A GUIDE TO THE

HUMAN RESOURCE
BODY OF KNOWLEDGE TM

(HRBoK ) TM
Foreword

By Amy Dufrane, EdD, SPHR, CAE – HRCI CEO

As the HR Certification Institute quickly approaches its milestone 40th birthday in

2016, we will have embarked on a number of exciting projects not just since our
inception but also in the past year. Of those, I am very honored to share HRCI’s
first ever “A Guide to the Human Resource Body of Knowledge.”

A BoK (Body of Knowledge) is defined as a document that encompasses the

concepts, knowledge and tasks that are highly regarded by persons of a specific
profession. HRCI’s Guide to the Human Resource Body of Knowledge is divided
into six sections: Business Management and Strategy, Workforce Planning and
Employment, Human Resource Development, Compensation and Benefits,
Employee and Labor Relations, and Risk Management. The information in the
Guide is invaluable; it can be used as a resource for human resource professionals
and for those pursuing certification with HRCI.

Thank you to HRCI’s extraordinary subject matter experts from around the world,
who gave countless hours of their time to pioneer the way to our inaugural Guide
to the Human Resource BoK.

HRCI certifications are the human resource profession’s most recognized and
respected certifications – setting the bar of human resource excellence and
mastery in the U.S. and around the globe. Our certifications are trusted, sought-
after, and respected by human resource professionals, hiring managers, and
organizations alike.

2 A GUIDE TO THE HR BODY OF KNOWLEDGE TM

Disclaimer and Notice

A Guide to the Human Resource Body of KnowledgeTM (the “HRBoKTM”) is

intended to serve as a source of information and best practices for human
resource professionals and is provided for informational purposes only. The
views expressed in the HRBoK are the consensus of multiple authors and do
not necessarily reflect the views of the Human Resources Certification Institute
or its employees, officers, or directors (collectively, “HRCI”), or any individual
or group of authors (collectively, “the authors”). Although HRCI and the
authors made every effort to present accurate, timely, and reliable information
in the HRBoK, HRCI does not endorse, approve, or certify such information,
nor does HRCI make any representations or warranties concerning the
accuracy, completeness, efficacy, or timeliness of the contents of the HRBoK.
Use of the HRBoK is voluntary, and users should carefully make their own
assessment as to the HRBoK’s accuracy, completeness, and relevance for their
purposes, as well as obtain any appropriate professional advice relevant to
their particular circumstances. Users may wish to consult other sources for
additional views or information not covered by this publication. HRCI assumes
no responsibility for consequences resulting from the use of the HRBoK and
the information contained herein. HRCI is not responsible for, and expressly
disclaims all liability for, damages of any kind arising out of use, reference to,
reliance on, or performance of such information.

HR CERTIFICATION INSTITUTE 3
Acknowledgements

The HRCI and leadership of the Guide to the HRBoK project recognizes and
thanks the many individuals who assisted with the creation of the first edition
of the HRBoK Guide. These volunteers demonstrate the breadth of the human
resource profession, with multiple industries, specialties, academic backgrounds,
geographies, and more represented.

The following individuals compromised the HRBoK Working Group:

Chair:........................................................... John D. Varlaro, PhD, MBA, SPHR, GPHR

Vice Chair:............................................................Linda J. Haft, MS HRM, SPHR, CCP

Subgroup Leaders:
Business Management and Strategy: .................................... Javiel Lopez, MS, SPHR
Workforce Planning and Employment:............................ Lynda D. Glover, MA, SPHR
Human Resource Development:.....................................................Lori L. Rolek, SPHR
Compensation and Benefits:...................................................... Alisa Guralnick, SPHR
Employee and Labor Relations....................Karla M. Knowlton, MAOM, PHR, GPHR
Risk Management................................ Nancy L. Hill-Davis, MHSA, MJ, SPHR, CHHR

Working Group Members:

Amy Gulati, GPHR, SPHR-CA, CPDM
Armando A. Villasana, MBA, PHR
Diana Kroushl, SPHR
Doris M. Sims, SPHR
Gary W. Sexton, SPHR, CLRS
Kathusca Johnson, PHR
Lee S. Webster, JD, MBA, SPHR, GPHR
Lin Little, SPHR
Lori S. Goldsmith, SPHR, GPHR
Pantelis Markou, PhD

4 A GUIDE TO THE HR BODY OF KNOWLEDGE TM

Q VanBenschoten, MBA, SPHR, CFE
Rafael M. Uzeda de Oliveira, CHRL, PHR, GPHR
Roland C. Howell, SPHR, GPHR
Ron Drafta, CIH, CSP, SPHR
Sharon L. Beaudry, JD, SPHR
Shiva Dubey, MBA, CCP, GRP, PHR
Stephen I. Otterstrom, SPHR
Sue S. Stalcup, SPHR, LPC-MHSP
Victoria Clavijo, SPHR

Project Consultant Team:

PSI Services
Rory E. McCorkle, PhD, MBA, SPHR, CAE, NPDP
Beth Kalinowski, MBA, SPHR
Siddiq Kassam, MS
Alexandra Kassidis
Melissa McElroy

HRCI HRBoK Team:

Linda K. Anguish, SPHR, GPHR
Rebecca R. Hastings, SPHR-CA
Inga Y. Fong, SPHR, GPHR
Naomi M. Cossack, SPHR-CA

HR CERTIFICATION INSTITUTE 5
Table of Contents
Foreword................................................................................................................2

Disclaimer and Notice............................................................................................3

Acknowledgements...............................................................................................4

Table of Contents..................................................................................................6

Introduction......................................................................................................... 14

1 Scope............................................................................................................... 15

2 Terms and Definitions...................................................................................... 16

3 HR Body of Knowledge...................................................................................21

3.1 Business Management and Strategy........................................... 23

3.1.1 Interpret and apply information related to the organization’s operations
from internal sources, including finance, accounting, business development,
marketing, sales, operations, and information technology, in order to
contribute to the development of the organization’s strategic plan.............24

3.1.2 Interpret information from external sources related to the general

business environment, industry practices and developments, technological
advances, economic environment, labor force, and the legal and
regulatory environment, in order to contribute to the development of the
organization’s strategic plan............................................................................ 25

3.1.3 Participate as a contributing partner in the organization’s strategic

planning process............................................................................................... 26

3.1.4 Establish strategic relationships with key individuals in the organization

to influence organizational decision-making.................................................. 27

6 A GUIDE TO THE HR BODY OF KNOWLEDGE TM

 3.1.5 Establish relationships/alliances with key individuals and outside
organizations to assist in achieving the organization’s strategic goals
and objectives................................................................................................... 28

3.1.6 Develop and utilize business metrics to measure the achievement of

the organization’s strategic goals and objectives.......................................... 29

3.1.7 Develop, influence, and execute strategies for managing organizational

change that balance the expectations and needs of the organization, its
employees, and other stakeholders................................................................ 30

3.1.8 Develop and align the human resource strategic plan with the
organization’s strategic plan.............................................................................31

3.1.9 Facilitate the development and communication of the organization’s

core values, vision, mission, and ethical behaviors........................................ 32

3.1.10 Reinforce the organization’s core values and behavioral expectations

through modeling, communication, and coaching........................................ 33

3.1.11 Provide data such as human capital projections and costs that
support the organization’s overall budget..................................................... 34

3.1.12 Develop and execute business plans that correlate with the
organization’s strategic plan’s performance expectations to include growth
targets, new programs/services, and net income expectations................... 35

3.1.13 Perform cost/benefit analyses on proposed projects.......................... 35

3.1.14 Develop and manage an HR budget that supports the organization’s

strategic goals, objectives, and values........................................................... 36

3.1.15 Monitor the legislative and regulatory environment for proposed

changes and their potential impact to the organization, taking appropriate
proactive steps to support, modify, or oppose the proposed changes.......37

HR CERTIFICATION INSTITUTE 7
 3.1.16 Develop policies and procedures to support corporate
governance initiatives....................................................................................... 38

3.1.17 Participate in enterprise risk management by ensuring that policies

contribute to protecting the organization from potential risks..................... 40

3.1.18 Identify and evaluate alternatives and recommend strategies for

vendor selection and/or outsourcing...............................................................41

3.1.19 Oversee or lead the transition and/or implementation of new systems,

service centers, and outsourcing......................................................................42

3.1.20 Participate in strategic decision-making and due diligence activities

related to organizational structure and design.............................................. 43

3.1.21 Determine strategic application of integrated technical tools

and systems....................................................................................................... 44

3.2 Workforce Planning and Employment........................................46

3.2.1 Ensure that workforce planning and employment activities are
compliant with applicable federal laws and regulations................................47

3.2.2 Identify workforce requirements to achieve the organization’s short-

and long-term goals and objectives................................................................49

3.2.3 Conduct job analyses to create and/or update job descriptions and
identify job competencies............................................................................... 50

3.2.4 Identify, review, document, and update essential job functions

for positions........................................................................................................51

3.2.5 Influence and establish criteria for hiring, retaining, and promoting
based on job descriptions and required competencies................................ 52

3.2.6 Analyze labor market for trends that impact the ability to meet
workforce requirements................................................................................... 53

8 A GUIDE TO THE HR BODY OF KNOWLEDGE TM

 3.2.7 Assess skill sets of internal workforce and external labor market to
determine the availability of qualified candidates, utilizing third party
vendors or agencies as appropriate................................................................ 54

3.2.8 Identify internal and external recruitment sources and implement

selected recruitment methods........................................................................ 55

3.2.9 Establish metrics for workforce planning............................................... 57

3.2.10 Brand and market the organization to potential

qualified applicants.......................................................................................... 57

3.2.11 Develop and implement selection procedures.....................................59

3.2.12 Develop and extend employment offers and conduct

negotiations as necessary.................................................................................61

3.2.13 Administer post-offer employment activities....................................... 62

3.2.14 Develop, implement, and evaluate orientation and on-boarding

processes for new hires, rehires, and transfers............................................... 65

3.2.15 Develop, implement, and evaluate employee retention strategies

and practices......................................................................................................67

3.2.16 Develop, implement, and evaluate the succession

planning process................................................................................................67

3.2.17 Develop and implement the organizational exit/off-boarding process

for both voluntary and involuntary terminations, including planning for
reductions in force (RIF).................................................................................... 68

3.2.18 Develop, implement, and evaluate an affirmative action plan (AAP)

as required..........................................................................................................71

3.2.19 Develop and implement a record retention process for handling

documents and employee files........................................................................72

HR CERTIFICATION INSTITUTE 9
3.3 Human resource development....................................................73
3.3.1 Ensure that human resource development activities are compliant with
all applicable federal laws and regulations......................................................74

3.3.2 Conduct a needs assessment to identify and establish priorities

regarding human resource development activities........................................76

3.3.3 Develop/select and implement employee training programs to

increase individual and organizational effectiveness......................................76

3.3.4 Evaluate effectiveness of employee training programs through the

use of metrics.....................................................................................................78

3.3.5 Develop, implement, and evaluate talent management programs

that include assessing talent, developing career paths, and managing the
placement of high-potential employees..........................................................78

3.3.6 Develop, select, and evaluate performance appraisal processes....... 80

3.3.7 Develop, implement, and evaluate performance management

programs and procedures (includes training for evaluators)..........................81

3.3.8 Develop/select, implement, and evaluate programs to meet the

changing needs of employees and the organization.................................... 83

3.3.9 Provide coaching to managers and executives regarding effectively

managing organizational talent....................................................................... 84

3.4 Compensation and Benefits........................................................85

3.4.1 Ensure that compensation and benefits programs are compliant with
applicable federal laws and regulations..........................................................86

3.4.2 Develop, implement, and evaluate compensation

policies/programs..............................................................................................88

3.4.3 Manage payroll-related information........................................................90

10 A GUIDE TO THE HR BODY OF KNOWLEDGE TM

 3.4.4 Manage outsourced compensation and benefits components............91

3.4.5 Conduct compensation and benefits programs needs assessments..92

3.4.6 Develop/select, implement/administer, update and evaluate

benefit programs...............................................................................................93

3.4.7 Communicate and train the workforce in the compensation and

benefits programs, policies and processes.....................................................96

3.4.8 Develop/select, implement/administer, update, and evaluate an

ethically sound executive compensation program.........................................97

3.4.9 Develop, implement/administer and evaluate expatriate and foreign

national compensation and benefits programs..............................................99

3.5 Employee and Labor Relations................................................. 100

3.5.1 Ensure that employee and labor relations activities are compliant with
applicable federal laws and regulations........................................................102

3.5.2 Assess organizational climate by obtaining employee input..............104

3.5.3 Develop and implement employee relations programs that promote a

positive organizational culture........................................................................105

3.5.4 Evaluate effectiveness of employee relations programs through the

use of metrics...................................................................................................106

3.5.5 Establish, update, and communicate workplace policies and

procedures and monitor their application and enforcement to ensure
consistency....................................................................................................... 107

3.5.6 Develop and implement a discipline policy based on organizational

code of conduct/ethics, ensuring that no disparate impact or other legal
issues arise.......................................................................................................109

HR CERTIFICATION INSTITUTE 11
 3.5.7 Create and administer a termination process ensuring that no
disparate impact or other legal issues arise.................................................. 110

3.5.8 Develop, administer, and evaluate grievance/dispute resolution and

performance improvement policies and procedures................................... 113

3.5.9 Investigate and resolve employee complaints filed with federal

agencies involving employment practices or working conditions, utilizing
professional resources as necessary.............................................................. 114

3.5.10 Develop and direct proactive employee relations strategies for

remaining union-free in non-organized locations......................................... 116

3.5.11 Direct and/or participate in collective bargaining activities, including

contract negotiation, costing, and administration........................................ 117

3.6 Risk Management..................................................................... 119

3.6.1 Ensure that workplace health, safety, security, and privacy activities are
compliant with applicable federal laws and regulations..............................120

3.6.2 Conduct a needs analysis to identify the organization’s

safety requirements.........................................................................................121

3.6.3 Develop/select and implement/administer occupational injury and

illness prevention programs............................................................................122

3.6.4 Establish and administer a return-to-work process after illness or injury

to ensure a safe workplace..............................................................................124

3.6.5 Develop/select, implement, and evaluate plans and policies to protect

employees and other individuals, and to minimize the organization’s
loss and liability................................................................................................ 125

3.6.6 Communicate and train the workforce on security plans and policies.... 126

3.6.7 Develop, monitor, and test business continuity and disaster

recovery plans.................................................................................................. 127

12 A GUIDE TO THE HR BODY OF KNOWLEDGE TM

 3.6.8 Communicate and train the workforce on the business continuity and
disaster recovery plans.................................................................................... 131

3.6.9 Develop policies and procedures to direct the appropriate use of

electronic media and hardware...................................................................... 132

3.6.10 Develop and administer internal and external privacy policies......... 134

Index......................................................................................................... 137

HR CERTIFICATION INSTITUTE 13
Introduction

By John D. Varlaro, PhD, MBA, SPHR, GPHR – Working Group Chair

A Body of Knowledge (BoK) is a unified description of the tasks and processes

within a profession, as determined by practitioners. Practitioners from a variety
of backgrounds with diverse expertise shared their understanding of the practice
of Human Resource Management (HRM) to develop this publication. The HR
1
Certification Institute’s Body of Knowledge is a powerful practitioner-driven
document, outlining the scope and the requisite knowledge of HRM.

The BoK describes the accepted practices and general knowledge within each of
the content areas defined and validated through a human resource job analysis
process. Individuals using this document may benefit by being able to assess
their own knowledge and understanding of HRM practices. Organizations may
benefit from contextualizing their current HRM practices and capabilities when
compared to this BoK. This document, however, does not specify all information,
details, or the “how to” regarding the practices and areas of knowledge.
Individuals and organizations wishing to learn more about areas or desiring
information specific to a content area should reference the appropriate resources.

This BoK represents an important contribution to the profession by providing

practitioners the support needed to be leaders in the practice of HRM. This
is a First Edition. Subsequent editions will be developed to ensure currency
with practices and knowledge, and as such demonstrates the HR Certification
Institute’s continued support of the practice and profession of HRM.

14 A GUIDE TO THE HR BODY OF KNOWLEDGE TM

1
Scope

This body of knowledge provides guidance for the practice of human resource
management (HRM). As such, the scope encompasses essential HRM tasks,
processes, and strategies performed to guide and enhance organizational
performance.

The body of knowledge is intended for use by organizations and practitioners

in the United States, regardless of organizational maturity, size, structure,
or industry. It is intended to provide a framework that practitioners and
organizations may adapt to their specific needs.

The body of knowledge also serves as a reference for the Professional in

Human Resource (PHR®) and Senior Professional in Human Resource (SPHR®)
credentials. This reference is intended for the development of the certifying
examinations and may guide the preparation of qualifying individuals.

While there may be areas of similarity between HRM and other disciplines, the
intention of this body of knowledge is to focus on those areas of knowledge and
practices specific and necessary to HRM.

HR CERTIFICATION INSTITUTE 15
2
Terms and Definitions

For the purposes of this document,

the following terms and definitions
apply.

2.1
Assessment
2.5
Benefits
Rewards, either monetary or non-
monetary, that an employee receives
in addition to a base salary.

2.6
Branding
Promoting an organization by
A singular test or system of tests, identifying its culture, vision, and
observations, or interviews that values through its trademarks, name,
evaluates a variety of personal or and design that distinguish it from
performance dimensions to help other organizations.
guide organizational decisions.
2.7
2.2 Change Management
At-Will Employment The process of transitioning an
An employment status in which the organization from a current state
employer or the employee may end to a future state to achieve desired
the employment relationship at any outcomes.
time for no reason or any reason that
2.8
does not violate applicable law. Coaching
2.3 A method of affecting the learning,
Benchmark (noun) development, and performance of an
A standard for comparing or individual by providing information
determining value. and asking focused questions to
2.4 achieve desired outcomes.
Benchmark (verb)
2.9
To compare metrics, practices, or Compensation
processes against an identified Any type of monetary payment
standard. that an employee receives for work
performed.

16 A GUIDE TO THE HR BODY OF KNOWLEDGE TM

2.10 2.15
Competency Environmental Scan
The knowledge, skills, abilities, The collection and use of
and behaviors needed to perform information about the external
a specific job. environment that may influence an
organization’s strategy.
2.11
Compliance
2.16
Conforming to established laws, Evaluation
guidelines, or regulations. A systematic determination of
a program's merit, worth, and
2.12
Corporate Social Responsibility significance or an individual's
A strategy in which an organization capability and performance,
seeks to positively influence social using a set of consistent and
and environmental issues. objective standards.

2.13 2.17
Disparate Impact Expatriate
The unintended result of an An employee transferred from
organization taking an employment their home country to live and
action that has a disproportionately work in another country for a
negative effect on members of a specified period.
protected class.
2.18
Forecasting
2.14
Engagement A planning process that helps an
The degree in which employees organization prepare for the future by
are committed to an organization’s relying primarily on analysis of trends
mission and goals and actively from past and present data.
contribute to achieve them.
2.19
HR Audit
A review of the human resource
function against compliance
requirements, professional standards,
and organizational needs.

HR CERTIFICATION INSTITUTE 17
2.20 2.24
Human Capital KSAO
The sum total of knowledge, skills, The Knowledge, Skills, Abilities,
and talent possessed by a workforce and Other personal characteristics
and used to perform labor and needed for satisfactory job
produce economic value for performance as determined by
an organization. job analysis.
2.21 2.25
Human Resource Management Mentoring
Developing and implementing An advisory relationship between two
strategies, tools, policies, and individuals with a goal of increasing
processes to achieve results through the career success of one individual
human resource programs that by learning new perspectives, new
contribute to an organization's skills, and new knowledge from a
business objectives. more experienced individual.
2.22 2.26
Job Analysis Metrics
A detailed examination of job tasks, A set of comparable measurements
conditions, aptitude, knowledge, that quantify results.
and skills required for satisfactory
2.27
performance. Needs Analysis
2.23 A systematic approach to assessing
Job Evaluation a program or situation to determine
A systematic process of determining the solution and steps necessary to
the value or worth of a job in relation reach a desired future goal.
to other jobs in an organization and
2.28
to the external market to establish a Organizational Culture
pay structure. The spoken and unspoken
organizational values that affect
how employees identify with the
organization and how they are
expected to behave on the job.

18 A GUIDE TO THE HR BODY OF KNOWLEDGE TM

2.29 2.33
Outsourcing Regulation
The contracting by an organization A rule or law created and enforced by
with a third party vendor for the an administrative agency.
supply of necessary products
2.34
or services. Reliability
2.30 The statistical consistency of
Plan (noun) a measure.
A written account of an intended
2.35
course of action that includes who Repatriation
should take action, when and how The return of an employee to his or
actions should be completed, and her home country after living and
the expected goals to be achieved. working in another country.
2.31 2.36
Plan (verb) Return on Investment (ROI)
To develop a written course of action A measurement that determines the
or program to achieve specific goals cost-benefit or financial effectiveness
or objectives that should include of resources used to produce an
timelines, responsibilities, and asset or outcome.
deliverables by individuals or groups.
2.37
2.32 Stakeholder
Policy A person or group that has a vested
A defined system of principles to interest in an organization.
guide decisions or behaviors and
2.38
achieve outcomes; a statement of Strategic Planning
intent implemented as a procedure The process of defining an
that is adopted by an organization. organization’s direction for the future
in four steps: analysis, development,
implementation,
and evaluation.

HR CERTIFICATION INSTITUTE 19
2.39
Talent
A person or group with natural and
learned knowledge, aptitudes, and
skills required by an organization.

2.40
Total Rewards
Compensation, benefits, and
2.42
Workforce
The people working within
an organization.

2.43
Workforce Diversity
Differences in characteristics,
experiences, or behaviors of
3
other programs used to attract, individuals in an organization,
motivate, develop, retain, and which may refer to internal or
engage employees. acquired dimensions.
2.41
Validity
The extent in which a concept,
conclusion, or statistical
measurement actually measures what
it intends to measure.

20 A GUIDE TO THE HR BODY OF KNOWLEDGE TM

3
HR Body of Knowledge

The HR Body of Knowledge is divided into six functional areas. Each functional
area outlines the responsibilities and knowledge needed to work as an HR
professional in the area of practice.

HR FUNCTIONAL AREAS

Business Developing, contributing to, and supporting the

Management organization’s mission, vision, values, strategic goals,
and Strategy and objectives; formulating policies; guiding and leading
the change process; and evaluating organizational
effectiveness as an organizational leader.

Workforce Planning Developing, implementing, and evaluating sourcing,

and Employment recruitment, hiring, orientation, succession planning,
retention, and organizational exit programs necessary
to ensure the workforce’s ability to achieve the
organization’s goals and objectives.

Human Resource Developing, implementing, and evaluating activities

Development and programs that address employee training and
development, performance appraisal, and talent and
performance management to ensure that the knowledge,
skills, abilities, and performance of the workforce meet
current and future organizational and individual needs.

Compensation Developing/selecting, implementing/administering, and

and Benefits evaluating compensation and benefits programs for all
employee groups in order to support the organization’s
goals, objectives, and values.

HR CERTIFICATION INSTITUTE 21
Employee and Developing, implementing/administering, and evaluating
Labor Relations the workplace in order to maintain relationships and
working conditions that balance employer/employee
needs and rights in support of the organization’s goals
and objectives.

Risk Management Developing, implementing/administering, and evaluating

programs, procedures, and policies in order to provide
a safe, secure working environment and to protect the
organization from potential liability.

22 A GUIDE TO THE HR BODY OF KNOWLEDGE TM

3.1 BUSINESS MANAGEMENT AND STRATEGY

Business management and strategy serves as the foundation for all human
resource initiatives and includes key activities related to developing and
implementing comprehensive policies and plans to support and achieve the
organization’s business objectives. The goals of business management and
strategy activities are to:

77 establish an organization’s vision, mission, and values;

77 guide the organization’s culture;
77 determine an organization’s strategic objectives and goals;
77 develop organizational and strategic action plans;
77 implement management and measurement systems;
77 implement programs and rewards that encourage behaviors in support of the
organization’s strategy; and
77 verify that human resource programs are aligned with and support
organizational values and goals.
Business management and strategy involves setting goals, identifying
opportunities or threats, and analyzing human resource metrics. The
information obtained from this process enables human resource management
to demonstrate business acumen as well as design and implement policies and
plans that confirm activities align with the organization’s strategic objectives.
These activities may include:

77 working with managers to translate the organizational strategy into actionable

group and individual goals and tying employee performance indicators to
these goals;
77 implementing talent management initiatives for workforce planning,
development programs, succession planning, employment branding, and
recruiting strategies to achieve the organization’s mission and goals;

HR CERTIFICATION INSTITUTE 23
77 maintaining knowledge of current employment laws and regulations and
aligning internal policies, procedures, and training resources to achieve
compliance;
77 identifying metrics and return on investment goals to support positive
outcomes of human resource initiatives;
77 reviewing and analyzing internal and external factors such as business,
competitor, industry, legal, and economic trends to meet the needs of the
organization; and
77 allocating an organization’s resources to implement plans.

3.1.1 Interpret and apply information related to the organization’s

operations from internal sources, including finance, accounting, business
development, marketing, sales, operations, and information technology, in
order to contribute to the development of the organization’s strategic plan

Interpreting and applying information from internal sources related to the

organization’s operations is an important step in the development of an
organization’s strategic plan. Human resource management should regularly
scan the organization’s internal environment to gather, assess, and synthesize
business information. This process enables leaders to maximize the organization’s
strengths and minimize its weaknesses. The resulting information helps leaders
formulate the organization’s strategy to develop and maintain a competitive
advantage.

An internal organizational scan may be accomplished by:

77 establishing relationships with leaders and understanding their goals and

needs;
77 identifying and analyzing relevant information about business processes
including finance, accounting, marketing, sales, operations, and information
technology;
77 evaluating the organization’s capabilities, opportunities, and constraints;

24 A GUIDE TO THE HR BODY OF KNOWLEDGE TM

77 defining the organization’s value proposition for stakeholders; and
77 identifying and analyzing metrics to identify internal trends and positive or
negative changes affecting internal operations.

3.1.2 Interpret information from external sources related to the general

business environment, industry practices and developments, technological
advances, economic environment, labor force, and the legal and
regulatory environment, in order to contribute to the development of the
organization’s strategic plan

Interpreting information from external sources allows human resource

management to understand the broader business climate in order to align
human resource activities and operations to the organization’s strategy. The
process begins with gathering, assessing, and synthesizing information regarding
external factors, that the organization has little or no control over, which may
impact operations. The information guides the organization’s strategic decisions
to improve its competitive advantage.

An external scan may be accomplished by reviewing information such as:

77 environmental data including social trends, competitor behavior, and

market share;
77 barriers organizations must overcome to enter an industry or market;
77 technological trends including the availability of software to increase sales or
protect intellectual property;
77 economic conditions including consumer needs, trends, and
financial conditions;
77 labor market trends including the availability of talent; and
77 political, legal, and regulatory issues including fair trade programs and
tax incentives.

HR CERTIFICATION INSTITUTE 25
3.1.3 Participate as a contributing partner in the organization’s strategic
planning process

Human resource management plays an important role in the development of an

organization’s strategic plan. The strategic plan is achieved through the efforts
of an organization’s workforce. HRM’s contributions to this process may include
proposing strategies or ideas to address present and future organizational human
capital needs. This may involve an organizational analysis of the current and
projected staffing levels as well as skill and competency gaps. The results of the
analysis guide decisions and actions that the human resource function should
undertake to support the achievement of the organization’s strategic objectives.

The strategic planning process may include:

77 assessing the organization’s current position in the marketplace and

lifecycle phase;
77 understanding strategic priorities such as growth, diversification, and corporate
social responsibility;
77 visualizing where the organization desires to be in the future and developing
appropriate human resource strategies to align with future objectives;
77 securing sufficient budget, information technology, and human
capital resources;
77 providing the human resource perspective regarding issues that may inhibit
the achievement of organizational goals; and
77 monitoring and evaluating plan execution and results.
Human resource management can forecast workforce size and required
competencies by conducting an organizational analysis to review staffing levels
and mix, job design, and organizational resources. The results of the analysis may
guide decisions and actions that will align human capital with the organization’s
strategic objectives.

26 A GUIDE TO THE HR BODY OF KNOWLEDGE TM

3.1.4 Establish strategic relationships with key individuals in the organization
to influence organizational decision-making

It is necessary to establish strategic relationships with key individuals in the

organization to maximize the effectiveness of human resource management
activities. Human resource related factors and the social nature of work are
integral to business strategy and making well-informed organizational decisions.

Every function relies on employees to achieve results, so it is important for human

resource management to be approachable, ethical, helpful, and transparent
to all stakeholders. However, some business functions affect human resource
operations more directly than others.

Human resource professionals should foster relationships with:

77 leadership to obtain buy-in and support,

77 marketing to help establish the employment brand and value proposition;
77 information technology to implement and support organizational systems
including the human resource information system (HRIS);
77 operations to execute actions associated with the organization’s objectives;
77 legal to understand compliance; and
77 finance and accounting to secure necessary budget resources for human
resource initiatives and to develop human capital projections and metrics.
Building relationships with key individuals allows human resource management to
participate in the strategic decision-making process. Relationship-building efforts
are most likely to influence organizational decision-making when human
resource management:

77 demonstrates the impact of human resource on the business;

77 creates solutions while mitigating risks and avoiding unintended
consequences; and
77 understands economic factors such as return on investment (ROI), key
performance indicators (KPIs), and capital investment.

HR CERTIFICATION INSTITUTE 27
3.1.5 Establish relationships/alliances with key individuals and outside
organizations to assist in achieving the organization’s strategic goals and
objectives

Human resource management must focus on more than internal relationships

in order to help an organization achieve its strategic goals and objectives.
Shared goals are the primary reason for creating relationships or alliances. When
developing relationships with third parties, the organization obtains support and
resources that may not be readily available within the organization. Building and
sustaining relationships outside of the organization can influence the direction
and outcomes of the organizational strategy.

Human resource professionals may consider building relationships with:

77 vendors;
77 professional organizations;
77 industry associations;
77 labor unions;
77 consumer groups;
77 special interest groups; and
77 employment agencies.
Establishing relationships and alliances may include:

77 investing in and committing to each other’s success, or in the case of an

alliance, the parties are motivated to achieve a specific aligned interest;
77 recognizing that combining efforts significantly improves the chance of positive
outcomes; and
77 believing that the risk of joining forces has been managed sufficiently to
promote the exchange of necessary plans, goals, and objectives.

28 A GUIDE TO THE HR BODY OF KNOWLEDGE TM

3.1.6 Develop and utilize business metrics to measure the achievement of
the organization’s strategic goals and objectives

Metrics are a foundational element of business management and strategy

because they help transform data into actionable goals. Metrics track
performance, measure progress and achievement, and help identify
opportunities for improvement.

Metrics are identified, analyzed, and measured at multiple levels and may include:

77 organizational metrics such as employee engagement, turnover, and cost

per hire;
77 division and department metrics such as key performance indicators (KPIs) and
safety record comparisons;
77 project team metrics such as new system implementation results and quality
metrics; and
77 individual metrics such as performance evaluations or ranking and
goal achievement.
The process of developing metrics may include:

77 establishing parameters for success;

77 identifying measures that align with organizational goals such as productivity,
efficiency, safety, and quality;
77 identifying the business impact of achieving or not achieving goals;
77 identifying appropriate industry benchmarks to measure against performance;
77 obtaining and communicating baseline information about what is being
measured; and
77 identifying parameters for each goal to measure achievement.
The process of using metrics may include:

77 identifying gaps between the current state, baseline metrics, and

desired goals;

HR CERTIFICATION INSTITUTE 29
77 interpreting results and recommending actions;
77 benchmarking against industry standards to determine whether the
organization is above, at, or below a standard;
77 updating business goals when new information is provided as appropriate;
77 communicating business needs such as additional resources; and
77 evaluating goal progress and achievement.

3.1.7 Develop, influence, and execute strategies for managing organizational

change that balance the expectations and needs of the organization, its
employees, and other stakeholders

Change management is the process of transitioning an organization from its

current state to a desired future state while considering factors such as human
capital, culture, and stakeholders. The goal of a change management strategy
is to improve the organization’s performance and competitive advantage,
while minimizing the stress that naturally comes with change. Human resource
management guides this process by developing and implementing change
management strategies with leadership, establishing communication plans to
include all stakeholders, providing management with tools to manage the change
process, and measuring the impact that the change has on the organization’s
human capital.

Key steps of a change management process may include:

77 articulating the need for change;

77 identifying key stakeholders who will be affected by the change;
77 evaluating cultural readiness for change;
77 assessing the capacity and capability for change;
77 determining the resources required for implementing change;
77 identifying internal and external factors that could reinforce or impact
the change;

30 A GUIDE TO THE HR BODY OF KNOWLEDGE TM

77 conducting a needs assessment to identify required future skills and behaviors;
77 identifying communication channels and content;
77 implementing the change; and
77 measuring progress and evaluating the outcome.
Considerations when implementing organizational change may include:

77 developing a solid business case to justify the need for change,

77 communicating with employees;
77 helping individuals determine how changes will impact them;
77 providing opportunities for employee involvement;
77 providing support and training;
77 establishing a means for individuals to provide feedback; and
77 creating a reward system to recognize employees for successfully adapting
to changes.
The outcomes of a successfully executed change management strategy
may include:

77 reduced disruption to productivity and efficiency;

77 increased employee engagement and morale;
77 increased ability to adapt to future needs; and
77 achievement of desired performance and competitive advantage.

3.1.8 Develop and align the human resource strategic plan with the
organization’s strategic plan

Developing and aligning the human resource strategic plan with the
organization’s overall strategic plan reinforces shared goals. The human resource
strategic plan translates the organization’s strategic plan into actionable human
resource goals and activities.

HR CERTIFICATION INSTITUTE 31
The human resource strategic plan is the outcome of the human resource
strategic planning process, where the following may be assessed:

77 external trends including changes to workforce demographics or legislation;

77 internal capabilities of the organization’s talent including staff knowledge and
skills, productivity, motivation, turnover and grievance rates; and
77 human resource requirements for meeting the organization’s strategic goals.
Tactical goals and action plans designed to meet different aspects of human
resource management are derived from the human resource strategic plan.
These functions may include workforce planning and employment, training and
development, compensation and benefits, employee and labor relations, and
risk management.

3.1.9 Facilitate the development and communication of the organization’s

core values, vision, mission, and ethical behaviors

An organization’s core values, vision, mission, and ethical behaviors build and
reinforce the organization’s culture. Aligning the culture with the organization’s
strategy is also important to accomplish goals.

Steps to develop the organization’s core values, vision, mission, and ethical
behaviors may include:

77 describing the organization’s principles and beliefs, which are its core values;
77 delineating the organization’s key objectives, which comprise its vision
statement;
77 defining why the organization exists and its target market, which is its mission
statement; and
77 outlining expected behaviors, which represent its ethics policy.
The purpose of communicating the organization’s core values, vision, mission, and
ethical behaviors is to:

77 convey the organization’s culture;

32 A GUIDE TO THE HR BODY OF KNOWLEDGE TM

77 encourage a high level of employee engagement;
77 provide clear expectations for all employees;
77 encourage an inclusive environment;
77 assist in recruiting talent; and
77 provide support when organizational changes take place.
Both internal and external channels should be considered when developing the
communication plan. The internal channels reinforce the organizational culture
with the current workforce while external channels attract potential candidates
and reinforce the organization’s place in the community. Considerations when
developing a communication plan may include:

77 consistent communication across multiple channels such as email, social

media, corporate intranet, mailings, and group meetings;
77 diversity and geographic distribution of the employee population; and
77 tools to help managers respond to employee questions and concerns.

3.1.10 Reinforce the organization’s core values and behavioral expectations

through modeling, communication, and coaching

Core values are the organization’s fundamental beliefs and principles. Reinforcing
the organization’s core values and behavioral expectations through modeling,
communicating, and coaching helps employees understand and exhibit the
desired organizational attributes.

Leaders shape employee beliefs and behaviors by taking specific actions that
demonstrate organizational values. Leaders can embed these values and
behaviors into the organizational culture by:

77 modeling desired behaviors in the workplace;

77 promoting accountability;
77 communicating the purpose and benefits of following the core values; and
77 coaching employees to apply core values in challenging circumstances.

HR CERTIFICATION INSTITUTE 33
Organizational leaders provide incentives for employees to act in accordance
with core values and acceptable standards of behavior by using rewards,
progressive corrective action, leadership development, promotions, and
performance management systems.

3.1.11 Provide data such as human capital projections and costs that support
the organization’s overall budget

Labor costs are often one of the largest expenditures for an organization. Human
resource management plays a critical role in helping to manage the organization’s
overall budget. Human resource management is responsible for developing
and adhering to a departmental budget as well as assisting other organizational
leaders with their budgets by providing the resources needed to hire, retain, and
develop employees across the organization.

Identifying and monitoring key metrics helps to control human resource

allocations within the budget. This helps the organization meet its human
capital needs within proposed budgetary constraints.

Data for key projections and costs may include:

77 workforce planning and employment such as recruiting;

77 training and development such as on-boarding, skills, and leadership training;
77 labor costs such as compensation and benefits;
77 employee and labor relations such as turnover and legal costs;
77 technology costs such as human resource information system (HRIS); and
77 risk management such as accidents, safety training and equipment, and
business continuity needs.

34 A GUIDE TO THE HR BODY OF KNOWLEDGE TM

3.1.12 Develop and execute business plans that correlate with the
organization’s strategic plan’s performance expectations to include growth
targets, new programs/services, and net income expectations

Business plans that correlate with performance expectations align employee,

team, and organizational efforts with the strategic plan. Planning processes that
are not in alignment with the organization’s strategy or that compete for limited
organizational resources may impede the successful execution of plans.

Business plans should be monitored to evaluate success and maintain alignment

with organizational strategy. Success should be measured using quantifiable
metrics or key performance indicators (KPIs).

For example, an organization may want to manage fixed and variable costs in
order to achieve a higher operating income for its investors. The organization
might implement financial incentives to motivate key employees to support the
business growth plan, rather than providing a fixed bonus plan.

Human resource management should monitor employee morale over time

and measure any negative impact on organizational performance. If employee
satisfaction begins to undermine productivity, the changes should
be reevaluated.

3.1.13 Perform cost/benefit analyses on proposed projects

A cost/benefit analysis on proposed projects allows management to determine

whether the expected benefits of a project outweigh the estimated cost.
When performing a cost/benefit analysis, short- and long-term components
and impacts are identified, including consequences of allocating resources or
not implementing the project. Subsequently, the value of each component is
calculated and expressed in terms of a common unit such as time, volume, or,
most often, money.

Costs and benefits that are realized over time are valued differently due to
inflation and interest. Future costs and benefit values should be converted

HR CERTIFICATION INSTITUTE 35
to their present value for the analysis. The net benefit of each project can be
calculated with the present value of the costs and benefits. The net benefit of
the project is the difference between the present value of the benefits and the
present value of the costs.

Net benefit may be expressed as a number or ratio. Organizations generally

determine that a project is worthwhile if the net benefit is positive but may also
develop their own internal metrics. Alternatively, the ratio of the present value
of the benefits to the present value of the costs must be greater than one. A
project with the highest net benefit is the one that will bring the most benefit.

Cost/benefit analysis can guide decisions in several aspects of human resource

management, which may include:

77 workforce planning and employment such as whether an organization should

use internal recruiting resources or an agency;
77 training and development such as whether an organization should develop or
purchase training materials;
77 compensation and benefits such as implementing a new compensation or
benefit program;
77 employee and labor relations such as whether the organization can justify the
use of outplacement services; and
77 risk management such as outsourcing workers’ compensation administration.

3.1.14 Develop and manage an HR budget that supports the organization’s

strategic goals, objectives, and values

A human resource budget outlines the financial resources needed to support

the organization’s strategic goals, objectives, and values. Funds are allocated
according to the tactical goals and action plans that support different aspects of
human resource management.

Budgeting may be administered through a top-down or bottom-up approach. In

a top-down approach, a total amount is defined by organizational leadership and

36 A GUIDE TO THE HR BODY OF KNOWLEDGE TM

then divided into the different aspects of human resource management. Once
finalized, the budget is proposed to management. Conversely, a budget that is
created by the sum of the individual parts is a bottom-up approach.

Other methods to develop a budget are incremental budgeting and zero-based

budgeting. The incremental method uses historical information. New budget
amounts are based on the prior year’s budget and actual expenses. The zero-
based budgeting method requires that every item and amount be justified for
inclusion in the new budget. The strongest justifications are those that link the
proposed budget to the strategic plan.

Human resource management budgets cover many categories, which

may include:

77 workforce planning and employment such as job postings, background checks,

and referral programs;
77 training and development such as certifications, training programs, and
training materials;
77 compensation and benefits such as salaries, bonuses, pensions, and
health insurance;
77 employee and labor relations such as service awards and retention programs;
77 technology such as human resource information system (HRIS); and
77 risk management such as safety training and workers’
compensation administration.

3.1.15 Monitor the legislative and regulatory environment for proposed

changes and their potential impact to the organization, taking appropriate
proactive steps to support, modify, or oppose the proposed changes

Organizations should remain current on legal and regulatory issues by

monitoring the legislative and regulatory environment. If changes in the
legislative and regulatory environment occur, the organization must determine
whether changes need to be made to its strategy, standards, policies,

HR CERTIFICATION INSTITUTE 37
practices, or procedures. Human resource management leads the effort to
implement actions to comply with the changes and to communicate changes to
employees.

When a proposed legislative or regulatory change conflicts with an organization’s

needs, the organization may lobby to oppose the change or suggest
modifications. This may be done alone or in conjunction with other affected
parties and may involve communicating with and educating stakeholders.

Steps to comply with legal or regulatory changes may include:

77 monitoring sources for updates pertaining to employment and business law;

77 determining the impact on the entire organization, or to specific departments,
geographic regions, or employees in the organization;
77 identifying and recommending strategies and actions;
77 updating policies and procedures to align with new laws or regulations;
77 communicating with and training employees; and
77 protecting the interests of the organization by taking action to address
instances of non-compliance.
Failure to remain current on legal and regulatory changes could result in
significant risk for the organization.

3.1.16 Develop policies and procedures to support corporate governance

initiatives

Corporate governance refers to the oversight mechanisms by which an

organization is directed, administered, and controlled. These may include rules
and regulations; processes, policies, and procedures; systems; and ethical
conduct. Sound corporate governance creates responsible and accountable
organizations and increases stakeholder confidence.

38 A GUIDE TO THE HR BODY OF KNOWLEDGE TM

Corporate governance may include:

77 compliance with all applicable legislation including the Sarbanes-Oxley Act

of 2002 (SOX);
77 oversight of organizational controls;
77 proper business conduct and ethical behavior;
77 board of directors rights, responsibilities, and fiduciary duties;
77 board member selection and compensation; and
77 decision-making authority and the rights or limitations of different
management levels in the organization.
Human resource management has a critical role in corporate governance. It is
the responsibility of human resource management to design and implement
policies, systems, and practices that shape organizational culture and reward
results and desired behaviors. Similarly, human resource management must play
an active role in deterring unwanted behaviors or practices that violate laws,
professional standards, or ethics policies.

Corporate governance themes formalized in one or more policies may include:

77 code of conduct and ethical behavior;

77 non-discrimination and fair treatment;
77 whistleblower protection;
77 privacy and confidentiality;
77 conflict of interest;
77 talent selection practices and procedures;
77 rewards plans and programs; and
77 performance management criteria and monitoring.

HR CERTIFICATION INSTITUTE 39
3.1.17 Participate in enterprise risk management by ensuring that policies
contribute to protecting the organization from potential risks

Enterprise risk management provides a framework to identify and mitigate all

risks to an organization. Information derived from the enterprise risk management
process reveals potential risks to human resource management as well as
opportunities for mitigation.

Human resource management contributes information, resources, and ideas to

the organization’s risk management strategy and procedures. Some of these
contributions may include:

77 participating in the development of an organization’s disaster recovery plan or

business continuity plan;
77 providing human resource data and metrics to financial professionals to
develop the organization’s financial risk management plan;
77 developing and implementing policies and procedures to reduce
litigation risks;
77 working with other organizational leaders to understand business goals and
risk management procedures;
77 reviewing employee training programs and resources such as safety, labor
relations, and new employee orientation;
77 educating managers about employment laws and regulations;
77 working with leaders to understand talent needs and identifying vacancy risks;
77 identifying human capital risk mitigation strategies such as developing
successors, capturing employee knowledge, and documenting procedures;
77 reviewing organizational policies and procedures to identify and achieve
compliance with legislative and regulatory changes; and
77 communicating risk management information or policy and procedure
changes to employees.

40 A GUIDE TO THE HR BODY OF KNOWLEDGE TM

3.1.18 Identify and evaluate alternatives and recommend strategies for
vendor selection and/or outsourcing

Outsourcing allows organizations to focus operations and resources on core

business activities. Organizations use outsourcing to allocate specific internal
business processes to external providers and it often serves as a cost reduction
strategy. Examples include background checks, 401(k) administration, payroll
administration, and temporary staffing.

Organizations may also choose to outsource functions where the services and
products provided are being delivered within the organization. Examples may
include administrative purchasing of office supplies, printing machines, building
maintenance, and cleaning services. Whether essential or not, the products
and services provided by these vendors are generally more readily available, of
higher quality, or lower cost than if they were to be handled by employees or
departments within the organization.

The steps to decide whether to outsource services or products may include:

77 assessing the business need;

77 determining whether a remedy for the need can best be achieved by an
external vendor;
77 assessing risk and return on investment (ROI);
77 establishing a budget; and
77 developing selection criteria.
Vendor selection may use the same process as outsourcing or could occur
independently. In both cases, criteria for vendor selection may include:

77 alignment of the request for proposal (RFP), product, and service offerings with
the company’s needs;
77 years in business;
77 reputation and credentials in the industry;

HR CERTIFICATION INSTITUTE 41
77 financial stability;
77 references and feedback from other organizations;
77 price when compared to competitors;
77 terms of the contract; and
77 customization of services.
After selecting a vendor, the organization needs to establish an agreement with
specific deliverables and metrics for success, monitor vendor performance, and
periodically reevaluate the relationship and scope of services.

3.1.19 Oversee or lead the transition and/or implementation of new systems,

service centers, and outsourcing

Human resource management may lead or participate in the transition or

implementation of new systems, service centers, and outsourcing. A critical
aspect is verifying that initiatives meet business goals, are cost effective, and
comply with applicable laws and regulations.

Systems may include software that automates a business process or function.

Service centers organize employees according to functional areas of the business
and provide a narrow scope of services. For example, an organization may
consolidate benefit administration into a single work group to service the entire
workforce. Outsourcing is an arrangement in which a task or functional area is
transitioned to a third party. For example, an institution of higher education may
outsource grounds maintenance to focus on its core academic competencies
and mission.

Human resource management generally participates in:

77 selecting and implementing systems used to manage employee data;

77 determining reporting requirements, metrics, and benchmarks;
77 assisting stakeholders in the documentation of workflows;
77 determining whether a service center strategy is appropriate;

42 A GUIDE TO THE HR BODY OF KNOWLEDGE TM

77 implementing a process for routing internal or external customers to the
appropriate service center;
77 verifying outsourcing strategies and procedures comply with applicable
employment laws and regulations; and
77 providing training and communication to support the effective use of new
systems, service centers, and outsourcing initiatives.
Efforts to implement or transition to new systems, service centers, or outsourcing
initiatives may include:

77 establishing and communicating a project plan to stakeholders;

77 creating a change management plan to help employees adapt to changes;
77 establishing and monitoring metrics; and
77 evaluating the initiative’s success.

3.1.20 Participate in strategic decision-making and due diligence activities

related to organizational structure and design

Participating in strategic decision-making and due diligence activities involves

the analysis of potential benefits and risks related to organizational structure
and design when an organization undergoes restructuring, mergers,
acquisitions, or divestitures.

The focus of organizational design is the integration of people, core business

processes, organizational culture, systems, and technology to support the
strategy. Adequate integration of people and culture is critical to the success
of a merger.

When participating in due diligence to design a new organizational structure,

considerations for each organization or functional group may include the
assessment of:

77 strategies of each component involved in the merger, acquisition,

or restructure;

HR CERTIFICATION INSTITUTE 43
77 cultures for compatibility including values, leadership and management style,
level of engagement, and motivation;
77 workforce characteristics including the number and locations of current
employees, officers, and directors, as well as job analysis information, job
descriptions, organizational charts, management structure, and
performance reviews;
77 training and development programs and resources;
77 compensation and benefits alignment including salary structures, incentive
targets, pay ranges, stock options, retirement or pension plans, and paid time
off (PTO) policies;
77 employee and labor relations programs such as employment contracts,
employee handbooks, global mobility, termination policies, severance
practices, and litigation; and
77 risk management policies and risk factors including accident rates, potential
claims, financial impact, employee retention, and client-loss.
Insider trading laws and non-disclosure agreements may prevent due diligence
participants from being able to disclose certain information; therefore,
communication needs to be carefully planned.

3.1.21 Determine strategic application of integrated technical tools and

systems

The integration of technical tools and systems into the human resource and
organizational strategy enables organizations to provide effective and efficient
delivery of human resource services. Examples may include:

77 learning management system (LMS);

77 talent management system (TMS);
77 manager self-service (MSS);
77 employee self-service (ESS); and
77 applicant tracking system (ATS).

44 A GUIDE TO THE HR BODY OF KNOWLEDGE TM

Understanding what the organization needs to meet its strategic goals can be
achieved by asking questions such as:

77 What data is required to understand organizational performance and

leadership capabilities?
77 What are the inputs and outputs of critical processes?
77 Would efficiency and productivity increase if specific tools were implemented?
77 What is the priority to address any gaps discovered?
77 What processes could or should be automated?
77 Do employees have the technical competencies to use the system?
An important factor to consider when implementing tools and systems is data
security. Examples of security questions to ask may include:

77 Who is responsible for data security?

77 Will the data be stored internally or externally?
77 What protocols should be established for managing the data?
77 How will data access be defined and managed?
77 What processes will be followed in the event of breach or loss?
77 Which laws and regulations affect data management, storage, and security?
Budgetary needs, work process efficiencies, and return on investment (ROI)
analysis should factor into selecting which tools or technologies to use. The steps
to determine the systems and tools to use may include:

77 understanding the associated business process;

77 reviewing system and tool options or working with procurement to initiate a
request for proposal (RFP) process; and
77 implementing activities that focus on organization development, change
management, and employee development to prepare for the new
tool or system.

HR CERTIFICATION INSTITUTE 45
When making the decision to integrate technical tools, human resource
management must also consider the impact technology may present to
candidates and employees. For example, employees with less access to tools or
low technical aptitude could require the organization to provide extra training or
alternative solutions.

3.2 WORKFORCE PLANNING AND EMPLOYMENT

Workforce planning and employment involves key activities related to

developing, implementing, and evaluating processes and programs needed
to recruit, select, and retain the organization’s talent. It is essential for the
organization to have the right talent to accomplish its mission and vision.

The goals of workforce planning and employment activities are to:

77 understand workforce trends and their impact on the viability and

effectiveness of the organization;
77 align talent management activities with the goals and strategies of
the organization;
77 maximize productivity through staffing decisions within the organization; and
77 assess the financial impact of employment to the organization.
Workforce planning involves the strategic analysis of talent requirements
affecting the organization. The analysis may include the examination of external
factors such as the availability and location of potential candidates. The analysis
may also include internal factors such as gaps in essential skills and the seniority
or retirement plans of current employees, especially those who occupy key roles
or difficult-to-fill positions. The information obtained from this process enables
the organization to determine what combination of experience, knowledge, and
skills are required and when they will be needed. This information is used to
design and implement activities that help the organization attract, hire, develop,
retain, and reassign employees with the skills necessary to meet
organizational goals.

46 A GUIDE TO THE HR BODY OF KNOWLEDGE TM

Information from the workforce planning process can also be used to determine
when to right-size the organization through natural attrition or through activities
such as a reduction in force (RIF). The activities involved in workforce planning
may include:

77 evaluating the composition of the workforce needed to manage and

accomplish the organization’s future business goals and objectives;
77 identifying gaps between future organizational needs and the existing
workforce, including any special skills required for future growth
and sustainability;
77 developing recruitment, training, and succession planning strategies and
resources to effectively address identified skill gaps;
77 examining key roles to determine whether the outsourcing of functions and
processes is a practical solution to acquire needed skills; and
77 identifying roles that are no longer relevant and determining whether it is
necessary to eliminate a position or reassign individuals to new roles.

3.2.1 Ensure that workforce planning and employment activities are

compliant with applicable federal laws and regulations

Workforce planning and employment activities must comply with applicable laws
and regulations. This promotes a positive culture that is free from discriminatory
practices. These compliance activities may also help protect the organization
from costly legal actions.

Key laws governing workforce planning and employment activities may

include those that:

77 address discrimination and equal employment such as the Americans with

Disabilities Act (ADA) and the ADA Amendments Act (ADAAA), the Age
Discrimination in Employment Act (ADEA), and Title VII of the Civil Rights Act
of 1964, as amended;

HR CERTIFICATION INSTITUTE 47
77 govern affirmative action such as various executive orders, consent decrees, or
Office of Federal Contract Compliance Programs (OFCCP) requirements;
77 protect those who served in the armed forces such as the Vietnam Era
Veterans Readjustment Assistance Act (VEVRAA) and the Uniformed Services
Employment and Reemployment Rights Act (USERRA);
77 govern notification in advance of layoffs such as the Worker Adjustment and
Retraining Notification Act (WARN); and
77 govern employee privacy such as the Privacy Act of 1974.
In order to verify compliance, human resource management must know the
requirements of relevant laws and regulations, especially those that require:

77 annual reporting of workforce demographics;

77 regulated hiring because of federal contracts; and
77 reporting employment information to specific agencies based on industry,
size, or function.
In addition, human resource management must monitor updates or revisions to
existing legislation as well as new laws or regulations affecting the organization.
Actions to verify compliance may include:

77 maintaining required documentation of employment actions;

77 meeting legal reporting and posting requirements and responding
to inquiries from governing agencies such as the Equal Employment
Opportunity Commission (EEOC) or Office of Federal Contract Compliance
Programs (OFCCP) in a timely manner;
77 developing employment policies and practices that are compliant with
applicable laws and regulations;
77 conducting periodic human resource audits of programs related to selection
processes, employee development activities, or restructuring/downsizing plans
and adjusting those activities to address any violation based on audit findings;

48 A GUIDE TO THE HR BODY OF KNOWLEDGE TM

77 educating employees and managers involved in the implementation of
employment activities about applicable laws and regulations regarding
interviewing, selecting, and reviewing employee performance; and
77 verifying that employment agreements, handbooks, manuals, or other
documents are free from language that can be interpreted in a way that
violates employment laws.

3.2.2 Identify workforce requirements to achieve the organization’s short-

and long-term goals and objectives

A systematic review of the organization’s strategy and business plans allows

human resource management to determine the human capital requirements
necessary for organizational success. The review outlines the required workforce
competencies and assesses current workforce capabilities, specific goals and
objectives, and financial forecasts. The required knowledge, skills, abilities,
and other characteristics (KSAOs) for job performance are compared with the
internal and external labor market to discover competency gaps and form a plan
to bridge them. Workforce planning may include downsizing or expanding the
number of employees based on organizational needs.

Workforce strategies must support an organization’s objectives. Implementation

should be guided and continually evaluated using aligned project plans,
quantitative and qualitative data, defined metrics, and supporting technology.
Plans should be adjusted as needed to align with organizational goals.

Quantitative and qualitative information is needed to assess the current

workforce. Qualitative information comes from the work environment such as
interviews with organizational leaders to define which positions are required.
Quantitative information comes from sources such as headcount, historical
turnover rates, and demographics. With this data, it is possible to determine the
jobs that are critical to sustain the organization’s long-term
competitive advantage.

HR CERTIFICATION INSTITUTE 49
Workforce planning is a cyclical process. The analyses involved to create the plan
may include:

77 supply analysis, which involves the review of the organization’s current

talent pool;
77 demand analysis, which includes the review of the organization’s strategic
plans, future objectives, and the necessary workforce to meet those plans;
77 gap analysis, which compares staffing supply and demand leading to the
identification of surpluses and deficits in skills and labor; and
77 problem and solution analysis, which focuses on how to address future
needs through internal and external methods that may include recruiting,
retraining, succession planning, temporary placement and internal transfers, or
outsourcing certain functions to address deficits identified in the gap analysis.
The resulting data provides useful metrics that can be evaluated and monitored.
Adjustments can then be made to achieve desired organizational outcomes.

3.2.3 Conduct job analyses to create and/or update job descriptions and
identify job competencies

The purpose of a job analysis is to gain a better understanding of specifications

and required qualifications for positions, improving both selection and
performance. A job analysis is conducted to define the knowledge, skills, abilities,
and other characteristics (KSAOs) needed for job success. It provides information
for creating or updating job descriptions and identifies essential competencies
required to demonstrate performance.

A job analysis may also be used as a systematic process to identify the job’s
relationship to other jobs in a functional area, and organizational goals and
objectives. A job analysis identifies differences in similar jobs and the core
requirements necessary to perform essential functions with or without a
reasonable accommodation.

50 A GUIDE TO THE HR BODY OF KNOWLEDGE TM

To create the most accurate job descriptions, it is best to use several methods of
job analysis. Methods used to assess required job competencies, the amount of
time spent on critical tasks, the level or complexity of required decision-making,
and the amount of internal and external contact required by a job may include:

77 interviews;
77 observations of job incumbents;
77 focus groups;
77 critical incident techniques;
77 job diaries; and
77 questionnaires.
Data gathered from the job analysis may provide strategic direction for:

77 recruitment, selection, and training;

77 performance management;
77 organizational development;
77 employee classification and compensation; and
77 compliance with applicable laws and regulations.

3.2.4 Identify, review, document, and update essential job functions

for positions

Identifying, reviewing, and updating essential job functions for positions validates
that organizations are hiring and retaining the most qualified individuals for the
right jobs. Essential job functions are the basic job duties that an employee must
be able to perform with or without a reasonable accommodation. Other factors
for managers to consider when determining an essential job function include:

77 whether the reason the job exists is to perform that function;

77 the number of other employees available to perform the function or among
whom the performance of the function can be distributed; and

HR CERTIFICATION INSTITUTE 51
77 the degree of expertise or skill required to perform the function.
As business needs change, essential job functions and competencies for
the positions within the organization may also change. Therefore, ongoing
reviews and updates are important. During the review, critical competencies
are identified. If new essential job functions are identified, management may
need to make a determination whether the job still fits the incumbent. Tasks not
linked to current competencies can be reviewed to determine relevancy.

A successful review of a position’s essential job functions requires the active

participation of experts possessing knowledge about the job under review.
These experts may include the current job holder, the immediate supervisor,
a human resource professional, and the hiring manager.

Documentation of the job analysis processes provides evidence that the

organization has up-to-date job descriptions. Documentation also supports
the necessity of all critical competencies for job success and improves legal
defensibility in the event of a challenge to the necessity of functions defined in
the job description.

3.2.5 Influence and establish criteria for hiring, retaining, and promoting
based on job descriptions and required competencies

Criteria for hiring, retaining, and promoting employees provides a legally defensible
and equitable internal and external talent selection and management process
that is based on merit and competencies of each job applicant. Human resource
management influences and establishes these criteria by conducting job analyses,
defining essential job functions, and outlining job competencies. The purpose of
developing and maintaining job criteria is to increase the accuracy of job fit and
talent selection for both internal and external job candidates.

The job descriptions developed through job analysis should include the job
requirements, essential job functions, job qualifications, and job competencies
necessary for the organization to achieve its goals and for the employee to

52 A GUIDE TO THE HR BODY OF KNOWLEDGE TM

be successful in the position. Developing accurate job criteria leads to more
consistent and effective talent selection decisions, ultimately translating into
higher employee performance, productivity, and engagement.

Job criteria for external talent acquisition may include:

77 creating a sourcing plan to attract the most qualified applicants;

77 helping potential applicants determine whether they should apply for the job;
77 increasing the likelihood that only qualified applicants will apply for the
position; and
77 screening résumés and applications to determine those who are qualified to
interview for the position.
Job criteria for internal talent management may include:

77 identifying successor candidates who are already qualified for and interested
in the position;
77 identifying development actions to address qualification and competency gaps
for future successor applicants;
77 helping employees determine potential career paths in the organization;
77 reviewing the competencies employees may need for future roles;
77 identifying individual performance goals for current employees; and
77 posting jobs for employees to consider as a new career path.

3.2.6 Analyze labor market for trends that impact the ability to meet
workforce requirements

Labor market trends are analyzed to gain a comprehensive understanding of

external workforce capabilities over time in a particular geographic area, industry,
or occupation. An organization should compare labor market data with its
strategic plan and make necessary adjustments as needed to attract
and retain talent. Sources for labor market data may include:

HR CERTIFICATION INSTITUTE 53
77 Bureau of Labor Statistics (BLS);
77 state- or city-specific labor statistics;
77 information published by local colleges and technical schools;
77 academic literature;
77 public and private industry market surveys; and
77 Census Bureau information.
The labor market should be analyzed by reviewing the organization’s current
workforce and comparing current and future needs against market data in order
to plan strategies to meet organizational goals and objectives. Once the analysis
is completed, decisions regarding compensation, training and development,
recruiting, and even the location for future worksites can be made. Labor market
trend analysis is used to understand future talent deficits and overages as well as
how to address such fluctuations.

3.2.7 Assess skill sets of internal workforce and external labor market
to determine the availability of qualified candidates, utilizing third party
vendors or agencies as appropriate

Internal workforce skill sets and the external labor market are used to predict
future workforce needs, to identify gaps in human capital and to develop an
action plan to eliminate gaps. Organizational competiveness and sustainability
are directly related to the process of assessing future workforce needs and
identifying skill gaps in the current workforce. Human resource management
increases the availability of employees with the required skills needed in the
future by identifying and developing internal and external labor pools with the
required future skill sets.

Human resource management should evaluate both external and internal factors
when assessing the skill sets of the workforce. External factors may include
the impact of changes in demographics, technology, economic forecasts,
legal requirements, and workforce trends. Internal factors may include the

54 A GUIDE TO THE HR BODY OF KNOWLEDGE TM

organizational impact of recruitment and retention strategies, planned changes
in the organization’s structure or business lines, skills inventories for succession
planning, and requirements of labor contracts.

The workforce analysis reveals potential challenges when accessing the

competencies and skills necessary for long-term sustainability. The talent needed
may not be available locally and may require the use of third party sources or
independent contractors to fill the organization’s short- and long-term needs.
When qualifying or acquiring specialized talent through third party sources,
organizations must verify that both the skill sets and culture of these resources
are a good fit. The decision to use a third party source requires a
cost/benefit analysis.

3.2.8 Identify internal and external recruitment sources and implement

selected recruitment methods

The identification of internal and external recruitment sources is critical to the

consistent delivery of the highest quality pool of candidates. An organization may
actively develop internal candidates for job roles to reduce its dependency on
the external market. Identifying top external candidates may be necessary where
there is low availability of qualified internal candidates. Sourcing candidates both
internally and externally provides the largest pool of available candidates for
each job function.

Each organization should define its recruiting strategy based on its goals and
objectives, while being aware of the possibility of disparate impact depending
on the diversity of candidates obtained through the source. A balanced strategy
draws from both internal and external talent sources to identify a strong pool of
qualified and motivated candidates for each position. Informational inputs
may include:

77 feedback from the hiring manager or other position incumbents;

77 skills and capabilities inventories;

HR CERTIFICATION INSTITUTE 55
77 employee development plans;
77 past performance of sources such as yield ratios, which identify the source of
prior hires, performance ratings, cost of hire, and time to fill;
77 work performance of hires from particular sources; and
77 market analysis to understand and identify the characteristics and traits of the
targeted population and how to reach them.
Recruiting sources can be grouped by whether they draw from the organization’s
internal talent or from external sources. Examples of recruiting sources may
include:

INTERNAL
77 Succession plans
77 Skills inventories
77 Internal postings
77 Previous applicant pools

EXTERNAL
77 Talent search firms
77 Advertising (online, print, TV, radio)
77 Social media
77 Job fairs
77 Industry events / conferences
77 Employee referrals
77 Previous employees

56 A GUIDE TO THE HR BODY OF KNOWLEDGE TM

3.2.9 Establish metrics for workforce planning

An organization’s metrics for workforce planning will benchmark against other

organizations, manage and control staffing activities, and predict effectiveness
both internally and externally. Metrics may be used to understand and explain
performance historically, correlate different variables, and ultimately predict
future performance based on current and historical data. Additionally, metrics
guide human capital decision making and measure the effectiveness of human
capital initiatives.

Workforce metrics may include:

77 turnover, which is the rate at which employees leave the organization;

77 time to fill, which describes how long it takes to fill open positions;
77 cost of hire, which measures how much it costs to hire a position; and
77 market compensation ratio, which compares how an organization’s salaries
compare to the market.
Metrics can be presented and delivered in a variety of forms. The target
audience affects how data is presented. Scorecards and dashboards are often
used to present data visually to allow quick identification of positive or
negative trends.

Metrics are used by the organization to verify that initiatives are aligned with the
overall strategy. Results from metrics analysis aid in resource allocation decisions.

3.2.10 Brand and market the organization to potential qualified applicants

Organizations brand and market themselves to attract potential employees and

retain current employees. Branding and marketing increases visibility and creates
a reputation that an organization is a desirable place to work. The goals of a
successful branding campaign are to drive recruitment by marketing to a specific
target population, define the characteristics and behaviors of the organization’s
current employees, and outline the characteristics of the organization’s culture as

HR CERTIFICATION INSTITUTE 57
a whole. Through a successful branding campaign, an organization increases the
likelihood of attracting and retaining top talent. The branding campaign should
be aligned with the organization’s external branding image, look, and feel.

It is important that an organization define its employer value proposition, which

is a unique set of offerings, associations, and values, to positively influence target
candidates and employees. The employer value proposition provides current
employees and candidates a reason to work for a particular employer and should
represent the organization’s unique cultural attributes. Employers that effectively
manage their employer value proposition may see an increase in their candidate
pool as well as in employee engagement.

By analyzing factors that influence the organization’s brand and by defining its
employer value proposition, the employer will be able to deliver a consistent
message when marketing the brand, both internally and externally. Externally, the
organization may analyze the market to determine:

77 Who are the potential employees the organization wishes to attract?

77 What is unique about the organization that would attract potential employees?
77 How can the organization be branded and marketed to potential employees?
77 What is the organization known for?
77 Who is the organization’s competition for talent?
Internally, questions for the organization to consider may include:

77 What are the strengths of the organization?

77 How are the vision, mission, values, and culture of the organization currently
communicated and marketed to employees?
77 What is meaningful to employees?
77 What attracted employees to the organization and what are keys to retention?
77 What is the organization’s strategic direction?

58 A GUIDE TO THE HR BODY OF KNOWLEDGE TM

An organization should continually analyze its branding strategy and campaigns
to determine whether it is achieving the desired results. Organizations may
measure effectiveness by analyzing hires per source (yield ratios); analyzing
turnover and retention rates, especially for employees identified as high
potential; and examining exit interview data and employee engagement surveys.
Organizations may also design and conduct focus groups with current employees
to determine if the organization has met employees’ needs. Goals should be
assessed periodically to determine whether adjustments in branding activities are
needed to address changes in organizational strategy.

3.2.11 Develop and implement

selection procedures

The ultimate goal of developing and implementing selection procedures should

be to create a fair and unbiased hiring process, increase the number of successful
hires, and reduce turnover-related expenses. An effective selection process is
based on a clear understanding of cultural fit, skill set requirements, job market
supply and demand trends, and type and number of vacant positions. Effective
selection procedures increase the probability that individuals selected for
positions are successful.

The selection process may include:

77 conducting an initial meeting between a recruiter and a hiring manager to

clarify the ideal candidate profile such as competencies and cultural fit, how
the position fits within the organizational design, salary range, and target
market to identify the best fit candidates;
77 sourcing applicants using suitable methods such as advertising, social media,
staffing agencies, schools, print media, broadcast media, or job boards;
77 gathering initial information from candidates such as applications or résumés
to perform initial screening and make decisions about the best
qualified candidates;

HR CERTIFICATION INSTITUTE 59
77 conducting employment assessments to determine whether candidates have
the required skills;
77 identifying best qualified candidates for an interview;
77 interviewing candidates using a structured and consistent interview
process; and
77 having hiring managers and other interview participants make final
hiring decisions.
Interviews may be conducted by an individual or by a panel. The type and number
of positions to be filled and the size of the organization are factors to consider
when determining the type of interview to conduct. Interviews should be structured
so that the same questions are asked of every candidate in the same format for an
unbiased comparison of candidates. Structured interviews have higher validity and
reliability than unstructured interviews. Interviewers should be trained in proper
interviewing techniques, prohibited questions, and interview bias.

When using employment assessments, consideration must be given to the

validity and reliability of the assessments. Organizations should also be aware
of the potential for disparate impact or treatment when using the results from
selection instruments. The EEOC’s Uniform Guidelines on Employee Selection
Procedures and Society for Industrial and Organizational Psychology’s (SIOP)
Principles for the Validation and Use of Personnel Selection Procedures provide
guidance on employment assessment development.

Other commonly used selection procedures, aside from employment interviews,

include work sample tests, job knowledge tests, and assessment centers.
These selection tools can be very effective when assessing the necessary
knowledge, skills, abilities, and other characteristics (KSAOs) required for the
position. Additional selection methods include reference checks and résumés.
While certain hiring managers might be inclined to make decisions based on
reference checks and résumés, these have the lowest validities when predicting
performance and other work-related criteria.

60 A GUIDE TO THE HR BODY OF KNOWLEDGE TM

The choice of selection procedure should be determined based on the results
of a job analysis or competency job model, which is an effective way to verify
competencies are being measured. Regardless of the selection method chosen,
hiring managers should confirm that all selection procedures are
legally defensible.

3.2.12 Develop and extend employment offers and conduct negotiations

as necessary

Developing and extending employment offers is a critical component of the

employee recruitment process. An employment offer must contain information
that is required by law and necessary for the employer. The manner in which an
offer is extended could be one of the deciding factors of a candidate accepting
a position. An offer may be contingent on signing other documents such as a
restrictive covenant.

In some cases, candidates will respond to an offer with a counter offer, which
may require the organization to negotiate with the candidate. Negotiations
without proper planning can result in an organization overpaying for its talent.
Underpaying talent may have the consequence of losing the candidate to a
competitor. After successful negotiations, a written employment offer stating
the conditions of employment including job title, compensation information, and
any special agreed to arrangements creates a positive start to the employer-
employee relationship. One of the most important advantages of an offer letter
is that it offers legal protection by stating at-will employment and may be used to
resolve disputes arising from employment terms.

Before preparing to extend the job offer and participate in salary negotiations,
it is important to understand the organization’s pay practices and policy. Other
factors to consider include the candidate’s:

77 values and preferences;

77 reason for applying for the position;

HR CERTIFICATION INSTITUTE 61
77 current base pay, bonus potential, and benefits;
77 opportunities for career development and advancement;
77 willingness to commute or relocate; and
77 availability to begin work.
Salary offers below the candidate’s expectation may cause confusion and
disappointment. Through proper job evaluation and valuation, aligned
compensation and recruitment strategy, and clear communication, organizations
increase the chance of obtaining accepted offers. Part of the organization’s
planning involves understanding a candidate’s market value and competencies
for that particular job.

3.2.13 Administer post-offer employment activities

Post-offer employment activities are designed to create a consistent and legal

process for completing due diligence requirements, core human resource
functions, and other administrative tasks such as completing I-9 verifications,
obtaining visas, or conducting drug screens. Local, state, or federal employment
laws and regulations govern post-offer employment activities.

An employment offer may be extended to the final candidate contingent upon

a successful screening. The level of screening is dependent upon the type of
position, industry, or organization and may include a background check, drug
screening, and employment eligibility. Certain screening activities may be
conducted as part of the selection process or the post-offer activities.

Background checks are performed to minimize the risk of negligent hiring,

workplace violence, and theft. High-risk organizations are industries that hire
security or trust positions such as public service, security, government, financial
institutions, transportation, or medical occupations.

Background checks may include criminal history, verification of employment,

education, professional license or certifications, and references. Depending
on the position, other information to be verified may include credit history,

62 A GUIDE TO THE HR BODY OF KNOWLEDGE TM

sex offender status, or terrorist list inclusion. Background checks require
employee consent and must be done in compliance with the Equal Employment
Opportunity Commission (EEOC), the Fair Credit Reporting Act (FCRA), and state
and local laws and regulations to confirm the screening is job-related and not
used for any discriminatory purpose. Withdrawal of an employment offer based
on results from a background check must be directly related to the functions of
the particular job.

Safety regulations within certain industries require drug screening as a condition

of employment. According to some state laws, an organization may reduce
its workers’ compensation costs by opting to become a Certified Drug Free
Workplace. Drug free workplace policies require that all new hires pass a drug
screen. Employees may also be subject to drug and alcohol testing after an
accident, upon reasonable suspicion, for any job related circumstance, or
randomly, if permitted.

United States Citizenship and Immigration Services (USCIS), a component of the

Department of Homeland Security, requires all employers to verify employment
eligibility and to complete an I-9 form for every employee hired. By law, the
employer has three working days from the date of hire to obtain proof of the
employee’s identity and eligibility to work in the United States.

Under U.S. immigration law, a limited number of immigrant work visas are made
available to qualified candidates every year. In specific circumstances, spouses
and children may be permitted to accompany the employee. Organizations
should define a policy to specify whether the organization or candidate/employee
pays the associated visa processing fees.

Under the Americans with Disabilities Act (ADA) and the ADA Amendments
Act (ADAAA), organizations are prohibited from asking or making any disability
related inquiries prior to the employment offer. This prohibition applies even
if the disability is job related. Disability-related inquiries, including medical
examinations, are permitted after an offer has been extended. At this stage,

HR CERTIFICATION INSTITUTE 63
inquiries or medical examinations do not have to be job related as long as
all similarly situated employees are treated the same. Medical inquiries or
examinations conducted after the employee has actually begun working
are required to be related to the essential functions of the job. Any medical
information obtained must be kept confidential and separate from an employee’s
personnel file. Employers are also restricted in what information may be shared
with the employee’s supervisors.

For candidates in key positions, some organizations may consider entering into an
employment agreement that clearly defines the rights and responsibilities of both
parties and minimizes the risk of misunderstandings and disputes. Negotiations
can be complex, especially at the executive level. Organizations should consider
seeking the advice of legal counsel.

Employment agreements may address provisions including:

77 Position title and reporting structure 77 Wages and benefits

77 Non-disclosure agreement (NDA) 77 Non-compete requirements
77 Non-solicitation 77 Mediation or arbitration agreement
77 Social media ownership 77 Intellectual property
77 Bonus eligibility 77 Equity or profit sharing
77 Educational assistance 77 Relocation assistance
77 Signing or relocation bonus 77 Other terms of employment

Organizations may elect to facilitate and pay for an employee’s relocation, or to

use the services of a vendor, when employees are moving into a new geographic
region for their position. When an organization pays for the employee’s
relocation, a repayment provision may be included in the agreement in
the event that the employee leaves for any reason within a certain pre-
established timeframe.

64 A GUIDE TO THE HR BODY OF KNOWLEDGE TM

3.2.14 Develop, implement, and evaluate orientation and on-boarding
processes for new hires, rehires, and transfers

The development, implementation, and evaluation of orientation and on-

boarding processes assists with the successful integration of newly hired,
transferred, or re-hired employees into the culture of an organization. On-
boarding serves a critical role in that it sets the stage for an employee’s
successful tenure. Effective on-boarding processes enhance each employee’s
understanding of the vision, mission, values, culture, and how their job relates to
the strategic direction of the organization.

The on-boarding process begins during the recruitment and interview phase.
During that time, leading candidates become familiar with the mission and
vision of the organization, as well as the knowledge, skills, abilities, and other
characteristics (KSAOs) necessary for success in the position. It is important to
provide clarity regarding the expectations of the individual that will eventually be
selected for the position. This can be achieved through a realistic job preview,
which allows candidates to gain a greater understanding of what the job entails.
An effective realistic job preview provides potential candidates with clear and
objective information regarding both the positive and negative aspects
of the job.

On-boarding programs vary greatly depending on the organization. All levels of

employees, management, and leadership should have a role in orienting the new
hire. Individual on-boarding programs should be designed to meet the needs for
each specific category of employees such as non-exempt, exempt, management,
or executive. Welcoming new hires into the organization may involve a
combination of formal and informal exchanges including training workshops,
face-to-face discussions, self-service online activities, videos, or written materials.
Human resource management may implement pre-established review meetings
to verify that new hires are acclimating to the organization.

HR CERTIFICATION INSTITUTE 65
Orientation generally takes place during the first few weeks of employment and
can take up to six months depending on the position. Some organizations start
the on-boarding process before a new hire’s first day of employment. Activities
conducted prior to on-boarding may include reading company materials,
completing forms or surveys, or online training. Efforts should be made to verify
the orientation reflects the culture, norms, and values of the organization.

The areas covered by an orientation may include:

77 the organization’s history, mission, vision, and values;

77 the organizational structure and key contacts;
77 policies and expectations regarding work hours including flexible schedules,
telecommuting policies, and holidays;
77 information regarding employee benefits such as health and life insurance,
employee assistance programs, and other benefit programs;
77 information on compensation including pay schedules;
77 workplace safety policies;
77 employee conduct and behavior expectations; and
77 policies regarding equal opportunity, diversity, and inclusion.
After the orientation, periodic follow up is critical to evaluate whether employees
understand the material that was covered in the orientation. In addition, a
point of contact within human resource management and the new employee’s
immediate supervisor should be available and prepared to address questions
and concerns.

Feedback may be collected to determine whether the on-boarding process was

effective in preparing employees for their positions in the organization; this may
be accomplished by surveying employees or asking questions during the exit
interview process. Metrics should be developed and reviewed to evaluate the on-
boarding process. Adjustments can be made to address issues in the process.

66 A GUIDE TO THE HR BODY OF KNOWLEDGE TM

3.2.15 Develop, implement, and evaluate employee retention strategies
and practices

The development, implementation, and evaluation of employee retention

strategies promote a high level of engagement for employees. Retention
strategies should start as early as the recruiting process and continue throughout
the employment cycle. Leadership plays a critical role in employee retention.

Contributing factors influencing employee retention and engagement

may include:

77 the quality of the relationship between the employee and supervisor;

77 an effective total rewards program;
77 opportunities to show competence and earn recognition;
77 autonomy of employees to perform their work;
77 opportunities for employees to expand their knowledge;
77 a culture of diversity and inclusion;
77 career progression opportunities; and
77 work-life balance.
Metrics to evaluate retention may include turnover or retention rates. A
high turnover rate may be a symptom of deeper issues related to retention.
Information from sources such as exit interviews and employee engagement
surveys should be examined to determine the causes of turnover.

3.2.16 Develop, implement, and evaluate the succession planning process

Succession planning is a means for an organization to maintain effective

performance through leadership continuity. It identifies and develops internal
talent to fill leadership positions and other critical roles. Succession planning
establishes the progressive mobility of talented employees, leading to reduced
vacancy risks, increased retention, and ultimately the succession of leadership by
internal employees.

HR CERTIFICATION INSTITUTE 67
Many organizations develop succession plans only for executive and top
leadership positions. Successor candidates may be identified for the executive
level, specific leadership levels, critical positions, or key technical expertise
in the organization.

The succession planning process may include:

77 determining critical roles to reduce vacancy risk in identified positions;

77 identifying key skills and talent needs required for future success;
77 facilitating talent review meetings to discuss potential talent vacancy risks,
potential successor candidates, and developmental interventions to prepare
successor candidates for new roles;
77 identifying talent pools of internal candidates for positions with the same
competencies in the organization;
77 discussing career aspirations and goals with employees;
77 creating development plans for successor candidates designed to develop
competency or reduce qualification gaps to increase successor readiness;
77 identifying successors who are ready and qualified for a position when it
becomes vacant as well as successor candidates who are not currently qualified
but who could be developed to be ready for the position in the future; and
77 tracking succession metrics such as the performance of internal candidates,
reduction of external recruiting costs, and attrition of top talent.

3.2.17 Develop and implement the organizational exit/off-boarding process

for both voluntary and involuntary terminations, including planning for
reductions in force (RIF)

Developing and implementing organizational exit/off-boarding programs

provides a consistent process that offers the opportunity for a positive and proper
close to the employee-employer relationship. Results can be used to rectify
potential problems that contributed to voluntary turnover. The data obtained
from the exit interview may lead to improvements in recruiting, on-boarding,

68 A GUIDE TO THE HR BODY OF KNOWLEDGE TM

and talent management. Understanding why an employee leaves is important to
organizational effectiveness.

Some voluntary terminations, such as retirement or when a spouse is transferred,

are beyond an employer’s control. However, resignations that employers
influence may result from:

77 inadequate or ineffective selection processes;

77 inadequate or ineffective leadership or supervision;
77 lack of career growth opportunities or skill development;
77 lack of work-life balance; and
77 non-competitive compensation or benefits.
In the case of voluntary terminations, employers may conduct exit interviews
with departing employees or ask them to complete confidential surveys to gain
valuable information about the departing employee’s reason for leaving and
perspective about the organization. Based on the information provided, an
organization may evaluate its employment practices and make adjustments,
especially to address issues that may have a direct impact on organizational
effectiveness such as excessive turnover or consistent loss of talent with critical
skill sets. This may include performing internal analyses to determine whether
hiring criteria effectively address needed skills, or external analyses to determine
how the organization’s compensation and organizational culture compares
to its competitors. A process that supports task and responsibility transition
may also be developed to transfer work, projects, or knowledge. In addition, a
checklist may be provided to verify employees return any equipment or other
organizational assets prior to leaving.

Involuntary terminations may occur due to:

77 performance issues;
77 violation of rules or policies; and
77 organizational restructuring.

HR CERTIFICATION INSTITUTE 69
The reason for involuntary termination will dictate the off-boarding procedures
and processes for compliance with organizational policy and local, state, and
federal laws and regulations. Prior to terminating an employee for performance or
violation of rules or policies, organizations should confirm whether managers have
implemented and documented effective performance management.

In the event of organizational restructuring that leads to a reduction in force (RIF),

the organization should carefully plan and consider involving legal counsel early
in the process. This can help to minimize organizational liability and protect the
employer’s reputation.

Planning for a RIF may include:

77 articulating the business reason and developing a communication plan that

includes affected employees, stakeholders, and media;
77 training managers to support the pending RIF;
77 identifying applicable state or local laws or federal laws, such as the Worker
Adjustment and Retraining Notification Act (WARN);
77 determining which positions can and cannot be eliminated;
77 identifying the employees in the positions to be eliminated;
77 performing a demographic analysis of the affected population to determine
any disparate impact on protected groups;
77 preparing severance agreements or releases that outline key terms such
as final compensation, benefits continuation and termination, and
outplacement services;
77 planning the implementation phase, which considers how the communication
to impacted employees will take place, evaluating the need for security
of person and property, the handling of key documentation, retrieving
equipment, and terminating electronic and building access;
77 determining the content of internal communications to remaining employees
and deciding whether public statements should be made; and

70 A GUIDE TO THE HR BODY OF KNOWLEDGE TM

77 administering post-RIF activities to establish business continuity and verify
legal compliance.
As with voluntary terminations, a system for involuntary terminations (such
as a checklist completed by human resource management) may be used to
verify the return of organizational property and to protect the organization’s
assets, minimize risks, and establish continuity of operations. In cases involving
terminations due to performance or conduct, the organization may continue to
monitor and analyze data to identify trends. The analysis may indicate needs
such as additional supervisory training on effective performance management
to gauge whether employees are aware of and understand the rules and
expectations of the organization.

3.2.18 Develop, implement, and evaluate an affirmative action plan (AAP)

as required

An affirmative action plan (AAP) helps organizations track and monitor progress
towards equal employment opportunity goals while increasing diversity within
the organization. A federal contractor or subcontractor is mandated to have a
written affirmative action plan by the Office of Federal Contract Compliance
Programs (OFCCP) if it:

77 has a federal contract or subcontract of $50,000 or more;

77 has government bills of lading which in any 12-month period total, or can
reasonably be expected to total, $50,000 or more;
77 serves as a depository of federal funds in any amount; or
77 is a financial institution that is an issuing and paying agent for U.S. savings
bonds and savings notes in any amount.
Situations where private employers follow an AAP may include:

77 state contractor and sub-contractor requirements;

77 remediation for prior compliance issues; and
77 the desire to increase workforce diversity.

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An organization should first evaluate its workforce, processes, and policies to
identify gaps or areas of improvement related to diversity. An environmental scan
may also be conducted to understand and determine the demographics and
occupational information of the job market. Based on the results and findings,
leadership should prioritize and set goals and objectives to be accomplished for
the next plan cycle to verify minority applicants are fairly represented and that all
employees are treated equally regardless of their ethnic origin, race, or gender.

An AAP should be communicated to organizational supervisors for awareness

and implementation. The implementation of the plan requires adjustments to
the talent acquisition processes, policies, and procedures in order to make sure
that the goals and objectives are accomplished.

Evaluation should be conducted in order to measure the results of the program.

After assessing the effectiveness of the strategies and activities, corrective action
can be taken if needed and the assessment results may be used as input for the
following year’s plan. Recruiting, selection, promotions, transfers, terminations,
and work environment are some of the activities that could be impacted by
an AAP.

3.2.19 Develop and implement a record retention process for handling

documents and employee files

Organizations are required to track and retain various records related to

employees and applicants. A record retention process verifies that necessary
organizational documents and employee records are adequately protected and
maintained. Additionally, a record retention process establishes that records no
longer required are destroyed at the appropriate time. Proper precautions and
limited access protocols apply to both paper and electronic records.

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Information or types of files that require protection may include:

77 Pre-employment 77 Legal
77 Benefits 77 Payroll
77 Training 77 Medical
77 I-9s 77 Education

Files containing sensitive information such as Social Security numbers, medical,

disciplinary, or legal information are required by law to have additional
safeguards. There are also regulations protecting certain employee information
from hiring managers both in the pre-employment stage and post hire. A process
should be in place regarding how to proceed in the case of a data compromise,
subpoena, or litigation against the organization, or a governmental investigation
or audit.

All employee files are governed by different retention and access protocols. Refer
to local, state, and federal laws to determine the number of years thatof record
retention is required for employee data, employment actions, benefits, and
medical information. In addition, consult with legal counsel to determine record
retention requirements for the specific industry, organization, or location.

3.3 HUMAN RESOURCE DEVELOPMENT

Human resource development involves key activities related to the design,

implementation, and evaluation of initiatives to improve individual, group, and
organizational performance. The goals of human resource development
activities are to:

77 identify, grow, and retain talent and organizational knowledge;

77 select and implement programs such as performance management, diversity
initiatives, international assignment management, individual development
plans, and employee training and talent management;

HR CERTIFICATION INSTITUTE 73
77 improve employee relations and engagement through the implementation
of programs;
77 make appropriate decisions and allocate resources based on strategic goals;
77 monitor compliance of all activities and programs with local, state, and federal
laws and regulations that include, but are not limited to, fair labor standards
and practices, anti-discrimination laws, intellectual property, and health and
safety standards; and
77 provide performance evaluations to document individual performance, to
provide feedback and recognition to employees, and to implement pay for
performance strategies.
Human resource development enables an organization to evaluate performance,
identify development actions, and design and implement activities to develop
and retain employees with the skills necessary to meet organizational goals. These
activities may include:

77 conducting organizational and employee needs assessments;

77 evaluating the effectiveness of talent management, performance management,
or employee training programs and initiatives;
77 implementing talent management programs such as career paths for
employees or the placement of high potential employees;
77 providing coaching and leadership development to managers;
77 creating and implementing initiatives that identify and grow talent; and
77 developing training programs to capitalize on employee strengths.

3.3.1 Ensure that human resource development activities are compliant with
all applicable federal laws and regulations

Human resource development activities must comply with local, state, and
federal laws and regulations to prevent an organization from experiencing legal
issues that jeopardize its reputation or financial performance. Human resource

74 A GUIDE TO THE HR BODY OF KNOWLEDGE TM

development activities must comply with different types of laws and regulations,
which may include:

77 anti-discrimination laws such as the Americans with Disabilities Act (ADA) and
the ADA Amendments Act (ADAAA), the Age Discrimination in Employment
Act (ADEA), Genetic Information Nondiscrimination Act (GINA), and Title VII
of the Civil Rights Act of 1964, as amended, that require that no adverse or
disparate impact exists based on age, disability, race, ethnicity, national origin,
religion, gender, genetic characteristics, and in many local jurisdictions sexual
orientation and gender expression;
77 health and safety regulations such as Occupational Safety and Health
Act (OSHA) regulations that state that employers are required to protect
employees from illnesses and injuries and provide employees with training in
the health and safety aspects of their jobs; and
77 copyright laws where public domain, fair use doctrine, and work-for-hire issues
are addressed and material may only be used with proper permissions from the
copyright owner.
Legal compliance must be met during the assessment, design, development,
implementation, and evaluation of human resource development activities.
Special consideration should be given to:

77 written materials and media including presentations, workbooks, job aids,

exercises, case studies, videos, and websites;
77 identification of employees to be included in specific training and
development activities; and
77 assessments including content, delivery methods, and scoring.
While exempt employees may be required to participate in developmental
activities in addition to regularly scheduled work hours without additional
compensation, salaried non-exempt and hourly employees must be
compensated for time spent in training, including overtime pay (with limited

HR CERTIFICATION INSTITUTE 75
exceptions) under the Fair Labor Standards Act (FLSA) defined as “time actually
worked beyond a prescribed threshold.”

3.3.2 Conduct a needs assessment to identify and establish priorities

regarding human resource development activities

A needs assessment identifies gaps between desired behavior or results

and actual outcomes. A needs assessment is a structured approach that can
be performed at the individual and organizational level and may be used
to evaluate and analyze performance factors such as skill gaps, behavioral
development, and learning needs.

The purpose of a needs assessment is to identify and define:

77 obstacles, gaps, and root causes preventing the achievement of

desired results;
77 target audiences for employee development initiatives;
77 types of interventions that will be most effective;
77 resources and organizational support needed;
77 metrics for evaluating training programs; and
77 workforce competencies to meet current and future organizational goals.
Conducting a needs assessment consists of gathering and analyzing information.
The reliability of a needs assessment improves when information is gathered from
multiple sources and perspectives. Data gathering tools may include interviews,
focus groups, observations, documentation, and questionnaires.

3.3.3 Develop/select and implement employee training programs to

increase individual and organizational effectiveness

Training programs are used to increase individual, group, and organizational

effectiveness. After determining that training is the appropriate intervention
based upon the results of a needs assessment, a decision must be made about

76 A GUIDE TO THE HR BODY OF KNOWLEDGE TM

whether to select an off-the-shelf product, develop a customized training
program, or use a hybrid approach.

Instructional design models are used as a framework for developing new training
initiatives. Instructional System Design (ISD) models are some of the most
commonly used frameworks. They divide the instructional design process
into five phases:

77 assessment, which includes comprehensive baseline data and needs analyses;

77 design, where the framework and strategy of the training program is
determined and documented to include important elements such as learning
objectives, learning theory, level of interaction, and delivery method;
77 development, where material such as visuals, handouts, and other training
materials are created;
77 implementation, which defines where, when, and how the training takes place
according to the plan created during the design phase; and
77 evaluation, where metrics are used to determine the ongoing effectiveness of
the training initiative.
When selecting an off-the-shelf training program, considerations may include the:

77 ability of the training program to provide the content that will fulfill the
required learning objectives;
77 compatibility with the organization’s goals and culture;
77 degree in which the program can be customized to meet the
organization’s needs;
77 the delivery method’s ability to meet individual learning styles for the target
audience, such as self-paced, facilitator-led, e-learning or blended learning;
77 cost effectiveness and return on investment (ROI) of off-the-shelf versus
customized learning resources;
77 compatibility with the organization’s learning management system (LMS);
77 time commitment needed to prepare and deliver training; and

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77 metrics available for determining the effectiveness of the training program.
During implementation, care should be taken to execute the program within the
defined timeline and budget.

3.3.4 Evaluate effectiveness of employee training programs through the use

of metrics

Organizations use metrics to determine the effectiveness of training initiatives.

Selecting the appropriate metrics to measure training outcomes provides
information about the effectiveness of employee training initiatives and confirms
that human resource development initiatives yield the expected results. The
needs assessment can be a valuable tool in this process because it generally
consists of measured performance levels and gaps that can serve as baseline
measurements for the final evaluation. Interviews with key stakeholders, along
with a review of historical data, are common approaches for defining success
measures and capturing baseline metrics.

Evaluations may include participant satisfaction and learning, on-the-job

application, and organizational impact. Evaluation tools and measurements
may include:

77 pre- and post-testing;

77 participant survey results;
77 control groups;
77 on-the-job observations; and
77 other performance indicators impact such as customer satisfaction, increased
sales, or change in performance review ratings.

3.3.5 Develop, implement, and evaluate talent management programs

that include assessing talent, developing career paths, and managing the
placement of high-potential employees

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Talent management is a comprehensive and collaborative strategy that may
include organizational assessment, workforce analysis, talent review meetings,
and development planning. It is designed to assess, develop, and retain internal
high performing and high potential employees to achieve current organizational
goals and to prepare for the future talent needs of the organization.

Talent management refers to proactively discussing, planning, and acting on

internal talent growth and development decisions to achieve ongoing business
success, to retain top talent in the organization, and to reduce the business risks
associated with talent loss. An effective internal talent management strategy
also works to reduce dependence on the external talent market and to reduce
external talent acquisition costs.

Talent management involves the identification and development of successor

candidates and high potential employees to prepare for future leadership
roles. Some organizations also focus on the retention and recognition of key
professionals and on the creation of technical tracks for talented individual
contributors. For talent management efforts to be effective, they should align
with both the organization’s strategy and with the employee’s career goals
and interests.

Talent management and career development resources may include:

77 Skills training 77 Leadership development programs

77 Career centers 77 Knowledge management programs
77 Professional development courses or 77 Mentoring programs
degree programs 77 Stretch assignments and special
77 On-the-job training projects
77 Coaching initiatives 77 Job rotation

The means of identifying high potential employees should be specified through

assessment, selection criteria, recommendations, and the employee’s career

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aspirations. It is important to establish legally defensible, consistent, and equitable
processes and criteria for internal talent management strategies.

Evaluation of talent management programs should be based on the unique

business and talent needs of the organization. The outcome of talent
management programs may include:increasing retention rates for top talent such
as high potential and key professionals;

77 increasing employee engagement by providing potential career path options;

77 decreasing time-to-fill for open
leadership positions;
77 reducing costs associated with external job marketing, interview time, on-
boarding new employees, hiring bonuses, and job search firm fees;
77 reducing vacant leadership positions; and
77 increasing performance and productivity of high performers and
high potentials.

3.3.6 Develop, select, and evaluate performance appraisal processes

Performance appraisals provide a systematic approach to rate and evaluate

employee performance. An employee’s performance is evaluated based on goals
achieved and the behaviors the employee demonstrated. Performance appraisal
methods may include:

77 Manager-employee review meetings 77 Ranking of people or competencies

77 Paired comparison 77 Forced distribution of ratings
77 Critical incident 77 Competency-based evaluation
77 Management by objectives (MBO) 77 360-degree or multi-rater
77 Graphic rating scales feedback assessments

77 Behaviorally anchored rating scales 77 Behavioral observation scale (BOS)

(BARS)

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Performance appraisal methods and tools should be selected based on the
organization’s goals and objectives.

When evaluating the effectiveness of a performance appraisal method, managers

should consider individual, team, and organizational goals for the length of the
appraisal cycle. The users’ perceptions regarding the usefulness of the method
also should be considered. In addition, managers should be careful to avoid
rating errors. Rating errors may include:

77 strictness or leniency, where raters tend to rate all employees consistently

low or high;
77 central tendency, where all employees are rated around the average;
77 halo or horn effect, when a single positive or negative incident or characteristic
influences overall rating performance; and
77 recency of events, where supervisors are likely to consider recent performance
more strongly than performance behaviors that occurred over an entire
evaluation period.
The timing and frequency of the performance appraisal process and the
relationship to merit increases also should be considered when designing
the program.

3.3.7 Develop, implement, and evaluate performance management

programs and procedures (includes training for evaluators)

A performance management program is designed to improve individual, team,

and organizational performance. The performance management program should
take a holistic view of the results delivered, contributions made, and behaviors
demonstrated by employees. The performance management program should
include training and preparation for managers and employees regarding the
appraisal process and tools.

When developing performance management programs, consideration needs

to be given to legal requirements and the organization’s culture, mission,
vision, core values, objectives, and stakeholders’ interests. With technology

HR CERTIFICATION INSTITUTE 81
advancements, more organizations are using Performance Management Systems,
which are software tools that provide flexibility of real-time reporting
and feedback.

Factors influencing the implementation of performance management programs

may include:

77 Employee classification 77 Length of appraisal cycle

77 Frequency of performance 77 Organizational readiness
conversations 77 Process and training for activities
77 Process for dealing with poor such as setting objectives and
performance such as timeframes and providing feedback
performance improvement plans 77 Change management strategy such as
77 Performance appraisal methods such identifying stakeholders and channels
as forced distribution or behaviorally of communication
anchored rating scale
77 Appraisal input sources which may be
the direct supervisor, a peer,
or customers

To evaluate the effectiveness of performance management programs,

organizations may choose to run pilot tests that provide feedback on the process
before resources are committed. Effectiveness may also be measured by
evaluating whether employees demonstrate performance improvement, whether
there is alignment with organizational core values, and whether goals are met.
A performance management strategy may include a collaborative goal setting
process, regular feedback checkpoints, and calibration of ratings across groups
or functions. Finally, data from surveys, focus groups, or informal interviews
examining the process may also provide insight for improvements.

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3.3.8 Develop/select, implement, and evaluate programs to meet the
changing needs of employees and the organization

Program development, implementation, and evaluation are designed to improve

individual, group, and organizational performance by identifying and closing
performance gaps to create or maintain a competitive advantage. Well-designed
programs increase employee engagement and retention and act as a motivator
for employees to perform well.

The development or selection of programs includes verifying that they are

directly aligned to organizational strategies and are designed to improve the
knowledge, skills, abilities, and other characteristics (KSAOs) of the employee
population. Key areas may include:

77 promoting work-life balance in an effort to help employees maximize

productivity by better managing professional and personal priorities;
77 implementing diversity initiatives to capitalize on the improved performance
possible when more perspectives and experiences are present in
the workforce;
77 creating wellness programs because they are beneficial for both employees
and employers by decreasing health care costs for the organization, increasing
performance, and improving employee morale;
77 managing international assignments, or repatriation; and
77 increasing global awareness.
The implementation of programs requires direct alignment with organizational
goals. Implementation plans should include setting milestones within a specific
time frame and within the approved budget.

Human resource management programs must contribute to and align with the
organization’s vision, mission, and strategic objectives. Evaluation is a necessary
and ongoing process of assessing the effectiveness of an organization’s
programs, activities, or events in order to determine the measurable impact

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and benefit to the organization. Results of the evaluation can be used to inform
decision-makers about the impact of programs to guide decisions regarding
whether to continue, change, or remove existing programs.

There are many methods and models used to evaluate programs. Programs
should be evaluated to verify alignment with:

77 strategic goals;
77 profitability, increased market share, and other specified metrics;
77 knowledge, skills, abilities, and other characteristics (KSAOs) of employees; and
77 performance expectations.

3.3.9 Provide coaching to managers and executives regarding effectively

managing organizational talent

Providing coaching to managers and executives is critical to manage organizational

talent and maximize individual performance for talent within their span of control.
Coaching should emphasize the importance of motivating, engaging, and
empowering employees to succeed.

When assessing employees, managers and executives need to consider how

employees can improve their behaviors, technical skills, and business knowledge
to increase performance and productivity. Managers also need to provide
guidance and support to employees already in leadership positions.

Effectively assessing talent may include the use of a structured performance

management system, multi-rater assessments, or cognitive ability and personality
type assessments. These assessments provide managers and executives with
valuable information to provide feedback regarding the strengths and weaknesses
of employees.

To manage organizational talent, managers need to develop strong relationships

with staff, adopt appropriate management styles to meet the demands of the job
and the traits of their employees, and be sensitive to employees’ aspirations
and needs.

84 A GUIDE TO THE HR BODY OF KNOWLEDGE TM

3.4 COMPENSATION AND BENEFITS

Compensation and benefits programs establish the priorities and framework for
the design and administration of the organization’s total
rewards strategy. Total rewards are comprised
of both financial and non-financial remunerations that employees see as
valuable and that are meant to enhance overall levels of employee satisfaction,
productivity, and engagement. Together with performance management and
employee development, compensation and benefits programs are essential in
assisting organizations with recruiting, motivating, and retaining employees.

The goals of compensation and benefits programs are to:

77 attract and retain employees;

77 reward individual or team performance;
77 compensate employees equitably;
77 improve employee performance and engagement;
77 support productivity; and
77 create workforce and market competitiveness.
Compensation and benefits programs involve the establishment of plans that
align with the organization’s mission, vision, culture, and employment branding.
Compensation and benefit programs enable the organization to hire, develop,
and retain employees with the skills necessary to meet the organization’s strategic
objectives. These activities may include:

77 designing and implementing a broad range of compensation features, such

as base and variable pay, short- and long-term incentives, recognition awards,
stock options, and other types of equity;
77 implementing benefits such as health care, retirement, work-life balance,
educational and financial assistance, and paid or unpaid time off; and
77 monitoring and evaluating compensation and benefits programs to verify that
they align with and support organizational performance.

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3.4.1 Ensure that compensation and benefits programs are compliant with
applicable federal laws and regulations

Organizations must verify that compensation and benefits programs are compliant
with all relevant local, state, and federal laws and regulations. Compensation and
benefits program compliance protects the organization from legal risk. Federal and
state laws require organizations to treat employees in a fair and equitable manner
in all terms and conditions of employment including compensation and benefits.

Most financial consequences for failing to comply with legal requirements

are levied at the organizational level and may include fines, penalties, or
legal settlement fees. Noncompliance puts the organization at risk for audits,
investigations, and inquiries from regulatory agencies that may require
significant organizational resources to resolve. Noncompliance also puts the
organization at risk for negative public relations and negative employment
branding. Individuals with fiduciary responsibility for certain types of benefit
plans may also be held personally liable for noncompliance.

When assessing compliance needs, an organization must first determine which

laws, if any, apply. When determining if and how to comply with laws governing
compensation and benefits, organizations should consider the:

77 definition of a covered employer including size and type;

77 definition of an eligible employee;
77 requirements to give employees notice of their rights; and
77 key exceptions or safe harbors.
As regulations change frequently, it is critical to review compensation and
benefits programs on a regular basis.

State or local statutes supersede or augment federal law in instances where the
state or local law provides employees with a higher level of workplace rights
or protection.

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Federal laws that apply to the design and administration of compensation and
benefits programs may include, but are not limited to:

77 Fair Labor Standards Act (FLSA)* 77 Employee Retirement Income Security

77 Family and Medical Leave Act Act (ERISA) Uniformed Services
(FMLA)* Employment and
Reemployment Rights Act (USERRA)*
77 Patient Protection and Affordable
Care Act (PPACA, ACA) 77 Consolidated Omnibus Budget
Reconciliation Act (COBRA)*
77 Older Workers Benefit Protection Act
(OWBPA) 77 Health Insurance Portability and
Accountability Act (HIPAA)
77 IRS tax code*
77 Equal Pay Act
77 Davis-Bacon Act*
77 McNamara-O’Hara Service Contract
77 Walsh-Healy Public Contracts Act*
Act*
77 Title VII of the Civil Rights Act of 1964,
77 The Age Discrimination in
as amended*
Employment Act (ADEA)*
77 Americans with Disabilities Act (ADA)
77 Pension Protection Act of 2006
and ADA Amendments Act (ADAAA)*

*An asterisk denotes regulations where state and local laws may overlap with
federal statutes.

Whenever an organization contemplates changes to benefits or compensation

programs, modifications must be reviewed carefully to verify compliance
with relevant laws. A compliance review should be incorporated into a needs
assessment or change management process, and human resource management
should consult with legal counsel regarding changes to existing compensation
and benefits programs.

HR CERTIFICATION INSTITUTE 87
3.4.2 Develop, implement, and evaluate compensation policies/programs

Compensation policies and programs are used to attract and retain talent by
using the tools available in a total rewards strategy. Compensation is the amount
of monetary and non-monetary pay provided to an employee by an employer in
return for the work performed. A well-designed compensation program rewards
behaviors that align with an organization’s business goals, strategy, and budget.

During the compensation program development phase, organizations should

consider the balance between internal equity and market competitiveness. Salary
surveys provide comparisons of an organization’s salaries. Organizations may use
a variety of internal or external data sources that include local market, industry, or
job type. Salary surveys are typically used to evaluate the organization’s position
in the market and develop a compensation philosophy, which establishes whether
the organization wants to lead, match, or lag behind the market pay rates.

Compensation programs typically rely on job evaluation methods to determine

the worth of a particular job within the organization’s pay structure. Job
evaluation methods compare existing jobs within the organization against
one another to establish an appropriate rate of pay for each job. A variety
of quantitative or qualitative evaluation methods may be used to provide an
overall score based on pre-set criteria to determine career level placement. Job
evaluation methods include point factor, factor comparison, job ranking, and
job classification.

Once all jobs have been assigned a level, salary surveys are used to create salary
ranges or bands. Salary ranges show the minimum and maximum acceptable
salary for a particular job level. Along with internal equity tables, these ranges or
bands help recruiters and hiring managers determine the appropriate salary to
offer a new hire. Internal equity tables are used to document the organization’s
average salaries by job level to determine any outliers, such as green-circled or
red-circled employees. Red-circled employees are above the salary maximum
range while green-circled employees are below the minimum.

88 A GUIDE TO THE HR BODY OF KNOWLEDGE TM

A flexible compensation program may use base pay and variable pay to reward
employees. Total rewards for an employee may include tangible and intangible
compensation. Tangible compensation may include rewards such as merit
increases, whereas intangible compensation may include rewards such as flexible
working hours.

Base pay is a fixed dollar amount given to an employee at regular intervals such
as hourly, weekly, bi-weekly, or monthly. A base pay amount is established at the
time of hire. An employer should regularly review base pay against factors such as
merit, performance, seniority, market factors, and the organization’s
financial performance.

Variable pay is generally a percentage of base pay and may include bonuses
or other incentive compensation. It can vary from year to year and even from
pay period to pay period, in the case of overtime or piece rate pay. When
based on performance, the calculation for variable pay is usually determined
by evaluating an employee’s individual performance against pre-established
goals, such as an organization or business unit’s performance, or a
combination of both.

The design and administration of a compensation program is guided by

an organization’s total rewards strategy. It is important for managers and
employees to understand the compensation program and its relationship
to organizational goals and objectives. Developing a communication plan
for managers and employees is essential to the implementation. To increase
the success of the implementation, human resource management needs to
consider training and reports for senior leadership.

Performance evaluations are usually a primary component of compensation

programs because many organizations directly link compensation to
performance. Salary increases, or lack thereof, can be correlated to the evaluation
points. This practice helps promote internal compensation equity
and consistency.

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Organizations should monitor and evaluate the return on investment of its
compensation and total rewards programs. Based upon the organizational
strategy, criteria for measurement may include qualitative and quantitative factors
such as profit/loss, productivity results, employee engagement and retention.

3.4.3 Manage payroll-related information

Organizations must manage payroll-related information effectively to support

the business strategy and comply with local, state, and federal laws. This
is accomplished by recording, tracking, updating, and securing employee
information such as Social Security numbers, hours worked, related taxes,
and deductions.

When managing payroll-related information, employers must:

77 secure data to maintain the confidentiality, integrity, and availability of

employee data;
77 provide employees with required wage statements and pay day notices;
77 perform recordkeeping for compliance such as tax reporting;
77 verify accuracy of employee pay information at time of hire, when pay is
adjusted, and at termination;
77 submit new hire reports to agencies such as child support enforcement;
77 record and track employee data for historical and trend analysis purposes; and
77 provide data for accounting and financial reporting.
Record retention requirements vary based on the type of information. Access
to data should be limited to those that need specific data. It should be secured
against intrusion and protected against identity theft or other malicious use or
access. Payroll-related information may be kept in an online or electronic payroll
system or recorded in a manual system such as a spreadsheet.

Payroll-related information may include:

77 employee name, address, Social Security Number, date of birth, date of hire;

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77 employee tax information such as federal and state tax withholdings;
77 employer tax information such as Social Security, Medicare, Federal
Unemployment Tax Act (FUTA), and tax ID;
77 earnings, including employee rates of hourly or salaried pay, overtime pay,
incentive pay, bonus, piece rate, and time off earnings;
77 deductions, including employee tax withholdings, employee contributions to
benefits premiums, retirement plan contributions, or garnishments;
77 time off tracking and payment of time off, including vacation, sick time, paid
time off (PTO), holiday, bereavement, jury duty, military leave, and other paid
and unpaid time off;
77 dates of hire, promotion, demotion, transfer, termination and re-hire,
and leaves of absence; and
77 timing of payroll cycles, including regular work day, work week, payroll start
and end dates, scheduled pay dates, and occasional or off-cycle pay dates.
3.4.4 Manage outsourced compensation and benefits components

Organizations may outsource certain compensation and benefit programs

to reduce costs and to optimize efficiency and customer service. Commonly
outsourced functions for compensation and benefits may include:

77 payroll systems and services;

77 Consolidated Omnibus Budget Reconciliation Act of 1985
(COBRA) administration;
77 benefit program administration including health and retirement programs;
77 employee recognition;
77 leave management and administration; and
77 flexible spending account (FSA) administration.
Outsourced payroll systems may be integrated with an organization’s accounting
or human resource information system (HRIS), and may allow employees to
access and update their personal information through a self-service portal.

HR CERTIFICATION INSTITUTE 91
Outsourcing COBRA and FSA administration may help to verify compliance
with detailed and time sensitive legal and reporting requirements. The use of
benefits brokers or consultants may allow for cost effective benefit plan selection,
employee education, and customer service for benefits administration. Employee
recognition vendors can provide tools for managing both the recognition
program and awards.

The decision to outsource compensation and benefits to vendors may result

from a cost/benefit analysis. Organizations may choose to retain some activities
in-house and outsource others. Budget, staff, and business needs factor into
decisions regarding outsourcing of compensation and benefits programs.

Even though services are outsourced, organizations still have an obligation to

monitor the vendor controls that are in place, as the organization is still liable in
the event of noncompliance. As an example, the Sarbanes-Oxley Act of 2002
(SOX) requires publicly traded companies to perform a Service Organization
Control (SOC) audit annually. SOC audits can be related to internal control
over financial reporting and operational controls related to security, availability,
processing integrity, confidentiality, or privacy.

3.4.5 Conduct compensation and benefits programs needs assessments

Organizations perform needs assessments for compensation and benefits

programs to identify whether there are gaps between current programs and
the perceived future needs. An organization may conduct a needs assessment
to correct a perceived deficiency, improve existing programs, or add program
offerings. A needs assessment may be conducted to increase recruitment and
retention, minimize turnover, or address budgetary concerns.

A needs assessment should occur prior to making changes in an organization’s

compensation or benefits strategy. This allows the organization to consider the
importance of factors such as:

77 increased competition for talent;

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77 changes in business strategy or market conditions;
77 turnover;
77 alignment with the organization’s mission and vision;
77 compliance requirements such as the Patient Protection and Affordable Care
Act (PPACA); and
77 budgetary impact.
Inputs for compensation plan and benefit programs needs assessments
may include:

77 benchmarking surveys;
77 salary or wage surveys;
77 employee surveys;
77 exit interviews;
77 comparative data from benefits brokers or consultants
77 industry specific surveys, recruiter feedback or networking groups, and
77 trend analyses.
The results of a needs assessment may influence business and operational
strategies as well as investment choices. Needs assessments may focus on
improving one or more staffing or retention metrics such as low employment
offer acceptance rates, high turnover, or total compensation costs.

3.4.6 Develop/select, implement/administer, update and evaluate

benefit programs

Benefit programs help organizations attract, retain, and engage employees

through differentiated and competitive benefits offerings. Benefit programs are
also meant to help support employee health and productivity.

Benefits can be categorized in two ways: mandatory and discretionary.

Mandatory benefits include Social Security and Medicare, which are funded via
required payroll deductions. Under the Patient Protection and Affordable Care

HR CERTIFICATION INSTITUTE 93
Act (PPACA), organizations of a certain size are required to offer health insurance
coverage or pay a penalty. Most other benefits are offered at the discretion of the
organization. Employers may choose to pay for all, some, or none of the cost of
these benefits.

Organizations should consider the following when developing, selecting, and

administering its benefit programs:

77 regulatory compliance requirements;

77 administrative burden;
77 cost sharing strategies between employer and employee;
77 plan funding mechanism such as fully funded, level funded, or self-insured;
77 vendor, network, or plan features;
77 coverage or availability of coverage for spouses, domestic partners,
and dependents;
77 affordability;
77 availability and adequacy of benefit options and coverage;
77 participation goals versus utilization rates;
77 competitor benchmarking and industry standards; and
77 integration with business objectives such as short or long-term employee
retention, talent acquisition, and health and productivity management.

94 A GUIDE TO THE HR BODY OF KNOWLEDGE TM

Discretionary benefits may include:

77 Health Care Insurance (Under 77 Paid Time Off* (PTO)

PPACA, many large organizations 77 Dental Insurance
are, or soon will be, required to
77 Life Insurance
offer health insurance coverage)
77 Short Term Disability Insurance
77 Vision Insurance
77 Long Term Care Insurance
77 Accidental Death and
77 Pre-paid legal plans
Dismemberment Insurance
77 Retirement Plans (401(k), 403(b), Roth
77 Long Term Disability Insurance
options, IRA, profit sharing plans)
77 Pet Insurance
77 Supplemental Life or Retiree
77 Wellness Plans
Health Insurance
77 Equity Plans (Employee Stock
77 Educational Assistance
Ownership Plan [ESOP], Restricted
77 Health Savings Account (HSA),
Stock Unit, Phantom Stock Plan,
Health Reimbursement Account
Stock Purchase Plan)
(HRA), Flexible Spending
77 Employee Assistance Programs
Account (FSA)

*While paid time off is not federally regulated, many states and municipalities
have passed laws to regulate forfeitures of unused vacation benefits or to require
employers to award limited time off for the purpose of sickness or caregiving
responsibilities.

In addition to the discretionary benefits provided, there are many intangible

benefits that organizations may offer to support business objectives. For
example, flexible work arrangements or casual dress policies may be considered
a benefit, depending on the employee population.

Paid time off (PTO) is a common benefit offered by employers and is generally
highly valued by employees. Organizations must decide how much PTO to
offer, whether it should increase with seniority, and whether they will allow

HR CERTIFICATION INSTITUTE 95
accrued time to be carried over from one year to another, in accordance with
applicable laws and regulations.

Employers should regularly evaluate the benefits they provide to confirm

plans meet employee needs, are affordable, and are compliant with changing
regulations. Methods of evaluation may include employee surveys, focus groups,
and internal compliance audits.

Organizations also should confirm that benefit plans are compatible with its
overall total rewards strategy.

3.4.7 Communicate and train the workforce in the compensation and

benefits programs, policies and processes

Compensation and benefits programs must be understood by and effectively

communicated to employees at all levels of the organization to be effective
employee recruitment, engagement, and retention tools. Communication and
training regarding compensation and benefit plan design are critical as they
allow an organization to:

77 increase employee awareness of the organization’s investment in

compensation and benefits such as base pay and bonuses, health care,
401(k)/403(b) matches, and paid time off;
77 increase employee engagement and satisfaction through transparency
regarding programs, policies, processes, and alignment with the total
rewards strategy;
77 provide important information such as program structure, eligibility, timing,
and measurement;
77 attract applicants and help retain existing employees;
77 show the relationship between total rewards programs, performance
assessment, and employee contributions toward achieving desired
business objectives;
77 explain any changes to the programs and their impact on employees; and

96 A GUIDE TO THE HR BODY OF KNOWLEDGE TM

77 obtain feedback on the perceived value of the programs.
Training and communicating about compensation and benefits information
may encourage the use of self-service tools to access and update employee
compensation and benefit information. Successful adoption of self-service
capabilities lessens the administrative burden on human resource management
and provides employees with a secure and convenient way to review or manage
their own compensation and benefits information.

Self-service capabilities may include:

77 updating personal information such as address changes, dependent

information, and emergency contact information;
77 viewing health insurance options and plan documents, requesting changes,
and completing benefits enrollment;
77 accessing employee pay statements and reviewing or changing tax
withholding; and
77 requesting and tracking paid and unpaid leave.

3.4.8 Develop/select, implement/administer, update, and evaluate an

ethically sound executive compensation program

Executive compensation programs are designed to attract, retain, and

motivate skilled senior leaders who will directly affect an organization’s long-
term performance and overall value proposition. Executive pay packages may
be designed so that a portion of an executive’s compensation is contingent
upon an organization achieving its strategic goals and financial objectives.
Some organizations are regulated by laws that may impose limits on executive
compensation and may require reporting and disclosure to certain agencies. If an
organization has a board of directors, they may form a compensation committee
to provide oversight of executive compensation plans.

Executive pay usually consists of a total rewards strategy including direct

annual compensation, short- and long-term incentives, equity options, deferred

HR CERTIFICATION INSTITUTE 97
compensation, supplemental retirement plans, severance agreements, or other
benefits and perquisites such as additional vacation time off. The majority of
an executive’s compensation may be in the form of equity that has a vesting
schedule. The vesting of equity may be based on the executive’s ability to meet
performance goals as well as the terms of their employment contract.

Regulatory compliance for executive compensation and nonqualified deferred

compensation plans is critical to minimize an organization’s legal exposure, and
avoid penalties or potential plan disqualification. For certain organization types,
executive compensation and stock awards may be published publicly in an annual
report and in internet stock market and company data sources. A privately held
organization is not generally required to disclose its executives’ compensation,
though they may choose to do so to demonstrate transparency.

Executive compensation packages should be periodically evaluated against

criteria that may include:

77 individual or company performance;

77 alignment with business objectives;
77 regulations;
77 short term and long term affordability; and
77 public perception.
In general, individual performance and company performance are measured in
quantifiable terms such as increased revenue, decreased costs, or increases in
the stock price. Some organizations also measure performance using operational
efficiency or client satisfaction to evaluate how executives should
be compensated.

Executives have an ethical responsibility to the organization and its employees

and, for publicly traded companies, to the shareholders and public. This
responsibility extends beyond legal requirements and may include employee
safety, labor practices, truth in advertising, and corporate social responsibilities

98 A GUIDE TO THE HR BODY OF KNOWLEDGE TM

such as environmental and philanthropic endeavors. Ethical business practices
can create a positive working environment, help the business grow, and gain the
support and resources it requires to be successful.

3.4.9 Develop, implement/administer and evaluate expatriate and foreign

national compensation and benefits programs

Expatriate and foreign national compensation and benefits programs are

designed to encourage employees to accept international assignments in
support of the organization’s business objectives. Methods of administering
compensation and benefit programs during expatriate assignment may
include individual negotiation, lump sum payment, equalization, reduction and
totalization agreements, cafeteria plans, and the balance sheet approach.

When developing expatriate compensation and benefits, organizations balance

the need for flexibility at the local level with parity and consistency at the
organizational level. Balancing competing priorities should be guided by the
organization’s strategic plan. Employers should be sure to comply with relevant
host country laws and reduce corporate and employee tax liability when
designing expatriate compensation and benefit programs. The organization’s
global strategy may influence the design of the expatriate compensation plan.

In addition to traditional benefits such as globally accessible health care plans,

many organizations develop and implement comprehensive mobility services
that may include:

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77 Base pay 77 Cost of living adjustments
77 Relocation and repatriation 77 Housing or living quarters
assistance allowances
77 Destination management 77 Spousal relocation and employment
services such as culture and assistance
language training 77 Tax assistance
77 Location premiums 77 Home leave
77 Dependent education
77 Paid time off in excess of standard
organizational policy to accommodate
legal requirements or cultural custom
in the host country

The ultimate goal is to alleviate common sources of stress so expatriates can

focus on job performance.

When evaluating corporate support given to expatriates, organizations may

solicit employee feedback, benchmark practices by using external surveys, or
hire vendors that specialize in mobility services. Organizations should evaluate
the return on investment in expatriate compensation and benefits using standard
metrics to validate that programs are affordable and effective.

3.5 EMPLOYEE AND LABOR RELATIONS

Employee and labor relations efforts influence all levels of the employer/
employee relationship and are a fundamental part of all human resource areas of
responsibility. The goals of employee and labor relations are to:

77 promote a positive organizational culture through proactive efforts that

encourage engagement, participation, and recognition of performance results;

100 A GUIDE TO THE HR BODY OF KNOWLEDGE TM

77 promote programs that offer resources for employees to share ideas and
express concerns;
77 retain organizational independence and flexibility by avoiding unionization, for
those organizations where a union is not desired and does not currently
exist; and
77 establish positive and productive relationships with all key stakeholders in
order to maintain beneficial working conditions for the workforce.
Employee and labor relations involve a wide range of practices and activities
that result from the employer/employee and labor-management relationship.
Employee and labor relations help guide decisions regarding recruiting, training,
compensation, employee discipline and termination, as well as union organizing
and elections and collective bargaining agreements. Employee and labor
relations require the implementation of activities to verify that all related actions
are compliant with applicable laws and regulations to minimize the risk of costly
litigation. These activities may include:

77 establishing, updating, and communicating employer expectations and actions

that may be taken when they are not met;
77 managing employee performance;
77 coaching and counseling;
77 disciplining and terminating employees;
77 collective bargaining and contract negotiation and administration;
77 evaluating requests for religious and disability accommodations;
77 investigating and responding to internal employee complaints as well as those
filed with local, state, or federal agencies;
77 managing the process of collective bargaining and contract negotiation and
administration; and
77 implementing a structured grievance or dispute resolution, mediation, or
arbitration process to address complaints and conflicts.

HR CERTIFICATION INSTITUTE 101

3.5.1 Ensure that employee and labor relations activities are compliant with
applicable federal laws and regulations

Organizations must verify that employee and labor relations activities are
compliant with all relevant local, state, and federal laws and regulations and
at the same time balance between the rights of both the employees and the
organization. Maintaining compliance protects the organization from legal risk.

Employee relations activities focus on maintaining positive employee-employer

relationships, preventing employee issues from escalating, and resolving
work-related issues to maintain high employee engagement and productivity.
Employee relations activities include advising supervisors on methods to correct
poor employee performance. It also includes providing a clear understanding
of the organization’s standards and policies to aid employees in correcting
identified performance gaps. When an organization has unionized employees,
many elements of labor relations are controlled by a collective
bargaining agreement.

Elements of employee and labor relations may include:

77 Recruitment, selection, promotion, 77 Workforce reductions and job

transfer, and training activities eliminations
77 Compensation and benefits 77 Layoff and recall of employees
77 Work assignments 77 Disciplinary actions
77 Grievance/dispute resolution 77 Performance management
procedures 77 Documentation practices
77 Social media use policies 77 Meetings and communications with
77 Protected and concerted activity collective bargaining units or other
as defined by The National Labor employee representative groups
Relations Act (NLRA)

102 A GUIDE TO THE HR BODY OF KNOWLEDGE TM

The laws and regulations that apply to employee and labor relations may include:

77 The National Labor Relations Act 77 Title VII of the Civil Rights Act of 1964,
(NLRA) as amended
77 The Americans with Disabilities Act 77 Occupational Safety and Health
(ADA) Administration (OSHA) regulationsThe
and the ADA Amendments Act Health Insurance Portability and
(ADAAA) Accountability Act (HIPAA)
77 The Family Medical Leave Act (FMLA) 77 The Age Discrimination in
77 The Worker Adjustment and Employment Act (ADEA)
Retraining Notification Act (WARN) 77 Genetic Information
77 The Older Workers Benefit Protection Nondiscrimination Act (GINA)
Act (OWBPA) 77 The Uniformed Services Employment
77 Fair Labor Standard Act (FLSA), and and Reemployment Rights Act
applicable state and local wage and (USERRA)
hour laws 77 Immigration Reform and Control Act
77 Applicable Executive Orders (IRCA)
pertaining to federal contractors and 77 Rehabilitation Act
sub-contractors 77 Immigration and Nationality Act (INA)
77 Fair Credit Reporting Act (FCRA) 77 Employee Polygraph Protection Act
77 Pregnancy Discrimination Act (PDA) (EPPA
77 Vietnam Era Veterans Readjustment 77 Consumer Credit Protection Act
Assistance Act (VEVRAA) (CCPA)
77 Sarbanes-Oxley Act of 2002 (SOX)

An organization may verify compliance in a variety of ways, including:

77 auditing employee and labor relations activities;

77 training employees and managers on applicable laws and regulations; and
77 designating a compliance officer.

HR CERTIFICATION INSTITUTE 103

Compliance with applicable laws and regulations promotes a strong employer
image and brand, protects against potential legal risks, and contributes to a
positive work environment.

3.5.2 Assess organizational climate by obtaining employee input

Organizations can evaluate its overall health by regularly assessing the

organizational climate using a variety of formal, informal, qualitative, and
quantitative tools including attitude surveys, opinion surveys, and
engagement surveys.

Techniques to assess organizational climate may include:

77 climate surveys in which employees respond to questions and results are

tabulated and reported to management;
77 one-on-one interviews in which employees are asked the same questions;
77 focus groups in which employees are asked targeted questions in small
groups, with feedback summarized for management evaluation;
77 skip level meetings and open door policies;
77 town hall meetings in which groups of employees meet with management to
express concerns, ask questions, and make suggestions; and
77 social media monitoring.
Considerations for organizational climate assessments may include:

77 protecting employee anonymity, which may encourage higher rates of

participation and potentially produce more reliable data;
77 using third party vendors versus creating internal surveys and considering
factors such as expertise, resources, cost, management preference, and the
organization’s ability to benchmark against normative values;
77 selecting the most appropriate facilitator such as a content expert, a facilitation
expert, a neutral party, or a combination to accomplish organizational
objectives;

104 A GUIDE TO THE HR BODY OF KNOWLEDGE TM

77 evaluating the time available to review and respond to results; and
77 determining the appropriate amount of feedback to share as well as
what actions management may need to take in order to make necessary
improvements based on results of the assessment.

3.5.3 Develop and implement employee relations programs that promote a

positive organizational culture

Employee relations programs are designed to create a positive organizational

culture that affects critical elements linked to organizational strategy such as
employee engagement, morale, and commitment. Employee relations programs
provide a fair and consistent system for addressing, reporting, and resolving
problems that may arise during employment. An employee relations program
may include:

77 ‘open door’ policies that encourage employees to submit ideas and report
concerns to management;
77 equal employment opportunity (EEO), disability accommodation, and
diversity elements;
77 guidelines for workplace conduct;
77 systems for effective communications between management and employees;
77 procedures for documenting employment actions such as promotions,
transfers, demotions, and disciplinary issues;
77 procedures for conflict resolution or grievance;
77 performance management systems;
77 employee recognition and rewards; and
77 employee satisfaction or engagement surveys.
Employee relations programs also may be directly related to the organization’s
diversity initiatives. These initiatives serve multiple purposes including advocating
a diverse and inclusive work environment, supporting different cultures and

HR CERTIFICATION INSTITUTE 105

traditions, encouraging understanding between employees, and demonstrating
the organization’s commitment to equal employment and inclusion.

Effective diversity programs may lead to enhanced employee engagement,

increased opportunity for innovation, and improved organizational
performance. Successful diversity initiatives encourage leveraging differences
between employees and creating opportunities for diverse individuals to work
together on project teams. Other examples include external initiatives such as
forming partnerships with diverse professional societies or trade organizations,
or internal programs such as fostering career development by creating diverse
mentor/mentee relationships, supporting employee resource groups, or
sponsoring events that celebrate the workforce’s diversity.

A positive employee relations program may affect an organization by:

77 reducing voluntary turnover;

77 improving attendance;
77 increasing employee engagement and productivity;
77 improving an organization’s brand;
77 deterring unionization;
77 recruiting higher quality candidates; and
77 enhancing customer satisfaction.

3.5.4 Evaluate effectiveness of employee relations programs through the

use of metrics

Metrics are used to evaluate the effectiveness of employee relations programs.

Metrics help validate whether programs are supporting the organization’s
strategy and objectives in the manner intended. Evaluation of employee relations
programs should also measure employee satisfaction and the effectiveness
and ease-of-use of the programs. Once the metrics have been collected it is
important to analyze the data and determine if there are required adjustments.

106 A GUIDE TO THE HR BODY OF KNOWLEDGE TM

If adjustments are required, it is necessary to identify the root causes and
develop an action plan.

Measures typically used to evaluate the effectiveness of employee relations

programs can be either quantitative or qualitative. Examples may include:

77 data from exit interviews and post-employment surveys;

77 employee engagement and climate survey results;
77 number and type of employee grievances;
77 number of claims filed with federal or state regulatory agencies;
77 penalties assessed by administrative or investigative agencies;
77 turnover rates;
77 employer sponsored benefits program participation rates;
77 costs associated with lost productivity;
77 absenteeism rates; and
77 performance and engagement metrics.

3.5.5 Establish, update, and communicate workplace policies and

procedures and monitor their application and enforcement to ensure
consistency

Workplace policies and procedures define the guiding principles for the
employment relationship by outlining expected standards of conduct and
obligations of each employee and the organization. Workplace policies and
procedures are developed and documented by the organization, for instance,
within an employee handbook, or negotiated as part of a collective bargaining
agreement.

When establishing or revising a workplace policy, it is important to consider

whether it:

77 is compliant with all applicable laws

and regulations;

HR CERTIFICATION INSTITUTE 107

77 is legally defensible;
77 creates or alters conditions of employment;
77 demonstrates the organization’s commitment to diversity;
77 aligns with the culture, environment, and strategies of the organization; and
77 is reasonable and attainable without creating unintended consequences.
The leadership team and legal counsel should be consulted prior to the design
and organization-wide dissemination of new or revised policies. Once finalized,
the organization should develop a communication plan. The management team
should be briefed first so they can respond to questions or concerns that may
arise once policies are communicated.

Workplace policies should include an effective date and be communicated

electronically or by paper. Depending on the nature or significance of the new
or revised policy, a signed acknowledgement of receipt of the policy from each
employee should be maintained in the employee’s file.

A monitoring process is essential following the communication and

implementation of a new workplace policy to assess the impact on the workforce.
Factors to take into consideration when monitoring the impact of a newly
implemented policy may include:

77 the extent to which management is consistently applying the policies

and procedures;
77 increases or decreases in complaints in the areas covered by the policy
or process;
77 whether the change supports the organization’s strategic goals;
77 how the change has affected the organization’s culture; and
77 the level of acceptance and compliance with the policy.
Workplace policies and procedures should be reviewed and updated periodically.
Regular reviews help confirm that the organization can adapt to changing
legislative, cultural, and business climates.

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3.5.6 Develop and implement a discipline policy based on organizational
code of conduct/ethics, ensuring that no disparate impact or other
legal issues arise

A discipline policy sets standard expectations for employee behavior and

conduct and provides for corrective action when those standards are not met.
The objectives of a discipline policy are to:

77 minimize disruptions to daily work tasks;

77 outline expected employee behaviors and conduct in accordance with
organizational policies and procedures, codes of conduct, and ethics;
77 provide managers with the necessary tools and training to consistently manage
employee behavior or conduct that does not meet expectations;
77 follow due process so employees have the opportunity to further review or
address disciplinary actions, as well as develop plans for improvement;
77 establish appropriate and consistent actions to deal with policy violations; and
77 maintain compliance with applicable laws and regulations.
A discipline policy may include:

77 a list of expected employee behaviors and conduct as found in the

organization’s code of conduct, work rules, or ethics policy such as following
safety rules, using organizational resources appropriately, preventing
incidents of workplace discrimination and harassment, violence or theft,
and dishonesty;
77 an overview of general corrective actions designed to notify employees of the
need to improve performance such as counseling, verbal or written warnings,
and suspensions;
77 a formal written progressive discipline policy, which outlines specific
occurrences of unacceptable employee behavior or conduct (caution should
be taken so that written progressive discipline policies are not interpreted as

HR CERTIFICATION INSTITUTE 109

 an implied contract, forcing an employer to follow all steps regardless of the
employee behavior or conduct);
77 an appeals process such as a grievance procedure or alternative dispute
resolution program; and
77 the period of time the terms of any disciplinary actions taken will remain
in effect.
The Sarbanes-Oxley Act of 2002 (SOX), requires that publicly traded companies
maintain and clearly communicate the organization’s code of conduct and ethics
policy statement to all employees. SOX compliance also requires organizations
address matters relating to:

77 conflicts of interest;
77 financial accounting and improper payments;
77 insider information and fair disclosure; and
77 protection against retaliation for whistleblowers.
Documentation of observations and subsequent actions is a critical tool to help
prevent potential litigation or arbitration arising from employee complaints filed
with federal or state agencies.

3.5.7 Create and administer a termination process ensuring that no

disparate impact or other legal issues arise

Termination processes and procedures are designed to manage an organization’s

voluntary and involuntary terminations. Considerations in the termination process
may include:

77 maintaining the at-will employment relationship or confirming employment

agreements are not breached by either party;
77 preventing violations of applicable laws and regulations;
77 identifying circumstances that may give rise to disparate impact;
77 reducing the risk of discrimination or retaliation;

110 A GUIDE TO THE HR BODY OF KNOWLEDGE TM

77 complying with the Worker Adjustment and Retraining Notification Act (WARN)
(or state or local equivalents) in case of a significant reduction in workforce
or facility closing;
77 uncovering potential cases of constructive discharge, in which the employer
has created an intolerable environment that causes an employee to exit
the organization;
77 extending Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA)
rights and other applicable benefits to departing employees;
77 recovering organizational property and equipment;
77 removing access to systems and property; and
77 minimizing litigation claims or complaints filed with local, state, or
federal agencies.
Organizations with collective bargaining agreements must consider the just
cause standard when terminating employees. To determine whether an employee
covered by a collective bargaining agreement was terminated for just cause, an
organization must consider the following seven factors:

77 Was the employee adequately warned in advance about the possible

consequences of the conduct?
77 Was the organization’s rule or order reasonably related to the safe, orderly, and
efficient operations of its business?
77 Did management conduct an investigation before administering
disciplinary action?
77 Was the investigation conducted in a fair and objective manner?
77 Did the investigation produce substantial evidence or proof of guilt?
77 Were the rules, orders, and penalties applied fairly and consistently to
all employees?
77 Was the disciplinary action taken reasonably related to the nature and
seriousness of the offense?

HR CERTIFICATION INSTITUTE 111

A termination process may include:

77 a review and documentation of all terminations, both voluntary and

involuntary, by a third party to verify no disparate treatment or impact, public
policy exceptions, or constructive discharge issues exist;
77 the presence of a witness when the termination is involuntary;
77 a review of the circumstances that led to the termination decision by a third
party to confirm internal policies and procedures were applied correctly for
cases of involuntary terminations;
77 an exit interview conducted by an objective third party outside of the
employee’s normal reporting structure to uncover underlying reasons for
voluntary resignation;
77 a review of final compensation and benefit continuation owed to the employee
within specific timelines on or after termination;
77 a procedure for the terminated employee to return organizational property and
leave the premises;
77 a severance package that has a release against any legal claims by the
employee against the employer including, but not limited to, special terms for
employees over the age of 40 because of the Older Workers Benefit Protection
Act (OWBPA) and Age Discrimination in Employment Act (ADEA) and to group
terminations under the Worker Adjustment and Retraining Notification Act
(WARN); and
77 consultation for additional guidance as necessary with an employment or
labor attorney.
Employers in a non-union environment should establish a clear at-will
employment relationship so both parties understand that the employment
relationship may be terminated at any time by either party. Even though all states
recognize at-will employment, some states place limitations on it.

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Organizations should avoid including a detailed, written termination process in
employee handbooks, as this may be considered an implied contract between
the organization and employee. However, in a union environment, a written
termination process may be included in the collective bargaining agreement.
Additionally, an individual employee could have a written employment
agreement that contains a clause that addresses grounds for termination.

3.5.8 Develop, administer, and evaluate grievance/dispute resolution and

performance improvement policies and procedures

A grievance or dispute resolution procedure is created to help formally resolve

employment disputes between employees and management. Organizations
may address grievance or dispute resolution in a variety of ways. Examples
may include:

77 enacting an ‘open door’ policy for employees to speak to supervisors or

managers;
77 creating a progressive grievance or conflict resolution process, whereby
employees may raise concerns to supervisors or other designated staff, along
with a defined escalation process if not resolved at each step in the process;
77 offering an alternative dispute resolution process whereby both parties
mutually agree upon a third party who may serve as a mediator or as an
arbitrator with authority to issue a binding decision;
77 developing internal investigation procedures;
77 designating an ethics officer, a compliance officer, or an ombudsman; and
77 establishing a confidential and secure reporting mechanism for employees to
communicate issues anonymously.
Performance improvement policies and procedures should create a fair,
consistent, legally compliant, and objective process to address employee
concerns and performance related issues. Organizations should have clear and

HR CERTIFICATION INSTITUTE 113

consistent methods of addressing employee performance issues. These
may include:

77 job descriptions with defined expectations, responsibilities, and obligations;

77 performance improvement plans (PIPs) that have clearly defined criteria,
objectives, expectations, timelines, and consequences of non-improvement;
77 written behavioral standards and grounds for immediate dismissal such as acts
of violence or other significant misconduct; and
77 policies that address job performance standards such as attendance, working
hours, and proper attire.
Clear methods of addressing employee concerns demonstrate that an
organization values its employees and is committed to treating them in a fair and
consistent manner. Giving employee concerns proper respect contributes to an
engaged workforce and positive organizational climate.

3.5.9 Investigate and resolve employee complaints filed with federal

agencies involving employment practices or working conditions, utilizing
professional resources as necessary

Having internal investigation procedures allows an organization to respond to

charges filed with state or federal regulatory agencies by current and former
employees, job applicants, and labor unions. In the event charges are found to
have merit, human resource management should be familiar with the resolution
methods and timelines used by regulatory agencies including the Equal
Employment Opportunity Commission (EEOC), the U.S. Department of Labor
(DOL), Office of Federal Contract Compliance Programs (OFCCP), Occupational
Safety and Health Administration (OSHA), and the National Labor Relations
Board (NLRB).

The purpose of an investigative procedure is to:

77 understand prohibited employment practices which may be occurring

at the worksite;

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77 respond to complaints filed with state and federal agencies;
77 establish internal recordkeeping and documentation procedures to comply
with state and federal agency requirements; and
77 determine when to use professional resources such as investigators, legal
counsel, and mediation or arbitration specialists.
Examples of investigations by federal agencies may include alleged violations of:

77 employee rights to engage in protected and concerted activity whether

or not a union is present or unfair labor practice charges on the part of an
organization or a labor union by the National Labor Relations Board (NLRB);
77 anti-discrimination laws filed by an employee or applicant claiming
discrimination or harassment that may occur during the hiring, training,
employment and discipline stages by the Equal Employment Opportunity
Commission (EEOC);
77 retaliation, which occurs when an adverse action is taken against an employee
for engaging in a protected activity such as filing a complaint;
77 safety standards where work is being performed in an unsafe or unhealthy work
environment, or when the employer does not comply with safety standards by
the Occupational Safety and Health Administration (OSHA);
77 the Family Medical Leave Act (FMLA) and misclassification of exempt and non-
exempt status by the Department of Labor (DOL); and
77 anti-discrimination laws by employers doing business with the federal
government by the Office of Federal Contract Compliance Programs (OFCCP),
which also enforces and investigates violations of the Vietnam Era Veterans
Readjustment Assistance Act (VEVRAA).
Federal or state agencies and employers may use different processes to reach
agreement regarding a grievance or dispute such as:

77 mediation, which occurs when a third party acts in the role of a non-binding
neutral expert to aid the parties in resolving their dispute;

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77 arbitration, which occurs when the disputing parties are either voluntarily or
mandatorily required to use a third party to make a binding decision regarding
the related issues; and
77 other alternative dispute resolution processes, such as a hearing with a
grievance council or non-mediated negotiations.
Records of the investigation and outcome must be maintained as determined by
applicable laws and regulations.

3.5.10 Develop and direct proactive employee relations strategies for

remaining union-free in non-organized locations

Developing, directing, and implementing proactive employee relations

strategies promotes a work environment in which employees feel that third party
representation is unnecessary for the improvement of wages, hours, and working
conditions. It aligns human resource policies with the organization’s desire to
remain union-free.

An effective union-free strategy will often incorporate a strong management

training program that may include: promoting a positive work environment,

77 developing effective leaders,

77 knowledge of major employment laws,
77 understanding of the advantages of a non-union workforce,
77 interpersonal and communication skills and methods,
77 employee rights under various state and federal labor laws as well as what
constitutes unfair labor or management practices, and
77 defined protocols for addressing employees’ concerns or grievances.
Many union-free organizations develop policies and procedures that mirror the
elements found in a collective bargaining agreement. However, rather than being
contained in a collective bargaining agreement, they are communicated through
an employee handbook or other means.

116 A GUIDE TO THE HR BODY OF KNOWLEDGE TM

In a non-union environment, communication between the organization and
employees tends to be more informal than in union environments. Policies
covering wages, hours, and working conditions tend to be more flexible and can
be changed without input from a labor union.

Caution is advised for non-union organizations that use employee committees,

other than for safety. Depending upon the scope and purpose of the committee,
the National Labor Relations Board (NLRB) may find that an employee committee
represents the interest of the workforce and could be considered a “labor union”
within the meaning of the National Labor Relations Act (NLRA). Additionally, an
employer unintentionally may commit unfair management practices by exerting
undue control over an employee committee.

3.5.11 Direct and/or participate in collective bargaining activities, including

contract negotiation, costing, and administration

Collective bargaining is a process in which an employee union negotiates a labor

contract with the employer on behalf of the employees. A collective bargaining
agreement typically covers all employment terms and conditions including pay,
hours, leave, health care, retirement benefits, and employment actions.

Under the National Labor Relations Act (NLRA), employees may bargain
collectively with their employer through a representative of their choice such as
a union for wages, hours, and other terms and conditions of employment. Both
parties must bargain in good faith until an agreement is reached. If no agreement
can be reached, the employer may declare an impasse. Generally, in the event of
an impasse, the employer may unilaterally implement its last, best, and final offer.

Collective bargaining activities may include:

77 Determining who will serve on the organization’s bargaining team, and in

what capacity
77 Negotiating a bargaining agreement
77 Collecting data to support collective bargaining

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77 Implementing new collective bargaining agreements
77 Communicating with collective bargaining units
77 Communicating with employees who are not members of the union, but are
covered by the terms and conditions of the labor agreement in
right-to-work states
77 Determining, with the bargaining unit, the times and dates to meet
to negotiate
77 Using the services of the Federal Mediation and Conciliation Service once
bargaining has reached an impasse, but before the organization implements its
last, best, and final offer
77 Respecting employee rights under the NLRA, such as the right to engage in
protected concerted activity
77 Preparing key negotiating points and what the organization hopes to achieve
77 Conducting bargaining in good faith
77 Administering and monitoring collective bargaining agreements
77 Training management on changes in the collective bargaining agreement
77 Interpreting collective bargaining agreements
77 Notifying the collective bargaining unit of the intent to bargain for terms and
conditions of employment
77 Costing and modeling of various bargaining proposals such as wages
and benefits
77 Avoiding unfair labor practices (ULPs) as defined by the NLRA
There are three categories of bargaining subjects:

77 Mandatory subjects directly relate to the NLRA language requiring parties to

bargain with respect to wages, hours, and other terms and conditions
of employment.

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77 Permissive, or voluntary subjects, are those that an employer or bargaining
unit may choose but are not required to discuss such as dress codes, the
inclusion of supervisors in the collective bargaining unit, the use of union labels
on products, and the recording of negotiating sessions.
77 Illegal subjects are provisions that would violate the NLRA, federal, state or
other labor laws such as limitations on concerted activity and closed-shop
clauses, under which the organization agrees to hire only union members,
or union shop clauses, under which employees are required to become and
remain union members, in right-to-work states.

3.6 RISK MANAGEMENT

Risk management focuses on developing, implementing, and evaluating

programs, policies, and procedures in order to provide a safe and secure working
environment. Risk management is essential in protecting the organization from
potential liability. The goals of risk management activities are to:

77 promote employee health and well-being;

77 avoid disruption to the organization and recover rapidly when disasters or
emergencies occur;
77 safeguard employee security and safety; and
77 protect the organization’s assets.
Risk management involves the development and implementation of workplace
policies and procedures as well as hazard and security measures to eliminate or
reduce the risks of injury or illness to employees and prevent internal or external
security breaches of sensitive organization or employee data. These activities
may include:

77 assessing organizational risk by the administration of internal or external audits;

77 implementing and communicating the organization’s safety, theft or fraud
prevention, and appropriate use of policies and procedures;

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77 implementing premise security measures such as access control systems,
alarms, closed circuit cameras, and lighting to prevent incidents of
workplace violence;
77 setting safety standards, goals, and objectives;
77 training employees, managers, and supervisors on workplace hazards and the
proper use of an organization’s equipment or personal protective devices;
77 developing emergency preparedness, disaster recovery, and business
continuity procedures;
77 implementing data security measures to protect and maintain the
confidentiality of organizational and individual information as well as a data
breach response plan for dealing with data breaches should they occur; and
77 requiring employees to sign non-compete and non-disclosure employment
agreements to protect an organization’s intellectual or proprietary information.

3.6.1 Ensure that workplace health, safety, security, and privacy activities
are compliant with applicable federal laws and regulations

Organizations must verify that workplace health, safety, security, and privacy
activities comply with applicable federal state and local laws and regulations to
minimize the likelihood of liability and negative consequences.

Examples of such laws are:

77 Occupational Safety and Health Act (OSHA);

77 Drug-Free Workplace Act (DFWA);
77 Americans with Disabilities Act (ADA) and ADA Amendments Act
(ADAAA); and
77 Health Insurance Portability and Accountability Act (HIPAA).
When monitoring whether activities are compliant with applicable laws and
regulations, it is important to:

120 A GUIDE TO THE HR BODY OF KNOWLEDGE TM

77 understand laws and regulations and how they apply to workplace health,
safety, security, and privacy activities;
77 educate the workforce as well as each individual’s role in compliance with
policies, laws and regulations; and
77 evaluate and revise workplace health, safety, security, and privacy activities as
necessary to verify compliance with applicable laws and regulations.

3.6.2 Conduct a needs analysis to identify the organization’s

safety requirements

A needs analysis is performed to design and implement the most appropriate

safety programs or activities. This helps to identify, develop and implement
appropriate occupational health and safety (OHS) training programs, allocate
resources accordingly, and to obtain organizational support. This helps to confirm
that appropriate training is implemented, resources are properly allocated, and
organizational support is obtained.

Organizations perform a safety needs analysis to:

77 determine whether a problem or hazard exists;

77 identify the root cause of a problem or hazard;
77 verify whether a facility has required safety equipment and stations, such as fire
extinguishers and eye wash stations;
77 assess who, what, where, and when occupational health and safety (OHS)
actions are needed to address the problem(s) or hazard(s) identified in the
analysis results; and
77 determine whether training or other actions such as developing protocols,
updating safety equipment, or adding signage are necessary.
Organizations must identify the gaps in knowledge, skills, abilities, and other
characteristics (KSAOs) to minimize the risk of injury or illness. Additionally,
organizations must design appropriate training to comply with all
regulatory requirements.

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3.6.3 Develop/select and implement/administer occupational injury and
illness prevention programs

Organizational occupational injury and illness prevention programs are designed

to reduce the number and severity of injuries and illnesses. Programs must
comply with applicable laws and regulations such as the Occupational Safety and
Health Act (OSHA) and workers’ compensation laws. There are several benefits to
having an effective organizational injury and illness prevention program.

When an organization identifies hazards, develops plans for prevention and

mitigation, and educates the workforce and visitors, it may reduce organizational
and employee costs including pain and suffering, lost wages, workers’
compensation payments, cost of replacement workers, and reduced productivity
resulting from lost employment. There are several other benefits of having an
effective organizational injury and illness prevention plan that may include:

77 improved workplace safety and health,

77 increased employee engagement and productivity levels, and
77 reduced legal claims arising from illnesses or injuries.
Components of an occupational injury and illness prevention program may
include the development of evacuation plans, hazard communication programs,
ergonomic evaluations, and employee records management including electronic
or paper records, retention schedules, and disposal requirements.

Most employee injuries and illnesses are caused by a variety of workplace

hazards. Workplace hazards may include:

77 physical hazards, such as noise, radiation, and heat or cold stress;

77 chemical hazards, such as gases, vapors, and dust;
77 biological hazards, such as blood borne pathogens; and
77 ergonomic/safety hazards, such as improper lifting, awkward posture,
and trips and falls.

122 A GUIDE TO THE HR BODY OF KNOWLEDGE TM

Occupational injury and illness prevention programs may be developed by an
organization or selected from a third party vendor who provides those services.
Implementation of an occupational injury and illness prevention program
may include:

77 anticipation and recognition of hazards through knowledge of materials,

operations, processes, and conditions;
77 evaluation of the work environment through observation, measurement,
and analysis of hazard exposure, as well as the determination of exposure
frequency and duration;
77 comparison of applicable laws and regulations to internal processes and
characterization of risks;
77 management of identified risk through hazard communication such as safety
data sheets and risk communication and documentation such as receipt and
understanding of policies and procedures; and
77 control of exposures using risk management techniques through elimination or
reduction of hazards.
Control of exposures occurs at the following levels:

77 elimination controls, which removes the hazard;

77 substitution controls, which replaces a hazard with something non-hazardous;
77 engineering controls, which use physical changes such as machine guarding or
ventilation systems;
77 administrative controls, which use procedural changes such as job rotation and
hazard communication training; and
77 Personal Protective Equipment (PPE) such as gloves and respirators.
In addition, an organization should evaluate the workplace for physical conditions
that may create opportunities for violence such as the presence of weapons and
poorly lit parking areas as well as potential violent behavior such as intimidation,

HR CERTIFICATION INSTITUTE 123

bullying, harassment, and verbal threats from both within and outside
of the organization.

The occupational injury and illness prevention program should be audited to

determine whether improvements are needed and it is compliant with
applicable regulations.

3.6.4 Establish and administer a return-to-work process after illness or injury

to ensure a safe workplace

A return-to-work process prompts employees to return to work as soon as they

are able following an illness or injury in compliance with applicable laws and
regulations such as leave benefits under the Family and Medical Leave Act
(FMLA) or reasonable accommodation under the Americans with Disabilities Act
(ADA) and ADA Amendments Act (ADAAA).

Benefits of a return-to-work process may include:

77 faster, more effective recoveries;

77 safer work environments;
77 cost reduction including lost wages, employee replacement, medical
expenses, workers’ compensation claims and premiums and lost
productivity; and
77 improved engagement and job satisfaction by providing employees alternate
assignments during recuperation.
Prompt diagnosis and proper treatment are important for a timely recovery and
return to work. Medical evaluations are conducted after an employee has been
absent from work for a prolonged period of time due to an injury or illness in
order to establish the worker’s current condition, limitations, ability to return to
work, and ability to perform the essential functions of the job.

Return-to-work processes may include a transitional duty program, also referred

to as modified duty or light duty. Management involvement and support

124 A GUIDE TO THE HR BODY OF KNOWLEDGE TM

are critical to the success of a transitional duty program. In transitional duty
work, either the employee’s regular job is modified to accommodate current
disabilities or the employee is given a temporary alternate job assignment.
Transitional work is not meant to be a permanent accommodation of a
disability, but rather part of the process to move an employee toward the
goal of regaining full working capacity in a timely manner. Effective case
management, early assessment and treatment, and ongoing communications
can assist in the productive return to work of employees.

3.6.5 Develop/select, implement, and evaluate plans and policies to protect

employees and other individuals, and to minimize the organization’s
loss and liability

Risk management plans and policies protect employees and other individuals and
minimize the organization’s loss and liability by helping employees understand
and prepare to respond to threats to an organization using a detailed action
plan. An organization has a legal duty to protect its employees and other
individuals such as clients, customers, visitors, and vendors and to protect the
health, safety, and well-being of employees and other individuals who work for,
conduct business with, or otherwise have the occasion to be on the organization’s
premises. Likewise, minimizing an organization’s liability and potential loss, is
important to protect the assets of the organization and its future viability.

Considerations for developing or selecting and implementing risk management

plans and policies may include:

77 legal and regulatory compliance requirements;

77 covered individuals;
77 types of events and incidents that may threaten safety and potentially result in
loss or liability;
77 appropriate steps individuals and organizations should take to respond to
particular events or incidents; and

HR CERTIFICATION INSTITUTE 125

77 resources required to implement the plans and policies.
Plans and policies intended to protect employees and other individuals and
minimize an organization’s loss and liability may include:

77 emergency response plans that describe the detailed steps individuals should
take to initially respond to an emergency event such as fire, flood, or
power outage;
77 workplace violence prevention plans that describe the detailed steps
individuals should take to detect potential violence and prevent or
respond to actual violent acts committed in the workplace such as threats,
harassment, bullying, and physical attacks against employees within or
outside the work environment;
77 substance abuse plans that describe the detailed steps an organization should
take in the event an employee or other individual has excessively or illegally
used substances such as referral to an employee assistance program
(EAP); and
77 safety and security plans that describe the detailed actions individuals should
take to prevent employee illness and injury and prevent harm, damage, or loss
to individuals or property.
Organizations should evaluate its risk management plans and policies to
determine whether they address current potential risks, effectively protect
individuals and the organization, and minimize loss and liability.

3.6.6 Communicate and train the workforce on security plans and policies

Communicating and training the workforce on the organization’s security plans

and policies helps employees understand their specific roles and responsibilities
in preventing harm, damage, or loss to the organization, individuals, or property.
Examples of security plans and policies are those related to technology and the
Internet, workplace violence, and theft.

126 A GUIDE TO THE HR BODY OF KNOWLEDGE TM

An organization’s ability to communicate security policies and standards plays
an important role in the overall success of organizational security programs.
Organizations should design and implement an effective communication strategy
to keep employees informed regarding workplace security issues.

Available communication delivery tools may include:

77 oral presentations and group meetings;

77 employee memos and newsletters; and
77 email, social media, intranet, or other technology-based delivery platforms.
For organizational security programs to be effective, it is critical to provide
appropriate training for supervisors, managers, and employees.

An effective organizational security program must include training so that both

managers and employees clearly understand and are able to identify various
workplace hazards and their respective roles in preventing security breaches in
the most effective manner possible.

Human resource management should identify who is responsible for the content
and delivery of training. Training may be delivered by employees, external
vendors, or a combination of the two and should be targeted based on each
individual’s specific role and responsibilities. Training should be conducted at
several key intervals, including:

77 when an individual first joins an organization or assumes a new role;

77 on a regular basis to maintain individual competence and skill; and,
77 in response to changes such as laws, regulations, policies, and processes.

3.6.7 Develop, monitor, and test business continuity and disaster

recovery plans

Business continuity plans and disaster recovery plans provide guidance and
instructions to designated individuals during and after an emergency event. By

HR CERTIFICATION INSTITUTE 127

creating a detailed action plan in advance of an emergency, an organization
strengthens its resilience by creating a framework to:

77 respond to emergency events;

77 reestablish critical business functions;
77 minimize financial risk and loss; and
77 communicate with internal and external stakeholders.
A business continuity plan provides details about how to resume or redirect
an organization’s critical business functions and operations, even on a limited
basis. A disaster recovery plan provides guidance about how to resume an
organization’s key functional activities. A disaster recovery plan provides more
detail than a business continuity plan.

An emergency event may or may not be foreseeable but can result in significant
negative impact to an organization’s operations, functions, or systems. Business
continuity plans and disaster recovery plans are critical tools to reduce any
negative impact.

Emergency events may include:

77 natural disasters such as floods, earthquakes, tornadoes, hurricanes, and snow or

ice storms;
77 financial crises such as a stock market crash or currency instability;
77 organization specific disasters such as fire, workforce strikes, loss of power, and
technology system failures; and
77 malicious behavior such as incidents of violent behavior and cybercrimes.
To develop a business continuity plan or disaster recovery plan, an organization
should select a team and team leader. The team should include key members of
the workforce and may include representatives from facilities management and
health and safety. Backup or ancillary team members should be identified to fill
specific roles or duties if the primary member is unavailable.

128 A GUIDE TO THE HR BODY OF KNOWLEDGE TM

The purpose of the team is to:

77 define the type of emergency events that may negatively impact operational or
functional activities;
77 determine the potential negative impact an emergency event could have on
business operations including duration and severity; and
77 create the scope of the plan, which is developed for critical business locations
and functions.
A plan may be created for all business locations and functions. The definition of
what is critical may vary by organization. Factors may include organizational size,
location, revenue generated, crucial or non-replicable business activities, fixed
assets, and number of employees.

An effective organizational business continuity and disaster recovery plan should

outline the steps to take:

77 in the event of an emergency event including evaluating the site or function

status, implementing the communication strategy, and providing contact
information for all team members and critical services including utilities, fire,
police, and hospital;
77 in the event of specific emergency events such as evacuating a building and
meeting at a specified location during a fire; and
77 after the emergency event is over.
Questions to consider may include:

77 What is the worst case scenario?

77 Where will employees work if the facility is compromised or employees are
unable to commute?
77 Has data been properly stored and backed up and is it accessible?
77 Is emergency contact information current for every employee?

HR CERTIFICATION INSTITUTE 129

77 Will existing business functions be redistributed to other employees or
locations?
77 How frequently and in what manner will employees, clients, and vendors
receive communications?
Business continuity and disaster recovery plans should be reviewed and updated
as changes occur. Examples of changes may include:

77 business unit or facility location;

77 team members;
77 vendors and their contact information;
77 business activities; and
77 the organization’s critical assets.
Testing a plan provides the opportunity to determine how well it addresses the
risks associated with emergency events. The scope of the test can be limited to a
single component such as the failure of a key fixed asset, a single system affecting
a business process, or be fully comprehensive such as the event affecting an entire
business unit or physical location. Annual testing is usually recommended, however
the frequency of testing activities can vary based on the organizational structure,
function, and needs.

Testing a plan can be performed using various formats, which may include:

77 desk audits;
77 discussions or meetings;
77 computer simulations; and
77 live simulations.
Testing activities and findings should be evaluated, documented, and reviewed
with organizational leadership. Any weaknesses or gaps discovered during testing
should be identified and the plan updated to address these findings.

130 A GUIDE TO THE HR BODY OF KNOWLEDGE TM

3.6.8 Communicate and train the workforce on the business continuity and
disaster recovery plans

An organization’s ability to communicate its business continuity and emergency

response policies and procedures plays an important role in the overall success of
organizational safety programs and minimizes the risk of harm to employees and
physical facilities. The goal of training is to help the employees understand their
specific roles and responsibilities in the event of an emergency.

Available organizational communication delivery tools may include:

77 oral presentations and group meetings;

77 employee memos and newsletters; and
77 email, social media, intranet, or other technology-based delivery platforms.
It is important that employees have the ability to identify who to contact in the
event of an emergency, how information will be communicated to them, and
how they can communicate with an organization. Changes to business continuity
and disaster recovery plans should be reviewed regularly to verify alignment with
organizational needs and with changing external conditions.

An effective business continuity and disaster recovery program should also

incorporate training so that both managers and employees clearly understand
their respective roles in disaster recovery and emergency management
procedures. Managers, supervisors, and employees should also be appropriately
trained in the proper use of personal protective equipment (PPE), emergency
response, and evacuation procedures. Training also may include general life and
safety training activities such as evacuation (fire drill), shelter-in-place (tornado
drill), and lockdown (security drill).

Training may be provided using a variety of methods including:

77 informal training such as employee presentations or group meetings;

77 formal classroom or web-based instruction;

HR CERTIFICATION INSTITUTE 131

77 self-paced or independent study; and
77 live simulations such as role-playing or working through a particular scenario.
Training may be delivered by internal resources, external vendors, or a combination
of the two and should be targeted based on each individual’s specific role and
responsibilities. Training for plan team members should include the types of
situations that trigger an emergency event, a clear definition of responsibilities,
cross training for critical functions, and practice activities.

Training should be conducted at several key intervals:

77 when an individual first joins an organization or assumes a new role;

77 on a regular basis to maintain individual competence and skill; and
77 in response to changes in laws, regulations, policies, and processes.

3.6.9 Develop policies and procedures to direct the appropriate use of

electronic media and hardware

Organizations develop policies and procedures for the use of electronic

media and hardware to set guidelines and expectations for safe, secure, and
appropriate use of an organization’s technology resources and to protect an
organization’s brand or intellectual property.

An organization is responsible for its technology resources and maintains overall

liability for its use. Misuse of an organization’s technology resources can lead
to increased business risks including disclosure of confidential or proprietary
information, compromise of business opportunities or services, and regulatory
penalties or litigation.

When developing such policies, an organization should identify:

77 individuals to be covered by the policy;

77 technology resources owned by an organization;
77 appropriate use of organizational technology resources; and

132 A GUIDE TO THE HR BODY OF KNOWLEDGE TM

77 parameters around the business use of an individual’s own personal asset such
as bring your own device (BYOD).
Individuals covered by these policies may include permanent and contingent
employees, contractors, vendors, or others who use or have access to an
organization’s property, systems, accounts, or other resources. Organizational
technology resources may include:

77 tangible assets such as computers, tablets, phones, network servers, printers,

photocopiers, fax machines, and storage media;
77 electronic assets such as email, social media, voicemail, text messages,
operating systems, software applications, and network and Internet or
intranet use; and
77 intangible assets such as brand, copyrights, patents, and trademarks.
Appropriate use policies should clearly state that an individual’s use of
organizational resources should not interfere with, distract from, or otherwise
negatively impact the performance, productivity, or professional reputation of an
individual, other employees, or the organization. Areas addressed may include:

77 personal use, or the use of an organization’s resources for purposes that

benefit an individual and are neither work related nor beneficial to
an organization;
77 excessive or non-productive use, or the use of an organization’s resources in a
manner or frequency that is beyond normal acceptance such as excessive use
of media streaming that enables individuals to listen to music but consumes
data line capacity and may impact other systems by slowing response and
processing times;
77 inappropriate use, or the use of an organization’s resources that has an
adverse impact on an organization or is contrary to an organization’s
expectations or policies such as spending time on personal social media
platform accounts or making comments that could be considered
discriminatory or harassing.

HR CERTIFICATION INSTITUTE 133

Policies should not restrict the rights of employees according to the National Labor
Relations Act (NLRA). Policies also should provide guidance about how individuals
should raise concerns regarding misuse. An organization should monitor use
of resources and branding, investigate potential misuse, and take appropriate
corrective action if misuse is identified.

3.6.10 Develop and administer internal and external privacy policies

Internal and external privacy and security policies are designed to provide
employees with direction, guidelines, and expectations regarding managing
and protecting the privacy of information. Internal privacy policies govern
activities and provide guidance for managing private information from sources
within an organization. All policies should be reviewed for legal compliance.
Sources of private information within an organization may include internal
computer systems such as financial systems, human resource information (HRIS)
and payroll systems, files, and hard-copy and electronic documents.

An organization’s internal privacy policies may also address its practice of

monitoring employee activities and information in the workplace including
telephone conversations, Internet usage, and emails. External privacy policies
govern activities and provide guidelines for managing the protection of private
information from sources outside of an organization. External sources of private
information may include information gathered from visitors to websites and
submission of information by vendors or clients.

Internal and external privacy policies outline the steps necessary to help the
organization protect the privacy of content, which may include:

77 business information such as trade secrets, proprietary processes, financial

reports, and client lists;
77 client information such as services, pricing, and deliverables; and
77 employee information such as Social Security numbers, dates of birth, medical
information, and leave usage.

134 A GUIDE TO THE HR BODY OF KNOWLEDGE TM

When developing privacy policies, an organization should identify:

77 individuals to be covered by the policy;

77 information requiring additional safeguards pursuant to regulations such as
proprietary information, Protected Health Information (PHI), Protected Personal
Information (PPI), and Personally Identifiable Information (PII) as well as the
tools used to help protect data including logins, system access, passwords,
firewalls, and methods of protecting them;
77 appropriate and inappropriate access and use of private information and the
process for reporting, investigating, implementing corrective actions for, and
disclosing privacy breaches if identified; and
77 employee information and activities that the organization will routinely monitor
in the workplace.

HR CERTIFICATION INSTITUTE 135

Organizational monitoring policies must also comply with applicable federal and
state regulations and laws relating to employee privacy rights. The Electronic
Communications Privacy Act (ECPA) is the primary law regulating workplace
monitoring of wire and electronic communications. Both federal and applicable
state laws prohibit an organization from intentionally intercepting employee oral,
wire, or electronic communications, unless such monitoring complies with the
business purpose exception, which allows an organization to monitor employee
communications for legitimate business reasons. The consent exception allows
an organization to monitor employee communications if the employee has
knowledge of such monitoring and has freely given consent. Failure to comply
with applicable federal and state laws may result in civil and criminal penalties.

136 A GUIDE TO THE HR BODY OF KNOWLEDGE TM

Index arbitration............ 64, 101, 110, 115, 116
attendance...............................106, 114

360-degree feedback.......................80 attrition.........................................47, 68

401(k).......................................41, 95, 96 at-will employment.............61, 110, 112

403(b)........................................... 95, 96 audit.... 48, 73, 86, 92, 96, 103, 119, 130

human resource information background check........... 37, 41, 62, 63

system (HRIS)................ 27, 34, 37, 91 balance sheet approach...................99
absenteeism.................................... 107 bargaining unit................. 102, 118, 119
accidental death & dismemberment base pay.............................. 89, 96, 100
insurance........................................ 95 behavioral observation scale (BOS)....80
accommodation........... 50, 51, 101, 105, benchmark... 29, 42, 57, 93, 94, 100, 104
124, 125 benefit brokers.................................. 92
accounting................................... 24, 27 bereavement..................................... 91
ADA Amendments Act (ADAAA).... 47, board of directors....................... 39, 97
63, 75, 87, 103, 120, 124
bonus.................... 37, 64, 80, 89, 91, 96
administrative burden................ 94, 97
brand.......27, 57, 58, 104, 106, 132, 133
adverse action..................................115
branding....... 23, 57, 58, 59, 85, 86, 134
adverse impact............................... 133
bring your own device (BYOD)....... 133
affirmative action plan...................... 71
budget.............26, 27, 34, 36, 37, 41, 78,
Age Discrimination in Employment 83, 87, 88, 92
Act (ADEA).......... 47, 75, 87, 103, 112
bullying.....................................124, 126
alliances............................................. 28
business acumen.............................. 23
Americans with Disabilities Act
business continuity........ 34, 40, 71, 119,
(ADA)...... 47, 63, 75, 87, 103, 120, 124
120, 127, 128, 129, 130, 131
anti-discrimination laws....... 74, 75, 115
business plan............................... 35, 49
applicant tracking system................44
cafeteria plans...................................99
appropriate use........................132, 133
capital investment............................. 27

HR CERTIFICATION INSTITUTE 137

career centers................................... 79 conflict of interest............................. 39
career development................. 79, 106 conflict resolution....................105, 113
career paths................................ 53, 74 Consolidated Omnibus Budget
casual dress....................................... 95 Reconciliation Act (COBRA)..87, 91, 111
central tendency............................... 81 constructive discharge.............111, 112
Certified Drug Free Workplace....... 63 contractor..................... 55, 71, 103, 133
change management..... 30, 31, 43, 45, control groups................................... 78
82, 87 controls.................................39, 92, 123
closed-shop......................................119 copyright................................... 75, 133
coaching................... 33, 74, 79, 84, 101 core values................ 32, 33, 34, 81, 82
code of conduct................ 39, 109, 110 corporate governance................ 38, 39
cognitive ability................................. 84 corporate social responsibility......... 26
collective bargaining agreement corrective action.. 34, 72, 109, 134, 135
.................. 101, 107, 113, 116, 117, 118 cost/benefit analysis............. 35, 36, 92
communication channel................... 31 cost of hire................................... 56, 57
communication plan..... 30, 33, 70, 108 cost of living adjustment................ 100
compensation and benefits.......32, 34, cost per hire...................................... 29
36, 37, 44, 85, 86, 87, 91, 92, 96, 97,
counter offer..................................... 61
99, 100, 102
critical incident............................ 51, 80
compensation committee................ 97
critical roles..................................67, 68
competency gaps................. 26, 49, 53
cross training................................... 132
competitive advantage........ 24, 25, 30,
cultural attributes.............................. 58
31, 49, 83
cultural fit........................................... 59
competitor............ 24, 25, 42, 61, 69, 94
culture.......23, 30, 32, 33, 39, 43, 44, 47,
compliance officer...................103, 113
55, 57, 58, 65, 66, 67, 69, 77, 81, 85,
concerted activity..... 102, 115, 118, 119
100, 105, 108
confidentiality...................... 90, 92, 120
dashboards........................................ 57

138 A GUIDE TO THE HR BODY OF KNOWLEDGE TM

data breach..................................... 120 Drug-Free Workplace Act (DFWA)....120
data compromise.............................. 73 drug screen................................. 62, 63
data security.............................. 45, 120 due diligence........................ 43, 44, 62
Davis-Bacon Act................................ 87 efficiency................................29, 31, 45
deferred compensation.................... 98 Electronic Communications Privacy
demand analysis............................... 50 Act (ECPA)................................... 136
demographics............32, 48, 49, 54, 72 emergency preparedness.............. 120
demotion................................... 91, 105 emergency response plan............. 126
dental insurance................................ 95 employee and labor relations....32, 34,
36, 37, 44, 100, 102, 103
Department of Labor (DOL)... 114, 115
employee assistance program.........66,
dependent.....................62, 94, 97, 100
95, 126
destination management services... 100
employee engagement........ 29, 31, 33,
development activities....48, 73, 74, 75
58, 59, 67, 80, 83, 90, 96, 102, 105,
disability.............................. 63, 75, 125 106, 107, 122, 124
disaster recovery plan.......40, 120, 127, employee feedback........................ 100
128, 129, 130, 131
employee handbook.. 44, 107, 113, 116
discipline policy.............................. 109
employee morale...........31, 35, 83, 105
discrimination.............. 47, 109, 110, 115
Employee Polygraph Protection Act
disparate impact......55, 60, 70, 75, 110 (EPPA)........................................... 103
disparate treatment.........................112 employee recognition.............. 91, 105
dispute resolution............ 102, 110, 113 employee relations............74, 102, 105,
diversification.................................... 26 106, 107, 116
diversity.......... 33, 55, 66, 67, 71, 72, 73, employee relations programs........100,
83, 105, 106, 108 105, 106, 107
domestic partners............................ 94 employee retention...............44, 67, 94
downsizing................................... 48, 49

HR CERTIFICATION INSTITUTE 139

Employee Retirement Income factor comparison............................. 88
Security Act (ERISA)...................... 87 Fair Credit Reporting Act (FCRA)....63,
employee self-service.......................44 103
employer value proposition............. 58 fair disclosure...................................110
employment agreement............ 49, 64, Fair Labor Standards Act (FLSA).76, 87
110, 113 fair trade............................................ 25
employment laws..... 24, 40, 43, 49, 116 Family and Medical Leave Act (FMLA)
employment offer............61, 62, 63, 93 ................................................. 87, 124
employment terms..........................117 Family Medical Leave Act (FMLA)
engagement......... 44, 53, 67, 74, 85, 96, ...............................................103, 115
100, 107 Federal Unemployment Tax Act
Equal Employment Opportunity (FUTA)............................................. 91
Commission (EEOC).48, 63, 114, 115 fiduciary....................................... 39, 86
equalization.......................................99 finance......................................... 24, 27
Equal Pay Act.................................... 87 financial accounting.........................110
equity....................64, 85, 88, 95, 97, 98 flexible schedules................. 66, 89, 95
ergonomic....................................... 122 flexible spending account.... 91, 92, 95
escalation process...........................113 focus groups...... 51, 59, 76, 82, 96, 104
essential job functions.................51, 52 forced distribution...................... 80, 82
ethical behaviors......................... 32, 39 foreign national.................................99
ethics..................... 32, 39, 109, 110, 113 fraud..................................................119
executive compensation.............97, 98 future costs........................................ 35
executive orders............................... 48 gap analysis....................................... 50
exempt..................................65, 75, 115 Genetic Information
exit interview........ 59, 66, 67, 68, 69, 93, Nondiscrimination Act (GINA)
107, 112 ................................................ 75, 103
expatriate.................................. 99, 100 global mobility..................................44

140 A GUIDE TO THE HR BODY OF KNOWLEDGE TM

greencircled...................................... 88 I-9........................................... 62, 63, 73
grievance..... 32, 101, 102, 105, 107, 110, illegal subjects.................................119
113, 115, 116
immigration....................................... 63
halo effect......................................... 81
Immigration and Nationality Act (INA)
harassment................109, 115, 124, 126 ...................................................... 103
hazard................ 119, 121, 122, 123, 127 Immigration Reform and Control
health care premiums....................... 96 Act (IRCA).................................... 103
health insurance...............37, 94, 95, 97 implied contract....................... 110, 113
Health Insurance Portability and incentive pay..................................... 91
Accountability Act (HIPAA) inclusion................................66, 67, 106
......................................... 87, 103, 120
individual development plans.......... 73
health reimbursement account........ 95
information technology........ 24, 26, 27
health savings account..................... 95
injury and illness prevention
high performing................................ 79 program........................ 122, 123, 124
high potential................... 59, 74, 79, 80 Instructional System Design............ 77
holiday......................................... 66, 91 intellectual property......25, 64, 74, 132
home leave...................................... 100 interview.................... 51, 53, 60, 65, 80
horn effect......................................... 81 interview bias.................................... 60
host country.............................. 99, 100 investigations.............................86, 115
hourly........................................... 75, 91 involuntary termination... 70, 71, 110, 112
housing or living quarters allowances IRA...................................................... 95
...................................................... 100
job analysis.................44, 50, 51, 52, 61
human capital.......26, 27, 30, 34, 40, 49,
job classification................................ 88
54, 57
job competencies........................51, 52
human resource management..............
job criteria................................... 52, 53
23, 24, 25, 26, 27, 28, 30, 32, 34, 35,
36, 37, 39, 40, 42, 46, 48, 49, 54, 66, job description......... 44, 50, 51, 52, 114
71, 87, 97, 114 job design......................................... 26

HR CERTIFICATION INSTITUTE 141

job evaluation.............................. 62, 88 market compensation ratio.............. 57
job market....................................59, 72 marketing................... 24, 27, 57, 58, 80
job qualifications............................... 52 market share................................ 25, 84
job ranking........................................ 88 McNamara-O’Hara Service Contract
job rotation.................................79, 123 Act.................................................. 87
jury duty............................................. 91 mediation.........................................115
key performance indicators......27, 29, 35 mentoring programs........................ 79
knowledge, skills, abilities, and other mergers and acquisitions................. 43
characteristics (KSAOs) merit increases............................ 81, 89
...................49, 50, 60, 65, 83, 84, 121 metrics................. 23, 24, 25, 27, 29, 34,
labor contract.............................55, 117 35, 40, 42, 43, 49, 50, 57, 66, 67, 68,
labor market.................... 25, 49, 53, 54 76, 77, 78, 84, 93, 100, 106, 107
leadership development...... 34, 74, 79 military leave..................................... 91
learning management system... 44, 77 minority applicants........................... 72
learning styles................................... 77 mission..... 23, 32, 46, 58, 65, 66, 81, 83,
legal...........24, 25, 27, 34, 37, 38, 47, 48, 85, 93
54, 61, 62, 71, 74, 75, 86, 98, 112, 122, mobility services....................... 99, 100
125, 134 motivation................................... 32, 44
legally defensible...........52, 61, 80, 108 multi-rater assessments................... 84
liability.....70, 99, 119, 120, 125, 126, 132 National Labor Relations Act
life insurance............................... 66, 95 (NLRA)............................103, 117, 134
litigation... 40, 44, 73, 101, 110, 111, 132 National Labor Relations Board
location premiums.......................... 100 (NLRB)............................ 114, 115, 117

long term care insurance................. 95 needs analysis............................77, 121

long-term incentives................... 85, 97 needs assessment......31, 74, 76, 78, 87,

92, 93
management by objectives.............80
negligent hiring................................. 62
mandatory subjects.........................118

142 A GUIDE TO THE HR BODY OF KNOWLEDGE TM

negotiation..................... 61, 64, 99, 101 outplacement services............... 36, 70
non-compete............................ 64, 120 outsource......................... 41, 42, 91, 92
non-disclosure agreement....44, 64, 120 outsourcing.... 36, 41, 42, 43, 47, 50, 92
non-exempt..........................65, 75, 115 overtime.................................75, 89, 91
non-solicitation.................................64 paid time off...... 44, 85, 91, 95, 96, 100
non-union.......................... 112, 116, 117 paired comparison............................80
occupational health and safety...... 121 partnerships.................................... 106
occupational injury.......... 122, 123, 124 patents............................................. 133
Occupational Safety and Health Act Patient Protection and Affordable
(OSHA)............................75, 120, 122 Care Act (PPACA).................... 93, 94
Occupational Safety and Health pay ranges.........................................44
Administration (OSHA).... 103, 114, 115 payroll....................... 41, 90, 91, 93, 134
off-boarding................................ 68, 70 pay schedule.....................................66
Office of Federal Contract pay structure..................................... 88
Compliance Programs (OFCCP)
penalties................86, 98, 111, 132, 136
....................................48, 71, 114, 115
pension plans....................................44
Older Workers Benefit Protection Act
performance appraisal......... 80, 81, 82
(OWBPA)......................... 87, 103, 112
performance evaluations.......29, 74, 89
ombudsman.....................................113
performance improvement..82, 113, 114
on-boarding..............34, 65, 66, 68, 80
performance management...39, 51, 70,
operations........... 24, 25, 27, 41, 71, 128
71, 73, 74, 81, 82, 85
organizational climate.............104, 114
performance management system
organizational design................. 43, 59
.................................... 34, 82, 84, 105
organizational strategy... 23, 28, 44, 59,
permissive, or voluntary subjects...119
105
personality type assessments.......... 84
organizational structure..... 43, 66, 130
Personally Identifiable Information
orientation.............................40, 65, 66
(PII)................................................ 135

HR CERTIFICATION INSTITUTE 143

personal protective equipment Protected Personal Information (PPI)
...............................................123, 131 ...................................................... 135
pet insurance..................................... 95 publicly traded companies.......92, 110
phantom stock plan.......................... 95 public policy exceptions..................112
piece rate pay................................... 89 qualitative.....................49, 88, 104, 107
point factor........................................ 88 quantitative..................49, 88, 104, 107
policies and procedures.38, 40, 107, 108, rating errors....................................... 81
109, 112, 113, 116, 119, 123, 131, 132 realistic job preview.......................... 65
policy and procedures......................40 reasonable accommodation. see
pre-employment............................... 73 accommodation
Pregnancy Discrimination Act (PDA) recordkeeping............................90, 115
...................................................... 103 record retention.................... 72, 73, 90
pre-paid legal plans.......................... 95 recruiting.......23, 33, 34, 36, 50, 54, 55,
present value..................................... 36 56, 67, 68, 72, 85, 101, 106
privacy.....39, 48, 92, 120, 121, 134, 135, recruitment......51, 55, 57, 61, 62, 65, 92,
136 96, 102
Privacy Act of 1974............................ 48 recruitment sources.......................... 55
productivity...........................29, 31, 32, redcircled........................................... 88
35, 45, 46, 53, 80, 84, 85, 93, 94, 102, reduction in force........................47, 70
106, 107, 122, 124, 133
references.......................................... 62
professional license or certifications
regulatory environment.................... 37
........................................................ 62
Rehabilitation Act........................... 103
profit sharing............................... 64, 95
reliability...................................... 60, 76
progressive discipline..................... 109
relocation................................... 64, 100
promotions.......................... 34, 72, 105
remediation....................................... 71
Protected Health Information (PHI)
repatriation........................................ 83
...................................................... 135
repatriation assistance.................... 100

144 A GUIDE TO THE HR BODY OF KNOWLEDGE TM

request for proposal (RFP)..........41, 45 Sarbanes-Oxley Act of 2002 (SOX)
resignation.................................. 69, 112 ................................... 39, 92, 103, 110
restrictive covenant.......................... 61 scan........................................ 24, 25, 72
résumés................................. 53, 59, 60 scorecards......................................... 57
retaliation.................................. 110, 115 security breaches..................... 119, 127
retention.... 37, 55, 58, 59, 67, 73, 79, 80, selection criteria...........................41, 79
83, 92, 93, 96, 122 selection procedures.............59, 60, 61
retirement plan............... 46, 91, 95, 98 selection process.............48, 59, 62, 69
return on investment....... 24, 27, 41, 45, seniority................................. 46, 89, 95
77, 90, 100 service awards................................... 37
return-to-work................................. 124 service centers............................ 42, 43
rewards.....................23, 34, 39, 89, 105 Service Organization Control (SOC)....92
reward system................................... 31 severance..............................44, 70, 112
right-size............................................ 47 skip level meetings......................... 104
right-to-work............................. 118, 119 social media.....33, 56, 59, 64, 102, 104,
risk management...... 32, 34, 36, 37, 40, 127, 131, 133
44, 119, 123, 125, 126 Social Security............................. 91, 93
root cause........................... 76, 107, 121 Social Security Numbers.... 73, 90, 134
Roth options...................................... 95 sourcing....................................... 53, 59
safe harbors....................................... 86 staffing levels.................................... 26
safety........ 29, 34, 37, 40, 63, 66, 74, 75, stakeholders........ 25, 27, 30, 38, 42, 43,
109, 119, 120, 121, 122, 125, 126, 128 70, 78, 81, 82, 101, 128
safety programs....................... 121, 131 stock options............................... 44, 85
safety record..................................... 29 strategic plan....... 24, 26, 31, 32, 35, 37,
safety standards...............................115 50, 53, 99
salary range................................. 59, 88 stretch assignments.......................... 79
sales................................................... 24 structured interviews........................ 60

HR CERTIFICATION INSTITUTE 145

substance abuse............................. 126 total rewards......... 67, 85, 88, 89, 96, 97
succession planning.........23, 47, 50, 55, trademarks...................................... 133
67, 68 training and development.. 32, 34, 36,
successor candidates........... 53, 68, 79 37, 44, 54, 75
supplemental life or retiree health transitional duty program.......124, 125
insurance........................................ 95 trends........ 24, 25, 32, 46, 53, 54, 57, 59,
supply analysis.................................. 50 71, 93
survey....................................59, 78, 107 turnover..... 29, 32, 34, 49, 57, 59, 67, 68,
surveys...... 54, 66, 67, 69, 82, 88, 93, 96, 69, 92, 93, 106, 107
100, 104, 105 unfair labor practice................ 115, 118
suspensions..................................... 109 Uniformed Services Employment
talent management........ 23, 46, 53, 69, and Reemployment Rights Act
73, 74, 79, 80 (USERRA)...........................48, 87, 103
talent management system.............44 unions.... 28, 101, 113, 114, 115, 117, 119
talent selection..................... 39, 52, 53 United States Citizenship and
Immigration Services (USCIS)....... 63
tax assistance.................................. 100
unpaid time off........................... 85, 91
tax incentives.................................... 25
unstructured interviews.................... 60
termination..... 44, 69, 70, 71, 72, 90, 91,
101, 110, 112, 113 vacation................................. 91, 95, 98
terminations...................................... 69 validity................................................ 60
theft.......................62, 90, 109, 119, 126 value proposition.................. 25, 58, 97
third party vendor................... 104, 123 values.............23, 33, 36, 44, 58, 65, 66
time to fill..................................... 56, 57 variable pay................................. 85, 89
time-to-fill..........................................80 vendors......28, 41, 54, 92, 125, 127, 130,
132, 133, 134
Title VII of the Civil Rights Act
of 1964..........................47, 75, 87, 103 vesting schedule............................... 98
totalization.........................................99

146 A GUIDE TO THE HR BODY OF KNOWLEDGE TM

Vietnam Era Veterans Readjustment whistleblower.............................39, 110
Assistance Act (VEVRAA) Worker Adjustment and Retraining
.........................................48, 103, 115 Notification Act (WARN)
violence.............. 62, 109, 120, 123, 126 ............................ 48, 70, 103, 111, 112
visa............................................... 62, 63 workers’ compensation........ 36, 37, 63,
vision........ 23, 32, 46, 58, 65, 66, 81, 83, 122, 124
85, 93 workforce analysis....................... 55, 79
vision insurance................................. 95 workforce competencies.................. 76
voluntary termination..................69, 71 workforce planning... 23, 46, 49, 50, 57
wages....................64, 116, 117, 118, 124 workforce planning and employment
wage statement................................ 90 ...........................32, 34, 36, 37, 46, 47
Walsh-Healy Public Contracts Act... 87 workforce reduction....................... 102
warnings.......................................... 109 work-life balance.............. 67, 69, 83, 85
wellness plans................................... 95 yield ratios................................... 56, 59

HR CERTIFICATION INSTITUTE 147

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