Who said HR terms are only for people within the profession? Whether you are an HR or not, as long as you have a job that you do currently, you must be acquainted with some of these terms. Also, considering that HRs use most of these terms for employees, there is no running away from it.
Why should you be acquainted with HR Terms?
Regardless of your job role, having an idea of different HR terms can help you navigate your career more effectively as they are they’re important for understanding workplace dynamics, policies, and procedures. The knowledge of these terms also serves as an avenue for you to clearly understand your rights as an employee, company regulations, and professional expectations.
Also, if you need to seamlessly resolve workplace issues, understand benefits, and comprehend performance evaluations, then you must know about some of these terms, even if not all.
What are some of these HR terms?
Some of the HR terms that can help you as an employee along the lines of your career include the following;
Abscond
You may think it’s okay for you to not show up at work for days without any meaning attached to it. But, when you do this without informing the appropriate authorities and even your colleagues, it is called Absconding. Depending on the operations of the organization, there might be a penalty such as not paying them the salary for the days they spent working before they absconded.
Background Check
A background check is a way to confirm if someone is really who they say they are. It involves looking into a person’s history, like checking if they have a criminal record, verifying their education and work history, and examining things they’ve done in the past to make sure they’re truthful. How often, why, and how thoroughly these checks are done can be different depending on the country, job, or person involved.
Basic Salary
Basic salary is the amount an employee earns before any extra money or reductions are included. The changes made to this base salary by the organization can significantly affect the final paycheck the employee gets. Many companies determine pay every year, dividing the total salary or compensation by 12 months to calculate the monthly basic salary. This means employees receive their pay on 12 specific days throughout the year.
Change Management
Change management means having a plan to help people or companies move from how things are now to how they want things to be. Also, change management helps an organization make sure that its people adjust to specific changes. These strategies put in place involve having a clear way to ask for a change, and then systems to handle and monitor the requests.
Churn Rate
Churn rate refers to how many customers or employees stop working or leave within a specific time. It could be the percentage of service users who cancel their subscriptions or how many workers quit their jobs in a certain period. To calculate the customer churn rate, pick a timeframe, count how many customers you got, count how many stopped using your service in that time, then divide the lost customers by the total acquired, and multiply by 100%. That is Churn Rate – (Lost Customers ÷ Acquired Customers) x 100%.
Cross-functional Teams
Cross-functional teams are made up of workers from various parts of the company, like marketing, product, sales, and customer success. They can either be additional groups where each person is part of their original team and the cross-functional team, or they can form the main structure of the organization.
Employee Assessment
Employee assessments are evaluations used to check how well employees are doing their job. These tests look at things like personality, abilities, and skills. They help decide on pay raises, how to help employees do better, who might get a promotion, or if someone needs to leave the company. HRs use these assessments to help employees do better and to see if all activities with employees are in check.
Employee Onboarding
Employee onboarding refers to the first step of bringing new employees into a company – the paperwork, training while working, and helping them get used to how things are done in the company. This helps new hires become good team members who contribute well. Onboarding doesn’t just happen on the first day, it can go on for weeks or even months.
Exit Interview
An exit interview is like a chat that happens when someone leaves a job, whether they chose to leave or were asked to. It’s usually done by the boss or HR. They ask about the departing employee’s time at the job, why they’re leaving, what they liked, and how things could be better. This helps the company understand why people leave and what they can do to improve.
Gratuity
Gratuity is a reward that an employer gives to their employee for the work they did while working for the company. Normally, it’s given when the employee retires, but sometimes it can be given earlier if certain rules are followed. To get gratuity, a person needs to work at least five years in the company. However, if someone passes away or becomes disabled because of an accident or illness, they might receive it even if they haven’t completed five years.
Gloss Salary
The gross salary is the money an employee gets paid before any taxes or deductions are taken out. It’s the total amount earned by the employee in a month or a year. The gross salary lets the employee check if their pay is competitive compared to others in the same industry. It also shows how much the employee can afford for things like loans or other payments.
Key Performance Indicator
A Key Performance Indicator (KPI) is a measurable number showing how well a company is meeting its main goals. These KPIs are used at different levels to check how successful the company is at hitting its targets. Some KPIs look at the overall company performance, while others focus on specific tasks within departments like sales, marketing, HR, support, and more. Even as an employee within the company, you can have a KPI to meet.
Payroll
Payroll is the money a company needs to pay its employees for their work during a specific time. It’s handled by the accounting or HR department in larger businesses, while in smaller ones, it’s managed by the owner or someone they work with. Payroll can also mean the list showing how many employees a business has and how much each of them should be paid.
People Operations
People Operations involves handling employees, their work, and skills in a company. It concentrates on growing and keeping the best employees in the company. It’s a newer way of looking at HR, where employees are seen as valuable individuals who should have a say and be treated openly in the company.
Probationary Period
A probationary period is a set time when employees and employers can check if they’re a good match. During this time, certain rules, like how much notice is needed before leaving the job, might not apply. It helps both sides see if they want to continue working together, and this period can be different lengths depending on the company and industry, usually lasting between 3 months to a year.
There are several other HR terms that you will most likely come across but we are certain that these would come in handy too.
Careers in HR and their Roles in an Organization
Human Resources (HR) plays a crucial role in any organization by managing the employee lifecycle and contributing to strategic business goals. Here’s a list of common HR roles and their explanations:
Recruitment Specialist
This individual focuses on attracting and selecting qualified candidates to fill job vacancies within an organization. They are responsible for creating job descriptions, posting job openings, screening resumes, conducting interviews, and extending job offers to candidates.
HR Generalist
The HR Generalist is responsible for handling a wide range of human resource tasks within a company. This can include everything from recruitment and onboarding to employee relations, performance management, training, and benefits administration.
Training and Development Manager
This individual is tasked with designing and implementing training programs to enhance the skills and knowledge of employees within an organization. They may conduct needs assessments, develop training materials, and evaluate the effectiveness of training initiatives.
Compensation and Benefits Manager
This role involves developing and managing employee compensation and benefits packages. This can include conducting salary surveys, administering benefits programs, and ensuring compliance with regulations related to compensation.
Employee Relations Manager
The Employee Relations Manager is responsible for addressing employee grievances, promoting a positive work culture, and implementing strategies to enhance employee engagement and retention.
Talent Acquisition Manager
This individual is responsible for strategically sourcing talent to meet the long-term goals and objectives of the organization. They may utilize various recruitment methods, build relationships with potential candidates, and develop talent pipelines.
HR Director
The HR Director is a senior-level executive who leads the HR department and ensures that HR strategies align with the overall business objectives of the organization. They may be involved in strategic planning, policy development, and overseeing HR operations.
HR Consultant
An HR Consultant provides expert advice and guidance on HR practices and policies to improve organizational efficiency and effectiveness. They may be brought in to assist with specific HR projects, provide training, or conduct audits of HR practices.
Change Management Specialist
This individual guides organizations through changes in structure, culture, or processes. They may develop change management plans, identify potential resistance to change, and support employees through transitions.
Occupational Health and Safety Officer
This role involves ensuring that the workplace is safe and compliant with health and safety regulations. This individual may conduct safety inspections, investigate accidents, and develop safety training programs for employees.
HR Business Partner
The HR Business Partner works closely with business unit leaders to align HR strategies with the goals and objectives of the organization. They may provide HR support, develop talent management strategies, and facilitate communication between employees and management.
Labour Relations Specialist
This individual manages relationships with labor unions, negotiates collective bargaining agreements, and represents the organization in labor disputes. They may also advise on labor laws and regulations.
HR Project Manager
The HR Project Manager oversees specific HR projects, ensuring that they are completed on time and within budget. This individual may be responsible for coordinating project teams, developing project plans, and monitoring project progress.
Talent Development Specialist
This individual focuses on identifying and nurturing high-potential employees within the organization. They may create talent development programs, provide coaching and mentoring, and help employees reach their full potential.
HR Analytics Specialist
This individual analyzes HR data to identify trends and make informed decisions related to HR practices and policies. They may use data to improve recruitment strategies, enhance employee performance, and increase employee retention.
Global HR Manager
The Global HR Manager is responsible for managing HR practices across different countries, considering cultural and legal differences. This individual may develop global HR policies, coordinate international assignments, and ensure compliance with local labor laws
.These roles can vary in their specific duties and importance depending on the size and type of the organization. It’s also worth noting that as the field of HR evolves, new roles may emerge, particularly in areas related to technology, analytics, and employee experience.
