20 common recruitment terms every recruiter MUST know

By Jony — ON Jan 24, 2024

Have you ever found hiring terms confusing

No worries.

We’ve got a list of common recruitment buzzwords explained in simple words just for you.

This quick guide simplifies 20 essential terms- no need to Google “talent pool” or question “candidate ghosting.”

Ready for more insights? Dive in!

1. Applicant Tracking System (ATS):

Applicant tracking software is a tool that automates the hiring process, from receiving applications to finalizing hires.

This streamlines recruitment by helping you save time and reduce manual errors.

Recruiters use ATS systems to post job openings, screen resumes, and manage candidate communications.

By using ATS effectively, you can:

Post job openings on multiple platforms with a single click.
Collect and store candidate information securely.
Automatically screen resumes and cover letters for specific keywords and skills.
Schedule interviews and send automated notifications.
Track the progress of candidates throughout the hiring process.

2. Boolean search

Boolean search uses logical operators (such as AND, OR, and NOT) to refine and enhance search results by combining or excluding specific keywords or criteria.

Recruiters use Boolean search in resume databases and LinkedIn to find candidates with specific skill sets.

By using these, you can narrow the candidate pool to match the job requirements.

You can tailor the search queries to suit the specific needs of the role.

For instance, if a role requires a specific certification or experience level, including those as keywords can immediately refine the search results.

3. Candidate persona

A candidate persona is a representation of your ideal job candidate.

This concept, borrowed from marketing’s buyer persona, involves creating a detailed profile of the person who would fit perfectly into a role at your company.

This persona includes demographics, skills, experience, motivations, and personality traits.

You can quickly sort through applicants and focus on those closely matching the persona, reducing time and resources spent on unsuitable candidates.

4. Diversity hiring

It refers to hiring candidates without bias towards gender, age, ethnicity, and other personal characteristics.

How to implement diversity hiring?

Revise job descriptions:
Ensure the job descriptions are inclusive and free from gendered language or other biases that might deter diverse applicants.
Diverse sourcing channels:
This could include diversity-focused job fairs, forums, or online platforms.
Bias-free recruitment process:
Implement anonymous resume reviews or structured interviews to minimize unconscious biases.
Diversity training for hiring teams:
Educate the recruitment team on diversity and inclusion to foster awareness and sensitivity during hiring.
Track and measure:
Metrics include diversity ratios within the company and among new hires.

5. Employee Value Proposition (EVP)

The unique set of benefits and values an employee receives in return for their skills and experience. It’s vital in attracting and retaining talent. Recruiters highlight a company’s EVP in job postings and interviews.

Here’s an example:

Job Posting Highlighting EVP:

Join [Company Name] as a Software Developer and immerse yourself in an environment that values innovation and personal growth. Benefit from our culture of continuous learning, career advancement opportunities, and a supportive, diverse workplace. Apply now to be a part of our dynamic team!

6. Freelance economy:

The freelance economy refers to the trend of individuals working as independent contractors or freelancers. This shift reflects a new era of work-life balance and flexibility.

It holds significant importance for recruiters for several reasons:

It opens up a vast pool of talent that might not be available through traditional full-time employment channels.
Freelancers often possess specialised skills and experience that are highly valuable, they can be more cost-effective for organisations, especially for short-term projects or when the demand for labor fluctuates.
By engaging with the freelance economy, recruiters align with these modern work preferences, enhancing employer branding and attractiveness to a broader demographic.
This allows companies to test new initiatives and projects with a lower commitment level.

7. Ghosting

Refers to the situation where a candidate or employer stops responding to communication without explanation. Yes, it happens in recruiting, too, and it’s as spooky as it sounds!

Ghosting can occur at any stage of the hiring process, from initial contact and interviews to post-offer discussions.

To mitigate the risk of ghosting, you can take several proactive steps:

Maintain regular, transparent communication throughout the hiring process.
Encourage and provide feedback at each stage of the recruitment process.
Simplify and expedite the recruitment process. Lengthy hiring processes can lead to candidate drop-off.
Utilize recruitment software that can track candidate engagement levels and flag potential ghosting situations before they happen.

8. Headhunting

Headhunting is a targeted recruitment approach where recruiters proactively seek out and approach individuals with specific, often high-level, or specialized skills and experience.

It can more efficiently fill specific roles, primarily executive or specialized positions.

Since headhunters target candidates who already meet the specific criteria, the process can be quicker than sorting through many applications from a job posting.

Key requirements for effective headhunting:

Understanding of the sector: you must have a thorough understanding of the industry you are recruiting in, including trends, challenges, and key players.

Engagement: Maintaining regular contact with these networks, even when not actively recruiting, is vital for maintaining relationships.
Market insight: Continuous research to stay updated on market trends and salary benchmarks is vital.

In essence, successful headhunting requires market knowledge, networking expertise, research and assessment skills, and the ability to communicate effectively and ethically.

9. Inclusion:

Inclusivity is about creating a fair and equitable hiring process that fosters a sense of belonging for everyone, regardless of their background, identity, or experiences.

It means actively removing barriers and biases throughout the recruitment journey, from sourcing and attracting talent to interviewing and onboarding.

Many companies are actively implementing inclusion initiatives in their recruitment processes, including

Partnering with diversity and inclusion organizations.
Setting diversity hiring goals and tracking progress.
Using technology to remove bias from the recruitment process.
Creating employee resource groups (ERGs) for underrepresented groups.
Offering unconscious bias training for all employees.
Promoting a culture of inclusivity throughout the company.

Building a truly inclusive team requires breaking down barriers, prioritizing fairness, and nurturing a welcoming culture where everyone belongs.

10. Job board:

It’s a virtual marketplace where companies or recruiters post open positions, and job seekers browse and apply for opportunities that match their skills and interests.

Types of job boards:

General job boards: Offers various industries and job types, like Indeed, LinkedIn Jobs, and Monster.
Niche job boards: Focuses on specific industries or professions, like Dice (technology), Mediabistro (media), and LawCrossing (legal).
Local job boards: Connect job seekers and employers in a specific area.
Government job boards: List openings for public sector positions.

Choosing the right job board:

Consider your industry, job type, location, and career goals.
Research different job boards and their features.
Read reviews and compare pricing options.
Utilize multiple job boards to maximize your reach.

Using it strategically and effectively increases your chances of finding the perfect candidate for your company.

11. Key Performance Indicator (KPI)

KPIs are quantifiable metrics that track specific aspects of your recruitment process. They tell you how effectively you attract, source, screen, and convert candidates into hired employees.

KPIs are like a fitness tracker for your recruitment process, helping you measure progress, identify areas for improvement, and ultimately achieve your talent acquisition goals.

Examples of common recruitment KPIs include

Time to Hire, which measures the average number of days it takes to fill a position.
Cost per Hire: Calculates the average cost of filling a position, including advertising, agency fees, and internal resources.
Source of hire: Tracks the origin of successful hires (e.g., job boards, referrals, employee referrals).
Offer acceptance rate: Measures the percentage of candidates who accept your job offer.
New hire retention rate: The new hire retention rate tracks the percentage of new hires who remain with the company after a certain period, such as 6 months or 1 year.

How companies are adapting to KPIs:

Investing in Recruitment Technology: Utilizing applicant tracking systems and analytics tools to track and analyze KPIs effectively.
Empowering Recruiters with Data: Providing recruiters with real-time data and dashboards to make informed decisions.
Adopting a Continuous Improvement Mindset: Regularly review and refine KPIs to ensure they remain relevant and impactful.

12. Labor market

This term refers to the supply and demand dynamics of the workforce. For recruiters, understanding the labor market is crucial in strategizing hiring.

For instance, you may notice increased demand for AI specialists in the market. With this insight, you can proactively source these professionals, ensuring their company stays competitive in securing top talent.

Benefits for recruiters:

Improved hiring efficiency: Find suitable candidates faster by understanding where and how to look.
Reduce hiring costs: Avoid unnecessary recruitment efforts by focusing on available talent pools.
Make data-driven decisions: Base your recruitment strategy on objective data, not just gut feeling.
Attract top talent: Offer competitive packages and opportunities aligned with current market trends.

13. Onboarding:

It is the process of integrating new employees into your company and helping them understand their roles, culture, and values. It’s like the introductory course for your organization, setting them up for success and boosting retention.

How to onboard candidates effectively?

Pre-boarding: Start before day one! Send welcome materials, offer virtual introductions, and complete paperwork electronically.
First day & week: Create a warm welcome – introduce colleagues, provide equipment, and offer thorough training on company policies and procedures.
First month & beyond: Assign mentors, continue skill development, provide performance feedback, and encourage integration into company culture and social events.

This personalized and engaging onboarding experience sets the designer up for success, increases their satisfaction, and benefits both the individual and the company.

Remember, a successful onboarding process lays the foundation for a long-term, thriving relationship between your company and its new employees.

14. Passive candidate:

A passive candidate is currently employed and not actively seeking a new job but might be open to the right opportunity.

While they present a valuable source of skilled and experienced professionals, recruiting them requires a different approach than targeting active job seekers.

Why are passive candidates important for recruiters?

Access to a broader talent pool: By reaching out to passive candidates, recruiters expand their search beyond the active job market, tapping into a pool of potentially highly qualified individuals.
Reduced competition: These candidates are likely not interviewing with multiple companies, so there might be less competition for their hire.
High-quality candidates: Passive candidates often possess solid skills and experience, as they are currently employed and potentially successful in their roles.
Stability and longevity: They might offer more stability as they are not frequently moving between jobs.

Engaging with passive candidates is a strategic approach in recruitment, requiring a more nuanced and personalized method.

It’s about connecting with potential candidates in a way that resonates with their current career satisfaction and future aspirations and presenting opportunities that are compelling enough to consider a change.

15. Quality of Hire(QoH):

This metric evaluates the value a new hire adds to your organization. It indicates the long-term success of recruitment efforts. Recruiters assess this through performance evaluations and retention rates.

So, how do you measure QoH?

There’s no magic formula, but some common metrics include:

Performance: Are they meeting (or exceeding) expectations?
Retention: How long do they stick around?
Impact: How much do they contribute to the team and company goals?

Tips for recruiting high-performing individuals:

Go beyond the resume and look for cultural fit, passion, and potential.
Use assessments and tests to measure skills and critical thinking.
Structure your interviews: Ask targeted questions to assess fit and potential.
Show why working with you is awesome!
Invest in onboarding, Make new hires feel welcome, and set them up for success.

16. Recruitment funnel

The recruitment funnel visually represents the journey, outlining a candidate’s stages, from awareness to becoming a hired employee.

The funnel typically consists of several key stages:

Awareness: Generating interest in your company and the open position. This involves employer branding, job postings, and outreach to potential candidates.
Attraction: Encouraging qualified candidates to apply. This can be achieved through compelling job descriptions, highlighting company culture, and showcasing career growth opportunities.
Application: Streamlining the application process to make it user-friendly and accessible.
Screening and evaluation: Assessing candidates based on skills, experience, and cultural fit. This can involve resume reviews, skills assessments, and initial interviews.
Interviewing: Evaluating candidates in-depth through various interview formats, reference checks, and background screenings.
Offer and onboarding: Extending a competitive offer, negotiating terms, and seamlessly integrating the new hire into the company culture.

Crucial in today’s recruiting: a well-defined recruitment funnel is essential for several reasons:

Competition for skilled talent: With low unemployment rates and a growing skills gap, attracting and retaining top talent requires a targeted and optimized approach.
Rise of passive candidates: Many skilled individuals are not actively seeking new jobs, so recruiters must engage them using targeted outreach and employer branding strategies.
Digital-first environment: Online platforms and social media play a crucial role in attracting and engaging candidates, necessitating a digital-friendly recruitment funnel.
Focus on candidate experience: With more emphasis on candidate experience, employers must ensure a smooth and positive journey through the funnel to attract and retain talent.

17. Sourcing

Sourcing is the active and proactive search for qualified candidates for open positions, even before they apply. Recruiters use various channels, like social media and professional networks, for sourcing.

Why source candidates?

Reach passive candidates who aren’t actively looking but are open to the right opportunity.
Stand out from the competition by proactively contacting skilled individuals before they’re flooded with offers.
Nurture connections with potential candidates, creating a talent pipeline for future needs.
Improve Quality of Hire, focus on skills and cultural fit, leading to better long-term performance.

By refining your strategy, using the right tools, and engaging with potential candidates authentically, you can build a talent pipeline of hidden gems and ensure your company attracts the best fit for future success.

18. Talent pool

A talent pool is a database or network of potential candidates with the skills, experience, and cultural fit to contribute to your organization’s success.

Maintaining a talent pool allows for quicker sourcing when positions open up.

Advanced talent pool strategies:

Predictive analytics: Utilize data and AI tools to identify potential candidates who might be a good fit for future roles based on their skills, interests, and career trajectories.
Virtual communities: Create online forums or platforms where potential candidates can connect with your company and each other, fostering a sense of belonging and community.
Micro-targeting: Use niche platforms and tailored outreach to reach specific talent segments with highly relevant opportunities.
Employee branding campaigns: Develop effective employer branding initiatives that showcase your company culture, values, and employee experiences to attract top talent.

Emerging trends in talent pools:

Artificial intelligence (AI): To optimize pool management, use AI-powered tools for automated sourcing, candidate matching, and talent intelligence.
Gig economy talent: Consider incorporating independent contractors and freelance professionals into your talent pool for specific projects or flexible work arrangements.
Global talent pools: Expand your horizons and look beyond traditional geographical boundaries to tap into broader talent pools with diverse skills and perspectives.

19. Unique Selling Proportion (USP)

The factor that sets a company apart from its competitors in the eyes of potential employees.

For recruiters, understanding and communicating the company’s USP is crucial in attracting top talent and setting the organization apart from others in the job market.

So, what makes your company unique?

Is it your amazing work environment? (Hey, those perks can matter!)
Do you offer incredible opportunities for growth and development?
Is it your strong company culture? Maybe you have a team that feels like family, where everyone supports each other and has much fun together.

Whatever it is, your USP is the thing that makes your company stand out and shine.
It’s the reason why someone would choose you over another company, even if they offered a slightly higher salary or fancier title.

Here’s how to find your USP:

Think about your company. What are you really good at? What makes you different? What do your employees love about working for you?
Think about your ideal candidate. What kind of person are you trying to attract? What are their needs and desires? What would make them excited to work for you?
Put it all together. Find the intersection between what your company does well and what your ideal candidate is looking for. That’s your USP!

Once you have your USP, share it in your job postings, on your website, and in all your recruitment materials. Ensure everyone knows what makes your company unique and why they should join your team.

20. Workplace flexibility:

It’s about giving employees control over how, where, and when they work.

Recruiters who promote workplace flexibility can attract a broader range of candidates, particularly those who value work-life balance.

Key points for recruiters to consider:

Define your flexibility policy: Clearly articulate options and set parameters to ensure operational efficiency.
Technology is key: Invest in tools and infrastructure that support remote work and collaboration, like video conferencing platforms and project management software.
Communication is crucial: Maintain clear communication channels, set expectations, and provide regular feedback to ensure smooth collaboration with remote teams.
Measure and adapt: Track the impact of your flexibility policy and make adjustments as needed to optimize its effectiveness.

Today’s workforce, particularly millennials and Gen Z, prioritize work-life balance and personal well-being over rigid, traditional work models. Offering flexibility caters to these modern priorities, making your company more attractive to top talent.

Hope this article helped you get familiar with some of the most used recruitment terms. Keep upskilling, and happy recruiting!