<img height="1" width="1" style="display:none;" alt="" src="https://px.ads.linkedin.com/collect/?pid=231787&amp;fmt=gif">

Human Resource Glossary for HR Terms

HR Glossary

This comprehensive glossary of human resource (HR) terms defines words and phrases frequently used by HR professionals. We would like to encourage you to share and make use of this library. If you have any suggestions of terms we have missed or neglected please contact us & we will include it in our next update.
.

−#−

360-degree Feedback

Is an instrument to get performance ratings and feedback from subordinates, peers, customers, and/or supervisors ....

CONTINUE READING

−A−

Abilene Paradox

Refers to a situation when a group makes a collective decision that is counter to the thoughts and feelings of an individual ....

CONTINUE READING

Absconding

Is an action on the part of the employee, where he/she just leaves the organization without informing their employee....

CONTINUE READING

Absolute Ratings

A rating method where the rater assigns a specific value on a fixed scale to the behavior or performance of an individual ....

CONTINUE READING

Absenteeism Policy

A policy about attendance requirements, scheduled and unscheduled time off, and measures for dealing with absenteeism ....

CONTINUE READING

Agile HR

It refers to the way of working and organizing of the HR function that facilitates responsiveness ....

CONTINUE READING

Applicant tracking system

It is a type of recruiting software that helps streamline the hiring process for an organization from beginning to end ....

CONTINUE READING

Appraisal

Are meetings set up by the employer that allow the employer to discuss the performance of their employee ....

CONTINUE READING

Appraisal Letter

Are written by the HR department to notify specific employees to praise their work performance during a calendar year ....

CONTINUE READING

Apprenticeship

Is a training program for individuals who desire to become recognized in a specific trade or craft ....

CONTINUE READING

Assessment Centres

Participants undertake a wide range of tasks and activities designed to assess their suitability for a particular organisation ....

CONTINUE READING

Attendance Policy

Is a set of rules related to the attendance of employees. It includes rules related to sick leaves, casual leaves ....

CONTINUE READING

Attrition

A term used to describe voluntary and involuntary terminations, deaths, and employee retirements that result ....

CONTINUE READING

−B−

Background Check

A process by which a person or company uses to verify that a person is who they claim to be ....

CONTINUE READING

Background Verification

Is a process many organizations carry out in order to verify the information provided by the candidate during hiring ....

CONTINUE READING

Balanced Scorecard

A strategic planning and management system that is used to tie business activities to the vision and mission statement ....

CONTINUE READING

Basic Salary

Basic salary refers to the amount of money that an employee receives prior to any extras being added or payments ....

CONTINUE READING

Behavioral competency

Behavioral competency is essentially an evaluation of the character traits of an employee ....

CONTINUE READING

Behaviorally Anchored Rating Scale

An appraisal that requires raters list important dimensions of a particular job and collect information regarding ....

CONTINUE READING

Bell Curve

Bell curves, also called Gaussian distributions and normal distributions, are so-called because the line ....

CONTINUE READING

Benchmarking

It is a process of measuring the performance of an organization or team through a variety of metrics ....

CONTINUE READING

Bonus

Is a financial compensation that is above and beyond the normal paycheck of the recipient ....

CONTINUE READING

Bumping

Giving long-standing employees whose positions are to be eliminated the option of taking other positions within the org....

CONTINUE READING

Business Process Outsourcing

It is a method of subcontracting various business-related operations to third-party vendors ....

CONTINUE READING

−C−

Career Break

A career break is an agreed period of time off from employment, either for family reasons or for personal reasons ....

CONTINUE READING

Career Path

Career Path basically means the various positions an employee moves on one by one as he grows in an organization ....

CONTINUE READING

Change management

It is a structured approach to transitioning individuals or organisations from the current state to the desired state ....

CONTINUE READING

Churn Rate

It is most commonly expressed as the percentage of service subscribers who discontinue their subscriptions ....

CONTINUE READING

Coaching

Generally follows the format of individual guidance that is focused on job performance and aimed at one person ....

CONTINUE READING

Compensation And Benefits

It is a sub-discipline of human resources, focused on compensating employee and policy-making ....

CONTINUE READING

Compensatory Off

is an entitled leave that an employee can take on a working day as a compensation for working on a holiday or weekend ....

CONTINUE READING

Competency

It is a set of demonstrable characteristics and skills that enable, and improve the efficiency of, performance of a job ....

CONTINUE READING

Competency-based Pay

Competency based pay is a compensation system that recognises employees for the depth, breadth, and types of skills ....

CONTINUE READING

Confidentiality agreement

This is an agreement between an employer and employee in which the employee may not disclose patented information ....

CONTINUE READING

Confirmation Letter

It is an official letter handed over to the employee confirming his employment at the organisation ....

CONTINUE READING

CTC

It indicates the total amount of expenses an employer (organization) spends on an employee during one year ....

CONTINUE READING

Cost-Per-Hire

The costs linked to hiring talent. These costs can include advertising, agency fees, relocation costs, and training costs ....

CONTINUE READING

Cross-functional team

It is a group in an organization that is made up of members from different departments or different specializations ....

CONTINUE READING

−D−

Deferred compensation

It is a compensation plan that allows employees to defer compensation earned in one tax year to a future tax year ....

CONTINUE READING

Delayering

It is the process of removing layers of hierarchy between the highest and lowest levels in an organisation ....

CONTINUE READING

Disciplinary Procedure

A procedure carried out in the workplace in the event of an employee committing some act contrary to the agreement ....

CONTINUE READING

Downshifting

It refers to social behaviors whereby individuals reduce the responsibility and complexity in their lives ....

CONTINUE READING

−E−

E-Recruitment

Web-based software that handles the various processes included in recruiting and on-boarding  job candidates ....

CONTINUE READING

Employee Assessments

Employee assessments are performance appraisals or reviews used to evaluate employees' performance ....

CONTINUE READING

Employee benefits administration

It means determining and managing the benefits offered to the employees at a company ....

CONTINUE READING

Employee Clearance

Also known as full and final settlement that happens when an employee resigns, is expelled or retires from the job ....

CONTINUE READING

Employee Database

Think of it as a digital filing cabinet to store employee data including name, job position, salary, hire date ....

CONTINUE READING

Employee Empowerment

It is a management philosophy that emphasizes the importance of allowing employee to make independent decision ....

CONTINUE READING

Employee Engagement

It is a workplace method designed to improve an employee’s feelings and emotional attachment ....

CONTINUE READING

Employee Lifecycle

Every employee goes through a series of stages from the day they apply for a job right through to the day they leave ....

CONTINUE READING

Employee Onboarding

Is the process of onboarding new hires into an organization. Sometimes used synonymously with new hire orientation ....

CONTINUE READING

Employee Orientation

Is the process of introducing new hires to their jobs, co-workers, responsibilities, and workplace ....

CONTINUE READING

Employee Relations

Refers to an organization’s efforts to create and maintain a positive relationship with their employees ....

CONTINUE READING

Employee Retention

A function of the HR department tasked with reducing the number of employees leaving the company ....

CONTINUE READING

Employee Satisfaction

Is the extent to which an individual is happy with their job and the role it plays in their life ....

CONTINUE READING

Employee Self Service

It is a feature available in HR software that allows workers to perform tasks normally conducted by the HR function ....

CONTINUE READING

Employee Turnover

Employee turnover is the measurement of the number of employees who leave an organization during a year ....

CONTINUE READING

Employer Branding

A strategy designed to make an organization appealing as a good place to work ....

CONTINUE READING

Employer Value Proposition

A unique set of offerings, associations and values to positively influence target candidates and employees ....

CONTINUE READING

Enterprise Resource Planning (ERP)

It is a powerful HR software that allows leaders to manage, manipulate and analyse key business information ....

CONTINUE READING

Equity Theory

Based on the notion that people are motivated by a desire for fairness, that is, to be treated fairly and will ....

CONTINUE READING

Exit interview

It is an activity that allows a departing employee and their organization to exchange information ....

CONTINUE READING

Expatriate

An employee who is transferred to work abroad on a long-term job assignment. Expats usually earn more ....

CONTINUE READING

−F−

Factor Comparison

A systematic and scientific comparison, that instead of ranking complete jobs, ranks according to a series of factors ....

CONTINUE READING

Five Factor Model

It is a theory based upon the Big Five personality traits, identified as openness to new experiences ....

CONTINUE READING

Floating Holidays

Are paid holidays you give to your employees, but they aren’t tied to specific dates like federal holidays are ....

CONTINUE READING

Forced Ranking

This is a system of work performance evaluation in which employees are compared against each other ....

CONTINUE READING

Functional Job Analysis

Functional job analysis is a method of gathering specific and detailed job information ....

CONTINUE READING

−G−

Gamification

Gamification refers to a process of making systems, processes or other employment-related activities more enjoyable ....

CONTINUE READING

Gender Divide

Differences between women and men in society, used in a range of fields including sociology, politics and economics ....

CONTINUE READING

Generation X

A demographic cohort born after the post-war baby boomers, tend to use birth dates from the early 1960s to the early 1980s ....

CONTINUE READING

Generation Z

A demographic cohort containing individuals born between the early 2000s and the present day ....

CONTINUE READING

GIG Economy

A gig economy is an economy where organisations rely more on freelancers and independent contractors instead of ....

CONTINUE READING

Golden handcuffs

These are contractual clauses that provide financial and non-financial benefits to executives that are forfeited ....

CONTINUE READING

Gratuity

Is given by the employer to his/her employee for the services rendered by him during the period of employment ....

CONTINUE READING

Grievance

A grievance is a complaint brought forward by an employee about an alleged violation of law or dissatisfaction with work ....

CONTINUE READING

Gross misconduct

Gross misconduct is an action so serious that it calls for the immediate dismissal of an employee ....

CONTINUE READING

Gross Salary

Gross salary can be defined as the amount of money paid to an employee before taxes and deductions are discounted ....

CONTINUE READING

−H−

Hawthorne effect

the concept is that employee motivation can be influenced by how aware they are of being observed ....

CONTINUE READING

Hierarchy of Needs

A theory proposed by American psychologist Abraham Maslow that categorises human desires ....

CONTINUE READING

HR Audit

A periodic measurement of human resources effectiveness, conducted by internal staff or ....

CONTINUE READING

HR Business Partner

They are HR professionals who work closely with an organisation’s senior leaders in order to develop an HR strategy ....

CONTINUE READING

HR Consulting

Specialist advice and services provided by a third-party to help businesses maximize the efficiency of their HR operations ....

CONTINUE READING

HR Software

It is a software packages designed to automate many of the common HR tasks and free up resources ....

CONTINUE READING

Human Capital Management

The challenge of recruiting and retaining qualified candidates, and helping new employees fit into an organization ....

CONTINUE READING

Human Resource Information System

It is a software that is used for carrying out HR processes such as data tracking, self-service for employees, analyzing data ....

CONTINUE READING

Human Resource Management

The management of an organisation’s workforce with overall responsibility for every aspect of human capital including ....

CONTINUE READING

Human Resource Management System

HRMS refers to a suite of software that organizations use to manage internal HR functions ....

CONTINUE READING

Human Resource Outsourcing

A contractual agreement between an employer and an external third-party provider whereby the employer ....

CONTINUE READING

−I−

Incentive Pay

refers to giving employees bonuses or other forms of compensation in exchange for going beyond their normal duties ....

CONTINUE READING

Induction

Induction is the process of introducing a new employee to the company culture and processes with the aim of bringing ....

CONTINUE READING

Informal Communication

Informal communication in the workplace is communication that takes place outside the formal, communication structures ....

CONTINUE READING

Internship

Are training programs aimed at younger workers, from school-age students to post-graduates ....

CONTINUE READING

−J−

Job Analysis

A process aimed at codifying the nature of a job role to help organisations understand the types of people they need ....

CONTINUE READING

Job Board

An online location that provides an up-to-date listing of current job vacancies in various industries ....

CONTINUE READING

Job Classification

A process that aims to classify a job in a standardized scale by its responsibilities, duties and the competencies required ....

CONTINUE READING

Job Description

A written statement that explains the responsibilities and qualifications of a given job, based on a job analysis ....

CONTINUE READING

Job Evaluation

A systematic, formal process that allows organisations to compare jobs to others across the company and the industry ....

CONTINUE READING

Job Rotation

It is movement of employees in different job roles which enriches their skills, ability to work on different roles and experience ....

CONTINUE READING

Johari Window

The Johari Window model is a disclosure / feedback model of self awareness, an information processing tool ....

CONTINUE READING

−K−

Key Performance Indicators

A Key Performance Indicator is a measurable value that demonstrates how effectively a company is ....

CONTINUE READING

Key Result Areas

Refers to general areas of outcomes or outputs for which a role, or a combination of roles, is responsible ....

CONTINUE READING

Knowledge Management

Knowledge management is the conscious process of defining, structuring, retaining and sharing the knowledge ....

CONTINUE READING

KSAs

Refers to knowledge, skills and abilities, often used in the context of the KSAs candidates need to perform a job role ....

CONTINUE READING

−L−

Labor Union

Labor unions, often called worker unions or trade unions, are groups of employees who have joined forces to achieve common goals ....

CONTINUE READING

Lateral Recruitment

We can define the lateral recruitment process phase as the process of hiring a "skilled and professional candidate" for ....

CONTINUE READING

Layoff

A layoff is the suspension or permanent termination of employment of workers by their employer ....

CONTINUE READING

Leadership Development

Leadership development refers to activities that improve the skills, abilities and confidence of leaders ....

CONTINUE READING

Learning and Development

Learning and development, a subset of HR, aims to improve group and individual performance by increasing ....

CONTINUE READING

Learning Management System

A software platform for businesses and organizations designed to train and educate employees ....

CONTINUE READING

−M−

Management by Objective

management by objectives is a results-driven process that aims to define objectives within an organisation ....

CONTINUE READING

Management Styles

Management styles are the principles that underlie the methods, abilities and techniques managers use in ....

CONTINUE READING

Management Training

It is a training activity that focuses on improving an individual’s skills as a leader and manager ....

CONTINUE READING

Matrix Organization

Businesses in which employees work in both traditional siloed departments as well as in cross-departmental teams ....

CONTINUE READING

Mean wage

The mean wage is the average wage that employees receive for the same work performed during a given period of time ....

CONTINUE READING

Mentoring

Mentoring is a system of semi-structured guidance whereby one person shares their knowledge, skills and experience ....

CONTINUE READING

Merit Pay

Merit pay is a system,where one is paid on the basis of the achievement of targets by an individual ....

CONTINUE READING

Micromanagement

Micromanagement is a negative term that refers to a management style characterised by ....

CONTINUE READING

Millennials

also known as Generation Y or the Net Generation, are the demographic cohort that directly follows Generation X ....

CONTINUE READING

−N−

Nepotism

Favouritism to relatives due to the blood relationship rather than making decisions based on standard metrics such as ....

CONTINUE READING

Net Salary

It is also known as take-home salary, is the amount of money that you will receive after all deductions ....

CONTINUE READING

Nondisclosure Agreement

A contract restricting an employee from disclosing confidential or proprietary information ....

CONTINUE READING

−O−

Occupational Stress

The physiological and physical effects of negative activity in the workplace as a result of many factors including ....

CONTINUE READING

Offer Letter

It is used to formally offer a position to a candidate, and provide important information including start date ....

CONTINUE READING

Offshoring

It is the process of relocating a business or business process to another country in order to benefit from reduced labour ....

CONTINUE READING

Onboarding

Also known as organisational socialisation, onboarding is the process by which new hires are emotionally, physically and ....

CONTINUE READING

Organizational Change

Organisational change refers to the alteration of structural relationships and roles of people in the organization ....

CONTINUE READING

Organizational Culture

The values, attitudes, beliefs and behaviors that characterize an organization. It is the unwritten workplace ethos that ....

CONTINUE READING

Organizational Development

Processes and activities that aim to make improvements at the organisational level. Organisational Development is an ....

CONTINUE READING

Orientation

Orientation is the process of bringing employees up to speed on organisational policies, job roles and responsibilities ....

CONTINUE READING

Outsourcing

Outsourcing is the business practice of hiring a party outside a company to perform services and create goods ....

CONTINUE READING

−P−

Payroll

Documentation created and maintained by the employer containing such information as hours worked, salaries ....

CONTINUE READING

Payroll Software

Payroll software is an application that manages, organizes and automates employee payment ....

CONTINUE READING

Performance Appraisal

is a regular review of an employee's job performance and overall contribution to a company ....

CONTINUE READING

Performance Improvement

Performance improvement is a strategy under the umbrella of performance management to help employees ....

CONTINUE READING

Performance Improvement Plan

It is also known as a performance action plan, is a tool to give an employee with performance deficiencies ....

CONTINUE READING

Performance Management

It is a process of linked activities that aim to ensure goals are being met in the most efficient and productive way possible ....

CONTINUE READING

Performance Management Cycle

This performance management cycle is a cyclical phenomenon in which employees are evaluated throughout the year ....

CONTINUE READING

Performance Planning

It is a sub-area of performance management and is concerned with providing a clear, structured ....

CONTINUE READING

Probationary Arrangements

Is terms set between an employer and a new hire. When an employer hires a new person to the company, it would ....

CONTINUE READING

Probationary Period

Probationary periods are defined periods of time that employees are exempt from certain contractual items ....

CONTINUE READING

Psychometric Test

are designed by psychologists to test a person's mental state, personality and thought processes ....

CONTINUE READING

−Q−

Quality management

A system to make sure that a product or service meets standards of excellence, and that the process by which ....

CONTINUE READING

Queen Bee Syndrome

It is defined as a situation where high ranking women in positions of authority treat the women who work ....

CONTINUE READING

−R−

Recruitment

It refers to the process of identifying, attracting, interviewing, selecting, hiring and on-boarding employees ....

CONTINUE READING

Recruitment Software

It is software tools used by recruiters, talent acquisition professionals, and hiring managers to streamline ....

CONTINUE READING

Redundancy

Termination of employees for business reasons, such as poor economic conditions. Redundancy can be force or voluntary ....

CONTINUE READING

Relieving Letter

is a formal letter that is issued to an employee at the time of leaving an organization ....

CONTINUE READING

Remuneration

This is the pay or other financial compensation and benefits provided in exchange for an employee's ....

CONTINUE READING

Restricted Holidays

Restricted holiday means a holiday that is optional, and it is the discretion of the employee whether ....

CONTINUE READING

Retention strategy

Retention strategies are policies and plans that organisations follow to reduce employee turnover and ....

CONTINUE READING

Reverse Mentoring

An initiative in the workplace where older employees are mentored by younger employees ....

CONTINUE READING

Rewards and Recognition

This is a system where people are acknowledged for their performance in intrinsic or extrinsic ways ....

CONTINUE READING

Right to Manage

A ‘right to manage’ is a discretion of managers or leaders to govern a company in the way they see fit ....

CONTINUE READING

Risk Management

Risk management is a process whereby organisations identify and analyse potential business risk and ....

CONTINUE READING

Roster Management

This refers to schedule management. Schedule is also known as rota or roster. Managing a roster typically includes ....

CONTINUE READING

Rotational Training

Rotational training aims to diversify an individual’s understanding, knowledge and skills by rotating them between ....

CONTINUE READING

−S−

Sensitivity Training

A type of emotional training designed to help people become more aware of their intrinsic judgement and prejudices ....

CONTINUE READING

Situational Leadership

A management theory stating that effective leadership varies, but is task-relevant, and the most successful ....

CONTINUE READING

Skill Gap

This is the difference in the skills required on the job and the actual skills possessed by an employee ....

CONTINUE READING

Social Collaboration

Social collaboration is the joined-up efforts of multiple stakeholders in pursuit of a common goal ....

CONTINUE READING

Social HR

The use of online social media platforms to fulfill HR functions, most notably recruitment, but also including ....

CONTINUE READING

Social Networking

The building of online communities of people who have common interests. LinkedIn, Facebook and MySpace ....

CONTINUE READING

Social Recruitment

This is concerned with sourcing candidates for jobs via social media channels and social media networks ....

CONTINUE READING

Software as a service (SaaS)

Software as a service (SaaS) is a software distribution model in which a third-party provider hosts applications ....

CONTINUE READING

Staffing

Staffing is an umbrella term that describes the recruitment, on-boarding, training and positioning of workers within ....

CONTINUE READING

Strategic HRM

It refers to aligning human resource management (HRM) with the strategic goals of an organisation ....

CONTINUE READING

Strategic Planning

A coherent planning strategy whereby businesses define their values, objectives and needs and then allocate ....

CONTINUE READING

Succession planning

This refers to procedures and processes designed to develop internal talent for the purpose of filling leadership ....

CONTINUE READING

Summary Dismissal

Summary dismissal is the immediate termination of an employment contract due to an employee’s behavior ....

CONTINUE READING

Suspension

This is when an employee is sent home from work, usually while receiving full pay. Employers are entitled to suspend ....

CONTINUE READING 

System Changeover

System changeover is concerned with the smooth shift from one way of doing things to another ....

CONTINUE READING

Systemic discrimination

This is also called institutionalized discrimination, refers to a method of discrimination which occurs ....

CONTINUE READING

−T−

Talent Acquisition

This refers to the process of identifying and acquiring skilled workers to meet your organisational needs ....

CONTINUE READING

Talent Management

Talent management is a unified strategy designed to help organisations make the best possible use of their human capital ....

CONTINUE READING

Talent Management Software

Talent management software refers to an integrated tool that focuses on different components of managing HRM....

CONTINUE READING

Tangible rewards

Material or monetary incentives, or incentives that can be easily translated into a cash value ....

CONTINUE READING

Tax

Are involuntary fees levied on individuals or corporations and enforced by a government entity ....

CONTINUE READING

Taxable Income

Is the amount of income used to calculate how much tax an individual or a company owes to the government ....

CONTINUE READING 

Team building

A philosophy of job design which fosters teamwork to create a work culture that values collaboration ....

CONTINUE READING

Total Compensation

Total Compensation is the complete pay package for employees, beyond just salary. This includes all forms of money & perks ....

CONTINUE READING 

Total Quality Management

Total quality management is a method and set of beliefs aimed at continuous improvement of product ....

CONTINUE READING

Total Remuneration

Refers to a total sum of an employee’s annual compensation package, including both basic pay aka salary ....

CONTINUE READING

Training and Development

Training and development describes the formal, ongoing efforts that are made within organizations to improve ....

CONTINUE READING

Training Needs Analysis

Is concerned with addressing skills gaps at the organisational level, group level and the individual level ....

CONTINUE READING

Transformational Leadership

Transitional leadership is a style of leadership focused on energy, vision and transformation ....

CONTINUE READING

Turnover

Is the percentage of employees in a workforce that leave during a certain period of time ....

CONTINUE READING

−U−

Unconscious Bias

Are social stereotypes about certain groups of people that individuals form outside their own conscious awareness ....

CONTINUE READING

−V−

Variable Pay

Is the portion of sales compensation determined by employee performance. It is provided as a type of bonus....

CONTINUE READING

Virtual HR

Refers to a range of options that connect employees directly with HR systems, allowing them to input data directly ....

CONTINUE READING

Voluntary Benefits

Voluntary benefits are employee benefits paid for by the employee rather than the employer ....

CONTINUE READING

−W−

Wage Drift

The difference between an individual’s basic pay and their total compensation, the latter of which includes financial benefit ....

CONTINUE READING

Wellness Programs

Programs offered by an employer that are designed to promote health or prevent disease ....

CONTINUE READING

Work-life Balance

Refers to the level of prioritization between personal and professional activities in an individual life ....

CONTINUE READING

Workforce Management

Is a term that encompasses all of the processes that a contact center undertakes in order to have the right number of staff ....

CONTINUE READING

Workforce Planning

The assessment of the current workforce in order to predict future needs. This can consist of both demand planning ....

CONTINUE READING

Workplace Bullying

In general it is unreasonable or aggressive behavior aimed at a specific group or individual ....

CONTINUE READING

Wrongful Termination

Is a situation in which an employee's contract of employment has been terminated by the employer ....

CONTINUE READING