Glossary

Soft HRM and hard HRM are two opposing methods of Human Resource Management. HRM is the strategic approach toward acquiring, hiring, training, engaging, and retaining personnel.  Soft HRM emphasizes the human side of HR, recognizing that the workforce is composed of individuals with inherent ambitions and emotions. Soft HRM encourages employees to actualize their potential through practices such as: Two-way communication Business transparencyTraining and career development programsA democratic management style Hard HRM, in contrast, does not prioritize employees' need for self-actualization. Instead, it treats personnel as a resource that exists solely…

Overtime refers to the extra hours that employees work beyond their regular schedule.  In the U.S., employers must pay non-exempt employees a minimum of time and a half for each extra hour they work past forty hours a week. U.K. law takes a different approach, ruling that employers do not have to pay employees for overtime. However, U.K. employers must follow the employment contract and provide an average compensation that meets the National Minimum Wage standards.    Why should HR leaders care about overtime? Overtime laws and company overtime policy can…

Employee time tracking is the practice of monitoring and documenting the hours that each employee works. Companies can track work hours by requiring employees to clock in and out at designated times, such as starting and ending the workday and unplanned breaks.   Employees receiving hourly wages must monitor their work hours. Yet, for salaried workers, time tracking is also essential. And with a technologically advanced HRIS time and attendance tracking software that facilitates the process, people can track time effortlessly.  Why should HR leaders care about employee time tracking? Employee…

ONA is a structured charting method used to analyze how employees collaborate and contribute to their company. Individual influence levels are often hard to pinpoint within the traditional hierarchical business structure. Thus, ONA technology aims to identify and leverage the different types of influential employees and discover problem areas, so leaders can enhance the way people work together and share information.  Why should HR leaders care about ONA? ONA helps HR leaders analyze employee networking-- the work relationships that organically form between personnel. ONA adds another dimension to traditional workforce…

HR OKRs (Human Resources Objectives and Key Results) provide a framework that businesses can implement to establish objectives, monitor progress, and achieve desired results within HR processes.  Objectives are ambitious goals that motivate employees to stretch above and beyond their performance plateau. Objectives should be time-bound, executable, and improve the quality of a process or product. Key results are performance indicators that exhibit quantifiable success as a team progresses from point a to point b, measured through a numerical value or percentage.  HR OKRs enable HR leaders to track progress…

Gamification is the integration of games or game-like elements into business processes to boost employee participation and engagement. Gamification applies the same principles which attract people to recreational games such as football,  chess, or Minecraft to the workplace. Gamification in HR is often used to: Boost collaboration Streamline the onboarding processPromote innovation Elevate employee performance Increase the effectiveness of training and development programsImprove recruitment practices Gamification methods can be conspicuous, such as a reward or point system, leaderboards, badges, or pay raises. Or, it can be subtle, such as incorporating a captivating narrative…

Headcount is the number of people working in a company or in a department at any given time. Headcount, unless otherwise specified, includes everyone: full-time, part-time, temporary, and contract workers. The headcount metric enables HR professionals to: Monitor and improve workforce planningSupport efficiency and productivity among personnelForecast workforce developments Why should HR leaders care about headcount? Headcount is usually unnecessary for small companies with just a handful of employees. Yet firms with hundreds or thousands of staff should take headcount seriously. Measuring headcount throughout different periods enables HR leaders to…

A performance map is a chart that visually portrays employees’ performance to help leaders analyze their potential and capabilities. The performance map, like the 9-box grid, illustrates strengths and weaknesses. However, while the 9-box model is based solely on performance and potential, performance mapping allows leaders to choose any two factors and customize the grid.   Effective performance maps should: Spur dialogue concerning employee performanceProvide a clear visual depiction of job performanceStreamline the organization process and presentation of performance scores  Why should HR leaders care about performance maps? The performance map…

Disability leave is planned or unplanned time off from work for employees to cope with an illness, injury, or impairment that inhibits at least one of their essential life activities. The ADA (Americans with Disabilities Act) mandates that employers accommodate employees eligible for disability by affording them the necessary benefits and work adjustments. The FMLA also enables eligible employees to take medical leave for a disability. Depending on the case, employees could benefit from both the ADA and the FMLA. Personnel can receive disability insurance, or if injured at work,…

The EU whistleblowing directive is the European Union's protocol for protecting whistleblowers who report business practices that violate EU law. The European Union adopted this directive in October 2019 to ensure that employees working in the private and public sectors could speak out without facing retaliation from their employer.  The EU whistleblowing directive: Requires companies to implement safe communication channels for employees to disclose information Protects whistleblowers against "dismissal, demotion, and other forms of retaliation”  Ensures that national authorities "inform citizens and provide training for public authorities" on how successfully to handle…

Employee relations involves the continuous process of building healthy work relationships between employer and employee and among the staff. An employee relations manager focuses on resolving and avoiding issues concerning employees and formulating policies that encourage consistent, unbiased treatment of employees.  Why should HR leaders care about employee relations? Any relationship-- if it’s going to last-- takes constant, unfaltering effort from both sides. While employees must maintain their side of the contract, they also must feel they can trust their employer to do the same. If there is a lack…

An exit interview is a final meeting between a departing employee and an interviewer that marks the end of employment in its present state. As part of offboarding, the exit interview is an official way of tying up loose ends and gleaning valuable information from employees on their way out.    Why should HR leaders care about exit interviews? Exit interviews help ensure recovery of employer property and digitally stored data, thereby maintaining confidential company information and avoiding employee-employer lawsuits.   Moreover, the exit interview enables employers to gather, evaluate, and implement…

Fringe benefits are supplementary forms of payment that employers provide employees in addition to a salary. While employees must receive government-mandated core benefits, fringe benefits afford additional assistance to employees in their day-to-day lives. Employers can deliver fringe benefits in various forms, such as: Gift cardsSavings bondsCompany carStudent loan refinancing programCritical illness insurancePet insuranceProperty Fringe benefits are cash equivalent and can be qualified as taxable, partially taxable, non-taxable, or tax-deferred. Depending on the number of hours worked, companies also sometimes offer fringe benefits as an incentive to high-performing freelance workers. …

A compensation plan is a payment package designed to attract and retain employees. A basic compensation package consists solely of a salary or wages. A more comprehensive compensation could include additional benefits such as bonuses, perks, commission, health insurance, or retirement investments. Compensation plans involve offering fair and competitive payments that simultaneously align with the company budget and promote business success. Why should HR leaders care about a compensation plan? Compensation packages that adequately reward employees for their hard work can drive business profit. A thorough, effective compensation plan: Illustrates…

The 9-box model, also known as the 9-box grid, is a tool used to analyze, display, and compare employee work performance and potential. This user-friendly performance map is a talent management tool that helps HR and managers effectively identify leaders and strategically prepare employees for future roles. The 9-box model is a self-explanatory chart that helps leaders place the right person in the right position at the right time.  The grid includes an X and Y axis, with the X-axis representing performance and the Y-axis, potential. Leadership teams can measure…