February 20, 2025

The Ultimate HR Glossary: Essential Terms Every HR Professional Should Know

Discover our HR Glossary, a comprehensive A-Z guide covering key HR terms, definitions, and concepts. Perfect for HR professionals, recruiters, and business leaders looking to navigate the world of human resources with confidence.

The Ultimate HR Glossary: Essential Terms Every HR Professional Should Know

Discover our HR Glossary, a comprehensive A-Z guide covering key HR terms, definitions, and concepts. Perfect for HR professionals, recruiters, and business leaders looking to navigate the world of human resources with confidence.

A

Absenteeism – The frequent absence of an employee from work beyond an acceptable limit.

Applicant Tracking System (ATS) – A software tool used by recruiters to track and manage job applications.

Affirmative Action – Policies aimed at increasing workplace diversity and inclusion.

Attrition Rate – The rate at which employees leave a company over a period of time.

Artificial Intelligence in HR – The use of AI for tasks like resume screening and employee engagement analysis.

B

Background Check – A verification process that reviews a candidate’s criminal, employment, and educational history.

Behavioral Interview – An interview technique where candidates describe past experiences to demonstrate skills.

Benefits Package – The non-wage compensation provided to employees (e.g., insurance, retirement plans).

Benchmarking – Comparing HR metrics with industry standards to improve performance.

Bias Training – Programs aimed at reducing unconscious bias in hiring and workplace decisions.

C

Compensation – The total payment an employee receives, including salary, bonuses, and benefits.

Corporate Culture – The values, beliefs, and behaviors that define a company’s work environment.

Compliance – Adherence to legal and regulatory employment requirements.

Conflict Resolution – Strategies to address workplace disputes and maintain a healthy work environment.

Cost-per-Hire – The total cost associated with hiring a new employee.

Continuous Performance Management – A system where employee performance is reviewed regularly rather than annually.

D

Diversity & Inclusion (D&I) – Efforts to create a workplace that embraces differences in backgrounds and perspectives.

Disciplinary Action – Measures taken against employees who violate company policies.

Downsizing – Reducing the workforce due to business restructuring or cost-cutting measures.

Drug Testing – Screening employees for drug use as part of company policy.

E

Employee Engagement – The emotional commitment employees have toward their organization.

Employee Handbook – A document outlining company policies, expectations, and benefits.

Employee Onboarding – The process of integrating new hires into the company.

Exit Interview – A conversation with departing employees to gather feedback.

Equal Employment Opportunity (EEO) – Laws that prevent workplace discrimination.

F

Fair Labor Standards Act (FLSA) – A U.S. law that regulates wages and working hours.

Flexible Work Arrangements – Alternative work schedules such as remote work or compressed workweeks.

Fringe Benefits – Extra perks provided to employees (e.g., gym memberships, tuition reimbursement).

Full-Time Equivalent (FTE) – A unit that represents the workload of a full-time employee.

G

Gig Economy – A labor market based on short-term contracts or freelance work.

Glass Ceiling – An invisible barrier preventing minorities and women from career advancement.

Grievance Procedure – A formal process for employees to report workplace issues.

H

Harassment Policy – A set of guidelines to prevent and address workplace harassment.

HR Audit – A review of HR policies and procedures to ensure compliance and efficiency.

HR Business Partner (HRBP) – An HR professional who aligns HR strategies with business goals.

Hybrid Work Model – A combination of remote and in-office work.

I

Incentive Pay – Extra compensation to motivate employees (e.g., bonuses, commissions).

Inclusive Workplace – A work environment that values diversity and equal opportunity.

Internship – A temporary position for students or recent graduates to gain experience.

Interview Scorecard – A structured method for evaluating candidates during interviews.

J

Job Description – A detailed outline of a position’s responsibilities and qualifications.

Job Posting – A public announcement of a job opening.

Job Rotation – Moving employees between different roles to enhance skills and engagement.

K

Key Performance Indicators (KPIs) – Metrics used to measure employee or organizational success.

Knowledge Management – The process of capturing and sharing organizational knowledge.

L

Layoff – The termination of employees due to business downturns.

Learning and Development (L&D) – Training programs aimed at employee skill enhancement.

Leave Policy – Company rules regarding vacation, sick leave, and other time off.

Leadership Development – Programs designed to prepare employees for management roles.

M

Mentorship Program – A system where experienced employees guide junior employees.

Maternity/Paternity Leave – Time off granted to employees for childbirth or adoption.

Moonlighting – When employees take on secondary jobs outside their primary employment.

N

Non-Compete Agreement – A contract preventing employees from working with competitors after leaving a company.

Notice Period – The time an employee must work after resigning before leaving the company.

O

Offboarding – The formal process for managing an employee’s departure.

Open-Door Policy – A workplace culture where employees can freely communicate concerns with management.

P

Payroll Processing – The administration of employee salaries, taxes, and benefits.

Performance Appraisal – A structured review of an employee’s work performance.

Probation Period – An initial employment period where a new hire is evaluated.

Professional Development – Training programs aimed at career growth.

Q

Qualitative Feedback – Non-measurable insights about employee performance.

Quiet Quitting – Employees doing the bare minimum at work without formally resigning.

R

Recruitment – The process of attracting and hiring new employees.

Retention Strategy – Methods used to keep employees engaged and reduce turnover.

Remote Work – Working from a location outside the office, typically from home.

Resume Screening – The process of reviewing job applications for relevant qualifications.

S

Salary Benchmarking – Comparing salaries to industry standards to ensure competitiveness.

Succession Planning – Identifying and preparing employees for future leadership roles.

Social Media Screening – Reviewing a candidate’s online presence during hiring.

Soft Skills – Non-technical skills such as communication and teamwork.

T

Talent Acquisition – A strategic approach to identifying and recruiting top talent.

Total Compensation – The sum of salary, benefits, and bonuses received by an employee.

Turnover Rate – The percentage of employees leaving an organization over a given time.

U

Unconscious Bias – Implicit stereotypes that affect hiring and management decisions.

Upskilling – Training employees to enhance their skills for career growth.

V

Vacation Policy – Company rules on paid time off.

Voluntary Turnover – Employees leaving the company by choice.

W

Work-Life Balance – The balance between professional and personal life.

Workforce Planning – Strategic planning of future staffing needs.

X-Y-Z

Xenophobia in Hiring – Bias against hiring foreign employees.

Yellow-Dog Contract – A now-illegal contract preventing employees from joining a union.

Zero-Tolerance Policy – Strict workplace policies against misconduct.

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Charu Mitra Dubey
Content Marketing Lead at GetPhyllo with 6+ years of digital marketing experience. Founder of CopyStash, a weekly newsletter on marketing.
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