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List of HR Abbreviations and HR Terms

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4 min read
hr terms

Many different terms, acronyms, and abbreviations are commonly used in everyday business within the HR industry. Navigating a sea of new words and concepts can be overwhelming; sometimes, even seasoned HR professionals need a reminder.

Here, we’ve compiled a list of the most commonly used HR terms, acronyms (when the first letter of each word in a phrase makes a new word) and abbreviations.

AII/M: Absence Improvement Interview/Meeting

An official interview or meeting to welcome an employee back to work, discuss the reasons for their absence and ensure they are fit to work.

APS: Applicant Tracking System

A software system to help manage the recruitment and hiring process.

Attrition

The process of reducing an employer’s physical workforce by not replacing employees who leave.

Basic Salary

The salary before any benefits, bonuses or compensation are added on.

Benchmarking

The process of comparing metrics to external organisations and internal teams to identify best practices.

Bumping

The process of moving a usually more senior employee to a less senior position, thereby displacing the less senior employee from their role.

Churn Rate

The number of employees who leave a company during a specific period

Compensation and Benefits

The total package offered to employees for their work in a company.

CPD: Continuous Professional Development

All the learning and training activities that employees can get involved in.

Cost per Hire

The costs involved in recruiting new employees.

DC: Defined Contributions (Pension Plan)

A type of pension plan is one in which the employee and employer make regular contributions to a pension pot for the individual employee.

Disciplinary Procedure

The formal documented process to investigate a complaint, conduct or capability concern.

Deferred Compensation

A portion of an employee’s salary that is not paid out or taxed as income until a later date, such as retirement.

DE&I: Diversity, Equality and Inclusion

The term used to describe all the work done by organisation to be more inclusive. In some companies, the word ‘belonging’ is also included.

DB: Defined Benefits (Pension Plan)

A workplace pension where the pension payments are defined by the rules set out in the scheme. Also known as final salary or career average pension.

Downshifting

Process of reducing the amount of work someone does, often to improve work-life balance.

Employee Database or Directory

Software programme that contains contact and personal details of all employees.

ER: Employee Relations

The term used to describe all aspects of the relationship between the employer and employees. Also seen on payslips to denote the employer contributions to national insurance.

EE: Employee

Abbreviation for employee usually seen on a pay slip next to NI (National Insurance).

Employer Value Proposition

How an organisation defines their ethos and brand as an employer.

Employee Assistance Programme

A company-wide programme offering personal support such as counselling and financial and legal advice.

ERA or ERA96: Employment Rights Act 1996

The most recent and relevant law that sets out the rights of employees.

ERP: Enterprise Resource Planning

Software system that companies use to integrate all the essential aspects of their business, including HR.

Exit Interview

The final meeting with an employee to get information on the departing employee’s experience at the company.

FTE: Full-Time Equivalent

Refers to the salary amount someone working part-time would receive if they were working full time.

Gender Divide

Data and research that quantifies the differences between the experience of men and women in the workforce.

GM: Gross Misconduct

A deliberate act that significantly deviates from the usual standards of behaviour expected in the workplace.

Gross Salary

Salary received by the employee before anything such as tax, pension or other contributions are deducted from it.

HASAW (or HASAW74): Health and Safety At Work Act 1974

The main piece of legislation that covers health and safety requirements at work.

HRIS: Human Resources Information System

A software system that covers all the key areas that an HR team covers, including recruitment, onboarding, performance management and payroll.

LOC: Letter Of Concern

Document detailing concerns about an employee’s performance and where improvement is needed.

LTI: Long-Term Incentive

Reward tool to motivate their organisation’s employees to achieve a specific goal over a particular period.

LTS: Long-Term Sick

The term used when an employee has been signed off work with medical leave, usually for more than four weeks.

Nepotism

The practice of favouring relatives or friends when offering employment or incentives.

Net salary

The amount of money an employee receives after tax, insurance, pension, and other contributions are taken. It is also known as take-home pay.

OH: Occupational Health

A medical service that looks after an employee’s physical and mental health in the workplace.

Onboarding

The process of welcoming and supporting an employee to make a smooth transition when they join a company.

OT: Overtime

When an employee works beyond their contracted hours.

PAYE: Pay As You Earn

The method that most people use to pay income tax, where the tax is paid by the employer to HMRC at the same time as the rest of the salary is paid to the employee.

PHI: Private Health Insurance

Often provided as a benefit and part of a broader compensation package.

PDP: Performance Development Plan (or Process) or PIP: Performance Improvement Plan

Agreed plan to develop individual’s performance; can include career development.

PDR: Personal Development Record

Official record of an individual’s personal development goals and achievements.

PR: Performance Review

The process where an employer and employee review the performance and job expectations of an individual employee.

Preboarding

The process of supporting a new employee’s transition to the company between their acceptance of the offer of employment and their actual start date.

PRP: Performance-Related Pay

Compensation directly related to performance in the role, for example, commission on sales.

RTW(I): Return To Work (Interview)

The process or meeting to discuss an employee’s return to work and the support they need.

Reverse mentoring

The process where younger and less-experienced employees coach more experienced colleagues, recognising that skills gaps can exist on both sides of a mentoring relationship.

Salary Bands

The range between a minimum and maximum an employer will pay for a specific role.

SME: Small to Medium-sized Enterprise

SME refers to the size of a company, usually between 30 and 250 employees.

STI: Short-Term Incentive

Reward tool to motivate their employees to achieve a specific goal in a short period.

Summary Dismissal

Immediate termination of an employee’s contract due to their behaviour; also known as immediate dismissal.

TUPE: Transfer of Undertakings Protection of Employment (regulations)

The rights of employees when their employment changes due to a change of business ownership.

TOIL: Time Off In Lieu

When an employee receives time off to compensate for working extra hours.

Unconscious Bias

The concept that people make decisions and judgments based on their subconscious attitudes. Also referred to as implicit bias.

Wage Drift

The concept that wages paid can increase (or decrease) more quickly than the agreed nominal increase because of overtime pay, commission-based earnings, etc.

WTD/WTR: Working Time Directive/Regulations

The legal framework that clarifies the hours people can work, required rest breaks, and holiday allocation.

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Imogen is a freelance writer specialising in health, travel and people, who loves creating content that is accessible and easy to digest. She is also currently in her second year of retraining to be a children and adolescent therapist. In her spare time, she goes cold water swimming, plays tennis and loves to travel with her family and their dog.

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