Glossary / People Operations & HR
People Operations & HR
CHRO and HR terms: talent acquisition, comp design, culture, and workforce planning.
3
30-60-90 Day Plan
An onboarding framework defining a new executive's priorities and deliverables in their first 30, 60, and 90 days—creating structure for a successful leadership transition.
360-Degree Feedback
A performance assessment methodology that collects feedback on an individual from multiple sources—managers, peers, direct reports, and sometimes customers—providing a comprehensive view of behavioral performance.
A
Annual Bonus
A variable cash payment awarded to employees based on individual, team, and company performance against annual objectives, typically expressed as a percentage of base salary.
Accelerated Vesting
A provision in equity grant agreements that allows unvested shares to vest faster than the standard schedule upon specific trigger events—typically a change of control or involuntary termination.
Attrition Rate
The percentage of employees who leave an organization over a defined period—an indicator of workforce stability, employee satisfaction, and the effectiveness of retention programs.
C
CHRO
Chief Human Resources Officer—the senior executive accountable for people strategy, talent acquisition, compensation, organizational design, culture, and all workforce-related functions.
Cliff Vesting
A vesting schedule feature where no equity vests until a specific date (the cliff), at which point a defined tranche vests immediately—establishing a minimum tenure requirement before any equity ownership is earned.
Change of Control
A transaction event—merger, acquisition, or sale of controlling interest—that triggers specific provisions in employment agreements, equity plans, and compensation arrangements protecting or rewarding executives.
Contingency Search
An executive or professional recruiting engagement model where the recruiter is paid only upon successful placement of a candidate, with no fee owed if the search does not result in a hire.
Calibration Session
A structured group process where managers align on employee performance ratings and rankings to ensure consistent standards, reduce bias, and produce fair and differentiated talent assessments.
Culture Fit
The alignment between an individual's values, work style, and behavioral norms and those of the organization—a factor in hiring and performance management that must be distinguished from unconscious bias.
E
Equity Compensation
Compensation paid in company ownership interests—stock, options, RSUs, or equivalents—aligning employee financial interests with shareholders and providing upside participation in company value creation.
Executive Search
The professional recruitment process for senior leadership positions—C-suite, VP, and board roles—conducted through specialized search firms with deep networks in specific industries and functions.
Employer Branding
The reputation and identity a company projects as an employer—what it is known for in the talent market, how candidates perceive the employment experience, and how employees describe working there.
Employee Value Proposition
The full set of benefits, experiences, and opportunities an employer offers in exchange for employee contribution—the 'why work here' answer that differentiates the company in the talent market.
eNPS
Employee Net Promoter Score—a single-question loyalty metric asking employees how likely they are to recommend the company as a place to work, providing a simple benchmark for employee experience and engagement.
H
Headcount Planning
The process of determining the number and type of employees needed to execute the business plan, translating revenue, growth, and operational objectives into staffing requirements by role, timing, and location.
HR Business Partner
A senior HR professional embedded with specific business units who provides strategic people advice to business leaders, translating HR capabilities into business value rather than functioning as a transactional HR administrator.
M
Management Carve-Out
A PE-specific equity incentive structure that allocates a portion of exit proceeds above a defined threshold to the management team, aligning their financial interests with the private equity sponsor's value creation objectives.
Manager Effectiveness Score
A composite metric measuring how well individual managers lead their teams, based on direct report feedback, team engagement, attrition rates, and performance outcomes.
N
Non-Compete Agreement
A contractual restriction prohibiting a former employee from working for a competitor or starting a competing business within a defined geographic area and time period following employment.
Non-Solicitation Agreement
A contractual restriction prohibiting a former employee from soliciting the company's customers, clients, or employees for a defined period following employment.
P
Phantom Equity
A synthetic equity compensation instrument that provides the economic benefits of ownership participation—upside in company value—without requiring actual equity issuance, preserving cap table simplicity.
Performance Improvement Plan
A formal documented process specifying clear performance expectations, a defined timeline, and support mechanisms for an underperforming employee—typically the final structured step before termination.
People Analytics
The application of data analysis and statistical methods to workforce data to improve talent decisions, predict attrition, optimize hiring, measure employee experience, and quantify HR program effectiveness.
R
RSU
Restricted Stock Unit—a company's promise to deliver shares (or cash equivalent) upon vesting, creating an equity compensation instrument that delivers value even if the stock price declines from the grant date.
Retention Bonus
A cash payment contingent on an employee remaining with the company for a defined period, used to retain critical talent during transitions, transactions, or periods of organizational uncertainty.
Retained Search
An executive search engagement structure where the client pays the search firm a fee upfront or in installments to conduct the search exclusively, regardless of whether a placement is made.
S
Span of Control
The number of direct reports a manager is responsible for, which determines organizational layer depth, management cost, and the balance between oversight and employee autonomy.
Stock Options
The right to purchase company stock at a fixed exercise price (typically the fair market value at grant date) for a defined period, creating value when the stock price exceeds the exercise price.
Separation Agreement
A binding contract between a company and departing employee specifying severance compensation and benefits in exchange for the employee's release of all employment-related claims.
Succession Planning
The systematic process of identifying and developing internal candidates for future leadership roles, ensuring organizational continuity by reducing dependency on any single individual.
V
Vesting Schedule
The timeline over which equity compensation awards transfer from conditional to owned by the employee, determining how quickly an employee earns ownership of granted equity.
Voluntary vs. Involuntary Turnover
The distinction between employee departures initiated by the employee (resignations) versus those initiated by the employer (terminations, layoffs, eliminations)—essential for diagnosing workforce health and retention effectiveness.
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