A
Abilene Paradox
Sometimes, a group ends up going along with a decision that most people in it don’t actually agree with. It mostly happened because no one wants to speak up or disagree openly.
Absenteeism
When someone regularly skips work without informing the designated authority, it is known as absenteeism.
Absconding
When an employee suddenly stops coming to work without telling anyone or getting permission. It is basically walking away from the job without notice.
Absenteeism Policy
A company’s rule about being present at work. It answers questions like – how to report if you are going to be absent, what counts as acceptable leave, and what happens if you miss work too often.
Affirmative Action
These are steps taken to ensure people from underrepresented or historically excluded groups get fair chances in hiring, promotions, and training.
Accruals (Leave Accruals)
Paid leaves (like vacation or sick days) that employees slowly earn over time, based on how long or how much they have worked.
Acquihire
When a company buys another mainly to bring in its team and talent, not necessarily for its products or services.
Agile HR
A modern way of handling HR tasks where flexibility, teamwork, and quick, value-driven changes are the focus. This concept is inspired by Agile methods used in Tech.
Applicant Tracking System
A tool that helps companies sort through job applications, track candidates, and manage the hiring process more smoothly.
Appraisal (Performance Review)
A regular check-in where an employee’s work is reviewed. It covers what they did well, what needs work, and future goals.
Attrition Rate
A number that shows how many people have left a company (for any reason) over a certain time, usually given as a percentage.
Appraisal Letter
A formal note from the company that comes after a performance review, summarizing how an employee did and what’s next for them.
B
Background Check
A way for employers to confirm someone’s personal and professional history, like their job record, education, or criminal background.
Balanced Scorecard
A tool managers use to track how well a business is doing, not just financially, but also in terms of customer satisfaction, internal processes, and employee development.
Base Salary
The regular fixed pay an employee earns for their job, before things like bonuses or benefits are added.
Behavioral Competency
Key soft skills and actions like teamwork, communication, or problem-solving that help someone succeed in their role.
Behavior-Based Interview Questions
Questions in interviews that ask about real-life situations from the past to understand how someone might handle similar challenges in the future.
Benefits
Extra perks or support given to employees beyond their salary, like health insurance, retirement plans, or paid time off.
Blended Workforce
A mix of full-time staff and others, like freelancers, part-timers, or contractors, all working together to meet a company’s needs.
Bona Fide Occupational Qualification (BFOQ)
A legal exception that allows certain jobs to have specific hiring requirements (like gender or religion) when it’s truly necessary for the job.
Bonus
Extra money given to employees as a reward for good work, meeting targets, or helping the company succeed.
Boomerang Employees
People who leave a company but later come back to the same company to work again.
Bradford Factor
A system some companies use to measure employee absenteeism, frequent short absences are given more weight than to longer leaves.
Broadbanding
A pay system with wider salary ranges that gives more flexibility in setting pay and helps employees grow in their roles.
Bring Your Own Device (BYOD)
A workplace policy that lets employees use their personal phones or laptops for work tasks.
C
Campus Recruitment
Hiring fresh graduates directly from colleges or universities for entry-level job roles.
Candidate Experience
How a job seeker feels about the entire hiring process, from the first contact to getting hired or rejected.
Change Management
It is the strategic approach to help people adjust when a company changes its goals, tools, or ways of working.
Compensation
Everything an employee gets in return for their work, like salary, bonuses, and benefits.
Compliance (HR)
Making sure the company follows all labor laws and internal rules related to hiring, pay, safety, and more.
Confidentiality
Keeping private information like employee details or performance issues secure and protected.
Contingent Worker
Someone hired for a short time or a specific project, like a freelancer, independent contractor, consultant, or temporary employee.
Core Values
The key belief and principle that guides how a company and its people behave.
Cost-Per-Hire
The average amount of money spent to hire one new employee, including ads, agency fees, and onboarding.
Cross-Functional Team
A team made up of people with different skills working together on a shared goal.
Company Culture
The shared way people in an organization think, behave, and work together.
Culture Fit
Hiring someone whose personality and values match how the company already works.
D
Deferred Compensation
These are the earnings an employee gets later, like after retirement. It includes things like a pension or stock options.
Direct Deposit
Paying an employee by sending their salary straight to their bank accounts.
Direct Reports
These are the employees of an organization who report directly to a manager or supervisor.
Disability Leave
Time off is given to employees when they cannot work due to illness or injury.
Disciplinary Action
Steps taken by a company to correct bad behavior or poor performance. It could be a warning or even termination.
Discrimination
Treating people unfairly based on things like race, gender, age, or religion.
Disparate Treatment
When someone is treated unfairly on purpose because of their background or identity.
Diversity, Equity & Inclusion (DEI)
Creating a workplace where everyone is respected, treated fairly, and has equal chances to grow.
- Diversity: Including people from different backgrounds and experiences.
- Equity: Making sure everyone has what they need to succeed, not just treating everyone the same.
- Inclusion: Making sure everyone feels welcome, heard, and involved.
Due Diligence
Doing a detailed check before making big decisions like hiring someone or changing a policy.
E
Employee Assistance Program
A workspace support system that helps employees deal with personal issues like stress, relationships, money, or substance use that might be affecting their work.
Employee Empowerment
A way of working where employees are trusted to make decisions and take ownership of their tasks, with the right tools and support to do so.
Employee Engagement
How emotionally connected and committed someone feels to their job and company. Engaged employees usually care more, work better, and stick around longer.
Employee Lifecycle
The journey an employee takes with a company, from being hired, trained, and developed to eventually leaving the organization.
Employee Referral Program
A hiring approach where existing employees suggest people they know for open roles, sometimes earning a reward if their referral gets hired.
Employee Relations
The way a company handles its interactions with employees. It includes solving conflicts, promoting fairness, and creating a healthy work culture.
Employee Satisfaction
How happy and content employees feel with their job, team, and the overall work environment.
Employee Self-Service
An online system where employees can handle tasks like checking pay slips, updating details, or applying for leave without HR help.
Employee Turnover
The number of employees leaving a company over time. When it’s too high, it can hurt productivity and increase hiring costs.
Employer Branding
How a company is seen as a place to work. A good reputation makes it easier to attract and keep great talent.
Employment Contract
A written agreement between the company and the employee that mentions the job role, pay, work terms, and conditions for leaving the job.
Equal Employment Opportunity
The principle that everyone should have a fair shot at jobs and promotions, no matter their background, gender, race, age, or other personal traits.
F
Flexible Work Options
Ways of working that aren’t limited to the usual 9-to-5 office setup. This could mean working from home, choosing your hours, working fewer but longer days, or sharing a job with someone else.
Fringe Benefits
Non-cash rewards given by employers, like a free gym pass, meal discounts, help with education fees, or even a company car.
Full-Time Equivalent (FTE)
A way to measure how much someone works. If someone works full time, their FTE is 1.0 full stop. If they work half the hours, it’s 0.5.
G
Garden Leave
When an employees ask not to come to work during their notice period, but still gets paid. It’s usually done to prevent them from accessing sensitive information before they officially leave.
Gratuity
A one-time thank-you payment from the company, usually given when someone retires or leaves after many years of service.
Grievance
A formal complaint by an employee about something wrong at work, like being treated unfairly or facing unsafe conditions.
H
Harassment
When someone is treated badly at work because of things like their race, gender, religion, disability, etc. It becomes a serious issue if it affects their ability to do their job or makes the workplace feel threatening or toxic.
Headcount Planning
Analyzing how many people the company has now and how many it will need in the future, making sure the right people with the right skills are in the right roles.
Headhunter
A recruiter who finds top talent, especially for senior or specialized roles.
Health Reimbursement Account (HRA)
A fund set up by an employer to help employees get money back for certain medical costs.
Health Savings Account (HSA)
A personal account where you can save money (tax-free) to use for medical bills. It is usually tied to a high-deductible health plan.
Holiday Pay
It is an extra pay or regular pay given for official holidays, depending on the company policy.
Hourly Employee
Someone who gets paid based on how many hours they work.
HR Analytics
Using data to understand what is working in the workplace. From hiring and retention to performance and engagement.
HR Audit
A regular check-up on HR practices to make sure everything is legal, fair, and aligned with company goals.
HR Business Partner (HRBP)
An HR professional who works closely with team leaders to support their goals through smart people strategies.
Human Capital
The combined skills, talent, and experience that employees bring. It is seen as one of the most valuable things a company has.
Human Capital Management (HCM)
A way of managing people that goes beyond basic HR. It includes tools and strategies to help grow and support employees.
Human Resources Information System (HRIS)
Software that helps the HR team stay organized, from tracking employee information to handling payroll and benefits.
I
Imputed Income
This is the value of extra perks an employee gets, like using a company car for personal errands or certain insurance benefits. It counts as taxable income.
Incentive Pay
Extra money given to employees for going above and beyond, like hitting targets or bringing in more sales. It includes things like bonuses or commissions.
Independent Contractor
Someone who works for a company but is not an employee. They are usually self-employed, work on their, work on their own terms, and do not get company benefits or tax deductions from their pay.
Induction
The first few days of an employee, when a new hire is introduced to the team, their role, and how things work in the company. It is the starting point of their onboarding.
Informal Communication
Casual chats or talks that happened naturally between coworkers, like hallway conversations, lunch discussions, etc.
Insubordination
When an employee refuses to follow a reasonable order or instruction from their supervisor.
Internal Equity
Whether employees feel they are being paid fairly compared to others in similar roles within the same company.
Internship
A short-term work experience, usually for students or recent graduates, that helps them learn the basics of a job or industry.
J
Job Analysis
Studying a job closely to understand what it involves, including tasks, skills, and responsibilities. It helps with hiring, setting pay, and measuring performance.
Job Description
A document that clearly lists what a job involves, like duties, who the person reports to, and what skills are needed.
Job Evaluation
A way to figure out how valuable different jobs are in a company, so pay can be set fairly across roles.
Job Posting
An announcement (online or internal) that a company puts out when a role is open, describing what the job is and how to apply.
Job Requisition
A formal request from a manager to HR asking to hire someone for an open or new role.
Job Shadowing
When someone follows an experienced worker around for a day or two to learn what their job is really like,
K
Key Performance Indicator (KPI)
A measurable number that shows how well someone or a company is doing. In HR, this could mean things like how fast roles are filled or how many employees stay long-term.
Knowledge, Skills, and Abilities (KSAs)
The mix of what someone knows, what they can do, and what they are naturally good at. These are often used in job descriptions and selection processes.
L
Lateral Hiring
Bringing in experienced professionals from other companies for specific or high-level roles, especially those not actively job hunting.
Layoff
When a company lets go of employees, temporarily, or permanently, usually to cut costs or restructure.
Leadership Development
Training and activities that help current or future leaders become more confident and skilled in guiding teams.
Learning Management System (LMS)
A digital tool used by companies or schools to manage training, track progress, and deliver learning content.
M
Management by Objective (MBO)
A goal-setting approach where employees and managers set clear targets together and track progress based on results.
Management Styles
Different ways managers lead their teams, like collaborative or highly involved. It is often based on their personality and work culture.
Mean Wage
The average salary earned by workers in the same role over a certain time.
Mentoring
A more experienced person guides someone newer by sharing advice, knowledge, and real-world tips.
Merit Pay
It is an extra pay given to employees who meet or exceed their work targets.
Micromanagement
A controlling leadership style where the manager closely monitors every small detail of an employee’s work.
N
Nepotism
Giving jobs or promotions to family members regardless of qualifications.
Net Salary
The actual amount you take home after taxes and deductions from your paycheck.
Non-Disclosure Agreement (NDA)
A legal agreement to keep certain information private and not share it with outsiders.
Non-Compete Clause (NCA)
A rule in some job contracts that stops employees from joining competing companies for a certain time after leaving.
Notice Period
The length of time an employee or employer must give before terminating the job.
O
Occupational Stress
Work-related stress that affects an employee’s health and productivity, often caused by workload, environment, or conflicts.
Offer Letter
A formal letter from an employee confirming a job offer and sharing key details like start date and pay.
Offshoring
Moving parts of a company’s work to another country, often to save money on operations.
Objectives and Key Results (OKR)
A goal-setting method that helps teams stay aligned and track progress with clear and measurable outcomes.
Onboarding
Helping new hires settle into their job and the company by introducing them to people, tools, and company culture.
Organization Culture
The shared values, habits, and behavior that shape how things work in a company.
Organizational Development
Efforts are made to improve a company’s overall performance through planning, training, and change management.
Orientation
A welcome process for new employees where they learn about the company, their role, and who they will be working with.
Outsourcing
Hiring outside firms or individuals to handle certain business tasks instead of doing them in-house.
P
Performance Management
A way for managers to regularly track and improve how well employees are doing their jobs.
Pre-employment Testing Software
It helps companies test and shortlist job candidates before hiring.
Probation
A trial period where new employees are not given full benefits or contracts while the company evaluates them.
Psychometric Test
A test that helps understand a candidate’s personality, thinking style, and behavior.
Payroll
A record of employee hours, salaries, and payments managed by the employer.
People Analytics
Using employee data to see how people contribute to company goals and improve HR decisions.
People Operations
The team or process that manages employees, from hiring to growth and retention.
Performance Appraisal
A regular review of how well an employee is doing their job.
Performance Improvement Plan (PIP)
A structured plan to help employees improve if they are not meeting expectations.
Performance Planning
Setting clear goals and expectations for employees to align their work with company objectives.
Probationary Arrangements
The terms are set for a new hire during their initial trial period.
Q
Quality Management
A system that ensures products or services meet high standards and are delivered through efficient processes.
Queen Bee Syndrome
When senior women in power treat other women at work unfairly, often to protect their own position.
R
Recruitment
It is the process of finding and hiring the right person for a job.
Reference Check
Contacting a candidate’s previous employers or institutions to learn more about them.
Resume Parsing
It is the process of using technology to quickly read, sort, and understand resumes.
Returnship
A short-term job program for people returning to work after a career break.
Rewards and Recognition
Appreciating employees for their efforts and achievements, either publicly or through incentives.
Relieving Letter
A formal document given when someone leaves a job, which confirms their exit from the company.
Remuneration
Salary and other benefits, given to employees for their work.
Request for Proposal (RFP)
A document used by companies to ask potential vendors for service details and pricing.
Retention Strategy
The plans companies use to keep good employees and reduce employee turnover.
Reverse Mentoring
When younger employees guide or coach senior staff, usually in areas like tech or trends.
Right to Manage
The authority managers have to run a business as they see fit.
Roster Management
Organizing employee work schedules to ensure smooth operations.
Rotational Training
Training employees by letting them work in different roles to gain broader skills.
S
Sabbatical Leave
A long break from work, either paid or unpaid, is usually given after several years of service. It can be used for rest, travel, studying, personal growth, etc.
Salary
A regular and fixed amount of money paid to an employee for doing their job, usually monthly or twice a month.
Selection Ration
A hiring measure that shows how many people were hired compared to how many applied for a job.
Severance Pay
Money given to employees when they are laid off, often based on how long they have worked at the company.
Sexual Harassment
Unwanted sexual behavior at work, like inappropriate comments, touching, or requests that make someone feel uncomfortable or affect their job.
Shift Differential
Extra pay for working late-night, weekend, or other less preferred shifts.
Sick Leave Pay
Wages are paid when an employee takes time off because they are sick or injured.
Soft Skills
People skills like good communication, teamwork, problem-solving, and adaptability. It is important for working well with others.
Staffing Plan
A plan that outlines how many employees a company needs, what roles to fill, and the skills required now and in the future.
Succession Planning
Preparing employees to step into important roles down the line by identifying and developing future leaders within.
T
Talent Acquisition
Another word for recruitment, the process of finding and hiring new employees.
Talent Management
The complete strategy for hiring, growing, and keeping great employees. This includes everything from onboarding to training and career development.
Team Building
Activities that help coworkers work better together by improving trust, communication, and collaboration.
Termination
When an employer ends someone’s job. This can happen because of poor performance, rule-breaking, or business dynamics.
Time-to-Fill
The number of days it takes from getting approval to hire someone to the day they accept the offer.
Tuition Reimbursement
When a company helps pay for an employee’s education, usually if the course relates to their work.
Turnover Rate
The rate at which employees leave and need to be replaced, also called attrition.
U
Unconscious Bias
These are hidden attitudes or stereotypes we might have about people or groups without even realizing it.
Unstructured Interview
An interview where there is no fixed list of questions. The conversation flows freely based on the candidate’s responses.
Upskilling
Learning new skills or helping employees grow their abilities to keep up with changing job needs.
V
Vacancy
An open role or job position that a company is looking to fill.
Variable Pay
Extra earnings that depend on how well someone performs at their job. Variable pay is often given as bonuses or incentives.
VIrtual HR
Digital tools and platforms that allow employees to manage their own HR-related tasks, like updating personal information or applying for leave.
Voluntary Benefits
These are the optional perks employees can choose and pay for themselves, like extra health coverage or gym memberships.
W
Wage
It is the money paid for the work you do, usually hourly, daily, or per task.
Wellness Programs
Company-run initiatives that support employees’ health, like fitness sessions, health check-ups, or mental health support.
Whiteboard Interview
A technical interview, often used for coding or engineering jobs, where candidates solve problems on a whiteboard in front of interviewers.
Whistle Blower
A person who speaks up about illegal or unethical practices happening within a company.
Work Life Balance
Managing your time so that work does not take over your personal life and vice versa.
Workforce Analysis
Looking at data about the company’s employees to understand skills, trends, and plan better for the future.
Workforce Planning
Preparing for future hiring needs by analyzing current staff and figuring out gaps or upcoming demands.
Workers’ Compensation
Insurance that supports employees if they get hurt on the job. It covers medical costs and lost wages.
Workweek
It is a full week used to track work hours, typically 7 days, or 168 hours, in total.
Wrongful Termination
When someone is fired for unfair or illegal reasons, like discrimination or without proper cause.
Y
Yield Ratio
This ratio shows how many candidates move forward from one step to the next in the hiring process.
Year to Date (YTD)
This means the period from the start of the year until today. In payroll, it usually refers to the total earnings or deductions added up so far.
This glossary gives you the basics of some common and important HR terms. Since HR keeps changing, new terms can come up over time.