Human Resources Glossary - E

Earned Income Credit (EIC)

Low-income employees are eligible for the Earned Income Credit, which they can apply for when filing their tax returns.


The revenue that remains after certain costs are considered is a company’s net income or earnings. They are sometimes referred to as the bottom line or profit. The fiscal year or the quarter is typically used to measure gains.

Publicly traded businesses will use these profits to distribute dividends to their shareholders or investors. Retained earnings are any gains after these commitments have been satisfied and are often put back into the business.

Electronic Data Interchange (EDI)

Electronic data interchange is referred to as EDI. EDI is a technique for sending payments, invoices, and other documents electronically.

Electronic Funds Transfer (EFT)

EFT, also known as an electronic funds transfer, is most often utilized in connection with the electronic remittance of federal and state taxes. It also covers specific wire transfers of funds by the Treasurer to beneficiaries, particular vendors, etc.

Emergency Leave

Emergency leave is time off from work that is granted for actual, unforeseeable emergencies.

Emotional Intelligence

The capacity to understand, articulate, and effectively handle one’s emotions and those of others is known as emotional intelligence. A standardized exam that yields an emotional quotient, or EQ, can be used to gauge a person’s level of emotional intelligence, as opposed to IQ, which refers to cognitive intelligence.

Employee Assistance Program (EAP)

A company’s free, confidential services, support, and help are provided to its employees during trying times through an employee assistance program (EAP).

EAPs can be made accessible as a dedicated program that anybody can call on as needed or as a time-specific offer. In addition, employees can choose an EAP from a list of perks offered as part of a flexible benefits plan.

Employee Benefits

Employee benefits are non-wage types of remuneration that draw workers to your business, persuade them to join, and retain them over the long term. Employee perks, as opposed to fringe benefits, are more commonly used to create compelling offer packages or to increase the attractiveness of a paid offer directly.

Employee Benefits Administration

The process of deciding and overseeing the benefits a firm offers its employees is known as employee benefits administration. Employee eligibility for benefits like health, dental, disability, retirement accounts and 401Ks, vacations and paid time off, sick leave, and parental leave is typically determined via benefit administration systems. The human resources department of an organization is often in charge of the benefits administration procedure.

Employee Database

An employee database is a digital filing cabinet that HR specialists use to keep track of important employee data, such as name, job title, pay, hire date, and other employment-related details.

Employee Deductions

Employee deductions are sums of money taken from an employee’s salary for perks and other lawful purposes.

Employee Empowerment

A management philosophy known as employee empowerment strongly emphasizes the value of giving people the freedom to make and carry out their own decisions.

Employee Engagement

Employee engagement, in general, is a workplace strategy intended to strengthen a worker’s sentiments and emotional commitment to the business, job responsibilities, position within the industry, coworkers, and company culture. HR departments can use employee engagement strategies to improve welfare and productivity at all levels of the business.

Employee engagement promotes every firm employee to perform at their highest level every day through various programs, initiatives, and strategies. Every employee must be dedicated to the company’s mission, goals, and values for employee engagement in HR to be successful. Employees must also feel inspired and motivated to contribute to the organization’s overall success.

Employee Evaluation

A performance review, sometimes referred to as an employee evaluation, is a periodic assessment of a worker’s performance by their boss. It’s a chance to evaluate the employee’s development, recognize their successes, and work together on goals to boost performance and advance business goals.

Employee Experience

The employee experience is a complex matter. In essence, it’s the assortment of encounters, perceptions, feelings, and other experiences a worker has with their employer. Employee experience refers to how an employee feels about working for your company from their very first day—or even earlier—and how your company adapts to and supports their ongoing experiences.

Employee Handbook

A company’s mission, vision, values, rules, procedures, and workplace code of conduct are all detailed in an employee handbook. It might be a valuable tool for staff members to familiarize themselves with everything they need to know to succeed and stay safe in their workplace. By informing staff members of these regulations, so they know what to anticipate, an employee handbook also assists employers in fending off charges of discrimination or unfair treatment.

Employee Life Cycle

The many and most significant stages that an employee experiences as they interact with their firm are recognized and expressed using the employee life cycle model. Attraction, recruitment, onboarding, development, retention, and separation are the six distinct stages at work. Each level is completed chronologically by an employee.

Employee Management

The goal of employee management is to support employees in doing their best work each day to assist the firm in reaching its overall objectives.

Employee Net Promoter Score (eNPS)

Employer Net Promoter Score, or eNPS, is a grading scheme created to assist companies in assessing employee loyalty and happiness inside their organizations.

Employee Onboarding

Onboarding involves integrating new hires into a company. Employee onboarding, sometimes used interchangeably with new hire orientation, entails paperwork completion, on-the-job training, socializing and cultural training to prepare recruits to be productive, valuable team members. Effective onboarding can last for weeks or even months after a recruit starts working there.

Employee Orientation

The process of acclimating recently hired employees to their new workplace is known as employee orientation. It gives staff members the fundamental organizational knowledge they require to feel ready for their new team, division, and job within the company. In addition, before they start in their new roles, an effective employee orientation process informs new hires of the company’s standards and expectations, handles paperwork, and addresses any questions or concerns they may have.

Employee Recognition Program

A program for rewarding employees for accomplishments, including new working practices, skills, and other significant milestones, is known as an employee recognition program. By recognizing employee success, they contribute to increasing employee motivation.

Employee Relations

An organization’s attempts to build and maintain a good relationship with its employees are referred to as employee relations. By upholding good, constructive employee relations, organizations want to retain employees’ loyalty and increase their engagement at work.

Employee Retention

The ability of a business to reduce employee turnover, or the amount of employees who quit their jobs either freely or involuntarily, is known as employee retention. Therefore, staff retention rates directly impact the performance and success of a corporation.

Employee Satisfaction

The HR business uses the broad word “employee satisfaction” to refer to how pleased or satisfied employees are with their jobs, working environments, and the companies they work for. Many firms use frequent surveys to gauge employee satisfaction and track satisfaction patterns over time because it is one of the major metrics that can assist in determining the overall health of an organization. When employee satisfaction is high, they are satisfied with their employer’s treatment of them.

Employee Training Program

A new hire’s place in the organization’s procedures, technical systems, and other fundamentals are all covered in an employee training program. However, a more advanced employee training program should go further. It should acquaint the worker with your workplace culture, align them with the goals and objectives of the business, and position them for sustained job happiness.

Employee Turnover

The number of employees that leave a company during a given period, usually one year, is referred to as employee turnover or employee turnover rate. Although an organization typically counts the total number of departing workers, turnover can also refer to divisions within an organization, such as specific departments or racial or ethnic groups.

Employee Type

Employee types relate to the various kinds of workers that an organization could take into account employing to carry out a specific task or role inside the business.

Employer Branding

Employer branding is a tactic to make your business the “employer of choice” for both potential workers and your present employees (as a retention measure) (as an attraction strategy). Your company’s employer brand is how existing and potential employees perceive it, what you stand for and what it’s like to work there.

Employer Identification Number (EIN)

An employer identification number (EIN) is a unique number that the Internal Revenue Service issues to a company. The EIN of a company is irreversible, like a taxpayer’s fingerprint. It never goes out of date or is repurposed for another company. Your Federal Employer Identification Number, or FEIN, may also refer to your EIN.

Any business required to get an EIN by federal law will also need one by state law. A State Employer Identification Number, or State EIN, will be given to your company by your state, and you can use it to both submit state tax returns and hire staff.

Employer Payroll Taxes

Employer payroll taxes, which include Social Security tax, Medicare tax, federal unemployment tax, and state unemployment tax, are the components of payroll taxes that businesses are accountable for.

Employer Value Proposition

The main perks offered by your business that make up your more prominent employer brand are known as an employer value proposition (EVP). Consider it a contract between a prospective employee and an employer. What can your business and culture give them in return for their abilities, knowledge, and experience? You may justify and make a case for outstanding talent in an EVP.

Employment Contract

An agreement or term of hire that establishes the terms and conditions of an employee’s employment is known as a contract of work or employment contract. These agreements are typically in writing, although they can also be spoken.

Employment Status

Employment status is a generic word to describe a person’s relationship with their current or previous employer in the United States. The regulation of Medicare also makes use of it. In addition, employment status can relate to a formal legal classification for the connection between an employer and a person who works for (or on behalf of) the employer outside of the United States, most notably in Canada.

Equal Opportunities Policy

An organization’s Equal Opportunities Policy outlines its commitment to treating all employees fairly, regardless of:

  • Age

  • Sex

  • Race

  • Gender Reassignment

  • Disability

  • Pregnancy

  • Family Status

  • Beliefs or Religion

The policy also outlines methods for dealing with issues of discrimination, harassment, and associated conflicts, as well as instructions for how they demonstrate their commitment to equality in practice.

Evidence of Insurability

For certain types of insurance, health insurance carriers require evidence of insurability, or EOI, proof of excellent health. While most insurers employ a straightforward questionnaire to assess general health before providing prospective customers access to policies, EOI goes above and beyond to establish a more specific level or examine a particular area of health.

Exempt Employee

Employees are exempt or nonexempt under the federal Fair Labor Standards Act (FLSA). Exempt employment is exempt from the FLSA’s rights and requirements, such as minimum pay and overtime. Employees who are not exempt from the FLSA are covered.

Only those employed by an employer are eligible for exempt status under the Fair Labor Standards Act; independent contractors or volunteers are not. In addition to the FLSA, companies must follow the laws and pay standards of many other states.


A tax advantage known as an exemption either lessens or removes the need to pay a tax. In that it lowers the total amount of taxes payable to the federal government, a tax exemption is comparable to a tax deduction. To be eligible for a tax exemption, you must fulfill certain conditions. Once qualified, a certain amount of income won’t be taxed. Those eligible to have all their income exempt from tax are considered tax-exempt.

Exit Interview

Typically held on the departure employee’s last day of work, an exit interview is a conversation that enables the employee and their organization to exchange information. In addition, the exit interview is typically a chance for the employee to discuss their reasons for leaving and offer feedback on their time working for the company.

This discussion may occur during a face-to-face meeting between the employee and a manager or HR, or it may simply result from a survey the employee completes and submits.