One of the biggest assets of any organization is its human resource. It is the lifeline for the company which takes it forward to achieve organizational goals. William R. Tracey defined a human resource as “The people that staff and operate an organization.”
In short, human resource defines a person who works for the company to deal with the issues related to their workforce. Human Resource management mainly focuses on recruitment, staffing, employee training, benefits, and labor relation. If you are planning to look forward to starting your career in the HR field, then knowing a few HR terminologies will definitely put you a step ahead. Read on to know the terms we have picked to make your grip strong in the HR space:
- Restrictive Covenant: It’s a clause entered in the letter of the contract which restricts qualified and performing employees from joining competitor companies for a specific period in a specific region. For every business, there will be information’s which are both integral as well as invaluable for its success. The Restrictive Covenant clause restricts employees from using such information once they resign or retire as such information is important for business and customer security.
- Boomerang Employees: The employees who are moving out of the company with the intention to come back later. A boomerang employee can be an asset for a company as he/she can provide important insights about the competitor companies. His gathered experience from other companies can help in the strategic planning of the current company.
- Attrition: Attrition, the important Human Resource terminology, stands for employees who are moving out of the company. Attrition is calculated using a metric known as the attrition rate. It is used to measure the number of employees leaving the organization due to death, retirement, or voluntary or involuntary termination. Attrition Rate is also popularly known as churn rate.
- Right-sourcing: As the name suggests, it means the selection of the right sources. The process of choosing the best way to acquire service and decide if the company can perform well in providing the business need in-house, i.e., insourcing or has to take it out to a third-party service provider, i.e., outsourcing. The analysis mainly focusses on cost planning, practicality, competence, and the arrangement to fulfill a project.
- Digital HR: The transformation of HR processes and services digitally with the use of mobile, social, analytics and cloud technologies is called a digital HR. In short, we can say it as a term which defines a tectonic shift in the way Human Resources are going to function. Below are some important terminologies which fall under digital HR-
- SMAC: It is a Digital HR enabler. It stands for social, mobile, analytics, and cloud. With analytics, it has become much easier for an employee to manage a huge quantity of data to analyze the performance of the workforce.
- Digital workforce: Technology has renovated the way we work. It is also true from the employer’s point of view. The invent in technology has made it possible to hire and work for companies across the globe sitting at one end of the world.
- People analytics: People analytics, also called HR analytics, is more relevant for large organizations. It is the term used for the statistical analysis of people data for solving business problems.
- Turnover Rate: Turnover in HR is the act where an employee is replaced with a new employee by the organization. It is calculated by adding up total resignations in a specified period and dividing the same with average employee numbers during the mentioned period, and then it is multiplied by 100.
- Competency assessment: Competency assessment is the performance measure of an individual employee. It is measured based on the criteria set by the company. A competency assessment carried out at regular intervals can reveal the issues faced by the employee and resolve it on time before it affects the organizations’ goal.
- Performance review: A performance review is a documented evaluation to record employee’s performance for a given period and the contribution he/she made towards achieving company goals. The review is shared with the employee and can be used as a learning tool to improvise on the areas he/she should. This review is also used for deciding the performance bonus of the individual employees.
- Workers’ Compensation Claims: The term used for the calculation of the claims made by the employees and the cause behind it. This will help the employers to decide the measurements they need to take for offering a healthy and safe working environment to their employees.
- Behavioral Based Interview: It is a typical technique of interview which concentrates on the past experiences of the candidate, his/her behaviors, skills, knowledge, and abilities. The candidate will be asked to provide certain examples which can demonstrate mentioned behaviors and skills to decide if the candidate will be suitable for prospective company behavior and performance.
- Benchmarking: It’s the technique used for making quantitative and qualitative data for establishing a comparison between various organizations or different segments of those organizations. It can be used to compare the external and internal performance of competitors to decide upon the improvements and developments needed to achieve your organizational goals.
The term human resource was first coined in the 1960s, and since then, it has become an important segment for any company. Knowing the HR terms will make you more conscious about the organization and will help to play a major role to support your organizations’ goal. Above listed terminologies are carefully picked and is massively used by the HR professionals across the globe.
Aditya works as a Growth Assistant at AirTract.Com, a social platform wherein people ask questions, get answers, sell knowledge and experience. He has a Bachelor’s Degree in Computer Science Engineering and has been working in the field of Digital Marketing for the past two years. He is also a voracious reader and a big sports fan.