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