1. HR Glossary
2. HR Terms

HR Terms Every HR Professional Should Know

Human Resources (HR) is a key department in any organization. It includes various processes and practices to manage staff effectively. HR professionals often use technical terms that can be confusing for others.

This blog explains what HR is in terms of different HR terms. It covers recruitment, compensation, employee engagement, performance management, HR technology, compliance, and legal aspects. By understanding these terms, HR professionals and employees can navigate the workplace more quickly.

What is Human Resources Term?

Human resources (HR) is a critical department within organizations, dedicated to effectively managing the workforce, which is often considered the most valuable asset of an organization. The scope of HR encompasses a wide variety of functions and responsibilities. Familiarity with common HR terms and concepts is essential for HR professionals to build a strong foundation of knowledge in this ever-evolving field. As the responsibilities of HR practitioners continue to expand, staying updated with HR terminology becomes increasingly important. Additionally, leveraging HR software can significantly aid in managing various HR-related tasks efficiently. Below are some key tasks associated with HR terminology.

• Employee staffing and recruitment,
• Onboarding and orientation,
• Staff development and training,
• Staff performance appraisal,
• Staff relation issues,
• Regulatory compliance issues and
• Employee benefits.

More specifically, HR's role is to ensure that an organization's staff is well-equipped, satisfied, and compliant with legal requirements.

Importance of Human Resources to an Organization

HR is key in positioning the workforce to help meet the organization's strategic goals. It plays an important role in any multifaceted organization. This leads to higher employee satisfaction, increased productivity, and reduced turnover. Some of these factors in HR terms are mentioned briefly below. Additionally, it ensures the organization follows labor laws and minimizes legal risks.

Recruitment and Talent Management

It is important for finding, attracting, and retaining talented and skilled employees. An effective recruitment process selects candidates based on their skills and how they will fit into the organization.

Compliance and Risk Management

It plays an important role in complying with labour laws and regulations. It minimizes the risk of potential legal issues regarding employment practices, ultimately protecting the organization.

Creating a Positive Environment

One of the most important roles of an HR professional is creating a positive and conducive work environment for employees. This includes promoting diversity, equity, inclusion, employee engagement, and more.

Performance Management

Predetermined expectations for employees are set for performance management and evaluation. Regular evaluations and feedback help employees understand their performance and the scope of improvement.

Employee Relations

Maintaining healthy and friendly relations between management and employees is essential for the organization's growth. For this, there is a continuous conflict redressal forum wherein the employees can seek help and guidance.

Terms of HR

Let us discuss some of the basic HR terms in basics that define the field.

Recruitment Terms

Recruitment and selection are the primary processes in human resource management, as they serve as the initial touchpoints with an organization’s employees. Here are some critical HR terms related to recruitment.

Job Description

A job description is a document that outlines the responsibilities, educational requirements, and skills needed for a specific position.

Applicant Tracking System (ATS)

An Applicant Tracking System program helps HR personnel manage recruitment. It can efficiently handle job postings, initial resume reviews, and candidate updates.

Candidate Sourcing

Candidate sourcing is identifying individuals who are qualified for available job openings. This can be done by posting on job websites, social media platforms, or through referrals from current employees.

Onboarding

Onboarding is the process of introducing new employees to the workplace. It includes orientation and training, helping them understand the company's culture and values.

Talent Pool

The talent pool is a database of potential candidates identified as suitable for future job openings. Creating a talent pool helps organizations fill positions more quickly.

Compensation and Benefits Terms

Compensation and benefits are needed to attract or retain talent. Below are some of the crucial HR terms in this field.

Remuneration Structure

This framework states how remuneration is determined within an organization, defining job grades, pay ranges, and salary progression.

Bonus

Bonuses are additional financial incentives provided to employees based on their performance, company profitability, or achievement of specific goals.

Benefits Package

A benefits package refers to non-wage compensation provided to the employees, such as health insurance, retirement plans, paid time off, and other fringe benefits.

Payroll

Payroll encompasses all processes in compensating employees for their services, including salary calculation, tax withholding, and timely payments.

Incentives

Incentives are rewards that encourage specific behaviors or performance. They can take various forms, including monetary rewards, recognition programs, or additional benefits.

Employee Engagement and Retention Terms

Employee engagement and retention are essential for a workforce. The key HR termsin the area are as follows.

Employee Engagement

Employee engagement refers to employees' emotional commitment and connection to their organization. Engaged employees are typically more productive, motivated, and loyal to their company.

Retention Rate

Retention rate refers to the percentage of employees who remain with an organization over a specific period.

Exit Interviews

An exit interview is an interview with an employee leaving an organization. It is used to understand why employees leave and formulate ideas for improving retention.

Recognition of Employees

Employee recognition is the acknowledgment and reward employees receive for their efforts, personal achievements, or hard work.

Work-life Balance

Work-life balance is when employees balance their business/organizational responsibilities and personal lives.

Performance Management and Development Terms

Performance management and development focuses on employee skill enhancement and productivity performance. Some of the key HR terms include the following.

Performance Appraisal

Performance appraisal evaluates an employee's work performance by setting performance goals, providing assessments, and identifying areas for improvement.

KPIs

KPIs, or Key Performance Indicators, are measurable values that show how well an organization achieves its objectives. They help track individual and team performance against set goals.

Continuous Feedback

Continuous feedback is ongoing communication about performance and development, not limited to annual reviews.

Learning and Development (L&D)

Learning and Development programs are initiatives where a company invests in its employees to enhance their skills and knowledge.

Succession Planning

Succession planning is designed to recognize and develop the internal talent for the organization's key leadership roles. This assures continuity and effective leadership transitions.

HR Technology Terms

Technology has become a crucial factor in current HR practice. Some essential HR terms are mentioned below.

Human Resource Information System (HRIS)

The software handles employee data such as personal information, payroll, benefits, and performance records. It streamlines human resource processes and enhances access to data.

Cloud-based HR Solutions

Cloud-based HR software allows users to access and manage data from any location, enhancing flexibility and promoting team collaboration.

Employee Self-service Portal

An ESS portal allows employees to access and view their personal data, benefits, and payroll details online, reducing the workload.

Performance Management Software

PMS streamlines performance appraisals. It makes tracking goals, giving feedback, and analyzing performance easy.

Recruitment Automation Tools

These tools facilitate hiring by automating job posting, resume screening, and interview scheduling.

Compliance and Laws Term

Compliance with laws is essential as it helps mitigate risks and prevent regulatory violations. These are some of the HR compliance terms in this field worth mentioning.

Labor Laws

These laws outline the obligations of employers and employees. Adhering to labor laws helps prevent legal disputes and penalties.

Equal Employment Opportunity (EEO)

EEO laws prohibit discrimination in employment and hiring based on race, color, religion, sexual orientation, nationality, age, disability, or genetic information.

Occupational Safety and Health Administration

OSHA is an administrative agency that enforces standards for workplace safety and health. Its compliance protects the welfare of organizations' employees.

‘Non-disclosure Agreement’ (NDA)

An NDA is a contract that ensures that the organization's workers will not disclose information about the organization. It safeguards business information and other property belonging to the business firm.

Digital HR Terms

As the name suggests, these are some new HR terms related to the digital age. Some of the HR terms are mentioned below.

Digital HR

Digital HR is a type of process optimization that seeks to improve HR's effectiveness, efficiency, and connectivity. It is cloud-first, mobile-first, data-driven, and collaborative.

HR Automation

HR automation is digitalizing, automating, and streamlining time-consuming and repetitive HR processes.

HR Chatbot

An HR chatbot is an AI-driven virtual assistant that handles various HR functions, such as providing assistance, responding to routine inquiries, and carrying out simple tasks.

HR Tech Stack

An HR tech stack is a collection of strategically integrated software, platforms, and apps that improve and expand various HR functions.

HR Generalist Terms

These are some of the general employee-related terms. Let us see what are these terms.

Employee Life Cycle

The employee life cycle covers the entire employee journey at a company, from recruitment to offboarding and beyond.

Job Dissatisfaction

Job dissatisfaction is when workers are unhappy with their positions, frequently due to working circumstances, low compensation, or a lack of alignment with their professional objectives.

Employment Contract

The employment contract is a formal legal agreement that describes the terms of employment and the responsibilities of the employer and employee.

Employment Status

A worker's employment status defines their classification, such as full-time, part-time, or freelance, and establishes their rights and benefits at work.

Organizational Development Terms

Organizational Development is a field dedicated to improving an organization's performance by changing its systems and processes. Here are some key HR terms used in the same.

Boundaryless Organization

A boundaryless organization removes the barriers to invention. It is distinguished by fewer functional divisions and hierarchies, which leads to increased integration.

Customer-centric Culture

A customer-centric culture is an organization's culture that prioritizes providing exceptional customer service.

Emerging Work Models

Emerging work models are (futuristic) work models that provide a number of creative ways to integrate contemporary technology and change the way and location of work.

Intergroup Development

Intergroup development initiatives and tactics improve cooperation, communication, and understanding among various organizational groups.

Organizational Restructuring

A network organization is a decentralized organizational structure in which independent business units aim to optimize the network's overall value while being accountable for their individual profits and losses.

Talent Management Terms

It involves a series of processes to optimize human capital to achieve organizational goals. Some of these HR terms are mentioned below.

360-degree Feedback

360 review or multi-rater feedback is a form of performance evaluation that gathers opinions and ratings from peers, managers, and direct reports.

Competency Mapping

Competency mapping determines and characterizes the abilities, knowledge, and personal qualities required to perform a specific function successfully.

Graphic Rating Scale

A graphic rating scale is a performance evaluation technique that uses a scale to rank employees according to the required behaviors and characteristics for a particular function.

Performance Improvement Plan

A performance improvement plan (PIP) describes how a worker cannot meet job requirements. It provides a timeframe for them to follow and specific actions they should take to enhance their performance.

Talent Mapping

Talent mapping is the process where organizations can learn about their current talent and abilities and any gaps that may need to be filled in the (near) future.

Conclusion

Understanding essential human resource or HR terms and being informed of what needs to be addressed by any employee or professional handling human resources duties is crucial. Familiarity with such terms enhances communication, improves collaborative work, and streamlines most human resource processes. By understanding key HR terms, organizations can effectively manage their workforce, improve employee satisfaction, and achieve their strategic goals, ultimately contributing to their success and growth.

factoHR's comprehensive and cutting-edge HR solutions are all you need to manage your responsibilities efficiently. These solutions help streamline and improve procedures with features like performance management tools, employee self-service portals, and recruiting automation, freeing up firms to focus on their main objectives.

Frequently Asked Questions (FAQs)

How does HR Outsourcing Work?

HR outsourcing involves hiring external professionals or agencies to manage HR functions, which can be more cost-effective for smaller businesses. This arrangement allows companies to focus on core activities while ensuring compliance with employment laws. Services can range from payroll management to recruitment support.

What is 360-degree Feedback?

360-degree feedback is a performance appraisal method that gathers feedback from multiple sources, including supervisors, peers, subordinates, and self.

What is Labor Relations?

Labor relations involves managing the relationship between employers and employees, often through labor unions.

What is the Purpose of a Performance Improvement Plan (PIP)?

A PIP is used to address performance deficiencies and allow employees to improve.

What is Talent Acquisition?

Talent acquisition is the process of attracting, screening, and hiring qualified candidates.

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