Free HRCI SPHR Practice Exam with Questions & Answers | Set: 3

Gross margin = (Revenue – Cost of Goods Sold) ÷ Revenue

Higher COGSandlower revenueboth reduce the margin.

Operating expenses and liabilities impactnet profit, not gross margin directly.

SPHR financial literacy requires knowledge of “how operational changes affect key financial ratios used in strategic planning and compensation modeling”​.

Comprehensive and Detailed Explanation:

Employees have a legal right to engage in concerted activity, including union organizing, under Section 7 of the NLRA. Disciplining or terminating them for such action is illegal.

SPHR candidates must understand protected concerted activity rights. Violating these can lead to unfair labor practice charges.

Strategic cultural change requires asystematic process. After defining and implementing actions toward the desired culture, HR mustmeasure the resultsto assess effectiveness. Measurement includesculture surveys, performance data, and behavioral assessments, aligning with strategic HR practices.

Extract from HRCI-aligned HR knowledge: The SPHR'sLeadership and Strategydomainemphasizes that successful organizational culture change involves “establishing clear metrics and evaluating outcomes” to track strategic alignment and leadership effectiveness. This followsstrategic HR planning and change management models(e.g., Kotter’s Change Model Step 8: Anchor new approaches in the culture through continuous measurement).

A needs assessment identifies development gaps, while a clear timeline ensures progress tracking. These are foundational elements in personalized, high-potential development.

According to SPHR-aligned LandD practices, high-potential development must be structured, intentional, and measurable, integrating assessments and timelines to guide growth​.

A Business Impact Analysis (BIA) identifies how a disruption (e.g., cyberattack, disaster) would impact the organization’s operations, revenue, and compliance, allowing for prioritization and recovery planning.

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

SPHR-level risk strategies include “conducting a BIA to understand the potential consequences of interruptions to business-critical functions.” It’s a foundational step in developing disaster recovery and continuity planning.

C offers measurable outcomes like time-to-fill, quality of hire, and turnover for before/after comparison.

D uses A/B testing logic, comparing a test group to a control group for a grounded assessment.

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

SPHR-level HR must “use data analytics and benchmarking to assess staffing effectiveness.” Metrics such as pre/post KPIs and pilot program evaluations are essential for continuous improvement.

Before initiating any recruitment process, HR must determine thestrategic justificationfor the request. “Business necessity” ensures that the hire aligns withorganizational objectivesand addresses a critical need. This is essential forheadcount control, budget allocation, and workforce planning.

Extract from HRCI-aligned HR knowledge (Leadership and Strategy/ Talent Planning domains):

In SPHR, strategic HR must begin by “evaluating the alignment of talent requests with business needs.” It’s not about filling roles reactively, but about supporting long-term organizational value. HR leaders must act asconsultants to internal clients, beginning with “What is the business case?”

Retention of key talent prevents disruption, maintains institutional knowledge, and ensures continuity. Retention plans can include incentives, development paths, and role clarity.

SPHR integration strategies emphasize “targeted retention planning for high-impact individuals as essential to successful post-merger stabilization”​.

Cost-benefit analysis (CBA)compares the tangible financial gains against the costs of HR programs — ideal for proving HR’sbusiness valuein financial terms.

SPHR professionals must connect HR programs toquantifiable ROI metricsto influence executive decisions.

Comprehensive and Detailed Explanation:

Aniche marketis a targeted segment with unique needs. Strategy focuses onspecialization, not mass appeal.

SPHR business acumen requires understanding market types — “niche strategies offer high margins, tailored offerings, and loyal customer bases, often requiring specialized workforce capabilities.”