HR Terms and Acronyms Every HR Professional Needs To Know

If you’re not an HR professional, becoming a walking dictionary of HR terms probably isn’t high on your priority list. HR is evolving, too—and the latest jargon isn’t something you’re likely to pick up around the water cooler (unless your water cooler is in the BambooHR office).

Navigating the ever-changing world of HR can feel like learning a new language, especially with the rise of specialized terms and acronyms. From eNPS to HRIS, these terms aren’t just jargon—they’re the keys to effective communication and strategic decision-making. As absenteeism triples and workplace dynamics shift, staying fluent in HR terminology is more crucial than ever. Whether you’re a seasoned pro or just starting out, mastering these terms can help you tackle modern HR challenges head-on.

Mastering the ever-evolving language of HR can be a bit like picking up a new language. From eNPS to HRIS, these terms aren’t just jargon—they’re the keys to effective communication and strategic decision-making. With absenteeism on the rise and office life making a 180-degree shift, staying fluent in HR terminology is more crucial than ever.

So, whether you're a seasoned HR guru or just starting out, getting the hang of these terms will set you up to take on today's HR hurdles with confidence. Learn more about the terms you need to know—and stay in-the-know—with our comprehensive guide to HR terms and acronyms.

12 Important HR Terms

We’re always working on our comprehensive HR glossary to bring you the newest, most relevant, and ever-evolving HR terms. But comprehensive means it covers everything, and you just want the highlights. So, here are twelve simplified definitions for twelve common HR terms and acronyms you’ll encounter.

1. Performance Management

Performance management is the official term covering everything involved in employee and management review and feedback programs. Your organization might have peer reviews, 360 feedback, employee goal setting and tracking, performance programs, and more, all combined with annual or quarterly reviews.

Or, it might have none of these; some organizations are rethinking their approach to performance management. Still others are looking at ways to improve the quality and effectiveness of performance management by making reviews more frequent and incorporating short-term goals that can be more easily tracked and measured.

2. HR Business Partner

An HR business partner is an executive who provides strategic direction at the senior level of an organization. Where the “traditional” HR professional spends the majority of their time working on day-to-day issues at the employee level, HR business partners act as a consultant on HR matters that impact the organization overall.

Their role is to ensure that the broader HR strategy is understood at every level and is in line with overall business objectives.

3. Onboarding

Onboarding includes the initial stages of an employee’s life at a new organization, such as team introductions, policy, training, specific job training, benefit paperwork, and other required preliminaries.

Onboarding is sometimes interpreted as the stage between the acceptance of the job offer and the first day of “regular” work. But effective onboarding can improve retention and employee engagement, which translates to major benefits for your organization. ‌Most experts agree that onboarding should extend throughout a new hire’s first year in their role.

4. Employee Database

An employee database is a storage system for employee information. HR’s compliance oversight means a functional, reliable, and current database is critical to the role. Due to the sensitive nature of personal and financial information and the increasing risks involved with identity theft and fraud, modern employee database services tout enhanced security and redundant backup systems as preventative measures against hacking and environmental disasters.

5. HRIS/HRMS/HCM

HRIS, HRMS, and HCM are all HR abbreviations referring to software platforms designed for human resources.

HRIS translates to Human Resources Information System (or Software), which implies a focus on information gathering, management, and distribution—like an enhanced HR database that includes functions like benefits administration, compliance, onboarding, compensation, and reporting.

HRMS stands for Human Resources Management System (or Software), and typically combines the functions of an HRIS with more advanced capabilities like recruiting, performance management, training and career development, succession planning, and predictive analytics.

HCM stands for Human Capital Management, which some people interpret as being nearly identical to an HRMS, while others see HCM as having all the functions of an HRMS plus payroll administration, time tracking, and benefits management, which are typically third-party services.

6. Affordable Care Act (ACA)

ACA is the HR abbreviation for the 2010 Patient Protection and Affordable Care Act, also known as the Affordable Care Act or more commonly by its nickname, Obamacare (since it was signed into law by President Barack Obama). The ACA was created with the aim of extending healthcare coverage to more Americans through a series of new regulations and requirements for both healthcare providers, individuals, and employers. For the HR industry, the ACA added new rules and guidelines that affect employees’ benefit choices and require increased monitoring to ensure compliance.

Read the full glossary definition here.

7. ATS

As an HR abbreviation, ATS, or applicant tracking system, refers to software designed to organize and improve the recruiting and hiring process. At the simple end, an ATS might just store incoming applicants’ information and sort candidates by job opening and hiring status. A more robust ATS often includes additional recruiting and reviewing tools like job-posting functions, communication tools, automated approval notifications, smart sorting, and more. The most advanced systems available today are even incorporating artificial intelligence to help with applicant screening.

Read the full glossary definition here.

8. eNPS

eNPS, or Employee Net Promoter Score, is based on the Net Promoter Score system, which is a system of survey analysis created to help organizations gauge customer loyalty. eNPS gauges employee satisfaction and loyalty using a similar two-question format. Employees submit a score rating along with anonymous feedback about their employer, which gives the system enough information to provide the organization with an overall score from -100 to +100. Along with scoring, eNPS uses keyword analysis to highlight recurring topics in the positive and negative feedback, which gives employers a starting point for solving issues and reinforcing beneficial aspects of the workplace. Tracking scores and feedback over time allows organizations to see trends and determine whether or not efforts to improve have been effective.

Read the full glossary definition here.

9. Paid Time Off (PTO)

PTO is HR slang for paid time off, which many people understand as vacation time. It’s time away from work that’s compensated by an employer, and may be divided into categories such as:

• Sick time
• Vacation
• Personal or mental health time

PTO is determined by the employer, which makes it different from federally mandated or state-mandated leave like FMLA, and it’s generally not conditional to specific needs or unique circumstances (like parental leave).

10. 401(k)

A 401(k) refers to an employer-led retirement investment/savings plan. Traditionally, a 401(k) takes money from an employee’s gross pay and places it in a specified investment account.

It ensures that, over time, employees are passively investing into their own retirement.

The title isn’t some clever HR slang term, either; the name refers to section 401 of the US Internal Revenue Code (IRC).

11. Fair Labor Standards Act (FLSA)

The Fair Labor Standards Act is a US federal law that protects employees and workers from unfair work standards or pay practices. It may be one of the most important pieces of legislation for HR professionals to understand.

This law can cover practices relating to:

• Minimum wage
• Overtime pay
• Child labor.

This can even impact nonprofit organizations too, though religious organizations can sometimes be exempt.

12. Affirmative Action (AA)

Affirmative Action refers to policies that fight discrimination and promote fairness, particularly in hiring. It's a way to level the playing field by making sure everyone has an equal shot at opportunities, regardless of their background. It's a powerful tool to fight discrimination and help create a more inclusive workplace for all.

It’s important to understand affirmative action and to have an Affirmative Action Plan (AAP)—a plan or program that outlines a federal contractor or subcontractor’s efforts to provide equal employment opportunities and generally support the advancement of employees regardless of gender, race, disability, or veteran status.

It’s important to understand the term, and your company’s approach to it.

HR Slang: Why Should You Know Human Resource Abbreviations?

The corporate world is full of abbreviations, terms, and idioms—let’s circle back, send me that by EOD, Synergy! (Not to mention new slang terms like coffee badging, bare minimum Mondays, and job shift shock.) It’s a way that people communicate and reduce complex terms or ideas into something instantly understandable (assuming you’re in the know).

In a similar way, HR slang lets you engage in conversations. Knowing HR terminology and abbreviations isn’t just an essential part of your job as an HR manager; other people in your organization should understand them too. This doesn’t just help with communication but helps people to understand the core functions that are at the heart of every job and role.

By understanding and using terms correctly, you bring them into the vernacular of your company. If you’re jumping into a new role, or joining a larger organization, it’s important to equip yourself with the correct language so you can engage in your job role. And remember, as the field develops, HR acronyms and terms will evolve,too.