Human Resources is a broad industry that covers more than just hiring new employees. The numerous processes and facets of the industry can be overwhelming for people coming into it for the first time. This glossary will help you understand the most important terms and concepts in the industry.
If you plan to connect with HR professionals or become more proficient with HR software. This glossary will provide an overview of the various processes, laws, metrics, and calculations most commonly used in building and managing a high-quality workforce.
Need help building your perfect team? Find the top HR firms on Clutch today.
43 HR Terms to Know
Learn the ins and outs of human resources quickly. There’s always something to learn about this industry.
A
- Absenteeism: a performance indicator where an employee consistently doesn't appear for work at their scheduled time.
- Action Plan: a resource used to identify areas of poor performance, establish expected standards, and assist employees in becoming successful.
- Affirmative Action: a policy ensuring equal opportunities for groups of people and minorities who suffer from discrimination in the workplace.
- Americans with Disabilities Act (ADA): a civil rights law that prohibits discrimination against individuals with disabilities in all areas of public life including the workplace.
- Applicant Tracking System: software used by recruiters and employers to track candidates throughout the recruitment process.
- Automate: a method of using software to streamline repetitive and laborious tasks within the HR department.
B
- Benchmarking: a method that uses data to compare similar organizations, roles, and processes.
- Benefits Administration: a process of creating, managing, and updating an organization's employee benefits program.
C
- Career Path: a term describing either future job prospects or a cumulative list of past professional experience.
- Change Management: a process of facilitating adjustments initiated by other leaders and departments.
- Competencies: observable and measurable knowledge, skills, abilities, and personal attributes.
- Cost-per-Hire: a metric measuring the costs associated with the hiring process.
E
- Employee Assistance Program: a work-based intervention program designed to assist employees in resolving personal problems adversely affecting their performance.
- Employee Benefits: any form of compensation other than wages that employees receive from their employer.
- Employee Engagement: a method or metric that evaluates or improves an employee's feelings and emotional attachment to the company or their work.
- Employee Satisfaction: a term used to broadly describe an employee’s thoughts and feelings on their work or status in the organization.
- Employer Branding: an organization’s projected identity to both potential and current employees.
- Equal Employment Opportunity (EEO): a set of regulations set in place to minimize instances of discrimination in an organization’s hiring practices.
- Exit Interview: a discussion between an employer and employee usually had on the last day of the latter’s tenure.
F
- Fair Labor Standards Act (FLSA): a law establishing the minimum wage, overtime pay, record-keeping, and youth employment standards.
- Full-Time Equivalent (FTE): a formula that calculates an employee's scheduled hours divided by the employer's hours for a full-time workweek.
H
- Human Resource Information System (HRIS): a system used to collect and store data on an organization's employees, ie. name, address, age, salary, and benefits.
- Human Resource Management System (HRMS): a collection of software applications used to store employee information and support various HR functions, such as benefits, payroll, recruiting, and training.
Additional Reading, 'What are Temp Agencies (And How Do They Work?)'
J
- Job Description: a tool or message outlining the tasks, duties, functions, and responsibilities of a position.
- Job Title: the name of the position an employee holds within the organization.
K
- Key Performance Indicator (KPI): a set of quantifiable measurements used to gauge an employee's overall performance.
L
- Labor Law: a collection of laws that mediate the relationship between workers, employing entities, trade unions, and the government.
O
- Onboarding: a process where new hires are integrated into the organization.
P
- Paid Time Off (PTO): a policy that provides employees with a pool of bankable hours that can be used for any purpose away from the organization.
- Performance Appraisal: a process of measuring an employee's work against the established requirements of the position.
- Performance Management: a process of communicating and clarifying responsibilities, priorities, expectations, and development planning for an employee.
R
- Recruitment Process: the overall system of finding and hiring qualified candidates for a position. This may include sourcing, onboarding, and retention.
- Referral: a hiring strategy encouraging current employees to find qualified candidates for job openings within the organization.
- Remuneration: payment received for services or employment.
- Retention: an organization’s ability to keep productive employees and avoid turnover.
Additional Reading, 'How to Create a Recruitment Budget [With Template].'
S
- Self-service: a process where employees can access HR-related information and software through an intranet or web portal.
- Sick Leave: a necessary absence from work because of personal or family illness, including pregnancy, recovery, injury, and medical appointments.
- Sourcing: a process of identifying, contacting, and engaging qualified candidates for a job opening.
- Staffing: a continuous process of finding, selecting, evaluating, and developing a working relationship with current or future employees.
- Strategic Planning: an analysis conducted to identify issues, and determine and prioritize actions in the workplace.
- Succession Planning: identifying the critical positions within the organization and developing action plans for qualified candidates to assume those roles.
W
- Wellness Program: a program intended to improve and promote health and fitness within the workplace.
- Work Environment: the setting, social features, and physical conditions wherein an employee performs their job.
Understand the Key HR Terms to Help Your Business
The HR industry can look overwhelming to newcomers, especially since it blends both the technical and human elements of work. But anyone can keep pace with even the fastest developments in the field, so long as they’re always willing to learn.
Looking for a team to help you kick off a recruitment process? Find the best HR agencies on Clutch.
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