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HRCI SPHR Exam (page: 13)
HRCI Senior Professional in Human Resources
Updated on: 24-Mar-2026

Viewing Page 13 of 136
SPHR PDF 671 Questions

Which of the following are the benefits of gainsharing programs?
Each correct answer represents a complete solution. Choose all that apply.

  1. Aligns employees to organizational goals
  2. Helps the organization to achieve improvement in key performance measures
  3. Enhances the focus and awareness of employees
  4. Employees are paid on the basis of group performance rather than individual performan

Answer(s): A,B,C

Explanation:

Answer options A, B, and C are correct.The benefits of gainsharing programs are as follows:
What is gainsharing?
Gainsharing is a system of management used by a business to get higher levels of performance through the involvement and participation of its people. As performance improves, employees share financially in the gain (improvement). Gainsharing is about people working smarter together and not just working harder.


Reference:

"http://simple.wikipedia.org/wiki/Gainsharing"
Chapter: Compensation and Benefits



As a HR Professional you must understand the laws and regulations, which affect employee compensation. Which of the following was the first to address a minimum wage for employees?

  1. Davis-Bacon Act
  2. Walsh-Healey Public Contracts Act
  3. Fair Labor Standards Act
  4. Portal-to-Portal Act

Answer(s): A


Reference:

PHR Exam Prep, Pearson Education, ISBN: 978-0-7897-3677-2. Chapter Six: Total Rewards. Official PHR and SPHR Certification Guide, HR Certification Institute, ISBN: 978-1-586- 44149-4, Section III, The US HR Body of Knowledge.
Chapter: Compensation and Benefits
Objective: Compensation



John earns $45, 200 per year as a mechanic in your organization. The $42, 500 per year does not include earnings John may have through shift differentials, benefits, overtime, incentives, and bonuses. Which one of the following terms best describes the $45, 200 per year that John earns?

  1. Variable pay
  2. Hygiene factor pay
  3. Base pay
  4. Market-demand pay

Answer(s): C


Reference:

PHR Exam Prep, Pearson Education, ISBN: 978-0-7897-3677-2. Chapter Six: Total Rewards. Official PHR and SPHR Certification Guide, HR Certification Institute, ISBN: 978-1-586- 44149-4, Section III, The US HR Body of Knowledge.
Chapter: Compensation and Benefits
Objective: Compensation



What is the compa-ratio for an employee that earns $75, 000 per year, but the midpoint for the role is $85, 000 per year?

  1. 88 percent
  2. 113 percent
  3. $10, 000 difference
  4. 1:88

Answer(s): A


Reference:

PHR Exam Prep, Pearson Education, ISBN: 978-0-7897-3677-2. Chapter Six: Total Rewards. Official PHR and SPHR Certification Guide, HR Certification Institute, ISBN: 978-1-586- 44149-4, Section III, The US HR Body of Knowledge.
Chapter: Compensation and Benefits
Objective: Compensation



Which of the following is an example of a nonqualified deferred-compensation plan?

  1. An excess-deferral plan
  2. A target-benefit plan
  3. A money-purchase plan
  4. A cash-balance plan

Answer(s): A

Explanation:

Answer option A is correct. An excess-deferral plan makes up the difference between what an executive could have contributed to a qualified plan if there had not been a limit on contributions and how much was actually contributed because of the discrimination test required by ERISA. These plans are nonqualified because they are not protected by ERISA; they are limited to a small group of executives or highly compensated employees. A target-benefit plan (B) is a hybrid with elements of defined-benefit and money-purchase plans. A money-purchase plan (C) defers a fixed percentage of employee earnings. A cash-balance plan (D) combines elements of defined-benefit and defined-contribution plans. See Chapter 6 for more information.
Chapter: Compensation and Benefits
Objective: Benefits



Viewing Page 13 of 136



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