HR Glossary: Every term you need to know | Page 7 of 11 | HiBob

What is an exit interview

What is an exit interview?

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

What are fringe benefits?

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. …

compensation plan

What is a Compensation Plan?

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. https://www.youtube.com/watch?v=xdicz6u06ro&list=PLy3JTofSJZvst0HUOnqPHjl_88eIVlvaN&index=3 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:…

What is 9-box model?

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…

HR strategy

An HR strategy is an organized set of HR methods designed to support high-performance work and promote the company’s vision, mission, values, and objectives. HR may create a strategy for a single job or a collection of jobs in order to address specific needs within each department. HR strategies aim to drive overall business success by spurring employees to provide high-quality work. In the SHRM’s guide on Human Resource strategy, Patrick M. Wright outlines three crucial elements that an HR strategy should focus on: Have something. What skills, competencies, and…

employee performance evaluation

What is an employee performance evaluation?

An employee performance evaluation is an assessment process that tracks an employee's work progress throughout the employment period. Like performance reviews, employee performance evaluations document the employee’s journey-- their accomplishments, setbacks, strengths, and weaknesses-- to provide a big picture of the overall work performance. Depending on the company, its structure, and the industry, organizations may use different criteria and metrics for their evaluation system. Some organizations may prefer to incorporate the 360-degree review or staff review, while others may rely heavily on self-assessment and manager observation. Why should HR leaders…

workforce planning

What is workforce planning?

Workforce planning is the process of building a robust organization through attracting, hiring, and training suitable candidates within each department. Businesses use workforce planning to avoid under or overstaffing and to support hiring employees with appropriate levels of knowledge, skills, and experience. Incorporating a workforce planning strategy enables companies to carefully respond to emerging economic or technological trends disrupting the workplace. Just as individuals meal plan to avoid routine consuming fast food and support optimal health, companies “workforce plan” to maintain a healthy and functioning staff and successful organization. Why…

Talent management

What is talent management?

Talent management is a holistic method of recruiting, hiring, and engaging high-performing employees to achieve company objectives. An offshoot of HR management, talent management offers a strategic, integrated approach to attracting quality employees and optimizing their competencies. HR influencer Josh Bersin explains the evolution of talent management. Known as the Personnel Department in the 1970s, it focused on the rudimentary functions of hiring, paying, and offering basic benefits. In the 1990s, the department transformed into Strategic HR, aiming to attract and engage desirable employees. Today, talent management strives to increase…

Predictive HR analytics

Predictive HR analytics

Predictive HR analytics is a tech tool that HR uses to analyze past and present data to forecast future outcomes. Predictive HR analytics digitally digs through data to extract, dissect, and categorize information and then identify patterns, irregularities, and correlations. Through statistical analysis and predictive modeling, analytics enables data-driven decisions regarding HR functions. Predictive HR analytics systems are reminiscent of the earthworm. The worm ingests natural waste and residue and excretes nutrient-rich, fertile soil material. Predictive analytics, too, intakes unused, raw data to transform it into applicable information that supports…

Employee management software

What is employee management software?

Employee management software is an integrative tech system that assists in tracking, monitoring, recruiting, hiring, and communicating with employees. Usually, cloud-based employee management software aids HR professionals in overseeing every step of the employee lifecycle, providing a variety of automated services such as: OnboardingPayrollPerformance review evaluationsTwo-way employee-manager feedback Employee recognition functionsCompany policy communication Why should HR leaders care about employee management software? Employee management software offers a cost-effective way to: Streamline HR processes Maintain accuracy and efficiency while reducing human errorBoost understanding of and compliance with company policiesIncrease retention and engagement through,…

Employee satisfaction survey

What is an employee satisfaction survey?

An employee satisfaction survey is a questionnaire that measures the contentment level of personnel regarding the various components of their job. The purpose of the employee satisfaction survey is to provide actionable data to improve the employee experience. An employee satisfaction survey can include various answer types, such as checkbox, rating scales, and open-ended answers. Why should HR leaders care about employee satisfaction surveys? An employee satisfaction survey can provide valuable insights into how the organization can enhance the employee experience and nurture business growth. By strategically designing the survey,…

What is parental leave?

Parental leave is time off for mothers and fathers to take care of a child for medical or non-medical reasons. Employees can use parental leave following the birth, adoption, or fostering of a child or to ensure a child's welfare. In the United States, the FMLA enables eligible parents to take twelve weeks of unpaid time off, while federal employees can receive up to 12 weeks of paid time off. In the U.K., the government allows 18 weeks per child of unpaid parental leave, up to the child's 18th birthday. …

Workforce management

Workforce management

Workforce management (WFM) is the strategic organization of labor to achieve optimal productivity and company objectives. Workforce management typically includes: Employee schedulingTime tracking and attendanceForecastingCompliance trackingPayroll and benefits Time off and vacation planning A basic form of workforce management has always existed-- for example, businesses would track work hours or plan employee vacation times. Today workforce management has evolved into an integrated part of HR software systems, automating and streamlining HR processes to create highly efficient, precise, and reliable results. Why should HR leaders care about workforce management? WFM software removes…

Employee benefits

Employee benefits

Employee benefits are a form of compensation that employers provide (along with a salary) to create a well-rounded, attractive payment package. Employee benefits vary, depending on the relevant government labor laws. In the United States, each state has its own regulations regarding employee benefits. Government-mandated benefits include: Social SecurityHealthcare or Medicare FMLA or time off for family In addition to government benefits, employers often offer: Paid time off for holidays, vacation days, and sick leaveHealth and life insurancePersonal leaveDisability insuranceRetirement plans Generous employers may add complementary benefits to create a more…

Cultural safety

What is cultural safety?

Cultural safety is the appreciation and protection of employee individuality, enabling employees to fulfill their roles and express themselves freely. Cultural safety encompasses both physical and psychological safety. Physical safety means that the material work environment must be free of harmful toxins and hazardous conditions and conducive to productivity. Psychological safety implies that the company encourages employees to take risks, voice their opinions, ask questions, and make mistakes through valuing honesty, courage, and humility. Why should HR leaders care about cultural safety? An organization that prioritizes cultural safety ideally empowers…