HR Glossary
Plain-English definitions of human resources, payroll, recruiting, and compliance terms. Built for HR professionals and small business owners.
Human Resources
Employee Engagement
Employee engagement is the emotional commitment and connection an employee has to their organization, driving productivity, retention, and performance beyond simple job satisfaction.
Employee Handbook
An employee handbook is a comprehensive document outlining a company's policies, procedures, expectations, and benefits, serving as both a reference guide and legal safeguard.
Employee Offboarding
Employee offboarding is the structured process of managing an employee's departure from an organization, including exit interviews, knowledge transfer, and access revocation.
Employee Onboarding
Employee onboarding is the process of integrating new hires into an organization, covering everything from paperwork and training to culture orientation and role-specific setup.
Employee Turnover Rate
Employee turnover rate measures the percentage of employees who leave an organization during a given period, serving as a critical indicator of organizational health and retention effectiveness.
eNPS (Employee Net Promoter Score)
Employee Net Promoter Score measures how likely employees are to recommend their workplace to others, scored on a scale from -100 to +100.
Exit Interview
An exit interview is a structured conversation with a departing employee to understand their reasons for leaving, gather feedback, and identify organizational improvements.
HRIS (Human Resource Information System)
An HRIS is a software system for managing employee data, HR processes, and organizational information in a centralized digital platform.
HRMS (Human Resource Management System)
An HRMS is software that combines core HR functions like payroll, benefits administration, time tracking, and employee data management into a single platform.
Probationary Period
A probationary period is a defined timeframe (typically 30-90 days) at the start of employment during which a new hire's performance, skills, and cultural fit are closely evaluated.
Succession Planning
Succession planning is the strategic process of identifying and developing internal employees to fill key leadership and critical roles, ensuring business continuity and preserving institutional knowledge.
Recruiting
ATS (Applicant Tracking System)
An applicant tracking system is software that automates the recruiting process by managing job postings, applications, candidate communication, and hiring workflows.
Background Check
An employment background check is a screening process to verify a candidate's history — including criminal records, employment, education, and credit — before making a hiring decision.
Job Offer
A job offer is a formal proposal from an employer to a candidate, defining the role, compensation, benefits, and terms of employment. Written offer letters are strongly recommended.
Talent Acquisition
Talent acquisition is the strategic, ongoing process of attracting and hiring skilled individuals through employer branding, talent pipelines, and data-driven recruiting aligned with business goals.
Payroll
Direct Deposit
Direct deposit is an electronic payment method where an employer transfers wages directly into an employee's bank account through the ACH network, eliminating paper checks.
Gross Pay vs Net Pay
Gross pay is total earnings before deductions; net pay is take-home pay after taxes, benefits, and other deductions are subtracted. The average employee takes home 60-75% of gross pay.
Overtime Pay
Overtime pay is the additional compensation employers must pay non-exempt employees who work more than 40 hours in a workweek, at a rate of at least 1.5 times their regular pay.
Pay Stub (Paycheck Stub)
A pay stub is a document that accompanies each paycheck, detailing gross pay, deductions (taxes, insurance, retirement), and net pay for a specific pay period.
Benefits
401(k) Retirement Plan
A 401(k) is an employer-sponsored retirement plan that allows employees to save and invest a portion of their paycheck on a pre-tax or post-tax (Roth) basis for retirement.
COBRA (Health Insurance Continuation)
COBRA gives employees and their families the right to continue employer-sponsored health insurance for a limited period after losing coverage due to qualifying events like job loss.
PTO (Paid Time Off)
Paid time off is a company benefit that allows employees to take time away from work while still receiving their regular pay.
Workers' Compensation
Workers' compensation is a state-mandated insurance program that provides benefits to employees who suffer work-related injuries or illnesses, regardless of fault.
Compliance
1099 Employee (Independent Contractor)
A 1099 employee is actually an independent contractor who receives a 1099 tax form instead of a W-2, meaning they are not technically an employee of the company.
At-Will Employment
At-will employment is a legal doctrine allowing either the employer or employee to end the employment relationship at any time, for any lawful reason, with or without notice.
Exempt vs Non-Exempt Employees
Exempt and non-exempt are FLSA classifications that determine whether an employee is entitled to overtime pay. Non-exempt employees must receive overtime for hours worked beyond 40 per week.
FLSA (Fair Labor Standards Act)
The Fair Labor Standards Act is the primary federal law governing minimum wage, overtime pay, recordkeeping standards, and child labor protections for US workers.
FMLA (Family and Medical Leave Act)
The Family and Medical Leave Act entitles eligible employees to take up to 12 weeks of unpaid, job-protected leave per year for specified family and medical reasons.
I-9 Form (Employment Eligibility)
The I-9 form is a federal document that every US employer must complete for each new hire to verify the employee's identity and authorization to work in the United States.
W-2 vs 1099: Employee vs Contractor
W-2 workers are employees who receive benefits, have taxes withheld, and work under employer control. 1099 workers are independent contractors who handle their own taxes and work independently.
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