Human Resources (HR)

Human Resources is the organizational function responsible for managing the employee lifecycle: recruitment, onboarding, development, performance evaluation, compensation, employee relations, and compliance with labor regulations. HR acts as the strategic bridge between management and employees, aligning people-management practices with organizational objectives.

Talent Acquisition

Talent acquisition is the strategic process through which an organization identifies, attracts, evaluates, and hires qualified candidates for open positions. It goes beyond reactive recruitment by encompassing long-term workforce planning, employer brand development, and building candidate pipelines for critical roles before they become vacant.

Onboarding

Onboarding is the structured process through which a new employee is integrated into the organization: document completion, tools setup, cultural orientation, policy training, and team integration. Effective onboarding increases early productivity, reduces early-stage turnover, and improves the employee experience during the critical first 90 days.

Offboarding

Offboarding is the formal process of separating an employee from the organization, encompassing equipment return, system access revocation, exit interview, knowledge transfer, and final administrative tasks. A well-managed offboarding process protects organizational data, maintains positive relationships with departing employees, and generates insights for improving retention.

Performance Management

Performance management is the continuous cycle of goal-setting, progress monitoring, regular feedback, formal review, and professional development. It is not limited to the annual review but includes frequent check-ins, real-time recognition, and performance improvement plans (PIPs) when necessary. It aligns individual effort with the organization's strategic objectives.

Performance Review

A performance review is the formal, periodic evaluation of an employee's performance against defined goals, expected competencies, and organizational values. It is conducted by the direct manager, often supplemented by a 360-degree assessment including peer and direct-report feedback. It forms the basis for decisions on promotions, salary increases, and development plans.

Learning and Development (L&D)

Learning and Development is the HR function dedicated to building employee skills through training programs, mentoring, coaching, e-learning, and professional development pathways. It encompasses both technical training (upskilling) and behavioral development (soft skills), aiming to close identified competency gaps and prepare employees for future roles.

Compensation and Benefits

Compensation is the total package of direct pay (base salary, bonuses, incentives) and indirect pay (benefits: health insurance, pension, vacation, flexible working) that an organization offers in exchange for work. A fair and competitive compensation structure is critical for attracting and retaining talent and must respect both internal equity (pay parity) and external competitiveness (market benchmarking).

ATS (Applicant Tracking System)

An ATS is software that automates and manages the full recruitment lifecycle: posting job openings, receiving and parsing CVs, initial screening, managing selection stages (screening calls, interviews, assessments), candidate communication, and reporting. It enables recruiters to manage candidate pipelines across multiple open positions simultaneously and ensures regulatory compliance in data collection.

HRIS (Human Resource Information System)

An HRIS is the central information system of the HR function that stores and manages employee master data, organizational structure, contracts, attendance, payroll, and documents. It is the system of record for all people data and integrates HR processes from hiring to offboarding. Common HRIS platforms include Workday, SAP SuccessFactors, and BambooHR.

Employee Turnover

Turnover is the rate at which employees leave the organization within a given period, calculated as (number of departures / average headcount) × 100. It is distinguished as voluntary turnover (resignations) and involuntary turnover (dismissals). High turnover signals engagement, culture, or compensation competitiveness issues and is associated with significant replacement costs and knowledge loss.

Employee Engagement

Employee engagement measures the level of emotional, intellectual, and behavioral commitment that employees have toward their work and organization. An engaged employee is motivated, productive, and acts as an organizational ambassador; a disengaged employee erodes productivity and increases the risk of leaving. It is measured through periodic surveys, pulse checks, and indicators such as absenteeism and turnover.

eNPS (Employee Net Promoter Score)

eNPS is an engagement metric that measures the likelihood of an employee recommending their organization as a place to work, on a scale from 0 to 10. It is calculated by subtracting the percentage of detractors (0-6) from the percentage of promoters (9-10): a positive score indicates a generally appreciated work environment. It is a rapid tool for monitoring sentiment and identifying trends over time.

FTE (Full-Time Equivalent)

An FTE is a unit of measure that normalizes headcount by accounting for contractual working hours. A full-time employee equals 1.0 FTE; a half-time employee equals 0.5 FTE. It enables comparisons across organizations with different contract models, supports workforce cost planning, and allows for more accurate productivity analysis.

Headcount

Headcount is the total count of individuals physically employed by an organization at a given point in time, regardless of working hours. It differs from FTE because it does not normalize for hours worked. It is used for organizational planning, HR budgeting, and regulatory reporting. Inclusion of contractors varies by organizational definition.

Job Description (JD)

A job description is the formal document describing the responsibilities, requirements, competencies, and hierarchical level of a position. It is the foundation of the employment contract, the selection process, and performance evaluation. An effective JD is clear, concise, free of gender bias, and aligned with the organization's job grading classification.

Talent Management

Talent management is the integrated strategy for attracting, developing, motivating, and retaining high-potential employees. It encompasses succession planning, key talent identification, accelerated development programs, and proactive management of the risk of losing critical individuals. It is closely linked to strategic workforce planning.

Succession Planning

Succession planning is the process through which an organization identifies critical roles, assesses succession risk for each, and proactively develops internal candidates as potential successors. It reduces key-person dependency, ensures operational continuity in the event of unexpected departures, and builds an internal leadership pipeline. Identified successors receive accelerated development through stretch assignments, coaching, and job rotation.

Employer Branding

Employer branding is the reputation of an organization as an employer - how it is perceived by current employees and prospective candidates. A strong employer brand attracts qualified candidates at lower recruitment costs, increases retention, and improves engagement. It is built through organizational culture, HR policies, external communications, and reviews on platforms such as Glassdoor and LinkedIn.

Workforce Planning

Workforce planning is the analytical process by which an organization anticipates future staffing needs in terms of quantity, skills, and structure, and defines actions to close gaps relative to the current workforce. It includes demographic analysis, scenario modeling, and planning for hiring, training, and planned departures.

DSAR (Data Subject Access Request)

A DSAR is the formal request by an individual (data subject) to the organization to access their personal information held and processed, under the GDPR (Art. 15, EU Reg. 2016/679) or equivalent regulations. In the HR context, it covers data such as the employee personnel file, evaluation history, payroll records, and organizational communications. The organization is required to respond within 30 calendar days of receipt.

Under the GDPR (Art. 6, EU Reg. 2016/679), every processing of personal data must rest on a lawful legal basis. In the HR context, the most common bases are: performance of the employment contract (Art. 6.1.b), legal obligation (Art. 6.1.c - e.g., social security contributions, tax declarations), and legitimate interest (Art. 6.1.f - e.g., IT security). Consent is rarely an appropriate basis in an employment relationship due to the imbalance of power.

Data Retention Period

The retention period is the time for which the organization may lawfully process and store the personal data of an employee or candidate before it must be deleted or anonymized. In the HR context it varies by data category: payroll and accounting documents generally follow national tax obligations, unsuccessful candidate data is often kept for 6-24 months, while personnel files may be retained for the duration of the employment relationship plus the period applicable for potential legal claims.

Processing of Special Categories of Data

The GDPR (Art. 9, EU Reg. 2016/679) generally prohibits the processing of special categories of data (sensitive data), including ethnic origin, religious beliefs, health data, genetic data, and biometric data. In the HR context, processing of health data (e.g., medical certificates, work fitness assessments) is permitted only when necessary to fulfill specific employment law obligations or for occupational health purposes. Consult a qualified professional for case-by-case assessment.

Privacy by Design in HR

The privacy by design principle (Art. 25 GDPR, EU Reg. 2016/679) requires that personal data protection be embedded in systems and processes from the outset, rather than added afterward. In the HR context this translates into: collecting only necessary data (data minimization), limiting access to personnel data to those with a genuine need-to-know, encrypting sensitive data, and periodically reviewing access rights.

HR KPIs (Key Performance Indicators)

HR KPIs are quantitative metrics used to evaluate the effectiveness of people management processes and policies. Common examples: time-to-hire (days from position opening to offer acceptance), cost-per-hire (total recruitment cost per hire), turnover rate, absenteeism rate, training ROI, eNPS. KPIs should be aligned with strategic objectives and measured consistently over time.

Time-to-Hire

Time-to-hire is the number of days between the moment a candidate enters the selection process (first contact or application) and the moment they accept the offer. It is an efficiency KPI for the selection process, distinct from time-to-fill (from job posting to offer acceptance). A high time-to-hire may indicate bottlenecks in the process or a non-competitive compensation offer.

Absenteeism Rate

The absenteeism rate measures the percentage of working hours lost to unplanned absences (illness, unplanned leave) relative to total scheduled hours in a period. It is calculated as (unplanned absence hours / theoretical schedulable hours) × 100. A high rate may signal engagement problems, excessive workload, health issues, or a negative organizational climate.

Pay Equity

Pay equity is the principle that employees should be compensated fairly for work of equal value, regardless of gender, age, origin, or other protected characteristics. Organizations periodically conduct pay equity analyses to identify and correct pay gaps not justified by objective factors such as tenure, performance, or level of responsibility.

Job Grading

Job grading (or job leveling) is the process of classifying positions into levels or pay bands based on objective criteria such as decision complexity, impact, scope of responsibility, and required competencies. It provides a fair and transparent structure for compensation decisions, promotions, and career progressions, and facilitates workforce cost planning.

Collective Agreement (CBA)

A collective bargaining agreement (CBA) is the agreement negotiated between employee trade unions and employer associations in a given sector to define minimum working conditions: minimum pay, working hours, leave entitlements, job classification, and protections. Individual employment conditions may not be less favorable than those set by the applicable CBA.

Induction

Induction is the opening phase of onboarding that introduces the new hire to company policies, health and safety requirements, the organizational structure, and their colleagues. It is often the first week of the onboarding program and includes activities such as a workplace tour, team introductions, systems briefing, and a code-of-conduct session.

360-Degree Feedback

360-degree feedback is a performance review methodology that collects behavioral and competency feedback from multiple sources: the direct manager (downward), same-level colleagues (peer, lateral), direct reports (upward), and sometimes internal or external customers. It provides a more complete and balanced view than manager evaluation alone and reduces individual assessment bias.

PIP (Performance Improvement Plan)

A PIP is a formal performance improvement plan activated when an employee's performance level does not meet minimum role expectations. It defines specific and measurable objectives, the support actions the organization commits to providing (training, coaching, resources), timescales for improvement, and consequences in case of failure to improve. It is both a development tool and formal documentation of the HR performance process.

Internal Mobility

Internal mobility is the transfer of an employee from one position, team, or location to another within the same organization, horizontally (lateral move), vertically (promotion), or geographically (relocation). It supports professional development, reduces recruitment costs, preserves organizational know-how, and increases retention by signaling to employees that internal career pathways are available.

Variable Pay

Variable pay is the component of total compensation that varies based on individual, team, or organizational performance. It includes annual bonuses, short-term incentives (STI), long-term incentives (LTI - e.g., stock options, restricted stock units), sales commissions, and profit sharing. It is distinct from base salary, which is fixed and contractually guaranteed.

Job Offer

A job offer is the formal proposal that an organization presents to the selected candidate at the end of the selection process. It contains the economic terms (salary, benefits, bonus), start date, location, role, and reporting level. Prior to acceptance, the candidate may negotiate the terms; after acceptance, the offer forms the basis of the employment contract.

Organizational Culture

Organizational culture is the set of shared values, behavioral norms, rituals, and daily practices that define how an organization functions and how people interact within it. The HR function plays a fundamental role in shaping, monitoring, and defending culture through selection policies, onboarding programs, recognition systems, and leadership practices.

Employee Benefits

Employee benefits are the non-monetary components of total compensation offered to employees: health insurance, pension contributions, meal vouchers, company car, remote working options, additional leave, wellness programs, gym memberships, and education subsidies. They contribute to the organization's attractiveness as an employer and to employee engagement, and their design must account for applicable tax treatment.

Organizational Health Index

An organizational health index is a composite metric that evaluates an organization's ability to align, execute, and renew itself to achieve its objectives over time. It is based on dimensions such as strategic direction clarity, employee motivation, innovation, culture, and leadership. It is often measured through structured organizational surveys and benchmarked against industry peers.