HR Glossary | 140+ Terms Every HR Professional Must Know

Understanding HR terms can feel overwhelming. An HR glossary simplifies complex jargon and makes it accessible. This guide breaks down essential terms that every professional should know, from recruitment lingo to employee benefits. It contrasts the confusion of unfamiliar terms with the clarity gained from a solid glossary.

Whether you're a seasoned HR pro or just starting out, this HR glossary is your key to better communication and decision-making. Dive into this glossary to enhance your knowledge and navigate the HR landscape with ease.

Understanding HR Terminology

Importance of HR Jargon

A professional environment thrives on clear communication. HR jargon clarifies communication in the workplace. Specific terms help everyone understand policies and processes better. For example, using terms like "onboarding" or "performance review" makes discussions clearer. Employees can engage more effectively when they know the language.

Recognizing and applying HR concepts is essential. This recognition creates a culture of understanding and respect. It also empowers employees to contribute meaningfully to discussions.

Evolution of Workplace Language

Workplace language has evolved significantly over time:

• Historical shifts shape current HR practices today. The industrial revolution, for instance, introduced formal job titles and roles. These changes laid the groundwork for modern HR terminology.
• Technology greatly impacts HR vocabulary. The rise of digital communication created new terms like "telecommuting" and "remote work." These words reflect how workplaces adapt to new tools and methods. Social changes also influence language in the workplace. Terms like "work-life balance" emerged as people sought healthier lifestyles but have become part of the HR glossary today.
• Globalization further enriches HR terminology. Diverse cultures bring unique perspectives and phrases into the workplace. Companies now adopt terms from various languages to create inclusive environments. This diversity fosters collaboration and understanding among international teams.

Now, let’s take a look at the A-Z of HR glossary.

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360-degree feedback

360-degree feedback is a comprehensive performance evaluation method that involves gathering feedback from an individual's supervisors, peers, subordinates, and even customers or clients. This feedback provides a well-rounded view of an individual's strengths, weaknesses, and overall performance from multiple perspectives. This type of feedback is often used in professional development and leadership training programs to promote self-awareness and enhance personal growth.

A

Absenteeism

Absenteeism is defined as the habitual or intentional absence from work without a valid reason. Absentees are employees who frequently miss work, leading to disruptions in productivity.

Also Read: Effective strategies to reduce absenteeism

Acquihire

Acquihire is a business strategy where a company acquires another company primarily for the talent and skills of its employees rather than its products or services.

Affirmative Action

Affirmative action refers to policies and programs designed to increase the representation of minorities and women in areas such as employment, education, and business.

Agile HR

Agile HR is an approach to human resources management that emphasizes flexibility, adaptability, and responsiveness to change in order to meet the evolving needs of the organization.

Applicant Tracking System

An Applicant Tracking System (ATS) is a software application that helps companies manage and streamline their recruitment process by tracking job applicants, managing resumes, and facilitating communication with candidates.

Appointment Letter

An appointment letter is a formal document issued by an employer to a candidate who has been selected for a job, outlining the terms and conditions of employment, including job title, salary, benefits, start date, and other relevant information.

Note: This can also be referred to as an Offer Letter.

Appraisal

An appraisal is a formal evaluation or assessment of an employee's performance within a company. This process typically involves setting goals, providing feedback, and discussing areas for improvement. Appraisals are often conducted annually or semi-annually to track progress and determine compensation or promotion opportunities for the employee.

Note: This can also referred to as Performance Appraisal.

Appraisal Letter

An appraisal letter is a formal document provided by an employer to an employee outlining the results of the employee's performance review. It typically includes feedback on job performance, recognition of achievements, and areas for improvement. It may also mention changes in compensation, promotions, or bonuses based on the evaluation. The letter serves as an official record of the appraisal process.

Assessment

Assessments in the work setting can take various forms, including performance reviews, skill assessments, competency evaluations, and goal-setting exercises. The goal of assessment in the work setting is to ensure that employees are meeting expectations, progressing in their roles, and contributing effectively to the overall success of the organization.

Attrition

The gradual reduction or decrease in the number of employees in an organization over time. Attrition can be voluntary (employees leaving on their own accord) or involuntary (employees being laid off or terminated).

B

Background Check

A background check is a process of investigating an individual's criminal, financial, and employment history to verify their credibility and suitability for a job or other purposes.

Basic Salary

Basic salary refers to the fixed amount of money an employee receives for their work before any additional bonuses or benefits are added. It is typically stated as an annual or monthly figure.

Behavioral Assessments

Behavioral assessments are tools used to evaluate an individual's behavior, personality traits, and emotional intelligence. These assessments can provide valuable insights into how a person interacts with others, handles stress, and approaches tasks. By analyzing behavioral patterns, organizations can make informed decisions about hiring, training, and employee development. These assessments can help identify strengths and areas for improvement, ultimately leading to more effective teams and increased productivity.

A behavioral interview is a form of behavioral assessment. It’s a type of job interview that focuses on past behavior and experiences to predict future performance.

Behavioral Competency

Behavioral competency refers to the specific skills, traits, and behaviors that an individual demonstrates in the workplace, such as communication, problem-solving, teamwork, and adaptability. Employers often assess behavioral competencies during the hiring process to determine a candidate's fit for a particular role.

Benefits Administration

Benefits administration involves managing and overseeing employee benefits programs, such as health insurance, retirement plans, and paid time off.

Bonus

A bonus is an extra reward or benefit given in addition to what is expected. It is often provided as an incentive for good performance or a way to show appreciation.

Buddy System

The buddy system is a method of pairing individuals together to provide support, assistance, and companionship. It is commonly used in workplaces for new joiners to promote teamwork and collaboration.

Burnout

Burnout is a state of emotional, physical, and mental exhaustion caused by prolonged stress or overwork. It can lead to feelings of apathy, detachment, and a lack of motivation. Burnout can impact all aspects of a person's life and may require professional intervention to address.

Also Read: Prioritizing Employee Mental Health - A Guide For HR Professionals

Business Continuity Planning

Business Continuity Planning is the process of creating a system of prevention and recovery from potential threats to a company. This includes developing strategies to ensure essential business functions can continue during and after a disaster or crisis. The goal is to minimize downtime, protect assets, and maintain operations in the face of disruptions.

C

Campus Hiring

Campus hiring refers to the practice of companies recruiting students directly from college campuses for full-time positions or internships. It’s a strategic approach for organizations to attract top talent and build a pipeline of skilled employees for the future.

Looking to hire from campuses? Invest in a campus hiring platform and improve your chances of finding the right talent.

Change Management

Change Management is the process of managing changes within an organization in order to effectively transition from the current state to a desired future state. This involves planning, implementing, and monitoring changes to ensure they are successful and have a positive impact on the organization.

Understand the role of HR in change management.

Coaching

Coaching is a development technique where a coach works with an individual or team to help them improve their skills, performance, and achieve their goals. This involves providing feedback, guidance, and support to help the individual or team reach their full potential.

Find how coaching differs from mentoring.

Comp-Off (Compensatory Time Off)

Comp-Off, short for Compensatory Time Off, refers to time off given to employees in lieu of overtime pay. This allows employees to take time off work as compensation for working extra hours beyond their regular work schedule.

Compensation

Compensation (or Compensation & Benefits) refers to the total rewards package that employees receive from their employer in exchange for their work. This includes salary, bonuses, benefits, and other forms of compensation that make up the total value of the employee's compensation package.

Competency Assessment

This term refers to the process of evaluating an individual's skills, knowledge, and abilities to perform a specific job or task. Competency assessments are often used in recruitment and performance management to ensure that employees have the necessary skills to excel in their roles.

Continuous Learning

Continuous learning is the ongoing process of acquiring new knowledge and skills to stay relevant and competitive in the workplace. It involves actively seeking out learning opportunities, such as training programs, workshops, and online courses, to enhance professional development.

Cost Per Hire

Cost per hire is a metric used to calculate the total cost incurred by an organization to fill a job vacancy. This includes expenses related to recruitment advertising, agency fees, employee referrals, and other recruitment costs. By tracking cost per hire, companies can evaluate the efficiency and effectiveness of their recruitment processes.

Cost-to-Company (CTC)

Cost-to-Company (CTC) is the total amount of money spent by an employer on an employee in a given year. This includes the employee's salary, bonuses, benefits, and any other perks or allowances provided by the company. The CTC is an important factor for both employers and employees to consider when negotiating compensation packages.

Cultural Fit

Cultural fit refers to how well an individual's values, beliefs, and behaviors align with those of a particular organization or team. It involves assessing whether a person will be able to adapt to and thrive within the existing culture of the workplace, as well as contribute positively to the overall dynamic. Cultural fit is important for promoting a harmonious work environment, enhancing collaboration, and fostering a sense of belonging among team members. It can also impact job satisfaction, employee retention, and organizational success.

D

Deferred Compensation

Deferred compensation refers to a portion of an employee's earnings that are withheld and paid out at a later date, typically after retirement or upon meeting certain conditions.

Disciplinary Action

Disciplinary action involves the process of addressing and correcting employee behavior or performance issues through warnings, reprimands, or other consequences as outlined in company policies.

Diversity

Diversity refers to the range of differences among individuals in a workplace, including but not limited to race, gender, age, ethnicity, sexual orientation, and cultural background. Embracing diversity can lead to a more inclusive and innovative work environment.

Diversity Hiring

Diversity hiring refers to the practice of actively seeking out and hiring individuals from a wide range of backgrounds, including but not limited to race, ethnicity, gender, age, sexual orientation, and physical abilities. This approach aims to create a more inclusive and representative workforce that reflects the diversity of society as a whole.

Domain Skill

A domain skill is a specific expertise or knowledge related to a particular field or industry, such as finance, marketing, technology, or healthcare. Developing domain skills is essential for success in a chosen career path.

E

Emotional Intelligence

Emotional intelligence is the ability to recognize, understand, and manage our own emotions, as well as the emotions of others. It involves skills such as empathy, self-awareness, and effective communication.

Employee Assistance Program

Employee Assistance Program (EAP) is a workplace benefit that provides employees with confidential support services to address personal or work-related issues that may impact their job performance, health, or mental well-being. These services often include counseling, mental health support, legal and financial advice, and assistance with substance abuse or family problems. EAPs are designed to help employees manage challenges and maintain productivity and overall well-being.

Employee Engagement

Employee engagement refers to employees' enthusiasm and commitment towards their work and organization. Keeping employees engaged in their work and organization is the responsibility of both HR and managers.

Employee Lifecycle

Employee lifecycle encompasses the various stages an employee goes through during their time with an organization, from recruitment and onboarding to development, retention, and eventually exiting the company.

Employee Relations

Employee relations focuses on managing the relationship between employees and the organization. This includes addressing conflicts, ensuring fair treatment, and promoting a positive work environment.

Employee Resource Groups (ERGs)

Employee Resource Groups (ERGs) are employee-led groups that bring together individuals with shared interests, backgrounds, or identities within an organization. ERGs can provide support, networking opportunities, and promote diversity and inclusion.

Employer Branding

Employer Branding refers to the reputation and image of an organization as an employer. A strong employer brand can attract top talent, improve employee retention, and enhance overall company performance.

Equal Employment Opportunity

Equal Employment Opportunity (EEO) is the principle of non-discrimination in the workplace based on factors such as race, gender, age, religion, or disability. Employers are required to provide equal opportunities for all employees and applicants.

Equity

Equity in the workplace refers to fairness and impartiality in the treatment of employees. This includes ensuring that all individuals have access to the same opportunities, resources, and rewards based on their abilities and performance.

Exit Interview

Exit Interview is a meeting between an employee who is leaving a company and a representative from HR or management. The purpose of an exit interview is to gather feedback on the employee's experience, reasons for leaving, and suggestions for improvement within the organization.

F

Fresher Hiring

Fresher hiring is recruiting and onboarding individuals who have recently graduated from college or university and have little to no work experience. Companies often have specific programs or initiatives in place to attract and train fresh graduates for entry-level positions within the organization.

Connect with an ever-growing community of 11 Mn+ freshers and early talent professionals through Unstop.

Flexible Benefits Plan

A flexible benefits plan, also known as a cafeteria plan or a flexible spending account, is a type of employee benefit program that allows workers to choose from a menu of different benefits options, such as health insurance, retirement savings plans, and wellness programs. This gives employees the flexibility to customize their benefits package based on their individual needs and preferences.

Fringe Benefits

Fringe benefits are additional perks provided by an employer, which are typically non-cash in nature, such as company cars, gym memberships, tuition reimbursement, or childcare assistance. These benefits are usually fixed and offered alongside standard compensation.

Furlough

Furlough is a temporary leave of absence or suspension from work, often without pay. It is typically used when a company needs to reduce costs or when there is a lack of work available. During a furlough, employees are still considered to be employed by the company but are not actively working or receiving their regular salary.

This can be a challenging time for employees, as they may need to find alternative sources of income until they are able to return to work.

G

Gig Worker

A gig worker is someone who is hired on a temporary or freelance basis to complete a specific task or project. They are not considered traditional employees and often work independently.

Golden Handcuffs

Golden handcuffs refer to financial incentives or benefits that are designed to encourage an employee to stay with a company, even if they may be considering leaving. These incentives can include stock options, bonuses, or other perks that make it difficult for an employee to leave.

Gratuity

Gratuity is a financial benefit given to employees by their employer as a token of appreciation for long-term service. It is typically provided upon retirement, resignation, or after completing a specified period of continuous employment, usually five years or more. Gratuity is calculated based on an employee's last drawn salary and the number of years of service, and it acts as a form of retirement benefit.

Grievance

A grievance is a formal complaint or concern raised by an employee regarding their treatment or working conditions. Employers typically have processes in place to address employee grievances and resolve any issues raised by employees.

Gross Salary

Gross salary refers to the total amount of money earned by an employee before any deductions are made for taxes, insurance, or other benefits. It is the base salary that is agreed upon between the employer and employee before any deductions are taken into account.

H

Halo/Horn Effect

The halo effect refers to the tendency for an individual's positive traits to overshadow any negative traits, leading to an overall positive impression. Conversely, the horn effect is the opposite, where negative traits overshadow positive ones, resulting in a negative perception.

Learn how to deflect the halo and horn effect during hiring.

HR Analytics

HR analytics involves the use of data and statistical analysis to make informed decisions about human resources within an organization. This data-driven approach helps HR professionals understand trends, predict future outcomes, and optimize processes related to employees.

HRIS

HRIS stands for Human Resource Information System, which is a software solution that helps organizations manage and automate various HR functions, such as payroll, recruitment, performance evaluation, and training. HRIS streamlines HR processes and improves efficiency.

HRM

HRM stands for Human Resource Management, which encompasses the strategic planning and management of an organization's workforce. HRM involves activities such as recruitment, training, performance evaluation, and employee relations to ensure that the organization's goals are met through its people.

HR Metrics

HR metrics are quantitative measurements used to assess the effectiveness and impact of HR initiatives within an organization. These metrics can include employee turnover rates, training costs, productivity levels, and other key performance indicators that help HR professionals track progress and make data-driven decisions.

Hybrid Work Culture/Hybrid Organization

A hybrid work culture or organization combines elements of remote work and in-person work. This flexible approach allows employees to work both in the office and remotely, providing a balance between collaboration and autonomy. Hybrid work cultures have become increasingly popular due to advancements in technology and changing attitudes towards work-life balance.

I

Implicit Bias

Implicit bias refers to unconscious attitudes or stereotypes that can influence people’s behaviors and decisions without their realization. In the workplace or hiring, implicit bias can lead to unfair treatment, affect decision-making processes, and perpetuate inequality.

Incentive

Incentives are rewards or benefits offered to employees to motivate them to achieve specific goals or objectives. These incentives can come in various forms, such as bonuses, promotions, extra time off, or even recognition for a job well done.

Inclusion

The practice of ensuring that all individuals feel respected, valued, and included in a group or organization, regardless of their background or characteristics.

Independent Contractor

A self-employed individual who provides services to a company or organization on a contract basis, rather than as an employee.

Induction

Induction is the process of introducing someone to a new job, role, or organization, typically including training and orientation.

Internship

A temporary position within a company or organization that provides hands-on experience and training for individuals, often students or recent graduates.

J

Job Analysis

Job analysis is the process of gathering, documenting, and analyzing information about a job's duties, responsibilities, skills, outcomes, and work environment. This information is crucial for various HR functions such as recruitment, selection, training, performance appraisal, and compensation.

Job Board

A job board is an online platform where employers can post job openings and job seekers can search for and apply to these positions. Job boards are a popular tool for both employers and job seekers to connect and facilitate the recruitment process.

Job Description

A job description is a written document that outlines the duties, responsibilities, qualifications, skills, and other requirements of a specific job. It provides a clear understanding of what the job entails and helps both employers and employees align expectations.

Job Design

Job design refers to the process of structuring and organizing tasks, responsibilities, and roles within a job. The goal of job design is to create jobs that are efficient, productive, and satisfying for employees while meeting the organization's objectives.

Job Enrichment

Job enrichment involves enhancing a job by adding more meaningful tasks, responsibilities, autonomy, and opportunities for growth and development. This can lead to increased job satisfaction, motivation, and engagement among employees.

Job Enlargement

Job enlargement involves expanding a job by adding more tasks of similar complexity and skill level. This can help prevent monotony and boredom in a job by providing employees with a greater variety of tasks to perform.

Job Posting

A job posting is a public announcement or advertisement that communicates information about a job opening within an organization. It typically includes details such as job title, duties, requirements, location, and how to apply for the position.

Job Rotation

Job rotation is a strategy where employees are moved through different jobs or tasks within an organization. This helps employees gain new skills, knowledge, and perspectives while preventing burnout and increasing overall job satisfaction.

K

Key Performance Indicator

Key Performance Indicator (KPI) is a measurable value that demonstrates how effectively a company is achieving key business objectives. It is used to evaluate the success of an organization or a particular activity in which it engages.

Knowledge, Skills, and Abilities (KSAs)

Knowledge, Skills, and Abilities (KSAs) refer to the attributes and qualities that an individual needs to possess in order to perform a specific job effectively. Knowledge refers to the information and understanding of a subject, skills are the practical abilities to perform tasks, and abilities are the innate talents or capacities that an individual possesses. KSAs are often used in job descriptions and evaluations to determine if a candidate is a good fit for a particular role.

L

Lateral Hiring

Lateral hiring refers to the practice of recruiting employees from outside the organization to fill positions at similar levels or with comparable experience. This can bring fresh perspectives, new skills, and diverse talent to the team.

Layoff

Layoff refers to the temporary or permanent termination of employees' employment due to various reasons such as downsizing, restructuring, or financial difficulties within a company.

Also Read: Laying Off But Not Letting Down: Managing Workforce Reductions With Compassion

Leadership Development

Leadership development involves activities and programs designed to enhance the skills, knowledge, and abilities of individuals in leadership positions within an organization. This can include training, mentoring, coaching, and other initiatives to help leaders grow and succeed.

Learning Management System

A learning management system (LMS) is a software application used to deliver, track, and manage online training and educational courses. It provides a centralized platform for organizing content, monitoring learner progress, and assessing performance.

M

Management Trainee

A management trainee is a recent college graduate or entry-level employee who undergoes a structured training program to learn about various aspects of business operations, management principles, and leadership skills. Management trainees typically rotate through different departments or roles to gain hands-on experience and prepare for future leadership positions within the organization.

Maternity Benefits

Maternity benefits refer to the financial support and benefits provided to female employees who are pregnant or have recently given birth. These benefits may include paid time off, healthcare coverage, and other support services to help women balance their work and family responsibilities.

Maternity Leave

Maternity leave is a period of time that a female employee takes off from work to give birth, recover from childbirth, and care for a newborn child. Maternity leave is typically paid, although the duration and amount of pay vary depending on the employer's policies and government regulations.

Matrix Organization

A matrix organization is a management structure where employees report to both a functional manager (based on their expertise or department) and a project manager (based on the specific project they are working on). This dual reporting structure allows for more flexibility and collaboration across different departments and projects.

Mentoring

Mentoring is a professional relationship in which an experienced individual (mentor) provides guidance, support, and advice to a less experienced individual (mentee) to help them develop their skills, knowledge, and career goals. Mentoring relationships can be formal or informal and are valuable for career development and personal growth.

N

Nepotism

Nepotism refers to the practice of favoring relatives or friends, especially by giving them jobs. This can lead to unfair treatment and bias in the workplace.

Net Salary

Net salary is the amount of money an employee takes home after deductions such as taxes, insurance, and retirement contributions have been taken out of their gross salary.

Non-Compete Clause

A non-compete clause is a contractual agreement that restricts an employee from working for a competitor or starting a competing business for a certain period of time after leaving their current employer.

Non-Disclosure Agreement

A non-disclosure agreement (NDA) is a legal document that outlines confidential information that parties agree not to disclose to others. This is commonly used to protect trade secrets, business strategies, and other sensitive information.

O

Offboarding

Offboarding is the process of transitioning an employee out of a company, which includes tasks such as exit interviews, returning company property, and providing necessary paperwork.

Offer Letter

An offer letter is a formal document from an employer to a potential employee, outlining the terms of employment including job title, salary, benefits, and start date.

Onboarding

Onboarding refers to the process of integrating a new employee into the organization, providing them with the necessary tools, information, and training to be successful in their new role.

Organizational Culture

Organizational culture encompasses the values, beliefs, and behaviors that contribute to the unique social and psychological environment of a company.

Organizational Development

Organizational development focuses on improving an organization's overall effectiveness and performance through strategies such as training, leadership development, and change management.

Orientation

Orientation is the initial introduction of a new employee to the company, including information about policies, procedures, and expectations.

Discover how orientation differs from onboarding.

P

Payroll

Payroll refers to the process of calculating and distributing wages to employees for the work they have completed within a specific pay period. This includes factors such as hourly rates, overtime, deductions, and taxes.

Payroll Software

Payroll software is a tool used by businesses to automate and streamline the payroll process. It helps in accurately calculating wages, managing employee information, and ensuring compliance with tax laws and regulations.

Performance Appraisal

Performance appraisal is a process where an employee's job performance is evaluated and assessed by their supervisor or manager. This can help identify strengths, weaknesses, and areas for improvement.

Performance Improvement Plan

A performance improvement plan (PIP) is a structured process designed to help employees improve their performance if they are not meeting expectations. It outlines specific goals, timelines, and support mechanisms to help the employee succeed.

Performance Management

Performance management is a comprehensive approach to managing employee performance, including goal setting, feedback, coaching, and development. It aims to align individual performance with organizational goals.

Phased Retirement

Phased retirement refers to a gradual transition from full-time work to retirement. It may involve reducing work hours and responsibilities or transitioning to a different role within the organization.

Pre-employment Testing/Pre-employment Check

Pre-employment testing or checks are assessments conducted before hiring a candidate to evaluate their skills, knowledge, abilities, and background. This helps employers make informed hiring decisions.

Probation/Probationary Period

Probation or a probationary period is a trial period for new employees to demonstrate their abilities and fit within the organization. It allows employers to assess performance before making a permanent hiring decision.

Q

Quality of Hire

Quality of Hire refers to the overall effectiveness and performance of an employee after a company has hired them. It takes into account factors such as job performance, cultural fit, and long-term potential within the organization. Essentially, it assesses how well a new hire meets the expectations and requirements of the role they were hired for.

A high quality of hire indicates that the individual is not only capable of performing their job duties successfully but also aligns with the company's values and goals, making them a valuable asset to the organization.

R

Recruitment

Recruitment is the process of finding, attracting, and selecting qualified candidates for a job or position within a company. This involves advertising the job, reviewing resumes, conducting interviews, and ultimately hiring the best candidate for the role.

Here’s how you can develop a winning recruitment strategy.

Reference Check

Reference check is a step in the hiring process where a potential employer contacts the references provided by a job applicant to verify their work history, skills, and character. This helps employers make an informed decision when hiring a new employee.

Reference Letter

Reference letter is a document written by a former employer, colleague, or supervisor that provides insight into the skills, qualifications, and character of a job applicant. Employers often request this letter during the hiring process to gain additional information about a candidate.

Relieving Letter

Relieving letter is a formal document issued by an employer to an employee who is resigning from their position. This letter confirms the employee's resignation, states their last working day and may include other details such as final salary payment and return of company property. It serves as proof that the employee has been relieved of their duties and responsibilities within the company.

Remote Hiring

Remote hiring refers to the process of recruiting and employing candidates without requiring them to be physically present in a centralized office or location. Instead, the recruitment process—such as interviews, assessments, and onboarding—is conducted virtually using digital tools like video conferencing, online job platforms, and remote collaboration software. Remote hiring enables companies to tap into a global talent pool, allowing employees to work from different geographic locations.

Remote Working

Remote working refers to the arrangement where employees work outside of a traditional office setting, typically from home or another remote location. This setup offers flexibility and work-life balance for employees while also allowing companies to save on office space and overhead expenses.

Reskilling

Reskilling refers to the process of learning new skills or updating existing ones to adapt to changes in the job market or industry requirements. It involves acquiring knowledge and abilities that are in demand to enhance one's employability and career prospects. It can involve formal education, training programs, online courses, or on-the-job learning to acquire the necessary skills for current or future job roles.

Restricted Holiday

Restricted Holiday (RH), also known as an optional holiday, is a type of leave that employees can choose to take from a pre-approved list of holidays that the organization does not universally observe. Unlike public holidays, which are mandatory for all employees, restricted holidays provide flexibility, allowing individuals to select holidays based on their personal, cultural, or religious preferences. Employees are typically allowed to choose a limited number of restricted holidays in a given year.

Retention

Retention refers to the ability of an organization to retain its employees over a period of time. This is crucial for the stability and success of a company, as high turnover rates can be costly and disruptive. Strategies for retention may include creating a positive work environment, offering competitive salaries and benefits, providing opportunities for growth and development, and recognizing and rewarding employees for their contributions.

Reverse Mentoring

Reverse Mentoring is a concept where younger or less experienced employees are paired with older or more senior employees to share knowledge, skills, and perspectives. This allows for a two-way exchange of information and can help bridge generational gaps in the workplace. Reverse mentoring can be beneficial for both parties involved, as it encourages learning, collaboration, and diversity of thought.

Peter Hinssen, Best-selling Author, Futurist, Co-Founder of nexxworks, talked to Unstop about reverse mentoring. Here’s what he said

Rewards and Recognition

Rewards and Recognition are essential components of employee engagement and motivation. Rewards can come in various forms, such as bonuses, promotions, or other incentives, while recognition involves acknowledging and appreciating employees for their hard work and achievements. Both rewards and recognition help boost morale, increase job satisfaction, and foster a positive company culture.

S

Sabbatical

A period of time during which an employee takes an extended break from work, often for personal or professional development reasons.

Get the detailed HR guide to sabbatical leave.

Sensitivity Training

Sensitivity training includes workshops or programs designed to increase awareness and understanding of issues related to diversity, inclusion, and sensitivity in the workplace.

Skill-based Hiring

A recruitment approach that focuses on identifying and hiring candidates based on their specific skills and abilities rather than just their qualifications or experience.

Improve your recruitment strategy with this eBook on skill-based hiring.

Skill Gap

The difference between the skills that employees currently possess and the skills that are required for them to perform their roles effectively.

Find out how to conduct skill-gap analysis.

Soft Skills

Non-technical skills that are related to how employees interact with others, communicate, and solve problems, such as teamwork, communication, and leadership.

Know the importance of soft skills in hiring.

Sourcing

The process of identifying, attracting, and engaging potential candidates for job openings through various channels, such as job boards, social media, and networking, is known as sourcing.

Stay Interview

Stay Interview is an interview conducted with current employees to understand their level of job satisfaction, identify any potential issues that may cause them to leave, and take steps to retain them.

Succession Planning

A strategic process of identifying and developing internal talent to fill key leadership positions within an organization in the future. Succession planning is crucial for ensuring the long-term success and sustainability of an organization by proactively preparing for leadership transitions.

T

Talent Acquisition

Talent acquisition involves the process of identifying, attracting, and recruiting skilled individuals to fill job positions within an organization. This process may include sourcing candidates, conducting interviews, and making job offers.

Remember, talent acquisition is not the same as recruitment!

Team Building

Team Building refers to activities and strategies aimed at improving communication, collaboration, and trust among team members. These activities can help enhance team performance and productivity.

Termination

Termination is the act of ending an employee's employment with a company. This can occur for various reasons, including poor performance, misconduct, or organizational restructuring.

Time to Fill

Time to Fill is the duration it takes for a job opening to be filled from the time it is posted. This metric can provide insights into the efficiency of the recruitment process.

Time to Hire

Time to Hire measures the time it takes for a candidate to go through the recruitment process and accept a job offer. This metric can help organizations assess their hiring speed and efficiency.

Training & Development

Training and development involve providing employees with opportunities to enhance their skills and knowledge through learning programs and professional development initiatives. This can help employees grow in their roles and contribute more effectively to the organization.

Turnover Rate

The turnover rate is the percentage of employees who leave an organization within a certain period of time. A high turnover rate can indicate issues with employee satisfaction, retention, or organizational culture.

U

Upskilling

Upskilling refers to the process of learning new skills or improving existing ones to stay relevant in the rapidly changing job market. By upskilling, individuals can enhance their employability and adapt to the evolving demands of the workplace.

V

Vacancy

A vacancy refers to an unfilled position within a company or organization. When a job opening exists due to an employee leaving or a new position being created, it is considered a vacancy.

Variable Pay

Variable pay is a compensation structure where a portion of an employee's pay is based on performance or other factors that can vary. This can include bonuses, incentives, commissions, or profit-sharing arrangements.

Video Interview

A video interview is a job interview conducted remotely using video conferencing technology. This method allows employers to interview candidates from different locations without the need for in-person meetings.

Voluntary Retirement

Voluntary retirement is when an employee chooses to retire from their job willingly, typically after reaching a certain age or completing a certain number of years of service. This decision is made by the employee and is not forced by the employer.

W

Wage

The amount of money paid to an employee in exchange for their work or services.

Work-Life Balance

The equilibrium between one's professional responsibilities and personal life, which ensures that neither aspect dominates the other.

Workforce Management

The strategic approach to optimizing the productivity and performance of employees within an organization.

Workforce Planning

The process of forecasting an organization's future workforce needs and implementing strategies to meet those needs is referred to as workforce planning.

Wrongful Termination

Wrongful Termination: The illegal dismissal of an employee from their job, often due to reasons such as discrimination, retaliation, or violation of employment laws.

Y

Yield Ratio

The yield ratio is a financial metric used to measure the efficiency of an investment by comparing the amount of income generated to the initial cost of the investment. It is calculated by dividing the annual income or yield from an investment by the initial cost or purchase price. A high yield ratio indicates that the investment is generating a significant return relative to its cost, while a low yield ratio may suggest that the investment is not performing as well. The yield ratio is commonly used in real estate and bond investments to evaluate the potential return on investment.

Z

Zero-Tolerance Policy

A zero-tolerance policy is a strict approach that mandates the application of predetermined consequences or punishment for specific offences without any consideration for mitigating circumstances or individual discretion. This type of policy aims to create a clear and consistent standard for behavior, typically in situations where certain actions are deemed unacceptable or pose a significant risk to others. Zero-tolerance policies are often implemented in schools, workplaces, and other organizations to maintain order, safety, and discipline.

Final Remarks

Understanding HR terminology is crucial for navigating today’s workplace. Key terms in employee experience, emerging trends, and the importance of soft skills shape how you engage with your team. Mastering this language empowers you to foster a positive work environment and adapt to changes swiftly.

Frequently Asked Questions

1. What is an HR glossary?

An HR glossary is a comprehensive list of terms and definitions related to human resources. It helps professionals understand industry jargon, enhancing communication and knowledge within the field.

2. Why is understanding HR terminology important?

Understanding HR terminology is crucial for effective communication in the workplace. It fosters collaboration, ensures clarity in policies, and aids in navigating employee relations successfully.

3. What are key terms in employee experience?

Key terms in employee experience include engagement, onboarding, feedback, and retention. Familiarity with these concepts helps organizations create a positive work environment and improve overall employee satisfaction.

4. How do emerging HR trends impact businesses?

Emerging HR trends, like remote work and AI integration, significantly influence business operations. They shift recruitment strategies, enhance employee engagement, and promote diversity and inclusion initiatives.

5. Why are soft skills important in HR?

Soft skills, such as communication and empathy, are vital in HR roles. They enhance interpersonal relationships, facilitate conflict resolution, and contribute to a positive workplace culture.

6. What role does emotional intelligence play in HR?

Emotional intelligence allows HR professionals to understand and manage emotions effectively. This skill improves team dynamics, enhances leadership capabilities, and fosters a supportive work environment.

Suggested Reads:

• 9 Essential Strategies For Communicating Effectively With Gen Z
• Understanding The Role Of A Chief Human Resources Officer 
• Company Retreat Ideas: 11 Activities For Team Building, Relaxation & Celebration
• The Great Betrayal & Its Aftermath: How To Rebuild Employee Trust