HRCI Test Specifications

Below is a list of HRCI Test Specifications for this functional area, as well as the core knowledge that is relevant to all functional areas of the PHR and SPHR exams. These specifications detail the responsibilities and knowledge covered on the certification exam. The item numbering is not sequential here because it reflects the numbering system employed in the HRCI Test Specifications.

Functional Area 04: Compensation and Benefits (19%, 13%)

Developing/selecting, implementing/administering, and evaluating compensation and benefits programs for all employee groups in order to support the organization’s goals, objectives, and values.

Responsibilities:

01     Ensure that compensation and benefits programs are compliant with applicable federal laws and regulations.

02     Develop, implement, and evaluate compensation policies/programs (for example: pay structures, performance-based pay, internal and external equity).

03     Manage payroll-related information (for example: new hires, adjustments, terminations).

04     Manage outsourced compensation and benefits components (for example: payroll vendors, COBRA administration, employee recognition vendors). PHR only

05     Conduct compensation and benefits programs needs assessments (for example: benchmarking, employee surveys, trend analysis).

06     Develop/select, implement/administer, update and evaluate benefit programs (for example: health and welfare, wellness, retirement, stock purchase).

07     Communicate and train the workforce in the compensation and benefits programs, policies and processes (for example: self-service technologies).

08     Develop/select, implement/administer, update, and evaluate an ethically sound executive compensation program (for example: stock options, bonuses, supplemental retirement plans). SPHR only

09     Develop, implement/administer and evaluate expatriate and foreign national compensation and benefits programs. SPHR ONLY.

Knowledge of:

38     Applicable federal laws and regulations related to compensation, benefits, and tax (for example: FLSA, ERISA, FMLA, USERRA)

39     Compensation and benefits strategies

40     Budgeting and accounting practices related to compensation and benefits

41     Job evaluation methods

42     Job pricing and pay structures

43     External labor markets and/or economic factors

44     Pay programs (for example: variable, merit)

45     Executive compensation methods. SPHR ONLY

46     Noncash compensation methods (for example: equity programs, noncash rewards)

47     Benefits programs (for example: health and welfare, retirement, Employee Assistance Programs [EAPs])

48     International compensation laws and practices (for example: expatriate compensation, entitlements, choice of law codes). SPHR ONLY.

49     Fiduciary responsibilities related to compensation and benefits.

Core Knowledge:

76     Needs assessment and analysis

77     Third-party or vendor selection, contract negotiation, and management, including development of requests for proposals (RFPs).

78     Communication skills and strategies (for example: presentation, collaboration, sensitivity).

79     Organizational documentation requirements to meet federal and state guidelines.

80     Adult learning processes

81     Motivation concepts and applications

82     Training techniques (for example: virtual, classroom, on-the-job)

83     Leadership concepts and applications

84     Project management concepts and applications

85     Diversity concepts and applications (for example: generational, cultural competency, learning styles)

86     Human relations concepts and applications (for example: emotional intelligence, organizational behavior)

87     Ethical and professional standards

88     Technology to support HR activities (for example: HR Information Systems, employee self-service, e-learning, applicant tracking systems)

89     Qualitative and quantitative methods and tools for analysis, interpretation, and decision-making purposes (for example: metrics and measurements, cost/benefit analysis, financial statement analysis)

90     Change management theory, methods, and application

91     Job analysis and job description

92     Employee records management (for example: electronic/paper, retention, disposal)

93     Techniques for forecasting, planning, and predicting the impact of HR activities and programs across functional areas

94     Types of organizational structures (for example: matrix, hierarchy)

95     Environmental scanning concepts and applications (for example: Strengths, Weaknesses, Opportunities, and Threats [SWOT], and Political, Economic, Social, and Technological [PEST])

96     Methods for assessing employee attitudes, opinions, and satisfaction (for example: surveys, focus groups/panels)

97     Budgeting, accounting, and financial concepts

98     Risk-management techniques