Glossary

What is learning and development?

Learning and development (L&D) is an HR process that enables employees to upgrade their competencies and thereby strengthen their company’s performance. L&D equips personnel with the necessary skillset to assume new responsibilities or elevate their work performance within their current role. Employees can fortify their abilities in areas such as: Leadership Tech Data analysisPersonal developmentManagement Emotional Intelligence Why should HR leaders care about learning and development? L&D provides employees with the framework and resources to acquire empowering, essential skills to thrive in the evolving work world. Investing in employees’ work education can increase:…

What is a sabbatical?

What is a sabbatical? A sabbatical leave is a career break, usually between one and three months, that enables employees to pursue personal goals, reflect, and rejuvenate. Stemming from the old testament word, Shabbat, the weekly seventh day of rest, sabbaticals are not a new concept. In academia, taking a sabbatical is a common practice, and in the business world, they are gradually gaining traction. During a business sabbatical, employees may decide to: TravelResearchEngage in self-carePursue passionsSpend time with family Why should HR leaders care about sabbaticals? A sabbatical is…

What is people analytics?

What is people analytics? People analytics is a data-driven method that aims to improve business decisions regarding employees and customers. Rather than solely relying on instinct or anecdotal experience, people analytics provides HR leaders with comprehensive data to make evidence-based, strategic decisions. People analytics integrates HRIS software to assemble and examine extensive information, predict trends, and provide valuable insights relating to the different stages of the employee lifecycle. Also known as talent analytics, companies utilize people analytics to match the right talent in appropriate roles. Why should HR leaders care…

What is HR analytics?

What is HR analytics? HR analytics is a data-driven method of improving decisions that impact HR functions. HR analytics depends on the quality of the data collected from HR metrics, such as:   Time to hireTime to fillApplication drop out rateFirst-year turnover rateTop talent retention rateAverage absenteeism rateTraining expense per employeeEmployee engagement Human capital risk Why should HR leaders care about HR analytics? Utilizing data relevant to HR strategies enables HR leaders to identify successful practices and pinpoint weak areas in need of improvement. HR analytics enables strategic decision-making that can…

What is due diligence?

What is due diligence? Due diligence is the inspection of a business agreement to assess its integrity and the risks involved. Like preparing homework before an upcoming lesson, exercising due diligence equips the relevant parties with the information they need before entering into a business contract or mutual relationship. Examples of due diligence include: Checking references before signing on a new hireAnalyzing a company’s financial information before merging and acquisition (M&A)Investigating a product before closing with its vendorImplementing safety precautions to prevent employee injuries at work Reviewing and communicating job duties…

What is workforce analytics?

What is workforce analytics? Workforce analytics is a method of monitoring and examining employees’ work productivity to improve workflow. A branch of people analytics, workforce analytics relates to all types of employees: in-house, remote, freelance, and consultant. This powerful investigative tool relies on HR metrics to optimize talent acquisition, nurturing, and retention, enabling HR leaders to make data-driven decisions that boost employee success and employee experience. Workforce analytics can: Measure employee engagement Identify the determinants of employee engagementExamine current trends and predicting future onesAnalyze organizational structurePinpoint high-potential employees for leadership positionsSource…

What is employee development?

What is employee development? Employee development is a process of educating employees so they can continue providing valuable contributions to their company. With constant technological innovations challenging the status quo, encouraging employees to keep pace through improving their skills and enhancing their practical knowledge benefits them and their employer.  Why should HR leaders care about employee development? Sourcing, hiring, and training of new employees are expensive and time-consuming processes. Employee development, meanwhile, can offer an economical way to help employees elevate their work performance, contributing to an increase in: RetentionEngagementMotivationProductivityProfitability Company…

What is performance management?

What is performance management? Performance management is a comprehensive method of tracking employees' work performances and developing their skills so they can contribute optimally to department and company objectives. Performance management involves three phases that prompt individuals to improve their performance level: Planning. Establishing and measuring individual goals that also align with company objectives allows HR to assess employee improvements.Check-in. Managers and employees should meet routinely to engage in two-way conversations regarding areas for improvement and progress.Review. Frequent check-ins throughout the year prepare managers and employees for quarterly or biannual…

What is emotional intelligence in HR?

What is emotional intelligence in HR? Emotional intelligence (EQ) is the ability to recognize and regulate emotions effectively. In 1990, psychology professors Peter Salovey and John D. Mayer established the theory of EQ. In his book Emotional Intelligence, renowned author Daniel Goleman explains the five components of EQ: Awareness of emotions and noticing them as they occurHandling emotions with poise and demonstrating the ability to self-soothe and overcome obstaclesSelf-motivation and harnessing emotions to achieve high performanceEmpathy  towards others and the capacity to relate to their feelingsSocial competence in social interactions…

What is deferred compensation?

What is deferred compensation? Deferred compensation is a remuneration model that enables employees to postpone receiving a portion of their salary to a later date to secure beneficial retirement and investment plans, and reduced tax rates. In this payment option, the employer continuously withholds a fraction of the employee’s paycheck until the employee withdraws the cumulative amount on a pre-determined date. For example, an individual who earns $150,000 annually may decide to defer $20,000 every year for the next ten years. Employers can provide deferred compensation through:   Retirement plansPension…

What is a 360-degree review

What is a 360-degree review? A 360-degree review is a feedback system that enables designated staff members, colleagues, and managers to evaluate an employee’s work performance and competencies. Involving those who regularly collaborate with the employee, rather than the usual senior managers, provides a panoramic perspective of the employee’s progress, strengths, and weaknesses. Ideally, gathering responses from the surrounding staff will help the employee sharpen every angle of their work performance. Why should HR leaders care about 360-degree reviews? HR leaders can implement the 360-degree review in different contexts, such…

A confidentiality agreement, also known as a non-disclosure agreement (NDA), is a binding contract between two parties that holds each side accountable for protecting private information.

What is the hybrid working model?

What is the hybrid working model? The hybrid working model is a work style that enables employees to blend working from different locations: home, on the go, or the office. An effective hybrid work system encourages: AutonomyFlexibilityHigh performanceCollaborationPositive work relationshipsEffective work habits Why should HR leaders care about the hybrid work model? HR leaders can help employees establish a system that suits their needs and personality type. For example, a recent college graduate might look forward to the in-person training sessions and social interactions of working in the office. A…

What is an HR functions list?

What is an HR functions list? An HR functions list is a guide that defines the five core responsibilities of HR professionals, summarizes their priorities, and clarifies their mission.  An HR functions list: Defines the HR department's role in the workplace Promotes positive collaboration between HR professionals  Aligns HR's objectives with the company mission Why would we need an HR functions list? HR professionals facilitate the behind-the-scenes preparations, setting the stage for employees to perform high-quality work. HR staff fills a variety of dynamic roles that demand different skills. Consolidating the HR…

Employee retention rate is a metric that measures the percentage of employees who remain employed over a specific period.