Dec 23, 2024

Human Resources Terms & Glossary: What You Need to Know

Growing a small business brings plenty of exciting challenges — hiring the right people, creating a thriving culture, and mastering the ins and outs of human resources (HR). But let’s face it: HR can sometimes feel like it comes with its own secret language.

That’s where this HR glossary comes in — a practical guide to help you make sense of HR terms, processes, and those tricky HR buzzwords.

We’ve broken down human resources terminology into clear, easy-to-understand definitions that you can actually use in your day-to-day. Think of it as your go-to HR words list — a resource designed specifically for growing businesses like yours.

From human resources vocabulary for recruitment and onboarding to policies and compliance, you’ll be able to navigate HR with confidence. After all, understanding the language of human resources is key to building a team, fostering a strong workplace culture, and setting your business up for success.

What is an HR Glossary?

An HR glossary is a quick reference guide that helps you decode the language of human resources. Packed with essential HR terms, HR buzzwords, and practical human resources vocabulary, it simplifies complex concepts like compliance, performance reviews, and employee benefits into plain language.

Think of it as a cheat sheet — an easy-to-use HR word list that makes navigating the world of human resources simple and accessible for any growing business.

Essential HR Terms and Their Definitions (A-Z)

You can go ahead and jump to the letter you need over here:

A, B, C, D, E, F, G, H, I, J, K, L, M, N, O, P, Q, R, S, T, U, V, Y, and Z.

We’ll start with the numbers.

1099 Form: A tax document used to report income earned by independent contractors or freelancers. It is issued to non-employees who were paid $600 or more for services provided during the tax year.

147c: A form issued by the IRS to verify an organization’s Employer Identification Number (EIN). Businesses request this letter for tax reporting, payroll, or banking purposes.

360 Survey: A feedback tool that gathers performance evaluations from an employee’s managers, peers, direct reports, and sometimes external stakeholders to provide a well-rounded assessment.

4-Day Work Week: A 4-day work week is an alternative work schedule where employees work four days instead of five, often with the same total weekly hours, providing a three-day weekend to improve work-life balance.

401(a): Retirement savings plans primarily used by government, educational, or non-profit organizations, typically as an employer-sponsored alternative to 401(k) plans, often with mandatory contributions from employers and/or employees.

401(k): A retirement savings plan that allows employees to contribute pre-tax income, which grows tax-deferred. Employers may offer matching contributions as an added benefit.

403(b): A retirement plan designed for employees of nonprofits, schools, and religious organizations. It allows for pre-tax contributions that grow tax-deferred until withdrawal.

457(b) Retirement Plan: A deferred compensation plan available to employees of state and local governments or nonprofits, allowing pre-tax contributions with flexible withdrawal options at retirement.

9/80 Work Schedule: A compressed work schedule where employees work 80 hours over nine days, typically consisting of eight 9-hour days, one 8-hour day, and one day off every two weeks.

A

Absence Management: The process of tracking and managing employee absences to reduce disruptions, ensure productivity, and maintain compliance with company policies and legal requirements.

Absenteeism Policy: A formal policy outlining expectations for employee attendance and procedures for addressing excessive or unexcused absences.

Accessibility: Ensuring systems, environments, or policies are usable and available to all individuals, including those with disabilities, in accordance with legal standards.

Accruals (Leave): The process by which employees earn paid time off, such as vacation or sick leave, over a period of time based on company policies.

Action Item: A specific task assigned to an individual or team during meetings or projects, with a clear deadline and accountability for completion.

Actual Deferred Percentage (ADP): ADP is a measure used in retirement plans to compare the percentage of compensation deferred by highly compensated employees to that of non-highly compensated employees.

Adaptive Device: Tools, equipment, or technology that assist individuals with disabilities in performing daily tasks or job-related activities, enhancing accessibility and usability for essential functions.

Administrative Services Only (ASO): A benefits arrangement where an employer self-funds insurance claims but outsources administrative services to a third-party provider.

Advance Earned Income Credit: The Advance Earned Income Credit has been discontinued.

Adverse Impact: A hiring or employment practice that, while seemingly neutral, disproportionately affects members of a protected class in a negative way.

Affirmative Action: Proactive measures taken to recruit, hire, and promote qualified individuals from underrepresented or disadvantaged groups.

Affirmative Action Plan (AAP): A written program designed by employers to ensure equal employment opportunities by addressing underrepresentation and remedying past discrimination.

Affordable Care Act (ACA): A U.S. healthcare reform law enacted in 2010 to improve healthcare access, affordability, and coverage, including mandates for employers to provide health insurance.

After-Tax Deduction: A payroll deduction made from an employee’s net income, such as union dues or retirement contributions not eligible for pre-tax treatment.

Age Discrimination in Employment Act (ADEA): A federal law that prohibits discrimination against employees and job applicants aged 40 and older based on their age.

Ageism: Discrimination or prejudice against individuals based on their age, often affecting older workers in hiring, promotions, or job retention.

Agile Organization: A business structured to quickly adapt to changes in customer needs, technology, or market conditions by promoting flexibility and collaboration.

Alternative Dispute Resolution (ADR): A method for resolving workplace disputes outside of litigation, often through mediation or arbitration, to save time and costs.

Americans with Disabilities Act (ADA): A U.S. law prohibiting discrimination against individuals with disabilities and requiring employers to provide reasonable accommodations in the workplace.

Annual Income: The total amount of earnings an employee receives in a year, including salary, bonuses, commissions, and other forms of compensation.

Annuity: A financial product that provides regular income payments, often used as part of retirement plans to ensure steady income for a specified period or life.

Applicant Flow Log: A record tracking job applicants throughout the hiring process, including demographics, to ensure compliance with equal employment opportunity requirements.

Applicant Tracking System (ATS): A software tool used by employers to streamline the recruitment process, from posting job openings to managing candidate applications.

At-Will Employment: A legal doctrine allowing employers or employees to terminate the employment relationship at any time, with or without cause or notice, unless otherwise prohibited.

Attachment: A legal order requiring an employer to withhold a portion of an employee’s wages, usually to satisfy a debt, such as child support or tax obligations.

Attrition: The natural reduction in the workforce due to retirements, resignations, or other voluntary departures without active replacement by the employer.

Automated Clearing House (ACH): An electronic system for processing direct deposits, payroll, and payments, ensuring fast and secure fund transfers between banks.

Awards and Prizes: Monetary or non-monetary recognition given to employees for achievements, milestones, or exceptional performance, often as part of a rewards program.

B

Baby Boomers: Individuals born between 1946 and 1964, a generation known for their strong work ethic and significant presence in the workforce.

Back Pay: Compensation owed to an employee for work previously performed but not paid, often due to wage disputes, errors, or legal rulings.

Bare Minimum Mondays: A workplace trend where employees prioritize only essential tasks on Mondays to reduce stress and promote better work-life balance.

Base Salary: The fixed amount of compensation an employee earns before bonuses, incentives, or other additional pay are factored in.

Before-Tax Deduction: Payroll deductions, such as retirement contributions or health insurance premiums, taken from an employee’s gross pay before taxes are applied.

Behavioral Competencies: The soft skills, behaviors, and attributes—such as communication, problem-solving, and leadership—that contribute to effective job performance.

Behavioral-Based Interviewing: An interviewing method that focuses on a candidate’s past actions and experiences as indicators of future performance.

Benefits Administration: The process of managing employee benefits programs, including enrollment, claims processing, compliance, and communication of benefits options.

Bereavement: The period of grief and mourning following the death of a family member, friend, or loved one.

Bereavement Leave: Paid or unpaid time off provided to employees to cope with the death of a loved one, make funeral arrangements, or attend services.

Biweekly Pay: A payroll system in which employees are paid every two weeks, typically resulting in 26 pay periods per year.

Blended Workforce: A workforce composed of both full-time employees and contingent workers, such as freelancers, contractors, and temporary staff.

Bona Fide Occupational Qualification (BFOQ): A legal exception that allows employers to make hiring decisions based on protected characteristics, such as gender or religion, when essential to the job.

Boomerang Employees: Former employees who return to work for a company after leaving for a period of time, often bringing new skills and experiences.

Bring Your Own Device (BYOD): A policy allowing employees to use their personal devices, such as laptops or smartphones, for work-related tasks.

Broadbanding: A compensation system that consolidates multiple salary grades into fewer, broader ranges, allowing for more flexible pay structures.

Buddy System: A method of onboarding where a new hire is paired with a current employee to help them integrate into the workplace.

Business Agility: An organization’s ability to adapt quickly to changes in the market, technology, or customer needs to maintain competitive advantage.

Business Necessity: A legal term referring to an employer’s justification for policies or practices that may have an adverse impact but are essential for business operations.

Business Partnership: A collaborative relationship between HR and business leaders to align people strategies with organizational goals and objectives.

Business Process Outsourcing (BPO): The practice of contracting specific business processes, such as payroll, HR, or IT, to an external provider to improve efficiency and reduce costs.

C

California Labor Laws: State-specific regulations governing wages, hours, working conditions, and employee rights, often more comprehensive than federal labor laws.

Cafeteria Plan: A benefits plan allowing employees to choose from a variety of pre-tax options, such as health insurance, retirement contributions, and child care assistance.

Career Path: A structured plan outlining the progression of an employee’s roles, responsibilities, and skills within an organization over time.

Career Plateau: A stage in an employee’s career where upward mobility is limited due to skills, organizational structure, or lack of opportunities.

CASDI: California State Disability Insurance, a state-mandated program providing partial wage replacement for eligible employees unable to work due to disability or pregnancy.

Certificate of Good Standing: A document issued by a state government confirming that a business complies with state regulations and is authorized to operate.

Circular A: A document published by the IRS outlining tax-exempt status rules for agricultural employers and their employees.

Circular E: The IRS Employer’s Tax Guide that provides instructions for withholding, depositing, and reporting federal employment taxes.

Civil Rights Act of 1964: Landmark U.S. legislation prohibiting discrimination based on race, color, religion, sex, or national origin in employment and public accommodations.

Co-Employment: A legal arrangement in which two or more entities share employment responsibilities for an employee, often seen with staffing agencies or PEOs.

Coffee Badging: A workplace trend where employees briefly visit the office to appear compliant with hybrid work policies, then leave to work remotely.

Common-Law Test: A legal test used to determine if a worker is classified as an employee or independent contractor based on the employer’s control over work performed.

Compa-Ratio: A metric comparing an employee’s salary to the midpoint of their salary range, calculated as a ratio often used to evaluate pay equity within an organization.

Compensation: All forms of payment provided to employees, including base salary, bonuses, incentives, and benefits, in exchange for their work.

Compensatory Time Off: Paid time off granted in lieu of overtime pay, often used by public-sector employers but generally restricted for private employers.

Competency-Based Pay: A compensation system that rewards employees based on their skills, knowledge, and abilities rather than job title or position.

Conditions of Employment: The terms and expectations set by an employer that an employee must meet, such as work hours, job duties, and behavior standards.

Constructive Discharge: When an employer creates intolerable working conditions that compel an employee to resign, considered a form of involuntary termination.

Contingency Recruiting: A recruitment method where external recruiters are only paid when they successfully place a candidate in a position.

Contingent Worker: A non-permanent worker, such as a freelancer, contractor, or temporary employee, hired to perform specific tasks or projects.

Core Competencies: The essential skills, abilities, and attributes required for an employee to perform their role effectively and contribute to organizational success.

Corporate Social Responsibility: A company’s commitment to ethical practices, sustainability, and positive social and environmental impacts beyond profit-making.

Cover Letter: A document accompanying a resume that introduces the applicant, highlights qualifications, and explains their interest in the job.

CP 575 Form: A notice issued by the IRS to confirm an organization’s Employer Identification Number (EIN) after registration.

CPP (Certified Payroll Professional): A professional certification for payroll specialists, awarded by the American Payroll Association, demonstrating advanced payroll knowledge.

Cross-Functional Teams: Teams composed of individuals from different departments or functions working collaboratively to achieve a common goal or project.

D

Deduction: An amount subtracted from an employee’s paycheck, such as taxes, benefits premiums, or retirement contributions, before or after taxes.

Deferred Compensation: Earnings set aside to be paid at a later date, such as retirement plans, bonuses, or stock options, often offering tax benefits.

Defined Contribution Plan: A retirement plan, like a 401(k), where contributions are fixed, but the payout depends on investment performance over time.

Dependent Care Benefits: Employer-provided assistance, such as pre-tax contributions to flexible spending accounts, to help employees cover child or dependent care expenses.

Direct Deposit: An electronic transfer of an employee’s wages directly into their designated bank account, eliminating the need for physical paychecks.

Direct Reports: Employees who report directly to a specific manager or supervisor within an organization’s hierarchy.

Disability Leave: Time off provided to employees who are unable to work due to a qualifying disability, often covered by short-term or long-term disability insurance.

Disciplinary Action: Corrective measures taken by an employer to address employee misconduct or performance issues, such as warnings, suspension, or termination.

Discretionary Bonus: A bonus given at the employer’s sole discretion without pre-determined criteria, typically as a reward for exceptional performance.

Disparate Effect: When a seemingly neutral policy or practice disproportionately impacts a protected group, leading to unintended but measurable discrimination. Often referred to as “disparate impact” in legal and HR contexts.

Disparate Treatment: Intentional discrimination that occurs when an employee or applicant is treated differently based on a protected characteristic, such as race or gender.

Disposable Earnings: The portion of an employee’s wages remaining after mandatory deductions, such as taxes, used to determine garnishment amounts.

Disregarded Entity: A business structure, such as a single-member LLC, that is not considered separate from its owner for federal tax purposes.

Diversity: The presence of differences within a workplace, including race, gender, age, sexual orientation, abilities, and cultural backgrounds, contributing to inclusion and innovation.

Dual Career Ladder: A system that allows employees to advance in either a technical or specialist role, enabling career progression without forcing technical experts into management positions.

Dual Labor Market: The segmentation of the labor market into two distinct sectors — the primary market with high wages, benefits, and job security, and the secondary market with low wages, limited benefits, and high job turnover.

Duties Test: A legal assessment under the Fair Labor Standards Act (FLSA) used to determine whether a job is classified as exempt from overtime pay by analyzing responsibilities, decision-making authority, and salary basis.

E

Earned Income Credit (EIC): A federal tax credit designed to benefit low-to-moderate income working individuals and families, reducing tax liability and potentially offering a refund.

Earned Income Tax Credit (EITC): Another term for the Earned Income Credit, this refundable tax credit provides financial relief to eligible taxpayers based on income and family size.

Earnings: The total compensation an employee receives for work performed, including wages, salary, bonuses, and other forms of pay.

EDD Disability: A California State Disability Insurance (SDI) program managed by the Employment Development Department (EDD) that provides short-term wage replacement for eligible employees unable to work due to a disability.

Electronic Data Interchange (EDI): The electronic exchange of business documents, such as purchase orders and invoices, between organizations using standardized formats.

Electronic Federal Tax Payment System (EFTPS): A secure, government-run system allowing businesses and individuals to pay federal taxes electronically.

Electronic Funds Transfer (EFT): The electronic transfer of funds between accounts, commonly used for payroll direct deposits and vendor payments.

Emotional Intelligence: The ability to recognize, understand, and manage one’s emotions while effectively recognizing and responding to the emotions of others.

Employee: An individual hired by an organization to perform work in exchange for compensation, under the employer’s direction and control.

Employee Assistance Program (EAP): Employer-provided programs offering confidential counseling and support for personal or work-related issues.

Employee Benefits: Non-wage compensation provided to employees, such as health insurance, retirement plans, paid time off, and wellness programs.

Employee Deductions: Amounts subtracted from an employee’s paycheck for items like taxes, retirement contributions, or insurance premiums.

Employee Empowerment: A management practice that gives employees autonomy, resources, and decision-making authority to perform their roles effectively.

Employee Engagement: The emotional commitment and enthusiasm employees have toward their organization, resulting in higher productivity and job satisfaction.

Employee Evaluation: A formal review process assessing an employee’s job performance, achievements, and areas for improvement.

Employee Handbook: A document outlining an organization’s policies, procedures, workplace expectations, and employee rights.

Employee Leasing: The practice of hiring employees through a third-party leasing company, often for administrative and payroll purposes.

Employee Management: The process of overseeing and optimizing employee performance, development, and satisfaction within an organization.

Employee Management Software: Technology solutions that help businesses manage HR tasks such as payroll, performance tracking, attendance, and benefits administration.

Employee Net Promoter Score (eNPS): A metric that measures employee satisfaction and loyalty by asking how likely they are to recommend their employer to others.

Employee Relations: The efforts and processes HR uses to maintain positive relationships between employees and the organization, addressing conflicts and concerns.

Employee Resource Group (ERG): Voluntary, employee-led groups that foster inclusivity and build community, often focused on shared identities or interests.

Employee Retention Tax Credit: A refundable tax credit introduced to encourage employers to retain employees during economic hardships, such as the COVID-19 pandemic.

Employee Satisfaction: The degree to which employees feel fulfilled, content, and valued in their roles and work environment.

Employee Self-Service (ESS): A portal or system allowing employees to access and manage their personal information, benefits, and payroll details online.

Employee Turnover: The rate at which employees leave an organization and are replaced, including voluntary and involuntary departures.

Employee Type: A classification of employees based on work arrangements, such as full-time, part-time, temporary, or contingent workers.

Employer Identification Number (EIN): A unique nine-digit number assigned by the IRS to identify a business for tax purposes.

Employer Payroll Taxes: Taxes employers must pay on behalf of employees, including Social Security, Medicare, unemployment, and federal or state-specific taxes.

Employment-at-Will: A legal doctrine allowing employers or employees to end the employment relationship at any time, with or without cause or notice.

Employment Contract: A legal agreement between an employer and an employee outlining the terms of employment, including duties, compensation, and conditions.

Employment Status: A classification defining an individual’s working arrangement, such as employee, independent contractor, or temporary worker.

Equal Employment Opportunity Commission (EEOC): A U.S. federal agency responsible for enforcing laws against workplace discrimination based on protected characteristics.

Equal Opportunity Employer: An employer committed to providing equal employment opportunities without discrimination based on race, gender, age, or other protected categories.

Equity vs. Equality: Equity ensures fairness by providing individuals with the resources they need to succeed, while equality means treating everyone the same regardless of need.

Evidence of Insurability: Documentation required by insurance providers to prove an individual’s eligibility for coverage, often involving health assessments.

Exempt Employee: An employee who is not entitled to overtime pay under the Fair Labor Standards Act (FLSA) due to their job duties and salary level.

Exempt vs. Non-Exempt: Exempt employees are not eligible for overtime pay, while non-exempt employees must be paid overtime for hours worked over 40 in a workweek.

Exemption: A legal exclusion from certain requirements, such as taxes or overtime, based on job role, earnings, or other criteria.

Exit Interview: A conversation conducted with departing employees to gather feedback about their experiences and identify opportunities for improvement.

F

Fair Labor Standards Act (FLSA): A federal law establishing minimum wage, overtime pay, child labor standards, and recordkeeping requirements for covered employees.

Family and Medical Leave Act (FMLA): A U.S. law that grants eligible employees up to 12 weeks of unpaid, job-protected leave for certain family and medical reasons.

Federal Holidays: Designated U.S. holidays when federal government offices and most businesses are closed, such as Independence Day and Thanksgiving Day.

Federal ID Number: Also known as an Employer Identification Number (EIN), it is issued by the IRS to identify businesses for tax purposes.

Federal Income Tax (FIT): A tax levied by the U.S. government on individuals’ and businesses’ earnings, calculated based on income brackets.

Federal Income Tax Withholding (FITW): The portion of an employee’s wages withheld by an employer to pay federal income taxes on their behalf.

Federal Mileage Rate: The standard rate set by the IRS for calculating deductible expenses for business-related vehicle travel, adjusted annually.

Federal Mileage Reimbursement: Compensation for employees who use their personal vehicles for work-related travel, based on the federal mileage rate.

Federal Minimum Wage: The lowest hourly wage that employers can legally pay employees, as set by the FLSA (currently $7.25 per hour at the federal level).

Federal Tax Deposit: Payments made by employers to the IRS for federal employment taxes, such as income tax, Social Security, and Medicare.

Federal Unemployment Tax Act (FUTA): A law requiring employers to pay federal taxes to fund unemployment benefits for eligible workers.

FICA: The Federal Insurance Contributions Act requires employers and employees to contribute to Social Security and Medicare through payroll taxes.

Flat Tax Withholding: A tax system where income is taxed at a consistent rate, regardless of income level, often used for supplemental wages.

Flexible Benefits Plan: A benefits program allowing employees to choose from a variety of options that suit their individual needs.

Flexible Spending Account (FSA): A pre-tax account that employees can use to pay for qualified medical or dependent care expenses.

Flexible Workplace: A work environment that allows employees to choose when, where, or how they work, promoting work-life balance.

Flextime: A scheduling arrangement allowing employees to adjust their work hours around a core set of required hours.

Floating Holiday: A paid day off that employees can take at their discretion, often used to observe a personal or cultural holiday.

FLSA Status: An employee classification under the Fair Labor Standards Act (FLSA) as either exempt (not eligible for overtime) or non-exempt (eligible for overtime).

FMLA Family and Medical Leave Act of 1993: A federal law providing eligible employees up to 12 weeks of unpaid, job-protected leave for specific family and medical reasons.

Form 1040-ES: An IRS form used by individuals to estimate and pay quarterly federal income taxes.

Form 1042-S: A form issued to non-U.S. residents reporting income subject to tax withholding, such as wages or scholarships.

Form 1099-SA: A form used to report distributions from a Health Savings Account (HSA) or other medical savings accounts.

Form 1120-S: An IRS form filed by S corporations to report income, losses, and dividends passed to shareholders.

Form 2553: A form filed with the IRS for a corporation to elect S corporation tax status, avoiding double taxation.

Form 5498-SA: A form provided to individuals and the IRS to report contributions made to Health Savings Accounts (HSAs) or other medical savings plans.

Form 8109: A now-obsolete form previously used for depositing federal employment taxes. Replaced by the Electronic Federal Tax Payment System (EFTPS).

Form 8233: A form used by nonresident aliens to claim tax treaty benefits and exemption from withholding on personal services income.

Form 8832: An IRS form used by businesses to elect their tax classification, such as a corporation or partnership.

Form 940: An IRS form used by employers to report annual Federal Unemployment Tax Act (FUTA) payments.

Form 941: A quarterly IRS form filed by employers to report income taxes, Social Security, and Medicare taxes withheld from employees’ pay.

Form 942: A now-obsolete IRS form previously used to report wages paid to household employees.

Form I-9: A mandatory form used to verify an employee’s identity and eligibility to work in the United States.

Forms 1094-C and 1095-C: IRS forms used by employers to report health insurance coverage offered to employees, as required under the Affordable Care Act (ACA).

Franchise Business: A business model in which an individual (franchisee) purchases the rights to operate a business under a larger company’s (franchisor’s) established brand and processes.

Fringe Benefits: Additional compensation provided to employees, such as health insurance, company cars, gym memberships, or tuition reimbursement.

Front Pay: Monetary compensation awarded to employees in cases of wrongful termination, representing wages they would have earned in the future.

FSA Limits: The maximum annual contribution amount allowed for a Flexible Spending Account, set by the IRS and adjusted annually.

FTE (Full-Time Equivalent): A unit measuring the workload of an employee to determine full-time status, calculated as 40 hours per week for one FTE.

Full-Time Hours: The standard number of hours an employee works per week to be considered full-time, typically defined as 35–40 hours, depending on company policy.

Furlough: A temporary unpaid leave of absence initiated by the employer, often due to economic challenges or seasonal slowdowns.

G

Gag Clause: A contract or policy provision that restricts individuals from discussing specific topics, such as trade secrets or sensitive business information. However, when it restricts workplace discussions on wages or working conditions, it may violate labor laws.

Garnishment Limits: Legal restrictions on the amount of an employee’s disposable income that can be withheld to satisfy debts, such as child support or loans.

Garden Leave: A period during which an employee leaving the company remains on payroll but is prohibited from working, typically to protect sensitive information or prevent them from joining a competitor.

Garnishment: A legal process requiring an employer to withhold a portion of an employee’s wages to satisfy debts such as child support, loans, or tax obligations.

GDPR Compliance: Adherence to the General Data Protection Regulation, a European Union law that governs data protection and privacy, ensuring organizations handle personal data responsibly and securely.

Gen C: A term referring to the “Connected Generation,” encompassing individuals across all age groups who are defined by their heavy reliance on technology and digital connectivity.

General Duty Clause: A requirement under OSHA that employers provide a workplace free from recognized hazards that could cause death or serious harm to employees.

Generation X (Gen X): Individuals born between 1965 and 1980, often described as self-reliant, adaptable, and focused on work-life balance.

Generation Y (Millennials): Individuals born between 1981 and 1996, characterized by their tech-savviness, desire for collaboration, and focus on career development and purpose-driven work.

Generation Z (Gen Z): Individuals born between 1997 and 2012, known for their digital fluency, entrepreneurial mindset, and focus on diversity, inclusion, and social causes.

Gig Economy: A labor market characterized by short-term, flexible jobs where workers are independent contractors, freelancers, or part-time employees.

Gig Worker: An individual engaged in temporary, project-based work, often through digital platforms like rideshare or freelance job apps.

Glass Ceiling: An invisible barrier that prevents women, minorities, or other underrepresented groups from advancing into senior leadership or executive positions.

Global HR: The management of human resources across multiple countries, addressing challenges like compliance, cultural differences, global mobility, and talent acquisition.

Global Mobility: The ability of organizations to relocate employees across countries or regions for work assignments, often involving visas, tax planning, and compliance.

Goal Setting: The process of establishing measurable objectives for employees or teams to achieve specific outcomes aligned with organizational priorities.

Golden Handcuffs: Financial incentives, such as bonuses, stock options, or retirement plans, are designed to retain employees and discourage them from leaving a company.

Golden Parachute: A financial package or contract clause offered to executives in the event of involuntary termination, often due to mergers, acquisitions, or restructuring, which may include severance pay, stock options, or bonuses.

Good Standing: A status indicating that a business complies with legal requirements, tax filings, and state regulations, enabling it to operate without penalties.

Great Resignation: A workforce trend that began in 2021 where employees voluntarily left their jobs in large numbers, often seeking better work-life balance, higher pay, or meaningful work.

Grievance: A formal complaint made by an employee regarding workplace issues, such as unfair treatment, harassment, or policy violations.

Gross Income: The total earnings an individual or business receives before any taxes, deductions, or withholdings are applied.

Gross Misconduct: Severe employee behavior, such as fraud, theft, or harassment, that warrants immediate disciplinary action, including termination.

Gross vs. Net Income: Gross income is the total earnings before deductions, while net income is the amount remaining after taxes, deductions, and other withholdings are applied.

Gross Pay: The total earnings an employee receives before taxes, deductions, and other withholdings are applied.

Group Health Plan: An employer-sponsored health insurance plan providing medical coverage to eligible employees and often their dependents.

Group Interview: An interview format where multiple candidates are interviewed simultaneously, often to assess teamwork, communication, and leadership skills.

Group Term Life Insurance: Employer-provided life insurance coverage for employees, offering financial protection to their beneficiaries in the event of death.

Guaranteed Pay: Fixed compensation, such as salary or hourly wages, that an employee is assured to receive regardless of performance or business conditions.

H

Health Maintenance Organization (HMO): A health insurance plan that limits coverage to a network of providers and requires referrals for specialists to control costs.

Health Reimbursement Account (HRA): An employer-funded account that reimburses employees for qualified medical expenses not covered by their insurance plans.

Health Savings Account (HSA): A tax-advantaged savings account available to individuals with high-deductible health plans (HDHPs), used to pay for qualified medical expenses.

Holiday Pay: Compensation provided to employees for working on or taking time off during recognized company or federal holidays.

Hourly Employee: A worker who is paid based on the number of hours worked and typically qualifies for overtime pay under the Fair Labor Standards Act (FLSA).

Hourly to Annual Salary: The process of calculating an annual salary by multiplying an hourly wage by the number of hours worked annually (e.g., 2,080 hours for full-time).

Hourly to Salary: A conversion used to determine a consistent salary equivalent for hourly compensation over a year.

Hourly to Yearly: Another method for calculating an annual salary from an hourly rate by multiplying hours worked by hourly pay.

Hours Worked: The total time employees spend performing work-related tasks, including overtime and other compensable activities as defined by the FLSA.

HR Business Partner: A senior HR role focused on aligning human resources strategy with business goals to drive organizational success.

HR Software: Technology solutions designed to automate and manage HR tasks such as recruiting, payroll, benefits administration, and performance management.

HSA Contribution Limits: The IRS-defined maximum amount that individuals or families can contribute to a Health Savings Account (HSA) annually.

HSA Reimbursement: The process of using HSA funds to pay for or be reimbursed for qualified medical expenses, which are tax-free.

Human Capital Management (HCM): A set of HR strategies and practices aimed at recruiting, managing, and developing employees to maximize business performance.

Human Resource Audit: A systematic review of HR processes, policies, and practices to ensure compliance, efficiency, and alignment with company objectives.

Human Resources (HR): The department responsible for managing an organization’s workforce, including recruiting, onboarding, benefits, performance management, and compliance.

Human Resources Information System (HRIS): Software that centralizes and automates HR tasks such as record-keeping, payroll, benefits, and employee data management.

Human Resources Management System (HRMS): A comprehensive HR technology platform that integrates HR functions, including recruiting, onboarding, performance tracking, and payroll.

Hushed Hybrid: A workplace trend where employees informally adopt a hybrid work model without an official agreement or acknowledgment from their employer.

I

Immigration Reform and Control Act of 1986 (IRCA): A U.S. federal law that prohibits employers from knowingly hiring unauthorized workers and requires them to verify employment eligibility through Form I-9.

Impute: To attribute or assign a value, responsibility, or consequence to someone or something, often used in legal or financial contexts.

Imputed Income: The value of non-cash benefits, such as employer-provided life insurance or housing, that is considered taxable income for the employee.

Inclusion: Creating a workplace environment where all individuals feel valued, respected, and able to contribute fully, regardless of background or identity.

Independent Contractor: A self-employed individual who provides services to a company under a contract, controlling their own work methods and not receiving employee benefits.

Indirect Compensation: Non-monetary rewards provided to employees, such as health insurance, retirement plans, paid leave, and other benefits.

Inflation: The rate at which prices for goods and services increase, reducing purchasing power and potentially impacting wages, compensation, and business costs.

Informal Communication: Unstructured and casual interactions among employees, such as hallway conversations, emails, or instant messaging, that foster relationships and collaboration.

Injunction Relief: A court-ordered remedy requiring a party to stop or take specific actions to prevent harm or maintain the status quo.

Insubordination: The willful refusal to follow a direct and reasonable order from a supervisor, often resulting in disciplinary action, including termination.

Internal Equity: The fairness of employee compensation within an organization, ensuring that employees performing similar roles receive comparable pay.

Intermittent Leave: A type of leave under the Family and Medical Leave Act (FMLA) that allows employees to take time off in separate blocks rather than all at once.

Intrinsic Rewards: Non-monetary incentives that provide personal satisfaction, such as recognition, meaningful work, or opportunities for professional growth.

ISO Certification (International Organization for Standardization): A global standard certifying that an organization meets specified criteria for quality, efficiency, and consistency in its operations.

Involuntary Termination: The dismissal of an employee, initiated by the employer, often due to poor performance, misconduct, or company restructuring.

Issue Resolution: The process of addressing and resolving workplace concerns, disputes, or grievances in a timely and fair manner.

J

Job Classification: The process of categorizing positions within an organization based on responsibilities, skills, and qualifications to ensure fair compensation and structure.

Job Description: A formal document outlining the responsibilities, duties, qualifications, and expectations for a specific job role.

Job Dissatisfaction: The sense of unhappiness or frustration employees experience when their work environment, job responsibilities, or organizational culture fail to meet their needs or expectations.

Job Shadowing: A professional development activity where an employee observes another worker’s role to gain insight into their tasks, skills, and daily responsibilities.

Job Shift Shock: The emotional stress or surprise an employee experiences after starting a new role, especially when the job’s actual responsibilities or environment significantly differ from what was communicated or expected.

Job Analysis: The process of identifying and documenting the tasks, duties, and requirements of a job to ensure alignment with organizational needs.

Job Enlargement: A method of increasing job variety by expanding the range of tasks and responsibilities assigned to an employee.

Job Enrichment: A strategy to improve job satisfaction by adding opportunities for meaningful work, autonomy, and personal growth within an employee’s role.

Job Evaluation: A systematic process used to determine the relative value of a job within an organization, often for salary structure purposes.

Job Grading: The practice of assigning jobs to specific levels or grades based on their responsibilities, complexity, and qualifications.

Job Posting: A notice or advertisement announcing an available position, including job requirements, duties, and application instructions.

Job Rotation: A development practice where employees move between different roles or departments to gain new skills and experiences.

Job Satisfaction: The level of contentment employees feel in their roles, influenced by factors such as compensation, work environment, and career growth.

Job Specification: A detailed statement outlining the qualifications, skills, and experience required to perform a specific job.

Job Title: The formal name of a position within an organization that reflects its role, level, and responsibilities.

Joint Employment: A situation in which two or more employers share control over an employee’s work, making them jointly responsible for employment-related obligations.

K

Key Employee: An employee identified as crucial to a company’s operations, often due to their specialized skills, knowledge, or leadership role.

Key Performance Indicators (KPIs): Measurable metrics used to evaluate an employee’s or organization’s progress toward achieving specific goals.

Knowledge Management: The process of capturing, organizing, and sharing an organization’s collective knowledge to enhance efficiency, innovation, and decision-making.

Knowledge, Skills, and Abilities (KSAs): The combination of an individual’s experience, training, and personal attributes that determine their qualifications for a specific job role.

L

Labor Force: The total number of individuals available for work, including both employed individuals and those actively seeking employment.

Labor Market: The supply of available workers in relation to the demand for jobs, influenced by factors such as economic conditions, skill availability, and wages.

Lazy Girl Job: A trending term referring to roles that prioritize work-life balance, minimal stress, and manageable workloads, often without extensive overtime or emotional strain.

Learning Management System (LMS): A software platform used to deliver, track, and manage employee training and professional development programs.

Leave Accrual Processing: The process of calculating and recording time off earned by employees, such as vacation or sick leave, based on company policy.

Leave of Absence: An approved period of time away from work, either paid or unpaid, for reasons such as illness, family responsibilities, or personal matters.

Letter of Termination: A formal document provided to an employee outlining the reasons for their dismissal, the termination date, and other relevant details.

Levy: A legal order requiring an employer to withhold wages from an employee to satisfy unpaid debts, such as taxes or court-ordered obligations.

Limited Purpose FSA: A type of Flexible Spending Account that can only be used for eligible dental and vision expenses, often paired with a Health Savings Account (HSA).

Layoff: A temporary or permanent separation of employees from their jobs, typically due to economic downturns, restructuring, or lack of work.

Leadership Development: Programs and initiatives designed to enhance employees’ leadership skills, preparing them for future managerial or executive roles.

Life Insurance: A benefit provided by employers that pays a designated beneficiary a financial sum in the event of an employee’s death.

Lateral Move: A job change within an organization where an employee takes on a new role at a similar level, often to gain new skills or experience.

Liability Insurance: Insurance coverage that protects businesses against claims resulting from injuries, damages, or negligence in the workplace.

Long-Term Disability (LTD): Insurance coverage that provides income replacement for employees who cannot work for extended periods due to illness or injury.

Lost Time Injury: A work-related injury or illness that results in an employee missing time from work beyond the day of the incident.

M

Malicious Compliance: Following instructions or policies to the letter, knowing they will lead to an undesired or unintended outcome, often as a form of protest.

Maternity Leave: A period of job-protected time off granted to employees for the birth or adoption of a child, often covered under FMLA or company policies.

Medical Leave of Absence: Approved time off from work for employees dealing with personal health issues, often covered under short-term disability policies or FMLA.

Medicare Wages and Tips (W-2): The portion of an employee’s wages and tips subject to Medicare tax, reported on the annual W-2 form.

Military Leave: A job-protected leave of absence granted to employees serving in the armed forces, including active duty or training, as required under the Uniformed Services Employment and Reemployment Rights Act (USERRA).

Millennials: Individuals born between 1981 and 1996, known for being tech-savvy, team-oriented, and valuing work-life balance and career growth.

Minimum Wage: The lowest hourly rate that employers can legally pay employees, as established by federal, state, or local laws.

Merit Increase: A salary raise awarded to employees based on their performance and achievements, as part of a performance management system.

Metrics: Quantifiable measures used to track, evaluate, and improve organizational performance, such as turnover rates, time-to-hire, or employee satisfaction.

Mission Statement: A formal statement outlining an organization’s purpose, values, and key goals, serving as a guiding principle for business operations.

Mitigating Circumstances: Specific conditions or factors considered when determining the outcome of employee performance issues, policy violations, or grievances.

Moonlighting: The practice of working a second job outside of one’s primary employment, often requiring approval from the employer to avoid conflicts of interest.

Mentorship Program: A structured program pairing experienced employees (mentors) with less experienced employees (mentees) to foster learning and career development.

Multi-State Employer: An employer operating in multiple states, requiring compliance with various state-specific labor laws, taxes, and regulations.

Mutual Agreement Termination: A situation in which both the employer and employee agree to end the employment relationship under agreed-upon terms.

N

Nepotism: The practice of favoring relatives or friends in hiring, promotion, or other employment decisions, often leading to perceptions of unfairness or bias.

Net Pay: The amount of an employee’s wages remaining after all deductions, including taxes, benefits, and garnishments, have been subtracted from gross pay.

New Hire Orientation: A structured program designed to familiarize new employees with company policies, culture, and job responsibilities, helping them integrate successfully.

New Hire Report: A mandatory report submitted to state agencies, typically within 20 days of hiring a new employee, used to track employment for tax and child support purposes.

Non-Compete Agreement: A legal contract that restricts an employee from working for competitors or starting a competing business for a specific period and location after leaving the company.

Non-Disclosure Agreement (NDA): A legal contract in which an employee agrees not to disclose confidential company information to unauthorized parties during or after employment.

Non-Discrimination Testing: Tests conducted to ensure that employee benefit plans, such as retirement plans, do not disproportionately favor highly compensated employees or key individuals.

Non-Qualified Plans (W-2): Retirement plans that do not meet IRS guidelines for tax benefits and are often used to provide additional compensation to executives or key employees.

Nonresident Alien: A foreign individual who is not a U.S. citizen and does not meet residency requirements for tax purposes, typically subject to specific tax withholding rules.

Nondiscretionary Bonus: A bonus that employees are entitled to receive based on specific criteria, such as performance metrics, attendance, or contractual obligations.

Normal Retirement Age: The age at which an employee becomes eligible to retire with full benefits under their employer’s retirement plan, often defined as 65 years old.

Notice Period: The time frame an employee or employer is required to provide before ending the employment relationship, as defined by company policy or employment contracts.

Numerical Rating System: A performance evaluation method where employees are rated on a numerical scale to measure their performance against defined criteria.

O

Occupational Safety and Health Administration (OSHA): A U.S. federal agency that sets and enforces workplace health and safety standards to ensure safe working conditions for employees.

Occupational Stress: The physical and emotional strain resulting from work-related pressures, such as high workloads, tight deadlines, or poor work-life balance.

Offboarding: The structured process of managing an employee’s exit from a company, including knowledge transfer, exit interviews, and recovering company property.

On-Call Schedule: A work arrangement where employees are available to work outside of normal hours, often in response to emergencies or operational needs.

Onboarding: The process of integrating new employees into the organization, including orientation, training, and providing resources to ensure a successful start.

Open Door Policy: A management practice encouraging employees to approach leadership with concerns, questions, or feedback at any time, fostering open communication.

Operating Budget: A detailed financial plan outlining the projected expenses and revenues needed to run daily business operations over a specific period.

Org Chart: A visual representation of an organization’s structure, displaying roles, reporting lines, and relationships between employees and departments.

OSHA Form 300: A log of work-related injuries and illnesses that employers are required to maintain as part of OSHA’s recordkeeping requirements.

OSHA Form 301: An incident report form used to document the details of work-related injuries and illnesses, including the cause and nature of the incident.

Overtime: Hours worked beyond the standard 40-hour workweek, for which non-exempt employees must be compensated at a premium rate, typically 1.5 times their regular pay.

Organizational Culture: The shared values, beliefs, and behaviors that define how employees interact and work within an organization.

Organizational Development (OD): A systematic approach to improving an organization’s effectiveness through planned changes in processes, behaviors, and culture.

Outplacement Services: Support provided to employees who have been laid off, including career counseling, resume assistance, and job placement services.

Overtime Exemption: A classification under the Fair Labor Standards Act (FLSA) that excludes certain employees from overtime pay eligibility based on job duties and salary level.

P

P and L Statement: A Profit and Loss Statement is a financial report summarizing a company’s revenues, costs, and expenses over a specific period to determine profit or loss.

Paid Holidays: Days off with pay provided to employees for recognized holidays, such as Christmas, Thanksgiving, or Independence Day.

Paid Time Off (PTO): A flexible leave policy where employees are given a set number of paid days off for personal, vacation, or sick leave.

Parental Leave: Job-protected leave provided to employees for the birth, adoption, or foster placement of a child, often paid or unpaid depending on company policies or laws.

Part-Time Hours: A work schedule where employees work fewer hours than full-time status, typically defined as less than 30-35 hours per week.

Partial Pay: Compensation provided to employees that is less than their standard earnings, often seen during reduced work schedules or partial leave.

Passive Candidate: A qualified individual who is not actively looking for a job but may consider new opportunities if approached.

Pay Calculation: The process of determining an employee’s total earnings by factoring in hours worked, pay rate, bonuses, deductions, and overtime.

Pay Group: A classification used in payroll systems to organize employees by similar payment structures, such as hourly or salaried workers.

Pay Period: The recurring schedule on which employees are paid, such as weekly, biweekly, semimonthly, or monthly.

Pay Stub: A document provided to employees detailing their earnings, deductions, taxes withheld, and net pay for a specific pay period.

Payroll: The process of calculating, managing, and distributing employee wages, deductions, and taxes while ensuring compliance with labor laws.

Payroll Activities: Tasks involved in payroll processing, such as calculating wages, withholding taxes, processing deductions, and ensuring timely payment to employees.

Payroll Deduction: Amounts subtracted from an employee’s gross wages for taxes, benefits, or other contributions, such as retirement plans.

Payroll Liabilities: Outstanding financial obligations related to payroll, including wages owed, taxes withheld, and employer contributions.

Payroll Register: A detailed report summarizing employee earnings, taxes, deductions, and net pay for a specific pay period.

Payroll Security: Measures implemented to protect sensitive payroll data and ensure accurate and compliant payroll processing.

Payroll Service: Third-party providers that handle payroll processing, tax filings, and compliance for businesses to save time and reduce errors.

Payroll Software: Digital tools that automate payroll processes, including wage calculations, tax withholdings, and reporting.

Payroll Tax Rates: The percentages of employee wages withheld for Social Security, Medicare, and federal/state taxes, as determined by law.

PCORI Fees: Fees under the Affordable Care Act (ACA) paid by employers or insurers to fund the Patient-Centered Outcomes Research Institute.

People Operations: A modern term for Human Resources, focusing on employee experience, organizational culture, and talent management to drive business outcomes.

Per Diem: A daily allowance provided to employees to cover expenses like meals, lodging, and travel during business trips.

Performance Improvement: The process of identifying and addressing performance gaps through feedback, coaching, and training to help employees meet expectations.

Performance Management: An ongoing process of setting goals, evaluating performance, and providing feedback to ensure employees align with organizational objectives.

Performance Review: A formal evaluation of an employee’s job performance, often conducted annually or quarterly to provide feedback and identify growth opportunities.

Personal Income Tax (PIT): Taxes levied on an individual’s earnings by federal, state, or local governments, withheld directly from wages.

Pre-tax Deduction: Contributions subtracted from an employee’s gross earnings before taxes are applied, such as retirement savings or health insurance premiums.

Preferred Provider Organization (PPO): A type of health insurance plan offering flexibility to choose healthcare providers, both in-network and out-of-network, without requiring referrals.

Prevailing Wages: The minimum wage rates established for specific jobs in public works projects, determined by government or labor agreements.

Prior Period Adjustment: A correction made to financial records to address errors or omissions from a previous accounting period.

Professional Employer Organization (PEO): A company that provides comprehensive HR outsourcing services, including payroll, benefits, compliance, and risk management.

Professional References: Individuals, such as former employers or colleagues, who can provide insights into a candidate’s qualifications, work ethic, and performance.

Profit and Loss Statement: Another term for a P and L Statement, it summarizes a company’s financial performance by detailing revenues, costs, and net income.

Proof of Insurance: Documentation confirming that an individual or company holds active insurance coverage, such as health, liability, or worker’s compensation.

Prorate: The calculation of partial amounts, such as pay, leave, or benefits, based on time worked or used within a specific period.

Q

Qualifying Life Event for Insurance: A significant life change, such as marriage, birth, divorce, or job loss, that allows employees to make changes to their health insurance plans outside the open enrollment period.

Quarterly Federal Tax Return: A form (typically IRS Form 941) filed quarterly by employers to report wages paid, federal income taxes withheld, and Social Security and Medicare taxes owed.

Quiet Firing: The practice of indirectly encouraging employees to leave by creating an unwelcoming work environment, such as withholding growth opportunities or assigning unchallenging tasks, instead of formally terminating them.

Quiet Hiring: A strategy where employers fill skill gaps or critical roles without external hiring, often by reallocating current employees or using temporary workers.

Quiet Quitting: A workplace trend where employees consciously limit their efforts to only the essential duties of their role, often as a form of boundary-setting to prioritize personal well-being, rather than fully disengaging.

Qualified Domestic Relations Order (QDRO): A court order allowing the division of retirement plan benefits between a plan participant and an alternate payee, such as a spouse, during divorce proceedings.

R

Real-Time Processing: The immediate processing of payroll, data, or transactions without delay, ensuring accurate and up-to-date records for HR and accounting functions.

Recruitment Software: Digital tools used to streamline and manage the hiring process, including job posting, applicant tracking, and candidate evaluation.

Redundancy: A situation where a position is eliminated due to business changes, such as restructuring or downsizing, often resulting in layoffs.

Regular Time: The standard hours an employee is expected to work, typically up to 40 hours per week, before overtime pay is triggered.

Resenteeism: The phenomenon where employees remain in a job despite feeling disengaged, resentful, or dissatisfied, often impacting team morale and productivity.

Rest Periods: Short, paid breaks provided to employees during their workday, often mandated by labor laws to promote productivity and reduce fatigue.

Retaliation: Adverse actions taken against an employee for engaging in legally protected activities, such as filing complaints, whistleblowing, or participating in investigations.

Retention Strategy: A set of initiatives designed to keep valuable employees engaged, satisfied, and committed to the organization, reducing turnover.

Retro Pay: Retroactive payment made to an employee to correct previous payroll errors, such as underpaid wages or missed raises.

Rightsizing: Adjusting an organization’s workforce to optimize efficiency and align with current business needs, which may involve layoffs, role changes, or restructuring.

Relocation Assistance: Financial and logistical support provided by employers to employees who are required to move for work-related reasons.

Repatriation: The process of reintegrating an employee back into their home country and organization after completing an international assignment.

Risk Management: The process of identifying, assessing, and mitigating risks to ensure employee safety, legal compliance, and organizational stability.

Role Clarity: Ensuring employees clearly understand their job responsibilities, expectations, and reporting relationships to minimize confusion and enhance performance.

Recognition Programs: Structured initiatives aimed at acknowledging and rewarding employee achievements, contributions, and milestones to boost morale and engagement.

S

S Corporation: A type of corporation that allows income, losses, and deductions to pass directly to shareholders, avoiding double taxation, while meeting IRS criteria.

Sabbatical Leave: An extended, paid, or unpaid leave offered to employees for personal or professional development, typically after a significant period of service.

Salaried Employee: An employee who receives a fixed, regular payment, typically on a biweekly or monthly basis, regardless of the number of hours worked.

Salaried Non-Exempt: A salaried employee who is eligible for overtime pay under the Fair Labor Standards Act (FLSA) because their duties do not meet exemption requirements.

Salary Basis Test: A test under the FLSA used to determine whether an employee qualifies as exempt from overtime based on being paid a guaranteed, fixed salary.

SDI Tax: State Disability Insurance tax, a payroll tax deducted in certain states to fund temporary disability benefits for eligible employees.

Seasonal Employment: Temporary work performed during peak seasons, such as holidays or summer months, where demand for labor increases.

Secondary Insurance: An additional insurance policy that covers medical costs not fully paid by a primary insurance plan, reducing out-of-pocket expenses.

Self-Employed Health Insurance Deduction: A tax deduction allowing self-employed individuals to deduct health insurance premiums for themselves and their dependents.

Self-Employment Tax: A tax paid by self-employed individuals to cover Social Security and Medicare contributions, calculated based on net earnings.

Shift Differential: Additional pay provided to employees working less desirable shifts, such as nights, weekends, or holidays, to compensate for inconvenience.

Sick Leave Pay: Compensation provided to employees for time off due to illness or medical reasons, often outlined in company policies or mandated by law.

Skills Gap: The disparity between the skills employers need and the skills job applicants or current employees possess, often addressed through training or upskilling.

Small Business: A company with limited employees or revenue, as defined by the Small Business Administration (SBA), often eligible for special loans or benefits.

Social HR: The use of social media tools and platforms to engage employees, recruit talent, and promote organizational culture.

Social Media Background Screening: Reviewing a candidate’s public social media presence as part of the hiring process to assess character, professionalism, or potential risks.

Social Media Recruiting: The practice of using social media platforms to attract, engage, and hire potential candidates.

Social Security Administration: A U.S. government agency that oversees the Social Security program, including retirement, disability, and survivor benefits.

Social Security Number (SSN): A unique nine-digit identification number issued by the U.S. government to track individuals for tax and benefits purposes.

Social Security Tax: A payroll tax under the Federal Insurance Contributions Act (FICA) that funds Social Security benefits, split between employers and employees.

Social Security Tips (W-2): Reported tips subject to Social Security tax, included on an employee’s W-2 form for tax purposes.

Social Security Wages (W-2): Total wages subject to Social Security tax, reported on the annual W-2 form.

Sole Proprietorship: A business structure where a single individual owns and operates the business, assuming full liability for debts and obligations.

Sourcing: The process of identifying and attracting potential candidates for current or future job openings through various channels, such as job boards or networking.

Standard Deduction: A set dollar amount taxpayers can subtract from their income to reduce taxable income, based on filing status.

Standard Hours: The typical number of work hours an employee is expected to work in a day, week, or month as defined by the organization.

State Unemployment Tax Act (SUTA): State-mandated taxes paid by employers to fund unemployment benefits for eligible workers.

State Withholding Tax: Income taxes withheld from employees’ paychecks by state governments to meet state tax obligations.

Statutory Employee: A worker classified as an employee for specific tax purposes, such as Social Security and Medicare, but otherwise treated as an independent contractor.

Stay Interviews: One-on-one discussions between managers and employees to understand what motivates them to stay and identify areas for improvement.

Straight-Time Pay: Regular pay for hours worked, excluding overtime, calculated at the employee’s standard hourly rate.

Substantial Limitation: A significant restriction in a major life activity, often used to determine eligibility for accommodations under the Americans with Disabilities Act (ADA).

Succession Plan: A strategy for identifying and developing future leaders within an organization to ensure continuity in key roles.

SUI (State Unemployment Insurance): State-funded insurance that provides temporary financial assistance to eligible workers who lose their jobs through no fault of their own.

Summary Dismissal: Immediate termination of an employee without notice due to serious misconduct, such as fraud or workplace violence.

Summary Plan Description (SPD): A document provided to employees summarizing the key features of employer-sponsored benefits plans, including eligibility and coverage.

Supplemental Unemployment Benefits: Additional unemployment compensation provided by employers, often through trust funds, to supplement state unemployment benefits.

Supplemental Wages: Additional compensation paid to employees, such as bonuses, overtime, or commissions, often taxed differently than regular wages.

T

Talent Acquisition: The strategic process of identifying, attracting, and hiring qualified candidates to meet current and future workforce needs.

Talent Management: A comprehensive approach to recruiting, developing, retaining, and promoting employees to align with organizational goals.

Tangible Rewards: Physical or monetary rewards, such as bonuses, gifts, or salary increases, provided to employees to recognize performance or achievements.

Targeted Recruiting: A recruitment strategy focused on attracting candidates with specific skills, experience, or qualifications to meet organizational needs.

Tax Credit: A financial incentive that reduces the amount of taxes owed by employers or individuals, often offered for hiring specific demographics or implementing certain programs.

Tax Levy: A legal process where a government authority seizes a portion of an employee’s wages or assets to satisfy unpaid tax obligations.

Taxable Wage Base: The maximum annual earnings subject to payroll taxes, such as Social Security or unemployment taxes, set by federal and state regulations.

Termination Letter: A formal document provided to an employee upon dismissal, outlining the reason for termination, final pay, and relevant details.

Time Tracking: The process of recording and monitoring employees’ work hours, attendance, and overtime for payroll and productivity purposes.

Time-to-Hire: A metric measuring the time taken from identifying a job vacancy to successfully hiring a candidate, often used to assess recruitment efficiency.

TIN Number: A Taxpayer Identification Number issued by the IRS to identify individuals or businesses for tax purposes, including Social Security Numbers (SSNs) and Employer Identification Numbers (EINs).

Total Remuneration: The sum of all forms of compensation an employee receives, including salary, bonuses, benefits, and incentives.

Transitional Employment: Temporary or modified work assignments provided to employees returning to work after injury, illness, or extended leave to ease reintegration.

Tuition Reimbursement: A benefit program where employers cover part or all of an employee’s education expenses for courses that enhance job-related skills or qualifications.

Turnover Rate: The percentage of employees who leave an organization over a specific period, often calculated to identify trends and address retention challenges.

Temporary Employment: A work arrangement where individuals are hired for a limited duration, such as seasonal or project-based roles.

Training Needs Analysis: The process of assessing an organization’s training gaps and identifying the skills or knowledge employees need to perform effectively.

Telecommuting: A flexible work arrangement where employees perform job duties remotely, typically from home, using digital communication tools.

Time Off in Lieu (TOIL): A system where employees are given additional paid time off instead of overtime pay for extra hours worked.

Total Compensation Statement: A document summarizing all aspects of an employee’s pay, including base salary, bonuses, benefits, and other rewards.

U

Union: An organized group of employees who collectively negotiate with employers over wages, benefits, working conditions, and other employment terms.

Upward Mobility: The opportunity for employees to advance to higher positions or roles within an organization, often through career development, training, and promotions.

Utilization Analysis: A report that compares the composition of an organization’s workforce to the relevant labor market to identify underrepresentation and support affirmative action goals.

Unemployment Benefits: Financial assistance provided to eligible individuals who lose their jobs through no fault of their own, funded by employer-paid state unemployment taxes.

Unemployment Insurance (UI): A state- and federally-funded program providing temporary financial support to unemployed individuals while they seek new work opportunities.

Underemployment: A situation in which an employee works fewer hours than desired or is overqualified for their current role, leading to underutilization of their skills.

Upskilling: The process of providing training to employees to enhance their existing skills, often in response to technological advancements or job role changes.

Unfair Labor Practice (ULP): Actions by employers or unions that violate the National Labor Relations Act (NLRA), such as interfering with employee rights or refusing to negotiate in good faith.

User Experience (UX) in HR: The overall experience employees and candidates have when interacting with HR tools, systems, and processes, impacting satisfaction and engagement.

V

acation Pay: Compensation provided to employees for time off during approved vacation periods, as part of their benefits package.

Virtual HR: The use of technology to deliver HR services remotely, including recruitment, onboarding, and employee engagement, often facilitated through cloud-based systems.

Voluntary Benefits: Optional benefits offered to employees, such as supplemental insurance, legal assistance, or wellness programs, typically funded through employee payroll deductions.

VTO (Voluntary/Volunteer Time Off): Paid or unpaid time off granted to employees for volunteering or participating in community service activities, often part of corporate social responsibility initiatives.

Vacancy Rate: A metric that measures the percentage of unfilled positions within an organization over a specific time period.

Values Statement: A formal declaration of an organization’s core values, guiding employee behavior, decision-making, and organizational culture.

Vision Statement: A forward-looking statement outlining an organization’s long-term goals and aspirations, providing a shared purpose for employees.

Vertical Organization: A traditional organizational structure characterized by clear hierarchical levels, where decision-making flows from top management downward.

W

W-2 Form: A tax form provided to employees by employers that reports annual wages, tips, and taxes withheld, used for filing personal income tax returns.

W-3 Form: A summary form submitted to the Social Security Administration that aggregates information from all W-2 Forms issued by an employer in a calendar year.

W-4 Form: A tax form completed by employees to inform employers of their federal tax withholding preferences based on filing status and allowances.

W-5 Form: A now-obsolete IRS form used to claim advanced payments of the Earned Income Credit (EIC) prior to its discontinuation.

W-9 Form: A tax form used to collect the Taxpayer Identification Number (TIN) of independent contractors or vendors for reporting income paid to the IRS.

Wage Drift: The difference between a worker’s agreed base salary and their actual earnings, often caused by overtime, bonuses, or additional pay.

Wage to Salary: The process of converting hourly wages into an equivalent annual salary based on the number of hours worked annually.

Wages: Monetary compensation paid to employees for work performed, calculated on an hourly, daily, or piece-rate basis.

Withholding: The portion of an employee’s wages deducted by the employer to pay federal, state, and local taxes, as well as other contributions such as Social Security.

Work Behavior: Observable actions and attitudes employees display in the workplace that contribute to job performance and team dynamics.

Work-Life Balance: The equilibrium between professional responsibilities and personal life, ensuring employees can manage both without stress or burnout.

Worker: A broad term referring to an individual who performs tasks or services for compensation, including employees, independent contractors, and freelancers.

Workers’ Compensation: Employer-provided insurance that offers financial and medical benefits to employees who suffer work-related injuries or illnesses.

Workforce Analysis: The process of examining an organization’s workforce to identify trends, gaps, and future staffing needs to inform HR planning.

Workweek: A defined period, typically seven consecutive days, used to calculate employee work hours, overtime, and payroll.

Y

Year to Date (YTD): A financial term referring to the period starting from the beginning of the current calendar or fiscal year up to the present date. It is used to track earnings, expenses, or other performance metrics over time.

Yield Ratios: Metrics that show the percentage of candidates advancing through each stage of the hiring process, helping to evaluate recruitment efficiency.

Z

Zero-Based Budgeting: A budgeting method where every expense must be justified for each new period, starting from a “zero base,” rather than adjusting from previous budgets.

Zero-Tolerance Policy: A strict workplace policy that prohibits specific behaviors, such as harassment or substance abuse, with clearly defined consequences for violations.

Zone Pay: A compensation strategy where pay rates are adjusted based on the geographic region’s cost of living or labor market conditions, ensuring equitable wages across different locations.

Z-Score: A statistical measurement often used in HR analytics to determine how an employee’s performance or a department’s metrics compare to the organizational average.

Common Misunderstood Terms in HR

The world of HR is filled with terms that can easily be misunderstood, leading to confusion and miscommunication. Understanding these terms is critical for maintaining compliance, fostering trust, and avoiding costly HR mistakes. Clarity ensures smoother processes and stronger employee relationships.

Job Classification vs. Job Description: While a job classification categorizes roles based on skills, responsibilities, and pay grades, a job description outlines the specific duties and requirements for a role.
Furlough vs. Layoff: A furlough is a temporary, unpaid leave where employees retain their jobs, while a layoff is often permanent or indefinite.
Non-Compete Agreement: Often misunderstood, this contract prevents employees from working with competitors within a certain timeframe and geographic location but must be legally enforceable.
Turnover vs. Attrition: Turnover includes all employee departures (voluntary or involuntary), while attrition refers to natural reductions, like retirements, without immediate replacement.
Exempt vs. Non-Exempt Employees: The key difference lies in overtime eligibility under the FLSA, not salaried versus hourly status. Exempt employees are not entitled to overtime, while non-exempt employees must be paid for hours worked over 40 in a week.
At-Will Employment: Employers can terminate employees at any time, but legal protections still apply, such as protections against discrimination, retaliation, and wrongful termination.
Independent Contractor vs. Employee: Independent contractors control how they perform their work and handle their own taxes, while employees are subject to employer control and receive tax withholdings and benefits.
Compensatory Time Off vs. Overtime: Comp time (time off in place of overtime pay) is typically limited to public-sector employees. Private employers must pay overtime for extra hours worked.

How to Stay Updated with Evolving HR Vocabulary

The world of human resources terminology is constantly changing, with new HR buzzwords, trends, and laws emerging all the time. Staying current with these changes is essential for HR professionals, managers, small business owners and anyone navigating the modern workplace.

The best ways to stay informed are:

Regularly review a trusted human resources glossary or HR words list to understand complex concepts in clear, actionable terms.
Subscribe to HR blogs, newsletters, and industry publications to stay updated on evolving HR terms and trends.
Attend webinars, conferences, or certification programs to deepen your understanding of critical HR topics.

Don’t underestimate the power of networking either! Engaging with peers and joining professional HR communities can help you learn new human resources vocabulary in real-world contexts. By staying proactive, you’ll confidently navigate any new term or trend that comes your way.

Final Thoughts

Understanding HR terms and the evolving language of human resources helps you stay clear, confident, and effective in your role. Whether you’re decoding policies, navigating challenges, or communicating with your team, having a solid grasp of human resources terminology makes a real difference.

As the workplace continues to evolve, staying updated with resources like this human resources glossary can help you keep pace with new ideas and trends. By embracing continuous learning and applying these concepts, you’ll not only strengthen your skills but also contribute to a more efficient and supportive workplace.

Keep this guide close as a reference, and let it inspire you to confidently tackle the ever-changing world of HR.

FAQs

Q: What is an HR glossary, and why is it useful?
A: An HR glossary is a resource that defines important HR terms and human resources terminology in clear, easy-to-understand language. It helps HR professionals, managers, and employees communicate effectively and stay aligned on workplace concepts.

Q: How can I keep up with new HR buzzwords and terminology?
A: Staying updated on HR buzzwords and human resources vocabulary can be done by subscribing to HR newsletters, attending webinars, reading industry publications, and consulting a reliable HR glossary.

Q: What is the difference between HR terms and HR buzzwords?
A: HR terms refer to established concepts like “onboarding” or “payroll,” while HR buzzwords are trend-focused phrases like “quiet quitting” that reflect emerging workplace ideas.

Q: Why is understanding human resources terminology important?
A: Clear knowledge of human resources terminology ensures effective communication, accurate compliance with policies, and better decision-making in managing people and processes.

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