HR Key Terms

• What are agency employees?

  Individuals who are employed by an agency. Businesses can hire workers from an agency to make up a shortfall in their own internal staff
• What is collective bargaining?

  Negotiation between employers and employees, typically through trade unions, to determine working conditions, wages, and benefits.
• What is commision?

  Payment made according to the number of sales achieved from that employee
• What is customer retention rate?

  The percentage of customers that a business retains over a specific period of time.
• What is employee consultation?

  The process of seeking and considering the opinions and input of employees before making decisions that affect them.
• What is employee engagement?

  The emotional commitment an employee has to their organization and its goals.
• What is empowerment?

  The giving of power to employees so that they can make some of the decisions relating to their area of business activity
• What are financial rewards?

  Monetary incentives given to employees e.g. bonus payments
• What are flexible contracts?

  These allow the hours and days of work to be varied by agreement between employers and employees according to the needs of the business and/or the individual employee
• What is a full-time contract?

  A full-time contract is an agreement between an employer and an employee where the employee is expected to work a specified number of hours per week, typically 35-40 hours.
• What is Human Resources (HR)?

  The business function of ensuring that the employees of an organisation are used in the most effective way possible to achieve optimum business performance
• What is job design?

  Job design refers to the process of structuring and organizing tasks, responsibilities, and relationships within a job to improve efficiency and employee satisfaction.
• What are Key Performance Indicators (KPI's)?

  Measures of business performance that are considered by management to be an important guide so to how well the company is doing
• What is labour turnover?

  The number of employees leaving a business in a given time period. It is usually expressed as a labour turnover percentage rate
• What are non-financial rewards?

  Incentives given to employees other than those given with a monetary value e.g. extra holidays, employee of the month recognition
• What is a part-time contract?

  A part-time contract is an employment agreement where an employee works fewer hours than a full-time employee, typically less than 35 hours per week.
• What is performance-related pay?

  Payements made based on targets being met or exceeded
• What is a permanent contract?

  A permanent contract is a type of employment agreement that has no specified end date and provides long-term job security for the employee.
• What are piece rate payments?

  Payment system based on the number of units produced or tasks completed.
• What is recruitment?

  Identifying the need for an employee, devising a job description and finding a person suitable to perform the job
• What is employee retention?

  The ability of a company to keep its employees for a long period of time.
• What is a salary scheme?

  Method of payement in which individuals are paid a fixed annual amount, divided into 12 monthly payments
• What is selection?

  Choosing a suitable person to fill a job vacany from among all the applicants for a job
• What is a temporary contract?

  A temporary contract is a type of employment agreement that has a fixed duration and is not permanent.
• What is training?

  Providing employees with work related skills
• What are zero hour contracts?

  A contract of employment where the employee does not have any guaranteed hours of work. Employees are only paid for the hours they actually work, which might be zero in any given time period