Exam Code: CHRP-KE

Exam Name: CHRP Knowledge Exam

Associate Certification: Certified Human Resources Professional

Samples: 27Q&As

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Practice CHRP-KE exam online questions below.

1. In which compensation management strategy are separate organizational units given the
responsibility to make their own decisions?
A. Outsourcing
B. Decentralization
C. Re-engineering
D. Centralization
Answer: B
Explanation:
Within compensation governance, decentralization delegates decision-making authority to
separate units or business lines (e.g., pay decisions within corporate parameters). This
contrasts with centralization (D), where decisions reside with a corporate function; outsourcing
(A), which transfers activities to an external provider but not to internal units; and re-engineering
(C), which redesigns processes rather than shifting decision authority. HRPA emphasizes
aligning the level of centralization/decentralization with organizational strategy, risk tolerance,
and the need for consistency vs. local responsiveness.
Relevant HRPA references (no external links): HRPA Study Guide C Compensation Strategy
and
Governance: centralization vs. decentralization; HRPA Competency Framework C Total
Rewards:
design and governance of reward programs.

2. An HR leader wants to implement a proactive retention model to reduce the risk of the
organization losing key talent.
Which of the following actions would relate most directly to this approach?
A. Monitoring engagement scores and pursuing early interventions for teams or individuals
showing declining satisfaction.
B. Evaluating the effectiveness of various recruitment channels in attracting talent.
C. Assessing the frequency and impact of leadership training sessions across the organization.
D. Analyzing exit interview feedback to understand past reasons for departures.
Answer: A
Explanation:
HRPA’s Workforce Planning and Talent Management competencies emphasize predictive and
preventive approaches to retention?using leading indicators (e.g., engagement, intent-to-stay,
workload, manager relations) to trigger early interventions before resignations occur. Option A
aligns directly with proactive retention through ongoing monitoring and targeted actions.
Recruitment channel evaluation (B) improves attraction, not retention. Training program audits
(C) may influence retention indirectly but are not a targeted, predictive retention control. Exit
interview analysis (D) is valuable but reactive, describing causes after separation rather than
preventing it.
Relevant Framework Reference (HRPA): Workforce analytics for retention risk; using
engagement and other leading indicators for proactive talent risk management.
3. How can HR professionals use big data to improve employee retention?
A. Big data can be used to analyze social media profiles to identify the most suitable job
candidates.
B. Big data can be used to assess the real-time performance of employees.
C. Big data can be used for image advertising to attract specific job seekers.
D. Big data can be used to forecast which employees are most likely to leave the organization.
Answer: D
Explanation:
Within the HRPA Professional Competency Framework under Reporting and Financial
Management (HR metrics and analytics), HR is expected to gather, analyze, and interpret HR
data to provide predictive insights that inform decisions. Applying predictive analytics to turnover
data?such as tenure, performance, engagement, absenteeism, and career progression?enables
HR to forecast which employees are at risk of leaving and to target retention interventions
accordingly. Options A and C relate to attraction/branding, and B concerns performance
monitoring rather than retention risk modeling.
Relevant HRPA
Reference: HRPA Professional Competency Framework C Reporting and Financial
Management (HR analytics, predictive insights for decision-making); HRPA Study Guide C HR
Metrics & Analytics (predictive models for turnover/retention).

4. Which of the following scenarios is most likely to pose a hidden challenge to the success of
an organizational change management strategy?
A. The organization invests heavily in new technology but overlooks process adjustments.
B. Employees express enthusiasm for the change but do not fully understand its implications
C. The organization hires external consultants to manage the change but gives them limited
authority.
D. Senior leaders publicly endorse the change but do not alter their own behaviour.
Answer: D
Explanation:
The HRPA Strategy and Organizational Effectiveness competencies stress that successful
change requires visible, aligned leadership behaviours. A critical (and often hidden) failure point
is the “sayC do gap”?leaders publicly endorse change but do not model the new behaviours,
undercutting credibility and reinforcing the status quo. While issues in processes (A),
understanding (B), or consultant authority (C) are important, misaligned leader behaviour most
powerfully derails adoption because culture follows leadership example.
Relevant Framework Reference (HRPA): Strategy and Organizational Effectiveness?change
leadership, alignment of leadership behaviour with desired culture, and reinforcement
mechanisms (HRPA Professional Competency Framework; HRPA Study Guide?change
management and leadership alignment).

5. Which of the following positions are replacement charts prepared for?

A. An organization's entry-level positions
B. An organization's most critical positions
C. All of an organization's positions
D. An organization's part-time positions
Answer: B
Explanation:
Under the HRPA Human Resources Competency Framework (Functional Domain: Workforce
Planning and Talent Management), replacement charts are a key succession planning tool used
to identify and
visualize the readiness of potential successors for key positions.
Replacement charts are typically prepared for critical or key positions where turnover would
significantly disrupt business operations.
Extract:
“Replacement charts are developed for an organization’s critical roles to identify potential
successors, their readiness levels, and developmental needs to ensure leadership continuity.”
(HRPA Competency Framework C Workforce Planning and Talent Management, CHRP Level,
Key Competency: Implement Succession Planning Strategies)
A (Entry-level positions): These generally have larger applicant pools and require less
succession planning.
C (All positions): Impractical and unnecessary for comprehensive replacement charting.
D (Part-time positions): Typically not included in formal succession planning efforts.
Therefore, B. An organization’s most critical positions is the correct answer.
Verified Reference Summary:
HRPA Human Resources Competency Framework C Functional Domain: Workforce Planning
and Talent Management
CHRP Knowledge Exam Blueprint (HRPA, Ontario)
HRPA Exam Preparation Guide C Succession Planning and Talent Management

6. What is the purpose of the management rights article in a collective agreement?

A. It gives management the right to determine the length of the collective agreement
B. It gives management more power in the event of arbitration
C. It gives management more control and flexibility over items such as job seniority
D. It gives management the right to manage the organization, unless stated otherwise
Answer: D
Explanation:
HRPA’s Labour and Employee Relations guidance explains that collective agreements
commonly include a management rights clause, which reserves to the employer the inherent
right to manage and direct the enterprise?such as organizing work, assigning duties, and setting
operational policies?except to the extent that such rights are limited by the specific terms of the
collective agreement or applicable law. It does not, by itself, determine agreement length (which
is negotiated), confer special advantage at arbitration, or unilaterally change seniority provisions
(which are governed by explicit clauses).
Reference: HRPA Professional Competency Framework (Labour and Employee
Relations?collective agreement interpretation and administration); HRPA Study
Guide?management rights clauses and their limits within collective bargaining agreements.

7. Which of the following work arrangements provides multiple work schedule alternatives aimed
at increasing job satisfaction and reducing employee absenteeism?
A. Flextime
B. Job involvement
C. Job enrichment
D. Management by objectives
Answer: A
Explanation:
According to the HRPA Human Resources Competency Framework (Functional Domain:
Organizational Effectiveness), flexible work arrangements are a key component of job design
strategies aimed at improving work-life balance, job satisfaction, and retention.
Flextime allows employees to vary their start and end times while maintaining the required total
number of work hours. This flexibility supports reduced absenteeism, higher morale, and greater
job satisfaction.
Extract:
“Flexible scheduling arrangements such as flextime enhance employee engagement and
attendance by allowing individualized work schedules within organizational requirements.”
(HRPA Competency Framework C Organizational Effectiveness, CHRP Level, Key
Competency: Design Work Systems to Support Employee Effectiveness)
Option Analysis:
A (Flextime): Correct ? provides alternative schedules that improve satisfaction and reduce
absenteeism.
B (Job involvement): Refers to psychological identification with one’s job, not scheduling
flexibility.
C (Job enrichment): Increases job depth and autonomy, not scheduling alternatives.
D (MBO): Goal-setting system, not a work arrangement. Thus, A. Flextime is the correct
answer.
Verified Reference Summary:
HRPA Human Resources Competency Framework C Organizational Effectiveness
CHRP Knowledge Exam Blueprint C Job Design and Flexible Work Arrangements
HRPA Exam Preparation Guide C Work Design and Motivation

8. Which of the following describes a mechanism to increase employee engagement by sharing

the organization's earnings at the end of the year?
A. Production bonuses
B. Stock option plan
C. Gain-sharing plan
D. Profit-sharing plan
Answer: D
Explanation:
HRPA’s Total Rewards guidance differentiates shared-success plans by what is being shared.
Profit-sharing distributes a portion of the organization’s profits/earnings, often on an annual
basis, to employees?explicitly connecting employee contribution to year-end organizational
results and thereby supporting engagement.
Production bonuses reward output levels, not earnings.
Stock options provide a right to purchase shares and are tied to market value appreciation, not
necessarily current-year earnings distribution.
Gain-sharing shares productivity or cost-saving gains (unit/department level), not overall profits.
Reference (HRPA):
Professional Competency Framework ? Total Rewards: distinguishing profit-sharing from gain-
sharing and output bonuses.
HRPA Study Guide ? Variable Pay: definitions and purposes of profit-sharing versus gain-
sharing.

9. An employee who increases their smoking, use of alcohol, or reliance on psychotherapeutic

drugs during periods of increased stress is most likely showing which type of strain?
A. Psychological
B. Physical
C. Organizational
D. Behavioural
Answer: D
Explanation:
In HRPA’s Health, Wellness, and Safe Workplace content on occupational stress, strain
reactions are grouped as psychological (e.g., anxiety, depression), physical/physiological (e.g.,
headaches, hypertension), and behavioural (e.g., increased smoking, alcohol/drug use,
absenteeism). Substance use as a coping response is expressly identified as a behavioural
strain indicator.
Relevant HRPA references (no external links):
HRPA Study Guide C Occupational Stress and Strain: behavioural, psychological, and
physiological strain categories.
HRPA Competency Framework C Health, Safety & Wellness: “identify and address factors
contributing to stress and unhealthy coping behaviours.”

10. Which of the following assessments is included when reporting on the operational
effectiveness of human capital investments?
A. How human capital processes improved the accuracy and timeliness of reporting the
quarterly financial results
B. How human capital interventions improved the quality and frequency of on-time deliveries
C. How human capital investments improved the net value of specific HR training initiatives
D. How human capital management principles were integrated into strategic workforce planning
changes
Answer: B
Explanation:
Within the HRPA Professional Competency Framework’s Reporting and Financial Management
domain, HR professionals are expected to link human capital investments to operational
outcomes and to “translate HR activities into measures that reflect operational performance
(productivity, quality, timeliness, service levels).” Reporting on on-time deliveries and quality
directly evidences how people practices affect day-to-day operations and process
reliability?core indicators of operational effectiveness.
Option A focuses on the efficiency of financial reporting processes, not the organization’s
operating performance.
Option C is an ROI/valuation view of an HR program (important, but that is financial
effectiveness, not operational).
Option D speaks to governance/alignment in strategy design rather than an operational
performance result.
Reference (HRPA):
Professional Competency Framework ? Reporting and Financial Management: measuring and
reporting how HR investments impact operational KPIs (productivity, quality, timeliness,
service).
HRPA Study Guide ? HR Metrics and Analytics: connecting human capital interventions to
business operations (e.g., defect rates, cycle time, on-time delivery).

11. The HR scorecard primarily helps an organization to do what?

A. Track the number of employees joining and leaving the organization each month.
B. Assess the profitability of individual business units.
C. Link human capital metrics with business strategy and performance.
D. Evaluate the effectiveness of the organization's internal training programs.
Answer: C
Explanation:
HRPA positions the HR (or human capital) scorecard as a strategy-aligned measurement
system that links HR deliverables and workforce capabilities to organizational strategy and
performance outcomes. While turnover counts (A) and training evaluations (D) can be
components, the distinguishing purpose of the HR scorecard is strategic alignment?translating
strategy into HR metrics and demonstrating HR’s impact on business results. Profitability by
business unit (B) is a finance/controllership analysis rather than the HR scorecard’s core
function.
Relevant HRPA references (no external links):
HRPA Study Guide C HR Metrics, Analytics, and the HR Scorecard: aligning HR measures with
strategy and outcomes.
HRPA Competency Framework C Reporting & Financial Management: using metrics to
demonstrate HR’s contribution to organizational performance.

12. The compa-ratio at an organization is set at 107%.

What does this mean with regard to salaries?
A. Salaries are set at 93% of the midpoint of market salaries in the industry
B. Salaries are 107% higher than the midpoint of market salaries in the industry
C. Salaries are 14% higher than the midpoint of the pay grade
D. Salaries are 7% higher than the midpoint of the pay grade
Answer: D
Explanation:
Within the HRPA Human Resources Competency Framework (Functional Domain: Total
Rewards), HR professionals must be proficient in interpreting and applying compensation
metrics such as the compa-ratio to assess pay competitiveness and internal equity.
Compa-Ratio Formula:
Compa-Ratio=(Employee’s Pay)/(Midpoint of Pay Range) ×100
A compa-ratio of 100% means an employee’s pay equals the midpoint of their pay range.
A ratio above 100% indicates pay is above the midpoint, while below 100% means pay is below
the midpoint.
Extract:
“Compa-ratio measures the relationship between an employee’s pay and the pay range
midpoint to assess pay positioning within the structure.”
(HRPA Competency Framework C Total Rewards, CHRP Level, Key Competency: Analyze and
Administer Compensation Systems)
Interpretation of 107%:
Employees are paid 7% above the midpoint of the pay range ? reflecting a position slightly
above market or internal midpoint values.
This often indicates higher experience, strong performance, or pay nearing the range maximum.
Explanation of Options:
A: Incorrect; 93% would mean salaries are below midpoint.
B: Incorrect; 107% means 7% higher, not 107% higher.
C: Incorrect; misstates the difference.
D: Correct; 107% means salaries are 7% higher than the midpoint.
Therefore, D. Salaries are 7% higher than the midpoint of the pay grade is the correct
interpretation.
Verified Reference Summary:
HRPA Human Resources Competency Framework C Functional Domain: Total Rewards CHRP
Knowledge Exam Blueprint C Compensation Metrics and Analysis HRPA Exam Preparation
Guide C Base Pay and Market Competitiveness

13. How should an HR professional respond to an employee who wants to understand why their
prescription benefit claim has been denied?
A. Notify the employee's manager and request their intervention
B. Provide the employee with the benefit plan administrator's contact information
C. Discuss with the employee their experience obtaining coverage for other prescriptions
D. Follow up with the pharmacist on behalf of the employee
Answer: B
Explanation:
The HRPA Human Resources Competency Framework (Functional Domain: Total Rewards)
outlines that HR professionals are responsible for administering employee benefit programs and
ensuring compliance with privacy and governance standards.
When employees inquire about claim decisions, the HR role is to direct them to the benefit plan
administrator?the party authorized to explain claim determinations. HR must not discuss
medical or personal details, as doing so could breach confidentiality or privacy regulations.
Extract:
“HR professionals provide accurate information about benefit administration processes and
refer employees to the appropriate service providers for confidential claim resolution.”
(HRPA Competency Framework C Total Rewards, CHRP Level, Key Competency: Administer
Employee Benefit Programs)
Therefore, B. Provide the employee with the benefit plan administrator's contact information is
correct.
Verified Reference Summary:
HRPA Human Resources Competency Framework C Functional Domain: Total Rewards CHRP
Knowledge Exam Blueprint C Compensation and Benefits HRPA Exam Preparation Guide C
Benefits Administration and Privacy

14. Which of the following is true regarding a mediator's role in helping to resolve a dispute?
A. The mediator can repackage proposals in a way that the parties had not previously
considered
B. The mediator will encourage hostile parties to focus on and work through their emotions
together.
C. The mediator states their opinion to one of the parties while in the company of the other
party.
D. The mediator often makes proposals that allow each party to maintain previous positions.
Answer: A
Explanation:
In HRPA’s Labour and Employee Relations competencies (dispute resolution and alternative
dispute resolution), mediators act as neutral facilitators who help parties clarify interests,
reframe or repackage proposals, test options, and explore settlement without imposing
outcomes. They avoid actions that compromise neutrality or escalate conflict. B is risky because
mediators typically use caucuses to manage high emotion rather than intensifying confrontation;
C violates neutrality and confidentiality norms; D keeps parties stuck in positions rather than
moving to interest-based solutions.
Relevant HRPA
Reference: HRPA Professional Competency Framework C Labour and Employee Relations
(mediation role, neutrality, option generation); HRPA Study Guide C Dispute Resolution and
Mediation Practices.

15. Which of the following assessment types considers the different perspectives of HR
professionals, supervisors, and other managers when identifying challenges that can be met
through training or development?
A. Needs assessment
B. Transference assessment
C. Learning principles assessment
D. Career management assessment
Answer: A
Explanation:
Within the Learning and Development domain of the HRPA Competency Framework, HR
practitioners are expected to conduct a systematic needs assessment that captures input from
multiple stakeholders (e.g., HR, supervisors, managers) to diagnose performance gaps and
determine whether training or non-training solutions are appropriate. The HRPA Study Guide
describes needs assessment as a front-end analysis that typically includes organizational
analysis, task/role analysis, and person analysis, each requiring perspectives from HR, line
leaders, and managers to ensure alignment with business goals and operational realities. By
design, the needs assessment triangulates these perspectives to identify issues that training
can address (knowledge/skill gaps) versus issues that require other interventions (process,
structure, or resources).
Relevant HRPA references: Learning and Development?Needs Assessment/Analysis;
Organizational, Task, and Person Analysis; competencies requiring HR to “analyze learning
needs using data from multiple stakeholders” and to “align learning with organizational
objectives.”

16. Which form of discrimination would be most likely to result from a recruitment practice that
relies exclusively on employee referrals?
A. Differential treatment
B. Overt discrimination
C. Unconscious bias
D. Systemic discrimination
Answer: D
Explanation:
HRPA’s staffing and employment law guidance explains that exclusive reliance on employee
referrals can perpetuate workforce homogeneity and create barriers for protected groups, even
without intent. This is characteristic of systemic (adverse effect) discrimination?organizational
policies or practices that, while neutral on their face, disproportionately exclude or disadvantage
certain groups. This differs from differential treatment or overt discrimination (intentional, direct)
and from unconscious bias (individual-level bias), which may contribute but does not fully
describe the organization-wide impact of a referral-only practice.
Relevant HRPA references (no external links): HRPA Study Guide C Recruitment and Selection
Compliance; Human Rights and Employment Equity: systemic/adverse effect discrimination;
HRPA Competency Framework C Labour & Employee Relations: ensure selection practices are
fair and non-discriminatory.

17. An HR professional is facing an excessive workload that will prevent her from fulfilling all her
duties to the level expected.
Which of the following best describes her obligation?
A. She must accept all HR-related assignments in accordance with the HRPA Rules of
Professional Conduct
B. She is not obligated to accept all professional assignments, but any HR-related assignments
she accepts must be in compliance with the HRPA Rules of Professional Conduct
C. She is not obligated to accept all professional assignments, but any assignments she
accepts must be in compliance with the HRPA Rules of Professional Conduct and her areas of
competence
D. She is not obligated to accept all professional assignments
Answer: C
Explanation:
The HRPA Rules of Professional Conduct and HRPA Human Resources Competency
Framework (Functional Domain: Professional Practice) emphasize that HR professionals must
act within the limits of their professional competence and maintain integrity and accountability in
accepting or refusing assignments.
Extract:
“Members shall perform professional services only in the areas of their competence and shall
not undertake responsibilities they cannot reasonably fulfill to professional standards.”
(HRPA Rules of Professional Conduct C Section 3.2, Professional Competence)
Therefore:
An HR professional is not obligated to accept every assignment.
Any accepted assignment must be performed in accordance with both professional conduct
standards and competence boundaries.
Option C captures this fully, combining both ethical and competency obligations.
Verified Reference Summary:
HRPA Rules of Professional Conduct C Sections 3.1C3.3
HRPA Human Resources Competency Framework C Professional Practice
CHRP Knowledge Exam Blueprint C Ethical Practice and Professional Standards

18. Which of the following collective agreement clauses is intended to guarantee stability in the
employment relationship during the life of the agreement?
A. Union recognition
B. Union security
C. Management rights
D. No strike or lockout
Answer: D
Explanation:
HRPA’s labour relations guidance explains that a no-strike/no-lockout clause provides for
labour peace during the agreement’s term, directing disputes to the grievance/arbitration
process and thereby ensuring stability in the employment relationship. Recognition, security,
and management rights define parties’ status and authority but do not guarantee strike/lockout
prohibition during the term.
Reference: HRPA Professional Competency Framework ? Labour & Employee Relations
(collective agreement clauses and dispute resolution); HRPA Study Guide ? Collective
Bargaining (purpose of no-strike/no-lockout clauses).

19. An organization wants to develop a program to identify and manage physical, human, and
financial factors that can help reduce its potential liabilities.
What type of program would meet its requirements?
A. Organizational forensics program
B. Due diligence program
C. Organizational well-being program
D. Risk assessment program
Answer: D
Explanation:
HRPA positions risk assessment/risk management as a core organizational effectiveness
practice: systematically identifying, analyzing, and treating risks across people, operations, and
finance to reduce exposure and liability. While due diligence is a compliance expectation within
risk management, a risk assessment program is the overarching approach that identifies and
manages these factors.
Reference: HRPA Professional Competency Framework ? Organizational Effectiveness
(enterprise risk identification, analysis, and control); HRPA Study Guide ? Risk Management
(programs to reduce organizational liability).

20. Which of the following best describes effective preparation of the union and the employer for
an arbitration hearing?
A. Securing lawyers to represent each of the parties
B. Selecting the earliest available arbitrator
C. Creating an agreed statement of facts
D. Booking the hearing at the employer site
Answer: C
Explanation:
HRPA’s Labour and Employee Relations competencies emphasize principled, efficient dispute
resolution and proper preparation for arbitration. A best practice is for the parties to prepare an
agreed statement of facts, narrowing the issues in dispute, clarifying evidence, and focusing the
arbitrator on the matters requiring adjudication. While counsel (A) and logistics (B, D) may be
appropriate, they do not substitute for the substantive efficiency gained by agreeing on facts in
advance.
Relevant Framework Reference (HRPA): Collective agreement administration; grievance and
arbitration processes?case preparation, evidence management, and issue-narrowing practices
(HRPA Professional Competency Framework; HRPA Study Guide?arbitration procedures and
advocacy preparation).

21. According to the exit-voice-loyalty-neglect framework, an employee who demonstrates

higher-than-normal absenteeism, lateness, or reduced work effort is engaging in which type of
response to job dissatisfaction?
A. Voice
B. Exit
C. Neglect
D. Loyalty
Answer: C
Explanation:
HRPA’s coverage of employee attitudes and behaviours (EVLN model) classifies responses to
dissatisfaction as Exit, Voice, Loyalty, and Neglect. Neglect is characterized by withdrawal and
reduced effort, commonly observed as increased absenteeism, tardiness, errors, and lower
performance. Exit involves leaving the organization; Voice involves actively attempting change;
Loyalty is passive optimism while waiting for improvement.
Relevant HRPA references (no external links):
HRPA Study Guide C Organizational Behaviour: Job Satisfaction and the EVLN model.
HRPA Competency Framework C Organizational Effectiveness: diagnosing employee
engagement and withdrawal behaviours.

22. Who should be present during an employee's annual performance appraisal meeting?
A. The employee, the employee's supervisor, a representative from the organization's HR
department, and a representative from the organization's legal department
B. The employee and the employee's supervisor only
C. The employee, the employee's supervisor, and a representative from the organization's legal
department
D. The employee, the employee's supervisor, and a representative from the organization's HR
department
Answer: B
Explanation:
HRPA’s Professional Competency Framework positions managers as the primary owners of
performance management, with HR designing the system, enabling capability, and ensuring
consistency and fairness. Annual appraisal meetings are intended to be a direct, two-way
conversation focused on goals, results, feedback, and development?best achieved between the
employee and their supervisor. HR’s role is advisory (policy, tools, training, calibration) rather
than a routine attendee. Legal participation is exceptional and reserved for complex risk
situations, not standard appraisals.
Therefore, the standard composition is the employee and the supervisor.
Relevant Framework Reference (HRPA):
Professional Competency Framework: performance management?building manager capability;
HR designs frameworks and advises, line leaders conduct assessments and feedback.
HRPA Study Guide: performance management cycle and roles (managerCemployee dialogue;
HR oversight, calibration, and compliance).

23. What is the term for the combined knowledge, skills, and capabilities of an HR professional
that add economic benefit to an organization?
A. Value creation
B. Human capital
C. Sustainability
D. Mentorship
Answer: B
Explanation:
The HRPA Professional Competency Framework defines human capital as the aggregate
knowledge, skills, abilities, and other attributes possessed by individuals that can be deployed
to create organizational value. In the HR context, the competencies and capabilities of HR
professionals themselves constitute human capital when applied to improve outcomes (e.g.,
talent, culture, performance). “Value creation” (A) describes the outcome, not the underlying
stock of capabilities; “sustainability” (C) is a broader organizational objective; and “mentorship”
(D) is a development method, not the asset itself.
Relevant Framework Reference (HRPA): Professional Practice?role of HR as a strategic asset;
definitions of human capital and its contribution to organizational performance.

24. Which of the following is a compensation cost indicator?

A. Average employee earnings as a percentage of revenue.
B. Voluntary and involuntary turnover rates.
C. Number of days absent from work.
D. Number of errors relative to on-time delivery.
Answer: A
Explanation:
Within HRPA’s Reporting and Financial Management competencies, HR is expected to track
and report cost-focused metrics that link people expenses to organizational results. Average
employee earnings as a percentage of revenue is a classic compensation cost indicator (also
referred to as compensation-to-revenue or payroll-to-revenue ratio). By contrast, turnover (B) is
a talent/retention indicator, absenteeism (C) is a attendance/health metric, and errors/on-time
delivery (D) are operational quality/timeliness indicators.
Relevant Framework
Reference: HRPA Professional Competency Framework ? Reporting & Financial Management
(develop and interpret cost metrics, including compensation cost ratios); HRPA Study Guide ?
HR Metrics and Analytics (cost efficiency indicators such as payroll-to-revenue).

25. An HR professional is monitoring trends and sourcing information about key indicators.
Which of the following actions is most important?
A. Projecting the possible impact of trends on the organization
B. Creating systematic methods to collect data and monitor publications
C. Evaluating the credibility of the information
D. Identifying the signals associated with changes and patterns in the environment
Answer: A
Explanation:
According to the HRPA Human Resources Competency Framework (Functional Domain:
Strategy) and the CHRP Knowledge Exam Blueprint, strategic HR professionals must
demonstrate the ability to analyze and interpret external and internal trends to inform
organizational strategy and decision-making.
While all options contribute to environmental scanning, the most critical strategic activity is
projecting the possible impact of identified trends on the organization’s operations, workforce,
and goals.
Key framework guidance:
Environmental Scanning
Involves systematically monitoring external factors such as economic conditions, labour
markets, demographics, and legislation.
Strategic Application
Extract:
“HR professionals assess and project the potential impact of external and internal trends on
organizational strategy, ensuring proactive alignment of human capital priorities.”
(HRPA Competency Framework C Strategy, CHRP Level, Key Competency: Analyze and Apply
Environmental Trends)
Supporting Actions
Creating methods to collect data (Option B), evaluating credibility (Option C), and identifying
signals of change (Option D) are foundational analytical steps, but projecting organizational
impact (Option A) demonstrates strategic-level competency, which aligns with the CHRP-level
expectations.
Therefore, A. Projecting the possible impact of trends on the organization is the most important
action as it moves from analysis to strategic application ? the hallmark of HR strategic capability
per HRPA.
Verified Reference Summary (HRPA Frameworks and Study Materials):
HRPA Human Resources Competency Framework C Functional Domain: Strategy
CHRP Knowledge Exam Blueprint (HRPA, Ontario)
HRPA Exam Preparation Guide C Strategic HR Planning and Environmental Analysis
HRPA Professional Competency Descriptions C CHRP Level, Strategy Domain

26. Which types of graphics are most effective for illustrating the relationship between 2
variables?
A. Pie charts and bar graphs
B. Flow charts and tree charts
C. Line graphs and scatterplots
D. Frequency histograms and distributions
Answer: C
Explanation:
HRPA’s guidance on HR metrics and analytics emphasizes selecting visualizations that match
the analytical purpose. To show relationships between two variables, the recommended visuals
are scatterplots (to display association/correlation between X and Y) and line graphs (to show
how one variable changes with another across time or an ordered scale). Pie charts show
composition, flow/tree charts show processes or hierarchies, and histograms show
distributions?not bivariate relationships.
Relevant HRPA references: Reporting and Financial Management?data visualization principles
for HR analytics.

27. Which major category of workplace stressors is an employee experiencing when they are
struggling with work-family conflict?
A. Role stressors
B. Work scheduling stressors
C. Job content and control stressors
D. Job security and progression stressors
Answer: B
Explanation:
HRPA identifies work scheduling stressors?including hours, shift patterns, and workCfamily
conflict?as a core category of psychosocial hazards. Difficulties balancing work time demands
with family responsibilities are classic scheduling-related stressors, distinct from role
ambiguity/conflict (A), task autonomy and workload design (C), or concerns about job continuity
and career prospects (D).
Reference (HRPA): Professional Competency Framework?Health, Wellness, and Safe
Workplace (psychosocial hazard identification); HRPA Study Guide?categories of workplace
stressors and interventions (workCfamily conflict within scheduling stressors).
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