---
title: "HR Glossary: Key Human Resources Terms & Definitions | Capterra"
description: "Explore our HR glossary with clear definitions of key human resources terms, from applicant tracking to workforce planning, backed by the latest 2026 survey data."
source_url: "https://www.capterra.com/resources/capterra-hr-glossary/"
page_type: "article"
language: "en"
---

# Capterra HR Glossary: Key HR Terms Explained

Written by:

Ines Bahr

Ines BahrAuthor

Associate Principal Analyst  Experience I’m an associate principal analyst with nearly 10 years of experience in content marketing and tech trends. I special...

[See bio & all articles](https://www.capterra.com/resources/author/ines-bahr/)

  

Published July 6, 2026

14 min read

Table of Contents

-   [ATS (Applicant Tracking System)](#ats-applicant-tracking-system)
-   [Benefits Administration](#benefits-administration)
-   [Exempt vs Non-Exempt Employees](#exempt-vs-non-exempt-employees)
-   [Furlough](#furlough)
-   [HRIS (Human Resource Information System)](#hris-human-resource-information-system)
-   [Insubordination](#insubordination)
-   [Performance Improvement Plan (PIP)](#performance-improvement-plan-pip)
-   [Performance Management](#performance-management)
-   [Recruiting](#recruiting)

**About this glossary:** Definitions are based on Capterra’s 2026 HR Software Trends Survey (n=1,000 US-based HR professionals), Capterra’s verified user reviews, and HR industry standards. Each entry is written for HR managers, small business owners, and anyone evaluating HR software.

## **ATS (Applicant Tracking System)**

An **applicant tracking system (ATS)** is software that automates the process of collecting, sorting, and managing job applications. It acts as a central database for candidate information, tracking each applicant from initial submission through interview, offer, and hire — or rejection.

<table class="my-md shadow-static border-1 table w-full rounded-md border-neutral-50 lg:table-auto"><tbody class="border-neutral-50"><tr class="border-1 table-row border-neutral-50"><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50"><b>Quick reference</b></p></td><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50"><b>Detail</b></p></td></tr><tr class="border-1 table-row border-neutral-50"><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50">Also known as</p></td><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50">Recruiting software, talent acquisition software</p></td></tr><tr class="border-1 table-row border-neutral-50"><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50">Primary users</p></td><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50">HR managers, recruiters, hiring managers</p></td></tr><tr class="border-1 table-row border-neutral-50"><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50">Core function</p></td><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50">Centralise and automate candidate pipeline</p></td></tr><tr class="border-1 table-row border-neutral-50"><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50">Common features</p></td><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50">Resume parsing, job board posting, interview scheduling, compliance tracking</p></td></tr></tbody></table>

**Why it matters in 2026:** According to Capterra’s 2026 HR Software Trends Survey, 47% of HR leaders identify hiring skilled professionals as their top challenge this year — the single most cited concern. ATS software directly addresses this. Of the companies surveyed, 74% currently use recruiting or ATS software, and 81% of those report actively using AI features within their tool — the highest AI adoption rate of any HR software category.

When organisations buy a new ATS, the most common trigger is improving system integrations (34%), followed by AI capabilities (21%). This reflects a shift away from standalone tools toward platforms that connect recruiting with onboarding, payroll, and performance data.

**Free vs paid ATS:** Free ATS tools typically cap job board syndication, limit the number of active job postings, and exclude advanced reporting. They work well for companies hiring fewer than five roles per year. Beyond that, the manual workarounds usually cost more time than a paid subscription saves in money.

**Related Capterra resources:**

-   [How HR Software Personalizes Recruiting and Onboarding (March 2026)](https://www.capterra.com/resources/how-hr-software-personalizes-recruiting-onboarding/)
    
-   [AI in Recruitment: What HR Teams Need to Know (November 2024)](https://www.capterra.com/resources/ai-in-recruitment/)
    
-   [4 Key Recruitment Trends to Look Out for in 2026 (November 2025)](https://www.capterra.com/resources/key-recruitment-trends-insights/)
    
-   [7 Top-Rated AI Applicant Tracking Software (March 2026)](https://www.capterra.com/resources/ai-applicant-tracking-software/)
    

* * *

## **Benefits Administration**

**Benefits administration** is the process of managing employee benefits programs — including health insurance, retirement plans, paid leave, and other perks — from enrollment through annual renewal and off-boarding. In modern HR, it refers both to the HR function itself and to the software that automates it.

<table class="my-md shadow-static border-1 table w-full rounded-md border-neutral-50 lg:table-auto"><tbody class="border-neutral-50"><tr class="border-1 table-row border-neutral-50"><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50"><b>Quick reference</b></p></td><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50"><b>Detail</b></p></td></tr><tr class="border-1 table-row border-neutral-50"><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50">Also known as</p></td><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50">Benefits management, total rewards administration</p></td></tr><tr class="border-1 table-row border-neutral-50"><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50">Primary users</p></td><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50">HR managers, benefits coordinators, payroll teams</p></td></tr><tr class="border-1 table-row border-neutral-50"><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50">Core function</p></td><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50">Enrol employees, track eligibility, process claims, manage compliance</p></td></tr><tr class="border-1 table-row border-neutral-50"><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50">Common features</p></td><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50">Open enrolment workflows, carrier integrations, ACA compliance, employee self-service</p></td></tr></tbody></table>

**Why it matters in 2026:** Benefits costs are the fastest-growing HR expense category. Capterra’s 2025 HR Software Trends Survey found that 78% of HR managers expect their benefits costs to increase this year — the highest share of any cost category, above payroll (72%), HR technology (76%), and recruiting (66%). Despite this, 22% of organisations still don’t use dedicated benefits administration software, managing the process manually or through spreadsheets.

Of the 78% that do use benefits software, nearly 48% use AI features within it — the lowest AI adoption of any HR software category, suggesting significant room for automation gains.

**For small businesses:** Managing benefits without software becomes legally risky once a company crosses 50 employees, at which point ACA reporting requirements apply. For a full picture of what benefits software costs, see Capterra’s HR Software Cost and Budget Benchmarks for SMBs.

**Related Capterra resources:**

-   [HR Software Cost and Budget Benchmarks for SMBs (December 2025)](https://www.capterra.com/resources/hr-software-cost-budget-benchmarks-smb/)
    
-   [Before You Buy AI HR Software: 6 Critical AI Challenges to Address (January 2026)](https://www.capterra.com/resources/buying-ai-hr-software-6-key-ai-challenges-to-address/)
    

* * *

## **Employee Engagement**

**Employee engagement** is the degree to which employees feel emotionally invested in their work, connected to their organisation’s goals, and motivated to contribute beyond their minimum requirements. It is distinct from job satisfaction — an employee can be satisfied (comfortable, not unhappy) without being engaged (actively invested).

<table class="my-md shadow-static border-1 table w-full rounded-md border-neutral-50 lg:table-auto"><tbody class="border-neutral-50"><tr class="border-1 table-row border-neutral-50"><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50"><b>Quick reference</b></p></td><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50"><b>Detail</b></p></td></tr><tr class="border-1 table-row border-neutral-50"><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50">Also known as</p></td><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50">Workforce engagement, employee experience</p></td></tr><tr class="border-1 table-row border-neutral-50"><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50">Opposite of</p></td><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50">Disengagement, quiet quitting</p></td></tr><tr class="border-1 table-row border-neutral-50"><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50">Measured by</p></td><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50">Pulse surveys, eNPS scores, turnover rate, absenteeism rate</p></td></tr><tr class="border-1 table-row border-neutral-50"><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50">Software category</p></td><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50">Employee engagement software, HRIS with engagement modules</p></td></tr></tbody></table>

**Why it matters in 2026:** Improving employee engagement is a top HR priority heading into 2026, cited by 38% of HR managers in Capterra’s 2025 HR Software Trends Survey. Only hiring skilled talent (44%) and upskilling (45%) ranked higher among operational challenges, with retaining employees cited by 36%. Notably, 65% of organisations currently use employee engagement or recognition software — and 75% of those use AI features within it, the second-highest AI adoption rate after recruiting tools.

The link between engagement and retention is direct: disengaged employees are significantly more likely to leave. Since 36% of HR managers also name retention as a top challenge, engagement investment has a double return — it reduces both the frequency and cost of turnover.

**How to measure it:** The most common metric is the employee Net Promoter Score (eNPS), which asks employees: “On a scale of 0–10, how likely are you to recommend this company as a place to work?” Scores above 20 are considered good; above 50, excellent.

**Related Capterra resources:**

-   [How SMBs Can Reduce Recruitment Costs and Improve Hiring Outcomes With AI Tools (January 2026)](https://www.capterra.com/resources/reduce-recruitment-costs-ai-tools/)
    

* * *

## **Employee Onboarding**

**Employee onboarding** is the structured process of integrating a new hire into an organisation — covering administrative setup, role orientation, team introduction, and early performance support — typically spanning the first 30 to 90 days of employment.

<table class="my-md shadow-static border-1 table w-full rounded-md border-neutral-50 lg:table-auto"><tbody class="border-neutral-50"><tr class="border-1 table-row border-neutral-50"><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50"><b>Quick reference</b></p></td><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50"><b>Detail</b></p></td></tr><tr class="border-1 table-row border-neutral-50"><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50">Also known as</p></td><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50">New hire orientation, new employee integration</p></td></tr><tr class="border-1 table-row border-neutral-50"><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50">Distinct from</p></td><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50">Preboarding (before day one), training (skills development)</p></td></tr><tr class="border-1 table-row border-neutral-50"><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50">Typical duration</p></td><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50">30–90 days (full ramp: up to 12 months)</p></td></tr><tr class="border-1 table-row border-neutral-50"><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50">Software category</p></td><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50">Onboarding software, HRIS with onboarding modules</p></td></tr></tbody></table>

**Why it matters in 2026:** Onboarding quality directly predicts early retention. Employees who experience structured onboarding are significantly more likely to remain with a company after 12 months. With 36% of HR managers citing retention as a top challenge in Capterra’s 2026 HR Software Trends Survey, onboarding is one of the highest-leverage investments available.

According to Capterra’s 2026 HR Software Trends Survey, 38% of HR users consider onboarding software critical to their operations, and the most common reason for switching platforms is the need to improve system integrations — specifically connecting onboarding with payroll, benefits, and HRIS data from day one.

**The onboarding vs orientation distinction:** Orientation is a one-time event (often a single day). Onboarding is the broader process of helping an employee become productive — it includes paperwork, but also role clarity, relationship building, and performance expectation-setting.

**Related Capterra resources:**

-   [How HR Software Personalizes Recruiting and Onboarding (March 2026)](https://www.capterra.com/resources/how-hr-software-personalizes-recruiting-onboarding/)
    
-   [How AI Onboarding Tools Are Reshaping HR Operations (May 2026)](https://www.capterra.com/resources/ai-onboarding-tools-for-hr/)
    

* * *

## **Exempt vs Non-Exempt Employees**

An **exempt employee** is not entitled to overtime pay under the Fair Labor Standards Act (FLSA). A **non-exempt employee** is entitled to overtime pay — at least 1.5× their regular hourly rate — for any hours worked beyond 40 in a workweek.

<table class="my-md shadow-static border-1 table w-full rounded-md border-neutral-50 lg:table-auto"><tbody class="border-neutral-50"><tr class="border-1 table-row border-neutral-50"><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50"><b>Quick reference</b></p></td><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50"><b>Exempt</b></p></td><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50"><b>Non-exempt</b></p></td></tr><tr class="border-1 table-row border-neutral-50"><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50">Overtime pay</p></td><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50">No</p></td><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50">Yes (1.5× for 40+ hours/week)</p></td></tr><tr class="border-1 table-row border-neutral-50"><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50">Typical pay structure</p></td><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50">Salary</p></td><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50">Hourly or salary</p></td></tr><tr class="border-1 table-row border-neutral-50"><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50">FLSA salary threshold (current)</p></td><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50">$684/week ($35,568/year) minimum</p></td><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50">Below threshold</p></td></tr><tr class="border-1 table-row border-neutral-50"><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50">Common roles</p></td><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50">Managers, professionals, executives</p></td><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50">Hourly workers, administrative roles below threshold</p></td></tr><tr class="border-1 table-row border-neutral-50"><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50">Timekeeping requirement</p></td><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50">Not required by FLSA</p></td><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50">Required</p></td></tr></tbody></table>

**Why the distinction matters:** Misclassifying a non-exempt employee as exempt is one of the most common and costly HR compliance errors. It exposes organisations to back-pay claims, penalties, and potential lawsuits. Capterra’s 2026 survey found that 28% of HR managers identify maintaining compliance as a top challenge — and wage-and-hour compliance is a significant part of that.

The three primary exemption categories under FLSA are: executive (manages two or more employees, has hiring/firing authority), administrative (performs office work directly related to management), and professional (requires advanced knowledge in a specialised field). A job title alone does not determine exemption status — the actual duties and salary level determine it.

**The software angle:** Payroll software automatically calculates overtime for non-exempt employees based on time-tracking data. Capterra’s survey shows 84% of organisations use payroll software, and 53% use AI features within it — increasingly for automated overtime detection and compliance alerting.

**Related Capterra resources:**

-   [Payroll Software Compliance Checklist for SMBs 2026 (February 2026)](https://www.capterra.com/resources/payroll-software-compliance-checklist-smbs-2026/)
    
-   [Payroll Pricing Explained: Flat-Rate vs Per-Employee Models (April 2026)](https://www.capterra.com/resources/payroll-pricing-models-guide/)
    

* * *

## **Furlough**

A **furlough** is a temporary, mandatory unpaid leave of absence imposed by an employer, during which the employee retains their job but does not work or receive a salary. It differs from a layoff in that the employer-employee relationship continues — furloughed employees typically retain their benefits and return to work once business conditions improve.

<table class="my-md shadow-static border-1 table w-full rounded-md border-neutral-50 lg:table-auto"><tbody class="border-neutral-50"><tr class="border-1 table-row border-neutral-50"><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50"><b>Quick reference</b></p></td><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50"><b>Furlough</b></p></td><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50"><b>Layoff</b></p></td></tr><tr class="border-1 table-row border-neutral-50"><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50">Employment status</p></td><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50">Retained</p></td><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50">Terminated</p></td></tr><tr class="border-1 table-row border-neutral-50"><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50">Benefits</p></td><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50">Usually retained</p></td><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50">Usually ended</p></td></tr><tr class="border-1 table-row border-neutral-50"><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50">Return to work</p></td><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50">Expected</p></td><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50">Not guaranteed</p></td></tr><tr class="border-1 table-row border-neutral-50"><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50">Unemployment eligibility</p></td><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50">Usually yes (varies by state)</p></td><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50">Yes</p></td></tr><tr class="border-1 table-row border-neutral-50"><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50">Employer intent</p></td><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50">Temporary cost reduction</p></td><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50">Permanent workforce reduction</p></td></tr></tbody></table>

**When furloughs happen:** Furloughs are most common during economic downturns, seasonal business slowdowns, or sudden revenue drops (as seen widely during 2020). They allow organisations to reduce labour costs quickly without losing trained employees — which would otherwise require expensive rehiring and onboarding once business recovers.

**Furlough vs layoff — why the distinction matters for HR:** From a payroll and compliance standpoint, furloughs are complex. Employers must continue to pay benefits during a furlough in most cases (though health insurance depends on plan terms). Exempt employees who work any part of a workweek must be paid their full weekly salary for that week — even if they are “on furlough” for the remaining days — or risk losing their exempt status under FLSA.

**The HR software angle:** Workforce management and time-tracking software helps HR teams administer furloughs correctly — tracking leave status, pausing payroll without terminating employment records, and maintaining accurate headcount data. Capterra’s 2026 survey found that 78% of organisations use time and attendance software, with 53% of those using AI scheduling features to manage variable workforce scenarios.

**Related Capterra resources:**

-   [Payroll Software Compliance Checklist for SMBs 2026 (February 2026)](https://www.capterra.com/resources/payroll-software-compliance-checklist-smbs-2026/)
    

* * *

## **HRIS (Human Resource Information System)**

An **HRIS (Human Resource Information System)** is a software platform that centralises employee data and automates core HR processes — including personnel records, payroll, benefits administration, time and attendance, and compliance reporting. It is the operational backbone of modern HR departments.

<table class="my-md shadow-static border-1 table w-full rounded-md border-neutral-50 lg:table-auto"><tbody class="border-neutral-50"><tr class="border-1 table-row border-neutral-50"><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50"><b>Quick reference</b></p></td><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50"><b>Detail</b></p></td></tr><tr class="border-1 table-row border-neutral-50"><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50">Also known as</p></td><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50">HRMS (Human Resource Management System), HCM (Human Capital Management)</p></td></tr><tr class="border-1 table-row border-neutral-50"><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50">Primary users</p></td><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50">HR teams, payroll managers, department heads</p></td></tr><tr class="border-1 table-row border-neutral-50"><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50">Core function</p></td><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50">Single source of truth for all employee data</p></td></tr><tr class="border-1 table-row border-neutral-50"><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50">Common features</p></td><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50">Employee records, payroll integration, self-service portal, reporting, compliance</p></td></tr><tr class="border-1 table-row border-neutral-50"><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50">Typical cost</p></td><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50">$5–$20/employee/month (SMBs average $17/month, based on Capterra’s 2025 buyer data)</p></td></tr></tbody></table>

**HRIS vs HRMS vs HCM — what’s the difference?**

<table class="my-md shadow-static border-1 table w-full rounded-md border-neutral-50 lg:table-auto"><tbody class="border-neutral-50"><tr class="border-1 table-row border-neutral-50"><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50"><b>Term</b></p></td><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50"><b>Scope</b></p></td><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50"><b>Best for</b></p></td></tr><tr class="border-1 table-row border-neutral-50"><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50">HRIS</p></td><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50">Core HR data and transactions</p></td><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50">SMBs, operational HR needs</p></td></tr><tr class="border-1 table-row border-neutral-50"><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50">HRMS</p></td><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50">HRIS + payroll + time/attendance</p></td><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50">Mid-market companies</p></td></tr><tr class="border-1 table-row border-neutral-50"><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50">HCM</p></td><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50">HRMS + talent management + workforce planning + analytics</p></td><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50">Enterprise organisations</p></td></tr></tbody></table>

In practice, these terms are used interchangeably by vendors. A platform marketed as “HCM” may have the same feature set as one called “HRMS.” What matters is whether the specific modules you need are included.

**Why it matters in 2026:** According to Capterra’s 2026 HR Software Trends Survey, 77% of organisations currently use a core HR platform (HRIS/HCM). Of those, 57% actively use AI features within their HRIS, with common applications including automated compliance alerts, predictive turnover analysis, and intelligent self-service responses. 67% of organisations plan to increase their HR software spending this year, with system integration being the top trigger for new HRIS purchases.

According to Capterra’s analysis of over 7,000 real buyer conversations, SMBs across industries typically budget $10–$39 per employee per month for HR software, with an overall average of $17 per employee per month. Entry-level platforms from vendors such as Deel and Deputy start at $5 per employee per month; BambooHR starts at $10.

**Related Capterra resources:**

-   [HR Software Cost and Budget Benchmarks for SMBs (December 2025)](https://www.capterra.com/resources/hr-software-cost-budget-benchmarks-smb/)
    
-   [Before You Buy AI HR Software: 6 Critical AI Challenges to Address (January 2026)](https://www.capterra.com/resources/buying-ai-hr-software-6-key-ai-challenges-to-address/)
    
-   [How HR Software Personalizes Recruiting and Onboarding (March 2026)](https://www.capterra.com/resources/how-hr-software-personalizes-recruiting-onboarding/)
    

* * *

## **Insubordination**

**Insubordination** is an employee’s deliberate refusal to follow a reasonable, lawful directive from a manager or employer. It requires three elements: a clear instruction was given, the employee understood it, and the employee intentionally chose not to comply.

<table class="my-md shadow-static border-1 table w-full rounded-md border-neutral-50 lg:table-auto"><tbody class="border-neutral-50"><tr class="border-1 table-row border-neutral-50"><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50"><b>Quick reference</b></p></td><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50"><b>Detail</b></p></td></tr><tr class="border-1 table-row border-neutral-50"><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50">Legal status</p></td><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50">Not a crime, but valid grounds for disciplinary action or termination</p></td></tr><tr class="border-1 table-row border-neutral-50"><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50">Key word</p></td><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50">Deliberate — accidental non-compliance is not insubordination</p></td></tr><tr class="border-1 table-row border-neutral-50"><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50">Must be</p></td><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50">A reasonable, lawful instruction (illegal orders cannot be refused as insubordination)</p></td></tr><tr class="border-1 table-row border-neutral-50"><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50">Distinct from</p></td><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50">Misconduct (broader), poor performance (capability, not defiance)</p></td></tr><tr class="border-1 table-row border-neutral-50"><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50">Documentation required</p></td><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50">Yes — always document before taking disciplinary action</p></td></tr></tbody></table>

**Common examples of insubordination:**

-   Refusing to complete an assigned task without justification
    
-   Publicly challenging or undermining a manager’s authority in front of colleagues
    
-   Ignoring a direct instruction after it has been clearly communicated
    
-   Walking off the job without authorisation
    

**What is not insubordination:**

-   Refusing an illegal instruction (e.g., being asked to falsify records)
    
-   Raising a concern through appropriate channels (e.g., HR complaint)
    
-   A genuine misunderstanding of what was asked
    
-   Poor performance resulting from inability rather than refusal
    

**How to handle it — the HR discipline process:**

1.  **Document the incident.** Record the instruction given, the response, the date, and any witnesses. This is the foundation of any disciplinary action.
    
2.  **Investigate before acting.** Give the employee an opportunity to explain. There may be a misunderstanding or a valid reason.
    
3.  **Apply progressive discipline.** Most HR policies follow a verbal warning → written warning → final warning → termination sequence. Skipping steps without cause creates legal exposure.
    
4.  **Be consistent.** Applying different standards to different employees for the same behaviour exposes employers to discrimination claims.
    

**The software angle:** HR software with built-in case management tools allows HR teams to document insubordination incidents, track disciplinary actions, and maintain a consistent, defensible record. Capterra’s 2026 survey found that 28% of HR managers cite maintaining compliance as a top challenge — and consistent discipline documentation is a core part of that.

**Related Capterra resources:**

-   [Before You Buy AI HR Software: 6 Critical AI Challenges to Address (January 2026)](https://www.capterra.com/resources/buying-ai-hr-software-6-key-ai-challenges-to-address/)
    

* * *

## **Performance Improvement Plan (PIP)**

A **performance improvement plan (PIP)** is a formal document that outlines specific performance deficiencies, sets measurable improvement targets, defines a timeline for achieving them, and establishes consequences if improvement is not achieved. It is used to give underperforming employees a structured opportunity to meet expectations before further action is taken.

<table class="my-md shadow-static border-1 table w-full rounded-md border-neutral-50 lg:table-auto"><tbody class="border-neutral-50"><tr class="border-1 table-row border-neutral-50"><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50"><b>Quick reference</b></p></td><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50"><b>Detail</b></p></td></tr><tr class="border-1 table-row border-neutral-50"><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50">Also known as</p></td><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50">Performance action plan, improvement plan</p></td></tr><tr class="border-1 table-row border-neutral-50"><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50">Duration</p></td><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50">Typically 30, 60, or 90 days</p></td></tr><tr class="border-1 table-row border-neutral-50"><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50">Outcome options</p></td><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50">Successful improvement, extension, role change, or termination</p></td></tr><tr class="border-1 table-row border-neutral-50"><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50">Legal purpose</p></td><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50">Creates a documented record of fair process</p></td></tr><tr class="border-1 table-row border-neutral-50"><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50">Who initiates</p></td><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50">Manager, with HR involvement</p></td></tr></tbody></table>

**A PIP is not a guarantee of termination.** Many employees successfully complete PIPs and return to satisfactory performance. However, it is a formal escalation step and should be treated seriously by both parties.

**What a PIP must include:**

-   Specific, measurable description of the performance gap (not vague statements like “attitude problems”)
    
-   Clear, achievable targets for improvement with metrics
    
-   Timeline with check-in milestones
    
-   Resources or support the employer will provide (training, coaching, tools)
    
-   Consequences if targets are not met
    
-   Employee acknowledgment signature (does not mean agreement, only receipt)
    

**PIP vs disciplinary action:** A PIP addresses performance — what an employee does or produces. Disciplinary action addresses conduct — how an employee behaves. An employee who is technically capable but refuses to comply would face disciplinary action (see: insubordination), not a PIP.

**The software angle:** Performance management software allows managers to initiate, track, and close PIPs within a documented system — maintaining a defensible HR record and enabling consistent application of improvement plans across the organisation. Capterra’s 2026 survey found that 72% of organisations use performance management software, with 66% actively using AI features within it.

**Related Capterra resources:**

-   [How HR Software Personalizes Recruiting and Onboarding (March 2026)](https://www.capterra.com/resources/how-hr-software-personalizes-recruiting-onboarding/)
    

* * *

## **Performance Management**

**Performance management** is the continuous process of setting expectations, monitoring progress, giving feedback, and evaluating employee performance against organisational goals. It replaces the outdated model of an annual review with an ongoing dialogue between managers and employees.

<table class="my-md shadow-static border-1 table w-full rounded-md border-neutral-50 lg:table-auto"><tbody class="border-neutral-50"><tr class="border-1 table-row border-neutral-50"><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50"><b>Quick reference</b></p></td><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50"><b>Detail</b></p></td></tr><tr class="border-1 table-row border-neutral-50"><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50">Also known as</p></td><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50">Employee performance management, talent performance management</p></td></tr><tr class="border-1 table-row border-neutral-50"><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50">Distinct from</p></td><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50">Performance review (single event), performance appraisal (assessment method)</p></td></tr><tr class="border-1 table-row border-neutral-50"><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50">Core cycle</p></td><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50">Goal setting → check-ins → feedback → formal review → development planning</p></td></tr><tr class="border-1 table-row border-neutral-50"><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50">Software category</p></td><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50">Performance management software</p></td></tr></tbody></table>

**Key components:**

<table class="my-md shadow-static border-1 table w-full rounded-md border-neutral-50 lg:table-auto"><tbody class="border-neutral-50"><tr class="border-1 table-row border-neutral-50"><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50"><b>Component</b></p></td><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50"><b>Detail</b></p></td></tr><tr class="border-1 table-row border-neutral-50"><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50">Goal setting</p></td><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50">OKRs or SMART goals aligned to business objectives</p></td></tr><tr class="border-1 table-row border-neutral-50"><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50">Continuous feedback</p></td><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50">Ongoing manager-employee dialogue, not just annual reviews</p></td></tr><tr class="border-1 table-row border-neutral-50"><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50">360-degree reviews</p></td><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50">Feedback from peers, direct reports, and managers</p></td></tr><tr class="border-1 table-row border-neutral-50"><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50">Performance improvement plans</p></td><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50">Structured support for underperforming employees</p></td></tr><tr class="border-1 table-row border-neutral-50"><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50">Succession planning</p></td><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50">Identifying high performers for future leadership roles</p></td></tr></tbody></table>

**Why it matters in 2026:** Capterra’s 2026 survey found 72% of organisations use performance management software — and 66% of those use AI features within it, making it the third-highest AI-adopting HR category. AI applications include automated goal tracking, sentiment analysis in written feedback, and predictive flight-risk identification.

The shift toward continuous performance management is reflected in the most common reason organisations switch platforms: 34% cite improving system integrations as the top trigger, specifically the need to connect performance data with compensation, learning, and succession planning systems.

**Related Capterra resources:**

-   [4 Key Recruitment Trends to Look Out for in 2026 (November 2025)](https://www.capterra.com/resources/key-recruitment-trends-insights/)
    
-   [How HR Software Personalizes Recruiting and Onboarding (March 2026)](https://www.capterra.com/resources/how-hr-software-personalizes-recruiting-onboarding/)
    

* * *

## **PTO (Paid Time Off)**

**PTO (Paid Time Off)** is a bank of paid leave hours that employees can use for any purpose — vacation, illness, personal days, or other absences — without specifying the reason. It replaces the traditional model of separate vacation, sick, and personal day buckets with a single, flexible balance.

<table class="my-md shadow-static border-1 table w-full rounded-md border-neutral-50 lg:table-auto"><tbody class="border-neutral-50"><tr class="border-1 table-row border-neutral-50"><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50"><b>Quick reference</b></p></td><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50"><b>Detail</b></p></td></tr><tr class="border-1 table-row border-neutral-50"><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50">Also known as</p></td><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50">Flexible PTO, unlimited PTO (specific variant), paid leave</p></td></tr><tr class="border-1 table-row border-neutral-50"><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50">Distinct from</p></td><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50">Unpaid leave, sick leave (where tracked separately), FMLA (legal entitlement)</p></td></tr><tr class="border-1 table-row border-neutral-50"><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50">Accrual methods</p></td><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50">Per pay period, per year (front-loaded), or no accrual (unlimited)</p></td></tr><tr class="border-1 table-row border-neutral-50"><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50">Payout on termination</p></td><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50">Required in some states (California, Colorado); optional in others</p></td></tr><tr class="border-1 table-row border-neutral-50"><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50">Federal requirement</p></td><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50">None — the US has no federal PTO mandate</p></td></tr></tbody></table>

**PTO accrual types explained:**

<table class="my-md shadow-static border-1 table w-full rounded-md border-neutral-50 lg:table-auto"><tbody class="border-neutral-50"><tr class="border-1 table-row border-neutral-50"><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50"><b>Accrual model</b></p></td><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50"><b>How it works</b></p></td><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50"><b>Best for</b></p></td></tr><tr class="border-1 table-row border-neutral-50"><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50">Per pay period</p></td><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50">Employee earns a set amount each pay cycle (e.g., 3.08 hours/biweekly = 10 days/year)</p></td><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50">Most common; predictable</p></td></tr><tr class="border-1 table-row border-neutral-50"><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50">Front-loaded</p></td><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50">Full year’s PTO granted at start of year</p></td><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50">Simple to administer</p></td></tr><tr class="border-1 table-row border-neutral-50"><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50">Unlimited PTO</p></td><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50">No formal accrual; employees take leave as needed</p></td><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50">Tech companies, trust-based cultures</p></td></tr><tr class="border-1 table-row border-neutral-50"><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50">Use-it-or-lose-it</p></td><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50">Unused PTO expires at year end</p></td><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50">Reduces liability but may reduce morale</p></td></tr></tbody></table>

**Why it matters in 2026:** Reducing tardiness and absenteeism was cited as an HR challenge by 16% of managers in Capterra’s 2026 survey — but how PTO is structured significantly affects absenteeism patterns. Organisations with unclear or punitive PTO policies often see more unplanned absences than those with flexible, transparent leave policies. Separately, 78% of managers expect benefits costs to increase this year, making PTO policy design a direct cost management decision.

**The software angle:** Time and attendance software automates PTO accrual calculations, tracks balances in real time, and handles manager approvals. Capterra’s survey found 78% of organisations use time and attendance software, with 53% actively using AI features for scheduling and leave prediction.

**Related Capterra resources:**

-   [Payroll Software Compliance Checklist for SMBs 2026 (February 2026)](https://www.capterra.com/resources/payroll-software-compliance-checklist-smbs-2026/)
    
-   [Payroll Pricing Explained: Flat-Rate vs Per-Employee Models (April 2026)](https://www.capterra.com/resources/payroll-pricing-models-guide/)
    

* * *

## **Recruiting**

**Recruiting** (also called talent acquisition) is the process of identifying, attracting, evaluating, and hiring candidates to fill open roles within an organisation. It encompasses everything from writing a job description and sourcing candidates to conducting interviews, extending offers, and onboarding new hires.

<table class="my-md shadow-static border-1 table w-full rounded-md border-neutral-50 lg:table-auto"><tbody class="border-neutral-50"><tr class="border-1 table-row border-neutral-50"><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50"><b>Quick reference</b></p></td><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50"><b>Detail</b></p></td></tr><tr class="border-1 table-row border-neutral-50"><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50">Also known as</p></td><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50">Talent acquisition, hiring, staffing</p></td></tr><tr class="border-1 table-row border-neutral-50"><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50">Distinct from</p></td><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50">Onboarding (post-hire), succession planning (internal talent), HR (broader function)</p></td></tr><tr class="border-1 table-row border-neutral-50"><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50">Key stages</p></td><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50">Sourcing → Screening → Interviewing → Offer → Onboarding</p></td></tr><tr class="border-1 table-row border-neutral-50"><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50">Primary software</p></td><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50">ATS (Applicant Tracking System)</p></td></tr></tbody></table>

**Internal vs external recruiting:**

<table class="my-md shadow-static border-1 table w-full rounded-md border-neutral-50 lg:table-auto"><tbody class="border-neutral-50"><tr class="border-1 table-row border-neutral-50"><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50"><b>Type</b></p></td><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50"><b>Definition</b></p></td><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50"><b>Advantages</b></p></td></tr><tr class="border-1 table-row border-neutral-50"><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50">Internal</p></td><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50">Promoting or transferring existing employees</p></td><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50">Faster, lower cost, boosts retention</p></td></tr><tr class="border-1 table-row border-neutral-50"><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50">External</p></td><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50">Hiring candidates from outside the organisation</p></td><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50">Fresh skills, new perspectives, larger talent pool</p></td></tr><tr class="border-1 table-row border-neutral-50"><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50">RPO (Recruitment Process Outsourcing)</p></td><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50">Outsourcing some or all recruiting to a third party</p></td><td class="p-md table-cell border-neutral-50 align-top"><p class="mb-xl sb type-50">Scales with volume; specialist expertise</p></td></tr></tbody></table>

**The state of recruiting in 2026:** Attracting and hiring skilled professionals is the top HR challenge of 2026, cited by 44% of HR leaders in Capterra’s 2025 HR Software Trends Survey. Of the organisations surveyed, 74% currently use recruiting or ATS software, and 81% of those use AI features — the highest AI adoption of any HR software category. The most common AI applications in recruiting are resume screening, candidate ranking, and interview scheduling automation.

**Related Capterra resources:**

-   [How HR Software Personalizes Recruiting and Onboarding (March 2026)](https://www.capterra.com/resources/how-hr-software-personalizes-recruiting-onboarding/)
    
-   [AI in Recruitment: What HR Teams Need to Know (November 2024)](https://www.capterra.com/resources/ai-in-recruitment/)
    
-   [4 Key Recruitment Trends to Look Out for in 2026 (November 2025)](https://www.capterra.com/resources/key-recruitment-trends-insights/)
    
-   [10 Top-Rated AI-Enabled Recruiting Software (January 2026)](https://www.capterra.com/resources/top-rated-ai-recruiting-software/)
    

## Capterra's 2026 Software Buying Trends Report

### Download our 2026 Software Buying Trends Report to see how successful software adopters avoid disappointment and how your business can, too.

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Sources

_This glossary is maintained by Capterra’s HR research team and updated based on our annual HR Software Trends survey. All survey data cited is from Capterra’s 2026 HR Software Trends Survey, conducted in February 2026 among 1,000 respondents in the U.S._

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### Was this article helpful?

* * *

## About the Author

[### Ines Bahr](https://www.capterra.com/resources/author/ines-bahr/)

Ines Bahr is an associate principal analyst at Capterra with nearly 10 years covering HR software markets. She leads HR research and content for US-based SMB buyers and hosts monthly SHRM- and HRCI-accredited webinars on HR technology adoption.

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