Because human resource management can be as simple as ABC.
The Human Resource (HR) department is one often overlooked and frequently understated department in large organisations. Many assume that HR departments are all about managing employee benefits and keeping company engagement at an optimal level.
That being said, far-sighted leaders know how to leverage HR functions for the future. By developing thriving HR departments, organisations can achieve, or maybe even surpass lofty goals while keeping morale high within the ranks.
HR Terms 101
Like many sectors, the HR profession is filled with jargon and terms that seem to make sense only for those in the know. With so many terms in the HR vocab, where do you even begin? Here, we introduce to you 12 basic HR terms that will give you a foundational understanding of the business.
-
Attrition
When a company’s physical workforce is reduced, attrition refers to the rate of loss of employees over time. This can refer to voluntary or involuntary cessation of employment.
-
Blended Workforce
A company that is made up of a mixed team, which consists of full-time and part-time employees. The company may also work with third-party contractors and employees on fixed, short-term contracts.
-
Compliance
This is the general obligation of employees to business policies, and the business’ responsibility to operate within laws, regulations, and codes of practice.
-
Due Diligence
This ensures the accurate gauging of risk and potential benefits through a close investigation of the details of a merger, acquisition, or other major contractual arrangements.
-
Employment Contracts
A document outlining the different key aspects of employment, such as start and end date, employee benefits, and even termination clauses. Check out four common types of employment contracts here
-
Onboarding
As the process of bringing new employees into the company, onboarding refers to making an offer and acceptance of the employee, induction, and taking them through tasks such as payroll, tax, and compliance. The new employees may also undergo training to smoothly integrate with the company’s existing workforce.
-
PEO (Professional Employer Organisation)
This is a company that offers co-employment services, where two organisations have some legal responsibilities and oversight over the same employee.
-
Retention Strategy
To prevent employees from looking for alternative employment, a company comes up with business strategies and policies to encourage their employees to stay.
-
Strategic HRM
This ensures that the company’s goals are being met through alignment of company strategy and human resource management.
-
Talent Pooling
This is a database of potential candidates and the details of all who have expressed interest in working for the company. It simplifies recruitment procedures, since the company can first approach initially unsuccessful applicants before casting a wider net for hiring purposes.
-
360-degree Survey
A survey that measures an employee’s performance through feedback from multiple sources, such as self-appraisal and subordinate rating.
-
Hybrid workforce
Popularised by the COVID-19 pandemic, a hybrid workforce represents a group of employees that can work from their company’s workplace as well as remotely. A modern approach to work arrangements, progressive companies have begun seeking out hybrid work arrangements to entice employees to join their companies.
There are many more terms that HR professionals are expected to know to do their jobs well, but with our expertise here at AYP,
you can rest assured that you won’t ever have to worry about fumbling over complex HR terms, processes, and details.
