Free HRCI SPHR Practice Exam with Questions & Answers | Set: 8

The intent here was to avoid increased health insurance costs, which would fall under experience rating — a method insurers use to set premiums based on historical claims. However, making hiring decisions based on family medical history violates the Genetic Information Nondiscrimination Act (GINA).

Extract from HRCI-aligned HR knowledge: In the Employee Relations and Engagement domain, understanding “employment law compliance” and risk mitigation strategies is essential. While the director may have been trying to manage insurance costs, this rationale violates federal employment law, demonstrating poor risk management.

A best practice for a career coach is to focus the conversation (B). At the SPHR level, coaching is understood as a facilitative, client-centered process, not an advisory or directive one. The coach’s primary role is to help the client clarify goals, explore options, and build self-awareness—not to provide answers or compare personal experiences.

Focusing the conversation allows the coach to keep dialogue aligned with the client’s objectives, values, and developmental needs. Skilled coaches use powerful questions, active listening, and reflection to guide clients toward their own insights and decisions. This approach builds ownership, accountability, and long-term capability in the client.

Providing immediate suggestions (D) shifts the interaction into consulting or mentoring and can reduce the client’s engagement in problem-solving. Comparing experiences (A) risks biasing the conversation and redirecting focus away from the client. Meeting in a public place (C) is a logistical choice and not a coaching best practice.

SPHR exam content distinguishes coaching from mentoring and counseling, emphasizing that effective coaching is goal-focused, nonjudgmental, and client-driven. Maintaining focus ensures productive sessions and measurable development outcomes.

References :

HRCI SPHR Exam Content Outline — Functional Area: Learning and Development (coaching; leadership development).

HRCI SPHR Study Guide — Best practices in executive and career coaching.

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Comprehensive and Detailed Explanation:

Executive coaching is designed to develop self-awareness, interpersonal effectiveness, and behavioral change in leadership. The goal is improved leadership effectiveness, not corporate strategy shifts.

SPHR’s development guidance emphasizes behavioral transformation as central to leadership growth and organizational impact.

Engagement is strongest when employees feel integrated into the culture (A) and have opportunities to grow (D). Socialization helps form early bonds; career development sustains long-term motivation.

Extract from HRCI-aligned HR knowledge (Employee Relations and Engagement):

SPHR recognizes that “onboarding experiences and structured career paths are leading drivers of engagement.” Strategic HR must invest in culture assimilation and learning paths to increase commitment and performance.

A best practice for Sarbanes-Oxley (SOX) compliance is to partner with finance to implement safeguards (D). At the SPHR level, SOX compliance is understood as an enterprise-wide governance responsibility, not solely a legal or HR function.

SOX focuses on internal controls, financial reporting integrity, accountability, and risk management. HR supports compliance by collaborating with finance and audit teams to implement controls related to executive compensation, ethics reporting, documentation, and access controls.

Rewarding whistleblowers (C) is not required by SOX and may create unintended incentives. Reducing executive compensation (B) does not address compliance requirements. Altering equity plans (A) is unrelated to internal controls.

SPHR exam content emphasizes cross-functional partnership as essential for effective governance and compliance frameworks.

References :

HRCI SPHR Exam Content Outline — Functional Area: Leadership and Strategy (corporate governance; risk management).

HRCI SPHR Study Guide — HR’s role in SOX compliance.

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The primary advantage of a balanced scorecard approach to variable pay is that it communicates organizational priorities (D). At the SPHR level, compensation systems are used as strategic tools to signal what matters most to the organization.

A balanced scorecard links variable pay to multiple dimensions of performance—financial results, customer outcomes, internal processes, and learning or growth. By tying incentives to these measures, organizations clearly communicate desired behaviors and outcomes across the enterprise. Employees understand not only what is rewarded, but why.

Promoting productivity (A) may occur, but it is not the defining advantage. Tax deferrals (B) are unrelated to balanced scorecards. Enhancing team-based compensation (C) may be a design feature, but the strategic strength of the scorecard lies in alignment and communication.

SPHR exam content emphasizes that variable pay should reinforce strategy execution, and balanced scorecards ensure incentives do not drive narrow or short-term behavior at the expense of broader organizational goals.

References :

HRCI SPHR Exam Content Outline — Functional Area: Total Rewards (incentive design; performance alignment).

HRCI SPHR Study Guide — Balanced scorecard applications in compensation.

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Analysis of environmental scan data enables an organization to plan for changes in the marketplace (C). At the SPHR level, environmental scanning is a strategic tool used to monitor external factors that may affect organizational success.

Environmental scans typically assess political, economic, social, technological, legal, and competitive trends. By analyzing this data, organizations can anticipate shifts in customer demand, labor markets, regulation, and competition, allowing proactive planning rather than reactive response.

Rebranding (A) and acquisitions (B) are possible strategic actions but are not direct outcomes of scanning. Determining the business life cycle stage (D) may be informed by internal analysis rather than external scanning.

SPHR exam content highlights environmental scanning as foundational to strategic planning, workforce forecasting, and risk management, ensuring organizational agility in changing markets.

References :

HRCI SPHR Exam Content Outline — Functional Area: Leadership and Strategy (environmental scanning; strategic planning).

HRCI SPHR Study Guide — Using environmental data for strategic decision-making.

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A: Development programs enhance readiness among underrepresented groups.

C: Broader advertisement ensures visibility and reduces barriers for diverse candidates.

SPHR-level DEI strategies promote equity of access through transparent development and internal mobility initiatives, not quotas.

The most effective sales performance evaluation process includes specific metrics (A). At the SPHR level, performance management systems must be objective, measurable, and aligned with business outcomes.

Sales performance is best evaluated using clearly defined metrics such as revenue generation, conversion rates, customer retention, average deal size, and sales cycle length. These metrics provide transparent standards for evaluating performance and support fair, consistent decision-making related to compensation, development, and advancement.

Tracking product returns (B) and inventory deficits (D) may provide useful operational data but do not fully measure individual sales performance. Workgroup effectiveness (C) may be relevant in team-based sales models but does not replace the need for individual performance metrics.

SPHR exam content highlights that effective performance evaluation systems rely on quantifiable measures to reduce bias and increase accountability, particularly in roles with clear output indicators such as sales.

References :

HRCI SPHR Exam Content Outline — Functional Area: Employee Relations and Engagement (performance management systems).

HRCI SPHR Study Guide — Designing effective sales performance metrics.

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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”​.