Human Resources

Employee engagement

A business management concept. An "engaged employee" is one who is fully involved in, and enthusiastic about their work, and thus will act in a way that furthers their organization's interests.

RSS (Real Simple Syndication)

A commonly used protocol for delivering web-based content such as blogs. RSS is an XML-based format that allows webmasters to provide fresh web content in a succinct manner. It is fast becoming an easy and affordable way to spread content.

Job evaluation

A comparison of one job with other jobs in a company for the purpose of assessing fair compensation.

Human Resource Outsourcing (HRO)

A contractual agreement between an employer and an external third-party provider whereby the employer transfers responsibility and management for certain HR, benefit or training-related functions or services to the external provider.

Change management

A deliberate approach for transitioning individuals or organizations from one state to another in order to manage and monitor the change.

ERISA (Employment Retirement Income Security Act)

A federal law that governs pension and welfare employee benefit plans.

Industrial relations

A field of study that examines the relationship between employer and employees, particularly groups of workers in unions.

Sensitivity training

A form of individual or group counseling geared toward increasing self-awareness of one's own prejudices and sensitivity to others.

Workers Compensation

A form of insurance to reimburse employees who are injured or contract an illness in the course of preforming their job, in exchange for mandatory relinquishment of the employee's right to sue his or her employer for the sort of negligence

Attrition

A gradual voluntary reduction of employees (through resignation and retirement) who are not then replaced, decreasing the size of the workforce.

Social Currency (online)

A measure of a person's power, or influence, within a defined social group. Factors contributing to one's social currency are their visibility, activity and following on social networks like Twitter, LinkedIn, Facebook, Blogs.

Observation interview

A method of assessing job requirements and skills by observing the employee at work, followed by an interview with the employee for further assessment and insight.

Job classification

A method of evaluation used for job comparisons, which groups jobs into a prearranged number of grades, each having a class description and a specified pay range.

Staffing

A method of finding, evaluating, and establishing a working relationship with future employees. They may be current employees or future employees.

Medical savings account (MSA)

A savings account funded by employees in which tax-deferred deposits can be made for use as medical expenses, co-payments, or deductibles.

Buzz Marketing

A viral marketing technique that attempts to make each encounter with a "prospect" appear to be a personal, spontaneous interaction instead of an obvious marketing pitch.

Talent Management

Also called Human Capital Management, the process of recruiting, managing, assessing, developing and maintaining employees.

Executive Compensation

Also called executive pay, compensation packages are specifically designed for executive-level employees that include items such as base salary, bonuses, perquisites and other personal benefits, stock options and other related compensation and benefit provisions.

Forced Ranking

Also known as a vitality curve, this is a system of work performance evaluation in which employees are compared against each other instead of against fixed standards. Based on the "20/80 Rule" idea, that 20 percent of employees do 80 percent of the meaningful, productive work, the top 20 percent of workers are rewarded and, oftentimes, the bottom 10 percent are fired.

Unfair labor practice (ULP)

An action carried out by an employer or union that violates the Federal Service Labor-Management Relations Statute, part of the National Labor Relations Act (NLRA), and would be investigated by the National Labor Relations Board (NLRB).

Gross misconduct

An action so serious that it calls for the immediate dismissal of an employee. Examples include fighting, drunkenness, harassment of others and theft.

Behaviorally anchored rating scale (BARS)

An appraisal that requires raters to list important dimensions of a particular job and collect information regarding the critical behaviors that distinguishes between successful and unsuccessful performance. These critical behaviors are then categorized and appointed a numerical value used as the basis for rating performance.

Training Needs Analysis

An assessment to determine the training needs of a group of employees, taking into account the employees' prior education and skills and the desired outcome once training is completed.

Fixed Term Employment

An employee agrees to work for a fixed term—until a certain date, at the completion of a project, etc.

360 Survey

An employee feedback program whereby an employee is rated by surveys distributed to his or her co-workers, customers, and managers. HR departments may use this feedback to help develop an individual's skill or they may integrate it into performance management programs.

Expatriate

An employee who is transferred to work abroad on a long-term job assignment.

Whistle blower

An employee who publicly reveals wrongdoing taking place within his/her company.

Agent (Insurance)

An employee who sells the products owned by the company, in contrast to a broker, who sells the insurance products of several companies. See Broker.

Total Remuneration

An employee's complete annual pay package, including benefit and pension plans, bonuses, incentives, and paychecks.

Constructive dismissal

An employer's behavior (either one serious incident or a pattern of incidents) creates a negative work environment, leading to an employee's resigning. Such behavior is considered a breach of contract and gives the employee the right to seek compensation in court.

EAP

An employer-sponsored program that is designed to assist employees whose job performance is being adversely affected by such personal stresses as substance abuse, addictions, marital problems, family troubles, and domestic violence. For every dollar invested in an EAP, employers save approximately $5 to $16. The average annual cost for an EAP ranges from $12 to $20 per employee. Source: US Department of Labor.

401-k Plan

An employer-sponsored retirement plan that has become an expected benefit and is therefore important in attracting and retaining employees.

Plan Sponsor

An entity that has adopted and has maintained an employee-benefit plan. The plan sponsor is often an employer, but may be a union or a professional association. The Plan Sponsor is responsible for determining employee participation and the amount of benefits involved.

Broker

An individual who acts as an agent for a buyer and a seller and charges a commission for his/her services. An example of a large brokerage firm is Marsh. An example of a state firm is ABD in California.

HR Generalist

An individual who is able to perform more than one diversified human resources function, rather then specializing in one specific function.

SPHR (Senior Professional in Human Resources)

An industry certification for people working in the human resource management profession, awarded by the Human Resource Certification Institute. It is the senior-most human resources certification for those who have also demonstrated a strategic mastery of the HR body of knowledge.

Alternate Dispute Resolution (ADR)

An informal process to resolve disputes where involving parties meet with a trained third party who assists in resolving the problem by arbitration, mediation, judicial settlement conferences, conciliation or other methods

Mentoring

An informal training process between a more experienced person and a junior employee.

Disease Management

An information-based process involving the continuous improvement of care (prevention, treatment and management) throughout the delivery of health care. Effective disease management can mean decreased health care costs.

Total quality management

An integrative philosophy of management for continuously improving the quality of products and processes. Practices and systems include: cross-functional product design, process management, supplier quality management, customer involvement, information and feedback, committed leadership, strategic planning, cross-functional training, and employee involvement.

Behavioral-based interview

An interview technique used to determine whether a candidate is qualified for a position based on their past behavior. The interviewer asks the candidate for specific examples from past work experience when certain behaviors were exhibited.

Contract of service

Another term for employment agreement.

Viral Marketing

Any marketing technique that induces people (or web sites) to pass on a marketing message to other people or sites, creating a growth in the message's visibility and effect.

Industrial Psychology

Applied psychology concerned with the study of human behavior in the workplace and how to efficiently manage an industrial labor force and problems encountered by employees.

Agile Organization

Applied to an organization that has created the processes, tools, and training to enable it to respond quickly to customer needs and market changes while still controlling costs and quality.

Per Diem

Payment per day

Gag clause

Refers to the employment contract restrictions used as a means of protecting the organization's trade secrets or proprietary information.

Deregulation

The removal or revision of laws that regulate the supply of goods and services.

Minority business enterprise

A business which is at least 51% owned, operated and controlled on a daily basis by one or more African American, Asian American, Hispanic American, or Native American citizens.

Mission Statement

A description of an organization's purpose: what it does, what markets it serves and what direction it is going in.

Suspension

An employee is sent home for a period of time, usually without pay, as a disciplinary measure.

Negotiation

Bargaining between two or more parties with the goal of reaching consensus or resolving a problem.

Outsourcing

Contracting out non-core functions, such as payroll, benefits administration or manufacturing, to save money and focus on what the company does best.

Payroll

Documentation created and maintained by the employer containing such information as hours worked, salaries, wages, commissions, bonuses, vacation/sick pay, contributions to qualified health and pension plans, net pay and deductions.

Redundancy

Eliminating jobs or job categories as they become unnecessary to the functioning of an organization.

Random Testing

Employer-administered drug and alcohol tests conducted at random intervals.

Labor law posting

Federal and state regulations requiring employers to post in conspicuous places a variety of labor law posters with information regarding employee rights

General Agents

General agents are middleman for carriers and brokers and usually focus on the 250 employee market. Usually an individual appointed by a life or health insurer to administer its business in a given territory. GAs are important for companies who sell to small employers or brokers e.g., benefits administration software providers.

Due diligence

In mergers and acquisitions, the process of carefully investigating the details of an investment or purchase to assess risk and potential value and reward.

Labor certification

Labor certification is a statement from the U.S. Department of Labor (DOL) that a particular position at a particular company is "open." It is the first step in the process of obtaining a green card.

Pay-Per-Impression

Online advertising payment mode in which payment is based on how often the "publisher" (e.g., web site where you purchase a banner ad) shows your banner ad on their web site (e.g., an "impression"). Typically, prices are set per one thousand exposures.

Pay-Per-Click (PPC)

Online advertising payment model in which payment is based on qualifying click-throughs. A typical PPC agreement has the advertiser paying for clicks to the destination site based on a prearranged per-click rate. Popular PPC advertising options include search engines (right sidebar on Google). Paying per click is different than paying per impression which generates lower-quality traffic/leads.

Affirmative action

Proactive policies aimed at increasing the employment opportunities of certain groups (typically, minority men and/or women of all racial groups).

Branding

Promoting a product or service by identifying and then marketing its key differentiators from competitors. The differentiator/s often inspire the name, phrase or logo for which the product or service becomes known.

Direct Marketing

Sales method by which advertisers approach buyers directly with products or services. The most common forms of direct marketing are telephone sales, emails and print (e.g., catalogs, brochures).

Compensatory time-off plan

The practice of giving employees paid time off that can be used in the future in lieu of paying them overtime for hours worked in excess of 40 per week.

Mediation Services

The use of a trained third party to settle an employment dispute. The third party has no legal authority and so must use persuasion to settle the dispute.

Risk Management

The use of insurance and other strategies to minimize an organizations exposure to liability in the event a loss or injury occurs.

Job Accommodation Network (JAN)

To facilitate the employment and retention of workers with disabilities by providing employers and people with disabilities with information on job accommodations, entrepreneurship, and related subjects.

Dual Labor Markets

a situation in an organization where a smaller Core Labor Force and a Peripheral Labor Force co-exist.

Learning Management Software and Systems:

A software platform for businesses and organizations designed to train and educate employees.

Replacement charts

A tool in succession planning in which current and future job vacancies, as well as the number of employees in currently filled jobs, are visually summarized.

Individual employment agreement

A written document that describes the legal relationship between an employer and employee.

Contract for services

An agreement with a self-employed person for a specific job.

Job Board

An online location that provides an up-to-date listing of current job vacancies in various industries.

Tangible rewards

Gifts in the form of merchandise, gift certificates, etc. that can be physically held or touched.

Bereavement leave

Paid or unpaid time off following the death of an employee's relative or friend. This time, generally ranging from one to three days, is given so that the employee can make arrangements, attend the funeral and attend to other matters related to the deceased. Many organizations are flexible in terms of how much time an employee takes off.

Americans With Disabilities Act (ADA)

Prohibits discrimination against someone with a disability, defined as "a physical or mental impairment that substantially limits a major life activity."

Flexible Work Arrangements

Schedules that allow employees to structure their work hours around their personal responsibilities.

ERP

Short for enterprise resource planning, a business management system that integrates all facets of the business, including manufacturing, sales, marketing, finance and human resources.

Contingent Staff

Temporary staff that supplements a companys workforce. Contingent staff may be hired through a staffing firm. Businesses that have fluctuating seasonal staff demands or are in need of temporary call center representatives often use contingent workers.

KSAs

The Knowledge, Skills and Abilities an employee needs to meet the requirements of a job.

Human Capital Management

The challenge of recruiting and retaining qualified candidates, and helping new employees fit into an organization.

Diversity

The collective mixture of differences and similarities that may include: individual and organizational characteristics, values, beliefs, experiences, backgrounds, preferences and behaviors.

Cost-Per-Hire

The costs linked to recruiting talent. These costs can include advertising, agency fees, relocation costs, and training costs.

Wage drift

The difference between basic pay and total earnings, due to a variety of possible factors such as overtime, bonuses, gender, age and performance.

Discrimination

The favoring of one group of people, resulting in unfair treatment of other groups.

Summary dismissal

The immediate firing of an employee, usually due to an act of gross misconduct.

Job analysis

The process of gathering information about the requirements and necessary skills of a job in order to create a job description.

"Non-Traditional" versus "Traditional" Employee Benefits

Traditional benefits include life, retirement, health, and disability benefits. Non-traditional benefits include various types of life management benefits such as EAPs, child and elder care counseling and referral, etc.

Diversity Training

Training for the purpose of increasing participants' cultural awareness, knowledge, and skills, which is based on the assumption that the training will benefit an organization by protecting against civil rights violations, increasing the inclusion of different identity groups, and promoting better teamwork.

Myers-Briggs Type Indicator (MBTI)

A well-known personality type assessment designed to measure people's psychological preferences.

Blended workforce

A workforce is comprised of permanent full-time, part-time, temporary employees and independent contractors.

Strategic HRM

Aligning human resource management (HRM) with the strategic goals of an organization.

Confidentiality agreement

An agreement between an employer and employee in which the employee may not disclose proprietary or confidential information.

Probationary Arrangement

An agreement between an employer and employee that the employee will work for a set amount of time on a trial or probationary period.

Goal Setting

Assigning specific, attainable goals to a person, team or organization. Goal setting is a motivational technique, as workers often rise to the challenges given them.

XML and HR-XML

Extensible Markup Language. A common system used for defining data. Unlike HTML, XML is not a fixed set of elements. XML allows information creators to apply descriptive markup (or "tags") around each discrete element of data. The HR-XML Consortium strives to spare employers and vendors the risk and expense of having to negotiate and agree upon data interchange mechanisms on an ad-hoc basis. By using XML, the Consortium provides the means for any company to transact with other companies without having to establish, engineer, and implement many separate interchange mechanisms.

Social Media

Forms of electronic communication (as Web sites for social networking and microblogging) through which users create online communities to share information, ideas, personal messages, and other content (as videos).

Long-term care insurance

Helps provide for the cost of long-term care beyond a predetermined period, and is generally not covered by health insurance, Medicare, or Medicaid.

Volunteerism

How a company supports an employee who wishes to volunteer or otherwise offer unpaid services to a community organization, often by providing paid leave of sponsorship.

Collective Bargaining

One or more unions meeting with representatives from an organization to negotiate labor contracts.

Benefits Administration

Software that helps companies manage and track employee participation in benefits programs such as healthcare, flexible spending accounts, pension plans, etc. This software helps automate and streamline the complex and otherwise time-consuming tasks of benefits administration.

Transitional employment

The arrangement of lessened or altered duties for an employee who has been absent from the workplace because of illness or injury, but has been given leave by their medical provider to return.

Base Wage Rate (or base rate)

The monthly salary or hourly wage paid for a job, irrespective of benefits, bonuses or overtime.

Blog

A Web log written for and posted to the Internet using such software as www.blogger.com. Readers access the blog through the Web (e.g., http://hrmarketer.blogspot.com/) or subscribe to the blog's RSS (Really Simple Syndication) feed and receive alerts when there is a new posting. Blogs are becoming increasingly important to HR suppliers in order to increase their company's visibility, communicate with customers, and promote their products or services to establish themselves as thought leaders.

Outplacement

A benefit offered by a downsizing employer to assist former employees in re-entering the job market. Assistance can include job training, resume workshops, interview practice and career counseling.

Peer appraisal

A performance assessment given by an employee's peers who have observed the employee's job performance.

Affirmative Action Plan (AAP)

A written set of specific, results-oriented procedures to be followed.

Condition of employment

An organization's policies and work rules that employees are expected to abide by in order to remain continuously employed.

Benefits (benefits package)

Benefits are a form of compensation paid by employers to employees over and above the amount of pay specified as a base salary or hourly rate of pay. Benefits are a portion of a total compensation package for employees.

Functional job analysis

Developed by the U.S. Department of Labor, functional job analysis is a method of gathering specific and detailed job information. This information can be used to write job descriptions.

Employee Relations

Developing, maintaining, and improving the relationship between employer and employee by effectively and proactively communicating with employees, processing grievances/disputes, etc.

Unjustifiable dismissal

Firing an employee in a way that the courts do not find justifiable (i.e. unfairly or in violation of the employment contract).

Retention Strategy

In order to retain employees and reduce turnover managers must meet the goals of employees without losing sight of the organization's goals, utilizing valence and expectancy theories.

Incidence rate

Indicates the number of workplace injuries/illnesses and the number of lost work days per 100 employees.

Orientation

Introducing new hires to the organization and its policies, benefits and culture. Training and familiarization with each department are sometimes included.

Supplemental Unemployment Benefits (SUB)

Pay benefits which are taxable payments that form a fund, which can be combined with state unemployment insurance benefits

Compensation

Pay structures within an organization. It can be linked to employee appraisal. Compensation is effectively managed if performance is measured adequately.

OSHA

The Occupation Safety and Health Administration, an agency of the U.S. Department of Labor. The agency's goal is to promote health and reduce accidents, injury and death in the workplace.

Behavioral risk management

The process of analyzing and identifying workplace behavioral issues and implementing programs, policies or services most suitable for correcting or eliminating various employee behavioral problems.

Strategic Planning

The process of considering an organization's future, usually three to five years ahead, and then working backward to create strategic plans and allot resources to realize this desired future state. This includes a hiring strategy.

Recruitment

The process of finding and hiring the best-qualified candidate for a position.

Succession Planning

The process of identifying long-range needs and cultivating a supply of internal talent to meet those future needs. Used to anticipate the future needs of the organization and assist in finding, assessing and developing the human capital necessary to the strategy of the organization.

Onboarding

The process of moving a new hire from applicant to employee status ensuring that paperwork is done, benefits administration is underway, and orientation is completed.

SEO (Search Engine Optimization)

The process of optimizing a web site (e.g., identifying and placing targeted keywords on web pages) to ensure the site places well when queried on search engines. It is important for corporate web sites to optimize their visibility on search engines. See http://hrmarketer.blogspot.com/2005/04/seo-industry-gold-rush-or-fools-gold.html .

Geographical differential

The variance in pay established for same or comparable jobs based on variations in labor and costs of living among other geographic regions.

Group dynamics

The way that people interact within a group that determines how it functions and how effective the group is.

Matrix organization

Used primarily in the management of large projects, a horizontal authority structure in which teams are created from various departments and report to more than one boss.

Performance Improvement

A plan to improve an employee's performance in which the performance problem is identified, modified and monitored.

Pareto chart

A quality assurance tool that ranks information, like reasons for certain problems, in descending order. The goal is to identify the most serious problems so improvements can be made.

Intangible rewards

A subjective benefit that has no monetary value, such as praise for excellent performance.

Severance Pay

After an employee is let go, they receive compensation, usually in monetary from

Indirect compensation

Compensation that is not paid directly to an employee and is calculated in addition to base salary and incentive pay (i.e., health/dental/vision insurance, vacation, retirement benefits, educational benefits, relocation expenses, etc.).

Deferred compensation

Payment for services under any employer-sponsored plan or arrangement that allows an employee (for tax-related purposes) to defer income to the future.

Equity theory

The idea that people desire to be treated fairly and thus compare their own contributions to the workplace—and resulting rewards—against those of their coworkers, to determine if they are being treated fairly.

Health care flexible spending account (FSA)

A benefit plan designed to allow employees to set aside pre-tax dollars to pay for eligible medically related expenses, such as medical, vision or dental exams, copays and deductibles, as well as other out-of-pocket expenses.

Six Sigma

A disciplined, data-driven methodology used to improve the quality of process outputs by identifying and removing the causes of defects and minimizing variability in manufacturing and business processes. It also cuts costs from manufacturing by creating a special infrastructure of people that are experts in these methods.

Summary plan description

A document that explains the fundamental features of an employer's defined benefit or defined contribution plan, including eligibility requirements, contribution formulas, vesting schedules, benefit calculations, distribution options, participation, coverage and employee rights

Developmental counseling

A form of shared counseling where managers or supervisors work together with subordinates to identify strengths and weaknesses, resolve performance-related problems and determine and create an appropriate action plan.

O*Net (Occupational Information Network)

A free online database that contains thousands of occupational definitions to help match job seekers with jobs, which is administered and sponsored by the U.S. Department of Labor's Employment and Training Administration.

Labor Market

A geographical region (local, national or international) in which labor transactions occur—employers find workers and workers find work.

Self-Funded (Self-Insured) Plan

A health care insurance program in which employers (usually larger companies) pay the specified health care costs of their employees rather than insuring them. Self-funded plans may be self-administered, or the employer may contract a third party administrator (TPA) for administrative services only (ASO).

Managed Care

A health care system in which the provider manages the care of the individual for a fixed fee. The opposite of this preventive intervention (or, population-based) approach is fee-for-service. Managed care emphasizes wellness and prevention.

Benchmark Job

A job commonly found in the workforce for which pay and other relevant data are readily available. Benchmark jobs are used to make pay comparisons and job evaluations.

Johari Window

A leadership disclosure and feedback model used primarily in self-help groups and corporate settings as a heuristic exercise which can be used in performance measurement and features the four quadrants (windows) of "knowing."

Open-book management

A management strategy emphasizing employee empowerment and individual impact on the success of the company by making the organization's financial data available to all employees so they can make better decisions as workers.

Situational leadership

A management theory stating that effective leadership varies, but is task-relevant, and the most successful leaders are those that adapt their leadership style to the maturity of their audience.

LIFO (Last In, First Out)

A method of determining who should be laid off in which the most recent hires are laid off first.

Coaching

A method of training an individual or group in order to develop skills or overcome a performance problem.

Distributive bargaining

A negotiation between competing parties that involves the distribution of resources. One party prevails, to the detriment of the other.

Systemic discrimination

A pattern of discrimination that permeates workplace practices, and is not apparent at first glance, but is actually systematic in its application of policies and practices.

Broadbanding

A pay structure that exchanges a large number of narrow salary ranges for a smaller number of broader salary ranges. This type of pay structure encourages the development of broad employee skills and growth while reducing the opportunity for promotion.

Defined Contribution

A pension plan that clearly defines the amount of contributions, which is usually a percentage of an employees salary. The benefits payable at retirement depend on several factors including future investment return and annuity rate at retirement.

HR Audit

A periodic measurement of human resources effectiveness, conducted by internal staff or with the use of an HR audit system.

Performance Appraisal

A periodic review and evaluation of an individual's job performance.

Underwriter

A person or organization that ensures money will be available to pay for losses that are insured. An insurance company can be considered an underwriter.

Team building

A philosophy of job design which fosters teamwork to create a work culture that values collaboration.

Cafeteria Plan

A plan in which an employer offers employees a variety of different benefits. The employee is able to choose which benefits would fit their individual needs. Examples of benefits offered in the cafeteria include group-term life insurance, dental insurance, disability and accident insurance, and reimbursement of healthcare expenses.

Organizational Development

A planned organization-wide effort to improve and increase the organizations effectiveness, productivity, return on investment and overall employee job satisfaction through planned interventions in the organization's processes.

Absenteeism Policy

A policy about attendance requirements, scheduled and unscheduled time off, and measures for dealing with workplace absenteeism. Repeated absenteeism can lead to termination.

Equal employment opportunity (EEO)

A policy statement enforced by the Equal Employment Opportunity Commission that states that equal consideration for a job is applicable to all individuals, and that the employer does not discriminate based on race, color, religion, age, marital status, national origin, disability or sex.

Management by Objective (MBO)

A process of defining objectives within an organization so that management and employees agree on the overall goals and objectives for the organization.

Employee Self-Service

A program that allows employees to handle many job-related tasks normally conducted by HR departments including benefits enrollment, and updating personal information. Employees can access the information through the company's intranet, kiosks, or other Web-based applications.

Request for proposal (RFP)

A request sent by a company to a vendor to submit a bid for a product or service. The bid includes a timeline, a description of the good or service, the type of contract, cost and other specifics.

Good faith bargaining

A requirement of the Employment Relations Act of 2000 that all parties to a contract conduct negotiations with a willingness to reach an agreement on new contract terms.

Defined Benefit Plan

A retirement plan that pays participants a lump-sum amount that has been calculated using formulas that can include age, earnings and length of service.

Independent contractor

A self-employed person who works for another person or organization on a contract basis.

Competency Modeling

A set of descriptions that identify the skills, knowledge, and behaviors needed to effectively perform in an organization.

ISO 9000

A set of internationally-accepted standards for quality management and quality assurance.

Lump sum payment

A single large payment given to an employee, usually instead of more and smaller pay increases.

Applicant Tracking System (ATS)

A software application that began as a way to electronically handle recruitment needs but has since expanded to the entire employment life cycle. Onboarding, training and succession planning capabilities now exist, for example. An ATS can be implemented on an enterprise level or small business level, depending on the size and needs of the company. Applicant Tracking Systems may also be referred to as Talent Management Systems. An ATS saves time and increases efficiency and compliance for those tasked with managing human capital.

Professional Employer Organization (PEO)

A staffing service that is contracted to assume the employers responsibilities and risk for his/her workforce. Employees are legally co-employed by the PEO. The PEO is responsible for such actions as the preparation of accurate payroll checks, the remittance of payroll taxes to federal and state jurisdictions and the preparation of various tax information.

Disciplinary procedure

A standardized process that an organization commits to when dealing with an employee who has breached the terms of employment in some way. If this procedure is not standardized and fair, the organization may face discrimination or other legal charges.

Balanced Scorecard

A strategic planning and management system that is used to tie business activities to the vision and strategy of the organization, improve internal and external communications, and monitor performance against goals.

Employment Branding

A strategy designed to make an organization appealing as a good place to work. This targeted marketing effort utilizes both print and Internet tactics and attempts to shape the perceptions of potential employees, current employees and the public / investment community.

Summary material modifications

A summary of modifications or changes made to an employee benefit plan that is not included in the summary plan description.

Quality management

A system to make sure that a product or service meets standards of excellence, and that the process by which the product or service is created is efficient and effective as well. The three key components of this system are quality control, quality assurance and quality improvement.

Factor comparison

A systematic and scientific comparison, that instead of ranking complete jobs, ranks according to a series of factors. These factors include mental effort, physical effort, skill needed, responsibility, supervisory responsibility, working conditions, etc.

Transformational leadership

A systematic form of leadership that enhances the motivation, morale and performance of followers through change, innovation, and group dynamics.

Health savings accounts (HSA)

A tax-free account that can be used by employees to pay for qualified medical expenses.

Benchmarking

A technique using specific standards to make comparisons between different organizations or different segments of the organizations, with the intent of improving a product or service.

Cognitive ability testing

A testing instrument used during the selection process in order to measure the candidate's learning and reasoning abilities.

Hierarchy of needs

A theory created by psychologist Abraham Maslow that states humans constantly strive to meet a series of needs, going from physical (food and shelter) all the way to spiritual (self-actualization).

Rotational training

A training method where employees are rotated among a variety of different jobs, departments or company functions for a certain period of time.

Full-time equivalent (FTE)

A value assigned to signify the number of full-time employees that could have been employed if the reported number of hours worked by part-time employees had been worked by full-time employees instead.

Carrier

A vendor in the employee benefits space. More commonly used in reference to health care. Carriers (e.g., Met Life, Blue Cross, Aetna, etc.) sell their products through Brokers & Consultants, but may also sell to an employer directly.

Job Description

A written statement that explains the responsibilities and qualifications of a given job, based on a job analysis. The job description usually includes specific required tasks as well as an overview of the position and whom the employee reports to.

Unscheduled time off

Absence from work during regular work hours that was not scheduled in advance by the employee (e.g. sickness).

Bullying (workplace bullying)

According to the Workplace Bullying and Trauma Institute workplace bullying is "repeated, health-harming mistreatment, verbal abuse, or conduct which is threatening, humiliating, intimidating, or sabotage that interferes with work, or some combination of the three."

Leadership Development

Activities, whether formal or informal, that enhance leadership qualities

Incentive pay

Additional compensation used as a motivational tool to exceed specified work goals.

Flexible Spending Accounts (FSA)

Allows employees to set aside a portion of their earnings on a pre-tax basis into separate spending accounts to fund allowable health care and/or dependent day care expenses.

Restrictive covenant

Also known as a negative covenant; a provision in a contract excluding key employees from working for competitors in a certain geographic area and for a certain length of time.

Executive Search

An agency or organization used by employers to assist them with the selection and placement of candidates for senior-level managerial or professional positions.

Third-Party Administrator (TPA)

An organization that is responsible for the administration of insurance for a self-insured group. It does not have any responsibility for paying claims. The self-insured group is financially responsible. (See self-insured group)

Performance Planning

An organization-wide plan to manage employees and their performance wherein goals are set for employees, departments and the organization as a whole.

Consultants

An outside individual who supplies professional advice or services to companies for a fee. Large HR consulting firms include Aon, Mercer, Hewitt and Watson Wyatt. Large HR consulting firms typically work with companies who have more than 1,500 employees.

Emotional Intelligence

Based on the book of the same name by Daniel Goleman, Emotional Intelligence is the ability to recognize, assess and manage their own and others' emotions.

Voluntary Benefits

Benefits that are paid for by the employee through payroll deductions. The employer pays for administration. Examples of these benefits include life insurance, dental, vision, disability income, auto insurance, long-term care coverage, medical supplement plans and homeowners insurance.

Business continuity planning

Broadly defined as a management process that seeks to identify potential threats and impacts to the organization, and provide a strategic and operational framework for ensuring the organization is able to withstand any disruption, interruption, or loss to normal business functions or operation.

Human Resource Information System (HRIS)

Business software systems that assist in the management of human resource data (e.g. payroll, job title, candidate contact information). Some of the larger HRIS platforms include SAP and Peoplesoft.

Competency-based pay

Competency-based pay, alternately known as skill-based and knowledge-based pay, determines compensation by the type, breadth and depth of skills that employees gain and use in their positions.

CAN-SPAM Act (Controlling the Assault of Non-Solicited Pornography and Marketing Act)

Congressional legislation that regulates commercial emails (i.e. commercial advertisement or promotion) and sets clearly defined opt-out standards. Any billing, warranties, product updates or customer service information is not included in this act. E-mail newsletters that are not considered advertisements are also exempt.

Contingency Recruiting (Search)

Contingency recruiters conduct frontline talent searches and represent either employers or individuals seeking placement. Contingency firms are not paid unless a candidate is successfully placed.

ISO 9001, 9004

Developed by the International Organization for Standardization (ISO), it is a set of standards for quality management systems that is accepted around the world. Organizations that conform to these standards can receive ISO 9000 certification. The standard intended for quality management system assessment and registration is ISO 9001.

Short-term disability

Disability income insurance designed to replace employee income for a temporary, specified time frame while they are unable to perform their duties due to illness or injury, before they return to work.

E-Learning

E-learning is a method of education via the Internet or other computer related resources. It presents just-in-time information in a flexible learning plan. E-learning can be combined with face-to-face courses for a blended learning approach.

Distance Learning

Educational programs using instruction via video or audio tapes, computers etc. instead of attending a class in one centralized location.

Scheduled time off

Excused absences from regular work hours scheduled in advance by an employee for such things as vacation, medical appointments, military service, jury duty, etc.

Executive Coaching

Executive coaching is a professional relationship between a Coach and an Executive, or an Executive Team. The goal is to assist executives with positive leadership development. It can be provided in one-on-one sessions or via the Internet.

Empowerment

Giving employees the resources, skills and authority necessary to share power with management and make decisions. Employees are then held accountable for their decisions and rewarded if appropriate.

Bumping

Giving long-standing employees whose positions are to be eliminated the option of taking other positions within the company that they are qualified for and that are currently held by employees with less seniority.

Safe Harbor Regulations

Guidelines regulated by the Department of Labor, which, when fully complied with, may reduce or limit the liability of a plan fiduciary, on the condition that the party performed its actions in good faith or in compliance with defined standards.

Disability Income Insurance

Health insurance that is paid to a policyholder who experiences a loss of income due to an injury or an illness. Disability insurance plans pay a portion of the salary of a disabled worker until his/her retirement age.

Learning Style

Learning styles are overall patterns that provide direction to learning and teaching. They involve educating methods, particular to an individual, that are presumed to allow that individual to learn best.

Early return to work program

Modified work programs designed to get employees who have been out of work due to injury or illness to return to the workforce sooner by providing them with less strenuous alternative jobs until they are able to resume their full regular duties.

Application Service Provider (ASP)

Other common terms are SaaS (software as a service), on-demand or Web-based services. A business that provides computer-based services to customers over a network, as opposed to installing the software on a company server (hosted). This is a cost-effective solution for small and medium-sized businesses, who may find it hard to keep up with the increasing costs of specialized software, distribution and upgrades. Smaller, periodic payments replace one-time lump sum pricing. The ASP can be accessed from any location via the Internet. HRmarketer.com is an example.

Merit pay

Performance-related pay which provides bonuses or base pay increases for workers who perform their jobs effectively, according to measurable criteria.

Employee retention

Practices and policies designed to create a work environment that makes employees want to stay with the organization, thus reducing turnover.

Nepotism

Preferential hiring of relatives and friends, even though others might be more qualified for those positions.

Social Collaboration

Processes that help multiple people within an organization interact, share information to achieve common goals.

Training and development

Providing information and instruction that equips employees to better perform specific tasks or attain a higher level of knowledge.

Motivational Theories

Psychological models that attempt to explain what motivates people. These theories can help employers design incentive strategies.

Competitive advantage

Refers to the quality of the employees, as a competing organization's systems and processes can be copied but not its people. All other things being equal among competing companies, it is the company with better employees that has the competitive advantage.

COBRA

Requires employers to offer continued health insurance coverage to terminated employees and their beneficiaries.

Organic Search Results

Search results returned by search engines that are based purely on the content of the pages and page popularity. Organic search results are not categorized directory results, or pay-per-click advertising results. According to MarketingSherpa.com, total money spent on search engine optimization represents only 12% of what is spent on pay-for-click advertising (PPC). What makes this statistic so startling is that it is that organic search engine results (those that show up in natural "free" listings) are better noticed, read, and clicked on than the paid listings.

Premium only plan (POP)

Section 125 is part of the IRS Code that allows employees to convert a taxable cash benefit (salary) into non-taxable benefits, so they may pay for qualified benefit premiums before any taxes are deducted from their paychecks. The Premium only plan allows for certain employee paid group insurance premiums to be paid with pre-tax dollars.

Key Performance Indicators (KPIs)

Tasks that are central to the success of a business and show, when measured, whether the business is advancing toward its strategic goals.

Background Screening / Pre-employment Screening

Testing to ensure that employers are hiring qualified and honest employees and that a prospective employee is capable of performing the functions required by the job.

Employee Assessments

Tests used to help employers in pre-hire situations to select candidates best suited for open positions.

Right to manage

The "right" of management to conduct business without having to answer to internal or external forces for their decisions.

Cost-Benefit Analysis

The ability to measure the costs associated with a specific program, project, or benefit. The cost is then compared to the total benefit or value derived.

Offshoring

The act of moving work to an overseas location to take advantage of lower labor costs. Offshoring usually involves manufacturing; information technology and back-office services like call centers and bill processing. Companies can build its own work center abroad, establish a foreign division, or create a subsidiary in remote locations.

Workforce Planning

The assessment of the current workforce in order to predict future needs consisting of both demand and supply planning

Work-life Balance

The attempt to balance work and personal life in order to have a better quality of life. A person with a balanced life is an asset to his or her business, as he or she experiences greater fulfillment at work and at home.

Enterprise Compensation Management (ECM)

The automation of the compensation process to assist organizations in the acquisition, management and optimization of its workforce.

Mean wage

The average wage for a worker in a specified position or occupation, which may be skewed up or down if there are a few extreme examples in the sample.

Behavioral competency

The behavior qualities and character traits of a person. These act as markers that can predict how successful a person will be at the position he/she is applying for. Employers should determine in advance what behavioral competencies fit the position and create interview questions to find out if the candidate possesses them.

Social Networking

The building of online communities of people who have common interests. LinkedIn, Facebook and MySpace facilitate these interconnected systems. HR departments have begun to incorporate social networking into the recruiting process as a means to attract and evaluate candidates.

Human Capital

The collective skills, knowledge and competencies of an organization's people that enables them to create economic value.

Marketing PR

The combining of what are traditionally two separate departments, public relations and marketing, to one integrated front whereby all marketing and PR activities focus on reaching buyers directly.

Scalability

The degrees to which the system, network, or process of a computer's hardware or software can be expanded in size, volume, or number of users served and continue to function properly. An analogous business model of economic growth refers to a businesses ability to expand to a greater capacity.

Sourcing

The developing of lists of potential candidates. Also relates to the task of requisitioning, or creating job descriptions, approval workflows and actual job postings. Most e-recruitment software providers include modules for requisitioning.

Exempt Versus Non-Exempt Employees

The difference between exempt and nonexempt employees is who gets paid overtime and who doesn't. In general, the more responsibility and independence or discretion an employee has, the more likely the employee is to be considered exempt. Generally, any worker performing repetitive tasks is most likely nonexempt and must be paid overtime.

Fair Representation

The duty of fair representation is incumbent upon U.S. labor unions that are the exclusive bargaining representative of workers in a particular group. It is the obligation to represent all employees fairly, in good faith, and without discrimination.

Carve-Out

The elimination of coverage of a specific category of benefit services (e.g. vision care, mental health/psychological services, or prescription drugs). The employer opts out of certain services with one vendor and contracts another to deliver them.

Accessibility

The extent to which a contractor's or employer's facility is readily approachable and does not inhibit the mobility of individuals with disabilities, particularly such areas as the personnel office, worksite and public areas.

Social HR

The extent to which human resource departments leverage social media tools (Facebook, LinkedIn, Twitter, etc.) to conduct human resource activities (recruiting, employment branding, etc.) aimed at aligning HR goals to the company's business goals.

Exit Interview

The final meeting between management, usually someone in the HR department, and an employee leaving the company. Information on why the employee is leaving is gathered to gain insight into work conditions and possible changes or solutions.

Administrative Services Only (ASO)

The hiring of a firm (usually a health care vendor) to handle certain administrative tasks.

Disability

The inability to perform all or part of one's occupational duties because of an accident or illness. This can be due to a sickness, injury or mental condition and does not necessarily have to have been caused by the job itself.

Minimum wage

The lowest amount an employer can pay an hourly employee. This rate is set by the federal government.

Business Process Outsourcing (BPO)

The managing of an organizations business applications by a technology vendor.

Median wage

The margin between the highest paid 50 percent and the lowest paid 50 percent of workers in a specific position or occupation. It is often more representative of the average wage than a mean would be, as it can account for extreme outliers.

Turnover

The number of employees lost and gained over a given time period.

Recruitment Process Outsourcing (RPO)

The outsourcing of the recruiting process to a third party.

Core competencies

The particular set of strengths, experience, knowledge and abilities that differentiate a company from its competitors and provide competitive advantage. Employees should possess these qualities in order to advance business goals.

Return on investment (ROI)

The percentage of profit on an investment compared to the cost of that investment. Also called the rate of return or yield.

Casual employment

The practice of hiring employees on an as-needed basis, either as a replacement for permanent full-time employees who are out on short and long-term absences or to meet employer's additional staffing needs during peak business periods.

Genetic-based Discrimination

The practice of requesting or requiring genetic testing information during the hiring process or using genetic testing information to base any other employment decisions or actions.

Performance Management

The process of maintaining or improving employee job performance through the use of performance assessment tools, coaching and counseling. The ultimate goal is to better meet organizational objectives.

Social Recruitment

The process of recruiting potential job candidates through the use of social networking platforms and/or websites such as Twitter, Facebook and LinkedIn. Social recruitment software is used to search social networks for passive candidate information, manage active social recruiting efforts, as well as distribute job postings and information related to open positions to job posting websites.

Labor force participation rate

The ratio between the labor force (all those currently employed or seeking work) and the nation's total working-age population.

Co-employment

The relationship between a Professional Employer Organization (PEO), or employee leasing firm and an employer, based on a contractual sharing of liability and responsibility for employees.

Conversion Rate

The relationship between visitors to a web site and actions considered to be a 'conversion', such as a sale or request to receive more information.

Freedom of association

The right of workers to join a union and to bargain collectively. This right is protected by the Universal Declaration of Human Rights and the Human Rights Act of 1993.

Generation I

The term used to describe children born after 1994 who are growing up in the Internet age.

Generation X

The term used to describe individuals born between 1965 and 1980.

Generation Y

The term used to describe individuals born between 1985 and the present.

Hawthorne Effect

The theory that organizations can motivate their employees as much or more by expressing concern for problems as by actually improving their work conditions. This personal interest results in increased performance, according to the observations of productivity researcher George Elton Mayo.

Virtual HR

The use of various types of technology to provide employees with self-serve options. Voice response systems, employee kiosks are common methods.

Organizational Culture

The values, attitudes, beliefs and behaviors that characterize an organization. It is the unwritten workplace ethos that is picked up by new employees.

Mobile Recruiting

Using mobile technologies to find and connect with people (candidates) who use mobile devices (e.g., phone).

Social Media Background Screening

Using publicly available social media profiles of job candidates in the hiring decision process.

Capitated Pricing

Vendors deliver contracted services for a set amount of money per employee per month. This can be a risky strategy for vendors whose profitability is directly tied to how much the services are or are not used (e.g., EAPs).

E-Recruitment

Web-based software that handles the various processes included in recruiting and onboarding job candidates. These may include workforce planning, requisitioning, candidate acquisition, applicant tracking and reporting (regulatory or company analytics).

Work/Life Employee Benefits

Work/Life benefits are "non-traditional" employee benefits that assist employees in managing their lives and include: child and elder care referral services, employee assistance program (EAP), concierge, legal assistance, and emergency back-up childcare.

Union

Workers who organize a united group, usually related to the kind of work they do, to collectively bargain for better work conditions, pay or benefit increases, etc.

SHRM

World's largest association devoted to human resource management. Representing more than 250,000 members in over 140 countries, the Society serves the needs of HR professionals and advances the interests of the HR profession."

Grievance

a complaint by an employee due to an alleged violation of law or collective bargaining or dissatisfaction with work conditions.

Stay Interviews

unlike exit interviews, stay interviews are conducted during employment to help employers understand why good employees stay and what might make them leave.