10 Common HR Concepts & Terms That You Should Know
Human resources, or HR, as it is known, is an integral component of a successful business; every single business relies totally on its employees to work together to achieve the company’s goals. Like most sectors, HR uses a wide range of specific terms and phrases, and with that in mind, here are the most used HR terms that every manager should know.
Strategic Human Resources Management – In the early 2000s, a man by the name of David Ulrich coined the term ‘strategic human resources management’ and the goal is to match the company’s goals with the organizational process. Some professionals, like the Avensure HR consultant for small businesses, involve tailoring the services to suit you.
HR Analytics – Today’s HR is all about data collection and analysis; you can make data-driven decisions if all your data is stored and analyzed by HR professionals. This type of analysis helps a company integrate its goals into the day-to-day running of the business. If you want to make data-driven decisions, approach a leading HR agency and see what they have to say.
360-Degree Survey – As the name suggests, this survey involves all stakeholders, from management to customers and everything in between. This type of survey is primarily used to measure management performance, which isn’t always successful, there are a lot of variables that can come into the equation.
Attrition – This refers to voluntary and involuntary terminations, which might be due to retirement or even death! Every HR department should closely monitor attrition rates and take note of the data.
Benchmarking – It is important to be able to measure performance and there are a wide range of variables that can be used for this. Benchmarking can also be used for measuring competitors’ performances across the board.
Bumping – Bumping is when you offer long-term employees the opportunity to take alternative positions, which is a great way to retain experienced employees. If you would like to learn more about bumping, talk to a leading HR agency.
NDA – The non-disclosure agreement is something an employee might sign at the start of their tenure, which protects trade secrets. If a designer is about to start work with your design team, you might need them to agree to a level of confidentiality.
Exit Interviews – Many companies fail to interview employees that are leaving for one reason or another. This is a great opportunity to extract valuable data that can benefit the business: the reason why the employee is leaving, opinions on how the company is managed, and lots more.
Nepotism – This is when a manager hires a family member or friend, even though other candidates are more qualified. This type of favoritism can be damaging to a company and the practice is less prevalent than it once was.
Succession Planning – It is important to plan and nurture younger employees to be in a position to assume a role when an older employee retires. Careful nurturing will ensure that succession occurs at the right time and the business will not suffer.
If your company needs HR services, search online for a leading HR agency and let them assess your business. Once you are familiar with the terms used in HR, you will have a deeper understanding of the terms used in the HR sector.