Free Practice Questions for HRCI SPHR Exam

Internal equity ensures fairness among current employees, while market competitiveness is about offering externally attractive pay. These can conflict when market rates exceed internal benchmarks, creating compression or morale issues.

Extract from HRCI-aligned HR knowledge (Total Rewards):

SPHR guidance includes “balancing internal consistency with external competitiveness in pay structures.” HR leaders must mitigate conflicts through pay bands, variable pay, or phased market adjustments.

Intangible assets like culture, leadership, brand, and intellectual capital are often overlooked but are central to differentiation and long-term success.

SPHR professionals contribute by “elevating the visibility and valuation of organizational culture, innovation capacity, and leadership pipeline” as strategic assets​.

When extending offersabove the midpoint, HR must justify that decision based oncritical qualifications or competitive risks.

Option Brefers to a candidate withspecialized certifications and a strong skill set, whichadds strategic valueand warrants a premium.

Option Ereflectscompetitive poaching; to attract talent from adirect competitor, especially with transferable experience, HR may offer acompensatory advantage.

Extract from HRCI-aligned HR knowledge (Total Rewards domain):

“Total Rewards strategies must account for market competitiveness, internal equity, and candidate-specific value propositions.” Offering above midpoint should be based on “experience above minimum qualifications, hard-to-find certifications, or risk of losing talent to a competitor.” The SPHR model requires thatoffers be aligned with compensation strategy, which accounts for market dataandinternal compensation structure.

All compensation and rewards strategies mustbegin with strategic alignment. Thecompensation structure shouldreinforce business objectives, such as performance, innovation, retention, or cost management.

Extract from HRCI-aligned HR knowledge (Total Rewards):

SPHR-level planning starts with “ensuring compensation philosophy supports the broader organizational strategy.” Business goals dictate how compensation elements are prioritized — not the reverse.

Comprehensive and Detailed Explanation:

CSR is most effective whenembedded into strategy— serving brand, community, and long-term sustainability. It’s not an add-on; it’sstrategic infrastructure.

SPHR strategic planning recognizes CSR as “a strategic function that aligns ethics, public perception, and competitive advantage.”

Comprehensive and Detailed Explanation:

Arbitrators heavily weigh the collective bargaining agreement and the organization's established past practices, which may have the force of contract if consistent and long-standing.

SPHR-level union relations competencies stress that arbitrators seek contractual clarity and behavioral consistency when ruling on grievances.

Comprehensive and Detailed Explanation:

Executive coaching is designed to develop self-awareness, interpersonal effectiveness, and behavioral change in leadership. The goal is improved leadership effectiveness, not corporate strategy shifts.

SPHR’s development guidance emphasizes behavioral transformation as central to leadership growth and organizational impact.

Training must connectpolicies to behavior. Applying the code of ethics throughreal-life scenarios, case studies, and dilemmas enables employees to understand how toact on valuesunder pressure.

Extract from HRCI-aligned HR knowledge (Risk Management):

SPHR-level ethics training focuses on “applying ethical codes in complex decision-making.” Merely reviewing policies is passive; effective programs requirecontextual application to develop judgment and integrity.

TheBalanced Scorecardtranslates vision into strategy by aligningobjectives, metrics, and initiativesacross four areas:financial, customer, internal process, and learningandgrowth. It connects strategic planning today-to-day activities.

Extract from HRCI-aligned HR knowledge (Leadership and Strategy):

SPHR professionals use tools like the Balanced Scorecard to “align HR and business metrics to strategic outcomes.” This approach reinforcesorganizational focus and strategic accountability.

Retention of key talent prevents disruption, maintains institutional knowledge, and ensures continuity. Retention plans can include incentives, development paths, and role clarity.

SPHR integration strategies emphasize “targeted retention planning for high-impact individuals as essential to successful post-merger stabilization”​.