Glossary

Recruiting Glossary

The key terms related to recruiting, talent acquisition, and the job market—explained briefly and clearly, with a focus on Austrian labor law. 33 Terms from A to Z.

S

Severance pay new: Under the “severance pay new” system, employers contribute 1.53% of the monthly gross salary into an occupational pension fund for all employment relationships commenced since 2003. Unlike before, the accrued balance is preserved and transferable even upon voluntary resignation.
Skill shortage: Skill shortage refers to the situation where vacant positions cannot or can hardly be filled due to a lack of suitably qualified individuals. In Austria, it is noticeable in many sectors and shifts market power to the candidates.
Skill-based Hiring: Skill-based hiring focuses on an individual's actual competencies rather than formal criteria like degrees or a seamless resume. The goal is more accurate and fairer decisions and a larger pool of candidates.
Special payments (13th/14th salary): Special payments are holiday and Christmas bonuses—the so-called 13th and 14th salaries. They are not legally mandatory but are provided for in nearly all Austrian collective agreements (Kollektivverträge) and enjoy tax benefits up to a certain allowance.

A

Active Sourcing: Active Sourcing is the active, direct approach to suitable candidates—instead of just waiting for applications in response to an ad. Recruiters identify profiles, for example on LinkedIn or Xing, and proactively and personally reach out.
All-in contract: An all-in contract agrees on a total salary that covers the base salary and all additional hours and overtime as a flat rate. It is permissible in Austria only if the total compensation covers the collective agreement (Kollektivvertrag) minimum salary, including actual overtime worked (annual coverage check).
Applicant Tracking System (ATS): An Applicant Tracking System (ATS) is software for managing applications and selection processes. It consolidates candidate data, status, communication, and evaluations in one place.
AI matching: Matching refers to the data-driven comparison between a job's requirements and candidate characteristics. AI matching uses semantic similarity and weighted criteria to generate suitable suggestions with explanations – the decision remains human.
Additional pay (actual salary): Additional pay is the part of the salary that exceeds the minimum wage in the collective agreement (Kollektivvertrag). The actual salary (Ist-Gehalt) consists of the collective agreement minimum plus additional pay and is the main focus of negotiation.

B

Boolean Search: Boolean Search is the process of finding candidates using logical operators (AND, OR, NOT) and parentheses to narrow down profiles precisely. It is a fundamental tool of Active Sourcing and works equally well in search engines, networks, and resume databases.

C

Candidate Experience: Candidate Experience is the overall experience of a person in the application process – from the job ad through communication to acceptance or rejection. A good experience strengthens the employer brand, while a bad one measurably harms it.
Candidate Relationship Management (CRM): Candidate Relationship Management (CRM) refers to the systematic nurturing and development of relationships with potential and current candidates throughout the entire talent lifecycle. The aim is to retain talent for the long term and expedite recruiting when needed.
Cost-per-Hire: Cost-per-Hire is the average total cost of a hire: internal and external expenses divided by the number of hires. These include ads, tools, personnel time, and service provider fees.
Cultural Fit / Cultural Add: Cultural Fit describes how well a person’s values and work style match the team and company. The newer term Cultural Add emphasizes what new elements a person brings – ensuring selection doesn't replicate the existing workforce.
Certificate of Employment: The Dienstzeugnis is a written confirmation of the duration and type of employment to which employees are entitled at the end of the employment relationship (§ 39 AngG). Unlike the German "qualified reference," the Austrian Dienstzeugnis is generally a simple certificate – evaluations and negative wording are not permitted.
Collective agreement (Kollektivvertrag): A collective agreement is an industry-wide binding agreement between a union and an employers' association (usually WKO). It primarily sets minimum salaries, bonuses, and working time regulations. In Austria, around 98% of employees are covered by it.

D

Deep Match: Deep Match is the voccess approach that goes beyond simple keyword matching by aligning on three levels: Company Fit (culture, values, strategy), Team & Role Fit (leadership, team context, personality), and Task Fit (tasks, skills, responsibility).

E

Employer Branding: Employer Branding is the development and maintenance of an attractive employer brand. At the core is the Employer Value Proposition (EVP) – the credible promise of why one should work at this company. It impacts internally (retention) and externally (attraction).
Executive Search: Executive Search is the targeted direct search for executives and highly specialized experts. A recruitment consultancy searches discreetly and proactively in the market, instead of publicly advertising a position.
Equal Treatment Act (GlBG): The Equal Treatment Act prohibits discrimination in the workplace — including gender, age, origin, religion, ideology, sexual orientation, or disability. It applies from the job ad through selection to termination.
Employment group / classification: The assignment group assigns an activity to a level in the salary schedule of the collective agreement (Kollektivvertrag). The minimum salary under the collective agreement results from the assignment group and the number of years of experience – the actual activity is decisive, not the job title.

M

Mandatory salary information in job ads: In Austria, according to § 9 of the Equal Treatment Act (GlBG), every job ad must state the collective agreement (Kollektivvertrag), legal, or company minimum salary and — if desired — the willingness to pay more. Omission may lead to administrative penalties.

P

Parental leave: Parental leave is the legal leave from work for child care with protection against dismissal. It can be taken until the child's second birthday at most and is distinct from the financial benefit (childcare allowance).
Passive candidates: Passive candidates are individuals not actively seeking a job but generally open to a suitable offer. They make up the majority of the job market and are practically unreachable through ads – only via Active Sourcing.

N

Notice period (employees): The notice period is the time between announcement and the end of the employment relationship. For employer termination of employees, it is at least six weeks according to § 20 of the Employee Act, increasing with service time to up to five months; employees typically give one month's notice.
Non-cash benefit (company car): A non-cash benefit for a company car refers to the monetary value employees receive for the private use of the employer-owned vehicle. The value is determined and taxed according to the non-cash benefit value ordinance.

O

Onboarding: Onboarding is the structured professional, organizational, and social integration of new employees. Ideally, it starts before the first day (Preboarding) and plays a crucial role in whether someone stays with the company.

R

recruitment services: In recruitment services, a provider finds suitable candidates who are then directly employed by the company. It differs from temporary employment (leasing) where the person remains employed by the lessor.
Recruiting Funnel: The recruiting funnel describes the selection process as a funnel – from many contacts and applications through several stages to a single hire. Conversion rates between stages indicate where candidates are lost.
Retention (employee retention): Retention is a company's ability to keep employees long-term. It is the flipside of turnover: Every unwanted resignation incurs costs for replacement, onboarding, and knowledge loss.

T

Trial month / probation period: The trial month is an agreed testing period at the beginning of an employment relationship, during which both parties can terminate at any time without providing reasons. In Austria, it may last a maximum of one month.
Talent Pool / Talent Pipeline: A talent pool is a curated database of interesting candidates with whom contact has already been made—such as former applicants or actively sourced profiles. It shortens future hires, as suitable people don't need to be sought anew each time.
Time-to-Hire: Time-to-Hire measures the time from first contact with a candidate to signing the contract. It indicates the efficiency of the selection process; the related metric Time-to-Fill measures from the release of the vacancy.

This glossary provides an overview to the best of our knowledge (as of July 2026) and does not replace legal advice. Binding information on labor law and collective agreements is provided by the Chamber of Labor and the relevant trade union.