What is a job description?

A job description is a written explanation that outlines the essential responsibilities and requirements for a vacant position. Job descriptions should be thorough, clear, and concise and include:  A brief introduction to the company and its missionAn overview of the job responsibilities  The necessary skills, competence levels, knowledge, and qualificationsTesting that the company may require Environmental factors or strenuous components of the jobThe type of employment—full-time, part-time, or independent contractor Why should HR leaders care about job descriptions? Job descriptions are an indispensable tool. A crystal-clear job description enables HR to: Define…

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HR How-To's

What is salary benchmarking?

Salary benchmarking is the process of evaluating a company’s internal job salaries based upon their external value. Salary benchmarking involves analyzing the main components of each position and comparing these positions to similar jobs in other companies. Organizations primarily rely on compensation surveys, government labor databases, and the assistance of compensation consultants for accurate job market data. Why should HR leaders care about salary benchmarking? Salary benchmarking helps compensation managers create competitive salaries. Though compensation isn’t the only important aspect of a job, it's obviously an essential factor, as everyone…

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HR How-To's

What is workplace bullying?

Workplace bullying refers to repeated abusive behavior that is demeaning or threatening and damages the targeted individual's wellbeing. Some examples of workplace bullying include:  Sabotaging an employee's project Ruining a coworker's social statusIntentionally spreading rumorsExclusion from meetingsVerbal attacks While workplace bullying can take many different forms, typically, the perpetrator aims to callously instill the targeted person with a feeling of victimhood and a sense of powerlessness.  Why should HR leaders care about workplace bullying? Individuals naturally think differently and have their own prejudices and perspectives, so friction between coworkers, in a…

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Culture

What are exempt and non-exempt employee statuses?

Exempt and non-exempt employee statuses are taken from the FLSA (Fair Labor Standards Act) employee classification system. Exempt employees earn a salary, not an hourly wage. They are exempt from receiving overtime pay and cannot qualify to receive it. Exempt employees make a minimum of $35,568 a year and are generally skilled professionals working in white-collar positions. Doctors, lawyers, accountants, HR managers, and engineers, for instance, qualify as exempt. The different types of exemptions include: Outside salesHighly-compensated employeesComputerProfessionalAdministrativeExecutive Non-exempt employees, in contrast, earn hourly wages. Non-exempt employees must receive minimum…

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HR Strategy

What is unconscious bias in the workplace?

Unconscious bias in the workplace refers to the human tendency to form opinions about others in the office without having enough relevant information. Bias can stem from stereotypes, preconceived notions, past experiences, or gut instinct. Unconscious bias occurs when an individual is unaware of a prejudice. For instance, a manager may tend to favor people with a similar educational background—without realizing it. Why should HR leaders care about unconscious bias in the workplace? Through aspiring to turn unconscious bias into conscious bias, people can build an awareness of their thinking…

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Culture

What is corporate social responsibility?

Corporate social responsibility (CSR) is a company's initiative to integrate charitable and environmentally sustainable practices into its culture. CSR stems from the idea that companies can increase their profits and make the world a better place at the same time. Though CSR is voluntary, societal pressure has impacted big corporations to incorporate CSR into their business models and brand. Some examples of CSR include: philanthropic contributions to charity organizations and human welfare,integrating sustainable energy or sustainable food sources,incorporating volunteer opportunities for people,reducing waste and environmental impact, andcreating more efficient manufacturing…

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Culture

What is employee empowerment?

Employee empowerment is a management strategy that encourages self-reliance, independence, and accountability among personnel. Rather than centralizing the leadership only among executives, employee empowerment calls on each employee to display leadership qualities appropriate for their position and capabilities.  Trust is the foundation of employee empowerment—employers need to believe that their employees will act intelligently and responsibly. Knowing that their employers trust them, in turn, gives people the space to think, act, and express themselves independently. While each company will determine how to apply employee empowerment, some common components include: delegating…

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Culture

What is indirect compensation?

Indirect compensation is a type of remuneration that typically encompasses non-monetary forms of payment. Direct compensation includes base pay, bonuses, commission, and incentives. Indirect compensation includes paid time off and overtime pay, as well as benefits that have financial value, but no cash value, such as: Insurance plansParental leaveTechnological devicesStock optionsRetirement planning and financial consultations Except for government-mandated benefits, organizations can choose which forms of indirect compensation to incorporate.  Why should HR leaders care about indirect compensation? Understanding indirect compensation is essential for HR leaders. During the hiring process, candidates…

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What are supplemental wages?

Supplemental wages are payments that employers provide to employees in addition to their regular wages. While regular wages are comprised of hourly wages or a monthly salary, supplemental wages can include earnings such as: Severance payBonusesCommissionsOvertime payAwardsVacation payAccumulated sick leave paymentsRetroactive pay increases As an enhancement of the basic compensation plan, supplemental wages are subject to specific tax regulations. By law, employers potentially have to withhold tax from supplemental wages differently than from regular wages. Withholding tax from supplemental wages depends on: The total amount of supplemental wages paid annually—if…

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What is an affirmative action plan?

An affirmative action plan (AAP) is a written document designed to promote equal employment and career opportunities for minorities. The term “affirmative action” was first coined by President John F. Kennedy in a 1961 executive order. He requested that employers “take affirmative action to ensure that applicants are employed, and that employees are treated during employment, without regard to their race, creed, color, or national origin.” Today, affirmative action has transformed, encompassing affirmative action programs that target underrepresented groups in the workplace. AAPs use company data from previous years to…

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What is nondiscrimination testing?

Nondiscrimination testing is an annual IRS-mandated evaluation of employee retirement, health, and welfare plans that ensures equal benefits for all employees, notwithstanding their position in the company. Nondiscrimination testing is part of the federal law ERISA (Employee Retirement Income Security Act of 1974), which requires a minimum investment in retirement and health care plans. While organizations can offer specific benefits to employees of different tiers, benefits covered by nondiscrimination testing must be offered equally to all personnel.   The IRS relies on non-discrimination testing to:  Check that all employees, not just…

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What is a DE&I dashboard?

A DE&I dashboard is an interface that provides a visual representation of company diversity, equity, and inclusion practices and outcomes. The dashboard reflects the DE&I status by representing the data through graphs, charts, and other visuals that can be read at a glance. A DE&I dashboard reflects the status of the workforce in areas such as: GenderReligious beliefsNeurodiversityAgeNational originSoft skills Why should HR leaders care about a DE&I dashboard? Rather than sifting through spreadsheets, metrics, and surveys, HR leaders can use a dashboard to provide a simple visual representation. Clear…

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What is the Americans with Disabilities Act (ADA)?

The Americans with Disabilities Act (ADA) of 1990 is a civil rights law that protects disabled individuals from discrimination throughout different areas of everyday life. The ADA protects those who have “a mental or physical disability that substantially limits one or more major life activities,” as well as those who "are perceived by others as having such an impairment." In addition to keeping discrimination at bay in employment, the ADA aims to ensure that disabled individuals have equal access to: Government servicesBuying merchandiseCommercial facilities Public transportation Why should HR leaders care…

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What is a learning management system?

A learning management system (LMS) is software companies use to train and educate employees, clients, and business partners. Traditionally, work training programs would take place in person over a few hours or days. LMS technology, however, streamlines this learning process. It provides a one-stop-shop for educational content, offering learning options including videos, programs, courses, quizzes, and guides. Furthermore, the content can be live or recorded so individuals in different locations, time zones, and companies can easily access it. Companies use LMSs to: Create informational contentOrganize it in a centralized digital…

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What are KPIs?

KPIs (Key Performance Indicators) are metrics that reflect how successful a company is in reaching its business goals. KPIs can be quantitative or qualitative. Quantitative KPIs are typically expressed through a percentage. Examples include: Employee growth rateAbsenteeism rate Career path ratio  Qualitative KPIs can express the final result through a numerical value, yet they draw data from subjective feedback, such as employee surveys. Some examples are: Employee net promoter scoreQuality of hireApplicant satisfaction Why should HR leaders care about KPIs? KPIs assist HR leaders in monitoring progress, identifying flaws, enhancing performance,…

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