Free HRCI PHRi Practice Exam with Questions & Answers

Retaining employee records serves as documentation that may be necessary in the event of legal action, ensuring that the organization has a complete record of employment history and actions. According to HRCI, maintaining these records helps protect the organization and ensures compliance with legal standards.

Using a self-service module for requests streamlines data collection, allowing HR to efficiently track and manage employee participation in programs. HRCI suggests that self-service systems enhance operational efficiency by reducing administrative workload and improving data accuracy in tracking employee engagement.

An organization chart visually represents the reporting structure and hierarchy within the organization, facilitating communication and clear reporting lines. According to HRCI, organization charts are essential for operational clarity and effective internal communication.

New employee orientation is conducted to introduce employees to the organization’s policies, culture, and expectations. HRCI explains that thorough orientation helps employees acclimate to their new roles and ensures they understand company standards, which can improve their productivity and engagement.

Total rewards encompass all types of compensation, benefits, work-life programs, and careerdevelopment opportunities. Programs like flexible working hours and allowances fall under the total rewards strategy, aimed at enhancing employee engagement and satisfaction. According to HRCI, total rewards provide a holistic approach to employee benefits beyond basic salary.

Employee training is crucial during policy implementation to ensure that all employees understand the new policy and can comply with it. HRCI advises that training helps to minimize misunderstandings and promotes adherence, especially with complex or compliance-related policies.

Employee engagement surveys are an effective way to understand turnover causes, as they provide direct feedback on job satisfaction and workplace culture. HRCI emphasizes using surveys to capture employee sentiments and identify areas for improvement, particularly in organizations that prioritize innovation and employee input.

Stock options are often used to retain employees by tying their financial gain to the company’s success over time. HRCI states that such benefits encourage loyalty and a long-term commitment by aligning employee interests with organizational performance.

A shortage of required skills in the labor market increases the challenge of retaining skilled employees. When demand for specific skills is high, employees have more opportunitieselsewhere, making retention difficult. HRCI emphasizes the importance of creating attractive work environments to retain skilled talent in competitive markets.

The turnover rate is calculated as follows:

Turnover Rate=(Number of TurnoversTotal Employees)×100\text{Turnover Rate} = \left(\frac{\text{Number of Turnovers}}{\text{Total Employees}}\right) \times 100Turnover Rate=(Total EmployeesNumber of Turnovers​)×100Turnover Rate=(501000)×100=5%\text{Turnover Rate} = \left(\frac{50}{1000}\right) \times 100 = 5\%Turnover Rate=(100050​)×100=5%

HRCI points out that calculating turnover rates is essential for assessing retention issues and identifying potential areas for improvement.