disease policy.
Management
Human
Limited-Payment
L Resource
Whole Life Insurance
A life insurance policy that does not require payment during the entire lifetime of the insured.
Management
Human
L Resource Linear Regression The relation between variables when the regression equation is linear, e.g., y = ax + b
Management
Human
L Resource Linear Relationship A situation in which the relationship between an x-variable and a y-variable can best be described by a straight line.
Management
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Human
L Resource Linear Scales Lines on which equal distances between increments represent equal intervals between increments.
Management
Human
A link generally refers to any highlighted words or phrases in a hypertext document that allow you to jump to another section of
L Resource Link
the same document or to another document on the World Wide Web.
Management
Human
L Resource Liquidity Being in cash or easily convertible to cash.
Management
Human
The heart of an electronic mailing list, Listserv software automatically subscribes and unsubscribes list members and sends
L Resource Listserv
copies of every e-mail message to every list subscriber.
Management
Human
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
L Resource Living Benefit Rider
of terminal illness.
Management
Human
L Resource Living Wage A wage sufficient for a worker and family to subsist comfortably.
Management
Human
Local Area Network An acronym for Local Area Network, LAN refers to a local network that connects computers located on the same floor or in the
L Resource
(LAN) same building or nearby buildings.
Management
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Human
Employees hired by a local subsidiary or branch in the country of operation. Usually nationals of that country but may be
L Resource Local National
citizens of any country.
Management
Human
L Resource Localization To become local, especially to become fixed in one area or part.
Management
Human
Location Selling Also known as Retail Outlet Distribution System. A system of selling insurance products in high traffic consumer locations. I.e.
L Resource
Distribution System department stores, grocery stores, and banks.
Management
Human
Premium payments are received at a post office box. The insurer allows the bank to have access to the post office box. The
L Resource Lock Box Banking
bank opens all the mail, and deposits the premium. The bank sends receipts of all transactions to the insurer.
Management
Human
L Resource Log In / Log On To access a network or remote system. Logging on often requires a password.
Management
Human
L Resource Log Off To exit a network or remote system.
Management
Human
One of a class of auxiliary numbers, devised by John Napier, of Merchiston, Scotland (1550-1617), to abridge arithmetical
L Resource Logarithm
calculations, by the use of addition and subtraction in place of multiplication and division.
Management
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Human
A calculation under which the x-variable is transformed into logarithms. The equation is y = a + blogx. It is used to describe
L Resource Logarithmic Model
certain nonlinear relationships, where y increases at an ever-decreasing rate as x increases.
Management
Human
L Resource Logarithmic Scales Scale on which actual distances from the origin are proportional to the logarithms of the corresponding scale numbers.
Management
Human Long Form

A reinstatement application. This application is used if the policy has lapsed for a specific reason, and the policyholder would
L Resource Reinstatement
like to reinstate the policy.
Management Application
Human
L Resource Long-Term Bonus An income stream in the form of a bonus. It is a form of deferred compensation.
Management
Human A product designed to provide coverage for necessary diagnostic, preventative, therapeutic, rehabilitative, maintenance, or
L Resource Long-Term Care 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
Management own home. Also known as LTC insurance.
Long-term compensation is generally any cash compensation paid for work/services from prior to last year per a multi-year
Human
Long-Term contract or other extended pay agreement. Typical examples of long-term compensation include the current year‘s cash
L Resource
Compensation payouts for the third installment of a five-year incentive plan or current cash paid pursuant to a deferred compensation
Management agreement in which an employee might receive 10% of last year‘s bonus this year (and each of the next nine years).
Human
Also known as liabilities. These are often divided into current liabilities, which are due within a year of the date entered on the
L Resource Long-Term Debt
balance sheet and non-current liabilities, which are due more than a year after the date on the balance sheet.
Management
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Human
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
L Resource
Income Insurance are paid weekly or monthly and determined at a percentage of the insured's past earnings, normally 60 to 70%.
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
Human 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
L Resource 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
Management 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 short-
term 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
Long-Term Incentive An incentive plan typically limited to executives. It requires a level of performance for a predetermined amount of time, for the
L Resource
Plan maximum benefit to the employee.
Management
Human
Long-Term Income
L Resource
Protection
Insurance plans that provide financial protection in the event of retirement, disability, and financial security for family needs.
Management
Human
An insurance policy that covers the incident of accidental loss of limbs. See also Accidental Death &Dismemberment (AD&D)
L Resource Loss Of Limbs
insurance.
Management
Human
L Resource Loss Ratio The ratio of paid and incurred claims plus expenses to premium.
Management
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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
Human she has suffered as a direct result of defendant's wrongdoing. Generally, testimony of a medical expert may be needed to
L Resource Lost Wages prove the reason and type of disability preventing the plaintiff from earning his or her regular wages. Proof of the wages
Management 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
The intangible bond based on a legitimate obligation; it entails the correct ordering of our obligations and commitments. Loyalty
L Resource loyalty
demands commitment to the organization and is a precondition for trust, cooperation, teamwork, and camaraderie..
Management
Human
L Resource Lump Sum Bonus An award that is paid in a single cash payment.
Management
Human
Lump Sum
L Resource
Distributions
A payment of the entire amount to the employee from a qualified retirement plan within one tax year. (4)
Management
Human
Lump Sum Incentive
L Resource
Award
An incentive award that is paid in a single cash payment.
Management
Human
L Resource Lump Sum Increase An increase in pay made in the form of one large payment.
Management
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Human
L Resource Lump Sum Merit Merit pay in the form of one lump sum cash payment. This is separate from the base pay.
Management
Human
A fixed negotiated payment which is not typically included in an employee‘s annual salary. Often times given in lieu of pay
L Resource Lump sum payment
increases.
Management
Human
A method of determining expatriate employee compensation. In this approach, a lump sum is provided to an expatriate to
L Resource Lump Summing
spend as he or she wishes. It can be broken into lump sums for pre-departure, at the post, and repatriation.
Management
Human
L Resource 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.
Management
Human
Visiting an online discussion and reading other people's comments without contributing. Lurking is a good way for a beginner to
L Resource Lurking
get familiar with a newsgroup or forum.
Management
Human
L Resource Luxury Automobiles A luxury automobile is defined by the IRS as one with a fair market value of more than a certain amount.
Management
Human
Major Medical
M Resource
Insurance
A type of supplementary insurance, in addition to basic medical insurance, to provide for the costs of a major illness or injury.
Management
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Human
M Resource Major Services Relates to dental insurance for services that are the most costly.
Management
Human
M Resource Managed Care A method by which insurance carriers attempt to manage healthcare costs by utilizing a pre-selected panel of physicians.
Management
Human
Managed Health
M Resource
Care
A healthcare approach that delivers medical services while controlling cost and quality.
Management
Management by
Human
Coaching and
M Resource
Development
Managers see themselves primarily as employee trainers.
Management
(MBCD)
Human Management by
M Resource Competitive Edge Individuals and groups within the organization compete against one another to see who can achieve the best results.
Management (MBCE)
Human
Management by
M Resource
Consensus (MBC)
Managers construct systems to allow for the individual input of employees.
Management
Human Management by
M Resource Decision Models Decisions are based on projections generated by artificially constructed situations.
Management (MBDM)
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Human
Management by Managers delegate as much responsibility and activity as possible to those below them, stepping in only when absolutely
M Resource
Exception (MBE) necessary.
Management
Human Management by
M Resource Information Systems Managers depend on data generated within the company to help them increase efficiency and inter-relatedness.
Management (MBIS)
Human Emphasizes communication and balance of male/female energy as well as integration of all human aspects (mental,
Management by
M Resource
Interaction (MBI)
emotional, physical and spiritual), creating an empowered, high-energy, high-productive workforce. [Management style
Management developed by Barbara Taylor and Michael Anthony]
Human
Management by
M Resource
Matrices (MBM)
Managers study charted variables to discern their inter-relatedness, probable cause and effect, and available options.
Management
Human
Management by
M Resource
Objectives (MBO)
A process by which management and employees set specific goals with feedback on goal progress.
Management
Management by
Human
Organizational
M Resource
Development
Managers constantly seek to improve employee relations and communications.
Management
(MBOD)
Human
Management by
M Resource
Performance (MBP)
Managers seek quality levels of performance through motivation and employee relations.
Management
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Human
Management by
M Resource
Styles (MBS)
Managers adjust their approaches to meet situational needs.
Management
Human Management by Managers walk around the company, getting a 'feel' for people and operations; stopping to talk and to listen. Sometimes
M Resource Walking Around known as Management by Walking Around and Listening (MBWAL). This management style is based on the HP Way
Management (MBWA) developed by entrepreneur Dave Packard, co-founder of Hewlett-Packard.
Human Management by
M Resource Work Simplification Managers constantly seek ways to simplify processes and reduce expenses.
Management (MBWS)
Human
Managing General An independent contractor that appoints personal general agents on behalf of an account, and who might represent numerous
M Resource
Agent (MGA) accounts.
Management
Human
M Resource Mandatary A person that receives a mandate.
Management
Human
M Resource Mandated Benefits Non-cash benefits that are required by state law to be covered by an insurance carrier.
Management
Human
M Resource Mandator An individual who hires another to carry out the command or wishes of a mandate.
Management
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Human Mandatory Mandatory Continuing Legal Education (also known as MCLE) are annual educational requirements for legal professionals.
M Resource Continuing Education MCLE credits are governed by various related State Boards. Approximately 1/2 of all U.S. states have these annual
Management (MCLE) requirements. The www.eridlc.com website refers to legal continuing education credit as CLE.
Human Mandatory
M Resource Continuing Legal Annual educational requirements for legal professionals. MCLE credits are governed by various related State Boards.
Management Education (MCLE)
Human Mandatory Securities

M Resource Valuation Reserve A liability account that is supposed to incorporate realized and unrealized capitol gains and losses resulting from investments.
Management (MSVR)
Human
M Resource Manual Rates A premium rate based on claims experience of an average group.
Management
Human
M Resource Margin An error factor, usually a percentage of premium, margin is used by underwriters to set risk.
Management
Human
M Resource Marginal Tax Rate The tax rate paid on the last dollar of income.
Management
Human
M Resource Market Adjustment The percentage increase to organization, group or individual pay that is necessary to adjust it to the estimated market level.
Management
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Human
Market Based Salary
M Resource
Increase Budget
An organizations budget to increase salaries that is estimated by their knowledge of the competition.
Management
Human
M Resource Market Basket A combination of goods and services used to calculate a consumer price index.
Management
Human
M Resource Market Capitalization The result of multiplying the number of outstanding shares by the price per share.
Management
Human
M Resource Market Compa-Ratio The comparison of internal pay to competitive pay of a company or individual.
Management
Human
M Resource Market Cycle A description of the various stages of a product or company as it growths or declines.
Management
Human
An index that is used to calculate an individual or groups market pay by dividing the current pay of an individual by the market
M Resource Market Index
pay.
Management
Human
The technique of creating a job-worth hierarchy based on the ―going rate‖ for benchmark jobs in the labor market(s) relevant to
M Resource Market Pricing
the organization. Non-benchmark jobs are slotted into the structure based on whole job comparison.
Management
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Human
M Resource Market Rates An organization's determination of rates for wages that are typical for a specific occupation.
Management
Human
M Resource Master Contract A legally binding agreement between and insurance company and the policy holder, usually an organization.
Management
Human A defined benefit or defined contribution plan, such as pension or other employee benefit plan, that has been developed by a
M Resource Master Plan sponsoring organization and that provides a single trust account in which all adopting employers must invest their plan
Management contributions. The sponsoring organization must have the plan approved by the Internal Revenue Service.
Human
Matching Contributions that are made to an employee's 401K plan by their employer. The intent is to match the employee contribution to
M Resource
Contributions a pre-set dollar or percentage maximum.
Management
Human
M Resource Material Fact In the insurance industry a fact that is considered applicable to an underwriter when considering rating or issuing a policy.
Management
Human In the insurance industry any incorrect, misleading or false statement(s) by the applicant that would cause the insurer to accept
Material
M Resource
Misrepresentation
this individual as a risk, when under truthful circumstances the insurer may have accepted the risk under other provisions, or
Management may have declined the policy.
Human
In accounting, this idea represents that that relevant information concerning monetary transactions and/or condition of the
M Resource Materiality
organization it to be reported and explained separately.
Management
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Human
M Resource Matrix organization An organizational structure where employees report to more then one manager or supervisor.
Management
Human
Matters of
M Resource
Significance
Refers to the level of importance or consequence of the work performed.
Management
Human
M Resource 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.
Management
Human A process of determining employees‘ salaries as a function of years from the time of the first degree earned. Maturity curves
M Resource Maturity Curve are most commonly used for pricing jobs in lieu of relying on job evaluation techniques. The process assumes that years in the
Management profession equate with more highly valued competencies.
Human
In the U.S., the highest lifetime or annual benefit amount that can be paid by a qualified defined benefit plan to a plan
M Resource Maximum Benefit
participant legally. (Canada) The highest amount an insured may receive under an insurance plan.
Management
Human
Maximum Benefit
M Resource
Period
The longest amount of time that a disability insurance plan will continue to provide disability income payments.
Management
Maximum Benefits
Human
For Related A limitation that is found within policies that refer to all hospital stays and all surgeries that are completed within a period of
M Resource
Confinements sickness or a surgery.
Management
Provision
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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
Human Maximum
bonus, which would be allowable to be used as a business expense for services rendered in comparable circumstances.
M Resource Reasonable
Based on IRS cases, ERI developed the definition in terms of the standard error of the distribution of compensation for
Management Compensation 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.
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
Human expect to find very few people still performing the same job. This maximum years figure is the top number of years that
Maximum Years of
M Resource
Experience
accurately and reliably predicts pay differentials. The pay of those few who hold this job beyond the maximum year is not
Management 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.
The McCarran Ferguson Act allows employers to not include certain time and activities of employees, prior to and/or after
Human
McCarran Ferguson work, as "work time." These activities are ones that are not required in order to accomplish the job. The most common of these
M Resource
Act is the time taken to commute to work. Examples of types of activities other than commuting that are non-compensable are:
Management waiting to check in at the beginning of a workday or waiting in line for a paycheck at the conclusion of a shift.
Human
M Resource Mean A mean is the result of dividing the sum of two or more quantities by the number of quantities. See AVERAGE.
Management
Human
One type of norm measure found by arranging the values in order and then selecting the one in the middle. Therefore, half of
M Resource Median
the numbers are less than the median, and half are higher than the median.
Management
Human
Median - Grouped
M Resource
Data
A special quantitative analysis technique is useful when analyzing a group of data in a frequency distribution.
Management
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Human
M Resource Mediation Services The process of intervention by a specialist in an employment dispute. Provided under the Employment Relations Act 2000.
Management
Human
An insurance plan funded by the government that provides medical coverage to individuals under age 65 who are low wage
M Resource Medicaid
earners, and/or meet other criteria.
Management
Human
An application for medical insurance which also include a medical exam for which the results are reported the insurance
M Resource Medical Application
company.
Management
Human
Medical Expense
M Resource
Insurance
A type of insurance plan designed to pay for various medical expenses.
Management
Human
Medical Information An organization that provides fraud protection from those that would try to hide or omit information when applying for various
M Resource
Bureau (MIB) insurance coverage.
Management
Human
Medical Necessity A provision in most medical insurance plans that states that a medical service must be prevent harm to the patient or an
M Resource
Provision adverse effect on the patient's quality of life, and in addition cannot be experimental in nature.
Management
Human
A report on a potential insured's health based on physical examination and questions by a physician for the purpose of a
M Resource Medical Report
medical application.
Management
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Human Medical Savings

A savings account that can be used to pay for medical expenses that are not covered by insurance. The employee
M Resource (Spending) Account
contributions to the plan are tax-deductible.
Management (MSA)
A medical plan that is available to those over age 65 and those with specific disabilities via the U.S. government through the
Human
Social Security Administration. There are two plans available through Medicare. Part A, provides for inpatient hospital services
M Resource Medicare
and post-hospital care. Part B, pays for medically necessary doctors' services, outpatient hospital services and a number of
Management other medical services and supplies not covered under Medicare Part A.
Human
M Resource Medicare Risk HMO An option to replace the traditional Medicare plans A and B with an HMO plan that is approved by Medicare.
Management
Human
Medicare Secondary These rules determine when an employer, group medical insurance plan, would cover medical claims first. Amounts not
M Resource
Payor Rules covered by the employer's plan can then be submitted to Medicare.
Management
Human
M Resource Medicare Supplement An insurance option available to Medicare eligible individuals to cover expenses that are not covered by Medicare.
Management
Human
M Resource Mental Health In medical insurance these benefits are related to emotional problems and sometime substance abuse issues.
Management
Human Insurance plans that provide mental health benefits are not allowed to impose lifetime or annual dollar limits for mental health
Mental Health Parity
M Resource
Act Of 1996
benefits that are less than those imposed on medical or surgical benefits. Substance abuse treatment is not included in these
Management guidelines.
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Human
A one-to-one process between an outside trainer and an employee, whereby the former will ‗train‘ the latter. See also
M Resource Mentoring
Coaching.
Management
Human
M Resource Merger The combining of two or more entities into one, therefore all administration is under one corporation.
Management
Human
M Resource Merit Bonus An incentive award based upon an individual's performance.
Management
Human
M Resource Merit Increase An increase to an individual‘s base pay rate based on performance.
Management
Human
M Resource Merit Matrix A process by which an individuals salary increase is determined by using performance and pay within the salary range.
Management
Human
M Resource Merit Pool Total amount of dollars available for salary increases.
Management
Human
M Resource Merit Progression A process by which an employee progresses through a wage range due to performance or other measurable criteria.
Management
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Human
A method for appraising the performance of an employee with respect to his or her job. It frequently serves as a basis for
M Resource Merit Rating
making pay adjustments, promotion decisions, or work reassignments.
Management
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
Human Metropolitan
Areas (CMSA's), the component metropolitan areas are designated Primary Metropolitan Statistical Areas (PMSA's).
M Resource Statistical Areas
Metropolitan areas that are not combined to form CMSA's are designated Metropolitan Statistical Areas (MSA's). More
Management (MSA) information on metropolitan areas is available from the U.S. Census Bureau website:
www.census.gov/population/www/estimates/metroarea.html.
Human
M Resource Midpoint The salary that represents the middle of a given salary range or pay grade.
Management
Human The difference in wage rates paid between two adjacent grades, usually defined as the difference in the midpoints of the two
M Resource Midpoint Progression adjacent grades. A midpoint progression is calculated by taking the difference between two adjacent midpoints as a
Management percentage of the lower of the midpoints.
Human A salary payment agreement between an employee and employer when the employee is involved in such temporary duties as
Military Service
M Resource
Payments
the National Guard or Reserve. The arrangement may include the employer paying full regular salary or the difference between
Management that when involved in active status and regular duty.
Human
The federal law states the minimum age for employment is 17, however a minor under the age of 17 may also work if the
M Resource Minimum Age
conditions of the occupation meet certain criteria and are not dangerous.
Management
Human
Minimum Age A requirement in planning pensions that an employee must be a certain age prior to being permitted to participation in the
M Resource
Requirement employer's pension plan.
Management
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Human Minimum Continuing

M Resource Legal Education Annual educational requirements for legal professionals. MCLE credits are governed by various related State Boards.
Management (MCLE)
Human
Minimum Deposit
M Resource
Arrangement
An agreement where an insured can apply the first year cash value to the initial premium amount.
Management
Human
Minimum Deposit 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
M Resource
Business policy owner if the cash value is not enough.
Management
Human
Minimum Distribution When an employee reaches the age of 70.5 a minimum distribution is required. The amount is determined by the amount in
M Resource
Rules the employee's account and the employee's life expectancy.
Management
Human Minimum
M Resource Participation A rule that requires all plans to have at least 50 employees or 40 % of the total employees enrolled.
Management Requirements
Human
Minimum Premium A health insurance plan that is partly self -insured by the employer, however is fully administered by the insurance carrier. The
M Resource
Plan (MPP) employer pays all claims up to an agreed amount, and the carrier pays the rest.
Management
Human
Minimum Service Certain insurance plans require a that an employee wait a specific period of time before they are eligible to participate in the
M Resource
Requirement particular plan.
Management
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Human
M Resource Minimum wages The lowest level of earnings of employees set by Government.
Management
Human
M Resource Minor Laws regarding work hours, work conditions and occupations for certain ages under 18 years of age.
Management
Human
To be dishonest and provide false information to sell insurance plans. To be dishonest and provide false information when
M Resource Misrepresentation
applying for insurance.
Management
Human
M Resource Mission Statement A statement illustrating who the company is, what the company does, and where the company is headed.
Management
Human
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
M Resource
Provision age on the application, and resulted in incorrect premium being charged for the amount of insurance that the insured received.
Management
Human
M Resource Mix An outline of parts of pay generally stated in percentages of a total amount.
Management
Human
M Resource Mode In a set of observations the worth that is most prevalent.
Management
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Human
Mode Of Premium
M Resource
Payment
The frequency that premiums are paid.
Management
Human
(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
M Resource model
most important variables in the system in such a way that analysis of the model leads to insights into the system.
Management
Human
M Resource 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.
Management
Human Model Life Insurance In a 1976 a regulation that was implemented by the NAIC that states insurance companies are to provide information detailing
M Resource Solicitation what life insurance plan may best suit their needs, an understanding of the plan provisions, and the ability to conduct an
Management Regulation analysis of various plans.
Model Rules
Human
Governing The
M Resource
Advertisement Of Life
Life insurance guidelines set by NAIC regarding advertising for annuity contracts and life insurance.
Management
Insurance
Human
Model Unfair Trade
M Resource
Practices Act
A NAIC law that contains prohibition against any form of insurance advertisements that are misleading, untrue or deceptive.
Management
Human
Modified Net
M Resource
Premiums
Premiums that are net rather than level.
Management
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Human A version of a whole life insurance policy where the insured pays less premium than usual for an agreed upon amount of time.
Modified-Premium
M Resource 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.
Management
Human
M Resource Money Market Fund A mutual fund that only makes investments in money markets.
Management
Human
Money Purchase A kind of defined contribution plan that utilizes a formula to determine the employer's contribution to the employees account.
M Resource
Plan The formula and contribution are not related to profitability.
Management
Human
Monthly Debit
M Resource
Ordinary Insurance
Ordinary life insurance that is paid for in monthly premium payments, typically paid directly to the agent.
Management
Human
The risk that a potential insured might purposefully try to hide or falsify information that would affect the underwriter's decision
M Resource Moral Hazard
to accept the risk of insuring this individual.
Management
Human
M Resource morale The mental, emotional, and spiritual state of an individual.
Management
Human
M Resource Morbidity A diseased state. The occurrence of disease, or of all diseases in a population.
Management
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Human
The chance that an individual at a certain age will become ill or disabled. In health insurance a persons premium is somewhat
M Resource Morbidity Rate
based on the morbidity rating for their specific age group.
Management
Human
M Resource Morbidity Table A chart that indicates the prevalence of illness among various age groups.
Management
Human
The cost that is charged for the insurance protection element of a universal life insurance policy. The cost takes into account
M Resource Mortality Charge
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.
Management
Human
M Resource Mortality Curve A graph that depicts the change in mortality rates throughout life.
Management
Human
Several definitions: 1) The rate that participants in a pension plan have died. 2) The effect of actual deaths while on the plan
M Resource Mortality Experience
that then has a financial effect for the plan.
Management
Human
The frequency that death occurs among a specific group of people. The premium paid for a life insurance policy is partly
M Resource Mortality Rate
established by the mortality rate by that person's age.
Management
Human
M Resource Mortality Table Actuarial tables used in the insurance industry to predict the life expectancy and the death rates for various types of people.
Management
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Human Mortgage
A decreasing term insurance plan that insures the life of a person that takes out a mortgage. The policy proceeds will estimate
M Resource Redemption
the rest of the mortgage in the event of death.
Using an individuals wants and needs to influence how the person thinks and what does. Motivating embodies using
Human
appropriate incentives and methods in reinforcing individuals or groups as they effectively work toward task accomplishment
M Resource motivating
and resolution of conflicts / disagreements. Coupled with influence, motivating actively involves empowering junior leaders and
Management workers to achieve organizational goals and properly rewarding their efforts as they achieve the goals.
Human
The reason(s) why a person works at a particular job and for a particular organization. Subject to various theories relating to
M Resource Motivation
the way they do things.
Management
Human
M Resource Motivational theories An attempt to explain how people are motivated, in the form of work behavior and performance.
Management
Human
Moving And These expenses are paid for up front or reimbursed to an employee by the employer when the company needs to have that
M Resource
Relocation Expenses employee's skills utilized in another location.
Management
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
Human
combined to form Consolidated Metropolitan Areas (CMSA's), the component metropolitan areas are designated Primary
M Resource MSA
Metropolitan Statistical Areas (PMSA's). Metropolitan areas that are not combined to form CMSA's are designated Metropolitan
Management 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
Multi-Company
M Resource
Representation
A life and health insurance agent is permitted to represent more than one insurance company.
Management
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Human
M Resource Multi-Employer Plan A employee benefit plan or pension plan that that has more than one employer.
Management
Human
M Resource Multinational Pooling An arrangement that links together the benefit plans of a multinational company.
Management
Human
Multiple Employee An employee benefit plan that is maintained by two or more employer groups to provide health and welfare benefits to the
M Resource
Welfare (MEWA) employees.
Management
Human
Multiple Employer Group benefit plans that cover medical, dental and pension plans, typically for smaller employers, that have joined together
M Resource
Trust (MET) under one master policy.
Management
Human
Multiple Line Agency Full-time agents that sell life and health, and property and casualty insurance to groups of financially related or managed
M Resource
System (MLA) companies.
Management
Human
Mutual Insurance
M Resource
Company
An insurance company that is owned by individual or group policyholders, not stockholders.
Management
Human
M Resource Mutualization The process that occurs while a stock insurance company changes to a mutual company.
Management
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Human
Myers-Briggs Type
M Resource
Indicator
A psychological test used to assess an individuals personality type.
Management
Human
Naic Model Privacy A bill written by the National Association of Insurance Commissioners that set guidelines for data provided to or by insurance
N Resource
Act agents, institutions and support organizations.
Management
Human The North American Industry Classification System was developed by the United States, Canada, and Mexico to provide
N Resource NAICS comparable statistics of industrial production across the three countries and replace SIC. NAICS also provides for increased
Management comparability
Human
N Resource Named Individuals Based on SEC requirements, these persons have their compensation listed in the company proxy statement.
Management
National Association
Human
Of Insurance The primary responsibility is to protect the interests of consumers that are covered or considering buying insurance. The NAIC
N Resource
Commissioners helps state regulators in that respect.
Management
(NAIC)
Human National Association

A voluntary self-regulated securities organization responsible for the operation and regulation, including fair and ethical
N Resource Of Securities Dealers
practice, of the NASDAQ stock market and over-the-counter markets.
Management (NASD)
National Association
Human
Of Securities Dealers
N Resource
Automated Quotation
An organization that helps in stock trading, via a computerized system, for listed and over the counter stocks.
Management
System (NASDAQ)
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Human
National Average
N Resource
Earnings (NAE)
A measurement, per individual country, of the average salary per individual.
Management
Human
National Brokerage
N Resource
Houses
Companies that provide individualized employee benefit and risk management advice to their clients.
Management
Human National Committee An independent group that reviews quality of care and other procedures of managed care organizations to render an
N Resource For Quality accreditation. NCQA developed the Health Plan Employer Data and Information Set (HEDIS), which is used as part of the
Management Assurance (NCQA) accreditation process.
Human National A survey of salaries, wages, and benefits produced by the U.S. Bureau of Labor Statistics. Includes local, regional, and
N Resource Compensation nationwide data. The NCS is designed to replace the Employment Cost Index (ECI), the Occupational Compensation Survey
Management Survey (NCS) Program (OCSP), and Employee Benefits Survey (EBS).
Human National Labor

A federal law giving employees the right to self-organize unions, bargain collectively through representatives of their own
N Resource Relations Act Of
choosing.
Management 1935 (Wagner Act)
Human National Labor

A board of members who administer the Wagner and the Taft-Hartley Acts. The board determines bargaining agents,
N Resource Relations Board
bargaining units and adjudicates unfair labor practice charges.
Management (NLRB)
National
Human
Occupational The Canadian labor market classification system for jobs. Includes coding for duties, skills, interests, aptitudes, education
N Resource
Classification System requirements, and work settings.
Management
(NOC)
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National Organization
Human Of Life And Health
A voluntary association of life and health guaranty associations that resolve issues and problems for policyholders in the event
N Resource Guaranty
of a life and health insurance company insolvency.
Management Associations
(NOLHGA)
Human National Technical

N Resource Information Service This U.S. government agency is responsible for the SIC (Standard Industrial Classification) manual.
Management (NTIS)
Human
N Resource Nature Of Work Information about a specific occupation that describes the duties and responsibilities.
Management
Human The National Compensation Survey is the U.S. government's survey of salaries, wages, and benefits produced by the U.S.
N Resource NCS Bureau of Labor Statistics. Includes local, regional, and nationwide data. The NCS is designed to replace the Employment Cost
Management Index (ECI), the Occupational Compensation Survey Program (OCSP), and Employee Benefits Survey (EBS).
Human
N Resource NEC Stands for: not elsewhere classified.
Management
Human
N Resource Needs Analysis Discovering facts about a potential client to assist in determining their insurance needs.
Management
Human
When the cost of goods and housing are more expensive in an employees home country than those of the assigned temporary
N Resource Negative Differential
location.
Management
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Human
Negotiated
N Resource
Trusteeship
When collective bargaining results in an agreement between a union and an employer to provide the organization insurance.
Management
Human
N Resource Negotiation The process of discussion with a view to mutual settlement usually by the means of a conference.
Management
Human
N Resource Nepotism Favoritism shown to relatives by individuals in a position of authority such as CEO‘s, managers or supervisors.
Management
Human
N Resource 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.
Management
Human
Net Asset Value
N Resource
(NAV)
The dollar value or purchase price of a single stock in a mutual fund.
Management
Human
N Resource Net Assets Total assets minus total liabilities.
Management
Human
N Resource Net Cost A figure to describe the cost of individual insurance.
Management
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Human
N Resource Net Income After Tax An individuals or company's profit after taking into consideration all other expenses and income and taxes.
Management
Human
N Resource Net Loss An individuals or company's loss after taking into consideration all other expenses and income and taxes.
Management
Human
N Resource Net Premium In life insurance it is the amount of money necessary to provide benefits.
Management
Human
Net Present Value
N Resource
(NPV)
The current worth of an investment's future net cash flows minus the initial investment.
Management
Human
N Resource Net Sales Total sales less any returns and discounts.
Management
Human
N Resource Net Worth Complete assets less complete liabilities.
Management
Human Networking is building a web of interpersonal relationships for mutually beneficial purposes such as business referrals,
N Resource Networking customer acquisition, complementary product offerings, and sharing information. Networking means establishing, maintaining
Management and utilizing contacts made for purposes beyond the reason for the initial contact.
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New employee orientation is the process for welcoming a new employee into your organization. New employee orientation,
Human
New Employee often spearheaded by a meeting with the Human Resources department, generally contains information about safety, the work
N Resource
Orientation environment, the new job description, benefits and eligibility, company culture, company history, and anything else relevant to
Management working in the new company.
Human
New York Stock
N Resource
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.
Management
Human Newborns' and Mothers' Health Protection Act of 1996 (NMHPA) is part of the Mental Health Parity Act and states that group
N Resource NMHPA health plans cannot restrict the length of any hospital stay that relates to childbirth for the newborn or mother to less than 48
Management hours for a normal vaginal delivery or 96 hours for a Caesarean delivery.
Human
N Resource No Correlation A relationship where there is no pattern.
Management
Human
The National Occupational Classification System is the Canadian labor market classification system for jobs. Includes coding
N Resource NOC
for duties, skills, interests, aptitudes, education requirements, and work settings.
Management
Human
In group insurance, the maximum dollar amount that an insurance company will insure an individual for without requiring
N Resource No-Evidence Limit
evidence of insurability. May also be referred to as guaranteed issue.
Management
Human
N Resource No-Load Fund A mutual fund in which no commissions are paid if the purchaser buys direct from the fund.
Management
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Human
Nominal
N Resource
Measurements
These measurements use numbers as an identifier.
Management
Human
N Resource Non Admitted Assets The assets that are restricted from being added to a life insurance company's balance sheet.
Management
Human
Non Admitted
N Resource
Reinsurer
In a certain jurisdiction, a reinsurer who is not licensed to accept reinsurance.
Management
Human
Non Compete A condition of an employment contract that states a specific time period that the employee cannot compete with the employer if
N Resource
Agreements the employee is terminated.
Management
Human
N Resource Non Current Assets An asset that is not easily changed to cash or not anticipated to become cash within a year.
Management
Human
Non Current
N Resource
Liabilities
A debt that is not due to be paid within the next year.
Management
Human A stock-option that is part of a compensation package that does not meet the IRS guidelines for a qualified stock option. The
Non Statutory Stock
N Resource
Option (NSO)
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
Management the value of the option in unknown. These options are typically offered to executives.
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Human Non-Cancelable And

N Resource Guaranteed A health insurance policy for an individual that states the premium cannot be increased and the benefits cannot be terminated.
Management Renewable Policy
Human
N Resource Noncash Incentives Incentives that are not a direct cash payment, such as comp time, a membership to a club and a reserved parking space.
Management
Human
Noncontributory A term used when discussing employee benefit plans under which the employer pays, or contributes, the entire cost of the
N Resource
Benefit Plan premium for benefits for the employees.
Management
Human Noncontributory
A term used when discussing employee benefit plans under which the employer pays, or contributes, the entire cost of the
N Resource Organization
premium for benefits for the employees.
Human
Nondiscrimination An Internal Revenue code that states employee benefit plans are not to provide significantly greater benefits to higher paid
N Resource
Rules employees and owners than to lower paid employees.
Management
Human A kind of coordination-of-benefits provision under which the insured's secondary insurance plan pays the difference, if any,
Non-Duplication Of
N Resource
Benefits
between the amount paid by the primary plan and the amount that would have been payable by the secondary plan had that
Management plan been primary.
Human Any employer contribution, that is not a matching contribution, for which the employee may choose to have the contribution
Nonelective
N Resource
Contributions
paid to the employee in cash in lieu of being contributed to the plan and, the contributions are not forfeitable when made and
Management cannot be withdrawn prior to reaching certain conditions.
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Human
Nonexclusive
N Resource
Territory
An arrangement in which several agents can represent one insurer.
Management
Human Nonexempt
N Resource Employees / Non- Employees who are subject to the minimum wage and overtime pay provisions of the Fair Labor Standards Act.
Management exempt Employee
Human
N Resource Nonfinancial Rewards Any recognition given to an employee by an employer other than cash.
Management
Human
N Resource Nonforfeiture Factors Values that are similar to annual premiums that insurers may use to calculate policies cash values.
Management
Human
N Resource Nonforfeiture Values The benefits that a life insurer guarantees to the policy holder if the policy holder discontinues premium payments.
Management
Human
N Resource Nonforfieture Options Different options that a policy holder has if a life insurance policy lapses to apply the cash value of that policy.
Management
Human
N Resource Nonimmigrant Visas Under specific circumstances, a visa will allow a non U.S. citizen to work in the United States.
Management
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Human
Non-Insured Pension
N Resource
Fund
A pension fund that has not been funded by insurance contracts.
Management
Human
Nonmedical
N Resource
Application
An application for insurance that does not require the applicant to submit to a medical examination.
Management
Human
N Resource Nonmonetary Awards An award that is not cash.
Management
Human
Nonparticipating
N Resource
Policy
An annuity or life insurance policy that the policy holder does not receive dividends.
Management
Human
N Resource 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.
Management
Human Nonqualified
Typically used for senior executives and highly compensated employees, this retirement income plan does not meet the
N Resource Deferred
guidelines for a qualified plan, therefore they do not meet the criteria to be eligible for the tax advantages of a qualified plan.
Management Compensation Plan
Human
Nonqualified Foreign
N Resource
Plan
A foreign plan that is no longer qualified due to termination or reversal of a section 404A election.
Management
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Human
Nonqualified Pension A pension plan that does not meet IRS requirements, or receive the positive tax benefits, due to the increased benefits
N Resource
Plan compared to what is allowable of a qualified plan.
Management
Human A stock-option that is part of a compensation package that does not meet the IRS guidelines for a qualified stock option. The
Non-Qualified Stock
N Resource
Options
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
Management the value of the option in unknown. These options are typically offered to executives.
Human
Nonquantitative job A method that creates job worth hierarchy based on the perceived value of the ―whole job,‖ but does not utilize quantitative
N Resource
evaluation methods. Examples include classification, ranking, and slotting.
Management
Human
N Resource Nonrandom Sampling A sampling that has not used a random selection.
Management
Human
N Resource Nonresident License The license gives the agent of another state authorization to the sell insurance in the licensing state.
Management
Human
Nonretroactive
N Resource
Disability Benefits
A disability benefit that pays for the period of disability after the elimination period.
Management
Human
Nonscheduled Dental
N Resource
Plan
The dentist is paid based on actual charges, if the charges are usual, customary and reasonable.
Management
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Human
Nonsmoker Risk
N Resource
Class
People who are a standard risk and that have not smoked for a particular time period prior to the application.
Management
Human
Nonsymmetric
N Resource
Distribution
Graphed points that are not the exact image of each other, usually with cluster of more points on one side of the graph.
Management
Human
N Resource Normal Cost The amount necessary to fund for retirement benefits for one plan year for an individual or a whole pension plan.
Management
Human
N Resource Normal Distribution A certain bell shaped distribution on an graph usually as a statistic deduction.
Management
Human
Normal Retirement The age, as established by a plan, when retirement normally occurs, and the participant(s) in the plan can receive their full
N Resource
Age pension benefits.
Management
Human North American Developed by the United States, Canada, and Mexico to provide comparable statistics of industrial production across the three
N Resource Industry Classification countries and replace SIC. NAICS also provides for increased comparability with the International Standard Industrial
Management System (NAICS) Classification.
Human
The National Technical Information Service is the U.S. government agency responsible for the SIC (Standard Industrial
N Resource NTIS
Classification) manual.
Management
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Human
Numerical Rating A system of categorizing risk where medical and nonmedical factors are given a numeric number based upon the expected
N Resource
System impact on mortality.
Management
Human
The process of observing employees while performing their respective jobs or tasks used to collect data regarding specific jobs
O Resource Observation interview
or tasks.
Management
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
Human
functions and responsibilities, are considered exempt work. The following factors should be considered in determining whether
O Resource Occasional Tasks
such work is exempt work: Whether the same work is performed by any of the exempt employee‘s subordinates; practicability
Management 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)
Human
O Resource Occupation Generalized job or family of jobs.
Management
Human
Occupational
O Resource
Differentials
Wage rates that have stable differences among occupations.
Management
Human Occupational
Occupational Employment Statistics that provides employment and wage estimates by occupation for selected metropolitan
O Resource Employment
areas, as well as the nation and the individual states.
Management Statistics (OES)
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Human
Occupational Outlook
O Resource
Handbook
Provides general information on jobs, occupations, job categories.
Management
Human
Occupational Employment Statistics that provides employment and wage estimates by occupation for selected metropolitan
O Resource OES
areas, as well as the nation and the individual states.
Management
Human Office Of Federal

O Resource Contract Compliance Under the Vocational Rehabilitation Act of 1973, the agency is to enforce affirmative action for government contractors.
Management Programs
Human Office Of The

O Resource Superintendent Of An executive agency in Canada that is responsible for administering insurance laws for the provinces.
Management Financial Institutions
Human
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
O Resource Offset
liability.
Management
Human
A method of coordinating defined private pension plan benefits with those of a government plan. The benefits from the private
O Resource Offset Approach
plan are decreased by a certain percent from the benefits received from the government benefits.
Management
Human
Old Age Security Act
O Resource
(OAS)
In Canada, a law that gives pension benefits to almost all citizens 65 or older.
Management
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Old Age, Survivors,

Human
Disability And Health A federal law that created Social Security in the United States for the elderly and disabled that includes retirement, survivor and
O Resource
Insurance Act disability insurance, hospital and medical insurance.
Management
(OASDHI)
Human Omnibus Budget Federal legislation that impacts many direct and indirect components of pay (such as qualified retirement plan limits),
O Resource Reconciliation Act Of increases the Medicare tax base, eliminates the deduction for executive pay in excess of $1 million under most circumstances,
Management 1993 and extends the tuition reimbursement exclusion.
Human
A relatively new term, it is more far reaching than historical orientation programs It links new employees with team members
O Resource Onboarding
very early in the employment process and continuing after the traditional orientation program ends.
Management
Human A nominal amount of compensation provided in return for an employee being available to report to work at employer‘s
O Resource On-call Pay discretion. Because the employee is expected to be easily reachable and able to report to the work site on short notice, he or
Management she is compensated for having restricted personal time.
Human
O Resource Ontology A listing of statements written in a resource description framework (RDF).
Management
Human
A kind of insurance contract utilized by fraternal benefit societies in which the society's charter, constitution and by laws
O Resource Open Contract
become part of the insurance contract.
Management
Human
Open Ended
O Resource
Questionnaire
A technique used when analyzing a job using a written set of questions that requires a narrative response.
Management
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Human
O Resource Open Pay System A compensation program that makes public salary information , including individual wage levels.
Management
Human A focus on action to meet the immediate situation (with a time horizon from minutes to months) that requires standard
O Resource operating procedures and structures with an expectation of prompt, measurable results. Usually it has a relatively clear linkage between
Management cause and effect and contains much hard data often conveniently available for decision making.
Human
O Resource operating efficiency A ratio (percentage) of the actual output of a department as compared to the desired or planned output.
Management
Human
O Resource Operating Income A measure of a company's earning power.
Management
Human
O Resource Opportunity Cost The cost of spending funds on one investment instead of another.
Management
Human
O Resource optimization Achieving the best possible solution to a problem in terms of a specified objective function.
Management
Human
The right, to buy or sell a specific amount of a given stock, index, commodity, currency, or debt, at a specified price during a
O Resource Option
specified period of time.
Management
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Human
O Resource Option A Plan A plan common to universal life insurance where the policy proceeds are equivalent to the death benefit.
Management
Human
O Resource Option B Plan A plan common to universal life insurance where the policy proceeds are equal to the death benefit, plus the cash value.
Management
Human
O Resource Option Exercise Price The price that will be paid to purchase shares covered by a stock option.
Management
Human
O Resource Option Grant Date The date that a stock option term begins and the option become effective.
Management
Human
Option Performance
O Resource
Vesting
An option becomes exercisable during its term based on certain performance objectives.
Management
Human
O Resource Option Profit When the price of the shares is more than the exercise price at the time the shares are exercised.
Management
Human
Optional Modes Of
O Resource
Settlement
The kinds of payments that are available to the insured or the beneficiary instead of a lump-sum payment.
Management
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Human
Optionally Renewable
O Resource
Policy
A individual health plan that is renewable on the anniversary if the insurer chooses to renew it.
Management
Human
Ordinal
O Resource
Measurements
Measurements that show the rank or order of the items being counted or measured.
Management
Human
O Resource Ordinary Income According to the IRS, all income that is subject to ordinary tax treatment.
Management
Human
O Resource Ordinary Income Tax An individual's tax they must pay on earnings from all sources of income, except capital gains.
Management
Human
O Resource Ordinary Insurance Insurance that is issued to an individual person.
Management
Human
Ordinary Life
O Resource
Insurance
Life insurance that is available on a somewhat unrestricted maximum death benefit amounts.
Management
Organization For
Human
Economic An association European countries, Asia/Pacific and North America that share the same principles of market economy,
O Resource
Cooperation And democracy and human rights.
Management
Development (OECD)
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Human
Organization Any officer, director, trustee, or person having similar powers or responsibilities in a tax-exempt organization. This person may
O Resource
Manager be subject to IRS fines under INTERMEDIATE SANCTIONS regulations.
Management
Human
A pattern that emerges from the interlocking system of the beliefs, values and Behavioral expectations of all the members of
O Resource organizational Culture
an organization.
Management
Human
Organizational
O Resource
Development (OD)
Improving individual and organizational behavior via systems and programs, through training and development.
Management
Human
The introduction of employees to their jobs, co-workers, and the organization by providing them with information regarding
O Resource Orientation
such items as policies, procedures, company history, goals, culture, and work rules. Similar to Induction.
Management
Human
Original Age 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
O Resource
Conversion policy was purchased.
Management
Human
Original Equipment
O Resource
Manager (OEM)
Takes integrated products of another manufacturer makes them into a final product.
Management
Human
O Resource OSH Occupational health and safety – the law relating to the health and safety of personnel at work.
Management
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Human
Healthcare providers that are not participating in a health plans network, therefore the insurer would require higher co pays or
O Resource Out Of Plan Services
deductibles.
Management
Human
The dollar amount that an employee is responsible for paying for medical care during a certain period of time, usually a
O Resource Out Of Pocket Limit
calendar year, then the insurer pays 100% once the out of pocket limit has been paid.
Management
Human
O Resource Outliers A Medicare patient that has an illness that is unique and not able to be classified in one of the diagnostic groups.
Management
Human
A benefit offered by the employer to displaced employees which may consist of such services as job counseling, training, and
O Resource Outplacement
job-finding assistance.
Management
Human
Outplacement Counseling to employees that have laid off that can include assistance in regaining self confidence, teaching job search skills,
O Resource
Assistance resume preparation and ultimately finding a new position.
Management
Human
A member of the board of directors that is not an active employee, or a retired employee or conducts business with the
O Resource Outside Director
company for which he is a board member.
Management
Human
O Resource Outside Payroll Refers to costs of benefits that do not include the company's direct payroll.
Management
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Human
A contractual agreement between an employer and an external third party provider whereby the employer transfers
O Resource Outsourcing
responsibility and management for certain HR, benefit or training related functions or services to the external provider.
Management
Human
O Resource Outstanding Premium Premium that is required on or prior to the policy statement, but has not been received by the specific date.
Management
Human In individual health insurance, the policy will specify that under certain situations the benefits will be reduced if the employee
Over Insurance
O Resource
Provision
has more insurance that what is necessary to pay for medical expenses, or in the event that disability income may exceed the
Management insured's predisability earnings.
Human
An occurrence in which an insurance or reinsurance organization has approved an amount of insurance that exceeds the
O Resource Over Retained
company's usual capacity for a specific risk.
Management
Human
O Resource Over The Counter Securities in companies that that are publicly traded, however are not on one of the enacted stock exchanges.
Management
Human
Overfunded Pension
O Resource
Plan
A defined-benefit pension plan that the assets have surpassed the company's current and projected future liabilities.
Management
Human
O Resource Overlap The degree by which there is overlap in adjacent pay ranges.
Management
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Human
In the general agency system, the territory that some portion of the area is open to another agent, rather than the general
O Resource Overlapping Territory
agent, but the rest of the territory is exclusive to the general agent.
Management
Human
Overriding Commission that is earned by the field office manager which is based upon the business that is created by the agents in the
O Resource
Commission office.
Management
Each hour worked in a workweek in excess of the maximum hours applicable. This usually means hours worked in excess of
Human
40 in a workweek. Under the Fair Labor Standards Act of 1938 (FLSA), there is no limit to the number of hours that an
O Resource Overtime
employee may work, either daily or weekly. It simply requires that overtime pay must be paid at a rate of not less than 1½ times
Management the nonexempt employee‘s regular rate of pay for hours worked over the maximum in a workweek.
Human
50% ownership of a value of a stock or at least 50% value of combined voting strength of the various classes of stock each
O Resource Own
organization of the group.
Management
Human
O Resource Owners Equity Money given to the company owners via an issuance of equity securities and possibly through retained earnings.
Management
Human
Owners Of
O Resource
Corporations
Stockholders.
Management
Human
P Resource Package A combination of benefits and wages that employees receive due to collective bargaining.
Management
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Human
An executive benefit that allows a paid leave of absence for a predetermined period of time, usually to let the executive to
P Resource Paid Sabbatical
follow another endeavor.
Management
Human
An insurance policy that has already been paid, therefore no further premium is due for services that are received at a future
P Resource Paid-Up Policy
date.
Management
Human
A ranking technique that compares each job being evaluated individually to every other job in a pair-wise fashion to determine
P Resource Paired comparison
which job has a higher value. Ranks of jobs are created which can than be pegged to the market via benchmark jobs.
Management
Human
For stocks a random number given to a stock that is issued that is obligated by the registration requirements of particular
P Resource Par Value
states. Not all states have a par value for shares.
Management
Human
An employment contract that states if there is a change in control of the corporation, there will be an increase or accelerated
P Resource Parachute
payments or vesting or some other rights to the employee once the change is final as stated in the contract.
Management
Human
A report that is completed by another medical professional such as a technician, or a nurse or a physician assistant after a
P Resource Paramedical Report
medical history and physical examination.
Management
A trained worker who assists a professional, although not a member of the profession. For example: AA‘s in disciplines like
Accounting and Information Technology, Certified Information Systems technicians, paralegals, licensed paramedics, certified
Human
professional secretaries, CAD-CAM operators, and other similarly technically focused workers who are narrowly specialized
P Resource Paraprofessional
and whose formal credentials fall short of Wage-Hour FLSA Professional Long Test requirements. Typically, these individuals
Management 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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Human
Parent And
P Resource
Subsidiaries
One company is controlled by another company via stock ownership.
Management
Human
Parent Subsidiary
P Resource
Group
One company, the parent company, owns stock in one or more companies called subsidiaries.
Management
Human
A bar graph used to rank in order of importance information such as causes or reasons for specific problems so that measures
P Resource Pareto chart
for process improvement can be established.
Management
Human
A free parking space dedicated to an employee is typically a taxable benefit, however if there is not a market value to the
P Resource Parking
parking space, not value can be determined.
Management
Human
A type of disability that would prevent an insured from completing the usual occupation on a full time basis, or from completing
P Resource Partial Disability
some of the duties of that usual occupation.
Management
Human
Partial Disability
P Resource
Benefit
A disability income insurance policy that pays a flat amount if the insured has a partial disability.
Management
Human
Partial Plan
P Resource
Termination
Termination of a pension plan or benefit plan from a specific organization, but not for another.
Management
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Human
An employee that is currently eligible or will be eligible in the future for the company benefits. A participant may also include a
P Resource Participants
beneficiary.
Management
Human
Participating A agreement with the employer group and the insurance company in which the premium due is based upon the actual
P Resource
Insurance Contract premium and utilization of the plan.
Management
Human
P Resource Participating Policy A kind of life insurance policy or annuity where dividends might be paid to the policy owner.
Management
Human
P Resource Participation The amount of individuals given pay increases as a percentage of all of the employees in that group.
Management
Human
participative A style of leadership in which the leader involves one or more employees in determining what to do and how to do it. The
P Resource
leadership leader maintains final decision making authority.
Management
Human In FLSA exempt employee determinations, factors to consider include, but are not limited to, whether it is part of the
P Resource Particular Weight employee‘s job duties to make such suggestions and recommendations; frequency with which such suggestions and
Management recommendations are made, requested, and relied upon.
Human
Partnership One type of insurance for businesses that is intended to provide funds to the remaining business partners so that they may
P Resource
Insurance purchase the interest of the business of the disabled or deceased partner.
Management
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Human
The time of employment prior to a pension policy beginning or being amended or the time before that employee had begun
P Resource Past Service
participating in the plan.
Management
Human
A general revision of pay raises. The adjustment may be either across-the-board, such as cost-of-living adjustments (COLA),
P Resource Pay Adjustment
or spot adjustments for increases in prevailing wage rates.
Management
Human
P Resource Pay As You Go The typical technique for financing social security.
Management
Human
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
P Resource Pay At Risk
policy will payout when base pay is not at risk.
Management
Human A term used to describe differentials in pay that is too little to be considered equitable. May be applied to the differences
P Resource Pay Compression between (1) a supervisors pay and that of a subordinate. (2) The pay of an experienced employee versus that of a newly hired
Human
Paying employees based upon their performance level. Employees are evaluated via performance appraisals and given raises
P Resource Pay for Performance
based upon their performance ratings. Poorly performing employees have their wages frozen; they are not given wage cuts.
Management
Human
Pay For Time Not
P Resource
Worked
An employee is paid for the time that was not actually worked, such as holidays, jury duty, and personal days.
Management
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Human
The salary level assigned to a job through a job evaluation system. (See ERI DLC Course 34: Installing Job Evaluation in Your
P Resource Pay Grade
Organization.)
Management
Human
A pay arrangement for employees that have been terminated that is a continuation of the usual pay and usual benefits after the
P Resource Pay In Lieu Of Notice
last day for a specific period of time.
Management
Human
A schedule of pay rates or ranges for each job in the classification plan. May include rules of administration and the benefit
P Resource Pay Plan
package.
Management
Human
P Resource Pay Policy A specific position of a company's pay with respect to the jobs competitive pay at a specific time.
Management
Human
The level at which the organization decides to set its pay against the external market; usually the midpoint of the salary
P Resource Pay Policy Line
structure is set as an estimate of the market going rate.
Management
Human
The range of pay rates, from minimum to maximum, established for a pay grade or class. Typically used to set individual
P Resource Pay Range
employee pay rates.
Management
Human
The degree to which the pay ranges assigned to adjacent grades in a structure overlap. Numerically, the percentage of
P Resource Pay Range Overlap
overlap between two adjacent pay ranges.
Management
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Human
P Resource Pay Range Width The width or spread of a pay range, measured by the ratio: Width = (maximum pay – minimum pay)/minimum pay.
Management
Human
P Resource Pay Satisfaction When an employee thinks that the salary they are paid is fair in comparison to the work they actually perform.
Management
Human
P Resource Pay Steps Specified levels within a pay range. Employees may progress from step to step on the basis of time-in-grade.
Management
Human
P Resource Pay Survey The gathering of data on wages and salaries paid by other employers for selected key classes of jobs or benchmark jobs.
Management
Human
P Resource Payee The individual that benefits are payable to as stated in the supplementary contract.
Management
Human Payment Of In Canada, an insurer can take action if they have admitted liability to fund policy proceeds, however the insurer cannot
P Resource Insurance Money Into determine the appropriate recipient. After the insurer pays the court, they are released of any further obligation under the
Management Court policy.
Human
P Resource Payout Frequency The time that incentives are paid. They can be paid weekly, monthly, per quarter, or yearly.
Management
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Human
Payroll Deduction A payment method in which the employer deducts the premium from the individual employee's paychecks and sends it to the
P Resource
Plan insurer.
Management
Human
P Resource PBA Principal Business Activities are IRS definitions of industry classifications.
Management
Human
A performance appraisal strategy whereby an employee is reviewed by his/her peers who have sufficient opportunity to
P Resource Peer appraisal
examine the individual‘s job performance.
Management
Human
P Resource Peer Comparison This is an idea in which results of incentive plans certain financial measures are compared to those of similar organizations.
Management
Human
Peer Review Local physicians that belong to an organization that assist in resolving insurance claims arguments and encourage ethical and
P Resource
Organization fair behavior in the health care business.
Management
Human
P Resource Penalties In benefits and wages, when a employer does not adhere to the legal requirements they must pay a sum of money.
Management
Human
P Resource 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.
Management
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Human Pension Benefit

A federal corporation that insures the benefits of defined benefit pension plans. The PBGC is supposed to ensure that all plan
P Resource Guaranty Corporation
participants received their vested benefits, even in the event that the pension plan goes bankrupt.
Management (PBGC)
Human
Pension Benefits In the Canadian province of Ontario, a fund is created to guarantee that benefits are paid in the event of insolvency of a
P Resource
Guarantee Fund pension plan.
Management
Human
Pension Benefits Federal legislation in Canada that regulate administration of pension plans for federal employees and other employees that
P Resource
Standards Act may fall under this legislative authority.
Management
Human
Pension Equity Plan A kind of defined benefit pension plan that bases its retirement on final pay, however the percentage at a certain rate per year
P Resource
(PEP) based upon the individual's age and/or service.
Management
Human
P Resource Pension Fund A fund set up to manage the assets and pay for the pensions of retirees.
Management
Human
An index utilized by the Canadian Pension Plan and Quebec Pension Plan to change the pension payments to incorporate the
P Resource Pension Index
effects of inflation.
Management
Human
A benefit plan that offers retirement benefits from a trust or another fund, via the purchase of insurance or from an unfunded
P Resource Pension Plan
plan.
Management
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Human
P Resource Pension Plans A pension is a monetary benefit to an employee or beneficiary at the time of retirement.
Management
Human
A fund that is made up of money that has been contributed to by both the employer and the employee for pension benefits. A
P Resource Pension Trust Fund
trustee takes the funds and invests the money, collects the earnings and interest and distributes the benefits.
Management
Human
Pension Versus
P Resource
Lump Sum
A pension is a retirement benefit that is paid periodically, and a lump sum is paid all at one time.
Management
Human Per Capita

A beneficiary designation in which the proceeds from a life insurance policy are only shared with the class members who live
P Resource Beneficiary
longer than the insured.
Management Designation
Human
P Resource Per Cause Deductible A deductible that must be paid for each individual illness or accident before nay major medical benefits will be paid.
Management
Human
P Resource Per Cause Maximum A medical expense policy maximum amount that will be paid for medical expenses incurred from any specific injury or illness.
Management
Human Per Stirpes

A beneficiary designation in which the proceeds from a life insurance policy are given to the descendents of the deceased
P Resource Beneficiary
beneficiary.
Management Designation
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Human
P Resource Percent One part of 100.
Management
Human
P Resource Percent Difference The percent that the worth of one item is different from another item.
Management
Human
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
P Resource Percentage Bar
data in graph form.
Management
Human
Percentage
P Resource
Contribution
The total premium that company member would pay or pays to a contributory insurance plan.
Management
Human
Percentage Method A technique of figuring income taxes that are to be withheld by including wages for a specific pay period to the total wages paid
P Resource
Of Withholding to date that year.
Management
Human A provision of a policy, typically found in major medical insurance, in which the insured employee and the insurer share the
Percentage
P Resource
Participation
medical and hospital expenses in a predetermined ratio (e.g., 80%:20%), after the deductible is met. Also known as a form of
Management cost-sharing.
A point on a rank-ordered scale, found by dividing a group of observations into parts in order of magnitude from lowest to
Human
highest. The first percentile approximates the very lowest/bottom number found, while the 100th percentile is the very highest
P Resource Percentile
reported. The nth percentile is the point exceeding n percent of the observations. For example, in test taking, a score equal to
Management or greater than 55 percent of those earned on an exam is said to be at the 55th percentile.
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Human
Performance Any system of determining how well an individual employee has performed during a period of time, frequently used as a basis
P Resource
Appraisal for determining merit increases.
Management
Human
Performance Based Restricted shares of stock that are awarded to an executive and are contingent upon the attainment of internal or external
P Resource
Restricted Stock performance goals or an increase in the price of the company stock.
Management
Human
P Resource Performance Culture A group of averages and attitudes regarding performance in an organization.
Management
Human
P Resource Performance Cycle Job incumbents performance taken on a year to date cycle.
Management
Human
Performance
P Resource
Dimensions
Phases of performance that are imperative to an occupation by which the incumbent will be measured.
Management
Human
performance
P Resource
efficiency
A ratio (percentage) of the actual output of a person as compared to the desired or planned output.
Management
Performance Improvement Plan when you have identified a performance problem and are looking for ways to improve the
Human
Performance performance of an employee. The Performance Improvement Plan plays an integral role in correcting performance
P Resource
Improvement discrepancies. It is a tool to monitor and measure the deficient work products, processes and/or behaviors of a particular
Management employee in an effort to improve performance or modify behavior.
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Human
A written log that is kept by managers to remember behaviors that were effective and ineffective with regard to certain
P Resource Performance Log
performance standards during the appraisal period being measured.
Management
Human
Performance A process utilized by managers that is made up of planning an managing performance via observation and providing feedback.
P Resource
Management The process also includes bettering performance through development, assessing and rewarding performance.
Management
Human
Performance
P Resource
Measurement
Any method utilized to gather data that gives a basis to exercise performance appraisal judgment.
Management
Human
P Resource Performance Period The time period for which performance is measured.
Management
Human
Performance A total approach to managing people and performance. Involving setting performance aims and expectations for the
P Resource
planning organization, departments and individuals employees.
Management
Human
P Resource performance rating Observation of a person's performance to rate productivity in terms of the performance standard
Management
Human
Performance Sharing A method by which performance is described in terms of specific criteria, and norms are determined along with incentive
P Resource
(Goal Sharing) awards being made depending upon if the goals have been met.
Management
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Human
performance
P Resource
standard
A criterion or benchmark against which actual performance is measured.
Management
Human
Job duties or behavioral goals that are predetermined for an employee to provide a comparison for performance appraisal
P Resource Performance Targets
purposes.
Management
Human
Performance Unit Closely resembles a performance share plan, however the unit value is not related to the stock price. The award payment
P Resource
Plan (PUP) could be is stock, cash or a combination of the two.
Management
Human
P Resource Peril The cause of loss, such as earthquake, fire, flood and accident.
Management
Human
Also known as annuity certain. A contract that states income will be provided for a specified number of years, regardless of life
P Resource Period Certain
or death. If an annuitant or insured dies, his or the payments will be made to the beneficiary for the remaining years.
Management
Human
Permanent And Total
P Resource
Disability
A situation that keeps an insured person from performing the job duties of any suitable, gainful employment.
Management
Human
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
P Resource Permanent Capital
non-current liabilities and equity.
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Permanent
P Resource
Transferee
An employee that was relocated and is not expected to go back to his home country or relocate to another country.
Management
Human
The difference between benefit and contribution rates that are allowed for highly compensated and non-highly compensated
P Resource Permitted Disparity
participants in a qualified pension plan as legislated by the IRS.
Management
Human
Special benefits, perks, for high level executives and other managerial employees. This income is taxable to the employee.
P Resource Perquisite
Some of these perks may include club memberships, legal counseling, and special parking.
Management
Human
P Resource Persistency The retention of business that takes place when an insurance policy stays in force as the result of continuing to pay premium.
Management
Human
A complaint brought by one party to an employment contract against another party. See Part 9 of the Employment Relations
P Resource Personal grievance
Act 2000.
Management
Human
Personal Interview A report that includes a proposed insured's lifestyle, occupation, and economic standing. The report relies solely on the
P Resource
Report information reported by the proposed insured.
Management
Human Personal Producing

A kind of general agent that is more similar to a broker than to a agency manager. Usually PPGAs are contracted with various
P Resource General Agency
insurance companies and spend their time attempting to sell insurance rather than managing and building an office.
Management (PPGA)
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P Resource General Agency An individual that sells distribution systems who relies upon the use of PPGAs.
Management (PPGA) System
Human
Personal Selling A system to sell insurance that utilizes salaried or commissioned sales people to prospective insurance purchasers via oral
P Resource
Distribution System presentations.
Management
Human
Compensation programs that base an employee‘s salary on that individual‘s skills or knowledge rather than on the nature of a
P Resource Person-based Pay
rigidly defined job. Types include skill-, knowledge-, and competency-based pay.
Management
Human
Options on units equal to stock shares, however they are not true shares, or rights to the increase in value of the shares not
P Resource Phantom Options
including related option rights.
Management
Human
Phantom Stock (Full An incentive plan that is long term in which the participant is given the compensation in cash that is determined by a formula. A
P Resource
Value) full value plan pays the full value. The formula does not have to include the actual price of the stock.
Management
Human
Phantom Stock The concept is similar to the phantom stock full value, however the payment is an appreciation or increase in value as
P Resource
(Incremental Value) determined by the formula. The formula does not have to include the actual price of the stock.
Management
Human
P Resource 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
P Resource
Provision physician of their choice and their expense.
Management
Human Physical
Many times employers will provide the employees with a yearly physical examination, typically at no cost or very little cost to the
P Resource Examinations -
employee.
Management Employer Assisted
Human
A direct performance payment based on production by an individual worker. A payment is made for each piece or other
P Resource Piece Rate
quantity unit of work produced by an employee.
Management
Human
An incentive payment is given for work that has been completed. The pay is dependent upon the amount of items produced or
P Resource Piece Work
operations finished.
Management
Human The administrator of the plan is the plan sponsor, however someone else can be named as the sponsor in the plan document.
P Resource Plan Administrator The responsibilities include- 1) managing the plan assets to reduce risk of loss, 2) act on the interests of the beneficiaries, 3)
Management act accordingly under the terms governing the plan.
Human A person that the plan trustees might delegate their tasks to. The plan advisor has fiduciary responsibilities, including buying,
P Resource Plan Advisor selling and managing plan assets. The plan advisor must put in writing that he or she is the plan fiduciary. The plan advisor
Management must also be a registered investment advisor.
Human
A document that states the terms of a pension plan for an employer. The document states the eligibility requirements and the
P Resource Plan Document
specific benefits of the plan.
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An individual, such as an employer, a terminated employee or a beneficiary of an employee or terminated employee for which
P Resource Plan Participant
contributions are made or benefits are earned under a employee benefit plan or a pension plan.
Management
The party that creates and maintains the plan. This party is either (1) the employer, when the employee benefit plan is
Human
maintained by a one employer, (2) the employee organization, if the plan is maintained by an employee organization, or (3) the
P Resource Plan Sponsor
committee or association, joint board of trustees or other equivalent group individuals of the parties involved, if the plan is
Management maintained by one or more employers and one or more employee organizations.
Human The benefits of a pension plan profit sharing plan cease voluntarily or due to circumstances. The discontinuation of benefits will
P Resource Plan Termination cause assets to be distributed to beneficiaries. If the distributions are not equal to the accrued benefits, the Pension Benefit
Management Guarantee Corporation will try to assist with the difference.
Human
P Resource Plan Year A period of 12 months for which plan records are kept.
Management
Human
plan-do-check-action Sometimes referred to as the Shewhart Cycle, for the inventor - Walter A. Shewhart. A four step process for quality
P Resource
(PDCA) improvement
Management
Human
A course of action for oneself and others to accomplish goals; establishing priorities and planning appropriate allocation of time
P Resource planning
and resources and proper assignment of people to achieve feasible, acceptable, and suitable goals.
Management
Human
P Resource PMSA Primary Metropolitan Statistical Area (PMSA). See METROPOLITAN STATISTICAL AREAS (MSA).
Management
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P Resource Point Factor A quantitative occupation evaluation technique that utilizes defined factors and degree levels in each factor.
Management
Human Health Plans that are a combination of an HMO and fee for service plan. The individual can choose at the point of service
Point Of Service
P Resource
Plans (POS)
whether he wants to see a network provider or a non network provider. The co pays and will be vary and deductibles may
Management apply.
Human
A document that provides evidence of the insurance contract and has the important facts about the agreement between the
P Resource Policy
insurance carrier and the policyholder.
Management
Human
Policy Acquisition
P Resource
Costs
Cost that are attributed directly the production of any new business.
Management
Human
P Resource Policy Anniversary The anniversary of the date that a policy was first issued.
Management
Human
The amount that will add to the total premium to assist in covering the insurance company's expenses. The charge is the same
P Resource Policy Charge
and does not take into consideration the size of the group.
Management
Human
P Resource Policy Filing The process of getting legal authorization to sell insurance products in certain areas.
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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
P Resource Policy Loan
cash value. When the benefits are paid the pending policy loan against the policy is subtracted from the benefits.
Management
Human
P Resource Policy Proceeds The actual amount that a beneficiary receives from a life insurance policy after all adjustments have been to the death benefit.
Management
Human
P Resource Policy Provisions The statements in a policy the discuss the insurance contract.
Management
Human
P Resource Policy Reserve The assets that ensure the insurer will have the appropriate funds to cover future claims.
Management
Human
Usually a computer printout, this document provides specific legally required information with regard to the certain policy that
P Resource Policy Summary
the applicant is considering.
Management
Human
A organization or company that owns a group insurance contract. The policy holder does not have the same rights that a
P Resource Policyholder
individual policy owner has with an individual contract.
Management
Human
P Resource 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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A common trust fund generally sponsored by one employer and used to accumulate the assets of different plans of the
P Resource Pooled Trust
employer and its subsidiaries.
Management
Human
P Resource Pooling A practice in group insurance in which the underwriters put several small groups together to create a large group.
Management
Human
P Resource Population A statistical term that takes into account all of the units that are of interest for a certain situation.
Management
Human
The right of a pension plan participant to transfer already accrued pension benefits under a one plan with one employer to
P Resource Portability
another employer sponsored plan. The act of transferring is typically tax free.
Management
Human
Several definitions: 1) The products that are offered by an insurance carrier, 2) Investments that are owned or managed an
P Resource Portfolio
organization or individual.
Management
Human
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
P Resource Portfolio Method
assets in the general account.
Management
Human The total of duties and responsibilities of a single employee. The total number of positions in an organization equals the
P Resource Position number of employees plus vacancies. A job is typically made up of several positions that require the same duties at the same
Management level.
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P Resource Positive Correlation When the relationships between x and y are generally the same.
Management
Human
Post Employment Typically given to executives these employment benefits include other benefits beyond medical and retirement, such as
P Resource
Benefits compensation and a secular trust.
Management
Human
A document that an insurer is required to send to an applicant in situations that the insurance company has made a negative
P Resource Post Notice
decision based upon information that was received via a consumer reporting agency.
Management
Human
Post Retirement
P Resource
Benefits
Any form of benefits, beyond retirement income, that is provided to its retirees by their employer.
Management
Human
An insurance agents right to act on the behalf of an insurer. It is created through contracts between and insurer and their
P Resource Power Of Agency
agents.
Management
Human
Preferred Provider Organization. A network of healthcare providers that will discount services to individuals or groups that
P Resource PPO
participate in the particular plan.
Management
Human
Pre-Admission An element of the utilization and review system that provides authorization for non-emergency hospitalization, if the insured
P Resource
Review person or the insured's physician has received prior authorization.
Management
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A payment method that allows a policyowner to sign an authorization to pay insurance premiums. The authorization is two
Human
Pre-Authorized parts. The first part gives the insurer authorization to withdraw the premium from the insured's account. The second part gives
P Resource
Payment System the bank authorization to allow withdrawals that do not have the insured's signature. If this authorization system is completed
Management via checks, it is then called the pre-authorized check (PAC) system.
Human A stipulation that is often included in dental policies that states if dental services are anticipated to exceed a certain level the
Predetermination Of
P Resource
Benefits Provision
dentist will need to submit a proposed treatment plan to the insurer so that the insurer can determine what amount they will
Management cover.
Several definitions: 1) In individual medical plans, the condition is an injury that occurred or an illness that was diagnosed prior
Human
Pre-Existing to the policy issue date, and in addition was not stated on the insurance application, 2) In group medical insurance the
P Resource
Condition condition is one in which the employee received medical attention during a certain period of time (typically 3 months), just
Management before the effective date.
Human
Pre-Existing A stipulation in many insurance policies that states that the insured must be covered under the policy for a specific time period
P Resource
Condition Provision before the insurer will pay for benefits resulting from any pre-existing condition.
Management
Human
Preference Wording in a life insurance policy that states if there is not a specific beneficiary named, that the insurance company will pay
P Resource
Beneficiary Clause the proceeds according to a list of people included in the policy, in a stated order.
Management
Human A class of beneficiaries, in Canada, associated with policies given before 1962 that include grandparents, parents, spouse and
P Resource Preferred Beneficiary grandchildren of the said insured. The policyowner can only change the preferred beneficiary to a non-preferred beneficiary
Management with the authorization of the preferred beneficiary.
Human
Preferred Provider A managed care health delivery arrangement that contracts with certain health care providers and/or health care organizations
P Resource
Organization (PPO) to provide comprehensive medical service. Providers provide services at discounted rates to members of the PPO.
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Capital stock which gives a certain dividend that is paid prior to any dividends are paid to the common stock holders, and that
P Resource Preferred Shares
takes priority over the common stock if the company must liquidate.
Management
Human
Capital stock which gives a certain dividend that is paid prior to any dividends are paid to the common stock holders, and that
P Resource Preferred Stock
takes priority over the common stock if the company must liquidate.
Management
Human
Pregnancy Disability
P Resource
Leave
Leave from the workplace for a specific period of time that is related to disability caused by pregnancy.
Management
Human
Preliminary Inquiry 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
P Resource
Form high substandard so that the premium for the policy will not be acceptable to the applicant.
Management
Human A withdrawal prior to the age 59 1/2 from a qualified retirement plan. There are certain circumstances that will allow the
Premature
P Resource
Distribution
distribution if specific requirements are met. If these requirements are not met there usually is a penalty associated with the
Management distribution.
Several definitions: 1) An amount that is added to a base salary to pay additional monies for situations such as graveyard shift,
Human
working weekends, or working away from home, 2) In an international situation the definition relates to an incentive that is paid
P Resource Premium
to an expatriate, 3) One payment or a sequence of payments made for an individual or for a group to continue the insurance
Management policy that is in force.
Human
P Resource Premium Conversion Provision that allows employees to make a contribution, pretax, to an employer sponsored health or welfare plan.
Management
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Human
P Resource Premium Deposits Money that is left on deposit with the insurance carrier to pay for future premiums.
Management
Human
The usual amount of presumed additional return on investment that is required by investors when they choose a higher-risk
P Resource Premium For Risk
investment.
Management
Human
P Resource Premium Pay Extra pay, beyond the base wage rate, for work performed outside or beyond regularly scheduled work periods.
Management
Human
P Resource Premium Receipt Recognition that the insurer has received the initial premium payment.
Management
Human
Premium Receipt 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
P Resource
Book prenumbered receipts that the agent signs at the time premium is collected.
Management
Human
Premium Reduction
P Resource
Option
A life insurance policy dividend option that applies policy dividends toward the payment of renewal premiums.
Management
Human
P Resource Pre-Notice Notification to the applicant in advance that the insurance company may make an investigative consumer report.
Management
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Pre-Retirement
P Resource
Counseling
Preparation for the financial and emotional changes that occur during retirement for the employee and the spouse.
Management
Human
Preretirement A provision in a pension plan that states a certain benefit for a surviving spouse of a vested plan participant if the participant
P Resource
Survivor Annuity should die prior to retirement.
Management
Human
Prescribed Annuity A type of annuity in Canada that has met the specific criteria set by the Income Tax Regulations to therefore qualify as exempt
P Resource
Contract from accrual taxation.
Management
Human
P Resource Present Value Current value of an amount of money or its value at the beginning of a certain time period.
Management
Human
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
P Resource Present Value Factor
money.
Management
Human
Presumptive A state that will cause an insured to be deemed totally disabled, such as loss of two limbs, or total hearing loss, or total
P Resource
Disability blindness.
Management
Human
The salaries that other employers pay for labor in similar markets. These wages rates are typically used with immigration pay
P Resource Prevailing Wage Rate
analyses, where General Administrative Letter 2-98 requirements must be met. See www.erieri.com/freedata/hrcodes.
Management
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Human
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
P Resource Price At Exercise
option exercise price is subtracted.
Management
Human In the United States, that standard premium rate that is suggested by the state regulators for a contributory policy in
P Resource Prima Facie Rate organization creditor insurance. An insurance company is not allowed to require more than the prima facie rate when the
Management contributory organization creditor insurance policy is initially issued.
Human
P Resource 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.
Management
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.
Human
Factors to consider when determining the primary duty of an employee include, but are not limited to, the relative importance of
P Resource Primary Duty
the exempt duties as compared with other types of duties; the amount of time spent performing exempt work; the employee‘s
Management 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
Primary Provider Of Under circumstances when coordination of benefits occurs, the medical expense plan that covers the benefits under this plan
P Resource
Benefits prior to any benefits being paid by another medical expense plan.
Management
Human
Principal Business
P Resource
Activity (PBA)
IRS definition of industry classifications.
Management
Human
Liability that relates to services that prior to the plan implementation or is attributed to an increase in benefits for services prior
P Resource Prior Service Liability
to amendment date.
Management
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PRN Nurses are part-time nurses that work intermittent schedules on an as-needed basis. These employees are typically not
P Resource PRN
eligible to receive benefits but receive competitive hourly wages and an increased work-life balance.
Management
Human
Several definitions: 1)The chance of something occurring, 2) A mathematical term that is the amount occurrences that
P Resource Probability
something may occur out of a specific amount of occurrences.
Management
Human
Probationary Where the parties to an employment agreement agree as part of the agreement that an employee will serve a period of
P Resource
Arrangements probation or trial after the commencement of the employment. See Section 66 Employment Relations Act 2000
Management
Human Several definitions: 1) The duration of time between the beginning of an insured person's disability and the start of the policy's
P Resource Probationary Period benefits. (2) The period between employment or enrollment in a program and the date when an insured person becomes
Management eligible for benefits.
Human
P Resource Proceeds The money that the insurer is supposed to pay for a settlement of an endowment policy, an annuity or life insurance policy.
Management
Human
P Resource process improvement Activities designed to identify and eliminate causes of poor quality, process variation, and non-value added activities.
Management
Human
P Resource Productivity A measuring of an operation's efficiency, typically including a comparison of outputs to inputs.
Management
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P Resource Professional ethics the principles and standards that underlie one's responsibilities and conduct in a particular field of expertise (profession).
Management
Human Professional in A designation proving mastery of the HR body of knowledge. Initial PHR certification is provided by the Human Resource
P Resource Human Resources Certification Institute (HRCI); see www.hrci.org. The ERI Distance Learning Center provides PHR recertification credits. See
Management (PHR) our Course Credit Map for a list of courses each approved for 1 PHR recertification credit hour.
Human
Professional A insurance company whose major line of business is reinsurance. Sometimes the insurance company may only handle
P Resource
Reinsurer reinsurance.
Management
Human
Profit And Loss A detailed summary of the income and expenses of a business over a period of time (usually quarterly, semiannually or
P Resource
Statement (P&L) annually) showing the net income or loss incurred.
Management
Human A money purchase pension plan in Canada that link employer contributions to company profits. Employers are required to
Profit Sharing
P Resource
Pension Plan
make a minimum contribution of 1% of employee earnings, even if the company was not profitable. The plan must adhere to
Management the same legal provisions as pension plans.
Human
P Resource Profit Sharing Plan An agreement between an employer and the employees in which the profits of the company are shared with the employees.
Management
Human
The result of selling goods or services for more than the cost of producing them. In investment, profits result from selling a
P Resource Profits
commodities or securities for a higher price than the cost of purchasing them.‖
Management
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P Resource program A significant long-term activity, as opposed to a project. Normally defined as a line item in the organization's budget.
Management
Human
Progressive Progressive discipline is a process for dealing with job-related behavior that does not meet expected and communicated
P Resource
Discipline performance standards.
Management
Human
Progressive Incentive An employee rewards plan that increases the incentive as the employee performance exceeds predetermined degrees of
P Resource
Formula performance.
Management
Human
Progressivity Of An employee rewards plan that increases the incentive as the employee performance exceeds predetermined degrees of
P Resource
Incentives performance.
Management
Human
P Resource project An endeavor with a specific objective to be met within a prescribed time and dollar limitation.
Management
Human According to the American Society for Quality (ASQ), project management is, "The application of knowledge, skills, tools and
P Resource Project Management techniques to a broad range of activities to meet the requirements of the particular project."Promotion The advancement of an
Management employee from one position to another position that has a higher salary range maximum is called a promotion.
Human
Projected Benefit The current value of benefits that have accrued for a defined benefit plan, no future service is assumed however, salary
P Resource
Obligation (PBO) increases are anticipated.
Management
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P Resource Promotion The (re)assignment of an employee to a job in a higher grade or range in the organization‘s job worth hierarchy.
Management
Human
P Resource Promotional Increase An increase in an employees salary due to a promotion.
Management
Human
A kind of insurance that provides a benefit if in the event of theft, accident, fire or another circumstance insured items are lost
P Resource Property Insurance
or damaged.
Management
Human
Property Plant And
P Resource
Equipment
Non current assets.
Management
Human
P Resource Proposal Form A document in Canada that is provided to a prospective insured with individualized data about the policy and its values.
Management
Human
Prospective Normal The pension that is expected to pay at normal retirement age to any employee that has stayed on the job to the specified date
P Resource
Retirement Age and that employee's salary as it relates to pension is unchanged.
Management
Human A legal document required by the SEC offering securities or mutual fund shares for sale. It must state the offer, including the
P Resource Prospectus terms, issuer, objectives if mutual fund or planned use of the money if securities, historical data, business plan and other
Management information about the company.
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Human
P Resource Prototype Plan A standardized pension or employee benefit plan, created to make drafting plans easier for the plan sponsors.
Management
Human
One type of medical insurance fraud that takes place with the provider tries to grow his/her own income by sending the
P Resource Provider Fraud
insurance company fraudulent claims.
Management
Human
P Resource Provision For Taxes Earnings on a company income statement report item estimating current year tax liability.
Management
Human
Proximate Cause Of 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
P Resource
Death death.
Management
Human
An SEC requirement for public corporations to reveal the compensation, in a summary compensation table, of the five highest
P Resource Proxy Reporting
paid executives.
Management
Human
The SEC requires that publicly owned companies send out a document that alerts shareholders of the annual meeting, or any
P Resource Proxy Statement
other special meetings. The proxy statement will also disclose the issues that will be discussed.
Management
Human
The sponsor or manager must abide by the legal requirements in that he/she must display specific standards of prudence and
P Resource Prudent Expert Rule
competence in accounting for the assets in a pension plan as well as investing the funds of the plan.
Management
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Human
Common law standard that is supposed to be followed by the trustees of funds. The trustee is expected to act faithfully, with
P Resource Prudent Man Rules
discretion, prudence and intelligence keeping in consideration the probable income and the security of the capital.
Management
Human
When determining cost of living, an index must be referred to that determines the strength of the dollar for the purchasing of
P Resource Purchasing Power
goods and services.
Management
Human 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
P Resource Pure Endowment certain time period, they do not receive any of the endowment. This is typically illegal unless it is combined with a form of life
Human
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
P Resource Put Option
expiration date.
Management
Human
The process of taking profits that were accumulated from open positions to purchase additional securities without having to
P Resource Pyramiding
use cash.
Management
Human
A kind of annuity, in the U.S. that is funded with dollars that are deductible, up to a predetermined maximum from the
Q Resource Qualified Annuity
depositors gross income the year that funds are deposited.
Management
Human
An individual that is eligible to receive Cobra health care continuation coverage per the Consolidated Omnibus Reconciliation
Q Resource Qualified Beneficiary
Act of 1985 due to a qualifying event.
Management
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Human
The maximum an employer can deduct for tax purposes for contribution to a welfare benefit fund. It equals the fund's qualified
Q Resource Qualified Costs
direct cost and permitted additions to a qualified asset account, minus the fund's after-tax income for the taxable year.
Management
Human Qualified Domestic

Court orders from a state domestic court that are deemed qualified by the plan administrator. QDROs allow the employer to
Q Resource Relations Order
split the retirement benefits of an employee in the event of divorce without breaching ERISA or tax code.
Management (QDROS)
Human 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
Q Resource 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
Management & S) more than 100% of the original benefits for their joint lives.
Human Qualified Medical

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
Q Resource Child Support Order
participant.
Management (QMCSO)
Human
A pension or profit sharing plan that the Internal Revenue Service approves as meeting their requirements. These plans may
Q Resource Qualified Plan
have tax advantages.
Management
An event that qualifies a participant and dependents to be eligible for COBRA. This event may be a termination of employment
Human
(or a reduction in hours), divorce or legal separation, death of a covered employee, a dependent child's loss of dependent
Q Resource Qualifying Event
status, a covered employee's eligibility for Medicare or loss of coverage due to the employer's filing of a bankruptcy
Management proceeding.
Human
Definition for the Human Resources Glossary Quality is a measure of excellence; quality defines desirable characteristics of a
Q Resource Quality
product, a process, or a service.
Management
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Human
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.
Q Resource Quality management
There are five dimensions to quality, design, conformance, availability, safety and field use.
Management
Human
Quantitative Job
Q Resource
Evaluation
A technique that displays a hierarchy of job worth by examining occupations in terms of certain numerical indexes and factors.
Management
Human
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
Q Resource Quartile
100%.
Management
Human
Quebec Pension Plan
Q Resource
(QPP)
A plan that mostly provides retirement funds and LTD income to individuals that reside in Quebec.
Management
Human
Q Resource Quick Ratio A measure used by company's to determine liquidity. Equals quick assets divided by current liabilities.
Management
Human
Q Resource Quintiles A value that is divided into fifths.
Management
Human
Q Resource Quota A predetermined performance objective.
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Human
Q Resource Quota Setting The process of determining quotas.
Management
Human
Quota Share A kind of reinsurance plan that the assuming organization reinsures a certain percent of all risks of a specific type insured by
Q Resource
Reinsurance Plan the granting company.
Management
This nonqualified arrangement, allows the employer to set money aside expressly to pay for excess pensions or deferred pay.
Human
Employers do not take a tax deduction, and the beneficiaries do not pay tax on contributions to the trusts until such time that
R Resource Rabbi Trust
they start receiving their money. Although funds are subject to employer's creditors, they are not accessible to current and
Management future management.
Human
R Resource Raise An increase in wages or salary.
Management
Human
A method under which sections of a population are drawn utilizing a procedure by which every member of the population has
R Resource Random Sampling
an equal opportunity to be chosen.
Management
Human
R Resource Random Testing Drug and alcohol tests administered by an employer which selects employees to be tested on a random basis.
Management
Human
Several definitions: 1) The difference between the maximum value and minimum value, 2) In reference to a pay grade, the
R Resource Range
amount that the maximum pay exceeds the minimum pay.
Management
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Human
The level of an individual‘s pay compared to the total pay range (rather than compared with midpoint, as in compa-ratio).
R Resource Range Penetration
Range penetration is calculated as:
Management
Human
Usually used to determine individual employee pay, this term refers to range of rates, from the minimum to the maximum for a
R Resource Range Spread
particular class or grade of employees.
Management
Human
Ranking Method Of
R Resource
Job Evaluation
A job comparison that results in the ranking of jobs into a hierarchy beginning at the highest and ending at the lowest.
Management
Human
R Resource Rate The money rate paid to an employee per hour.
Management
Human
R Resource Rate Making The actuarial calculation of rates for insurance products.
Management
Human
Rate Of Return A technique that compares the price for life insurance when the important figure is the annual percentage rate that represents
R Resource
Method the rate of return.
Management
Human
R Resource Rate Range
Management
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Human
An insurance policy that covers a person classified as a greater than average risk of loss. The policy's premium rate may be
R Resource Rated Policy
higher than the rate for a standard policy or the policy is issued with special limitations or exclusions or both.
Management
Human
Three various techniques that insurance companies use for mortality assumptions to determine group life premiums. The
R Resource Rating Classes
methods are rating are: experience rates, manually rated and blended.
Management
Human
A manual used by underwriters, for determining premium, that includes suggested ratings and very little background for the
R Resource Rating Manual
impairments listed.
Management
Human
R Resource Ratio A value that is divided by another value.
Management
Human
R Resource Ratio Measurements Measurements that show how much or the amount of a quality or an item is being measured.
Management
Human
R Resource Real Wages Earnings that are deflated by a price index. Utilized as an index of the purchasing strength of the dollars received from salary.
Management
Human
Reasonable And
R Resource
Customary Charge
The typical charge made by providers of similar ability for a similar service in a particular geographic area.
Management
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Reasonable compensation is a term used by the IRS to define the compensation amount that is a deductible business
Human expense. The issue comes up because stockholder-employees can alter their wages and income distributions to avoid taxes.
Reasonable
R Resource
Compensation
Under IRC 162 (a), wages are a deductible business expense to the extent wages are reasonable. In an S Corporation, under-
Management payment 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
A sales practice in insurance sales that is typically forbidden. Rebating occurs when a sales agent offers the applicant an
R Resource Rebating
incentive to buy the policy. The rebate is typically a percentage or a dollar figure of the agent's commission.
Management
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
Human Rebuttable
presumption is established when: (1) the board or authorized committee, free of any conflict with the executive in question,
R Resource Presumption of
determines the compensation arrangement prior to effectuating the arrangement, (2) the board or committee uses appropriate
Management Reasonableness compensation comparability data in arriving at its decision and (3) the board or committee properly documents its decision in a
timely manner.
Human The (re)assignment of a job to a higher or lower grade or range in the organization‘s job worth hierarchy due to a job content
R Resource Reclassification (re)evaluation and/or significant change in the external labor market going rate for comparable jobs. (See WAC 251-01-355 -
Management Reallocation)
Human Recognition is providing attention or favorable notice to another person. Recognition can be written, verbal, or monetary. In the
R Resource Recognition workplace, the second purpose for employee recognition is to communicate and reinforce the behaviors and actions you'd like
Management to see the employee do more often.
Human
R Resource Recognition Program A process in which employees efforts and successes are recognized.
Management
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Human
The process of changing the beneficiary in a life insurance policy in which the policyowner provides a written statement to the
R Resource Recording Method
insurance company.
Management
Human
A residual or partial disability benefit that is to be paid upon satisfaction of the company's elimination period, and the employee
R Resource Recovery Benefit
experiences another loss of earnings due to a previous partial or total disability.
Management
Recruiters are employed by a company for the purpose of finding and qualifying new employees for the organization. Third
Human
party recruiters are subcontracted to by a company for the same purpose. Several different types of third party recruiters exist,
R Resource Recruiter
but the main difference between them lies in how they are compensated, up front or by a company-paid percentage of the
Management hired person's first year pay.
Human 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
R Resource
consultancy agency
recruiting firm does not typically place employees within the hiring firm and assume the administrative duties associated with
Management the employees, such as payroll taxes, insurance, etc.
Human
The process of bringing into an organization personnel who will possess the appropriate education, qualifications, skills and
R Resource Recruitment
experience for the post offered.
Management
Human
Reward payments that are given to new employees to entice them to accept the job offer. The rewards may be paid at the time
R Resource Recruitment Bonuses
the employee begins the employment, or over a pre-agreed upon period of time.
Management
Human
An individual pay rate that is above the established range maximum assigned to the job grade. Hence, the incumbent is
R Resource Red Circle Rate
usually not eligible for further base pay increases until the range maximum surpasses the individual pay rate.
Management
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Human
R Resource Redundancy The act of dismissing an employee when that employee is surplus to the requirements of the organization.
Management
Human
R Resource Re-Enlistment Bonus A monetary incentive paid to an expatriate to stay on the current assignment longer than initially expected.
Management
Human
Payments that are given to existing employees who recruit new employees as long as the new employee remains employed for
R Resource Referral Bonus
a specific period of time, or for a new client that produces new revenue for the organization.
Management
Human
R Resource Refund Annuity A life insurance annuity that specifies that if nothing else, the purchase price will be paid in benefits.
Management
Human
Regional Director Of
R Resource
Agencies (RDA)
An employee at the insurance company that is responsible for assigning PPGAs for company representation.
Management
Human
Registered Pension
R Resource
Plan
A pension plan in Canada that meets the Canadian Minister's National Revenue requirements.
Management
Human
R Resource Registered Reinsurer A reinsuer in Canada that is licensed to receive reinsurance in certain jurisdictions.
Management
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Human
Registered An individual who has passed the series 7 and series 63 exams and then sells securities and has the legal power of an agent.
R Resource
Representative This representative will typically work for a brokerage firm licensed by the NASD, NYSE and SEC.
Management
Human
Registered
R Resource
Retirement Plan
A pension plan in Quebec that has been approved and registered by the Quebec Department of Revenue.
Management
Human Registered
R Resource Retirement Savings A policy in Canada that lets Canadian citizens to create tax-sheltered accounts to accrue money for retirement.
Management Plan (RRSP)
Human
R Resource Regressive Incentive A decreasing incentive rate as performance surpasses previously determined levels.
Management
Human
The total compensation that is utilized to determine the overtime rates according the Fair Labor Standards Act. The regular
R Resource Regular Rate Of Pay
rate for an hourly employee is the hourly pay rate plus some other forms of compensation received by the employee.
Management
Human
Reinforcement
R Resource
Theory
A behavior theory that hypothesizes that employees will act in ways that provide rewards as opposed to punishment.
Management
Human
A life insurance company restoring the life insurance benefits of a policy that had been terminated due to nonpayment of
R Resource Reinstatement
premium.
Management
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Human
Reinstatement A provision in a life insurance policy that states the terms the policyowner must comply with in order for the insurance company
R Resource
Provision to reinstate a terminated policy due to nonpayment of premiums.
Management
Human
A method utilized by insurance companies to distribute insurance risk when one organization has accepted part of the risk for
R Resource Reinsurance
insurance underwritten by a different organization to share in the premium.
Management
Human
R Resource Reinsurer An insurance carrier that provides reinsurance policies to other carriers.
Management
Human
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
R Resource
To Insurance Clause disability benefit from all insurers is more than the insured's earnings.
Management
Human
Relative Value
R Resource
Schedule
A surgical procedure schedule that describes the costs for surgical procedures in units as opposed to dollars.
Management
Human
R Resource Reliability Refers to the reproducibility of results with any criterion or method. Also see validity.
Management
Human
Religious The failure of an employer to make a reasonable accommodation to allow the employee or employees to observe a religious
R Resource
Discrimination holiday or practice, except in the event that the employees absence would create hardship on the employers business.
Management
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Human
R Resource Relocation Premium A lump sum of money given to an expatriate to help with the unusually expensive costs associated with relocation.
Management
Human
A fund that provides items such as obituary notices, flowers or small gifts in the event of illness, termination, hospitalization, or
R Resource Remembrance Funds
death for the employee or for a member of the employees family. This fund is exempt from reporting for ERISA purposes.
Management
Human
Remote-Site-
R Resource
Allowance
A specific type of payment that is given to an employee if a work site is difficult to reach or isolated.
Management
Human
R Resource Remuneration The sum of the financial and nonfinancial value to the employee of all the elements in the employment package.
Management
Human Remuneration Loss Replacement Plans cover employees from wage loss due to: 1. sickness and injury, 2. weekly indemnity,
Remuneration Loss
R Resource
Replacement
3. short-term disability, 4. long-term disability. The employers contributions to these plans are not a taxable benefit to the
Management employee. However, receiving benefits under the plan is a taxable benefit to the employee.
Human Remuneration
R Resource Strategy, Philosophy, The characteristics that assist in the administration and implementation of a remuneration plan at a company.
Management Policy
Human
Renewable Term A kind of term insurance that includes a renewal clause that at the end of the term the insured can renew the coverage without
R Resource
Insurance going through evidence of insurability.
Management
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Human
Commissions that are paid to an agent for a certain period of years, typically nine, after the initial policy year. The renewal
R Resource Renewal Commission
commission rates are typically lower after the first year, and commission is only paid on the policies that remain in force.
Management
Human
R Resource Renewal Premiums Premiums that are payable after the first premium payment.
Management
Human Several definitions: 1) A stipulation in an individual health policy that discussed the conditions upon which the insurer will not
R Resource Renewal Provision renew coverage, can cancel coverage or can increase the premium, 2) An individual life insurance policy stipulation that allows
Management the policyowner to continue coverage at the end of the term without going through evidence of insurability.
Human
Renter's Buying
R Resource
Power
The salary equivalent after taking into account the cost of living in the region.
Management
Human
R Resource Replacement The giving up of an insurance policy or a part thereof in order to purchase another.
Management
Human
A summarization in visual form the numbers of incumbents in each job or family of jobs, the number of current vacancies per
R Resource Replacement charts
job and the projected future vacancies. See Succession planning.
Management
Several definitions: 1) This is a term used in the United States and it means an event indicating that a pension plan may be
Human deteriorating financially, to the extent that the plan could be terminated. Events such as those have to be reported to the
R Resource Reportable Event Pension Benefit Guaranty Corporation (PBGC). (2) An occurrence, the result of which is that a defined-contribution is materially
Management 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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Human
This is a statement or declaration by an individual making an insurance application, upon which the insurance company bases
R Resource Representation
its decision.
Management
Human
Request for proposal
R Resource
(RFP)
A document an organization sends to a vendor inviting the vendor to submit a bid for a product or, service.
Management
Human
Peculiar to Canada, this is a reserve, which the insurer is obligated to maintain by the department of insurance in the province
R Resource Required Reserve
in which the insurer operates and or by a foreign jurisdiction, if that is where the insurance company operates.
Management
Human A remedy in equity under which an insurance company may void an insurance contract or have it declared null and void. A
R Resource Rescission rescission is typically granted in a situation where there has been a misrepresentation, deemed to be material, on the
Management insurance application. See Representation.
People make decisions, not by evaluating all alternatives but by developing a model in their head of an acceptable solution.
Human
Doing this creates a situation in which economists state that wages are ―noncompensatory.‖ This means that there is some
R Resource Reservation Wage
wage below which job seekers will NOT accept a particular job offer. This is the reservation wage. Other factors will not
Management substitute for this amount. This wage may or may not be related to the going wage.
Human Several definitions: 1) Usually, this is an account, which establishes the amount needed to pay future claims. (2) If used in
R Resource Reserve terms of Life Insurance, 'Reserve' refers to policy reserve. (3) In terms of investments, 'reserve' includes savings, social
Management security payments, investment portfolios and insurance. See also policy reserve.
Human In terms of health insurance, this is an amount established as reserve for claims, which though may already have been
Reserve For Future
R Resource
Contingent Benefits
incurred may be dependent on the happening of a future event, which may be beyond the control of the insurance company.
Management May also be for deferred maternity benefits.
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Human
Reserve This is the process whereby additional policy reserves are set up, using a formula determined in a disability income policy. The
R Resource
Strengthening percentage of income lost is usually what determines the amount of the benefit. See partial disability benefit.
Management
Human
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
R Resource Resisted Claim
date.
Management
Human
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
R Resource Resource
devices, people, or other entities).
Management
Human
Resource Description
R Resource
Framework (RDF)
A computer framework that is easily understood by computers, that is utilized to express what terms and concepts mean.
Management
The regard and recognition of the absolute dignity that every human being possesses. Respect is treating people as they
Human
should be treated. Specifically, respect is indicative of compassion and consideration of others, which includes a sensitivity to
R Resource respect
and regard for the feelings and needs of others and an awareness of the effect of one's own behavior on them. Respect also
Management involves the notion of treating people justly.
Human
R Resource Responsibility A duty or set of duties describing the main objective or the reason for a job existing.
Management
Human
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
R Resource
Leave from time to time especially to those working in areas where living conditions are very difficult.
Management
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Human This is stock given to an employee or which is sold to an employee at a discount. The employee is typically prevented from
R Resource Restricted Stock selling or otherwise disposing of the stock for a specified period. The employee, owns any dividends deriving there from but if
Management he or she should leave the company before the period of restriction, then he or she forfeits the stock.
Human
A contract clause requiring executives or other highly skilled employees to refrain from seeking and obtaining employment with
R Resource Restrictive covenant
competitor organizations in a specific geographical region and for a specified period of time.
Management
Human
Describes any number of methods of reorganizing a company resulting in dramatic change within the company. Benefits are
R Resource Restructuring
usually short term but may be long term and the main objective is typically to discourage take-over bids.
Management
Human
This clause, when found in an employment contract, is there to exclude benefits from being paid on losses caused by acts
R Resource Result Clause
related to war. May also be known as war-hazard exclusion.
Management
Human
Retained Asset Established by insurance companies for the beneficiaries of life insurance, this is a money market checking account, which
R Resource
Account (RAA) bears interest.
Management
Human Several definitions: 1) In terms of reinsurance, this describes the risk that the insurance company/the ceding company keeps.
R Resource Retention (2) In terms of a company's insurance agreement, this is the part of the premium, which the company keeps for the purpose of
Management covering expenses, charges, risks and contribution to the surplus.
Human
Retention Bonus is typically used for positions that experience high levels of turnover, such as nurses. The Retention Bonus is
R Resource Retention Bonus
paid in a lump sum at the end of a specified period of employment such as 6 months or one year.
Management
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Human
This is the limit of risk that an insurance company will assume, without ceding a part of the risk to another company, on any
R Resource Retention Limit
individual.
Management
Human
Retired Lives A fund set up by some employers into which they pay monies on the behalf of employees, throughout the period of their
R Resource
Reserve employment, for the purpose of providing life insurance to the employees upon their retirement.
Management
Human
Retiree Benefit In order to protect retirement benefits and to reduce non-funded liabilities of the company, many companies create reserves for
R Resource
Reserves payment of future health and insurance obligations.
Management
Human
This is an amount agreed upon by the insurance company and the owner of the policy at the beginning of the paying period but
R Resource Retro Premium
which is to be paid at the end, if and only if the insured party's claim experience calls for it.
Management
Human
Retroactive Disability
R Resource
Benefit
Benefits payable at the on-set of disability but whose first payment does not occur until after a specified elimination period.
Management
Human Retrospective
An insurance arrangement where, the insurance company's margin / cut is waived from the premium but the insurance
R Resource Premium
company still maintains the right to 'call' the margin up to a certain percentage, depending on the insured's claim experience.
Management Arrangement
Human
An aspect of a utilization review system, which provides the insurance company with reports, periodically, on the practice
R Resource Retrospective Review
patterns of physicians and the average lengths of hospital stay.
Management
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Human A type of funding for insurance agreements, in which the insurance company collects a percentage of the due premium from
Retrospective-Rating
R Resource
Arrangement
the insured party at the beginning of the payment period and the remainder is collected at the end, unless the insured party's
Management claim experience is better than anticipated.
Human
Return On Assets This term describes the ratio of net income to total assets of an organization. This is a major financial measure, which is
R Resource
(ROA) sometimes used as a determining factor in the establishment of incentive plans.
Management
Represents a companies earnings before interest and tax divided by capital employed plus short term borrowings minus total
Human Return On Capital
intangibles. ROCE takes into account all the assets employed in the course of business including loans and measures the
R Resource Employed (ROC,
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
Management ROTC, ROCE) profit margin.
Human
Return On Equity Frequently used as an incentive plan measure, this is a term employed to describe returns due to shareholder by aligning
R Resource
(ROE) profits to the equity of stockholders.
Management
Human
Return on investment
R Resource
(ROI)
A ratio of the benefit or profit derived from a specific investment compared to the cost of the investment itself.
Management
Human
Return On Net 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
R Resource
Assets (RONA) liabilities) to the net income. May be used as a measure for executive incentive plans. Compare with ROC and ROTC.
Management
Human
Return On Sales Sometimes used to establish executive incentive plans, this is an important financial measure, which represents the ratio of net
R Resource
(ROS) income and sales.
Management
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Return On Selected
Human
(Or Employed) This is a term employed to describe the ratio of the net earnings of a company to the assets, which are relevant to those
R Resource
Assets (ROSA, earnings. This is an important measure, which is sometimes a criterion in incentive plans for the executives of a company.
Management
ROEA)
Human Return On
Frequently used as an incentive plan measure, this is a term employed to describe returns due to shareholder by aligning
R Resource Shareholders' Equity
profits to the equity of stockholders.
Management (ROSE)
Human
R Resource Revenue Money, which is generated by a company form the sale of their services or goods.
Management
Human
Revocable A term employed to describe a beneficiary to a life policy whose rights as beneficiary does not vest for so long as the insured
R Resource
Beneficiary party is alive and who may be cancelled at any time (during the life time of the party insured).
Management
Human
A revocable trust is one that may be cancelled at any time by either the grantor or by another person. Unlike the irrevocable
R Resource Revocable Trust
trust, estate taxes are not avoidable with the revocable trust. See revisionary trust and vivos trust.
Management
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
Human
methods to be developed (which would be varied and which would encompass more). As much as money is important, it has
R Resource Rewards System
been shown that both job seekers and employees value advancement possibilities, emotional rewards and learning and rank
Management 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
Also known as an 'endorsement', this is an amendment made to an insurance contract, which then becomes part of the
R Resource Rider
agreement by expanding or by limiting the existing terms.
Management
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Human
A clause, which is sometimes included in transfers / assignments of life policies, providing that, should an assignee die, his or
R Resource Right Of Survivorship
her survivors are entitled to his or her part of the transfer / assignment.
Management
Human
R Resource Right to manage The ‗right‘ of management to make decisions and to run an organization without interference from external or internal forces.
Management
Human This is the term used to describe the elimination of non-essential / redundant positions in order to reduce the size of the work
R Resource Rightsizing force to the smallest possible size that it can be without negatively affect operations. The employees who are not laid off at the
Management end of this process are known as residual employees.
Human
In organizational insurance, these are groups of insureds that represent ostensibly similar risk, in the eyes of the insurance
R Resource Risk Class
company. The most common classes of risk are, standard, substandard, preferred, non-smoker and uninsurable.
Management
Human
R Resource Risk In Insurance This is the fact that the occurrence of loss of or lack there of is uncertain.
Management
Human
The use of insurance and other strategies in an effort to minimize an organization‘s exposure to liability in the event a loss or
R Resource Risk management
injury occurs.
Management
Human
This is a term used to describe the reward for accepting an investment considered to be risky (an investment with greater risk
R Resource Risk Premium
than the U.S. Treasury Securities). See premium, risk premium and Capital Asset Pricing Model.
Management
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Human
Risk-Free Rate Of 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.
R Resource
Return Treasury Securities. A risk-free rate pf return is frequently used to determine the cost of capital.
Management
Human
This is the process of re-investing distribution from one qualified plan of a prior employer to another or investing it in an
R Resource Rollover
individual retirement account (IRA). Roll-overs are tax -free transfers of account balances.
Management
Human To receive room and board or transportation benefits tax free the employee must: (1) be on temporary assignment, (2) must
R Resource Room and Board have a permanent residence elsewhere, (3) this residence must be available for his/her use, (4) the work site be too far to
Management return to nightly, and (5) must be on assignment for over 36 hours.
Human
Roth Individual Beginning in 1998, taxpayers can make nondeductible contributions of up to $2000 a year into a new Roth Individual
R Resource
Retirement Retirement Account
Management
Human
Rucker Share Of
R Resource
Production Plan
A program whereby certain cost savings resulting from an employee's effort will be shared with all employees.
Management
Human
Safe harbors are regulations that describe certain acts or behaviors, which are not illegal under a specific law, even though
S Resource Safe Harbor
they might otherwise be illegal.
Management
Human
In terms of life insurance, this is the amount the probability of mortality (per age) is increased by actuaries in mortality tables.
S Resource Safety Margin
The safety margin provides the insurance company with added security incase of an adverse experience.
Management
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Human This is the compensation, which is received by an employee, weekly, monthly or yearly as opposed to an hourly pay. Typically,
S Resource Salaried this applies to employees of higher levels with non-repetitive jobs that may or may not be supervisory in nature. These
Management positions are exempt from the Fair Labor Standards Act provisions.
These sales representatives are actual employees of the insurer and their compensation is typically a combination of a base
Human
Salaried Sales salary plus commission. Salaried sales agents may work independently or they may work with other agents. They may make
S Resource
Agents direct sales or they may promote the insurer's product by pitching sales to middlemen. May also be known as salaried sales
Management representatives.
Human A method of distribution method, which uses the salaried employees insurance companies to sell and to service insurance
Salaried Sales
S Resource
Distribution System
policies. Salaried sales staff may either work independently or they could work with agents and are frequently used for the
Management distribution of organization insurance products.
Human This is the compensation, which is received by an employee, weekly, monthly or yearly as opposed to an hourly pay. Typically,
S Resource Salary this applies to employees of higher levels with non-repetitive jobs that may or may not be supervisory in nature. These
Management positions are exempt from the Fair Labor Standards Act provisions.
Human
Money designated, over a specific amount of time, with which to pay salaries. When structure adjustments and or individual
S Resource Salary Budget
employee adjustments are being planned, the salary budget must be taken into consideration.
Management
Human Cash payments made to an individual for services during a given year. These are payments made to employees in direct
S Resource Salary Compensation exchange for their contributions to an organization. They do not include bonuses, stock options, life insurance, 401(k) plans, or
Management other benefits.
Human
Salary Continuation A sick leave and or disability plan providing for employees to receive up to 100 percent of their salary for a certain amount of
S Resource
Plan time, should they become sick or disabled.
Management
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Human The difference between an organization's current pay and what it plans to pay in the future. Salary increases can be given
S Resource Salary Increase based upon merit (such as pay for performance), cost-of-living increases, or matching what competing organizations pay. In
Management the latter case, wage surveys are used to determine the amounts of salary increases.
Human
Salary Increase Salary increase budget represents the difference, which exists, between a company's current pay and the goal it has or where
S Resource
Budget it foresees its pay levels reaching in the future.
Management
Human
S Resource Salary Range
Management
Human
Salary Reduction Salary reduction plans are ones in which deductions are made from the employees salary prior to the calculation of income for
S Resource
Plan tax purposes.
Management
Human
The structure of job grades and pay ranges established within an organization. The salary structure may be expressed in
S Resource Salary Structure
terms of job grades, job evaluation points or policy lines.
Management
Human
Salary Structure This term is employed to describe the adjustment of a wage structure. Typically, it is expressed as the average percentage
S Resource
Change change between the range midpoints of the old structure and the new structure.
Management
Human
Salary surveys are used by organizations to determine what the 'market rate' is for jobs or skills used in their organization.
S Resource Salary Surveys
Paying a competitive wage is important for attracting and maintaining an adequate workforce.
Management
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Human 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
Salary-Reduction
S Resource
Plan
her cash compensation and for the company to contributed the difference to the employee's pension plan, insurance plan or
Management any other benefit plans available to employees.
Human
S Resource Sale Of Stock This is the exchange of shares in return for its cash value.
Management
Human
S Resource Sales Money, which is generated by a company form the sale of their services or goods.
Management
Human
S Resource Sales Channel A resource with which to access potential customers.
Management
Human
This is the amount, which is paid to members of the sales team of a company. This amount typically varies according to the
S Resource Sales Compensation
degree to which individual representatives attained or surpassed their set goals.
Management
Sales compensation plans differ from the other types of compensation plans. Due to the fact that results are measurable in
Human
Sales Compensation sales related jobs, compensation for those kinds of jobs are typically incentive (or commission) based. Compensation plans for
S Resource
Plans sales type jobs may be fall into any of the following categories, Commission only, salary only plans, Commission-plus-draw
Management plans, Salary-plus-commission plans, and or Salary-plus-bonus plans.
Human
S Resource Sales Cycle This is typically, the time from which a potential customer is identified and the time when the sale was closed.
Management
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Human
S Resource 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.
Management
Human
S Resource Salvage Value The estimated value obtainable for an asset, which has passed its useful life.
Management
In terms of statistics, this unit, which is representative of a class drawn from and studied in order to estimate the characteristics
Human
of an entire population. A random sample is where each member of the population has the same chance of being chosen.
S Resource Sample
Convenience sample, on the other hand, is when units are selected, not at random but on the basis of what is easily available
Management or accessible
Human These are possible errors, which may occur due to the lack of complete information in the analysis of jobs. May also be caused
S Resource Sampling Errors by the misinterpretation of data or answers to survey questions. May be due to bias or the misuse of procedures used in
Management statistics.
Human Set up by employers, this is plan established for the purpose of systematically providing for capital accumulation by employees,
S Resource Savings (Thrift) Plan whereby the employees make a contribution and the employer matches the contribution according to a pre-established rate
Management and limit. See 401(k).
Human
Savings Bank Life 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
S Resource
Insurance (SBLI) policy is offered. Three states, in the United States, permit SBLI (Connecticut, Massachusetts and New York).
Management
Human This is a profit sharing program whereby employees share in pre-established cost savings, which are due to employee effort.
S Resource Scanlon Plan Formal employee participation is necessary with the Scanlon Plan, as well as periodic progress reporting and an incentive
Management formula, all of which are pre-established.
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Human
Also known as a scatter plot, this is a mathematical technique that displays a picture of the existing relationship between any
S Resource Scattergram
two variable. It does this by plotting two (x,y) points.
Management
Human
Scheduled Dental This is a dental plan that pays fixed amounts of benefits for certain procedures according to a pre-established schedule. See
S Resource
Plan also combination dental plan and unscheduled dental plan.
Management
Human
This represents the number of hours that an employee is scheduled to work in a given work period as opposed to the number
S Resource Scheduled Hours
of hours actually worked.
Management
Human
The set of quantifiable job characteristics that ascribe value to a job. Typical characteristics include number of subordinates,
S Resource Scope
size of budget managed, and sales volume of the organization.
Management
Human
These are particular numbers (usually sales or number of employees) used for selecting appropriate salary survey figures to
S Resource Scope Data
determine going rates for a job or organization of jobs.
Management
Human Screening interviews are used to qualify a candidate before he or she meets with a hiring authority for possible selection.
S Resource Screening Interview Screening interviews are usually quick, efficient and low cost strategies that result in a short list of qualified candidates. These
Management interviews save time and money by eliminating unqualified candidates via phone or email.
The SEC is the principal federal regulatory agency, which regulates the securities industry. The main function of the SEC is to
Human
promote full disclosure and it exists to protect investors, in the securities market, against practices that are fraudulent and or
S Resource SEC
manipulative. SEC enforces several acts, including but not limited to the Securities Act of 1933, the Securities Exchange Act of
Management 1934, the Trust Indenture Act of 1939, the Investment Company Act of 1940 and the Investment Advisers Act.
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Human Sec Management

The annual reporting to the SEC by publicly traded corporations requires the reporting of the annual salary, bonus, and all
S Resource Compensation
other payments to the company's five top executive officers.
Management Reporting
Human
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
S Resource
Job Information being analyzed and or his direct supervisor.
Management
Human
Second-To-Die Life Life insurance, which insures two people and the benefit is paid after the death of both participants. Typically, this is designed
S Resource
Insurance to make funds available to cover estate taxes. See survivorship life insurance.
Management
Human In Canada, Section3460 of the Canadian Institute of Chartered Accounts (CICA) contain recommendations relating to
S Resource Section 3460 employer's accounting for obligations and pension costs. The recommendation made by Section3460 is that, for defined
Management benefit plans, the projected benefit method should be the determinant for pension costs for accounting purposes.
In the United States, a deferred profit sharing and or stock-bonus plan permitting participants to decide the extent to which their
Human
compensation is deferred. Contributions of participant are not taxable until that time when the funds are withdrawn.
S Resource Section 401(K) Plan
Contributions of sponsor and investment earnings are both also tax-deferred. Also known as Cash or Deferred Arrangement
Management (CODA).
This is a type of retirement plan, typically established by certain tax-exempt organizations (i.e., charities, churches and
Human hospitals). Section 403(b) plans are a creation of congress to serve as incentive to tax-exempt organizations, which ordinarily
S Resource Section 403(B) Plan would not benefit from the tax advantages of qualified pension plans. The section 403(b) plan enables such organizations to
Management 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 This the limit imposed on the amount of annual contribution that can be made on the behalf of a participant of a defined
S Resource Section 415 Limits contribution plan. There is also a limit placed on the amount of benefits payable to a participant of a defined benefit plan.
Management These limits are set under Section 415 of the Internal Revenue Code. See contribution limit and maximum benefit.
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Human Section 79 of the Internal Revenue Code provides that employer contributions to purchase company term life policy receive
S Resource Section 79 preferential tax treatment. It also lists specifications that a plan is required to meet before being considered a nondiscriminatory
Management organization term insurance plan for tax purposes.
A secular trust is a part of a nonqualified deferred compensation plan. In a secular trust, the employer contributes to an
Human
irrevocable trust to provide post-employment benefits to the executive. The executive has a nonforfeitable right to the assets of
S Resource Secular Trusts
the trust at the time the trust is established however, the employee is not entitled to these assets until an event such as the
Management employee's retirement, death, or termination of employment with the employer.
The SEC is the principal federal regulatory agency, which regulates the securities industry. The main function of the SEC is to
Human Securities And
promote full disclosure and it exists to protect investors, in the securities market, against practices that are fraudulent and or
S Resource Exchange
manipulative. SEC enforces several acts, including but not limited to the Securities Act of 1933, the Securities Exchange Act of
Management Commission (SEC) 1934, the Trust Indenture Act of 1939, the Investment Company Act of 1940 and the Investment Advisers Act.
Human
This is when an insurer divides general investment accounts into parts, corresponding to the insurance company's prime lines
S Resource Segmentation
of business.
Management
Human
Known as and called a 'separate account' in America, this is the Canadian version. A segregated account is an asset account
S Resource Segregated Account
standing apart from the general account of a company.
Management
This table includes data exclusively on people who have recently purchased life insurance. Experience has shown that such
Human
people have a lower mortality rate in the years immediately following their insurance purchase than those who have been
S Resource Select Mortality Table
insured for a longer period, probably because they have recently passed a medical examination, and because they are
Management younger.
Human
A type of benefit plan whereby the company is responsible for the administration of the plan in every way, including the
S Resource Self-Administered
administration of claims and the investment of assets.
Management
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Human Self-Administered In this kind of organization insurance plan, the policyholder and not the insurance company performs the major part of the
S Resource Organization administrative work necessary for the plan. The policyholder keeps detailed records of organization membership, handles
Management Insurance Plan routine requests (e.g., for beneficiary changes and name and address changes etc.).
Human This is a retirement plan whereby contributions for the purchase of pension benefits are made to a bank (known as the
Self-Administered
S Resource
Trusteed Plan
trustee), which in turn makes investments with the money and pays benefits to eligible employees from the monies
Management accumulated and interests earned.
Human
self-directed work A small independent, self-organized, and self-controlling group in which members plan, organize, determine, and manage their
S Resource
team duties and actions, as well as perform many other supportive functions.
Management
Human
Self-Funding (Self- A method of funding a benefit plan, where the employer bears the risk for claims. An employer may contract, if it so wishes,
S Resource
Insurance) with a third party for it to pay claims on the company's behalf.
Management
Human Self-Insured A type of insurance whereby the organization sponsor and not an insurance company, has the responsibility for the payment of
S Resource Organization claims made by the insured parties. A company may be completely or partially self-insured. See also administrative services
Management Insurance only (ASO) contract.
There are two parts of any insurance policy. (1) Risk assumption. (2) Processing of the claims. In self-insurance, the
Human
organization itself, takes on the risk of payment, typically by placing money that would have been paid as premiums into a fund
S Resource Self-Insured Plans
with which claims are paid. Self-insured plans are usually taken on by very large organizations because it would take only one
Management sizeable claim for a small fund to be wiped out.
the proper ordering of priorities. Think of it as service before self. The welfare of the organization come before the individual.
Human
This does not mean that the individual neglects to take care of family or self. Also, it does not preclude the leader from having
S Resource selfless service
a healthy ego or self esteem, nor does it preclude the leader from having a healthy sense of ambition. It does, however,
Management preclude selfish careerism.
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Human Senior Professional in A designation for experienced HR professionals provided by the Human Resource Certification Institute (HRCI). See
S Resource Human Resources www.hrci.org for initial SPHR certification. The ERI Distance Learning Center provides SPHR recertification credits. See our
Management (SPHR) Course Credit Map for a list of courses each approved for 1 SPHR recertification credit hour.
Human
S Resource Seniority A privileged status attained by length of continuous service in a campany.
Management
As its name implies, this is an account, which is separately maintained from the general accounts of a life insurance company.
Human
The separate account facilitates the management of the non-guarantee insurance product funds. The maintenance of separate
S Resource Separate Account
accounts enables insurance companies to modify their investment strategies, while not adversely affecting general accounts
Management funds. In Canada, this is known as segregated account. See investment-sensitive life insurance and general account.
Human A pension plan funding channel, whereby the assets of the pension are invested through a separate account of the insurance
Separate Account
S Resource
Contract
company. This kind of insurance policy, typically does not offer any guarantees as to investment performance. May also be
Management known as an investment facility contract.
Human Separate Health

A method of funding used for health insurance benefits meant for retirees, which is either a part of defined benefit or a defined
S Resource Benefit Account
contribution plan but in which the funds for the health benefits are held separately.
Management (401(H))
Organizations may seek to have different benefit plans for different segments of the company. They may do this by seeking to
Human
Separate Lines Of establish separate lines of business. This is done by identifying all the property and services provided to customers during the
S Resource
Business testing year and then designating which portion of the property and services is provided by each business. Employers may use
Management their discretion to determine their lines of business in a manner that conforms to their business operations.
Human
Separation From Separation from service is a termination of employment for any reason other than a quit, discharge, retirement, or death,
S Resource
Service regardless of the duration of such absence.
Management
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Human
When an employee exercises stocks in the same order that he received them, it is known as 'sequential exercise'. Though, no
S Resource Sequential Exercise
longer applicable, this was a stock option incentive requirement.
Management
Human Service providers are people such as lawyers, accountants, third party administrators, and actuaries. They are not fiduciaries
S Resource Service Providers as long as they stay within professional boundaries. However, fees paid to service providers must be reasonable compared to
Management the services received.
Human
The word settlement may refer to various things. An action, revocable in nature, which relieves a plan sponsor of the obligation
S Resource Settlement
to pay pension benefit. See financial benefit.
Management
Human
Settlement An arrangement between an insurance company and a policyowner (or beneficiary) relating to the method in which the
S Resource
Agreement insurance company will pay proceeds of the policy to the beneficiary. See settlement options.
Management
Human
Settlement Option
S Resource
Payments
Payments made, from time to time, by insurance companies, instead of lump sum payments of the proceeds of life insurance.
Management
Human These are the option given to Social Security Disability Income (SSDI) policyowners (or beneficiaries). In America, this is long-
S Resource Settlement Options term income program for those who are disabled yet who are under 65 and who have paid a particular amount of Social
Management Security tax for a specified amount of time.
Human
S Resource seven tools of quality Tools that help an organization understand its processes in order to improve them
Management
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Human This is a term employed to describe the continuation of the salary of an employee after he or she has been terminated, which
Severance / Benefits
S Resource
Continuation
is paid either on a continuation basis or in a lump sum. The amount of the severance is typically contingent upon the length of
Management time the employee served the company.
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
Human
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
S Resource Severance Pay
pay is considered a welfare plans and is subject to the Employee Retirement Income Security Act's reporting, disclosure, and
Management fiduciary standards. Severance payments are taxable to employees and usually are subject to federal income tax withholding
and FICA.
Human 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
Sex Discrimination /
S Resource 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.
Management
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
Human
hostile work environment is proven. Quid pro quo cases require that the unwelcome sexual demand on the employee be made
S Resource Sexual Harassment
by someone with the ability to grant or deny an employee some benefit. Also, there must be a link between the demand for sex
Management 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
Shapes Of
S Resource
Distribution
This a term employed to describe data, as charted on a graph.
Management
Several definitions: 1) In terms of corporations, a shareholder is an individual who owns shares (of stock) in a company.
Human
Ownership of shares of stock comes with the right to dividends when it is declared and voting rights in certain company matters
S Resource Shareholder
(e.g., board of directors). (2) May also be an individual who owns shares in a mutual fund. Both my also be known as
Management stockholder.
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Human
Shareholder This is a formula used by companies and which is related to bonus plans whereby a pre-established percent of the profit is set
S Resource
Protection Formula aside to be distributed to shareholders, before any of it is made available to employees as bonus awards.
Management
Human
This is the amount with which a company's assets surpasses its liabilities. It represents the net-worth of a company, its true
S Resource Shareholders' Equity
value. Also known as Net Worth.
Management
Human
Sherman Anti-Trust This Federal law was enacted in order to protect the general public from corporate monopolies. This law has, since 1908
S Resource
Act (1890) applied to Unions, who have used the statute to ensure that competitive wages are paid.
Management
Human 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
Shift Differentials
S Resource
(premiums)
hardship, or if competitive organizations provide a similar premium. Shift differentials usually are expressed as a percentage
Management or in cents per hour.
Human Short-Form This is an application designed to protect against the re-enrollment of insureds whose conditions have changed dramatically
S Resource Reinstatement since the last due date of their premium. This application is typically used for reinstatements, which were requested within a
Management Application relatively short period, (e.g., 30 to 90, days after the end of the grace period).
Human Short-Term
A term employed by companies to describe assignments, which lasts over three months, known as 'business trip' but less than
S Resource Assignment
a year, known also as 'expatriate assignment'. The premiums which become payable varies from company to company.
Management (International)
Human
Short-Term Disability
S Resource
Income Insurance
This is insurance that provides benefit for both short term and long-term (the first part of long-term) disability.
Management
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Human A benefit plan, whose goal is to provide income to employees who are absent from work either through illness or an accident
Short-Term Disability
S Resource
Plan
but only when the employee is expected to return to his or her regular duties within a particular amount of time (typically 6
Management months).
Human
Short-Term
S Resource
Incentives
Rewards, which are based on the achievement of short-term goals (typically 12 months or less).
Management
The U.S. Standard Industrial Classification (SIC) system is a U.S. federally designed system that identifies companies by
Human
industry with a standard numbering system. It provides other information and is used by securities analysts, market
S Resource SIC
researchers, and others. The SIC is being replaced by the North American Industry Classification System (NAICS). The current
Management SIC Division Structure may be found online at www.osha.gov/cgi-bin/sic/sicser5.
Sick leave means providing pay for employees when not working due to illness or injury. It may start on the first day of illness
Human or after two or three days. In developing a sick leave policy the following points need to be considered: (1) When are
S Resource Sick Leave employees eligible? (2) Will proof of sickness be required? (3) What pay schedule will be used and will the employee receive
Management 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
S Resource Simple Plan First allowed in 1997, this is a kind of qualified retirement plan (IRA or 401(k)) for companies with over 100 employees.
Management
This is a pension plan that an employer may make contributions retirement income to, using individual retirement annuities or
Human
Simplified Employee accounts. Under the SEP employers may directly contribute directly to Individual Retirement Accounts, amounts, which have
S Resource
Pension (SEP) been deferred by employees. Typically the SEP is cheaper to operate and therefore most commonly used by employers who
Management are unable to afford more complex pension plans.
Human This law is typically enacted on a state or province level and it provides that, should the insured and the first beneficiary both
Simultaneous Death
S Resource
Act
die under such conditions that it is not possible to determine who died first, it will be deemed that the insured in fact survived
Management the first (primary) beneficiary (unless there exists a clause in the policy to the contrary.
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Human
Single Premium This is an annuity, which is purchased with a single, one time payment / premium. May also be known as an immediate or a
S Resource
Annuity deferred annuity.
Management
Human
Single Purchase This is an annuity, which is purchased with a single, one time payment / premium. May also be known as an immediate or a
S Resource
Annuity Contract deferred annuity.
Management
Human Single-Premium
This is an annuity, which is purchased with a single, one time payment / premium. May also be known as an immediate or a
S Resource Deferred Annuity
deferred annuity.
Management (SPDA)
Human This is an insurance premium payment arrangement for plans that are contributory in nature, where at the moment that the
Single-Premium
S Resource
Method
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
Management the principal amount of the loan. May be contrasted with monthly outstanding balance method.
Human
A remuneration policy under which all employees in a given job are paid at the same rate instead of being placed in a pay
S Resource Single-rate System
range. Generally applies in situations where there is little room for variation in job performance or skill level.
Management
This is a pre-existing condition exclusion clause typically found in credit disability insurance policies, which provides that a
Human
disability will not be covered if the party insured was treated for the disability during the six months preceding the effective date
S Resource 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
Management disabled from the same ailment / condition within six month post commencement of coverage date.
Human
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
S Resource Skewed Distribution
direction.
Management
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Human A person-based remuneration system based on the repertoire of jobs an employee can perform rather than the specific job that
S Resource Skill-based Pay the employee may be doing at a particular time. Pay increases generally are associated with the addition and/or improvement
Management of the skills of an individual employee, as opposed to better performance or seniority within the system.
Human
Those abilities that people develop and use with people, with ideas, and with things, hence, the division of interpersonal,
S Resource skills (competencies)
cognitive, and technical skills.
Management
Typically used by employment agencies, personnel departments and contract programming companies who wish to set up and
Human
maintain a file for candidates and their associated qualifications. Once all the data is in place and information about a potential
S Resource Skills Inventory
candidate is entered along with particular job requirements, then a search can be done for the candidate or candidates who
Management meet the requirements.
Human The slope of the line represents how much each unit change of the independent variable X changes the dependent variable Y.
S Resource Slope 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
Management 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
The process of placing a position / a job into a hierarchy of jobs using other methods of evaluating jobs. This process entails
S Resource Slotting
the comparison of one job to others, already exist in the hierarchy of jobs.
Management
Human Small Business Job This statute simplifies pension provision. SBJPA also extends the tax breaks provided by employers for educational
S Resource Protection Act assistance, increases the federal minimum wage, provides special rules on employee/independent contractor determinations,
Management (SBJPA) and allows employers to establish new qualified adoption assistance benefits for employees.
Human
Small Estates These statutes makes it possible for an insurance company to pay fairly small amount of the policy proceeds to an estate
S Resource
Statutes without having to get involved in court proceedings.
Management
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Human
Small Organization A species of organization life insurance plan, which uses organization underwriting techniques but adds a certain degree of
S Resource
Insurance Plan simplified individual underwriting and is designed to insure groups of 2 to 25 people. Also known as baby organization plan.
Management
Human
Small-Group
S Resource
Incentive
Any incentive plan, which focuses, primarily on the performance of a small group (typically a work team).
Management
The SOC is a Canadian system used by statistical agencies to categorize workers into occupational groups so as to collect,
Human
calculate, and disseminate data. Workers will be grouped into a particular classification of occupation (of which there are over
S Resource SOC
820) depending on their definition. To make classification easier, occupations will be combined so as to form 23 main groups,
Management 96 sub-groups and 449 broad categories of occupations.
Human
S Resource Social benefits FInancial help in time of sickness, old age, or uneployment.
Management
Human
Social Insurance This is medical expense insurance, which is sold to provide for benefits, which compliment that available from a determined
S Resource
Supplement Policy government health insurance plan.
Management
Human
Social Security is a federal government program that is part way between a tax plan and social insurance. Employers and
S Resource Social Security
employees pay payroll taxes to fund its two programs - Old Age Survivors' and Disability Insurance
Management
Human
S Resource Social Security Act The Social Security Act is the Act passed in 1935 establishing the social security system in the United States.
Management
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Human
Social Security The Social Security Administration is the U.S. government bureau that administers the social security system. There are 12
S Resource
Administration (SSA) regional offices, as well as offices in most major cities in the United States.
Management
Human
Social Security Level Under this option, employees may chose to have monthly annuity payments (before the age of 62 or 65) increased actuarially
S Resource
Income Option and thereafter, that payments be decreased.
Management
Generally known as FICA taxes, after the Federal Insurance Contribution Act, these taxes are imposed on wages paid to
Human
employees to fund Social Security benefits for employees. Both the employer and the employee must pay FICA tax on an
S Resource Social Security Tax
employee's annual wages from the employer up to the Social Security taxable wage base. This tax is divided into 2
Management components: Medicare and the Old Age Survivors and Disability Insurance (OASDI) component.
Human
S Resource Sole Proprietor A sole proprietor is the 100% owner of a business, which is not incorporated.
Management
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
Human
Sole Proprietorship salary of the person employed to run the business after the owner of the company dies, is disabled or in to compensate the
S Resource
Insurance family of the owner for loss of possible / potential income, should the business fail after the disability or death of the sole
Management proprietor.
Human
Insurance companies frequently work with a general agent or sometimes a branch manager. The soliciting agent actually
S Resource Soliciting Agent
makes contact with potential customers, collects the first premium payments and delivers policies. See Insurance agent.
Management
The amount of time required by a typical worker to acquire skills for average performance. There are nine levels of time
Human
Special Vocational duration required by a typical worker to acquire skills for average performance in the subject position, 9 being the highest and 1
S Resource
Preparation (SVP) being the lowest. For more information on SVP, please refer to the Dictionary of Occupational TiItles or U.S. Department of
Management Labor.
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Human Ordinarily, payment by the employer of room and board and/or transportation costs are considered taxable income. Exceptions
Special Work
S Resource
Location
may be made for special work locations and remote locations. In addition, those employees living in northern areas of Canada
Management may be eligible for a tax deduction.
Human
Specified Fringe Benefit plans for specific purposes including group-term life, accident and health, group legal services, cafeteria plans,
S Resource
Benefits educational assistance programs, and dependent care assistance programs.
Management
Human
S Resource Spendable Income This is the total income minus housing expenses, taxes, savings, and life insurance.
Management
Human
S Resource Split Credit Credit is given to more than one individual.
Management
Human
Split Dollar Life
S Resource
Insurance
The employer and employee share in the expenses, equity and death benefits of the policy.
Management
Human The use of two or more funding agencies for the same pension plan. An arrangement whereby a portion of the contributions to
S Resource Split Funding the pension plan are paid to a life insurance company and the remainder of the contributions are invested through a corporate
Management trustee, primarily in equities.
Human Spot Awards are a frequently administered ―alternative pay‖ program for non-exempt and exempt non-management personnel.
S Resource Spot Awards They are usually cash or gift awards delivered ―on-the-spot‖ for extraordinary performance, completion of a project, and/or
Management individual recognition. These awards are typically administered at the discretion of management.
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Human Spouse And

S Resource Children's Insurance An additional rider to the life insurance plan that covers a spouse and child.
Management Rider
Human
Trusts might be 'springing,' meaning that assets are transferred to the trust upon a triggering event - usually a change of
S Resource Springing Rabbi Trust
control.
Management
Human
Not paying benefits under a public pension plan. When there is no integration of two plans- private and public. This is
S Resource Stacking
considered stacking.
Management
Human
S Resource Stakeholder Any party that has an interest ('stake') in a firm.
Management
Human
An established norm against which measurements are compared. The time allowed to perform a task including the quality and
S Resource standard
quantity of work to be produced.
Management
Human
Standard And Poors
S Resource
(S&P)
Investment rating service.
Management
Human
S Resource Standard Deviation The square root of the variance. A measure of dispersion of a set of data from its mean.
Management
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Human
Standard Error Of
S Resource
Estimate
An estimate of the variability or random error of the sample to the population.
Management
Human Standard Industrial

This federally designed system identifies companies by industry with a standard numbering system. It provides other
S Resource Classification System
information and is used by securities analysts, market researchers, and others.
Management (SIC)
Standard
Human
Metropolitan
S Resource
Statistical Area
A central city area and its surrounding suburbs and small jurisdictions.
Management
(SMSA)
Human
Standard
S Resource
Nonforfeiture Law
State law stating what the minimum benefits a life-insurance policy can have.
Management
The SOC is a Canadian system used by statistical agencies to categorize workers into occupational groups so as to collect,
Human Standard
calculate, and disseminate data. Workers will be grouped into a particular classification of occupation (of which there are over
S Resource Occupational Code
820) depending on their definition. To make classification easier, occupations will be combined so as to form 23 main groups,
Management (SOC) 96 sub-groups and 449 broad categories of occupations.
Human
Standard Plan
S Resource
Termination
The termination of a plan that has sufficient funds to pay for any and all benefits the participants may be entitled to.
Management
Human
Standard Premium
S Resource
Rate
The premium rate for a person considered to be average in the chance of experiencing a loss.
Management
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Human
S Resource Standard Rate Designated rate for a specific job classification, established by evaluation or performance.
Management
Human
In life and health insurance, a person entitled to insurance protection without extra rating or special restrictions, a risk meeting
S Resource Standard Risk Class
the same conditions as the tabular risks on which rates are based.
Management
Human
The length of time that should be required to perform a task through one complete cycle. It assumes an average worker
S Resource standard time
follows prescribed procedures and allows time for rest to overcome fatigue.
Management
Human
S Resource Starting Rate Refers to the wage or salary to which an employee is assigned upon entering the job.
Management
Human State Disability

A plan for accident and sickness, or disability insurance required by state legislation of those employers doing business in that
S Resource Insurance Program
particular state.
Management (SDI)
Human The State Unemployment Tax Act (SUTA) provides that employers pay a payroll tax that supplies funds at the state level that
State Unemployment
S Resource
Tax Act (SUTA)
are used to provide benefits for unemployed workers. The amount paid by the employer depends upon the experience of
Management claims by former employees on the fund.
Human
S Resource Statute Of Limitations State law that sets a time limit within which legal action must be taken.
Management
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Human
Statutory Accounting Principles required by statute that must be followed by an insurance company when submitting its financial statements to the
S Resource
Practices (SAP) various state insurance departments. Such principles differ from the Generally Accepted Accounting Principles (GAAP).
Management
Human Benefits that are required by statutory law. In the United States, for example, workers' compensation, Social Security and
S Resource Statutory Benefits unemployment insurance are required, benefits vary among countries. Companies operating in foreign countries must comply
Management with host country compensation and benefits mandates.
Human
S Resource Statutory Reserve In insurance, especially life, a reserve, either specific or general, required by law.
Management
Human
Statutory Stock
S Resource
Options
Gives an employee a right to purchase company stock usually at a bargain price.
Management
Human
Standard progression pay rates that are established within a pay range. Step rates usually are a function of time in grade and
S Resource Step Rates
are often referred to as ―automatic‖. However, they can be variable or can be used in conjunction with merit programs.
Management
Human A certificate of ownership, a contract between the issuing corporation and the owner that gives the latter an interest in the
S Resource Stock management of the corporation, the right to participate in profits and, if the corporation is dissolved, a claim upon assets
Management remaining from all debts that have been paid.
Human
Stock Appreciation An executive can receive the difference between the stock option price and current market price of the company's stock
S Resource
Rights (SAR) without buying any, often used in conjunction with an incentive stock option.
Management
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A qualified defined contribution plan established and maintained by an employer to provide benefits similar to those of a profit-
Human
sharing plan, except that the contributions by the employer are not necessarily dependent upon profits and the benefits are
S Resource Stock Bonus Plan
distributable in stock of the employer company. For the purpose of allocating and distributing the stock of the employer that is
Management to be shared among employees or their beneficiaries, such a plan is subject to the same requirements as a profit-sharing plan.
A qualified defined contribution plan established and maintained by an employer to provide benefits similar to those of a profit-
Human
Stock Bonus sharing plan, except that the contributions by the employer are not necessarily dependent upon profits and the benefits are
S Resource
Planning distributable in stock of the employer company. For the purpose of allocating and distributing the stock of the employer that is
Management to be shared among employees or their beneficiaries, such a plan is subject to the same requirements as a profit-sharing plan.
Human
Stock Insurance
S Resource
Company
An insurance company that is owned by people who buy shares of the company's stock.
Management
Human
S Resource Stock Option The right, but not the obligation, to buy company stock at a certain price within a particular period of time.
Management
Human
Stock Option A special benefit that some companies offer to their employees to purchase stock at a fixed price. Companies usually award
S Resource
Incentive incentive stock options as a bonus for performance, or as an incentive to get you to work harder.
Management
Human
Consisting of one or more shares that have been purchased, which then entitles the owner to a share of the company, and
S Resource Stock Ownership
declared dividends.
Management
A plan that allows senior management or other key personnel to purchase employer stock. Certain restrictions apply: (1) the
Human 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
S Resource
(Nonqualified)
stockholders cannot sell the stock for a specific time period. (Qualified) A program under which employees buy shares in the
Management 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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Human
Stock Repurchase
S Resource
Insurance
Insurance used to repurchase company stock from a deceased stockholder.
Management
Human
S Resource Stock Sale When a buyer takes ownership, full, of the company entirely.
Management
Human A division made of the capital stock of a corporation to create more shares, primarily to improve marketability and heighten
S Resource Stock Split investor interest. Stock splits are generally on a two-for-one basis (two shares of new stock are made exchangeable for one
Management share of old).
Human
S Resource Stock Swap Allowing an executive to deliver already-owned stock, instead of paying cash, to exercise a stock option.
Management
Human
An insurance provision stating that the insurance company will pay all expenses after a set amount of out-of-pocket expenses
S Resource Stop-Loss Provision
has been paid.
Management
Human
S Resource Straight Life Annuity An annuity that lasts for the length of the annuitant's life and stops all payments at the time of death.
Management
Human
Straight Life Income An insurance option that states that benefit payments will be made to the beneficiary until the beneficiary dies and that at that
S Resource
Option time all payments cease.
Management
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Human
Straight Life
S Resource
Insurance
Whole life insurance on which premiums are payable for life.
Management
Human
Straight Line
S Resource
Depreciation
A method of calculating the depreciation of an asset, which assumes the asset, will lose an equal amount of value each year.
Management
Human
Strategic Business
S Resource
Unit (SBU)
Independent business unit within a company that markets its own products.
Management
Human
S Resource Strategic HRM The process of aligning human resources more closely to the strategic and operating objectives of the organization.
Management
Human
The process of identifying an organization's long-term goals and objectives and then determining the best approach for
S Resource Strategic Planning
achieving those goals and objectives.
Management
Human
S Resource Strength Rating The overall physical strength required to perform a job is expressed as a strength rating.
Management
Human
The real or perceived demand on the mind, emotions, spirit, or body. Too much stress puts an undo amount of pressure upon
S Resource stress
us and drives us into a state of tension. Controlled stress is good as it is what motivates us.
Management
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Human
S Resource Strikes To refuse to continue working because of an argument with an employer about working conditions, pay levels or job losses.
Management
Human
Subchapter S 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
S Resource
Corporation shareholders who then are required to report the gains on their individual tax returns.
Management
Human An individual who shows a high degree of expertise at performing a job, task, or skill in an organization. For example, a
Subject Matter Expert
S Resource
(SME)
customer service agent, account manager, or website programmer might qualify if the individual is an authority on the subject
Management matter.
Human
Subpoena / 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
S Resource
Subpeonas law.
Management
Human Taking over of a debt from the original creditor. In insurance, subrogation is the right of the employer or insurance company to
S Resource Subrogation recoup benefits paid to a participant through a legal suit, if the action causing the disability and subsequent expenses was the
Management fault of another person.
Human
S Resource Substandard Broker A broker that specializes in substandard risk.
Management
Human
Substandard
S Resource
Premium Rate
A premium rate, generally higher than a standard premium, charged on a substandard risk.
Management
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Human
Substandard Risk
S Resource
Class
A risk class with a greater chance of loss than the average person.
Management
Human
Succession planning is a process whereby an organization ensures that employees are recruited and developed to fill each key
S Resource Succession Planning
role within the company. Succession planning ensures you can fill key roles from within your organization.
Management
Human
S Resource Successor Employers A successor employer is one who has taken over the assets and liabilities of another company.
Management
Human
S Resource Successor Owner A person designated to become the owner of a life insurance policy if the owner dies.
Management
Human
S Resource Suggestions Awards Allows employees a monetary or incentive reward for company savings ideas or a unique idea.
Management
Human
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
S Resource Suicide Clause
a set period of time following the issue of the insurance policy.)
Management
Human
Summary Annual
S Resource
Reports (SAR)
Summaries report on the financial status of an employee benefit plan, must be given to participants.
Management
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Human
S Resource Summary dismissal The act of dismissing personnel immediately, usually because the person has committed some act of Gross Misconduct.
Management
Human
Summary Plan A requirement of ERISA for a written statement of a plan in an easy-to-read form, including a statement of eligibility, coverage,
S Resource
Description (SPD) employee rights and appeal procedure. It is provided to participants, beneficiaries and, upon request, the Department of Labor.
Management
Human
Plan or scheme that provides benefits in the event of retirement, death or disability. Can refer to private company plans as well
S Resource Superannuation
as industry or union funds. Frequently used in British Commonwealth countries.
Management
Human
Superimposed Major A medical plan used in conjunction with basic medical plans that provides coverage if expenses exceed what is covered by the
S Resource
Medical Plan basic plans.
Management
Human
Superintendent Of
S Resource
Insurance
The head of the Bureau of Insurance.
Management
Human
The ability to establish procedures for monitoring and regulating processes, tasks, or activities of employees and one's own
S Resource supervising
job, taking actions to monitor the results of delegated tasks or projects.
Management
Human
S Resource Supper Money A fringe benefit for employees working overtime. It is a monetary allowance provided for an evening meal.
Management
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Supplemental Death
Human
Benefits
S Resource
(Supplemental Life
This is an additional layer of coverage you may purchase to help financially protect your family if you die.
Management
Insurance)
Human
Supplemental
S Resource
Disability Benefits
A benefit provided that goes beyond the company provided disability plans.
Management
Human Supplemental
S Resource Executive Retirement This is an additional layer of coverage you may purchase to help financially protect your family if you die.
Management Plan (SERP)
Human
Supplemental Long
S Resource
Term Disability Plans
A long-term disability that goes above and beyond the standard plan.
Management
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
Human the basic plan covers the expenses. Expenses not covered by the basic plan can be reimbursed under the supplemental major
Supplemental Major
S Resource
Medical Insurance
medical plan, usually after the satisfaction of a corridor type deductible. After the covered expenses exceed the deductible, the
Management 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.
A Supplemental Nurse is employed by an agency and may work either short or long-term assignments in a hospital or other
Human
health care facility. Supplemental Nurses provide specific nursing skills and may be referred to as a ―traveling nurse
S Resource Supplemental Nurse
professional.‖ Pay rates for these positions are usually better than per diem or staff rates with flexibility in scheduling or shift
Management preference.
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Human Supplemental
S Resource Organization Life Additional life insurance that is purchased to provide benefit coverage beyond the company sponsored plan.
Human Supplemental
S Resource Unemployment Amounts provided under a labor contract as additions or supplements to the unemployment compensation provided by law.
Management Benefits (SUB)
Supplemental
Human
Unemployment Plan or scheme that provides benefits in the event of retirement, death or disability. Can refer to private company plans as well
S Resource
Compensation as industry or union funds. Frequently used in British Commonwealth countries.
Management
Benefits
Human Benefits provided by a pension plan in addition to regular retirement benefits. Supplemental benefits vary according to the
Supplementary
S Resource
Benefit Rider
terms of a plan and include such items as the payment of benefits in the event of terminations, death, disability or early
Management retirement.
Human
Supplementary A document or rider attached to an insurance policy and made a part of it, providing for an additional benefit or some
S Resource
Contract modification of a benefit already contained in the policy.
Management
Human Supplementary
S Resource Contract With Life A supplementary contract or annuity in which the duration of the payment period depends on the lifetime of the beneficiary.
Management Contiguous (WLC)
Human Supplementary
S Resource Contract Without Life A supplementary contract or annuity where the proceeds of a life insurance policy are held at interest or paid in installments.
Management Contingencies
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Human
Supplementary The Fair Credit Reporting Act requires it. Notice to a consumer of the nature and scope of the investigation mentioned in the
S Resource
Notice pre-notice form that an insurance company has sent to the client.
Management
Human
Supplementary Shift
S Resource
Bonus
A Supplementary Shift Bonus is sometimes used to reward employees who fill in for another employee who calls in sick.
Management
Human In a basic medical expense health insurance policy, the list of cash allowances that are payable for various types of surgery,
S Resource Surgical Schedule with the respective maximum amounts payable based upon the severity of the medical procedure. The stipulated maximum
Management usually covers all professional fees involved (e.g., surgeon, anesthesiologist).
Human
S Resource Surplus An excess amount. In financial terms, this is the remainder of assets left after debts, expenses, and liabilities are deducted.‖
Management
Human
S Resource Surrender Charge A charge for the cancellation of an insurance or annuity policy.
Management
Human In life insurance, a method of comparing costs of similar policies by using an index that takes into account the time value of
Surrender Cost Index
S Resource
(SCI)
money due at different times through interest adjustments to the annual premiums, dividends and cash value increases at an
Management assumed interest rate.
Human
S Resource Survey An examination of opinions, behavior etc., made by asking people questions.
Management
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Human
S Resource Surviving Spouse A widow or widower.
Management
Human
Survivor Income A type of group life insurance, which provides income benefits if a 'qualified survivor' survives the insured. Usually the qualified
S Resource
Benefit survivor category includes only the insured's spouse and children.
Management
Human
Survivorship Life
S Resource
Insurance
Life insurance covering two people that do not pay benefits until both have died.
Management
Human
S Resource Suspension A form of disciplinary action resulting in an employee being sent home without pay for a specified period of time.
Management
Human
Specific Vocational Preparation is defined as the time required by the average worker to acquire techniques and to gain the
S Resource SVP
necessary knowledge and information in order to perform averagely in a particular job or work situation.
Management
Human
T Resource Tactical Planning Deals primarily with the implementation phase of the planning process.
Management
Human A code within a data structure that gives instructions for formatting or other actions. World Wide Web documents are set up
T Resource Tag using HTML tags, which serve various functions such as controlling the styling of text and placement of graphic elements and
Management providing links to interactive programs and scripts.
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Human
T Resource Take Home Pay Pay actually received by an employee after adding on bonuses, but deducting taxes.
Management
Human
Talent Management, often times referred to as Human Capital Management, is the process recruiting, managing, assessing,
T Resource Talent Management
developing and maintaining an organization‘s most important resource—it‘s people!
Management
Human
T Resource 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.)
Management
Human Contributions are based upon an actuarial valuation designed to provide a target benefit to each participant upon retirement.
T Resource Target Benefits The plan does not guarantee that such benefit will be paid, its only obligation is to pay whatever benefit can be provided by the
Management amount in the participant's account.
Human
The organization‘s planned average (or total) salary for the organization, group or individual at year-end as a percent of the
T Resource Target Compa-ratio
corresponding average (or total) midpoint.
Management
Human
T Resource Target Compensation Expected pay for a job or position. This would include all avenues of compensation. (Base pay, incentives, bonuses, etc.)
Management
Human
T Resource Target Performance Expected sales results.
Management
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Human
Target Total
T Resource
Compensation
The complete cash compensation available to sales representative, for achieving sales goals.
Management
Human
T Resource Task Actions to accomplish an objective.
Management
Human
Tax Deferred Annuity Offered by savings and loans, brokers and others, it offers high interest rates when the account is opened, but future interest
T Resource
(Tda) rates are not guaranteed. Tax is deferred on the account until money is withdrawn.
Management
Human A tax reimbursement system intended to ensure the expatriate neither gains nor loses, with regard to income tax, from
T Resource Tax Equalization undertaking an expatriate assignment. A hypothetical tax amount is deducted and the company then meets any additional host
Management country tax liability on the entire package.
Lowered limits on contributions and benefits for corporate plans. Allowed certain loans from plans to be treated as distributions.
Human Tax Equity And Fiscal
Reduced estate tax exclusion for retirement plan death benefits to maximum of $100,000. Repealed special Keogh plan and
T Resource Responsibility Act Of
subchapter S restrictions. Added 'top-heavy' plan requirements. Stopped employers and health plans from forcing employees
Management 1982 (TEFRA) ages 65 to 69 to use Medicare rather than group health plan.
Human Under this system, the expatriate pays no more in income tax than if they had remained at home, the company meeting the
T Resource Tax Protection host tax bill in excess of the assumed home country liability. No hypothetical tax deductions are made, thereby allowing the
Management expatriate to gain where the host country tax liability is lower than the home country assumed liability.
Human
Tax Reform Act Of Dictated extensive changes in the law governing the qualifications of pension and profit sharing plans and the tax treatment of
T Resource
1986 employers and employees. Imposed the comprehensive nondiscrimination rules of IRC Section 89.
Management
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Human
Tax Sheltered This describes special regulation under IRC Sections 501(c)(3) and 403(b) wherein employees of certain institutions may
T Resource
Annuities (TSAs) reduce their income by permitting the employer to pay part of their earned income into a deferred annuity.
Management
Human
Tax Sheltered This describes special regulation under IRC Sections 501(c)(3) and 403(b) wherein employees of certain institutions may
T Resource
Annuity (TSA) reduce their income by permitting the employer to pay part of their earned income into a deferred annuity.
Management
Human
In Canada, there are two criteria for determining if a benefit is taxable: (1) The person receiving the benefit must have received
T Resource Taxable Benefits
the benefit as part of the employment relationship. (2) The person must receive or enjoy the benefit.
Management
Human Taxpayer
T Resource Identification Number Your social security number (SSN) for yourself as an individual, or your employer identification number (EIN) for your business.
Management (TIN)
Human
Third Country Nationals are citizens of one country who are employed by a company headquartered in a second country to
T Resource TCN
work in a third country.
Management
Human
T Resource Telecommuting Working at home by using a computer terminal electronically linked to one's place of employment.
Management
Human
Temporary Insurance An agreement that provides temporary insurance for a short period of time, such as during the period in which regular
T Resource
Agreements insurance is being written.
Management
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Human
Temporary Life
T Resource
Annuity
A series of payments, structured like an annuity that continues for a limited amount of time.
Management
Human
T Resource Ten-Day Free Look Free Examination.
Management
Human
T Resource Term Insurance Insurance in which the benefit is payable only if the loss occurs during a specific period of time.
Management
Human
Term Or Period A contract that provides an income for a specified number of years, regardless of life or death. If an annuitant dies, his or her
T Resource
Certain beneficiary will receive payments for the remaining number of specified years.
Management
Human
A life insurance policy dividend option under which policy dividends are used as a net single premium to purchase one-year
T Resource Term Policy Dividend
term insurance.
Management
Human
Termination
T Resource
Expenses
The cost of processing death benefit claims and cash surrenders.
Management
Human
Termination
T Resource
Indemnity
Obligation by law for payments on separation based on age, service or reason for termination.
Management
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Human
T Resource Territory Area a salesperson covers.
Management
Human
Testamentary
T Resource
Disposition
How the terms of a will divide the testator's (will writer's) estate, including specific gifts to named beneficiaries.
Management
A management philosophy developed by Dr. Eliyahu M. Goldratt that is broken down into three interrelated areas - logistics,
Human performance measurement, and logical thinking. Logistics include drum-buffer-rope scheduling, buffer management, and VAT
theory of constraints
T Resource
(TOC)
analysis. Performance measurement includes throughput, inventory and operating expense, and the five focusing steps.
Management 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
Third Country
T Resource
National (TCN)
Citizens of one country who are employed by a company headquartered in a second country to work in a third country.
Management
Human
Third Party The party to an employee benefit plan that may collect premiums, pay claims and/or provide administrative services. Usually
T Resource
Administration (TPA) an out-of-house professional firm providing administrative services for employee benefit plans.
Management
Human
Third Party The party to an employee benefit plan that may collect premiums, pay claims and/or provides administrative services. Usually
T Resource
Administrator an out-of-house professional firm providing administrative services for employee benefit plans.
Management
Human
Third Party
T Resource
Application
An insurance application submitted by a person or party other than the proposed insured.
Management
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Human
Third Party A person not a party to a contract, yet who has legally enforceable rights under the contract. Such a person might be a life
T Resource
Beneficiary insurance beneficiary, a mortgagee holding an assignment, or a member of a group insurance plan.
Management
A method of marketing individual insurance to groups. In the third-party endorsement method, a life insurance company makes
Human
Third Party an agreement with an organization (such as a club, a business, or a professional association) to sell individual insurance to
T Resource
Endorsement members or employees of the organization. The organization endorses the insurer's products, but the group members are free
Management to buy the products or not.
Human
T Resource Third Party Insurance Insurance coverage applied for by someone other than the proposed insured.
Management
Human
Three Factor
T Resource
Contribution Method
A method for calculating policy dividends, considering separately the contributions arising from interest, mortality, and loading.
Management
Human
T Resource Threshold A starting-point Example, on the threshold of a new career.
Management
Human
A defined contribution plan to which employees make contributions on an after tax basis, usually as a percentage of salary.
T Resource Thrift Plans
The employer also makes incentive matching or partially matching contributions on behalf of the participating employees.
Management
Human
A remuneration system that differentiates salary based on time of hire (i.e., new employees are paid less than current
T Resource Tiered Pay Plan
employees for performing the same or similar jobs) as well as on nature of work performed.
Management
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Human
Compensation that is paid to the employee, based on pay for holidays, vacation, sick leave, lunch periods, and other approved
T Resource Time Off With Pay
time off.
Management
Human
Time Span Of
T Resource
Discretion
A non-economic definition of job value.
Management
Human
T Resource Timing Of Payment When payment is received early, current, or deferred.
Management
Human
An unfunded deferred compensation plan or welfare plan that is maintained to provide deferred compensation for a select
T Resource Top Hat Plans
group of management or highly compensated employees.
Management
Human
A qualified plan in which the share of benefits allocable to key employees is more than 60%. The plan may be subject to
T Resource Top Heavy Plans
special accelerated vesting provisions and minimum contribution rates.
Management
Human
T Resource Tort A civil wrongdoing that creates a claim that‘s to be tried in court before a jury.
Management
Human
Total Annual Cash
T Resource
Compensation
The sum of all cash payments made to an individual for services during a given year.
Management
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Human
Total Cash
T Resource
Compensation
The sum of all monetary payments made to an individual for services (i.e., employment) during a given year.
Management
Human
The sum of all payments made to an employee for a specific time period (usually annual) including base salary, incentives, and
T Resource Total Compensation
bonuses (and/or other variable pay such as commissions).
Management
Human
Total Direct
T Resource
Compensation
In executive compensation, total annual cash compensation plus the annualized value of long-term incentives.
Management
Human
total employee An empowerment technique where employees participate in actions and decision making that were traditionally reserved for
T Resource
involvement management.
Management
A basis for selling life insurance in which the agent takes into consideration all the prospect's financial needs, calculates the
Human
Total Needs amount of money required to take care of all those needs, determines the amount of money required to take care of all those
T Resource
Programming needs, determines the amount of funds that will be available when the prospect dies, and calculates the amount of life
Management insurance required to provide the difference.
Human
The amount paid to an expatriate consisting of the sum of his or her base salary, expatriation premium and allowances less the
T Resource Total Net Pay
tax equalization factor.
Management
Human
T Resource 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.
Management
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Human Describes Japanese style management approaches to quality improvement. It includes the long term success of the
total quality
T Resource
management (TQM)
organization through customer satisfaction and is based on participation of all members of the organization in improving
Management process, products, service, culture, etc.
Human The sum of the financial and nonfinancial value to the employee of all the elements in the employment package (i.e., salary,
T Resource Total Remuneration incentives, benefits, perquisites, job satisfaction, organizational affiliation, status, etc.) and any other intrinsic or extrinsic
Management rewards of the employment exchange that the employee values.
Human
Total Shareholder
T Resource
Return (TSR)
The total return of a stock to an investor (capital gain plus dividends).
Management
Human
Totalization Social security arrangements between countries intended to protect the social security benefits of employees who move
T Resource
Agreements between countries and ensure single country social security coverages for employees on assignment.
Management
Human
Traditional Net Cost An insurance policy cost comparison method that is prohibited by the NAIC Model Life Insurance Solicitation Regulation
T Resource
Method (TNC) primarily because it ignores the time value of money.
Management
Human
Training and A process dealing primarily with transferring or obtaining knowledge, attitudes and skills needed to carry out a specific activity
T Resource
development or task.
Management
Human A method of analyzing how employee skill deficits can be addressed through current or future training and professional
Training Needs
T Resource
Analysis
development programs, as well as determining the types of training/development programs required, and how to prioritize
Management training/development.
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Human
A distinguishing quality or characteristic of a person. For a trait to be developed in a person, that person must first believe in
T Resource trait
and value that trait.
Management
Human 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
T Resource Transfer move. A transfer will typically not provide an adjustment in pay since it is a lateral, rather than an upward move as in a
Management promotion.
Human
Travel Accident
T Resource
Benefit
Health insurance policies that limit the payment of benefits to losses that result while traveling, usually by common carrier.
Management
Human
Common stock that has been issued and reacquired (purchased) by the corporation from the public at the current market
T Resource Treasury Shares
price.
Management
Human
Treasury Stock The method used in calculating diluted earnings per share whereby common stock equivalents such as unexercised stock
T Resource
Method options exist. Generally accepted accounting principles require that this method be used in calculating and reporting.
Management
Human
T Resource Tri-Modal A distribution having three modes.
Management
Human A type of accidental death benefit coverage that pays an additional benefit equal to twice the policy's basic death benefit if the
T Resource Triple Indemnity accident is sustained while the insured is a passenger in a public conveyance operated by a licensed common carrier, such as
Management a bus, train, or airplane.
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Human In a trusteed pension plan, the contract between the plan sponsor and the trustee that describes the trustee's authority and
T Resource Trust Agreement responsibilities for investing and administering plan assets. Trust agreements are also found when group insurance is provided
Management through a multiple-employer trust (MET).
Human
T Resource Trust Fund Assets held in a trust.
Management
Human
A pension plan in which all contributions are sent to a trustee who then invests the contributions and makes any benefit
T Resource Trust Fund Plan
payments.
Management
Human
Trusteed Pension A pension plan in which the corporation's contributions to the plan are placed in a trust for investment and reinvestment, as
T Resource
Plan distinguished from a plan in which the benefits are secured by life insurance.
Management
Human A person, bank or trust company that has responsibility over financial aspects (receipt, disbursement and investment) of funds.
T Resource Trustees Where a bank or trust company, a board of trustees does not exercise this responsibility in which the individual trustee has but
Management one vote usually exercises it.
Human
T Resource Turnover Describes changes in the work force resulting from voluntary or involuntary resignations.
Management
Human In life insurance, inducing an insured through misrepresentation to drop an existing policy in order to take a similar policy from
T Resource Twisting the selling agent. Twisting is cause for license revocation in most states and is an offense that is against the law in many
Management states.
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Human Under COBRA, group health plans must treat adopted children like biological children covered by the plan, and plans are
U.S. Adopted Child
U Resource precluded from applying pre-existing condition exclusions to an adopted child where no such exclusion applies to a newborn
Health Care Mandate biological child.
Management
Human
U Resource U.S. Minimum Wage The lowest wage, determined by law or contract, that an employer may pay an employee for a specified job.
Management
Human
U.S. Permanent A green card holder who is considered a permanent resident alien. They are entitled to all the rights, privileges and obligations
U Resource
Resident Alien Status of an American citizen except the right to vote.
Management
A table of data that excludes the first 5 to 10 years of experience of those who have purchased life insurance. A Mortality Table
Human
Ultimate Mortality shows the number of deaths per 1000 within a grouping of people. Experience has shown that people have a lower mortality
U Resource
Table rate in the first years after they purchase insurance, and this can skew the data. By excluding this information the Ultimate
Management Mortality Table is believed to give a more accurate portrayal of actual mortality rates.
Human
A method of funding a pension plan in which the pension funds as a whole are held and managed by a funding agency, often
U Resource Unallocated Funding
an insurance company, and are not allocated to specific plan participants.
Management
Human
Unappropriated
U Resource
Earned Surplus
The amount of an insurer's surplus remaining after determination of an insurer's reserves, capital, and other surplus amounts.
Management
Human
Unbundled Insurance The process, of an insurance product, in which the mortality, investment, and expense factors used to calculate premium rates
U Resource
Product and cash values are each identified in the policy.
Management
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Human
U Resource Unclaimed Benefits There are no payees to be found in the collection process of claims.
Management
Human
Unclaimed Property Statutes that regulate the disposition of funds for which no owner can be found. Insurers typically hold unclaimed property for
U Resource
Statutes seven years. If the rightful owner is not found during this time, the property is turned over to the state.
Management
Human
Underfunded Pension
U Resource
Plan
A pension plan that has a negative surplus.
Management
Human
U Resource Underwater Options An outstanding option where the option price is above the stock's current market price.
Management
Several definitions 1) the company that receives the premiums and accepts responsibility for fulfilling the policy contract, (2) the
Human
company employee who decides whether or not the company should assume a particular risk or (3) the agent who sells the
U Resource Underwriter
policy. (Investments) With respect to a mutual fund, the entity responsible for marketing the shares of the fund. See also
Management Investment Banker.
Human
The process of identifying and classifying the potential degree of risk represented by a proposed insured. (Investments) The
U Resource Underwriting
procedure by which investment bankers channel investment capital from investors to corporations and municipalities.
Management
Human
Underwriting
U Resource
Department
The department in a life and health insurance company that selects the risks that the company will insure.
Management
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Human
Underwriting
U Resource
Impairments
Factors that increase an individual's risk above that which is normal for his or her age.
Management
Human
Underwriting Printed instructions that indicate what evidence of insurability is required for a given situation and which of several optional
U Resource
Requirements information sources will be needed to provide underwriters with necessary information.
Management
Payments made under state-administered programs to workers who are unemployed and meet the requirements of the law
Human involved to qualify for such payments. The requirements usually are (1) that the worker not be unemployed voluntarily. (2) That
Unemployment
U Resource
Compensation
the worker has worked in employment that is 'covered' by the law. (3) That the worker be willing and able to take employment
Management 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
Unemployment
U Resource
Insurance
In Canada, a federal statute that provides unemployment insurance to almost all persons who are employed in Canada.
Management
Human
Unemployment
U Resource
Insurance Act
In Canada, a federal statute that provides unemployment insurance to almost all persons who are employed in Canada.
Management
Human
Unexercised Options The rights that have not yet been exercised. They may consist of both exercisable (vested) and non-exercisable (non-vested)
U Resource
/ SARS rights.
Management
Human Unfunded
A nonqualified compensation plan in which future Financial commitments have been made to an executive organization. The
U Resource Commitments To
compensation plan has not been secured with funds that have been put aside for that purpose.
Management Executives
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Human
U Resource Unicasting Over a network, communication between a sender and single user.
Management
Human Uniform Accident And

Model legislation governing health insurance contracts, in Canada. It has been agreed upon by the Canadian Council of
U Resource Sickness Insurance
Insurance Regulators (CCIR) and enacted with minor variations by all the common law jurisdictions.
Management Act
Human
U Resource Uniform Distribution It looks 'flat' when graphed. A symmetrical distribution in which the frequency in each interval is about the same.
Management
Human
Uniform Life Model legislation governing life insurance contracts, in Canada. It has been agreed upon by the Canadian Council of Insurance
U Resource
Insurance Act Regulators (CCIR) and enacted with minor variations by all of the common law jurisdictions.
Management
Human
Uniform Pension Plan A prototype pension plan (see prototype plan), in Canada, developed by members of the Canadian Life and Health Insurance
U Resource
(UPP) Association and approved by the appropriate Canadian regulatory authorities.
Management
Human
Uniform Resource An acronym for Uniform Resource Locator, a URL is the address for a resource or site (usually a directory or file) on the World
U Resource
Locator (URL) Wide Web and the convention that web browsers use for locating files and other remote services.
Management
Human
U Resource Unilateral Contract A contract in which only one party promises to do something.
Management
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Human
U Resource Uni-Modal Distribution having only one mode.
Management
Human
Uninsurable Risk
U Resource
Class
Individuals with a risk of loss so great that an insurance company will not offer them insurance.
Management
Human
A union organized fund, and one or more employers to which contributions are made by the employer(s) so that organization
U Resource Union Welfare Fund
benefits can be made available to the union's members.
Management
Human
U Resource Unions Groups of workers who have formed incorporated associations relating to the type of work that they perform.
Management
Human
U Resource Unit-Benefit Formula A method of calculating benefits for a defined benefit pension plan based on years of service.
Management
Human
Unit-Credit Funding
U Resource
Cost Method
This is a funding method where with a single, one time payment / premium.
Management
Human
Universal Life A whole life insurance product whose investment component pays a competitive interest rate rather than the below-market
U Resource
Insurance crediting rate.
Management
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Human
Unjustifiable The act of terminating an employee‘s employment agreement for a reason that the Employment Relations Authority or
U Resource
dismissal Employment Court regards as unjustifiable.
Management
Human
Unscheduled
U Resource
Absence
Any unanticipated time lost from work.
Management
Human
U Resource Unweighted Mean A simple arithmetic average of individual means.
Management
Human
U Resource Upgrading The advancement of a job to a higher grade or salary range.
Management
Human
U Resource Uplink In satellite communications, a link from an earth station to an orbiting body.
Management
Human
Often confused with download, uploading a file means loading it from your computer onto a remote one. Most people do a lot
U Resource Upload
more downloading than uploading.
Management
Human
Upside Potential
U Resource
(Leverage)
A percent of target total compensation or as a multiple of dollars at risk.
Management
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Human The effectiveness, efficiency, and satisfaction with which users can achieve tasks in a particular environment of a product.
U Resource Usability High usability means that a system is easy to learn and remember, efficient, visually pleasing, fun to use and quick to recover
Management from errors.
Human Usual, Customary

Based on the average fee charged by all doctors in a given geographic area. Many insurers pay the (UCR) amount and the
U Resource And Reasonable
balance of any overcharges or costs of any disallowed services are the insured's responsibility.
Management (UCR)
Human
U Resource Usury Laws Charging of an interest rate that is illegally high.
Management
Human
The evaluation of medical necessity, efficiency or quality of health cares services, prospectively, concurrently, or
U Resource Utilization Review
retrospectively. The term utilization review is more limited to the physician's diagnosis, treatment and billing amount.
Management
Human
Utilization Review
U Resource
Organization
Independent review organizations, insurance companies or in-house programs providing utilization review services.
Management
Human
V Resource Validity How well a given criterion actually measures or predicts. Also see reliability.
Management
Human
Designated time of closing (monthly, quarterly, etc.) for determination of account balances in a defined-contribution or defined
V Resource Valuation Date
benefit plan.
Management
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Human
Valuation Mortality
V Resource
Tables
Mortality tables developed and published as industry-wide standards for computing the values of policy reserves.
Management
Human
V Resource Valuation Premium The net annual premium used to calculate reserves.
Management
Human
Value Added
V Resource
Services
Custom training needs and or analysis.
Management
Human
V Resource Valued Contract A contract under which the amount of the benefit is set in advance.
Management
Human
V Resource values Ideas about the worth or importance of things, concepts, and people.
Management
Annuity expressed in terms of benefit units instead of fixed dollar amounts. Annuity in which the amount of each periodic
Human payment fluctuates according to some variable factor. Under an equity annuity plan, payments vary according to the value of a
V Resource Variable Annuity specific portfolio of common stocks and similar investments. Under a cost-of-living plan, benefits are adjusted to reflect
Management 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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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
Human
Variable Life investment risk under variable life insurance policies, these products are considered securities contracts. In the United States,
V Resource
Insurance variable life insurance policies must be registered with the Securities and Exchange Commission (SEC), and only agents who
Management 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
V Resource Variable Pay Rewards based on performance rather than rewards based on time spent on the job or the value of the job.
Management
Human
Variable Premium A type of nonparticipating whole life insurance that allows premium rate modifications throughout the life of the policy and
V Resource
Life Insurance guarantees that the premium rate will never exceed a stated maximum rate.
Management
Human
Variable Universal A form of life insurance (also called Universal Life II or flexible life) offering a guaranteed death benefit that combines the
V Resource
Life Insurance flexible premium features of universal life with the investment component of variable life.
Management
Human
A measure of variability based on squared deviations of individual observations from the mean value of the distribution. Its
V Resource Variance
square root is the standard deviation.
Management
Human
An organization that provides funding for new ventures and business ideas, typically by offering funds in the form of a loan that
V Resource Venture Capital Firm
can be converted to equity.
Management
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Human
V Resource Vested Benefit Accrued benefits of a participant that have become nonforfeitable under the vesting schedule adopted by the plan.
Management
Human
Vested Benefit
V Resource
Obligation (VBO)
The actuarial present value of vested benefits.
Management
Human
An employee who has a full vested right to benefits under one or more pension/capital accumulation plans payable at a later
V Resource Vested Terminees
date, whose employment has been discontinued.
Management
Human A discussion between two or more groups of people who are in different places but can see and hear each other using
V Resource Video Conferencing electronic communications. The telecommunication network carries pictures and sound and such conferences can take place
Management across the world.
Human
Video On Demand A system by which viewers can watch video programs on their own television sets at the time they choose. The programs are
V Resource
(VOD) supplied by cable or ISDN.
Management
Human
V Resource Virtual Classroom Where online learning takes place and where learners and instructors interact.
Management
Human
A virtual community is a community of people sharing common interests, ideas, and feelings over the Internet or other
V Resource Virtual Community
collaborative networks.
Management
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Human
Virtual Private A network which has the appearance and functionality of a dedicated line, but which is really like a private network within a
V Resource
Network (VPN) public one, because it is still controlled by the telephone company, and its backbone trunks are used by all customers.
Management
A program that infects a computer by attaching itself to another program, and propagating itself when that program is
Human
executed. A computer can become infected by files downloaded over a network, or by the installation of new software or floppy
V Resource Virus
disks that are infected with viruses. Some viruses are only pranks, and perform harmless actions like displaying a screen with
Management a joke message on it. Others can destroy files or wipe out a hard drive.
Human
Virus Detection
V Resource
Program
A software program that scans, detects, and cleans computer viruses.
Management
Human
V Resource Vision Care Benefits An insurance plan that provides participants with eye examinations, lenses, frames, and fitting of glasses.
Management
Human
Vocational
V Resource
Rehabilitation
Providing a disabled or laid-off individual with training in a specific trade to prepare them for alternate employment.
Management
Human Vocational
V Resource Rehabilitation Act of This act is intended to promote job access for qualified individuals with disabilities.
Management 1973
Human
V Resource Voice Over IP (VOIP) Any technology providing voice telephony services over IP connections.
Management
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Human
V Resource Void Contract A contract that is not valid.
Management
Human
Voir dire questions deal with challenges to your suitability for acceptance by the court as a person qualified to give expert
V Resource Voir Dire
testimony.
Management
Human
Specific benefits that the employer administers and the employees pay for. Commonly used for benefits that employee's want
V Resource Voluntary Benefits
but which the employer views as nonessential to the business.
Management
Human
Voluntary Employee Usually covered by IRC Section 501(c)(9), it serves as the base of an employer-sponsored employee benefit plan. It is a tax-
V Resource
Benefit Association exempt fund that pays death, health, accident or other benefits to members, their dependents and/or beneficiaries.
Management
Human
Voluntary Exit
V Resource
Incentive Program
The plan provides an incentive for employees close to retirement to retire early.
Management
Human
Voluntary Plan
V Resource
Termination
The termination of a pension plan with the curtailment or termination being initiated by the plan sponsor.
Management
Human
A vortal is a portal - the posh word for a gateway to the Internet - which specializes in one industry. In the jargon of the
V Resource Vortal
business schools, a site like this is vertically integrated, hence vertical portal, or vortal.
Management
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Human
W Resource W-2 Form Wage and Tax Statement.
Management
Human
W Resource W-4 Form The Employee's Withholding Allowance Certificate.
Management
Human
W Resource Wage The total of salary and also commissions, or bonuses, paid by an employer for services.
Management
Human
Wage And Price Wages and prices are limited to some low percentage of growth through government regulation until they are deemed to be
W Resource
Controls under control.
Management
Human
W Resource Wage Contour Developed by labor economist John Dunlop, a way of considering an external wage structure.
Management
Human
Depicts pay rates currently being paid for each job within a pay grade in relation with the rankings awarded to each job during
W Resource Wage curve
the job evaluation process.
Management
Human
Differences in wage rates (for similar jobs) that can occur because of location of company, hours of work, working conditions,
W Resource Wage Differential
type of product manufactured, or a variety of other circumstances.
Management
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Human
W Resource Wage drift The gap between the Collective Agreement rate and the rate actually paid. Evidence of geographical variations in wage levels.
Management
Human
W Resource Wage Level The average of all salaries paid to workers in an occupation, department, organization, or industry.
Management
Human
W Resource Wage Movement A decrease or increase in the wage levels for a particular position or occupation in a market.
Management
Human
W Resource Wage Rate The money rate paid to an employee per hour.
Management
Human
Usually established within an organization, this is the levels or hierarchy of job and pay ranges. The salary structure is also
W Resource Wage Structure
referred to as job grades, job-evaluation points and or policy lines.
Management
Human
W Resource Wage Survey A survey of a labor market to determine the going rates for benchmark jobs.
Management
Human Several definitions: 1) The duration of time between the beginning of an insured person's disability and the start of the policy's
W Resource Waiting Period benefits. (2) The period between employment or enrollment in a program and the date when an insured person becomes
Management eligible for benefits.
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Human
W Resource Waiver Of Coverage Relinquishing the right to a benefit, especially in regard to health benefits, flexible benefits or early retirement window plans.
Management
Human
Waiver Of Deductible A provision in some major medical coverage that waives the initial deductible if the medical expenses are the result of an
W Resource
Provision accidental injury.
Management
Human 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
W Resource For Disability Benefit
work because of an accident or injury.
Management (WP)
Human
Waiver Of Premium A rider often included in juvenile policies which provides that the insurer will give up its right to collect the policy's premiums if
W Resource
For Payer Benefit the adult policy owner dies or becomes disabled.
Management
Human Walsh-Healey Public

A federal law requiring that pay be at least be the federal minimum wage with certain employers holding federal contracts for
W Resource Contracts Act Of
the manufacture or provision of materials, supplies and equipment.
Management 1936
Human
War Exclusion A life insurance policy provision that if death were connected with war or military service, it would limit the insurer's liability to
W Resource
Provision pay a death benefit.
Management
Human
Web-Based Training Web-based training (sometimes called e-learning) is anywhere, any-time instruction delivered over the Internet or a corporate
W Resource
(WBT) intranet to browser-equipped learners.
Management
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Human
A document on the World Wide Web, consisting of an HTML file and any related files for scripts and graphics, and often hyper
W Resource Webpage
linked to other documents on the Web.
Management
Human
W Resource Website Locations where files are located on the World Wide Web that can be viewed through an Internet browser.
Management
Human Weekenders are found in health care environments. These are usually nurses (but may be other health care professionals)
W Resource Weekender that work two 12-hour shifts over a weekend. Weekenders typically do not receive benefits but are paid at the regular base rate
Management plus a substantial premium of 50% or more of base rate.
Human
Weekly Indemnity A short-term disability income insurance plan which pays a weekly benefit equal to a dollar amount or a percentage of the
W Resource
Plan insured person's earnings.
Management
Human The average of the total population or number of incumbents reported. For each job, it is computed by multiplying each
W Resource Weighted Average company's average salary by their number of incumbents, adding these values, and dividing by the total number of incumbents
Management for each job.
Human Reflects equally the number of incumbents in a survey. If companies participating are truly representative of the market, then
W Resource Weighted Mean the data should reflect the market value of the job. The weighted mean answers the question, 'On average, what are
Management incumbents in a particular job paid?'
Human ERISA defines welfare benefit plans to include medical, surgical, or hospital care, sickness, accident, disability, death,
W Resource Welfare Benefit Plans unemployment, vacation benefits, training programs, day-care centers, scholarship funds, prepaid legal services, or financial
Management assistance for employee housing.
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Human
Employer-sponsored programs and activities designed to promote and maintain the physical and psychological health of
W Resource Wellness Programs
employees.
Management
Human
The process of evaluating alternate strategies by answering the consequences of changes to the way a job, task, etc. is
W Resource what-if-analysis
changed.
Management
Whistle blower protection is contained in the Protected Disclosures Act 2000. The Act provides protection to employees
Human
against retaliation for reporting illegal acts of employers. An employer may not rightfully retaliate in any way, such as
W Resource Whistle blower
discharging, demoting, suspending or harassing the whistle blower. Employer retaliation of any kind may result in the whistle
Management blower bringing a personal grievance against the employer.
Human
Similar to a dry erase board, it is an electronic version. It provides a virtual classroom to view what an instructor, presenter, or
W Resource Whiteboard
fellow learner writes down.
Management
Human
A term for a series of periodic payments, each is made only if a designated payee is alive, with the payments continuing for
W Resource Whole Life Annuity
that payee's entire life.
Management
Human Insurance payable to a beneficiary at the death of the insured, whenever that occurs. Premiums may be payable for a specified
W Resource Whole Life Insurance number of years (limited payment life) or for life (straight life). The premiums may remain level or decrease (by accumulating
Management cash in the initial years of the policy).
Human
Wide-Area Network
W Resource
(WAN)
A computer network that spans a relatively large geographical area. Also called 'WAN.'
Management
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Human
W Resource Windfall An unexpected legacy, or other gain.
Management
Human
Window Pension
W Resource
Plans
Programs that provide incentives for voluntary retirement.
Management
Human
The 10-day period, when insiders may exercise their stock-appreciation rights for cash without violating Securities and
W Resource Window Period
Exchange Commission rules.
Management
Human
Wireless Application
W Resource
Protocol (WAP)
A global standard for developing applications over wireless communication networks.
Management
Human
Wireless Markup XML based language that allows a smaller version of WebPages' text to be viewed on cellular phones and personal digital
W Resource
Language (WML) assistants.
Management
Human
W Resource Withdrawal Formal withdrawal or separation from an alliance or contract. See also lapse.
Management
Human
A life insurance provision that permits the policy owner to reduce the amount in the policy's cash value by taking up to that
W Resource Withdrawal Provision
amount in cash.
Management
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Human
W Resource Withholding Income tax withheld from employees' wages and paid directly to the government by the employer.
Management
Human
Allowing employees to take time off from work to appear before a court of law or other judicial proceeding if they are
W Resource Witness Duty Leave
subpoenaed or a party to the action.
Management
Human
Coaching (work coaching) is a method used by managers and supervisors to provide positive or constructive feedback to
W Resource Work Coaching
employees to help them continue excellent performance or identify ways to improve performance.
Management
Human
W Resource work sample The use of number of random samples to determine the frequency with which certain activities are performed.
Management
Human
Work-Design
W Resource
Variances
Differences that exist in similar jobs within two or more organizations.
Management
Human
A measure (usually computed as a percentage) of worker performance that compares the standard time allowed to complete a
W Resource worker efficiency
task to the actual worker time to complete it.
Management
Human
Workers' Government-mandated insurance that provides benefits to covered employees and their dependents if the employee suffers
W Resource
Compensation job-related injury, disease, or death. For more information, see DLC Course 63: Workers' Compensation .
Management
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Human
W Resource Working Capital Assets available for use in the production of further assets.
Management
Human Having a measure of control over when, where and how an individuals works, leading to their being able to enjoy an optimal
W Resource Work-life Balance quality of life. Work-life balance is achieved when an individual‘s right to a fulfilled life inside and outside paid work is accepted
Management and respected as the norm, to the mutual benefit of the individual, business and society.
Human
A council representing employer and employees of a plant or business to discuss working conditions etc. May also be a
W Resource Works Councils
committee representing the workers elected to negotiate with management about grievances and wages etc.
Management
Human A general-purpose computer designed to be used by one person at a time and which offers higher performance than normally
W Resource Workstation found in a personal computer, especially with respect to graphics, processing power and the ability to carry out several tasks at
Management the same time.
Human
Generally a fixed period of 168 hours (7 consecutive 24-hour periods). The employer establishes the workweek. It may begin
W Resource Workweek
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.
Management
Human
World Wide Web A collection of Internet sites that offer text and graphics and sound and animation resources through the hypertext transfer
W Resource
(WWW) protocol.
Management
Human
World Wide Web Also called W3O, this is the main body that creates standards for the World Wide Web. Based at the Massachusetts Institute
W Resource
Consortium (W3C) of Technology (MIT), it also produces reference software.
Management
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Human
W Resource Written Plan Defined by plan instruments or required under the law of a foreign country, or both.
Management
Human
XML Extensible
X Resource
Markup Language
It allows programmers to define and use their own tags. XML is for the programmer only.
Management
Human
Y Resource Year Book A school publication that is compiled usu. By a graduating class and that serves as a record of the yars‘ activities.
Management
Human
Y Resource 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.
Management
Human
Year's Basic The first 10 percent of an employee's annual earnings up to the amount of the Year's Maximum Pensionable Earnings (YMPE).
Y Resource
Exemption (YBE) As defined by the Canada Pension Plan (CPP) and Quebec Pension Plan (QPP) in Canada.
Management
Human Year's Maximum

The maximum amount of employment earnings that, after deducting the Year's Basic Exemption, can be used to determine an
Y Resource Pensionable Earnings
individual's benefits under the Canada Pension Plan and Quebec Pension Plan.
Management (YMPE)
Human
Y Resource Years of Experience Total years of directly related experience in a position for any and all employers.
Management
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Human YRT (Yearly

Y Resource Renewable Term Insurance that allows an individual to continue the coverage at the end of the year for a specified number of years.
Management Insurance)
Human
Z Resource Z-Score The position of a variable as it relates to the mean of the entire dataset.
Management
Page 333 of 333

Encyclopedia Human Resource

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Encyclopedia Human Resource Management (2289 Terms) Powered by www.drawpack.com; All rights reserved.

Human Accidental Death and

Human ADEA (Age

Human Americans With

Human Annual Lease

Human Annual Renewable

Human Annually Renewable

Canadian Life And

Human Career Average

Human Constant Population

Human Credits And The

Human Dependent Care /

Human Director And Officer

Human Dividend For

Human Education Individual

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Human Equivalent Annual

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Human Exclusive of Board,

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Exercise (Of A Share

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Human Fasb, Financial

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Human Generally Accepted

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Human Health Care

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