Resources/Updated October 2026
Recruiting and HR Tech Glossary: 207 Terms in Plain English
Plain English definitions of 207 recruiting, staffing, HR, AI, cold email and lead generation terms, from ATS and bill rate to RAG, MCP and DMARC. Each term links to the tools that do the job and a free lesson that goes deeper.
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Most terms link to a free lesson in the AI Recruiting Academy and to the tools that do the job.
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A
A/B test
Cold email and lead genSending two versions of a subject line or message to similar groups to see which gets more replies. Change one thing at a time.
Full definition, examples and FAQ for A/B test
Related: Reply rate
Account based marketing (ABM)
Cold email and lead genPicking a short list of high value target accounts and running tailored outreach to several people at each one, instead of mass emailing a broad list.
Full definition, examples and FAQ for Account based marketing (ABM)
Compare lead generation toolsHow agency recruiters use AI to win clients
Related: Ideal customer profile (ICP), Buyer persona
Adverse impact
Law and complianceWhen a neutral looking hiring step selects a protected group at a much lower rate than others. It can be unlawful even without intent.
Full definition, examples and FAQ for Adverse impact
Compare HR compliance toolsWhat is an AI bias audit?
Related: Four fifths rule, Bias audit
A saved set of instructions an AI agent can reuse, such as “build a Monday list of companies hiring in my niche”. Saving a task that worked as a skill keeps results consistent from week to week.
Full definition, examples and FAQ for Agent skill
Turn a Grok Bot task into a routine
Related: Scheduled task, AI agent
Calling an ordinary chatbot, script or workflow an “AI agent” to sound more advanced. Ask a vendor what the tool does without a person clicking each step.
Full definition, examples and FAQ for Agent washing
What can AI recruiting agents do?How to evaluate AI recruiting tools
Related: AI agent
Describes software that plans and takes actions itself rather than only answering questions. A tool is agentic when it can use other apps, keep going over many steps and recover when a step fails.
Full definition, examples and FAQ for Agentic AI
Compare AI agents for recruitingWhat can AI recruiting agents do?
Related: AI agent, Computer use
AI agent
AIAI that works toward a goal on its own across several steps and tools, for example sourcing a shortlist, checking the ATS and drafting outreach. Good agents stop for your approval before they contact anyone.
Full definition, examples and FAQ for AI agent
Compare AI agents for recruitingWhat can AI recruiting agents do?AI agents directory
Related: Agentic AI, Human in the loop, Agent washing
A tool that claims to tell whether text was written by AI. They are unreliable and wrongly flag non native English writers, so do not base hiring decisions on them.
Full definition, examples and FAQ for AI detector
Can you tell if a resume was written by AI?
Related: Auto apply bot
An AI that runs an early round interview by voice, video or chat, asks set questions and hands the recruiter a transcript and summary.
Full definition, examples and FAQ for AI interviewer
Compare AI interviewing toolsWhat is an AI interviewer?
Related: Voice agent, Structured interview
A tool that joins or records a call, transcribes it and writes a summary or draft scorecard. Tell candidates and get consent where the law requires it.
Full definition, examples and FAQ for AI note taker
Compare AI note takersWhat does an AI note taker do?
Related: Interview scorecard
A workspace in ChatGPT, Claude or Grok that keeps a job's brief, files and instructions together so every new chat starts with the right context.
Full definition, examples and FAQ for AI project
Projects for your recruiting desk
Related: System prompt, Context window
Software that reads applications and sorts or scores them against a job's requirements. It saves time on high volume roles but carries bias and legal risk, so a person should review the results.
Full definition, examples and FAQ for AI resume screening
Compare AI screening toolsWhat is AI resume screening?
Related: Resume parsing, Algorithmic bias, Automated employment decision tool (AEDT)
Using AI to find and rank candidates from a plain English brief instead of hand built searches. It searches public profiles and your own database by meaning.
Full definition, examples and FAQ for AI sourcing
Compare AI sourcing toolsWhat is AI sourcing?
Related: Semantic search, Sourcing, Candidate rediscovery
An AI agent that works on its own cloud computer, signs into your apps and keeps going after you close the laptop. Grok Bot is an example.
Full definition, examples and FAQ for AI teammate
Compare AI agents for recruitingWhat is an AI teammate like Grok Bot?Grok Bot tutorials
Related: AI agent, Computer use
When an AI system treats groups of people unfairly, usually because it learned from biased past decisions or uses data that stands in for a protected trait, such as a zip code.
Full definition, examples and FAQ for Algorithmic bias
How bias gets into AI hiring tools
Related: Bias audit, Adverse impact, Training data
Applicant tracking system (ATS)
RecruitingSoftware that stores job openings and applicants and moves them through hiring stages, from application to offer. It is the system of record for most recruiting teams.
Full definition, examples and FAQ for Applicant tracking system (ATS)
Compare ATS softwareATS compatibility checker
Related: Recruiting CRM, Resume parsing, Requisition
A doorway that lets one piece of software talk to another. If a recruiting tool has an API, a developer or an automation tool can move data in and out of it.
Full definition, examples and FAQ for Application programming interface (API)
How AI connects to recruiting tools
Related: Model Context Protocol (MCP), Integration
Software that does tasks that used to need human judgment, such as reading resumes, writing messages or answering questions. In recruiting it mostly means tools that read, write, rank and predict.
Full definition, examples and FAQ for Artificial intelligence (AI)
Related: Machine learning, Generative AI
A tool candidates use to send job applications in bulk, often without reading the ad. It is a main reason for floods of weak applications on popular postings.
Full definition, examples and FAQ for Auto apply bot
When auto apply bots flood your job posts
Related: Knockout question, Candidate fraud
Automated employment decision tool (AEDT)
Law and complianceNew York City's legal term for software that substantially helps decide who is hired or promoted. Using one requires a yearly bias audit, a public summary and notice to candidates.
Full definition, examples and FAQ for Automated employment decision tool (AEDT)
Compare HR compliance toolsAI hiring law checker
Related: Bias audit, Candidate AI notice
B
B2B data provider
Cold email and lead genA company that sells business contact and company data, such as names, titles, emails and phone numbers, usually as a searchable database with credits.
Full definition, examples and FAQ for B2B data provider
Compare contact data toolsCompare lead generation tools
Related: Contact data enrichment, Lead list
Background check
RecruitingA check of a candidate's records, such as criminal history, employment, education or driving record, done before or after an offer. In the US it falls under the FCRA.
Full definition, examples and FAQ for Background check
Benefits administration
HR and people opsManaging employee benefits such as health insurance and retirement plans, including enrollment and changes.
Full definition, examples and FAQ for Benefits administration
An independent test of whether a hiring tool selects one group at a lower rate than another. New York City requires one each year for covered tools.
Full definition, examples and FAQ for Bias audit
Compare HR compliance toolsWhat is an AI bias audit?
Related: Four fifths rule, Automated employment decision tool (AEDT), Algorithmic bias
Bill rate
Staffing and agenciesThe hourly rate an agency charges the client for a contract worker.
Boolean search
RecruitingSearching with AND, OR, NOT, quotes and brackets to combine titles and skills precisely. It works on LinkedIn, job boards, ATS search and Google.
Full definition, examples and FAQ for Boolean search
Compare sourcing toolsBoolean search string builderSemantic search vs Boolean search
Related: X ray search, Semantic search
Bounce rate
Cold email and lead genThe share of emails returned as undeliverable. A high bounce rate tells inbox providers you send to bad lists.
Full definition, examples and FAQ for Bounce rate
Compare email verification tools
Related: Email verification, Email deliverability
Business development
Staffing and agenciesAn agency's work to win new clients and job orders, from research and outreach to sales calls.
Full definition, examples and FAQ for Business development
Compare lead generation toolsHow agency recruiters use AI to win clientsBusiness development prompts
Related: Hiring signal, Intent data
Buyer persona
Cold email and lead genA profile of the person who makes or influences the buying decision, such as a VP of Engineering who owns technical hiring. It shapes who you contact and what you say.
Full definition, examples and FAQ for Buyer persona
Related: Ideal customer profile (ICP)
C
California Consumer Privacy Act (CCPA)
Law and complianceCalifornia's privacy law. It gives job applicants and employees rights over their personal data, including the right to know what is collected.
Full definition, examples and FAQ for California Consumer Privacy Act (CCPA)
Call to action (CTA)
Cold email and lead genWhat you ask the reader to do next, such as reply, book a call or view a profile. Cold emails work best with one small, easy ask.
Full definition, examples and FAQ for Call to action (CTA)
Related: Cold email, Reply rate
CAN SPAM Act
Cold email and lead genThe US law for commercial email. Messages need honest sender details and subject lines, a physical postal address and a working way to opt out, and opt outs must be honored within 10 business days.
Full definition, examples and FAQ for CAN SPAM Act
Related: Unsubscribe link, Cold email
Candidate AI notice
Law and complianceTelling candidates where AI is used in your hiring, what it looks at and how to ask for another route. Several laws require one.
Full definition, examples and FAQ for Candidate AI notice
Candidate experience
RecruitingHow candidates feel about every step of your hiring, from the job ad to the rejection email. Quick replies and clear next steps matter most.
Full definition, examples and FAQ for Candidate experience
Compare engagement toolsWhat is a recruiting chatbot?
Related: Ghosting, Net Promoter Score (NPS)
Candidate fraud
RecruitingCandidates misrepresenting who they are or what they can do: invented resumes, someone else taking the interview, or deepfakes on video.
Full definition, examples and FAQ for Candidate fraud
Compare candidate fraud toolsCandidate fraud and deepfakes
Related: Deepfake, Background check
Candidate nurture
RecruitingKeeping in touch with candidates over time with useful, relevant messages so they think of you when they are ready to move.
Full definition, examples and FAQ for Candidate nurture
Compare recruiting CRMsCandidate outreach prompts
Related: Recruiting CRM, Email sequence
Finding good candidates already sitting in your ATS or CRM, such as past finalists, before you source new ones. AI makes it practical by searching old records by meaning.
Full definition, examples and FAQ for Candidate rediscovery
Compare recruiting CRMsHow AI rediscovers candidates
Related: Silver medalist, Talent pool
Catch all email
Cold email and lead genA domain set to accept mail for any address, so verifiers cannot confirm whether a specific person's address is real. Send to catch all addresses in small, careful batches.
Full definition, examples and FAQ for Catch all email
Compare email verification tools
Related: Email verification, Hard bounce
Chatbot
AISoftware that holds a conversation in text or voice. Recruiting chatbots answer candidate questions, collect details and book interviews at any hour, then hand harder questions to a person.
Full definition, examples and FAQ for Chatbot
Compare AI screening toolsWhat is a recruiting chatbot?Chatbot vs copilot vs AI agent
Related: Copilot, AI agent, Conversational AI
Cold calling
Cold email and lead genPhoning prospects or candidates who are not expecting your call. Recruiters often pair it with email in a sequence.
Full definition, examples and FAQ for Cold calling
Related: Power dialer, Email sequence
Cold email
Cold email and lead genAn email sent to someone you have no prior relationship with, to start a business conversation. Agencies use it to win clients and recruiters use it to reach candidates. It works when it is short, relevant and sent from a well set up domain.
Full definition, examples and FAQ for Cold email
Compare outreach toolsCompare lead generation toolsOutreach with AI without landing in spamCold email spam word checker
Related: Email sequence, Email deliverability, CAN SPAM Act
An AI ability to operate a computer or browser the way a person does: reading the screen, clicking and typing. It lets an agent work in tools that have no API, but it needs tight approval rules.
Full definition, examples and FAQ for Computer use
What is an AI teammate like Grok Bot?
Related: AI teammate, Application programming interface (API)
Contact data enrichment
Cold email and lead genAdding a person's email, phone number or current job to a record using outside data sources.
Full definition, examples and FAQ for Contact data enrichment
Compare contact data toolsWhat is contact data enrichment?
Related: Waterfall enrichment, Email finder, Email verification
How much text a model can hold in mind at once, counted in tokens. Paste in more than fits and it starts losing the earliest parts, such as the job brief at the top of a long chat.
Full definition, examples and FAQ for Context window
Related: Token, AI project
Contingency recruiting
Staffing and agenciesAgency recruiting where the fee is paid only if the client hires the agency's candidate. Fees are usually a percentage of the hire's first year salary.
Full definition, examples and FAQ for Contingency recruiting
Related: Retained search, Placement fee
Contract to hire
Staffing and agenciesA contract placement with the option for the client to hire the worker permanently after a set period, often with a conversion fee.
Full definition, examples and FAQ for Contract to hire
Related: Temporary staffing, Direct hire
AI built to talk with people naturally by chat or voice. It powers recruiting chatbots, voice screening calls and AI interviewers.
Full definition, examples and FAQ for Conversational AI
Related: Chatbot, Voice agent
Copilot
AIAn AI assistant built into a tool you already use that helps while you stay in control, such as drafting an email in your ATS or summarizing a profile. It suggests; you decide and click send.
Full definition, examples and FAQ for Copilot
Cost per hire
MetricsTotal recruiting cost, internal and external, divided by the number of hires in the same period.
Formula and free calculator for Cost per hire
Related: Vacancy cost, Return on investment (ROI)
Counteroffer
RecruitingAn offer a candidate's current employer makes to keep them after they resign. Recruiters raise it early so the candidate decides before it happens.
Full definition, examples and FAQ for Counteroffer
Related: Offer letter, Fall off
D
An assistant mode that runs many web searches on its own and writes a cited report, useful for market maps, company research and salary checks. Read the sources it cites before you rely on it.
Full definition, examples and FAQ for Deep research
ChatGPT, Claude or Grok for recruiters
Related: Reasoning model, Grounding
Deepfake
AIFake video or audio made with AI to look and sound like a real person. In hiring it shows up as candidates using a face swap or cloned voice in a video interview.
Full definition, examples and FAQ for Deepfake
Compare candidate fraud toolsCandidate fraud and deepfake interviews
Related: Candidate fraud
Direct hire
Staffing and agenciesA permanent placement where the candidate joins the client's payroll from day one and the agency earns a one time fee.
Full definition, examples and FAQ for Direct hire
Related: Placement fee, Contingency recruiting
DKIM
Cold email and lead genDomainKeys Identified Mail: a digital signature added to your emails so inboxes can confirm they really came from your domain and were not changed.
Full definition, examples and FAQ for DKIM
DMARC
Cold email and lead genA DNS record that tells inboxes what to do with mail that fails SPF or DKIM checks, and where to send reports. Gmail and Yahoo require it for bulk senders.
Full definition, examples and FAQ for DMARC
E
Email deliverability
Cold email and lead genWhether your emails land in the inbox rather than spam. It depends on domain setup, bounce and complaint rates and sending volume more than wording.
Full definition, examples and FAQ for Email deliverability
Compare deliverability toolsOutreach with AI without landing in spamSPF, DKIM and DMARC checker
Related: SPF, DKIM, DMARC, Email warmup
Email finder
Cold email and lead genA tool that guesses or looks up a person's work or personal email from their name and company.
Full definition, examples and FAQ for Email finder
Related: Email verification, Contact data enrichment
Email sequence
Cold email and lead genA planned series of outreach emails, and sometimes calls or texts, that stops when the person replies.
Full definition, examples and FAQ for Email sequence
Compare outreach toolsCold email spam checker
Related: Candidate nurture, Spam trigger word
Email verification
Cold email and lead genChecking that an email address exists and can receive mail before you send to it, which protects your bounce rate.
Full definition, examples and FAQ for Email verification
Compare email verification tools
Related: Bounce rate, Email deliverability
Email warmup
Cold email and lead genSlowly raising how much a new mailbox sends so inbox providers learn to trust it before you run outreach.
Full definition, examples and FAQ for Email warmup
Related: Email deliverability
A list of numbers that captures the meaning of a piece of text, so texts with similar meaning sit close together. Embeddings let a tool match a resume to a job even when they use different words.
Full definition, examples and FAQ for Embedding
Semantic search vs Boolean search
Related: Semantic search, Vector database
Employee engagement
HR and people opsHow committed and motivated employees are, usually measured with regular surveys.
Full definition, examples and FAQ for Employee engagement
Related: Employee Net Promoter Score (eNPS)
Employee Net Promoter Score (eNPS)
HR and people opsA one question survey: how likely are you to recommend this company as a place to work, on a scale of 0 to 10. Promoters minus detractors gives the score.
Full definition, examples and FAQ for Employee Net Promoter Score (eNPS)
Related: Net Promoter Score (NPS), Employee engagement
Employee referral
RecruitingA candidate recommended by a current employee, often for a bonus. Referrals tend to be among the fastest and best retained sources of hire.
Full definition, examples and FAQ for Employee referral
Compare employee referral tools
Related: Source of hire
Employer brand
RecruitingHow people see a company as a place to work, shaped by its careers site, reviews, staff posts and how it treats candidates.
Full definition, examples and FAQ for Employer brand
Compare recruitment marketing tools
Related: Candidate experience, Recruitment marketing
Employer of record (EOR)
Staffing and agenciesA provider that legally employs workers on your behalf in a country, running payroll, taxes and local compliance, so you can hire where you have no entity.
Full definition, examples and FAQ for Employer of record (EOR)
Equal Employment Opportunity Commission (EEOC)
Law and complianceThe US agency that enforces federal laws against job discrimination. Those laws apply to hiring decisions made with AI tools as well.
Full definition, examples and FAQ for Equal Employment Opportunity Commission (EEOC)
Compare HR compliance toolsWhich AI hiring laws apply to you?
Related: Adverse impact, Four fifths rule
EU AI Act
Law and complianceThe European Union's AI law. It treats AI used to recruit, screen or evaluate candidates as high risk, with duties for both vendors and employers.
Full definition, examples and FAQ for EU AI Act
Compare HR compliance toolsAI hiring law checkerWhich AI hiring laws apply to you?
Executive search
Staffing and agenciesRecruiting for senior leadership roles, usually on a retained basis with deep research and confidential approaches.
Full definition, examples and FAQ for Executive search
Related: Retained search
Being able to say why an AI tool reached a result, such as which skills pushed a candidate up a ranking. Ask vendors for it: you may need to explain a decision to a candidate or regulator.
Full definition, examples and FAQ for Explainability
How to evaluate AI recruiting tools
Related: Bias audit
F
Fair Credit Reporting Act (FCRA)
Law and complianceThe US law covering background checks run through a screening company. You need written disclosure and consent first, and notice before rejecting someone because of the report.
Full definition, examples and FAQ for Fair Credit Reporting Act (FCRA)
Compare background check tools
Related: Background check
Fall off
Staffing and agenciesA placed candidate who backs out before starting or leaves within the guarantee period, usually meaning a refund or a free replacement.
Full definition, examples and FAQ for Fall off
Related: Placement fee, Counteroffer
Showing the AI a few examples of what good looks like inside the prompt, such as two outreach messages you liked, so it copies the style and structure.
Full definition, examples and FAQ for Few shot prompting
How to write AI prompts for recruiting
Related: Prompt
Fill rate
Staffing and agenciesThe share of job orders or shifts an agency fills. Clients and MSPs use it to rank suppliers.
Formula and free calculator for Fill rate
Related: Time to fill, Submittal to interview ratio
Extra training that adapts a general model to a narrow job using your own examples. Few recruiting teams need it; good prompts and grounding on your data usually get you most of the way.
Full definition, examples and FAQ for Fine tuning
Related: Foundation model, Retrieval augmented generation (RAG)
Firmographics
Cold email and lead genFacts about a company used to filter leads: industry, headcount, revenue, location and funding. Most B2B data tools let you search by them.
Full definition, examples and FAQ for Firmographics
Related: Technographics, Ideal customer profile (ICP)
First year attrition
MetricsThe share of new hires who leave within their first year. High numbers point to problems in selection, the offer or onboarding.
Formula and free calculator for First year attrition
Related: Quality of hire, Onboarding
Form I-9
Law and complianceThe US form every employer completes to confirm a new hire's identity and right to work. E Verify is the optional online check against government records.
Full definition, examples and FAQ for Form I-9
Related: Onboarding
A large general purpose model, such as GPT, Claude, Grok, Gemini or Llama, that other products are built on. Most AI recruiting tools rent a foundation model and add their own instructions, data and screens on top.
Full definition, examples and FAQ for Foundation model
What is a large language model?
Related: Large language model (LLM), Open weights model
Four fifths rule
Law and complianceA US rule of thumb: if one group's selection rate is less than 80% of the highest group's rate, that is a sign of adverse impact.
Full definition, examples and FAQ for Four fifths rule
Compare HR compliance toolsWhat is an AI bias audit?
Related: Adverse impact, Bias audit
Full cycle recruiting
RecruitingWhen one recruiter handles every step of a hire, from intake and sourcing through offer and start date.
Full definition, examples and FAQ for Full cycle recruiting
Related: Talent acquisition, Intake meeting
G
General Data Protection Regulation (GDPR)
Law and complianceThe EU's data protection law, with a UK version. It covers candidate data and limits decisions made only by automated means.
Full definition, examples and FAQ for General Data Protection Regulation (GDPR)
AI that creates new text, images, audio or code from a request. ChatGPT, Claude, Grok and Gemini are generative AI, and so are the writing features inside most recruiting tools.
Full definition, examples and FAQ for Generative AI
Related: Large language model (LLM), Prompt
Ghosting
RecruitingWhen either side goes silent without explanation, a candidate who stops replying or an employer who never sends an outcome.
Full definition, examples and FAQ for Ghosting
Related: Candidate experience
Tying an AI's answer to a trusted source, such as your ATS records or a document you supplied, so it works from facts instead of memory. Grounded answers usually show where each claim came from.
Full definition, examples and FAQ for Grounding
Related: Retrieval augmented generation (RAG), Hallucination
Limits built into an AI tool or workflow to stop unwanted actions, for example blocking it from emailing candidates without approval or from using protected traits.
Full definition, examples and FAQ for Guardrails
Keep candidate data safe with Grok Bot
Related: Human in the loop
H
When an AI states something false as fact, such as a candidate's past employer, a law that does not exist or a made up source. Always check names, numbers and claims before they reach a candidate or client.
Hard bounce
Cold email and lead genA permanent delivery failure, such as an address that does not exist. Remove hard bounced addresses at once; too many damage your sender reputation.
Full definition, examples and FAQ for Hard bounce
Compare email verification tools
Related: Soft bounce, Bounce rate, Email verification
Hiring manager
RecruitingThe person the new hire will report to, who usually makes the final decision. Recruiters work for the hiring manager on a search.
Full definition, examples and FAQ for Hiring manager
Related: Intake meeting
Hiring signal
Staffing and agenciesA public sign a company is about to hire, such as new funding, a burst of job posts or a new leader. Agencies use them to time outreach.
Full definition, examples and FAQ for Hiring signal
Compare lead generation toolsFind hiring companies with Grok Bot
Related: Business development, Intent data
Human capital management (HCM)
HR and people opsA broad HR suite that adds recruiting, performance, learning and planning on top of an HRIS.
Full definition, examples and FAQ for Human capital management (HCM)
A rule that a person reviews and approves an AI's work before it counts, such as a recruiter checking a shortlist before anyone is rejected. Several AI hiring laws expect it for decisions about people.
Full definition, examples and FAQ for Human in the loop
Chatbot vs copilot vs AI agent
Related: AI agent, Guardrails
Human resources information system (HRIS)
HR and people opsThe core employee database: personal details, job, pay, time off and documents. Most other HR tools connect to it.
Full definition, examples and FAQ for Human resources information system (HRIS)
Related: Human capital management (HCM), Payroll
I
Icebreaker
Cold email and lead genThe opening line of a cold email or message that shows why you are writing to this person now. AI tools can draft them from public data, but check every claim.
Full definition, examples and FAQ for Icebreaker
Related: Personalization
Ideal customer profile (ICP)
Cold email and lead genA description of the companies most worth selling to: industry, size, location, growth stage and the problems you solve for them. For an agency it is the type of client that hires often and pays well.
Full definition, examples and FAQ for Ideal customer profile (ICP)
Compare lead generation toolsHow agency recruiters use AI to win clients
Related: Buyer persona, Firmographics, Lead list
Inbox rotation
Cold email and lead genSpreading outreach across several mailboxes so each one sends a small, safe daily volume.
Full definition, examples and FAQ for Inbox rotation
Related: Sending domain, Email warmup
InMail
Cold email and lead genLinkedIn's paid direct message to people you are not connected with, included in LinkedIn Recruiter and some premium plans.
Full definition, examples and FAQ for InMail
Compare LinkedIn outreach tools
Related: Passive candidate, Email sequence
Intake meeting
RecruitingThe first meeting between recruiter and hiring manager to agree what the role needs, who the ideal candidate is, the pay range and the interview steps.
Full definition, examples and FAQ for Intake meeting
AI for hiring manager intakeIntake meeting prompts
Related: Requisition, Hiring manager
Integration
RecruitingA built connection between two tools so data moves between them, such as a sourcing tool sending candidates into your ATS.
Full definition, examples and FAQ for Integration
Related: Application programming interface (API), Workflow automation
Intent data
Cold email and lead genSignals that a company or person is researching something, such as reading about a topic or visiting your site, used to time sales outreach.
Full definition, examples and FAQ for Intent data
Related: Visitor identification, Hiring signal
Internal mobility
HR and people opsFilling roles by moving current employees into new jobs, including promotions and lateral moves.
Full definition, examples and FAQ for Internal mobility
Compare internal mobility tools
Related: Workforce planning
Interview scheduling
RecruitingFinding times that suit candidates and interviewers, sending invites and handling changes. Scheduling tools and AI assistants now do most of this automatically.
Full definition, examples and FAQ for Interview scheduling
Compare scheduling toolsHow AI interview scheduling works
Related: Time to hire
Interview scorecard
RecruitingA form where interviewers rate a candidate against set criteria, with evidence, before they discuss the candidate together.
Full definition, examples and FAQ for Interview scorecard
Compare interviewing toolsInterview scorecards with Grok Bot
Related: Structured interview, AI note taker
Interview to offer ratio
MetricsHow many interviews it takes to produce one offer.
Formula and free calculator for Interview to offer ratio
Related: Submittal to interview ratio, Pipeline conversion rate
J
Job ad
RecruitingThe public posting written to attract applicants. It should lead with what makes the job worth applying for and keep the must haves short.
Full definition, examples and FAQ for Job ad
Compare job boardsJob ad promptsWhere to post jobs
Related: Job description, Job board
Job board
RecruitingA website where employers post jobs and candidates search and apply, such as Indeed or Dice. Niche boards serve one industry, skill or region.
Full definition, examples and FAQ for Job board
Compare job boardsWhere to post jobs
Related: Programmatic job advertising, Job ad
Job description
RecruitingThe internal document that lists a role's duties, requirements and reporting line. A job ad is the shorter, persuasive version written for candidates.
Full definition, examples and FAQ for Job description
Compare job description toolsWrite job descriptions with AIJob description bias checker
Related: Job ad, Pay transparency law
Job order
Staffing and agenciesA client's request for an agency to fill a role, with the requirements, pay and fee terms.
Full definition, examples and FAQ for Job order
Related: Submittal, Requisition
K
Knockout question
RecruitingA yes or no screening question that removes applicants who miss a true requirement, such as a license or work authorization. Keep them few and lawful.
Full definition, examples and FAQ for Knockout question
Compare AI screening toolsWhen auto apply bots flood your job posts
Related: Phone screen, Auto apply bot
L
The engine behind ChatGPT, Claude, Grok and Gemini. It is trained on huge amounts of text and writes by predicting the next word, which is why it is fluent but can state wrong facts with confidence.
Full definition, examples and FAQ for Large language model (LLM)
What is a large language model?
Related: Hallucination, Token, Foundation model
Lead generation
Cold email and lead genFinding and qualifying potential clients or buyers. For agencies it means companies that might give you job orders.
Full definition, examples and FAQ for Lead generation
Related: Business development, Intent data
Lead list
Cold email and lead genA list of target companies and contacts built for outreach, usually filtered by your ICP and checked with email verification before it is used.
Full definition, examples and FAQ for Lead list
Related: Ideal customer profile (ICP), Email verification, B2B data provider
Lead magnet
Cold email and lead genSomething useful offered free in exchange for an email address, such as a salary guide, checklist or free tool.
Full definition, examples and FAQ for Lead magnet
Related: Marketing qualified lead (MQL)
Lead scoring
Cold email and lead genRanking leads by how likely they are to buy, using fit (company size, industry) and engagement (opens, replies, site visits), so the best ones get attention first.
Full definition, examples and FAQ for Lead scoring
Related: Marketing qualified lead (MQL), Intent data
Learning management system (LMS)
HR and people opsSoftware for delivering and tracking training courses.
Full definition, examples and FAQ for Learning management system (LMS)
Related: Onboarding
LinkedIn automation
Cold email and lead genTools that send connection requests, messages and profile visits on LinkedIn on a schedule. LinkedIn limits activity and can restrict accounts that push too hard.
Full definition, examples and FAQ for LinkedIn automation
Compare LinkedIn outreach tools
Related: InMail, Email sequence
M
A way of building AI where software learns patterns from past examples instead of following rules a person wrote. Older matching and ranking tools in recruiting are usually machine learning models trained on past hiring data.
Full definition, examples and FAQ for Machine learning
Related: Training data, Algorithmic bias
Managed service provider (MSP)
Staffing and agenciesA firm that runs a company's contingent workforce program, managing suppliers, rates and compliance, usually through a VMS.
Full definition, examples and FAQ for Managed service provider (MSP)
Related: Vendor management system (VMS), Recruitment process outsourcing (RPO)
Marketing qualified lead (MQL)
Cold email and lead genA lead that has shown enough interest, such as downloading a guide or visiting pricing, to be worth passing toward sales.
Full definition, examples and FAQ for Marketing qualified lead (MQL)
Related: Sales qualified lead (SQL), Lead scoring
Markup
Staffing and agenciesHow much higher the bill rate is than the pay rate, shown as a percentage. It has to cover payroll taxes, insurance and overhead as well as profit.
Merge field
Cold email and lead genA placeholder such as {first_name} that a sequencing tool fills in for each contact. An unfilled merge field in a sent email is a clear sign of automation.
Full definition, examples and FAQ for Merge field
Compare outreach toolsCold email spam word checker
Related: Personalization, Spintax
An open standard that lets an AI assistant connect to other software with your login, so it can read your ATS, search a database or update a CRM without a custom integration.
Full definition, examples and FAQ for Model Context Protocol (MCP)
AI that works with more than text, for example reading a scanned resume, listening to a call or watching a video interview. Most leading assistants are now multimodal.
Full definition, examples and FAQ for Multimodal AI
Related: Large language model (LLM)
N
The branch of AI that deals with human language. Resume parsing, keyword extraction and chatbots all use it, and today most NLP runs on large language models.
Full definition, examples and FAQ for Natural language processing (NLP)
Related: Resume parsing, Large language model (LLM)
Net Promoter Score (NPS)
MetricsA survey score built on one question: how likely are you to recommend us, from 0 to 10. Agencies run it with clients and candidates; the score is the percentage of 9s and 10s minus the percentage of 0s to 6s.
Full definition, examples and FAQ for Net Promoter Score (NPS)
Related: Employee Net Promoter Score (eNPS), Candidate experience
O
Offer acceptance rate
MetricsOffers accepted divided by offers made. Low rates usually mean pay, speed or the pitch is off.
Formula and free calculator for Offer acceptance rate
Related: Offer letter, Counteroffer
Offer letter
RecruitingThe written job offer with title, pay, start date and key terms. Agree the numbers verbally first so the letter holds no surprises.
Full definition, examples and FAQ for Offer letter
Related: Counteroffer, Offer acceptance rate
Onboarding
HR and people opsEverything that gets a new hire ready and productive, from paperwork and equipment to training and introductions.
Full definition, examples and FAQ for Onboarding
Related: Form I-9, Quality of hire
Open rate
Cold email and lead genThe share of delivered emails that were opened. It is unreliable since Apple Mail began preloading images, which counts many emails as opened that nobody read.
Full definition, examples and FAQ for Open rate
Related: Reply rate, Bounce rate
A model whose trained weights are published so anyone can download and run it on their own servers, such as Meta's Llama. Companies use them when candidate data must stay inside their own systems.
Full definition, examples and FAQ for Open weights model
Related: Foundation model
P
Passive candidate
RecruitingSomeone who is not job hunting but might move for the right role. Most sourcing and outreach is aimed at passive candidates.
Full definition, examples and FAQ for Passive candidate
Related: Sourcing, Candidate nurture
Pay range
HR and people opsThe minimum and maximum pay for a role. Many US states now require it in job ads.
Full definition, examples and FAQ for Pay range
Related: Pay transparency law, Offer letter
Pay rate
Staffing and agenciesThe hourly rate an agency pays a contract worker.
Pay transparency law
Law and complianceA law requiring pay ranges in job ads or on request. Rules differ by state and city, so check where the job and the candidate are.
Full definition, examples and FAQ for Pay transparency law
Payroll
HR and people opsPaying employees correctly and on time, with taxes and deductions withheld and filed.
Full definition, examples and FAQ for Payroll
Related: Human resources information system (HRIS), Employer of record (EOR)
People analytics
HR and people opsUsing workforce data to answer questions about hiring, retention, pay and performance.
Full definition, examples and FAQ for People analytics
Compare people analytics toolsAnalyze recruiting data with ChatGPT, Claude and Grok
Related: Workforce planning
Performance management
HR and people opsSetting goals, giving feedback and reviewing how people are doing.
Full definition, examples and FAQ for Performance management
Related: Quality of hire
Personalization
Cold email and lead genTailoring each message to the reader with something specific and true, such as a recent hire, funding round or post. One real detail beats a long merge field template.
Full definition, examples and FAQ for Personalization
Compare AI outreach toolsOutreach with AI without landing in spamBusiness development prompts
Related: Icebreaker, Cold email
Phone screen
RecruitingA short first call to check interest, pay expectations, availability and basic fit before a full interview.
Full definition, examples and FAQ for Phone screen
Screening and interview prompts
Related: Structured interview, Knockout question
Pipeline conversion rate
MetricsThe share of candidates who move from one hiring stage to the next. It shows where people drop out.
Formula and free calculator for Pipeline conversion rate
Analyze recruiting data with AI
Related: Talent pipeline, Interview to offer ratio
Placement fee
Staffing and agenciesThe fee an agency earns for a permanent hire, usually a percentage of first year salary.
Formula and free calculator for Placement fee
Related: Direct hire, Fall off
Power dialer
Cold email and lead genSoftware that dials numbers from a list one after another so a recruiter spends time talking, not dialing.
Full definition, examples and FAQ for Power dialer
Related: Recruiting text messaging
Pre employment assessment
RecruitingA test of skills, ability or work style given before a hiring decision, such as a coding test or situational judgment test.
Full definition, examples and FAQ for Pre employment assessment
Related: Adverse impact, Structured interview
Professional employer organization (PEO)
Staffing and agenciesA US firm that co employs a small company's staff to give it shared payroll, benefits and HR support.
Full definition, examples and FAQ for Professional employer organization (PEO)
Programmatic job advertising
RecruitingSoftware that buys and moves job ad spend across many sites automatically, putting money where clicks and applications are cheapest.
Full definition, examples and FAQ for Programmatic job advertising
Compare recruitment marketing tools
Related: Job board, Recruitment marketing
Prompt
AIThe instruction you give an AI tool. A good recruiting prompt says who the AI should act as, the task, the material to work from, the format you want and the limits.
Full definition, examples and FAQ for Prompt
How to write AI prompts for recruitingRecruiting prompt library
Related: Prompt engineering, System prompt
The skill of writing and testing prompts until an AI tool gives reliable results. For recruiters it mostly means giving the model the brief, examples and rules it needs instead of a one line request.
Full definition, examples and FAQ for Prompt engineering
How to write AI prompts for recruiting
Related: Prompt, Few shot prompting
Q
Quality of hire
MetricsHow well new hires turn out, judged by performance ratings, hiring manager feedback and whether they stay.
Formula and free calculator for Quality of hire
Measure the ROI of AI in recruiting
Related: First year attrition
R
Reasonable accommodation
Law and complianceA change to the hiring process or job that lets a person with a disability take part, such as extra time on a test or a way to skip an AI interview.
Full definition, examples and FAQ for Reasonable accommodation
Candidates using AI in interviews
Related: AI interviewer, Pre employment assessment
A model that works through a problem in steps before it answers. It is slower but better at multi step jobs such as comparing a shortlist against a detailed brief or checking math.
Full definition, examples and FAQ for Reasoning model
ChatGPT, Claude or Grok for recruiters
Related: Large language model (LLM), Deep research
Recruiting CRM
RecruitingSoftware for building relationships with candidates before there is a job for them: talent pools, nurture emails and campaigns. Agencies often use one in place of, or alongside, an ATS.
Full definition, examples and FAQ for Recruiting CRM
Related: Applicant tracking system (ATS), Talent pool, Candidate nurture
Recruiting text messaging
Cold email and lead genTexting candidates about jobs, interviews and next steps. In the US, automated texts need prior consent under the TCPA.
Full definition, examples and FAQ for Recruiting text messaging
Recruitment marketing
RecruitingUsing marketing methods, such as career sites, content, ads and email, to attract candidates before and after they apply.
Full definition, examples and FAQ for Recruitment marketing
Compare recruitment marketing tools
Related: Employer brand, Candidate nurture
Recruitment process outsourcing (RPO)
Staffing and agenciesWhen a company hands all or part of its recruiting to an outside provider that acts as its in house team.
Full definition, examples and FAQ for Recruitment process outsourcing (RPO)
Reference check
RecruitingContacting people who have worked with a candidate to confirm their record and hear how they work. Automated tools now collect references by online survey.
Full definition, examples and FAQ for Reference check
Compare reference check toolsAI reference checks and job offers
Related: Background check
Reply rate
Cold email and lead genThe share of contacted people who reply. It is the most honest measure of cold email performance; positive replies are better still.
Requisition
RecruitingAn approved request to fill a job, usually with a budget, hiring manager and job title attached. Recruiters call it a req.
Full definition, examples and FAQ for Requisition
Related: Intake meeting, Time to fill
Resume parsing
RecruitingPulling the details out of a resume, such as name, contact details, jobs and skills, into fields in your ATS so they can be searched.
Full definition, examples and FAQ for Resume parsing
Related: Applicant tracking system (ATS), Natural language processing (NLP)
Retained search
Staffing and agenciesRecruiting where the client pays part of the fee up front to engage a firm exclusively, common for executive roles.
Full definition, examples and FAQ for Retained search
Related: Contingency recruiting, Executive search
A method where the tool first searches your documents or database for relevant material, then hands it to the model to write the answer. It is how an assistant can answer questions about your own candidates or policies.
Full definition, examples and FAQ for Retrieval augmented generation (RAG)
Related: Embedding, Vector database, Grounding
Return on investment (ROI)
MetricsWhat a tool or program returns compared with what it costs. For recruiting software it is usually the value of hours saved plus extra hires, against the subscription.
Full definition, examples and FAQ for Return on investment (ROI)
Recruiting software ROI calculatorMeasure the ROI of AI in recruiting
Related: Cost per hire
S
Sales qualified lead (SQL)
Cold email and lead genA lead that sales has checked and confirmed has a real need, budget and timing, ready for a sales conversation.
Full definition, examples and FAQ for Sales qualified lead (SQL)
Related: Marketing qualified lead (MQL)
A prompt or agent job set to run on a timer, such as a Friday market summary. ChatGPT, Claude and Grok all offer them in some plans.
Full definition, examples and FAQ for Scheduled task
Compare workflow automation toolsScheduled tasks in ChatGPT, Claude and GrokRecruiting automation recipes
Related: Agent skill, Workflow automation
Search that matches meaning instead of exact words, so “people who built payment systems” finds engineers who never wrote that phrase. Most AI sourcing tools work this way.
Full definition, examples and FAQ for Semantic search
Compare AI sourcing toolsSemantic search vs Boolean search
Related: Boolean search, Embedding
Sender reputation
Cold email and lead genHow much inbox providers trust your domain and mailboxes, built from bounces, spam complaints, replies and authentication. Low reputation sends you to spam.
Full definition, examples and FAQ for Sender reputation
Compare deliverability toolsSPF, DKIM and DMARC checker
Related: Spam complaint rate, Bounce rate, Sending domain
Sending domain
Cold email and lead genThe domain your outreach comes from. Many teams send cold email from a separate domain, such as getcompany.com, to protect the main company domain's reputation.
Full definition, examples and FAQ for Sending domain
Compare deliverability toolsSPF, DKIM and DMARC checker
Related: Sender reputation, Inbox rotation, Email warmup
Silver medalist
RecruitingA strong runner up who did not get the job. Silver medalists are often the fastest hires for the next similar opening.
Full definition, examples and FAQ for Silver medalist
Related: Candidate rediscovery
Soft bounce
Cold email and lead genA temporary delivery failure, such as a full inbox or a server that is down. The message may go through on a later try.
Full definition, examples and FAQ for Soft bounce
Compare email verification tools
Related: Hard bounce, Bounce rate
Source of hire
MetricsWhere hired candidates came from, such as a job board, referral, sourcing or an agency. It shows where to spend.
Formula and free calculator for Source of hire
Related: Employee referral, Job board
Sourcing
RecruitingFinding people who could fit a role, especially those who have not applied, by searching profiles, databases and networks.
Full definition, examples and FAQ for Sourcing
Compare sourcing toolsBoolean search builder
Related: Boolean search, AI sourcing, Passive candidate
Spam complaint rate
Cold email and lead genThe share of recipients who mark your email as spam. Google asks bulk senders to stay under 0.3%, and ideally under 0.1%.
Full definition, examples and FAQ for Spam complaint rate
Compare deliverability toolsOutreach with AI without landing in spam
Related: Sender reputation, Unsubscribe link
Spam trigger word
Cold email and lead genA word or phrase that can make filters or readers treat an email as spam, such as heavy sales language or fake urgency.
Full definition, examples and FAQ for Spam trigger word
Compare outreach toolsCold email spam word checker
Related: Email deliverability
SPF
Cold email and lead genSender Policy Framework: a DNS record listing the servers allowed to send email for your domain.
Full definition, examples and FAQ for SPF
Spintax
Cold email and lead genA template format that rotates word choices, such as {Hi|Hello}, so each email reads a little differently. It helps a bit with filters but does not replace real personalization.
Full definition, examples and FAQ for Spintax
Related: Merge field, Email deliverability
Split placement
Staffing and agenciesA placement where two agencies share the fee, one bringing the job and the other the candidate.
Full definition, examples and FAQ for Split placement
Related: Placement fee
Spread
Staffing and agenciesThe bill rate minus the pay rate per hour: the agency's gross margin in dollars before burden costs.
Staffing agency
Staffing and agenciesA firm that finds workers for client companies, either to place them permanently or to employ them and bill the client for temporary or contract work.
Full definition, examples and FAQ for Staffing agency
Related: Temporary staffing, Direct hire, Contingency recruiting
Structured interview
RecruitingAn interview where every candidate gets the same job related questions and is scored on the same scale. It is fairer and predicts job performance better than a free flowing chat.
Full definition, examples and FAQ for Structured interview
Related: Interview scorecard, Phone screen
Submittal
Staffing and agenciesA candidate an agency sends to a client for a job order, usually with a short write up of why they fit.
Full definition, examples and FAQ for Submittal
Screening and interview prompts
Related: Submittal to interview ratio, Job order
Submittal to interview ratio
MetricsHow many submitted candidates it takes to win one client interview. A key quality measure for agency recruiters.
Formula and free calculator for Submittal to interview ratio
Related: Submittal, Interview to offer ratio
Standing instructions that sit behind every chat, set by you or by the tool's maker. In ChatGPT, Claude and Grok you set your own as custom instructions or project instructions.
Full definition, examples and FAQ for System prompt
Related: Prompt, AI project
T
Talent acquisition
RecruitingThe full function of finding and hiring people, including employer brand, sourcing, recruiting and workforce planning. Often used as the name for an in house recruiting team.
Full definition, examples and FAQ for Talent acquisition
Related: Full cycle recruiting
Talent pipeline
RecruitingThe candidates moving through stages toward a hire, or lined up for roles you expect to open.
Full definition, examples and FAQ for Talent pipeline
Related: Talent pool, Pipeline conversion rate
Talent pool
RecruitingA group of candidates saved for future roles, such as past finalists or people with a skill you hire often.
Full definition, examples and FAQ for Talent pool
Related: Candidate rediscovery, Talent pipeline
Technographics
Cold email and lead genData on which software a company uses, such as its ATS or CRM. Vendors use it to find companies on a rival product; agencies use it to spot fast growing tech teams.
Full definition, examples and FAQ for Technographics
Related: Firmographics, Intent data
Telephone Consumer Protection Act (TCPA)
Law and complianceThe US law on automated calls and texts. Recruiters need prior consent before sending automated texts to candidates.
Full definition, examples and FAQ for Telephone Consumer Protection Act (TCPA)
Related: Recruiting text messaging
A setting that controls how predictable an AI's output is. Low temperature gives steadier, repeatable answers; high temperature gives more varied writing. Most chat apps set it for you.
Full definition, examples and FAQ for Temperature
Related: Large language model (LLM)
Temporary staffing
Staffing and agenciesWorkers employed by the agency and placed at a client for a set period. The client pays the agency an hourly bill rate.
Full definition, examples and FAQ for Temporary staffing
Related: Bill rate, Contract to hire
Time and attendance
HR and people opsTracking hours worked, breaks and overtime, usually feeding payroll.
Full definition, examples and FAQ for Time and attendance
Compare time and attendance tools
Related: Payroll, Workforce management
Time to fill
MetricsDays from opening a requisition to an accepted offer. It measures how long a seat sits empty.
Formula and free calculator for Time to fill
Related: Time to hire, Vacancy cost
Time to hire
MetricsDays from a candidate entering your process to accepting the offer. It measures how fast you move once you find someone.
Formula and free calculator for Time to hire
Related: Time to fill, Interview scheduling
Token
AIThe unit an AI model reads and writes in. A token is a word or part of a word, roughly three quarters of an English word on average. Usage limits and API prices are counted in tokens.
Full definition, examples and FAQ for Token
What is a large language model?
Related: Context window
The examples a model learned from. If past hiring decisions in that data were unfair, the model can repeat the pattern, which is why buyers ask vendors what their models were trained on.
Full definition, examples and FAQ for Training data
How bias gets into AI hiring tools
Related: Algorithmic bias, Machine learning
U
Unsubscribe link
Cold email and lead genA link or line that lets the reader stop future emails. It is required for commercial email in the US, and Gmail and Yahoo expect a one click version from bulk senders.
Full definition, examples and FAQ for Unsubscribe link
Related: CAN SPAM Act, Spam complaint rate
V
Vacancy cost
MetricsWhat an empty seat costs each day in lost output or revenue. It is often bigger than the cost of filling it.
Formula and free calculator for Vacancy cost
Related: Time to fill, Cost per hire
A database that stores embeddings and finds the closest matches fast. AI sourcing and candidate rediscovery tools use one to search millions of profiles by meaning.
Full definition, examples and FAQ for Vector database
Related: Embedding, Candidate rediscovery
Vendor management system (VMS)
Staffing and agenciesSoftware large clients use to release contract job orders to agencies, collect submittals and handle timesheets and invoices.
Full definition, examples and FAQ for Vendor management system (VMS)
Related: Managed service provider (MSP), Submittal
Visitor identification
Cold email and lead genTools that reveal which companies, and sometimes which people, visited your website, so you can follow up.
Full definition, examples and FAQ for Visitor identification
Related: Intent data, Lead generation
An AI that speaks and listens on a phone or video call, for example to run a screening call or confirm interview times. Check the consent and recording rules where your candidates live before you use one.
Full definition, examples and FAQ for Voice agent
Compare AI interviewing toolsWhat is an AI interviewer?
Related: AI interviewer, Conversational AI
W
W2 employee
Staffing and agenciesA US worker on an employer's payroll with taxes withheld. Agency temps are usually W2 employees of the agency.
Full definition, examples and FAQ for W2 employee
Related: 1099 contractor, Temporary staffing
Waterfall enrichment
Cold email and lead genChecking several data providers in order until one returns a valid email or phone, which finds more contacts than any single source.
Full definition, examples and FAQ for Waterfall enrichment
Compare contact data toolsWhat is contact data enrichment?
Related: Contact data enrichment
Workflow automation
RecruitingConnecting apps so routine steps happen on their own, such as moving a candidate, sending a reminder or updating the CRM.
Full definition, examples and FAQ for Workflow automation
Compare workflow automation toolsHow to automate a recruiting workflow
Related: Integration, Scheduled task
Workforce management
HR and people opsScheduling shift based staff to match demand and tracking their time, common in retail, healthcare and logistics.
Full definition, examples and FAQ for Workforce management
Compare workforce management tools
Related: Time and attendance
Workforce planning
HR and people opsWorking out how many people with which skills you will need, and when, so hiring starts before the gap hurts.
Full definition, examples and FAQ for Workforce planning
Compare workforce planning tools
Related: People analytics, Internal mobility
X
X ray search
RecruitingUsing Google's site: operator to search inside another website, for example site:linkedin.com/in with job titles, to find public profiles.
Full definition, examples and FAQ for X ray search
Compare sourcing toolsBoolean search string builder
Related: Boolean search, Sourcing
Z
A vendor promise that your prompts and files are not stored after the answer is returned and are not used for training. It matters when you paste candidate details into an AI tool.
Full definition, examples and FAQ for Zero data retention
What candidate data can you put into ChatGPT?
Related: Training data
#
1099 contractor
Staffing and agenciesA US worker paid as an independent contractor, not an employee, so no tax is withheld. Misclassifying employees as contractors carries legal risk.
Full definition, examples and FAQ for 1099 contractor
Related: W2 employee, Employer of record (EOR)
