Future of Work & HR Glossary

A performance evaluation method that collects feedback from multiple sources surrounding an employee — their manager, peers, direct reports, and self-assessment. This multi-rater approach provides a more comprehensive and balanced view of performance compared to traditional top-down reviews, reducing individual bias and capturing different perspectives on an employee's contributions.

A work methodology where team members collaborate and make progress on shared goals without requiring simultaneous presence or real-time communication. This approach relies on clear documentation, structured updates, and shared digital workspaces to keep distributed teams aligned across time zones. It's a cornerstone of effective remote and hybrid work cultures.

An artificial intelligence system that automatically scans payroll data before processing to detect anomalies, errors, and compliance issues. It uses machine learning to identify statistical outliers such as duplicate payments, incorrect tax calculations, unauthorized rate changes, and overtime miscalculations. The AI compares current data against historical patterns to flag suspicious entries.

The use of AI and data analytics to identify employees who are at risk of voluntarily leaving the organization. Predictive models analyze factors such as engagement scores, performance trends, compensation benchmarks, tenure patterns, and manager relationships to generate flight risk scores. This enables proactive retention interventions before valuable employees resign.

A performance management approach that replaces traditional annual reviews with ongoing, real-time feedback exchanges between managers, peers, and direct reports. Continuous feedback loops enable immediate course correction, timely recognition, and more accurate performance assessment by capturing data throughout the year rather than relying on a single annual snapshot.

Performance evaluation instruments that assess employees against specific skills, behaviors, and knowledge areas required for their role. Each competency is defined with behavioral anchors at different proficiency levels and can be weighted based on importance. This approach provides more objective, actionable feedback compared to generic rating scales.

A digital platform that enables employees to independently access and manage their HR-related information without requiring HR department assistance. Common ESS functions include viewing payslips, updating personal information, requesting leave, accessing tax documents, enrolling in benefits, and submitting expense reports.

A federal payroll tax paid exclusively by employers to fund state unemployment insurance programs. The standard FUTA rate is 6.0% on the first $7,000 of each employee's annual wages, with a maximum credit of 5.4% for employers who pay state unemployment taxes on time, resulting in an effective rate of 0.6%. FUTA is not deducted from employee wages.

A GPS-based attendance tracking method that uses virtual geographic boundaries (geofences) to automatically verify employee clock-in and clock-out locations. When an employee enters or exits a predefined geographic area, the system records their attendance. This is particularly useful for field workers, construction teams, and distributed workforces where traditional time clocks aren't practical.

The payroll computation process that transforms an employee's gross pay (total earnings before deductions) into net pay (take-home amount). The calculation sequentially applies: pre-tax deductions (401k, HSA, FSA), federal income tax, state and local taxes, FICA contributions (Social Security + Medicare), FUTA, and post-tax deductions (Roth 401k, garnishments, voluntary deductions).

A time and attendance method that uses Global Positioning System technology to record employee work hours along with their geographic location. This provides verification that employees are at designated work sites when clocking in/out. Advanced implementations include geofencing, route tracking, and location-based shift assignments.

A financial record that tracks all payroll-related obligations an organization owes but has not yet paid. This includes accrued wages, employer tax liabilities (FICA, FUTA, SUTA), benefits payable, retirement plan contributions, and garnishment obligations. A properly maintained liability ledger is essential for accurate financial reporting and audit readiness.

An electronic file formatted according to the National Automated Clearing House Association (NACHA) standards for processing Automated Clearing House (ACH) transactions. In payroll, NACHA-compliant ACH files are used to initiate direct deposit payments to employee bank accounts. The file must follow specific record formats, include proper routing validation, and maintain accurate batch totals.

A goal-setting framework that defines ambitious Objectives (qualitative goals) and measurable Key Results (quantitative metrics) to track progress. OKRs are typically set quarterly and cascade from company-level objectives to team and individual goals, ensuring organizational alignment. They emphasize stretch goals and transparency.

The use of AI and machine learning to analyze historical HR data and predict future workforce trends. This includes forecasting attrition risk, labor costs, hiring needs, and performance trajectories. Unlike traditional HR reporting that looks backward, predictive analytics enables proactive decision-making by identifying patterns and trends before they fully materialize.

State-level unemployment insurance taxes paid by employers (and in some states, employees) to fund unemployment benefits. Rates vary by state and are typically experience-rated based on the employer's history of unemployment claims. Also known as SUTA (State Unemployment Tax Act) or SUI (State Unemployment Insurance).