GlossaryPeople

SHRM People Domain Glossary - Talent, Rewards, and Strategy Terms

Essential SHRM-CP and SHRM-SCP vocabulary for the People domain. Key terms for talent acquisition, total rewards, learning and development, and HR strategy.

People Domain Key Terms

Master these terms for the People domain. Terms are grouped by topic area.

Talent Acquisition

Talent Acquisition

The strategic process of identifying, attracting, and hiring qualified candidates to meet organizational needs. Unlike basic recruiting, talent acquisition encompasses employer branding, workforce planning, candidate relationship management, and long-term hiring strategy.

Succession Planning

The process of identifying and developing internal candidates for key leadership and critical positions. Ensures business continuity by creating a pipeline of prepared successors. Includes assessing readiness, creating development plans, and reviewing the pipeline regularly.

Employer Brand

An organization's reputation and value proposition as an employer. Encompasses the company's culture, mission, values, compensation, benefits, and growth opportunities as communicated to current and prospective employees. A strong employer brand reduces cost per hire and improves quality of hire.

Onboarding

The process of integrating new employees into the organization, including orientation, training, socialization, and role clarification. Effective onboarding improves retention, accelerates time-to-productivity, and builds engagement from day one.

Realistic Job Preview (RJP)

A recruiting approach that provides candidates with an accurate, balanced picture of a position, including both positive and challenging aspects. RJPs reduce early turnover by setting realistic expectations before the hire is made.

Total Rewards

Total Rewards

The complete package of compensation and benefits an organization offers employees. Includes five elements: compensation (base and variable pay), benefits (health, retirement), work-life balance, recognition, and development opportunities. A strategic total rewards approach aligns with business objectives and employee preferences.

Exempt vs. Non-Exempt Employees

Classification under the Fair Labor Standards Act (FLSA) that determines overtime eligibility. Exempt employees are not entitled to overtime pay and must meet specific duties tests (executive, administrative, professional, or outside sales) and the salary threshold. Non-exempt employees must receive overtime pay (1.5x regular rate) for hours worked over 40 in a workweek.

Pay Equity

The principle that employees performing substantially similar work should receive comparable compensation regardless of gender, race, or other protected characteristics. The Equal Pay Act of 1963 prohibits sex-based pay differences for equal work. Pay equity audits compare compensation across demographic groups to identify and address unjustified gaps.

Broadbanding

A compensation structure that consolidates multiple narrow pay grades into fewer, wider pay ranges. Provides greater flexibility in pay decisions and supports lateral career moves, but offers less structure for controlling compensation costs.

Variable Pay

Compensation that varies based on performance, productivity, or other measurable criteria. Includes bonuses, commissions, profit sharing, gain sharing, and stock options. Unlike base pay increases, variable pay does not permanently increase payroll costs.

Benefits Administration

The management of employee benefit programs including health insurance, retirement plans, paid time off, disability coverage, and voluntary benefits. Requires compliance with ERISA, ACA, COBRA, and HIPAA regulations.

Learning and Development

Needs Assessment

A systematic process to identify gaps between current and desired performance at the organizational, task, and individual levels. The results inform training program design, delivery methods, and evaluation criteria.

Kirkpatrick's Four Levels of Evaluation

A widely used model for evaluating training effectiveness across four levels: Level 1 (Reaction, did participants enjoy it), Level 2 (Learning, did they learn it), Level 3 (Behavior, do they apply it on the job), and Level 4 (Results, did it impact business outcomes).

ADDIE Model

An instructional design framework with five phases: Analysis, Design, Development, Implementation, and Evaluation. Used to create structured, effective training programs that align with organizational objectives.

Employee Engagement

The emotional commitment an employee has to the organization and its goals. Engaged employees are invested in their work, contribute discretionary effort, and are less likely to leave. Measured through surveys and correlated with productivity, retention, and customer satisfaction.

HR Strategy

HRIS (Human Resource Information System)

A software platform that manages core HR functions including employee records, payroll, benefits administration, time tracking, and compliance reporting. Advanced systems (sometimes called HCM or Human Capital Management platforms) add talent management, analytics, and workforce planning capabilities.

Workforce Planning

The process of analyzing current workforce capabilities, forecasting future talent needs, and developing strategies to close gaps. Includes supply and demand analysis, skills inventories, and scenario planning to align human capital with business strategy.

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