CHAPTER

1

Human Resources Certifications

The skills and abilities that an HR professional uses to produce desired results requires a mastery of sorts. Mastery of any profession will involve a continuous career-long commitment to learning, and that is a foundational truth within the Human Resources profession. HR has been, and continues to be, an evolving component of an organization because its basic focus is on people. The constant changes and outside influences on an organization’s workforce increase the demands on HR professionals. HR professionals today walk a tight line and must master the art of staying two steps ahead while having one foot firmly planted in the present.

The HR Certification Institute (HRCI, http://www.hrci.org) was established in 1976 as an internationally recognized certifying organization for the human resource profession. Its mission has been to develop and deliver the highest quality certification programs that validate mastery in the field of human resource management and contribute to the continued improvement of individual and organizational performance. More than 130,000 HR professionals in more than 100 countries have been certified.

Professional Certification

Credentialing as an HR professional demonstrates to your colleagues and your organization that you are committed to a higher standard and ethic, and dedicated to the HR profession. When you achieve your HR credential, it signals your mastery of core practices and principles in HR management, raising the confidence of an employer and your peers in your abilities.

A professional certification is not to be confused with a certificate program. Professional certifications are based on work experience and education along with recertification requirements. Certificate programs do not require work experience or an educational component, nor do they require recertification. Figure 1-1 shows the HRCI April 2014 certification study.

Figure 1-1 HRCI certification study 2014

The Benefits of Certification

Earning a credential as a PHR (Professional in Human Resources), or SPHR (Senior Professional in Human Resources), adds a level of recognition as an expert in the HR profession. This certification is a distinction that sets you apart in the profession, indicating you have a high level of knowledge and skills. It adds to your career value and to the organization you work in. Your HR Certification could mean the difference between you and your competition. In fact, 96 percent of employers say that an HR-certified candidate applying for a job would have an advantage over a non-certified candidate. And HR professionals who hold the PHR or SPHR tend to make more money than their peers who do not.¹ According to PayScale Human Capital, this pattern is true for all industries and metropolitan areas in the United States. HR certification is becoming an important means for employers to recognize HR expertise and for HR professionals to increase their value and worth.

According to a 2012 HRCI exit survey,² earning a PHR or SPHR credential can help you:

• Boost your confidence with recognition as an HR expert

• Master the knowledge most important to expert HR professionals as defined by the current HRCI body of knowledge

• Expand your outlook on the HR field and bring new ideas to your workplace

• Keep up with HR developments including the latest legislative changes

• Protect your organization from risk by ensuring regulatory compliance

• Stand out from other HR candidates in a job search

• Demonstrate your long-term commitment to the HR profession

The HR Certification Institute Certifications

The Professional in Human Resources (PHR) and Senior Professional in Human Resources (SPHR) exams are created using HRCIs competencies defined as the HR Body of Knowledge, which outlines the responsibilities of and knowledge needed by today’s HR professional. The HR Body of Knowledge (BOK) is created by HR subject matter experts through a rigorous practice analysis study and validated by HR professionals working in the field through an extensive survey instrument. It is updated every five years to ensure it is consistent with current practices in the HR field.

This book focuses on the PHR and SPHR exams and the knowledge required to pass those exams. The main difference between the PHR and SPHR exams is with the weighting of the questions (see the section, “The Exam’s Design” later in this chapter).

NOTE Table 1-1 lists all of the other various HR certifications administered by HRCI for your information.

HRCI has compiled a list of criteria for the ideal PHR and SPHR candidates.³ Compare this list in Table 1-1 to your experience and abilities to determine which exam you are best qualified and suited for.

Table 1-1 HRCI PHR/SPHR Eligibility Requirements

PHR

The Professional in Human Resources (PHR) certification demonstrates mastery of the technical and operational aspects of HR practices and U.S. laws and regulations. This credential is for the HR professional who focuses on program implementation, has a tactical/logistical orientation, is accountable to another HR professional within the organization, and has responsibilities that focus on the HR department rather than the whole organization. The body of knowledge breakdown for the HRCI PHR exam is as follows:⁴

• Business Management and Strategy (11%)

• Workforce Planning and Employment (24%)

• Human Resource Development (18%)

• Compensation and Benefits (19%)

• Employee and Labor Relations (20%)

• Risk Management (8%)

Eligibility Requirements To take The PHR exam, you must meet one of the following requirements:

• A minimum of one year of experience in an exempt-level HR position with a master’s degree or higher, or

• A minimum of two years of experience in an exempt-level HR position with a bachelor’s degree, or

• A minimum of four years of experience in an exempt-level HR position with a high school diploma

SPHR

The Senior Professional in Human Resources (SPHR) certification is recognized as a professionally relevant credential for those who have mastered the strategic and policy-making aspects of HR management in the United States. It is designed for the HR professional who plans, rather than implements, HR policy, focuses on the “big picture,” has ultimate accountability in the HR department, has breadth and depth of knowledge in all HR disciplines, understands the business beyond the HR function, and influences the overall organization. The body of knowledge breakdown for the HRCI SPHR exam is as follows:

• The Business Management and Strategy (30%)

• Workforce Planning and Employment (17%)

• Human Resource Development (19%)

• Compensation and Benefits (13%)

• Employee and Labor Relations (14%)

• Risk Management (7%)

Eligibility Requirements Eligible candidates for the SPHR exam have:

• A minimum of four years of experience in an exempt-level HR position with a master’s degree or higher, or

• A minimum of five years of experience in an exempt-level HR position with a bachelor’s degree, or

• A minimum of seven years of experience in an exempt-level HR position with a high school diploma

NOTE If you are not a good “test taker,” you might want to start out with the PHR exam before jumping into the SPHR exam.

GPHR

HRCI offers a separate certification called Global Professional in Human Resources (GPHR). It focuses on international employment issues associated with widely varying legal requirements and cultural differences. This book is not intended to prepare you for the GPHR exam. This HRCI credential demonstrates the mastery of cross-border HR responsibilities to include strategies of globalization, development of HR policies and initiatives that support organizational global growth and employer retention, and creation of organizational programs, processes, and tools that achieve worldwide business goals. HRCI breaks down its competency and body of knowledge areas on global issues and certification expectations for the GPHR exam as follows:⁵

• Strategic HR Management (25%)

• Global Talent Acquisition and Mobility (21%)

• Global Compensation and Benefits (17%)

• Talent and Organizational Development (22%)

• Workforce Relations and Risk Management (15%)

Eligibility Requirements Eligible candidates for the GPHR exam have:

• A minimum of two years of global experience in an exempt-level HR position with a master’s degree or higher, or

• A minimum of three years of experience (with two of the three being global HR experience) in an exempt-level HR position with a bachelor’s degree, or

• A minimum of four years of experience (with two of the four being global HR experience) in an exempt-level HR position with less than a bachelor’s degree

PHR-CA/SPHR-CA

Both the PHR-CA and the SPHR-CA augment the PHR and SPHR certification exams with a focus on California HR-related laws and practices. HR professionals who earn a PHR-CA or SPHR-CA have proven that they are experts in the laws, rules, regulations, and legal mandates specific to the state of California. These exams do not test knowledge already covered on the PHR or SPHR exam. Candidates must hold a current PHR or SPHR certification to be eligible to sit for the California certification exam. The exam content areas of body of knowledge are the same for both the PHR-CA and the SPHR-CA as follows:⁶

• Compensation/Wage and Hour (22%)

• Employment and Employee Relations (46%)

• Benefits and Leaves of Absence (20%)

• Health, Safety and Workers’ Compensation (12%)

Eligibility Requirements You must hold a current PHR or SPHR designation to sit for the California exam.

HRBP

The Human Resource Business Professional (HRBP) is a competency-based credential that is designed to validate professional-level core HR knowledge and skills. The credential demonstrates mastery of generally accepted technical and operational HR principles, independent of geographic region, from professionals practicing HR outside of the United States. HRCI’s body of knowledge breaks down for the HRBP as follows:⁷

• HR Administration (22%)

• Recruitment and Selection (22%)

• Employee Relations and Communication (20%)

• Training and Development (15%)

• Compensation and Benefits (14%)

• Health, Safety and Security (7%)

Eligibility Requirements The HRBP is eligible to candidates outside of the United States with:

• A minimum of one year of professional-level experience in an HR position with a master’s degree or global equivalent, or

• A minimum of two years of professional-level experience in an HR position with a bachelor’s degree or global equivalent, or

• A minimum of four years of professional-level experience in an HR position with a high school diploma or global equivalent

HRMP

The Human Resource Management Professional (HRMP) demonstrates mastery of generally accepted HR principles in strategy, policy development, and service delivery. The credential is developed to validate the following core HR knowledge and skills, and demonstrated mastery of generally accepted principles, independent of geographic region, from professionals practicing human resources outside of the United States. The HRMP exam content areas are:⁸

• HR as a Business Leader (32%)

• People Development and Talent Management (29%)

• HR Service Delivery (32%)

• Measurement (16%)

Eligibility Requirements

• A minimum of four years of professional-level experience in an HR position with a master’s degree or global equivalent, or

• A minimum of five years of professional-level experience in an HR position with a bachelor’s degree or global equivalent, or

• A minimum of seven years of professional-level experience in an HR position with a high school diploma or global equivalent

Additionally, applicants for the HRMP must demonstrate knowledge of their local HR laws. This requirement may be demonstrated in a variety of ways, including the following:

• Having a national or local certification (such as PHR, SPHR, GPHR) that includes knowledge of employment laws, or

• Having a bachelor’s degree (or global equivalent) or higher in Human Resources, or

• Completing a university- or college-level course in employment law, or

• Completing a formal training class or certificate program in employment law sponsored by a university/college, HR association, or other approved training provider

Recertification

After you are certified, you have to recertify every three years on or before your certification expiration date to keep your designation current. If you do not recertify within the three years, your certification will expire. All certifications are valid for three years. Recertification can be accomplished through demonstrated professional HR activities (which HRCI prefers), by earning 60 recertification credit hours, or retaking the exam. The simplest way is to complete and track a minimum of 60 credit hours of HR-related continuing education activities within the three year period. The “hard” way is to retake the exam, which needs to occur before your current certification expires.

There are several on-the-job activities that earn credit in addition to attending seminars and classes. You can earn recertification credit for a first-time on-the-job project if it has added to your overall HR knowledge. A maximum of 20 credit hours applies. These projects are commonly overlooked and may include examples such as:

• Implementation of a new benefit plan or compensation rollout

• Research, design and implementation of a wellness program

• Research and design of a performance-management system

• Implementation of an HR Information System (HRIS) system

• Participating in labor negotiations

• Creation of an employee handbook

Additionally, teaching HR-related skills or knowledge via training, coaching, and instruction, along with research/publishing in the HR field, will provide recertification credits. Even volunteer activities using HR skills qualifies, as does active professional membership in an HR-related organization such as the Society of Human Resource Management (SHRM) and its many chapters.

NOTE The GPHR requires 15 of the 60 recertification credit hours to be in International HR. The SPHR and HRMP require 15 credit hours of the 60 to be in Business Management and Strategy. The PHR-CA and SPHR-CA require 15 of the 60 recertification credit hours to be specific to California.

HR Certification Institute’s Role

The HR Certification Institute (HRCI) exists to enhance the professionalism of HR professionals with the various certification processes. The institute is a non-profit separate entity from the Society of Human Resource Professionals (SHRM). HRCI is responsible for:

• Conducting the practice analysis that results in the HR Body of Knowledge

• Developing test questions and maintaining the test bank versions

• Determining candidates’ eligibility to take the exams

• Managing the details of test registration and the testing process

• Approving recertification activities by which certified HR professionals retain their designations

HRCI was accredited by the national Commission for Certifying Agencies (NCCA) in 2008. It partners with Prometric (www.prometric.com) for computerized exam delivery.

The Significance of the Body of Knowledge

The HRCI body of knowledge (BOK) is the description of the complete set of concepts, tasks, responsibilities, and the knowledge required to successfully understand and perform generalist HR-related duties associated with each of its credentials. The BOK is periodically updated, typically every five years, to ensure it is consistent with and reflects current practices in the HR field. All exam test questions are specifically linked to a BOK item.

The Test Development Process

HRCI follows certification-industry best practices to create and keep their exams updated. The institute’s question writing and question review processes are designed to reflect the best practices for exam question writing and review in the certification industry. The institute also ensures that questions are developed by actual HR practitioners for the HR practitioner. The following are the steps used in developing its exams:

• Step 1 The process begins with a practice analysis study that defines the HR body of knowledge (BOK) from which exam questions are created. The BOK is a source document that identifies the basic principles, concepts, and knowledge requirements for HR generalists to successfully carry out their duties and responsibilities for each level and type of certification offered by HRCI. A 10-member practice analysis task force is organized that is responsible for conducting critical incident interviews and focus panels to identify and collect current information and practice patterns for HR generalists. This information is sorted into process and content-based approaches to functional areas of responsibility. The final results are submitted to the HRCI Board of Directors for approval. The approved result is the “HR body of knowledge,” also called “exam content.” Practice analysis studies are typically conducted every five years. The next PHR/SPHR practice analysis study will occur in 2018.

• Step 2 Exam item development begins with two U.S. 15-member item writing panels consisting of certified HR professionals who received special training and are tasked to write 35 new test items (questions) each year. Separate 15-member writing panels write test items for the GPHR and the California certification exams.

• Step 3 Questions prepared by the item writing panels are reviewed by item review panels consisting of veteran-writers. These item review panels look to ensure the test questions are reflective of the applicable BOK, are relevant to the HR field, and are adequately supported by the evidence and subject matter expert literature—literature reviewed by a panel that checks for accuracy and proper coding to the HRCI functional area. Items that pass this review screen are collected into an “item bank” to be selected as appropriate for upcoming exams.

• Step 4 All questions must pass validity and reliability testing requirements. This happens when a new test item is initially used on an exam. The new test item is part of 25 unscored items randomly distributed on the exam. Their initial appearance is to develop a statistical profile that will determine whether the item meets validity and reliability requirements based on exam results, thus usable as a scored item on future exams.

• Step 5 Exams consist of 175 questions, 25 of which are unscored, and multiple versions of the exam are created and reviewed by another panel.

• Step 6 A passing score is determined for each of the seven different exam versions.

• Step 7 Each question on the exam version is pre-equated to determine the difficulty level of that version. Item Response Theory (IRT) is used to pre-equate. Because all versions of the exam are pre-equated, the number of questions answered correctly to earn a passing score varies depending on the exam form version. The minimum passing score is a scaled score of 500. This is a floating score based on the degree of difficulty of the exam; that is, a more difficult exam will have a lower floating score while a less difficult exam will have a high floating score.

Figure 1-2 provides a flowchart of the exam test development.

Figure 1-2 HRCI exam development process

All questions appearing on the PHR and SPHR exams are linked to HRCI’s body of knowledge and responsibilities statements, which are located in Chapter 3 and at the front of each functional area in Chapters 4 through 9.

The Exam Experience

All exams are delivered by computer-based testing (CBT). Computer-based testing is the standard for many other test delivery programs. CBT is testing done in person, on a computer, at an approved testing center. CBT offers a more consistent test delivery, faster scoring and reporting, and enhanced test security. Exam takers receive their preliminary pass/fail results before walking out of the testing center. Official pass/fail notices come in the mail a few weeks after the exam.

The PHR, SPHR, and GPHR exams are three hours in length for testing. Both the PHR and SPHR have the same number of multiple-choice questions, 175, of which 150 are scored questions and 25 are pre-test (unscored). The GPHR’s make-up of questions is 165 multiple-choice (140 scored questions and 25 pre-test). The HRBP is lengthier with 170 questions (145 of those are scored, 26 are pre-test), allowing 3 hours and 25 minutes for the exam. The HRMP allows 2 hours and 30 minutes for the exam consisting of 130 questions (105 scored questions and 25 pre-test questions). Both the PHR-CA and the SPHR-CA are allotted 2 hours and 15 minutes and have 125 multiple-choice questions.

Seventy-five percent of the PHR exam and 85 percent of the SPHR exam are heavily experiential—that is, application- or situation-based. The exams test a knowledge or cognitive comprehension level of 25 percent for the PHR and 15 percent for the SPHR. The PHR and the SPHR exams have test questions that require the following:

• Knowledge and comprehension (recall of factual material, translation, or interpretation of a concept)

• Application and problem solving (solving new, real-life problems through application of familiar principles or generalizations)

• Synthesis and evaluation (combining distantly related elements into a whole involving critical judgments in terms of accuracy or consistency of logic)⁹

Strict rules are enforced at the testing centers to ensure a secure, consistent, and fair test experience for all exam takers. Reviewing the “What to Expect” located at www.prometric.com/en-us/for-test-takers/Prepare-for-Test-Day/Pages/what-to-expect.aspx is advisable for preparation. For example, you will be asked to empty your pockets and turn your pockets inside-out, and a purse must be stored in a locker during the test.

Registering for the Exam

Exams are given twice a year (May/June and December/January) depending on the geographical area of the testing center. An easy-to-follow online step-by-step process to register is located at www.hrci.org/apply/application-process/phr-sphr-gphr-ca-application-process. Because of the time it takes to review documentation supporting the application process, there are deadlines associated with registration. We suggest you register early. There are also fees associated with registering, depending on the exam you will be taking. When your application has been deemed eligible, you will receive an Authorization to Test (ATT) letter, which details how you will schedule your exam appointment.

The Exam’s Design

The PHR and SPHR exams will consist of 175 multiple-choice questions. The PHR exam is more heavily weighted in the functional area of Workforce Planning and Employment (24%), whereas the SPHR exam is weighted heavily in the functional area of Business Management and Strategy (30%). Table 1-2 illustrates the differences in the weightings for each exam and indicates the number of questions you can expect in the specific functional areas.

Table 1-2 PHR/SPHR Exam Weighting

HRCI produces multiple versions of the exam for each testing level (PHR and SPHR). Prometric operates computerized-based testing centers across the United States and its system is programmed so that any one of the multiple versions may be used for a testing candidate, which means that the person sitting next to you very well may be taking a different exam. Some test versions have a number of questions where knowledge of the related legislation or the name of a court case will be needed (see Chapter 2 and Appendix B); other versions may not dive into that, or only indirectly. The other variable is whether there are any math questions on the exam; some exams have them, some don’t. As a result, preparing for the exam should address all of this.

According to SHRM, the Spring 2013 national pass rates were as follows:

• PHR: 60%

• SPHR: 58%

• GPHR: 48%

NOTE If you already hold a PHR certification and you do not pass the SPHR exam, you will still retain your PHR certification.

Chapter Review

Professional HR certification serves as an acknowledgment of an HR professional’s demonstrated mastery of core HR skills, principles, and knowledge, which are essential to the best practice in Human Resources. This book provides all the necessary knowledge and principles needed to pass your PHR or SPHR exam. Only your past work experience can provide you with the hands-on experience and critical thinking capabilities that are an additional essential part to earning the PHR and SPHR credentials.

HR certification consists of four key components:

• Eligibility through a combination of past work experience and formal education

• Commitment and demonstration to a high professional ethical standard

• Demonstrated applied knowledge and skills through the exam process

• Ongoing professional development for career lifelong learning through recertification requirements

Having a thorough and complete understanding of the HRCI Body of Knowledge, which is located in Chapter 3 of this book, and the front matter of each functional area in Chapters 4–9, is absolutely vital for identifying a correct answer for both the PHR and SPHR exams. You need to know the objective of those laws and regulations inside-out.

Remember that the PHR and SPHR exams are based on federal laws and cases and not local state laws and ordinances (only the PHR-CA and SPHR-CA have a basis in state law and that would be California).

Last, the HRCI website (www.HRCI.org) goes into far greater detail about exam eligibility, registration, recertification, and what the exam questions may look like. Prepare yourself for scenario types of questions and be sure to take the sample test questions at the end of each chapter in this book. Guessing as a test tactic is not a good substitute for studying in test preparation. Correct answers come from sufficient studying and test practice.

Endnotes

1. PayScale Human Capital research report, “The Market Value of PHR and SPHR Certifications”, http://resources.payscale.com/rs/payscale/images/report_SPHR_PHR.pdf

2. “The Value of HR Certification Around the World”, exit study 2012, http://www.hrci.org/docs/default-source/web-files/2014-certification-handbook-pdf.pdf?sfvrsn=8

3. HRCI Certification Policies and Procedures Handbook, http://www.hrci.org

4. HRCI PHR/SPHR Body of Knowledge Handbook, www.hrci.org/docs/default-source/web-files/phr_sphr-body-of-knowledge-pdf.pdf?sfvrsn=14

5. HRCI GPHR Body of Knowledge Handbook, www.hrci.org/docs/default-source/web-files/gphr-bok-pdf?sfvrsn=0

6. HRCI PHR-CA/SPHR-CA Body of Knowledge Handbook, www.hrci.org/docs/default-source/web-files/2013-california-body-of-knowledge.pdf?sfvrsn=4

7. HRCI HRBP Body of Knowledge Handbook, www.hrci.org/docs/default-source/web-files/hrbpbok-pdf.pdf?sfvrsn=0

8. HRCI HRMP Body of Knowledge Handbook, www.hrci.org/docs/default-source/web-files/hrmpbok-pdf.pdf?sfvrsn=0

9. HRCI Certification Policies and Procedures Handbook, http://www.hrci.org