Glossary


A-R

Accrued Vacation.

Vacation time an employee has accumulated because it has not yet been taken.

Alternative Work Arrangement.

A work arrangement that is not a typical 9-to-5 office job. This arrangement involves unique hours, working remotely, and different contractual relationships with the employer, all of which help a company to cut costs, yet at the same time retain the mission-critical skills possessed by certain employees.

COBRA (Consolidated Omnibus Reconciliation Act).

A federal law that offers voluntary continued benefit coverage to an employee at a cost to the employee for a specific period of time.

Contracting Arrangements.

Work arrangements that change the status of regular employees to a contractual status for part- or full-time work. (See Independent Contractor.)

Early Retirement.

An incentive for employees nearing retirement age to leave employment early and retain substantial if not full retirement benefits.

Furloughed Employee.

An employee who remains part of the organization but does not work full time or receive full pay. The employee works offsite and is prepared and ready to work once the workload increases.

Hiring Freeze.

A decision to suspend all hiring of new employees for a specific time period.

Human Capital.

The knowledge and skills an employee possesses that facilitate the company’s business practices.

Incentive Compensation.

Contingent monetary compensation in addition to one’s base salary based on set goals or objectives.

Independent Contractor.

An individual who works independently on a project/contract basis for a company. The person supplies his or her own benefits and supplies (e.g., computer), and is responsible for filing his or her tax returns.

Job/Skill Sharing.

Reducing staff to part-time status and combining employees to share assignments.

Long-Term Cost Savings.

Financial savings a company will achieve in the future by not rehiring employees and having to train them again.

Low-Hanging Fruit.

Solutions to problems that are easy to implement and can be done quickly, such as initiating a hiring freeze.

Mandatory Pay Cut.

A requirement dictating that all employees take a reduction in pay, including top management.

Mission-Critical Skills.

Skills that are critical to an organization to help it achieve its competitive advantage and distinguish itself from competitors.

Older Worker’s Benefit Protection Act (OWBPA).

A federal law protecting older employees from unfair treatment because of their age.

Outplacement Services.

A service offered to employees who were laid off, providing them counseling, coaching, assistance with r sum preparation, and the use of office facilities so they can search for other jobs.

Perquisite Reduction.

The decision to remove benefits such as company cars, expense accounts, subsidized lunches, golf club memberships, and so forth to help cut costs.

Real Cost of a Layoff.

The many costs that are incurred when an employee is laid off and another is hired, including selection, recruiting, and training costs for the new hires.

Reduction or Suspension of Annual Pay Increases.

The decision to cancel all or part of planned pay increases.

Reduction or Suspension of Bonuses and Incentives.

The decision to cancel all or part of planned bonuses and incentive payments.




The Headcount Solution. How to Cut Compensation Costs and Keep Your Best People
The Headcount Solution : How to Cut Compensation Costs and Keep Your Best People
ISBN: 0071402993
EAN: 2147483647
Year: 2002
Pages: 143

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