PHRi HRCI Professional in Human Resources – International Free Practice Exam Questions (2025 Updated)

A cost-of-living adjustment (COLA) is a pay increase intended to match inflation, ensuring that employees’ purchasing power is maintained. According to HRCI, COLAs are commonly used to adjust wages in line with economic changes, particularly in periods of high inflation.

A diverse workforce in age and demographics will benefit from flexible paid time off, as it addresses varied personal needs across different life stages. Younger employees may value time off for personal growth, while older employees may require flexibility for health or family reasons. HRCI recommends that organizations tailor benefits packages to reflect workforce diversity, as this approach helps enhance employee satisfaction and retention by accommodating a broad range of needs and preferences.

Documenting the discussion provides a record of performance feedback, which can be referenced in future evaluations and for development purposes. HRCI emphasizes documentation to ensure accountability and continuity in performance management.

Discussing with the employee how to handle the announcement allows them to address concerns directly and fosters open communication. HRCI advises that handling sensitive issues like demotion with transparency and empathy helps support employee morale and fosters a respectful workplace culture.

Employment records are crucial for compliance with legal requirements, such as documentation for hiring, terminations, and employee history. HRCI underscores the importance of accurate record-keeping to ensure compliance with labor laws and protect against potential legal issues.

To calculate ROI in training, the formula is:A math equations with numbers Description automatically generated with medium confidenceThis means the training resulted in a 150% return on investment. According to HRCI, calculating ROI for training programs is crucial for understanding the financial impact of training on business outcomes.

When selecting an external recruitment method, HR managers should consider the type of job being filled. Different roles require different recruiting strategies. For example, specialized technical roles may benefit from industry-specific job boards, while entry-level roles might use general job sites or social media platforms. According to HRCI guidelines, understanding the role's requirements allows HR managers to choose a recruiting method that effectively reaches the target audience, enhancing the chances of finding suitable candidates efficiently.

Offshoring refers to relocating business operations or processes to a different country, usually to reduce costs or access specialized skills. According to HRCI, offshoring is a strategic decision that can lower expenses but may involve complexities such as managing cultural and regulatory differences.

A high percentage of positions filled internally shows a commitment to employee development, as it reflects the organization’s focus on promoting from within. HRCI notes that internal mobility is an indicator of effective succession planning and investment in workforce development.

The duration of the assignment is a key factor; temporary or short-term roles are better suited for contract workers, while long-term needs are generally filled with regular employees. According to HRCI, analyzing the assignment’s duration helps HR decide on the appropriate employment type, ensuring efficiency and cost-effectiveness.

A system administrator monitors and examines system usage to ensure compliance with organizational policies. HRCI notes that this role involves overseeing IT resources to prevent misuse, ensuring security, and maintaining system efficiency.

The employee handbook is a formal document that typically includes policies about communication monitoring, ensuring that employees are informed of these policies from the outset. HRCI advises clear documentation of monitoring policies to maintain transparency and legal compliance.

A high-potential employee is defined as someone with the capability and readiness to take on more responsibilities and advance within the organization. According to HRCI, identifying high-potential employees is critical for succession planning and leadership development, ensuring continuity and growth within the organization.