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Refers to methods and processes undertaken by sourcers and recruiters which rely significantly on electronic platforms like job boards, social networks and other online labor platforms, to find candidates. This is different from “online staffing” in which no sourcers or recruiters are involved. (See also: Job Board.)


A principle whereby if SLAs are breached within a contract, a supplier is offered an opportunity improve performance to a level which could negate the application of any penalties that they might otherwise be liable for in a service contract.

Education Staffing

Staffing of education professionals, substitute teachers and teacher aides for K-12 schools, and college and university instructors. Roughly corresponds to the U.S. BLS’s Education, Training, and Library Occupations group and to the ISCO’s Teaching Professionals group.


An individual who works directly for an organization in a job with no specific end date. Employees are mostly full-time engagements, but can be part-time as well. The term employee is generally accepted as one who receives a W-2 (or equivalent outside the United States). (See also: Non-Employee, Contingent Worker, W-2 Employee.)

Employee Leasing/Staff Leasing

The practice of an entity, usually a staffing firm, supplying employees to work for a client temporarily, creating a triangular relationship in which the staffing firm employs the worker but the worker is controlled and supervised by the client. Often employee leasing is for work on a specific project that has a start and end date. The leasing company employs the worker on a fixed-term or permanent employment contract (sometimes this is prescribed by law) and pays the worker's wages and withholds and reports employment taxes. The employment relationship between the leasing company and its leased employees is intended to be long-term and not temporary; and the leasing company retains the right to hire, reassign and fire the leased employees.  (See also: Professional Employer Organization, Professional Employer Services, Employer of Record.)

Employee Value Proposition (EVP)

Employer Branding

Commonly used to describe an organization’s reputation as an employer as opposed to its more general corporate brand reputation. Employer Branding is therefore concerned with the attraction, engagement and retention initiatives targeted at enhancing an organization’s employer brand. Also known as Employee Value Proposition.

Employer of Record (EOR)

An entity that serves as as employer for tax purposes while an employee performs work for an end-user hirer or a staffing firm or other business. An employer of record handles all personnel functions, including payroll processing and funding; tax deposits and filing; and employment contracts and paperwork. An employer of record also administers or provides benefits; terminates employment; and may perform background checks including drug screenings and handle worker performance issues. In the US the Employer of Record will also be responsible for maintaining a Certificate of Insurance, I-9, and E-Verify forms; unemployment insurance; and workers’ compensation.

Employer Paid Fee (EPF)

The hiring organization pays the fee to the employment agency for a permanent placement. The fee may be based on the salary of the position or a flat fee. (See also: Applicant Paid Fee.)

Employment Agency (Private)

A for-profit, private entity that brings together a job seeker and a prospective employer, for a fee, for the purpose of effecting a traditional employment relationship. In the vast majority of cases the fee is paid by the new employer. This term is also frequently applied to temporary staffing firms. PrEA (Private Employment Agency) is the preferred acronym used by World Employment Confederation (WEC) and by certain European social partners to describe an entity that provides both temporary recruitment and permanent placement as well as certain other related activities. The use of the word “Private” from a European perspective is to provide a clear differentiation from public organizations that, in some markets, historically offered these services. (See also: Employment Business.)

Employment Business

A UK legal term for a business engaged in Labor Contracting, one that supplies labor to third party clients using Agency Workers. This term should not be confused with Employment Agency. Although a labor contractor is sometimes referred to as an employment agency, from a legal perspective, it means an organization providing services for the purpose of finding workers employment. (See also: Employment Agency.)

Employment Intermediary

A person who makes arrangements under or in consequence of which: a) an individual works or is to work for a third person; or b) an individual is, or is to be, remunerated for work done for a third party. In practice, any person or business that supplies more than one worker to work for the end client is an employment intermediary for the purposes of this tax legislation.

Engagement Manager

An engagement manager is an employee in the buyer organization who is responsible for engaging a contingent worker for a specific service or required skill, and responsible for the presence and administration of that contingent worker’s engagement in the buyer organization. (See: Hiring Manager.)

Engineering/Design Staffing

Staffing of engineers, drafters, skilled technicians or architects excluding software engineers. Includes mechanical, civil, electrical, industrial, petroleum, environmental, process, design, quality and other engineers. Roughly corresponds to the U.S. BLS’s Architecture and Engineering Occupations group and to the ISCO’s Engineering Professionals, Electrotechnology Engineers and Technicians and Associate Professionals groups.

Enterprise Resource Planning (ERP)

Integrates internal and external management information across an entire organization, embracing finance/accounting, manufacturing, sales and service, customers, and HR, etc. ERP systems automate this activity by way of an integrated software application in order to facilitate the flow of information between internal business functions as well as external connections to outside stakeholders. Human resources activities that could be included within an ERP include payroll, training, benefits, pensions, recruiting, and diversity management. A key aspect of many VMS implementations is ERP integration.

Executive Search

Refers to the process of recruiting for senior-level managers or professionals to be employed as traditional employees. It is usually done in a “retained” capacity, where the search firm is paid a fee regardless of the success of the search.


Under the Fair Labor Standards Act (see definition), all employees are either “exempt” or “non-exempt.” Non-exempt employees are entitled to overtime pay. Exempt employees are not. Most employees covered by the FLSA are non-exempt. Some are not. Some jobs are classified as exempt by definition. For example, “outside sales” employees are exempt (“inside sales” employees are non-exempt). For most employees, however, whether they are exempt or non-exempt depends on (a) how much they are paid, (b) how they are paid, and (c) what kind of work they do. With few exceptions, to be exempt an employee must (a) be paid at least $23,600 per year ($455 per week), and (b) be paid on a salary basis, and also (c) perform exempt job duties.


An expatriate (often shortened to ‘expat’) is a person temporarily or permanently residing in a country and culture other than the country where the person permanently resides. The word comes from the Latin terms ex (“out of”) and patria (“country, fatherland”). In some countries, such as in the Middle East, a high proportion of the workforce is expat (perhaps the majority of workers in the commercial sector).


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