Glossary

Salary-review-Glossary-banner

What is salary review?

What is a salary review? A salary review is the evaluation process that managers conduct to determine if employees' salaries fairly and accurately reflect their work performances. A thorough salary review depends on these factors: Employee work performance or performance review resultsPositionEmploye value in the external job marketDesignated compensation budget Why should HR leaders care about salary reviews? Salary reviews offer employees the chance to receive compensation that matches their work performance. Salary reviews can also improve employee: RetentionEngagementProductivityWork performance What can HR leaders do to implement effective salary reviews?…

Workplace-stress-Glossary-banner

What is workplace stress?

What is workplace stress? Workplace stress refers to the physical, mental, or emotional reactions of employees when coping with demanding circumstances beyond their capabilities. Work-related circumstances that often trigger high-stress levels in employees: ProductivityRetentionCreativity What can HR do to successfully manage stress in the workplace? There will always be stress in the workplace; meeting deadlines, juggling projects, and dealing with conflicts are all a part of work. HR leaders, however, can mitigate workplace stress for employees by implementing these ideas: Set the tone in the workplace. HR professionals can lead…

Work-from-home-Glossary-banner

What is work from home?

What is work from home? Work from home implies that an employee primarily works from the company office, and occasionally works from home, yet only for specifically designated time periods. Employees often work from home one or two days a week, or a few days a month, provided that their manager and employer allow it. Why should HR leaders care about WFH? Working from home has become popular in the last decade, and has increased dramatically in recent times. In general, employees are attracted to jobs with WFH options because…

Remote-work-Glossary-banner

What is remote work?

What is remote work? Remote work is a work-style that takes place outside of the customary office setting, usually from a home office or coworking space, and is based upon constant communication with coworkers, managers, and clients, by phone, email, and videoconferencing. Remote work implies that employees either reside too far from the office to work on-site, travel while they work, or work for a virtual business. Usually, remote employees work from home or from coworking facilities, which provide a work-friendly atmosphere and the perks of an office. Why should…

Onboarding-Glossary-banner

What is onboarding?

What is onboarding? Onboarding is the process of incorporating a new employee into a company and familiarizing them with the company culture and policies, so they can become an effective and contributing member of the team. A good onboarding process is reminiscent of boarding a plane. At the beginning of an adventure, you’re greeted by someone who’s happy to have you. They help you find your seat and get acclimated so the flight will be comfortable and you’ll get to your destination safely. New employee onboarding programs should help new…

Offboarding-Glossary-banner

What is offboarding?

What is offboarding? Offboarding is the process of disengaging an employee from their position within a company, a practice used both for employees who choose to leave, and for those who are laid off. While the onboarding process is reminiscent of boarding a plane, helping new hires acclimate to a new job, the offboarding process refers to disembarking, providing employees with a structured framework when leaving a position. A good offboarding program should: Minimize disruption within the companyProtect confidential company informationGain helpful feedback from the exiting employeeInclude a gracious goodbye…

Humanity-in-the-workplace-Glossary-banner

What is humanity in the workplace?

What is humanity in the workplace? Humanity in the workplace is expressed through the innate, shared, human values, and unique talents and perspectives which employees contribute. Humanity is dynamic, and encompasses the natural, human, need for: PurposeGrowthAcceptanceCamaraderieRecognitionFairnessSafetyWork-life balance Why should HR leaders care about humanity in the workplace? The constant increase in Artificial Intelligence, combined with a stressful or even toxic corporate culture, can leave many employees feeling that they must leave their personality outside the workplace walls. This is a major turnoff for employees, so it's clear that humanity…

Empathy-in-the-workplace-Glossary-banner

What is empathy in the workplace?

What is empathy in the workplace? Empathy in the workplace is the ability to be understanding towards colleagues and sensitive to their unique perspectives, work styles, and ideas. As a key component of emotional intelligence, empathy is the foundation of treating others with acceptance and compassion. Why should HR leaders care about empathy in the workplace? Within the workplace ecosystem, empathy plays an essential role in company success. It’s a necessary ingredient to: Build healthy relationshipsValue othersCollaborateManage conflicts Ultimately, empathy leads to greater employee: LoyaltyEngagementRetention It’s also especially important for…

Compensation management

What is compensation management?

What is compensation management? Compensation management is the process of managing analyzing and determining the salary, incentives, and benefits each employee receives. Compensation managers aim to attract, retain, and engage employees by offering broad and competitive compensation plans within the company budget. A good onboarding process is reminiscent of boarding a plane. At the beginning of an adventure, you’re greeted by someone who’s happy to have you. They help you find your seat and get acclimated so the flight will be comfortable and you’ll get to your destination safely. Though remote…

Compensation-management-software-Glossary-banner

What is compensation management software?

What is compensation management software? Compensation management software is a dedicated planning system that streamlines employee data and budget planning to create optimum employee compensation packages. The goal of compensation management software is to lighten the workload for managers and HR professionals through: Helping users build competitive compensation packagesUser sharing of company compensation protocolsEnabling data import and exportIncluding a central dashboard that displays compensation data Why should HR Leaders care about compensation management software? A well-implemented compensation management software can reduce company costs and help managers and HR make smart,…

Attrition-Glossary-banner

What is attrition?

What is employee attrition? Employee attrition is the naturally occurring, voluntary departure of employees from a company. Employee attrition involves leaving a job for: Personal reasonsProfessional motivationJob mismatchIssues in the workplace Attrition differs from employee turnover. While a high turnover rate can cause company setbacks and the constant need for hires, the attrition process occurs inevitably, due to employee retirement or resignation, for example. A robust company can withstand such minor employee reduction and probably won’t seek immediate staff replacement. Why should HR leaders care about employee attrition? Called by…

Applicant-tracking-system-Glossary-banner

What is an applicant tracking system?

What is an applicant tracking system? An applicant tracking system (ATS) is a software that simplifies the recruitment process by helping HR sort through job applicants and selects the most suitable candidate. This sophisticated filing system organizes and stores applicants’ information in a centralized database, managing the entire recruitment process in one system. An ATS functions like a co-pilot to HR and performs these important tasks: Screens applicantsManages applicants during the recruitment processSchedules interviewsSources candidatesTracks candidates through the hiring processSends automated, customized emails Organizes paperwork for new hires Why should HR…

Performance-bonus-Glossary-banner.

What is a performance bonus?

What is a performance based bonus? A performance based bonus is an extra compensation granted to an employee as a reward for reaching pre-established goals and benchmarks. Employers often reward employees with performance bonuses after evaluating outstanding projects or high-quality work performances. Why should HR leaders care about performance bonuses? A well-designed performance bonus system based on fair criteria can stimulate employees to deliver quality work, reach set targets, and maintain motivation and productivity. What can HR leaders do to ensure effective implementation of performance bonuses? HR leaders can lead…

Merit-increase-Glossary-banner

What is a merit increase?

What is a merit increase? A merit increase is a salary raise granted to an employee for outstanding work performance or achievements. Eligibility for a merit increase is based on a company’s budget, internal criteria, merit metrics system, and the employee’s value in the job market. Companies use merit increases to reward top-performing employees and to motivate others to improve their work productivity. Why should HR leaders care about merit increases? A well-designed and effective merit increase program that rewards deserving employees can boost employee: RetentionProductivityEngagement Keeping high-quality employees engaged…

Objectives-of-compensation-management-Glossary-banner

What are the objectives of compensation management?

What are the objectives of compensation management? The objectives of compensation management are to attract, engage, and retain employees through competitive compensation plans that align with the company budget, corresponding job-market, and government regulations.Good compensation management should: Attract and recruit talentMotivate employeesMaintain moraleAdhere to government regulations and company compensation philosophy philosophyReflect the current job-market Compensation management can achieve its objectives by offering: Attractive salariesUseful benefitsBonuses, incentives, and programs to improve employee wellbeingRetirement savingsInsurance Why should HR leaders care about the objectives of compensation management? The objectives of compensation management are…