HR Glossaries – Sprout Solutions

Human Resource Glossary for HR Terms

HR Glossary

Welcome to Sprout’s HR Glossary, your go-to resource for navigating the HR landscape with ease! In today’s evolving world, staying informed is key. This glossary is your trusty companion in deciphering HR and SaaS terms and will help make complex concepts easy for you to understand. Supercharge your HR knowledge and check out some of these terms below:

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360-degree feedback

A comprehensive assessment process in which employees receive confidential, anonymous feedback from various individuals in their work environment. This input ..

A

Applicant Tracking System (ATS)

A component of a human resource information system (HRIS) designed to facilitate and streamline the recruitment process. An ATS retains ..

Apprenticeship

A structured work arrangement where individuals gain practical skills through hands-on training under a mentor. It offers a pathway to ..

Applicant

An individual who has expressed interest in a job opportunity by formally applying to it. Applicants typically engage in an ..

Ageism

Ageism, or age discrimination, arises when employers treat applicants or employees unfairly based on their age. For instance, some businesses ..

Absenteeism

Absenteeism refers to a pattern of consistent and unexplained absence from work or assigned responsibilities. It primarily involves unexpected absences ..

B

Business continuity planning

A corporate process for recognizing potential threats and crafting efficient strategies to mitigate them. This includes creating a business continuity ..

Bumping

When an organization eliminates certain positions, bumping allows the affected employees, typically junior ones, to explore other suitable job openings ..

Buddy system

A practice where newly hired employees are paired with experienced colleagues who guide them through company operations, introduce them to ..

Broadbanding

A pay structure that involves setting a wider-than-normal salary band, or pay range, for a specific job level. ..

Bona fide occupational qualification (BFOQ)

This exception acknowledges that in exceedingly uncommon cases, an individual’s gender, religious beliefs, or nationality may be necessary for performing ..

Bonus

A monetary incentive provided to employees upon achieving particular business targets and objectives. Employers usually establish criteria for eligibility. For ..

Blended workforce

A workforce that combines individuals with different working arrangements (e.g., part-time, full-time, contractual) to fulfill the needs of an organization. ..

Benchmarking

Salary benchmarking is a process that assesses the appropriate market rates for different positions within an organization. It involves analyzing ..

Benefits administration

This process of managing and overseeing employee benefits programs within an organization, which includes enrolling employees in health insurance plans, ..

Base or basic salary

A salaried employee’s regular pay without additional deductions or contributions, often stated in job listings and employment contracts. ..

C

Cloud computing

Cloud computing enables data and program storage and access over the Internet. Providers handle data transmission to servers, ensuring compliance ..

Change management

A deliberate strategy for guiding individuals or organizations to a desired state, involving planning, execution, and monitoring.Organizations can perform change ..

Career plateaus

This situation arises when employees encounter a lack of upward career progression, leading to feelings of being stuck, unchallenged, or ..

Casual employment

A type of employment which involves hiring individuals as needed to address specific requirements, like covering full-time employee absences or ..

Certificate of employment

A certificate of employment confirms an individual’s job history with their employer. It notes employment dates and held positions. Employers ..

Career pathing

This process involves employees charting their career growth and development. Organizations use this process to align available growth opportunities with ..

Career development

The journey that individuals undertake to make career decisions, refine their skills, and follow a structured career path. It typically ..

Candidate

A person who is evaluated during the application process and selected as a potential fit for an open position. Employers ..

Candidate

A person who is evaluated during the application process and selected as a potential fit for an open position. Employers ..

D

Downsizing

The process of simultaneously terminating multiple employees in an organization. Companies downsize to reduce operational costs, when using new technology ..

Diversity training

A training program aimed at expanding employees’ cultural awareness, knowledge, and skills. Diversity training can help employers prevent civil rights ..

Due diligence

Often described as a company’s measures to ensure compliance with relevant laws. This term is also used in mergers and ..

Direct report

d a “subordinate,” this individual operates under a manager or superior’s authority. They receive assignments and performance evaluations from their ..

Discrimination

Discrimination is unjust treatment of employees due to factors like age, gender, religion, or nationality. It can manifest among colleagues, ..

Disciplinary action

This involves addressing employee misconduct, rule breaches, or subpar performance. It encompasses measures such as verbal or written warnings, subpar ..

Developmental counseling

This refers to a collaborative counseling between managers and their reports to pinpoint strengths, weaknesses, tackle performance concerns, and formulate ..

Delayering

The process of trimming hierarchy levels to enhance efficiency and cut costs. This often involves removing middle management roles, giving ..

D&I (Diversity and inclusion) / DEI (Diversity, equity and inclusion)

These terms denote fostering an inclusive workplace culture where individuals from diverse backgrounds (e.g., race, gender, culture, social class) are ..

D&I (Diversity and inclusion) / DEI (Diversity, equity and inclusion)

These terms denote fostering an inclusive workplace culture where individuals from diverse backgrounds (e.g., race, gender, culture, social class) are ..

E

Employee handbook

A resource that informs employees of their organization’s mission, vision, values, policies, procedures, and code of conduct. It can help ..

Employee experience

How an individual feels about their organization, influenced by physical, digital, and cultural factors. Physical aspects involve office comfort and ..

Employee management

Employee management encompasses various crucial aspects, starting with selecting the right candidates for job openings, followed by consistent performance monitoring. ..

Employee assessment

These evaluations aid employers in selecting the most suitable candidates for job vacancies. These tests can be administered in-person or ..

Employee benefits

Any form of financial compensation that employees receive along with their salaries. In the Philippines, these typically encompass paid service ..

Employee engagement

Focuses on enhancing employees’ sentiments towards their workplace, colleagues, and the company’s culture. Elevating engagement entails implementing strategies that boost ..

Emotional intelligence (EI)

Emotional intelligence (EI) is the capacity to be self-aware, manage emotions, and handle interpersonal relationships well. ..

Earned wage access (EWA)

EWA allows employees to access a portion of their net pay before the scheduled payday. Employers offer this through dedicated ..

Earned wage access (EWA)

EWA allows employees to access a portion of their net pay before the scheduled payday. Employers offer this through dedicated ..

F

Functional job analysis

A job assessment that identifies the responsibilities and functions of a specific job. The benefits of conducting functional job analyses ..

Flexible work arrangements

This work set-up breaks the mold of traditional 9-to-5 jobs. They encompass various forms like work-from-home (WFH), where employees work ..

Full-time employment

A type of employment that mandates a minimum of 32 to 40 hours of work per week, typically offering a ..

Financial wellness or well-being

A term that relates to an individuals’ financial management. It signifies feeling financially secure and having the freedom to make ..

Final pay

In the Philippines, final pay for resigned or terminated employees includes unpaid salary, unused leave, 13th-month pay, separation pay, retirement ..

Factor comparison

A systematic method that ranks jobs by evaluating various factors like mental effort, skills needed, and working conditions. This approach ..

Factor comparison

A systematic method that ranks jobs by evaluating various factors like mental effort, skills needed, and working conditions. This approach ..

G

Gender pay gap

Income disparities between men and women in comparable roles. This imbalance arises from various interconnected factors, such as women’s underrepresentation ..

Generation X or Gen X

Generation X comprises those born from the mid-1960s to around 1980. This generation witnessed significant societal changes, including increased female ..

Generation Z or Gen Z

Generation Z, or Gen Z, refers to those born from the late 1990s to the early 2010s, typically aged 10 ..

Generation Z or Gen Z

Generation Z, or Gen Z, refers to those born from the late 1990s to the early 2010s, typically aged 10 ..

H

Holiday pay

Holiday pay encompasses various forms of compensation given to employees during holidays, including paid time off or extra pay for ..

Hawthorne effect

The Hawthorne effect, derived from Elton Mayo’s experiments, reveals that employees improve productivity when they are observed. This concept is ..

Hierarchy of needs

Abraham Maslow’s theory outlines a five-tier hierarchy of human needs, often depicted as a pyramid. These levels include Physiological, Safety, ..

Halo or horn effect

A type of rater bias affecting employee evaluations and hiring processes. It involves supervisors or hiring managers giving an overall ..

Harassment

Unwelcome conduct based on on one’s race, color, religion, sex (including pregnancy), national origin, disability, or genetic information, which includes ..

Hard skills

Specific, quantifiable abilities tied to job roles. For instance, digital marketers may excel in conversion rate optimization (CRO) or email ..

I

Industrial psychology

A branch of applied psychology, studies workplace human behavior and effective workforce management strategies. ..

Implicit bias

An individual’s unconscious negative attitude towards a social group, shaped by their experiences and learned associations. These biases influence judgments ..

Incentives

Programs or rewards designed to inspire employees and enhance productivity. These may include tangible rewards like material goods or intangible ..

J

Job evaluation

The process where organizations assess their roles to establish appropriate pay rates. Methods for job evaluation encompass point-factor evaluation, factor ..

Job dissatisfaction

Job dissatisfaction refers to employee discontentment with their work, typically caused by factors like low pay, unhelpful management, limited growth ..

Job description

A written outline of a role’s main responsibilities, duties, required skills, and qualifications. ..

Job demands-resources model

An occupational stress model that identifies stress-related factors in specific occupations. It distinguishes between job demands and job resources. ..

Job description

A written outline of a role’s main responsibilities, duties, required skills, and qualifications. ..

Job board

An online platform that provides up-to-date job listings across diverse industries. ..

Job analysis

This process involves gathering job-related data to identify key functions, required skills, and its relative importance within the organization. ..

K

KSAs (Knowledge, Skills, & Abilities)

Encompasses the behaviors and attributes necessary for job performance. They serve as benchmarks to gauge an individual’s qualifications for a ..

Knowledge management

Knowledge management is an integrated strategy that captures, evaluates, retrieves, and shares a company’s information resources. When employees leave, their ..

Key performance indicators (KPIs)

Crucial, measurable metrics that gauge progress toward specific goals. KPIs enhance strategic development, inform data-driven decisions, and prioritize essential tasks. ..

L

Leave accrual

The gradual accumulation of paid time off, such as vacation or sick leave, by an employee over a specified period, ..

Labor market

Encompasses the interplay between job supply and demand. It comprises individuals seeking employment (the supply) and organizations requiring workers due ..

Learning management system (LMS)

A comprehensive platform that manages a company’s training programs and facilitates the creation of digital training content, including lessons, courses, ..

Leadership development or training

Structured programs and activities designed to cultivate and enhance leadership skills and qualities. These initiatives empower individuals to become more ..

M

Metrics

Quantitative indicators employed by companies to assess, compare, and monitor performance or production. Executives rely on metrics to evaluate the ..

Mediation

A dispute resolution process where a neutral third party helps companies and complainants reach a settlement. Mediators facilitate communication and ..

Matrix organization

A company structure where teams report to multiple leaders, promoting cross-functional collaboration and innovation. This structure enables teams to swiftly ..

Managed service provider (MSP)

An external agency that manages an organization’s temporary staffing needs. MSPs work collaboratively with a company to source, oversee, and ..

Management by objective (MBO)

A goal-setting approach where individuals define specific objectives aligned with their organization’s broader goals and objectives. This process fosters consensus ..

Managed care

Involves a provider overseeing an individual’s medical care for a predetermined fee. Unlike fee-for-service models where clients pay per service, ..

N

Negotiation

A process through which disputing parties reach a resolution by finding common ground and mutually agreeable terms. It promotes compromise ..

Needs analysis

An essential step for organizations to assess their teams or employees, identifying skill levels and training requirements. It forms the ..

O

Offboarding

The formal process of parting ways with an employee who has resigned, retired, or been terminated. It safeguards the interests ..

Occupational health and safety

A public health field that focuses on workplace health conditions. Professionals in this field create and enforce preventive measures and ..

Observation interview

A pre-hiring or promotion interview where the employer or recruiter closely observes the candidate’s work. The interviewer takes notes and ..

Occupational health and safety

A public health field that focuses on workplace health conditions. Professionals in this field create and enforce preventive measures and ..

P

Performance management

The process or system companies use to measure and improve employee performance. Performance management can be used to track organizational, ..

Performance planning

A strategic process ensuring that employees meet their organization’s goals. In performance planning, leaders establish specific, measurable, attainable, relevant, and ..

Performance improvement plan (PIP)

A tool that offers underperforming employees the opportunity to succeed. Managers implement a performance improvement plan to help their direct ..

Performance appraisal or review

A formal assessment wherein managers evaluate an employee’s work performance, identify strengths and weaknesses, provide feedback to the evaluated individual, ..

People operations

A business function that prioritizes employees. People operations encompasses all activities to help employees increase their productivity throughout the employee ..

Payroll

The term “payroll” could refer to the list of an organization’s employees and how much they’re paid or the department ..

Payroll deduction

Wages withheld from an employee’s paycheck for paying taxes, benefits, or garnishments. A payroll deduction can be mandatory or voluntary, ..

Payroll software

Payroll software is a digital tool designed for swift and precise payroll processing. It automates calculations for payroll masters, grants ..

Pay period

A regularly scheduled period for the payment of employees, including when their hours are tracked and logged. Regular pay periods ..

Pay grade

A grouping of jobs that a company views as relatively valuable to its operations and compensates at the same or ..

Q

Quiet quitting

The act of merely performing work duties and responsibilities rather than going beyond them. Many employees “quietly quit” for several ..

R

Rotational training

A learning and development strategy that allows employees to alternate between departments, jobs, and company functions. Ultimately, trainees gain more ..

Reverse mentoring

A form of mentoring with the typical roles switched. For example, younger employees can help older, more seasoned colleagues use ..

Risk management

Companies perform risk management by evaluating their exposure to potential losses and determining the best ways to address these risks ..

Retention rate

Refers to the percentage of employees who’ve stayed at a company over a particular period. An organization’s retention rate denotes ..

Return to office (RTO)

A coordinated plan or process to ensure employees and contractors safely come back to physical workplaces. According to the Society ..

Retention

Describes whether an employer is able to prevent employee turnover, specifically how they retain team members and convince them to ..

Reskilling

Reskilling allows employees to learn new skills outside of their current skillsets, often closely related to their position. But sometimes, ..

Regular employment

An employment arrangement lasting for a definite and longer period, but often described as continuing employment over an indefinite period. ..

Redundancy

Redundancy occurs when employers must terminate one or more employees for reasons beyond their performance or behavior. For instance, an ..

Recruitment process outsourcing (RPO)

In RPO, organizations delegate all or several parts of their recruitment process to a third party. RPO providers can use ..

S

Suspension

When an employee is suspended, they’re removed from the workplace as unsatisfactory performance, behavior, or situations encourage higher management to ..

Structured interview

In a structured interview, recruiters ask preestablished questions to all candidates in the same order, then rate them with a ..

Summary dismissal

A summary dismissal occurs when an employer immediately terminates an employee due to unsatisfactory behavior. In turn, the person receives ..

Succession planning

Succession planning involves identifying a company’s long-term human capital needs and nurturing current employees to meet them. Organizations conduct succession ..

Strategic planning

Planning that involves developing business strategies, implementing them, and assessing their outcomes, all built around organizational goals or aspirations. Strategic ..

Strategic human resource management

Strategic human resource management helps organizations align HR initiatives with their overall strategies and goals. Companies identify and prioritize the ..

Stay interview

An interview aimed to uncover what employees value about their roles and their suggested improvements. Stay interviews are similar to ..

Sourcing

The process of proactively identifying, contacting, and engaging with people qualified for open positions. While most recruiters can source job ..

Staffing

The constant process of seeking, choosing, assessing, and building relationships with current and prospective employees. Through staffing, companies fill open ..

Soft skills

Characteristics that influence an individual’s work and interactions with others. Soft skills are more related to an employee’s personality than ..

T

Turnover

The number of employees who leave their employer during a specific period (often within a year). Turnover can extend to ..

Transformational leadership

A leadership style that inspires individual and societal change. Ideally, transformational leadership creates valuable, positive changes in people, molding them ..

Turnover rate

Turnover rate, a vital HR metric, indicates the proportion of employees leaving an organization in a specific timeframe, usually a ..

Training and development

A term describing educational activities for improving employees’ skills and knowledge while teaching them how to perform their tasks more ..

Time and attendance record-keeping

This HR task involves recording employee attendance and maintaining documents related to it. Time and attendance record-keepers note when employees ..

Total compensation

Total compensation comprises all payments and benefits from an employer to an employee. This encompasses base salary, bonuses for high ..

Total rewards strategy

A system used by businesses that reward high-performing employees. It combines compensation and benefits with personal growth opportunities inside a ..

Team building

A process wherein companies form a cooperative, united group of individuals through daily interactions, activities, and exercises. Team building encourages ..

Tangible rewards

The rewards given to employees to acknowledge their contributions to an organization and thank them for a job well done. ..

Tax Identification Number (TIN)

A system-generated reference index number that the Bureau of Internal Revenue (BIR) to every individual registered in its database. Each ..

U

Upskilling

Upskilling happens whenever employees learn to add new skills to their skillset, which helps these individuals perform their jobs better. ..

Unjustifiable dismissal

An unjustifiable dismissal may occur when an employer terminates an individual’s employment without a legal or valid reason or through ..

Unfair labor practice

The Department of Labor and Employment defines an unfair labor practice as an offense committed by an employer or labor ..

Union

A group of employees who use their strength to make themselves heard in their workplace. Unions allow employees to propose ..

V

Virtual HR

Virtual HR involves connecting employees to multiple technologies and HR services whenever they need to. Team members access these resources ..

Vision statement

A written statement explaining a company’s meaning and purpose to its stakeholders, including employees. A vision statement expresses what the ..

Video interview

This type of job interview is conducted through video, either live or on-demand, depending on the recruiter’s preference. Live video ..

Values statement

A mission statement articulates an organization’s values and beliefs to the public. It often delineates the evolution of the organization’s ..

Vertical organization

Refers to a company with multiple levels of management. A vertical organization has a pyramid-like, top-down management structure, starting with ..

W

Workforce planning

Workforce planning involves assessing a company’s personnel and anticipating future staffing requirements. Employers analyze existing and future workforce needs, aiming ..

Work-life balance

The fine balance between an employee’s work and personal life. Maintaining a work-life balance can help relieve a worker’s stress ..

Work shifts

The schedules an employer sets and expects employees to work during their employment. Most organizations allow their employees to perform ..

Work-life integration

Work-life integration encourages employees to intertwine work with personal life, fostering a sense of fulfillment. Individuals tailor this integration based ..

Work from home (WFH)

A work setup allowing employees to work at home or in another location. An example of a work-from-home arrangement would ..

Wage

Wage is the primary form of monetary compensation for employees, calculated based on hours worked. Variants include minimum wage (legally ..

Wellness programs

Wellness programs aim to improve and promote health and fitness within an organization. Through these initiatives, employers offer various incentives ..