SPHR HRCI Senior Professional in Human Resources Free Practice Exam Questions (2025 Updated)

Comprehensive and Detailed Explanation:

ANon-Disclosure Agreement (NDA)ensures that employees cannot shareconfidential information, including trade secrets, after leaving the organization.

SPHR-level legal risk mitigation includes “NDAs as essential tools in safeguarding intellectual property.” Non-solicitation limits recruiting; NDAs protectdata and methods.

Disparate impact analysis ensures that layoffs don’t unintentionally discriminate against protected groups. Even neutral policies can lead to adverse impact, which exposes the employer to legal liability.

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

SPHR strategy includes “conducting statistical and legal risk assessments prior to workforce reductions.” Disparate impact is a core concept in compliance with Title VII and EEOC enforcement guidance.

Consent is a cornerstone oflawful workplace monitoring. Employers must obtainwritten acknowledgmentfrom employees if surveillance (e.g., cameras, keystroke logging, emails) is used, particularly in jurisdictions with stricter privacy laws.

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

SPHR-level compliance frameworks require that “employee surveillance policies be transparent and consent-based.” This minimizes liability under privacy and wiretap laws, especially in multistate or international operations.

Stock optionsare a long-term incentive tool that aligns executive interest withshareholder valueand overallcorporate performance. Executives are motivated to improve financial performance because theirpersonal gains are tied to stock price growth.

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

The SPHR emphasizes “executive compensation structures such as long-term incentives that link financial results to reward.” Stock options, restricted stock units (RSUs), and performance shares are common strategic tools tolink organizational success directly to leadership accountability.

Comprehensive and Detailed Explanation:

Preventive controls, such as strong internal procedures, are essential to SOX compliance. They reduce risk by ensuring that deviations are identified or avoided early.

SPHR risk and compliance strategies involve “establishing clear, enforceable internal control frameworks aligned with SOX expectations.”

While MandA can yield multiple benefits, theprimary goalis oftencost synergies— e.g., streamlined operations, fewer redundancies, consolidated purchasing power.

SPHR strategic insight should include thefinancial motivationsbehind MandA and HR’s role in achieving them through integration planning.

Comprehensive and Detailed Explanation:

Zero-based budgeting (ZBB) starts fromzero, requiring justification for all expenses. This approach ensures every dollar aligns directly with theorganization’s strategic priorities, not historical patterns.

SPHR domain guidance forLeadership and Strategystresses “budgeting methods that link financial planning with strategy.” ZBB eliminates inefficiency by focusing funding only onvalue-generating activities.

A: Retaininghigh performers and leadersensures business continuity.

E: Organizational structure affects roles, decision-making, and operational alignment.

Post-merger HR priorities includeretention, role clarity, and org designto support integration.

Restricting access to non-business sites is a preventive control that protects organizational security, limits exposure to cyber threats, and ensures productivity standards are upheld.

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

SPHR’s risk framework includes “proactive policy development to protect corporate assets and productivity.” Web restrictions are part of a larger IT security and compliance strategy, especially in data-sensitive industries.

A: Deductions from exempt employees for partial-day absences violate FLSA, which requiressalaried exempt employees be paid their full salaryregardless of hours worked, with few exceptions.

C: Employers must pay forall hours worked, even if the employee stays late or skips a break unapproved—“suffered or permitted to work”under FLSA.

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

SPHR-level compliance includes “applying wage and hour laws to ensure proper classification, compensation, and time tracking.” FLSA violations often stem from misinterpretingexempt rules or meal period work time.

Comprehensive and Detailed Explanation:

Revenue/FTE = $500M ÷ 2,000 = $250,000

HR expense/FTE = $180M ÷ 2,000 = $90,000

These financial ratios are vital to SPHR roles when justifying ROI of HR functions and benchmarking workforce productivity.

A training needs assessment is used toidentify gapsbetween current performance and desired outcomes. This analysis revealsunderlying organizational issuesthat training may help resolve, such as performance deficits, compliance gaps, or skill shortages.

Extract from HRCI-aligned HR knowledge (Learning and Development):

SPHR-level HR is expected to “analyze organizational performance problems to determine whether training is a viable solution.” The goal isroot cause identification, not just content creation or audience targeting.

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​.

Offeringlump sum payoutsremoves long-term liabilities and actuarial risk for the company. It allows participants to take full control, and organizations toreduce future plan obligations.

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

SPHR knowledge includes “risk mitigation in legacy retirement plans,” and identifiesde-risking strategiessuch as lump sum offerings to reduce exposure tomarket fluctuations and longevity risk.

Aninventory of organizational capabilitieshelps HR identify current skills, experience levels, and future needs. This directly informsrecruitment planningby highlighting where skill gaps exist or are projected.

Extract from HRCI-aligned HR knowledge (Talent Planning and Acquisition):

SPHR frameworks emphasize that “conducting a skills inventory and workforce capability audit enables proactive recruitment strategy development and succession planning.” This helps alignsupply with projected organizational demand.

Comprehensive and Detailed Explanation:

Upon discovering pay disparities, SPHR-level best practice isnot to wait, but tocorrect unjustifiable gapsimmediately. Delay risks liability and undermines trust.

According to SPHR Total Rewards guidance, equity audits must lead tocorrective action— “taking steps to remedy imbalances is critical to compliance and ethical compensation practices.” Establishing benchmarks (B) is preventative, but (C) addresses existing risk.

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.

According to theNational Labor Relations Act (NLRA)and best practices in union-related employee relations, employers may sharefactual informationsuch as thecost of union dues, but cannotthreaten,interrogate,promise benefits, orspyon employees (the “TIPS” rule). Option C is legal because it is a fact-based communication. The other options involve coercive or invasive actions. This aligns with SPHR knowledge underEmployeeandLabor Relationsin theEmployee Relations and Engagementdomain.

Before buying tools or developing training, HR must identifywhich competenciesare critical. This ensuresalignment with business needsand avoids wasted investment.

SPHR learning strategies prioritizecompetency frameworksto guide skills development and workforce readiness planning.