Your previous contributions addressing a variety of important topics outlined in all previous assignments for this course are deemed essential in supporting the business’ overall organizational structure and competitive advantage strategy. It is now time to consider developing your own HR department team to ensure they have the requisite skills and competencies necessary to perform at high levels over time. Effective and motivated HR business partners (HRBP) will be the key to translating HR and business strategy into action. The Society for Human Resource Management (SHRM) Body of Competency and Knowledge (BoCK) can be an invaluable resource to help develop and certify HR professionals. You must now explain to the management team the components of this model and how it can be leveraged to achieve operational success for the HR department. A 1-hour meeting has been scheduled and the CEO will be in attendance.

Create a 20-slide minimum PowerPoint presentation in which you:

Include cover, presentation agenda, conclusion, and reference list slides, all of which may count toward total slide count.

Provide a slide with an overview on the importance of having a highly developed staff of HR business partners. Be clear with your position. HINT: http://www.scottmadden.com/wp-content/uploads/userFiles/misc/8d0d88c7547b6e2b8f6f6fcba6a9d6b3

Provide 1-4 slides introducing the SHRM BoCK model and its components. Be sure to highlight each of the areas of the model. NOTE: It is highly recommended to insert an image of the actual SHRM BoCK model into the presentation.

Include in the remaining slides the following required presentation information:

• Provide a minimum of three (3) to four (4) bullet points (more if needed) of information or discussion describing specifics on the SHRM-BoCK’s “Behavioral Competencies”
• Provide a minimum of three (3) to four (4) bullet points (more if needed) of information or discussion describing specifics on the SHRM-BoCK’s “HR Expertise; Domains 1 & 2”
• Provide a minimum of three (3) to four (4) bullet points (more if needed) of information or discussion describing specifics on the SHRM-BoCK’s “HR Expertise: Domains 3”
• Provide a minimum of three (3) to four (4) bullet points (more if needed) of information or discussion describing specifics on certifying your HRBP’s.

5. Use at least four (4) quality academic resources in this assignment. Note: You may only use the textbook for this course, HR textbooks from other HR courses, or journal articles specifically about HR management. You may also use any of the HR certification references listed in the student guide.

Your assignment must follow these formatting requirements:

• Select any one of three professional PowerPoint templates provided by the instructor and located in the course information section (Required). Not using any required template will result in 5 deducted points.
• Have headings for each major section that has the same font and size throughout the presentation. Font preference is Times New Roman and size at least 24 pt and no more than 28 pt.
• Bullet information aligned neatly and properly using the same font as heading and at least 16 pt and no more than 20 pt. for text.
• Images may be used but must be professional and relevant to the topic. The source(s) of all images must be credited with both citation and reference. Check with your professor for any additional instructions.
• Include throughout presentation citations and references for all information received from other sources.
• All bullet point information must be descriptive and have a minimum of 3-4 full sentences. Presentation notes are not required as long as requirements for bullet points are met.

The specific course outcomes associated with this assignment are:

• Defend the importance of having a highly-developed staff of HR business partners
• Convince stakeholders of the value in using the SHRM BoCK model to achieve HR operational success.

TheSHRM Body

of Competency

and Knowledge™

This document describes the SHRM Body of Competency and Knowledge™
(SHRM BoCK™) which forms the basis for the SHRM Certified Professional

(SHRM-CP™) and SHRM Senior Certified Professional (SHRM-SCP™) certifications.

THE SHRM BODY OF COMPETENCY AND KNOWLEDGE TABLE OF CONTENTS

Introduction to the SHRM Body of Competency and Knowledge ……………………………………………………….. 1
Figure 1: The SHRM Body of Competency and Knowledge …………………………………………………..2
Development of the SHRM BoCK ………………………………………………………………………………………………3
Figure 2: SHRM Competency Model Development …………………………………………………………………………. 3
Figure 3: Knowledge Specification Process ……………………………………………………………………………………… 3
What Are Competencies?……………………………………………………………………………………………………………4
Figure 4: Competency Definitions ……………………………………………………………………………………………………… 4
Organization of the SHRM BoCK Document ……………………………………………………………………………….5

Section 1: Behavioral Competencies ………………………………………………………………………………………………….6
Behavioral Competency #1: Leadership & Navigation ……………………………………………………………………. 7
Behavioral Competency #2: Ethical Practice ………………………………………………………………………………….8
Behavioral Competency #3: Business Acumen ……………………………………………………………………………….9
Behavioral Competency #4: Relationship Management …………………………………………………………………. 11
Behavioral Competency #5: Consultation ……………………………………………………………………………………12
Behavioral Competency #6: Critical Evaluation ……………………………………………………………………………13
Behavioral Competency #7: Global & Cultural Effectiveness ………………………………………………………….14
Behavioral Competency #8: Communication ……………………………………………………………………………….15

Section 2: HR Expertise (HR Knowledge) ………………………………………………………………………………………….16
What Are HR Functional Areas of Knowledge? …………………………………………………………………………….16
Figure 5: Knowledge Domains and HR Functional Areas ………………………………………………………………. 17
DOMAIN 1: People ……………………………………………………………………………………………………………….18
Functional Area #1: Talent Acquisition & Retention …………………………………………………………..18
Functional Area #2: Employee Engagement ……………………………………………………………………..19
Functional Area #3: Learning & Development ………………………………………………………………….. 21
Functional Area #4: Total Rewards ………………………………………………………………………………….22
DOMAIN 2: Organization ……………………………………………………………………………………………………….23
Functional Area #5: Structure of the HR Function …………………………………………………………….23
Functional Area #6: Organizational Effectiveness & Development ………………………………………..24
Functional Area #7: Workforce Management …………………………………………………………………….25
Functional Area #8: Employee Relations …………………………………………………………………………..26
Functional Area #9: Technology & Data …………………………………………………………………………..28
DOMAIN 3: Workplace …………………………………………………………………………………………………………..29
Functional Area #10: HR in the Global Context ………………………………………………………………..29
Functional Area #11: Diversity & Inclusion ……………………………………………………………………. 30
Functional Area #12: Risk Management ………………………………………………………………………….. 31
Functional Area #13: Corporate Social Responsibility …………………………………………………………33
Functional Area #14: U.S. Employment Law & Regulations ………………………………………………..35
DOMAIN 4: Strategy …………………………………………………………………………………………………………….. 37
Functional Area #15:

Business & HR Strategy

………………………………………………………………….. 37

Section 3: Exam Overview ……………………………………………………………………………………………………………….39
Figure 6: Score Weighting for Each Domain in the Certification Exams ………………………………………. 39

References……….. …………………………………………………………………………………………………………………………….40

Additional Resources …………………………………………………………………………………………………………………….. 41

THE SHRM BODY OF COMPETENCY AND KNOWLEDGE 1

THE SHRM BODY OF COMPETENCY AND KNOWLEDGE

Introduction to the SHRM Body of
Competency and Knowledge™

For more than sixty-five years, the Society for Human
Resource Management (SHRM) has served the human
resource profession. HR professionals worldwide look
to SHRM for comprehensive resources to help them
function effectively at their jobs, develop their careers,
and partner strategically with employers.

SHRM also works to advance the HR profession
as a whole, ensuring that as business evolves, HR
evolves to meet business needs. Increasingly, business
understands that effective people management is a
strategic imperative. As a result, employers expect
that HR professionals will demonstrate, in addition
to a thorough knowledge of HR concepts and
requirements, the behavioral competencies required
to effectively apply that knowledge in the modern
workplace in support of organizational goals.

In 2011, SHRM began years of extensive research
involving thousands of HR professionals to develop the
SHRM Competency Model, which identifies eight key
Behavioral Competencies: Ethical Practice, Leadership
& Navigation, Business Acumen, Relationship
Management, Communication, Consultation, Critical
Evaluation, and Global & Cultural Effectiveness
and one Technical Competency: HR Expertise (HR
Knowledge) that are the foundation of successful HR
practice. The SHRM Competency Model provides
HR professionals with a comprehensive roadmap for
developing the capabilities they need to advance their
careers and improve their effectiveness in the workplace.

The SHRM Competency Model is fundamental
to SHRM’s two new certifications, the SHRM
Certified Professional (SHRM-CP™) for early-career
practitioners, and the SHRM Senior Certified
Professional (SHRM-SCP™) for senior-level
practitioners. SHRM is launching these new credentials
to further two goals: for HR professionals, to reaffirm
the importance of acquiring both the competencies and
knowledge essential for successful job performance;

and for employers, to provide reliable indicators of
proficiency in these critical dual aspects of modern HR
practice.

SHRM regards the SHRM-CP and SHRM-SCP as
the new standard in certification for the HR profession.
By incorporating key HR competencies into the
SHRM-CP and SHRM-SCP, SHRM is enhancing
the relevance of the new certifications. SHRM’s
new credentials demonstrate to the global business
community that the credential holder has strong
capabilities in both aspects of HR practice—
competency and knowledge—that are required for
effective job performance.

The SHRM Body of Competency and Knowledge™
(SHRM BoCK™), summarized in Figure 1, also draws
heavily on the SHRM Competency Model. The SHRM
BoCK documents the HR Behavioral Competencies
and Knowledge Domains tested on the SHRM-CP
and SHRM-SCP certification exams. The SHRM
BoCK is also the common framework for item writers
developing questions and individuals developing
exam preparation materials. SHRM operates exam
development and study material development as
separate, independent functions, and observes a strict
firewall between these activities to protect the integrity
and credibility of the certification exams.

THE SHRM BODY OF COMPETENCY AND KNOWLEDGE2

INTRODUCTION TO THE SHRM BODY OF COMPETENCY AND KNOWLEDGE

FIGURE 1: SHRM BODY OF COMPETENCY & KNOWLEDGE (SHRM BoCK)

Successful
Business

Outcomes

Effective
Individual

Performance

■ Behavioral Competencies
■ Technical Competency

Ethical
Practice

Business
Acumen

Communication
Critical

Evaluation

Leadership &
Navigation

Relationship
Management

Consultation

Global
& Cultural

Effectiveness

StrategyOrganizationPeople Workplace

SHRM Body of Competency
& KnowledgeTM

HR Expertise�(HR Knowledge Domains)

• Talent Acquisition
& Retention
• Employee
Engagement
• Learning
& Development
• Total Rewards

• Structure of the
HR Function
• Org. Effectiveness
& Development
• Workforce
Management
• Employee Relations
• Technology & Data

• HR in the
Global Context
• Diversity & Inclusion
• Risk Management
• Corporate Social
Responsibility
• Employment Law
& Regulations*

• Business
& HR Strategy

*Applicable only to examinees testing within the U.S.

HR
Functional
Areas

THE SHRM BODY OF COMPETENCY AND KNOWLEDGE 3

INTRODUCTION TO THE SHRM BODY OF COMPETENCY AND KNOWLEDGE

Development of the SHRM BoCK

The SHRM Competency Model, which provides
the framework for the SHRM BoCK, was developed
using rigorous job analysis methods with the active
engagement of the global HR community (see
Figure 2). SHRM conducted 111 focus groups
involving 1,200 HR practitioners to identify nine
critical competencies necessary for success as an HR
professional. Focus group participants included HR
professionals from 33 countries, representing a diversity
of both personal (e.g., career level, tenure) and
organizational (e.g., sector, industry, size) attributes.

SHRM then confirmed the importance, relevance, and
universality of the SHRM Competency Model through
a content validation survey, which drew responses
from more than 32,000 HR professionals worldwide.
Finally, a series of large-scale multi-organizational
criterion validation studies, involving a highly diverse
sample of more than 1,500 HR professionals and
their supervisors, established that proficiency in
these competencies is closely linked to successful job
performance.

SHRM conducted a three-part knowledge specification
exercise to develop the SHRM BoCK component
identifying the key areas of HR functional knowledge
or HR Expertise (HR Knowledge), the single technical
Competency in the SHRM Competency Model (see
Figure 3).

First, SHRM performed an extensive review of the
existing literature on HR knowledge, including
textbooks, curricula, syllabi, and other educator
resources, to determine the universe of potential
knowledge areas needed by HR professionals. SHRM
also consulted SHRM academic and employer surveys
regarding the basic functional knowledge needed for
participation in the human resources field. SHRM drew
on this research to create a preliminary knowledge
framework for the SHRM-CP and SHRM-SCP
certifications.

SHRM then established a

BoCK Advisory Panel

to validate this framework. This panel included 19
HR and business leaders from various industries
including retail, research, consulting, health care, and
manufacturing. The panel reviewed the proposed
framework for HR technical knowledge for accuracy
and comprehensiveness; defined key responsibility
statements and knowledge topic areas associated with
each Knowledge Domain and Functional Area; and
developed importance rankings and weights for each
Knowledge Domain. After completing these tasks,
a panel sub-group further refined the framework
by incorporating additional Panel feedback. Upon
completion, SHRM adopted the framework as the basis
for the knowledge component of the SHRM BoCK.

FIGURE 3: KNOWLEDGE SPECIFICATION PROCESS

FIGURE 2: DEVELOPMENT OF THE SHRM COMPETENCY MODEL

MODEL DEVELOPMENT

111 focus groups

1,200 HR professionals

REVIEW OF EXISTING
LITERATURE

Textbooks, curricula, syllabi,
other resources

CONTENT VALIDATION

32,000 HR professionals

REFINE LIST OF
KNOWLEDGE AREAS

BoCK Advisory Panel

CRITERION VALIDATION

1,500 HR professionals and
their supervisors

TECHNICAL REVIEW

BoCK Advisory Panel

THE SHRM BODY OF COMPETENCY AND KNOWLEDGE4

INTRODUCTION TO THE SHRM BODY OF COMPETENCY AND KNOWLEDGE

What Are Competencies?

A competency is a cluster of highly interrelated
attributes, including knowledge, skills, and abilities
(KSAs) that give rise to the behaviors needed to
perform a given job effectively. For example, Critical
Evaluation, one of the Behavioral Competencies in the
SHRM Competency Model, requires an employee to
have research design knowledge, critical thinking skills,
and deductive reasoning abilities; those KSAs enable
the employee to behave in such a way as to perform a
job involving critical evaluation.

Competencies can be either technical or behavioral.
Technical competencies reflect the knowledge required
to perform a specific role. Behavioral Competencies
describe the KSAs that facilitate the application of

technical knowledge to job-related behavior. In other
words, technical competencies reflect what knowledge
HR professionals apply to their jobs, and Behavioral
Competencies reflect how they apply this knowledge.

A competency model is a set of competencies that
collectively defines the requirements for effective
performance in a specific job, profession, or
organization. There are eight Behavioral Competencies
and one Technical Competency, HR Expertise (HR
Knowledge) in the SHRM Competency Model, which
forms the foundation of the SHRM BoCK. Figure 4
provides an overview of these nine Competencies.

FIGURE 4: COMPETENCY DEFINITIONS

COMPETENCY DEFINITION

Leadership & Navigation The ability to direct and contribute to initiatives and processes within the organization.

Ethical Practice
The ability to integrate core values, integrity, and accountability throughout all
organizational and business practices.

Business Acumen
The ability to understand and apply information with which to contribute to the
organization’s strategic plan.

Relationship Management The ability to manage interactions to provide service and to support the organization.

Consultation The ability to provide guidance to organizational stakeholders.

Critical Evaluation
The ability to interpret information with which to make business decisions and
recommendations.

Global & Cultural Effectiveness The ability to value and consider the perspectives and backgrounds of all parties.

Communication The ability to effectively exchange information with stakeholders.

HR Expertise (HR Knowledge)
The knowledge of principles, practices, and functions of effective human resource
management.

THE SHRM BODY OF COMPETENCY AND KNOWLEDGE 5

INTRODUCTION TO THE SHRM BODY OF COMPETENCY AND KNOWLEDGE

Organization of the SHRM BoCK Document

The HR competencies and knowledge that will be
assessed on the SHRM-CP and SHRM-SCP exams are
detailed in the SHRM BoCK, which consists of the
following three sections:

Section 1 – Behavioral Competencies:

This section describes how HR professionals utilize
the eight Behavioral Competencies to perform
effectively in the workplace. Each Competency
includes a definition; a broad summary of the primary
actions associated with that Competency; and key
behaviors indicative of proficiency in that Competency.
The section identifies behaviors relevant to all HR
professionals, and those relevant only to advanced HR
professionals.

Please note that some of the key behaviors relevant to
all HR professionals reflect transactional tasks in which
advanced HR professionals may not be specifically

proficient; nonetheless, advanced HR professionals
should understand the concepts behind these tasks and
their strategic importance. (For example, an advanced
HR professional may not be required to perform the
key behavior/transactional task of daily consultation
with a hiring manager; nevertheless, an advanced HR
professional should be able to ensure that such a key
behavior aligns with the strategic direction of the
organization, and to mentor and develop this behavior
in a junior employee.)

Section 2 – HR Expertise (HR Knowledge):

This section covers the single technical Competency of
HR Expertise (HR Knowledge). Several introductory
paragraphs explain how this Competency is organized
into four broad Knowledge Domains (covering People,
Organization, Workplace, and Strategy), divided
among 15 HR Functional Areas. A subsection on
each Functional Area follows, and includes: (1) a

Definition summarizing the key concepts associated
with the Area; (2) Responsibility Statements relevant
to all HR professionals, and those relevant only to
advanced HR professionals; (3) pertinent illustrative
Sample Applications of Competencies; and (4) key
Knowledge Topics in the Area.

Section 3 – Exam Overview:

This section outlines the SHRM-CP and SHRM-SCP
exams, including the number of questions on each
test, and score weightings assigned to each of the
Competencies and Knowledge Domains.

THE SHRM BODY OF COMPETENCY AND KNOWLEDGE6

THE SHRM BODY OF COMPETENCY AND KNOWLEDGE

Section 1: Behavioral
Competencies

This section of the SHRM BoCK identifies and details the eight Behavioral Competencies that will be tested on
the SHRM-CP and SHRM-SCP exams. Behavioral Competencies describe the KSAs that facilitate the application
of technical knowledge to effective job-related behavior. SHRM’s research indicates that HR professionals who
exhibit advanced levels of proficiency in these Behavioral Competencies are likely to be effective in the workplace.

THE SHRM BODY OF COMPETENCY AND KNOWLEDGE 7

SECTION 1: BEHAVIORAL COMPETENCIES

Behavioral Competency #1: Leadership & Navigation

Definition: Leadership & Navigation is defined as the ability to direct and contribute to initiatives and
processes within the organization.

Effective leadership is associated with numerous
positive employee outcomes (Barling, Christie, &
Hoption, 2011), in such areas as work attitudes (job
satisfaction, organizational commitment) (Burke,
Sims, Lazzara, & Salas, 2007; Judge & Piccolo, 2004),
decreased turnover, and increased job performance
(Barling et al., 2011). HR professionals at every level
can demonstrate proficiency as leaders and navigators.
Early-career professionals can behave in ways consistent
with organizational culture and foster collaboration
with coworkers. Mid- and senior-level HR professionals
can develop strategies to implement HR initiatives and
support others’ initiatives. Executives can establish a
vision for HR initiatives, work to obtain buy-in from
relevant stakeholders, serve as transformational leaders
to implement change, and lead the organization in the
face of adversity. In sum, the Leadership & Navigation
Competency recognizes an important role for HR
professionals by describing needed attributes.

Key behaviors indicative of proficiency in Leadership
& Navigation for all HR professionals include:

• Exhibiting behaviors consistent with and
conforming to organizational culture.

• Fostering collaboration among stakeholders and
team members.

• Understanding the most effective and efficient
ways to accomplish tasks within the parameters of
organizational hierarchy, processes, systems, and
policies.

• Developing solutions to overcome potential
obstacles to successful implementation of initiatives.

• Demonstrating agility and expertise in leading
organizational initiatives or supporting the
initiatives of others.

• Setting the vision for HR initiatives and building
buy-in from internal and external stakeholders.

• Leading the organization through adversity with
resilience and tenacity.

• Promoting consensus among organizational
stakeholders (e.g., business unit leaders, employees,
informal leaders) when proposing new initiatives.

• Serving as a transformational leader for the
organization by implementing change.

Key behaviors indicative of proficiency in Leadership
& Navigation for advanced HR professionals include:

• Leading HR staff in maintaining or changing
organizational culture.

• Working with other executives to design, maintain,
and champion the mission, vision, and strategy of
the organization.

• Identifying the need for and facilitating strategic
organizational change.

• Developing the organizational strategy for
achieving the human capital vision and mission.

• Ensuring alignment between the human capital
vision, mission, and organizational business strategy.

• Serving as the influential voice for HR strategies,
philosophies, and initiatives within the organization.

• Managing risk, opportunities, and gaps in business
strategy.

• Overseeing critical large-scale organizational
changes with the support of business leaders.

• Ensuring appropriate accountability for the
implementation of plans and change initiatives.

• Setting tone for maintaining or changing
organizational culture.

• Championing the HR function and organizational
mission and vision.

• Building buy-in for organizational change with
agility across senior leadership.

THE SHRM BODY OF COMPETENCY AND KNOWLEDGE8

SECTION 1: BEHAVIORAL COMPETENCIES

Behavioral Competency #2: Ethical Practice

Definition: Ethical Practice is defined as the ability to integrate core values, integrity, and accountability
throughout all organizational and business practices.

As it is for all employees, it is important that HR
professionals to be ethical by considering the core
values of their organization and acting with integrity.
Beyond adhering to rigorous ethical standards
themselves, HR professionals are often tasked
with creating ethical HR systems or reinforcing an
organization’s ethical climate. These efforts serve
several purposes. Most notably, implementing a strong
ethical climate can help protect an organization from
adverse employee behavior. Ethical HR systems are
essential to organizations because they are associated
with higher levels of organizational performance (Lado
& Wilson, 1994).

Key behaviors indicative of proficiency in Ethical
Practice for all HR professionals include:

• Maintaining confidentiality.

• Acting with personal, professional, and behavioral
integrity.

• Responding immediately to all reports of unethical
behavior or conflicts of interest.

• Empowering all employees to report unethical
behavior or conflicts of interest without fear of
reprisal.

• Showing consistency between espoused and
enacted values.

• Acknowledging mistakes.

• Driving the corporate ethical environment.

• Applying power or authority appropriately.

• Recognizing one’s personal bias and the tendencies
of others toward bias, and taking measures to
mitigate the influence of bias in business decisions.

• Maintaining appropriate levels of transparency in
organizational practices.

• Ensuring that all stakeholder voices are heard.

• Managing political and social pressures when
making decisions.

Key behaviors indicative of proficiency in Ethical
Practice for advanced HR professionals include:

• Empowering senior leaders to maintain internal
controls and create an ethical environment to
prevent conflicts of interest.

• Maintaining contemporary knowledge of ethics,
laws, standards, legislation, and emerging trends
that may affect organizational HR practice.

• Establishing oneself as a credible and trustworthy
resource to whom employees may voice concerns.

• Challenging other executives and senior leaders
when potential conflicts of interest arise.

• Withstanding politically motivated pressure when
developing strategy.

• Setting the standard as a role model of ethical
behavior by consistently conforming to the highest
ethical standards and practices.

• Balancing organizational success and employee
advocacy when creating strategy.

• Developing HR policies and internal controls
to minimize organizational risk from unethical
practice.

• Creating HR strategy that holds employees
accountable for their actions.

• Making difficult decisions that align with
organizational strategies and values.

• Communicating the vision for an organizational
culture in which espoused and enacted values align.

• Maintaining a culture that requires all employees to
report unethical practices and behavior.

• Aligning all HR practices with ethics, laws, and
standards.

THE SHRM BODY OF COMPETENCY AND KNOWLEDGE 9

SECTION 1: BEHAVIORAL COMPETENCIES

Behavioral Competency #3: Business Acumen

Definition: Business Acumen is defined as the ability to understand and apply information with which to
contribute to the organization’s strategic plan.

HR professionals often serve in a consultative role
for other organizational members and business units,
developing and carrying out HRM practices that support
and are aligned with business strategies and goals. In
other words, successful HR professionals develop HR
systems that positively contribute to organizational
success (Becker & Huselid, 2006).To do this effectively,
HR professionals need a well-developed proficiency in
Business Acumen. This includes understanding business
operations and core functions, how HRM practices
contribute to them, and the organization’s external
environment. It also means recognizing how internal
and external factors interact to influence organizational
performance (e.g., the external competitive environment,
internal personnel resources). Last, it requires being
able to make the case for HR management to other
business professionals—that is, marketing HR within the
organization, showing how it can have a direct impact
on organizational performance.

Key behaviors indicative of proficiency in Business
Acumen for all HR professionals include:

• Understanding the strategic relationship between
effective HRM and core business functions.

• Being capable of understanding the business
operations and functions within the organization.

• Using organizational resources to learn the business
and operational functions.

• Understanding the industry and the business/
competitive environment within which the
organization operates.

• Making the business case for HR management
in terms of efficient and effective organizational
functioning.

• Marketing HR both internally (e.g., return-on-
investment/ROI for HR initiatives) and externally
(e.g., employment branding).

• Understanding organizational metrics and their
correlation to business success.

• Using organizational metrics to make decisions.

• Leveraging technology to solve business problems.

Key behaviors indicative of proficiency in Business
Acumen for advanced HR professionals include:

• Ensuring that the ROIs for all HR initiatives add to
organizational value.

• Assessing risks/SWOT (strengths, weaknesses,
opportunities, and threats) of business initiatives
as they pertain to human capital, ROI, and
shareholder accountability.

• Aligning HR strategy, goals, and objectives to
overall business strategy and objectives.

• Demonstrating fluency in the language of business
administration as used by senior leaders.

• Developing solutions with analysis of impact on
ROI, utility, revenue, profit and loss estimates, and
other business indicators.

• Examining all organizational problems in terms of
integrating HR solutions to maximize ROI, profit,
revenue, and strategic effectiveness.

• Evaluating all proposed business cases for HR
projects and initiatives.

• Benchmarking the competition and other relevant
comparison groups.

• Communicating direction on local and global labor
market and their relation to organizational success.

• Maintaining expert knowledge of business lines
and products/services, as well as the competitive
market.

• Developing HR business strategies to drive key
business results.

• Maintaining expert knowledge of economic factors
and the impact of the economic environment on
industry and organization operations.

• Evaluating critical activities in terms of value added,
impact, and utility derived from a cost-benefit analysis.

• Maintaining expert knowledge of key industry
and organization metrics — that is, ‘knowing the
business.’

THE SHRM BODY OF COMPETENCY AND KNOWLEDGE10

SECTION 1: BEHAVIORAL COMPETENCIES

• Setting HR and business technology strategy to
solve business problems and needs.

• Serving as a strategic contributor to organizational
decision-making regarding fiscal, product/service
lines, operations, human capital, and technological
areas.

• Influencing government policy and proposed
regulations.

• Developing business strategy with top leaders of
the organization.

• Defining strategy for managing talent within the
confines of the labor market.

THE SHRM BODY OF COMPETENCY AND KNOWLEDGE 11

SECTION 1: BEHAVIORAL COMPETENCIES

Behavioral Competency #4: Relationship Management

Definition: Relationship Management is defined as the ability to manage interactions to provide service and to
support the organization.

Because HR professionals regularly interact with
clients and stakeholders, job success is a function of
an HR professional’s abilities to maintain productive
interpersonal relationships and to help others do
the same—to display competency in managing
relationships. Research has documented positive
outcomes associated with productive and healthy
interpersonal relationships in the work environment
(Reich & Hershcovis, 2011). Positive formal
relationships (e.g., between employee and supervisor) are
associated with such beneficial outcomes for employees
as improved feelings of belonging and inclusion in
the workplace (Alvesson & Sveningsson, 2003), more
salary, increased promotions, greater career mobility,
and other rewards (Allen, Eby, Poteet, Lentz, & Lima
2004). Positive informal relationships are associated
with greater job satisfaction, involvement, performance,
team cohesion, and organizational commitment, positive
work atmosphere, and lessened turnover intentions
(Berman, West, & Richter, 2002).

Employees who have better interpersonal relationships
with coworkers and supervisors also may perceive the
organization as more supportive (Wallace, Edwards,
Arnold, Frazier, & Finch, 2009), may be more
committed to the organization, and may experience
increased perceptions of fitting in with the organization
(Kristof-Brown, Zimmerman, & Johnson, 2005).
In sum, healthy interpersonal relationships at an
organization contribute positively to both employee
and organizational success.

Key behaviors indicative of proficiency in Relationship
Management for all HR professionals include:

• Establishing credibility in all interactions.

• Treating all stakeholders with respect and dignity.

• Building engaging relationships with all
organizational stakeholders through trust,
teamwork, and direct communication.

• Demonstrating approachability and openness.

• Ensuring alignment with HR strategy for delivering
services and information to the organization.

• Providing customer service to organizational
stakeholders.

• Promoting successful relationships with stakeholders.

• Managing internal and external relationships in
ways that promote the best interests of all parties.

• Championing the view that organizational
effectiveness benefits all stakeholders.

• Serving as an advocate when appropriate.

• Fostering effective teambuilding among stakeholders.

• Demonstrating the ability to effectively build a
network of contacts at all levels within HR and the
community, internally and externally.

Key behaviors indicative of proficiency in Relationship
Management for advanced HR professionals include:

• Designing strategies for improving performance
metrics for relationship management.

• Networking with and influencing legislative bodies,
union heads, and external HR leaders.

• Championing organizational customer service
strategies and models.

• Negotiating with internal and external stakeholders
to advance the interests of the organization.

• Designing strategies to ensure a strong customer
service culture in the HR function.

• Creating conflict resolution strategies and processes
throughout the organization.

• Overseeing HR decision-making processes to
ensure consistency with HR and business strategy.

• Developing strategic relationships with internal and
external stakeholders.

• Fostering a culture that supports intra-
organizational relationships (e.g., silo-busting).

• Designing strategic opportunities and venues for
building employee networks and relationships.

• Proactively developing relationships with peers,
clients, suppliers, board members, and senior
leaders.

THE SHRM BODY OF COMPETENCY AND KNOWLEDGE12

SECTION 1: BEHAVIORAL COMPETENCIES

Behavioral Competency #5: Consultation

Definition: Consultation is defined as the ability to provide guidance to organizational stakeholders.

HR professionals often act as internal consultants
or experts on human capital issues within their
organizations. In this role, HR professionals can
help business units address such challenging issues
as staffing, training and development, employee
performance, and employee relations (Combs, Liu,
Hall, & Ketchen, 2006). To be a successful human
capital expert, HR professionals must possess requisite
knowledge about HRM practices and have the ability
to guide internal stakeholders. The most effective
HR professionals use a process of engagement and
interaction to translate complicated information
into actionable recommendations for end users.
HR professionals must be able to analyze business
challenges, generate creative solutions, and provide
accurate, timely guidance based on best practices and
research that account for the organization’s unique
internal and external environments.

Key behaviors indicative of proficiency in Consultation
for all HR professionals include:

• Applying creative problem-solving to address
business needs and issues.

• Serving as an in-house expert on workforce and
people management.

• Analyzing specific business challenges involving
the workforce and offering solutions based on best
practices or research.

• Generating specific organizational interventions (e.g.,
change management, culture change, restructuring,
training) to support organizational objectives.

• Developing consultative and coaching skills.

• Guiding employees as to specific career situations.

Key behaviors indicative of proficiency in Consultation
for advanced HR professionals include:

• Creating talent management strategies by utilizing
innovative business solutions that align with and
drive business strategy.

• Listening to business leaders’ challenges.

• Developing visions for critical solutions to
organizational human capital challenges.

• Identifying opportunities to provide HR and
business solutions that maximize ROI for the
organization.

• Using appropriate analytical tools enabling other
leaders to provide input on strategic decisions.

• Identifying creative solutions for the organization
and its business units.

• Supervising HR investigations together with legal
counsel.

• Recognizing excessive HR liabilities and providing
proactive strategic guidance for remediation.

• Coaching executives on people-management issues

• Designing strategic HR and business solutions.

THE SHRM BODY OF COMPETENCY AND KNOWLEDGE 13

SECTION 1: BEHAVIORAL COMPETENCIES

Behavioral Competency #6: Critical Evaluation

Definition: Critical Evaluation is defined as the ability to interpret information with which to make business
decisions and recommendations.

HR can enhance the effectiveness and usefulness of
human capital programs by using appropriate data to
inform their development and monitor their success.
One example of this data is human capital metrics,
which quantify such items as the time to fill a position
and the cost per hire. HR functions that collect and
properly utilize HR metrics to inform HR activity not
only add value to the role of HR in organizations, they
are seen as more reliable strategic partners (Lawler,
Levenson, & Boudreau, 2004). The rise of data-based
HRM practices (such as the increasingly frequent use of

“big data” by HR departments) is clearly evident. HR
professionals are currently being asked to inform their
decisions with data, and this trend is likely to continue
and expand in the coming years.

Key behaviors indicative of proficiency in Critical
Evaluation for all HR professionals include:

• Making sound decisions based on evaluation of
available information.

• Assessing the impact on organizational HRM
functions of changes in the law.

• Transferring knowledge and best practices from
one situation to the next.

• Applying critical thinking to information received
from organizational stakeholders, and evaluating
what can be used for organizational success.

• Gathering critical information.

• Analyzing data with a keen sense for what is useful.

• Analyzing information to identify evidence-based
best practices.

• Delineating a clear set of best practices based on
experience, evidence from industry literature,
published peer-reviewed research, publicly available
web-based information, and other sources.

• Identifying leading indicators of outcomes.

• Analyzing large quantities of information from
research and practice.

Key behaviors indicative of proficiency in Critical
Evaluation for advanced HR professionals include:

• Maintaining expert knowledge in the use of data,
evidence-based research, benchmarks, and HR and
business metrics to make critical decisions.

• Maintaining expert knowledge and ability to
interpret data and make recommendations.

• Making decisions with confidence based on analysis
of available information to drive business success.

• Setting the direction of HR and the organization
through evaluation of risks and economic and
environmental factors.

• Seeking information in a strategic, systematic
manner for use in decision-making.

• Analyzing information necessary for evaluating
and using data and additional information to make
effective decisions.

• Sponsoring initiatives for process improvement
using evidence-based solutions.

• Communicating the impact on organizational
strategy of relevant and important findings from
data analysis.

• Applying findings to build effective and creative
polices within an organizational context.

• Utilizing one’s awareness and experience of
external/environmental factors in decision-making.

• Challenging assumptions and critically examining
all initiatives and programs.

• Providing a strategic view to direct and prioritize
decision-making.

THE SHRM BODY OF COMPETENCY AND KNOWLEDGE14

THE SHRM BODY OF COMPETENCY AND KNOWLEDGE

Behavioral Competency #7: Global & Cultural Effectiveness

Definition: Global & Cultural Effectiveness is defined as the ability to value and to consider the perspectives
and backgrounds of all parties in global business.

Diversity within a team or organization can facilitate
success by fostering creativity, promoting healthy
working relationships, and equipping the organization
with an opportunity to connect with a wider audience
(Jayne & Dipboye, 2004). In light of the proactive
attempts of many organizations to increase the diversity
of their own workforces in the conext of today’s
increasingly global workforce, HR professionals
must be able to effectively and respectfully interact
with colleagues, customers, and clients of varying
backgrounds and cultures.

Key behaviors indicative of proficiency in Global &
Cultural Effectiveness for all HR professionals include:

• Having a strong set of core values while adapting to
particular conditions, situations, and people.

• Maintaining openness to others’ ideas and making
decisions based on experience, data, facts, and
reasoned judgment.

• Demonstrating nonjudgmental respect for others’
perspectives.

• Working effectively with diverse cultures and
populations.

• Conducting business with understanding and
respect for the differences in rules, customs, laws,
regulations, and business operations between one’s
own culture and all cultures.

• Appreciating the commonalities, values, and
individual uniqueness of all human beings.

• Possessing self-awareness and humility, to learn
from others.

• Embracing inclusion.

• Adapting one’s perspectives and behaviors to meet
the cultural context.

• Navigating the differences between commonly
accepted practices and laws when conducting
business in other nations.

• Operating with a global, open mindset while being
sensitive to local cultural issues and needs.

• Operating with a fundamental trust in other human
beings.

• Taking the responsibility to ensure inclusion by
teaching others about the differences and benefits
that multiple cultures bring to the organization.

• Incorporating global business and economic trends
into business decisions.

Key behaviors indicative of proficiency in Global &
Cultural Effectiveness for advanced HR professionals
include:

• Setting the strategy to leverage global competencies
for competitive HR advantages.

• Using a global economic outlook to determine
impacts on the organization’s human capital
strategy.

• Maintaining expert global and cultural knowledge/
experience.

• Maintaining expert knowledge of global economic
trends.

• Understanding global labor markets and associated
legal environments.

• Fostering the organization’s cultural norms.

• Proving the ROI of a diverse workforce.

• Managing contradictory or paradoxical practices,
policies, and cultural norms to ensure cross-cultural
harmony and organizational success.

• Integrating perspectives on cultural differences and
their impact on the success of the organization.

• Setting the vision that defines the strategic
connection between employee diversity and
inclusiveness practices and organizational success.

• Building cross-cultural relationships and
partnerships.

THE SHRM BODY OF COMPETENCY AND KNOWLEDGE 15

THE SHRM BODY OF COMPETENCY AND KNOWLEDGE

Behavioral Competency #8: Communication

Definition: Communication is defined as the ability to effectively exchange information with stakeholders.

Effective communication is one of the building blocks
of personal and career success (Showry & Manasa,
2012). This is particularly true for HR professionals.
HR professionals at junior career levels may need to
field employee grievances, conduct investigations,
and intervene to resolve employee interpersonal
challenges. Senior-level HR professionals are often
required to interact with a variety of stakeholders—to
develop, interpret, and distribute policy and initiative
information to employees, and to collaborate with other
organizational units in addressing business challenges
from a human capital perspective. Especially at senior
and executive career levels, effective communication
is essential for describing the leader’s vision, the
organization’s mission, new initiatives, goal-setting, and
progress. When HR information is communicated well,
employees better understand the purpose and value of
policies and practices. For example, employees whose
managers effectively communicate HR practices and
policies to them perceive the organization’s HRM to be
more effective, which in turn positively affects employee
satisfaction and business unit performance (Den Hartog,
Boon, Verburg, & Croon, 2013).

Key behaviors indicative of proficiency in
Communication for all HR professionals include:

• Providing clear, concise information to others in
verbal, written, electronic, and other communication
formats for public and organizational consumption.

• Listening actively and empathetically to the views
of others.

• Delivering critical information to all stakeholders.

• Seeking further information to clarify ambiguity.

• Providing constructive feedback effectively, treating
it as a developmental opportunity.

• Communicating proactively.

• Ensuring effective communication throughout the
organization.

• Providing proactive communications.

• Demonstrating an understanding of the audience’s
perspective.

• Welcoming the opportunity to discuss competing
points of view.

• Helping others consider new perspectives.

• Leading meetings effectively and efficiently.

• Helping managers communicate on issues other
than HR.

Key behaviors indicative of proficiency in
Communication for advanced HR professionals include:

• Articulating the alignment between organizational
HR initiatives and organizational strategy.

• Communicating the corporate mission and vision
to other stakeholders.

• Creating strategy to develop a culture that fosters
efficient and effective interactions and decision-
making.

• Crafting messages to be delivered to stakeholders
on high-visibility organizational issues.

• Negotiating with stakeholders to reach the best
possible outcomes.

• Soliciting feedback and buy-in from executive-level
stakeholders.

• Developing strategy for organizational
communication systems.

• Delivering strategic messages supporting HR and
business.

• Building support through clear communications.

• Communicating HR vision, practices, and policies
to other stakeholders.

• Comfortably communicating with audiences of all sizes.

THE SHRM BODY OF COMPETENCY AND KNOWLEDGE16

SECTION 2: HR Expertise
(HR Knowledge)

Today’s employers require HR professionals to
demonstrate competency in HR behaviors, as outlined
in Section 1, as well as knowledge of HR topics, which
are outlined here in Section 2. The need for practical
as well as technical expertise is a business reality for the
modern practice of HR that is reflected in the SHRM
BoCK by the Technical Competency HR Expertise
(HR Knowledge). As with the eight Behavioral

competencies in the SHRM Competency Model, this
Competency was developed and validated through
extensive research with HR professionals. This section
is focused on describing the Knowledge Domains and
HR Functional Areas that comprise the HR Expertise
(HR Knowledge) Competency.

What Are HR Functional Areas of Knowledge?

In the SHRM BoCK, HR Expertise (HR Knowledge)
has been grouped by common themes into four broad
Knowledge Domains: People, Organization, Workplace,
and Strategy. These four Domains are associated with
HR Functional Areas of knowledge: the knowledge
required to perform a specific HR activity (e.g., Talent
Acquisition & Retention, Employee Relations).

There are 15 HR Functional Areas of knowledge—
what HR professionals need to know to perform their
job responsibilities. (see Figure 5.) The HR Functional
Area of Business & HR Strategy forms its own
Knowledge Domain of Strategy; the remaining 14 HR
Functional Areas form the remaining three Knowledge
Domains of People, Organization, and Workplace.

This part of the SHRM BoCK outlines the specific
content of each Functional Area listed above. Each
subsection contains a four-part description of the
Functional Area under discussion (all of which will be
tested on the certification exam):

• Definition: The types of activities associated with
the Functional Area, and how they add value to the
organization.

• Responsibility Statements: The specific actions
indicative of proficiency in that Functional Area.
This includes responsibilities applicable to all HR
professionals, and responsibilities applicable only
to advanced HR professionals (six or more years

of experience). While the latter responsibilities
are generally more strategic in nature, advanced
HR professionals should be familiar, at a strategic
level, with the concepts related to all responsibility
statements.

• Sample Application of Competencies: Examples
of the behavioral and technical KSAs that are
relevant to the Functional Area, and are closely
associated with professionals who demonstrate
proficiency in that Area. All Competencies are
relevant to each Functional Area. While every
Functional Area requires the Technical Competency
of HR Expertise (HR Knowledge), effective
practice also requires the application of Behavioral
Competencies. The same Competency may be
required in multiple HR Functional Areas, but will
manifest itself differently in each Area through the
distinctive application of KSAs.

• Knowledge Topics: The information required to
perform the responsibilities in the Functional Area.
The same topic may appear in multiple Areas. (For
example, the knowledge topic “metrics” is listed
in almost every Functional Area.) More specific
topics are relevant only to certain Areas. (For
example, expertise in the Behavioral Competency
of Communication covers knowledge topics as
diverse as “coaching and counseling,” listed in
the Employee Engagement Functional Area, and

“social media usage,” listed in the Corporate Social
Responsibility Functional Area.)

THE SHRM BODY OF COMPETENCY AND KNOWLEDGE 17

SECTION 2: HR EXPERTISE (HR KNOWLEDGE)

FIGURE 5: KNOWLEDGE DOMAINS AND HR FUNCTIONAL AREAS

PEOPLE WORKPLACE

Talent Acquisition & Retention
Employee Engagement
Learning & Development
Total Rewards

HR in the Global Context
Diversity & Inclusion
Risk Management
Corporate Social Responsibility
U.S. Employment Law & Regulations
(applicable only to examinees testing within the U.S.)

ORGANIZATION STRATEGY

Structure of the HR Function
Organizational Effectiveness & Development
Workforce Management
Employee Relations
Technology & Data

Business & HR Strategy

THE SHRM BODY OF COMPETENCY AND KNOWLEDGE18

SECTION 2: HR EXPERTISE (HR KNOWLEDGE)

DOMAIN 1: People

Functional Area #1: Talent Acquisition & Retention

Definition: Talent Acquisition & Retention encompasses the activities involved in building and maintaining a
workforce. HR demonstrates value by developing, implementing, and measuring the individual and organizational
success of activities and programs for sourcing, recruiting, hiring, onboarding, orientation, and retention.

Responsibility Statements:
Key responsibilities for all HR professionals include:

• Identifying and selecting appropriate interview
and selection techniques that best demonstrate a
candidate’s technical skills, organizational fit, and
competency alignment.

• Seeking and utilizing a wide variety of talent
sources to recruit, screen, and evaluate applicants.

• Implementing and utilizing technology to support
effective and efficient approaches to sourcing,
recruitment, evaluation, and selection.

• Conducting effective background investigations.

• Understanding sponsorship and visa requirements
for foreign nationals.

Key responsibilities for advanced HR professionals
include:

• Developing strategies for acquiring and retaining
a high-performing workforce, using internal and
external resources.

• Analyzing staffing levels to make decisions as to
workforce allocation.

• Assessing workforce readiness against organizational
needs.

• Designing job descriptions to meet organizational
resource needs and to attract qualified candidates.

• Establishing an employer value proposition and
employment brand that supports organizational
success.

• Designing and implementing strategies for sourcing,
recruiting, candidate evaluation, and retention.

Sample Application of Competencies:

• Business Acumen—The ability to understand the
organization’s strategy and translate it into a robust
plan that attracts and retains high-performing
individuals.

• Critical Evaluation—The ability to interpret
staffing plans, market data and other external PEST
(political, economic, social, and technological)
data, and make sound business decisions and
recommendations at the initial phases of the
employee lifecycle.

• Consultation—The ability to provide guidance on
planning and structuring the workforce, based on
current and future needs of the organization and
key stakeholders.

Knowledge Topics:

• Employee lifecycle phases
• Employee retention techniques
• Employer value proposition techniques
• Employment branding approaches
• External labor market PEST factors
• External and internal recruitment approaches
• Evaluation techniques
• Formal assessment methods and tools
• Identification of bona fide occupational

qualifications (BFOQs)
• Interviewing techniques
• Job analysis, evaluation, and design of job

descriptions
• Job offer contingencies
• Metrics (e.g., cost per hire, days to fill)
• Recruitment approaches
• Selection approaches
• Sourcing approaches

• Staffing projection approaches

THE SHRM BODY OF COMPETENCY AND KNOWLEDGE 19

SECTION 2: HR EXPERTISE (HR KNOWLEDGE)

Functional Area #2: Employee Engagement

Definition: Employee Engagement solidifies the connection among employee, manager, and the organization’s
mission, vision, values, and goals. HR demonstrates value by understanding and leveraging the employer-
employee relationship from both individual and organizational perspectives, developing effective strategies to
address appropriate expectations for performance and behavior from employees at all levels.

Responsibility Statements:
Key responsibilities for all HR professionals include:

• Developing and implementing employee and
workplace policies.

• Investigating workplace harassment and
misconduct.

• Understanding requests for
workplace accommodations and engaging key
stakeholders to determine appropriate responses.

• Conducting due diligence when consulting on
workplace disputes.

• Designing and implementing workplace policies,
handbooks, and codes of conduct.

• Consulting on satisfactory employee performance
and on approaches to performance management.

• Designing and implementing appreciation and
recognition programs.

• Consulting on important workplace issues with key
stakeholders.

• Managing employee onboarding and assimilation
processes.

• Designing, conducting, and analyzing employee
surveys.

• Consulting with managers on how to supervise
difficult employees, handle disruptive behaviors,
and respond with an appropriate level of corrective
action.

• Participating in the resolution of workplace
disputes.

• Identifying and using appropriate alternative
dispute resolution techniques.

Key responsibilities for advanced HR professionals
include:

• Evaluating and influencing workplace cultures and
norms that allow for collaboration and effectiveness.

• Identifying appropriate conduct and behaviors that
support organization cultural success.

• Establishing strategies to address workplace
retaliation and violence.

• Developing strategies to determine the effectiveness
of performance management systems.

• Applying best practices for workplace flexibility to
improve organizational effectiveness.

• Developing infrastructure to support cultural
norms and values.

Sample Application of Competencies:

• Communication—The ability to ensure effective
communication between the employee and the
organization, using a variety of methods and
approaches.

• Relationship Management—The ability to engage
and retain employees through positive interactions
that support the mission, vision, values, and goals
of the organization.

• Consultation—The ability to effectively provide
guidance and influence decisions that balance
organizational with individual needs.

THE SHRM BODY OF COMPETENCY AND KNOWLEDGE20

SECTION 2: HR EXPERTISE (HR KNOWLEDGE)
Knowledge Topics:

• Alternative dispute resolution techniques

• Analysis of organizational culture and climate
• Coaching and counseling
• Cognitive biases (e.g., halo bias, similar-to-me bias)
• Complaint resolution procedures
• Conflict management theory and approaches
• Disciplinary procedures and approaches
• Employee lifecycle phases
• Employee recordkeeping and retention

• Investigation techniques

• Management of people
• Metrics
• Motivational theories
• Organizational culture influences
• Organizational change management
• Performance management systems
• Principles of effective performance appraisal

techniques (e.g., goal-setting, giving feedback)
• Principles of survey creation, administration, and

evaluation

• Recognition approaches

• Retaliation prevention approaches

• Workplace flexibility

THE SHRM BODY OF COMPETENCY AND KNOWLEDGE 21

SECTION 2: HR EXPERTISE (HR KNOWLEDGE)

Functional Area #3: Learning & Development

Definition: Learning & Development aligns organizational business needs with employees’ competencies,
knowledge, and skills, effectively closing the gap between them. HR demonstrates value by identifying and
creating learning opportunities that increase employee capability and organizational knowledge.

Responsibility Statements:
Key responsibilities for all HR professionals include:

• Developing staff capabilities using state-of-the-art
learning and development strategies.

• Planning for internal or external resources to
deliver appropriate development interventions to
target internal audience.

• Creating a forum of internal social networks for
effective sharing of knowledge among employees.

• Developing programs to promote the transfer of
knowledge to and from experienced and junior
employees.

• Advancing organizational learning and
development, knowledge management, and the
exchange of information about practices and
innovations.

• Consulting and providing resources and processes
to facilitate experiential learning and development.

Key responsibilities for advanced HR professionals
include:

• Consulting on and guiding the identification and
development of critical competencies.

• Designing approaches for resolving competency
deficiencies in current and emerging leaders.

• Creating long-term strategies to develop
organizational talent.

• Creating strategies to ensure the retention of
organizational knowledge.

Sample Application of Competencies:

• Business Acumen—The ability to understand how
measures of organizational success are positively
influenced by the retention of and increase in
individual knowledge, skills, and competencies.

• Critical Evaluation—The ability to analyze
organizational and training needs assessments, so
as to determine the most effective learning and
development solutions supporting achievement of
individual and organizational goals and objectives.

• Relationship Management—The ability to
manage relationships to determine appropriate
learning and development interventions supporting
the achievement of organizational goals and
objectives.

Knowledge Topics:

• Career development techniques
• Career management philosophies
• Change management approaches
• Coaching styles and approaches
• Competency models
• Employee lifecycle phases
• Knowledge-sharing techniques
• Learning evaluation approaches
• Mentoring options
• Metrics
• Organizational intervention design and

implementation approaches
• Leadership development techniques
• Learning theories
• Needs assessment techniques (e.g., organizational,

training)
• Skill and competency development approaches
• Training design and implementation (e.g., ADDIE

model)

• Training and development techniques and solutions

THE SHRM BODY OF COMPETENCY AND KNOWLEDGE22

SECTION 2: HR EXPERTISE (HR KNOWLEDGE)

Functional Area #4: Total Rewards

Definition: Total Rewards encompasses direct and indirect remuneration approaches that employers use to
attract, recognize, and retain workers. HR demonstrates value by designing and administering systems and
programs (e.g., base pay, benefits, incentive pay, leave, perquisites, retirement) that support recruitment and
retention efforts.

Responsibility Statements:
Key responsibilities for all HR professionals include:

• Designing and implementing appropriate pay,
benefit, incentive, and separation/severance
systems and programs.

• Complying with compensation and benefits
practices, laws, and regulations.

• Performing accurate job analyses and evaluations.

• Differentiating between government-mandated,
government-provided, and voluntary benefit
approaches.

Key responsibilities for advanced HR professionals
include:

• Designing organizational compensation and
benefits strategies and plans that align with the
organization’s mission, vision, and values.

• Designing and implementing executive
compensation approaches that directly connect
individual performance to organizational success.

Sample Application of Competencies:

• Business Acumen—The ability to understand
organizational strategy and, in turn, create the best
balance of monetary and non-monetary payment
and rewards offered to employees.

• Critical Evaluation—The ability to interpret
remuneration surveys, market data, and other
external PEST data, in order to make sound
business decisions and recommendations about
the design, delivery, and success of a total rewards
program.

Knowledge Topics:

• Accounting practices and principles
• Benefits (e.g., disability insurance, domestic

partners, education, employee assistance
programs, families, life insurance, retirement plans,
unemployment insurance, wellness programs,
workers’ compensation)

• Employee lifecycle phases
• External labor markets PEST factors
• Fiduciary responsibilities
• Income replacement programs
• Job analysis, job design, job descriptions
• Metrics
• Perquisites
• Pay practices, policies, approaches, systems,

and issues (e.g., base pay, minimum wage
determinations, pay compression, pay equity, pay
increases, pay levels and banding), and special
provisions (e.g., overtime)

• Remuneration data analysis (collecting, analyzing,
making recommendations)

• Time-off plans and approaches (e.g., paid and
unpaid leave, vacation/holiday)

THE SHRM BODY OF COMPETENCY AND KNOWLEDGE 23

SECTION 2: HR EXPERTISE (HR KNOWLEDGE)

DOMAIN 2: Organization

Functional Area #5: Structure of the HR Function

Definition: Structure of the HR Function encompasses the people-related processes, theories, and activities
used to deliver HR services that create and drive organizational effectiveness. HR demonstrates value by
selecting the appropriate delivery model (e.g. Center of Excellence/COE, generalist, shared services) with an
understanding of stakeholder needs and the impact of decisions on the overall workforce.

Responsibility Statements:
Key responsibilities for all HR professionals include:

• Understanding business lines and products/services
(including revenue generation, profitability, and the
competitive market).

• Implementing solutions based on analysis and
understanding of the impact on the organization of
leading and lagging financial, customer, operations,
and learning indicators.

• Designing and implementing the appropriate
servicing model (centralized versus decentralized).

• Demonstrating partnership capabilities with
non-HR business leaders to capitalize on
organizational success or to solve organizational
issues.

• Serving as the HR point-of-service contact for key
stakeholders within a division or group.

• Providing workforce consultation to all levels of
leadership and management.

• Delivering HR services and support that
demonstrate one’s business knowledge and acumen
contributing to organizational success.

• Analyzing data and performance indicators to
ensure the effectiveness of the HR organization.

Key responsibilities for advanced HR professionals
include:

• Supporting the communication, understanding,
and implementation of the organization’s mission,
vision, values, and strategy.

• Designing and implementing the HR operational
structure to ensure efficient and effective delivery
of services.

• Developing appropriate measures and metrics (e.g.,
balanced scorecard) to demonstrate the value of
HR activities in supporting organizational success.

Sample Application of Competencies:

• Business Acumen—The ability to understand
and apply organizational strategy, mission, vision,
and values in developing and implementing an HR
strategy and tactical plan.

• Critical Evaluation—The ability to interpret
workforce and employee information and data to
drive recommendations and decisions concerning
people and business.

• Consultation— The ability to provide balanced
and thoughtful guidance to organizational
stakeholders on matters related to people and
business.

Knowledge Topics:

• Balanced scorecard philosophy

• Centralization versus decentralization

• Defined approaches to roles and functions for
generalists and specialists

• Due diligence methodologies
• HR organizational structure and design
• HR functional integration approaches
• Negotiation and influence techniques
• Stakeholder analysis techniques
• Strategy design and implementation

• Structural model approaches to HR (e.g., Center
of Excellence/COE, HR business partner, shared
services)

THE SHRM BODY OF COMPETENCY AND KNOWLEDGE24

SECTION 2: HR EXPERTISE (HR KNOWLEDGE)

Functional Area #6: Organizational Effectiveness & Development

Definition: Organizational Effectiveness & Development deals with the overall structure and functionality of the
organization — that is, measuring the effectiveness and growth of people and processes from long- and short-
term perspectives, and leading necessary organizational change initiatives. HR demonstrates value by aligning
the organization’s vision, mission, and goals with day-to-day operational activities, including organizational
design, development, performance measures, and standards.

Responsibility Statements:
Key responsibilities for all HR professionals include:

• Ensuring that workforce activities are accurately
reflected in job descriptions and other key
documents (e.g., applicant tracking systems, job
postings, performance management systems).

• Creating and monitoring metrics to assess
organizational development and effectiveness

• Recognizing and eliminating barriers to
organizational development and effectiveness.

• Planning for internal or external resources to
deliver appropriate short-term development
interventions and activities.

Key responsibilities for advanced HR professionals
include:

• Consulting on, planning, and designing
organizational structures that align with the
effective delivery of activities in support of the
achievement of organizational strategy.

• Assessing organizational needs to identify critical
competencies for operational effectiveness.

• Consulting on, developing, and designing
performance standards and assessment metrics.

Sample Application of Competencies:

• Business Acumen—The ability to understand
organizational strategies and apply this knowledge
to create a plan for effective growth.

• Critical Evaluation—The ability to interpret
organizational information and performance data
to ensure the implementation of effective and
efficient business solutions.

• Relationship Management—The ability to
manage interactions with key stakeholders and
provide appropriate recommendations and
solutions based on in-depth organizational
knowledge and expertise.

Knowledge Topics:

• Business solution and performance analysis
• Change and culture metrics
• Change management theories and approaches
• Consulting techniques
• Design approaches for a motivational work

environment

• Design approaches for work activity
• Group dynamics
• How employees learn culture
• How organizational cultures are created
• Influence techniques
• Knowledge management approaches (e.g.,

organizational storytelling techniques)
• Labor supply and demand analysis
• Motivational theories
• Organizational behavior theories
• Organizational culture versus national culture
• Organizational design structures and approaches

(e.g., customer, functional, geographic, matrix,
program)

• Organizational learning approaches
• Organizational needs analysis techniques
• Performance management theories, structures, and

approaches
• Project management approaches
• Roles and responsibilities (e.g., chain of command,

span of control)

• Strategic-tactical alignment

• Types of cultures (e.g., authoritarian, dominant
cultures, mechanistic, participative, subcultures)

• Understanding individual differences and
perceptions

THE SHRM BODY OF COMPETENCY AND KNOWLEDGE 25

SECTION 2: HR EXPERTISE (HR KNOWLEDGE)

Functional Area #7: Workforce Management

Definition: Workforce Management enables the organization to meet its talent needs and close critical skill
gaps using data-driven processes (e.g., workforce planning, succession planning) that inform HR initiatives. HR
demonstrates value by facilitating financial and operational growth, continuity, or stability.

Responsibility Statements:
Key responsibilities for all HR professionals include:

• Implementing approaches (e.g., “buy or build”)
to ensure that appropriate workforce levels exist to
deliver on organizational goals and objectives.

• Planning short-term strategies to build individual
skills, knowledge, abilities, and competencies that
support organizational bench strength.

• Implementing strategies for restructuring the
organization (e.g., acquisition, downsizing).

• Implementing succession plans for optimizing
organizational growth and effectiveness.

• Designing and implementing programs and
solutions for management and retention of
organizational knowledge.

Key responsibilities for advanced HR professionals
include:

• Consulting on and initiating strategies to create a
robust workforce plan that addresses current and
future organizational needs, including workforce
size and structure.

• Initiating and designing strategies (e.g., leadership
development, succession planning, training) to
address organizational gaps between current and
future employees’ competencies, knowledge, skills,
and abilities.

• Designing and implementing strategies to retain
organizational knowledge.

• Designing strategies for restructuring the
organization (e.g., acquisition, downsizing).

Sample Application of Competencies:

• Business Acumen—The ability to understand the
organization’s evolutionary stage (introduction,
growth, maturity, or decline) and ensure that the
strategic plan addresses the unique needs of each
stage, in terms of size and structure.

• Critical Evaluation—The ability to interpret
growth or retraction patterns and data, in order
to make decisions and recommendations as to
organizational size, structure, and reporting
relationships, as well as the acquisition (internally
developed or externally obtained) of competencies,
knowledge, skills, and abilities.

• Relationship Management—The ability to
manage interactions with key stakeholders
and provide appropriate recommendations
and solutions that address current and future
organizational gaps.

Knowledge Topics:

• Communication techniques
• Employee development techniques and approaches
• Knowledge management, retention, and transfer

techniques
• Learning theories and philosophies
• Needs assessment techniques (e.g., organizational,

training)
• Restructuring approaches
• Succession planning techniques
• Workforce planning techniques and analyses (e.g.,

gap and solution, implementation and evaluation,
supply and demand, workforce profile)

THE SHRM BODY OF COMPETENCY AND KNOWLEDGE26

SECTION 2: HR EXPERTISE (HR KNOWLEDGE)

Functional Area #8: Employee Relations

Definition: Employee Relations refers to any dealings between the organization and its employees regarding
the terms and conditions of employment. HR demonstrates value by ensuring that the appropriate framework,
mindset, and practices are in place to embrace or react or respond to the employment relationship, including
relationships with employee representatives.

Responsibility Statements:
Key responsibilities for all HR professionals include:

• Managing union/employee representative interactions.

• Engaging in appropriate and lawful union-
management practices.

• Representing the organization’s interests in union-
management activities.

• Managing the collective bargaining process, when
appropriate.

• Resolving workplace labor disputes internally.

• Managing arbitration and mediation processes.

• Participating in or facilitating alternate dispute
resolution processes.

• Understanding and making recommendations to
respond to other types of employee representation
(e.g. government, legal).

Key responsibilities for advanced HR professionals:

• Consulting on and developing an effective labor
strategy (i.e., avoidance or acceptance) with the
desired impact on the organization and its workforce.

• Educating employees, managers, and leaders at all
levels about the organization’s labor strategy (i.e.,
avoidance or acceptance) and its impact on the
achievement of goals and objectives.

Sample Application of Competencies:

• Ethical Practice—The ability to maintain
confidentiality and appropriate levels of
transparency in ways that balance the needs of
employees and the organization.

• Relationship Management—The ability to
manage interactions that balance organizational
and employee needs.

• Critical Evaluation—The ability to interpret
labor activity information and data for making
appropriate decisions about the organization’s
response to employee concerns or third-party
representation.

Knowledge Topics:
• Alternative dispute resolution techniques

• Causes of strikes, boycotts, and work stoppages

• Child labor

• Collective bargaining process

• Communication approaches

• Contract administration techniques

• Contract negotiation approaches

• Disciplinary techniques

• Standard workday

• Employee engagement approaches

• Governmental labor parties and party relations by
nation

• Grievance, complaint, and conflict resolution
techniques

• Industrial relations

• International Labor Organization (ILO) core labor
standards

• International labor practices

• Investigation techniques

• Labor economics

THE SHRM BODY OF COMPETENCY AND KNOWLEDGE 27

SECTION 2: HR EXPERTISE (HR KNOWLEDGE)

• Labor environments (e.g., pluralism, radicalism,
unitarianism)

• Labor rights

• Living and fair wage concepts

• People-management techniques

• Positive union/management relations approaches

• Recognition approaches

• Service award approaches

• Social movement unionism, new unionism
proletariat

• Socialism, syndicalism, anarcho-syndicalism

• Strike actions, secondary actions, general strikes,
sit-down strikes, work-to-rule

• Survey techniques

• Trade unions by nation

• Trade union federations

• Unfair labor practices

• Union acceptance and avoidance approaches

• Union attractiveness

• Union membership

• Union structures

• Unionized labor history

• Works councils structures and approaches

• World Trade Organization

THE SHRM BODY OF COMPETENCY AND KNOWLEDGE28

SECTION 2: HR EXPERTISE (HR KNOWLEDGE)

Functional Area #9: Technology & Data

Definition: Technology & Data deals with the use of tools, technologies, and systems that support the
gathering, analysis, and reporting of workforce information, as well as effective and efficient collaboration
and communication throughout the organization. HR demonstrates value by developing knowledge about
technology uses, trends, and innovations applicable to HR’s strategic goals.

Responsibility Statements:
Key responsibilities for all HR professionals include:

• Consulting on effective policies and approaches
to address technology use in the workplace (e.g.,
collaboration, communication, networking, social
media).

• Identifying, analyzing, and implementing
appropriate technology solutions for the delivery of
effective HR services.

• Implementing appropriate HR information systems
(HRIS) that integrate with enterprise systems
to provide efficient and effective reporting and
metrics.

• Accessing appropriate data and information to
analyze specific business challenges and recommend
solutions.

• Leveraging technology to gain efficiencies within
the HR function.

Key responsibilities for advanced HR professionals
include:

• Identifying and implementing technology solutions
that support achievement of organizational
strategies, goals, and objectives.

• Using technology for data analytics that optimize
each HR Functional Area.

• Developing and implementing a technology-
driven self-service approach enabling managers
and employees to perform basic people-related
transactions (e.g. benefit enrollment, compensation
administration, information changes, scheduling,
timekeeping).

Sample Application of Competencies:

• Human Resource Expertise—The ability to
maintain up-to-date knowledge about core business
and HR technologies to solve business challenges.

• Business Acumen—The ability to understand
and apply technology solutions that support
achievement of the organization’s strategic plan.

• Critical Evaluation—The ability to efficiently
access information and data in order to make
business decisions and recommendations.

• Communication—The ability to develop
technology solutions that promote the effective
exchange of information among key stakeholders,
regardless of location.

Knowledge Topics:

• Business process integration approaches

• Data analytic techniques

• Data management protection approaches

• Electronic recordkeeping approaches

• Electronic signature acceptance

• HR information systems and sources

• HR management and information system design

• Information management theory

• Procurement approaches

• Product development

• Project management theories

• Social media practices and usage

• Systems integration approaches

• Technology use policies and practices

THE SHRM BODY OF COMPETENCY AND KNOWLEDGE 29

SECTION 2: HR EXPERTISE (HR KNOWLEDGE)

DOMAIN 3: Workplace

Functional Area #10: HR in the Global Context

Definition: HR in the Global Context focuses on organizational growth and workforce-related issues and
impacts, viewed from domestic, multinational, transnational, and global perspectives. HR demonstrates value
by understanding how global PEST factors influence business decisions, and by applying this knowledge to
day-to-day HR activities, policy creation, and business solution recommendations.

Responsibility Statements:
Key responsibilities for all HR professionals include:

• Recognizing and responding to global issues that
influence domestic business practices.

• Maintaining up-to-date knowledge of PEST, HR,
and legal trends in global terms.

• Developing expert knowledge of global trends and
best practices.

• Balancing the organizational desire for
standardization with localization through a

“glocalized” approach to decision-making.

• Building cross-cultural relationships and
partnerships with global stakeholders.

• Implementing and conducting audits of global HR
practices.

Key responsibilities for advanced HR professionals
include:

• Developing and implementing a comprehensive
strategy to address issues affecting business, people,
and the workforce on a global basis.

• Consulting on and developing strategies to define
global competencies.

• Consulting on labor and economic trends, cultural
implications, and the legal environment for
business decisions and risks.

Sample Application of Competencies:

• Communication—The ability to effectively
exchange information with stakeholders to ensure
that a global perspective is considered in decision-
making.

• Global & Cultural Effectiveness—The ability to
value and consider all parties’ perspectives and
backgrounds.

• Consultation—The ability to provide guidance
on global matters to internal and external
organizational stakeholders.

Knowledge Topics:

• Creating a global organizational culture

• Cross-border HR management techniques

• Cultural models (e.g., Hall, Hofstede, Schein,
Trompenaars)

• Global discrimination prevention practices

• Global legal systems (e.g., different nations’
approaches to government-mandated, government-
provided, and voluntary benefits, extra-territoriality
of laws and legislation)

• Global mindset techniques (e.g., communication
barrier removal, cultural awareness training and
assimilation, understanding PEST factors)

• Global trends in benefits, compensation, diversity
and inclusion, employment laws, ethics and
sustainability, labor markets, labor relations, safety
and security, staffing management

• Managing international assignments (e.g.,
approaches and trends, effective performance,
compensation adjustments, employee repatriation)

• Moving work (e.g., co-sourcing, near-shoring,
offshoring, on-shoring)

• Taxation approaches
• Totalization agreements

• Visa and work permit considerations

THE SHRM BODY OF COMPETENCY AND KNOWLEDGE30

SECTION 2: HR EXPERTISE (HR KNOWLEDGE)

Functional Area #11: Diversity & Inclusion

Definition: Diversity & Inclusion encompasses the qualities, life experiences, personalities, education, skills,
competencies, and collaboration of the many different types of people who are necessary to propel an
organization to success. HR demonstrates value by creating opportunities that leverage the human experience
to address organizational needs or solve issues on a global basis.

Responsibility Statements:
Key responsibilities for all HR professionals include:

• Consulting on the difference between issues of
performance and those of culture or personal style.

• Developing expert knowledge of global trends and
best practices in diversity and inclusion.

• Maintaining expert global and cultural knowledge.

• Facilitating an organizational culture that promotes
a global mindset for diversity and inclusion through
development activities and experiences.

• Championing diversity and inclusion programs with
external stakeholders (e.g., diverse suppliers).

• Providing mentoring, training, guidance, and
coaching on cultural trends and practices to
employees at all levels of the organization.

• Implementing audit practices to ensure cultural
awareness on a global basis.

• Demonstrating nonjudgmental respect for others’
perspectives.
Key responsibilities for advanced HR professionals
include:

• In conjunction with other business leaders,
developing, implementing, and overseeing
programs, practices, and policies that make the
strategic connection between a global mindset and
organizational success.

• Ensuring that equitability for all internal and
external stakeholders is considered when designing
programs, policies, and practices.

• Taking diversity into account when planning and
implementing programs, policies, and practices.

• Fostering and influencing an inclusive
organizational culture.

• Fostering an environment that embraces and
encourages global mobility, which allows for
diverse experiences.

Sample Application of Competencies:

• Ethical Practice—The ability to recognize and
mitigate the influence of bias in business decisions.

• Relationship Management—The ability to
manage interactions that provide service to and
support the organization from a global perspective.

• Communication—The ability to effectively
exchange information with global stakeholders.

• Global & Cultural Effectiveness—The ability
to value and consider the perspectives and
backgrounds of all parties.

Knowledge Topics:

• Approaches to a multi-generational workforce

• Developing cross-cultural relationships

• Effective approaches to building trust and
relationships

• Emotional intelligence

• Glass-ceiling prevention

• High- and low-context cultures

• Inclusive leadership

• Influence of the 4 T’s (travel, training, transfers,
and teams)

• Intercultural wisdom

• Issues related to disability, ethnicity, gender,
language, race, sexual orientation

• Level of global acceptance of diversity (e.g.,
disability, ethnicity, gender, language, race, religion,
sexual orientation)

• Mindful communication

• Religious influences and accommodation

• Techniques for cultural awareness and respect

THE SHRM BODY OF COMPETENCY AND KNOWLEDGE 31

SECTION 2: HR EXPERTISE (HR KNOWLEDGE)

Functional Area #12: Risk Management

Definition: Risk management is the identification, assessment, and prioritization of risks (defined in ISO
31000 as the effect of uncertainty on objectives), followed by the coordinated and economical application
of resources to minimize, monitor, and control the probability and/or impact of unfortunate events or to
maximize the realization of opportunities.

Responsibility Statements:
Key responsibilities for all HR professionals include:

• Directly or indirectly developing, implementing
and overseeing the execution of programs,
practices, and policies that mitigate risk and support
organizational success (e.g., appropriate use of
technology, fiduciary responsibility, fraud, theft,
workplace safety and security, workplace violence).

• Maintaining accountability for recording and
reporting workplace safety compliance.

• Developing crisis management and contingency
plans for the HR function and the organization.

• Designing and implementing continuity plans for
the HR function and the organization.

• Communicating critical information about risk
mitigation to all stakeholders.

• Communicating information about workplace
safety and security issues to all levels of employees.

• Auditing risk management activities.

Key responsibilities for advanced HR professionals
include:

• In conjunction with other leaders, developing and
implementing a comprehensive strategy to address
and mitigate risk on a global basis.

• Leveraging technologies (e.g., communication
systems, computer security, contingency systems,
records backup, social media) to manage and
protect workforce and organizational data.

• Examining and providing guidance on potential
threats to the organization.

• In conjunction with other leaders, developing
strategies to ensure the sustainability of the
enterprise.

• Evaluating labor market trends and industry
standards for their impacts on business.

• Designing standards-based systems for mitigating risk.

• Leading after-action debriefs.

Sample Application of Competencies:

• Human Resource Expertise—The ability to
maintain current and up-to-date knowledge about
the role of HR in risk management.

• Business Acumen—The ability to understand and
apply information to develop the organization’s risk
management strategy.

• Critical Evaluation—The ability to interpret
internal and external information and data to make
risk-based business decisions and recommendations
that align with the organization’s level of risk
tolerance.

• Communication—The ability to effectively
exchange information with stakeholders that
increases their understanding of approaches to
mitigate risk exposure.

• Relationship Management—The ability to
manage interactions that provide risk-based service
and support to the organization.

Knowledge Topics:

• Business recovery planning

• Continuity of operations planning

• Corporate espionage and sabotage prevention

• Data integrity mechanisms and practices

• Data management protection and disclosure
approaches

• Drug prevention

• Duty of care

• Emergency/incident response plans

• Health and safety practices and procedures

• Information management theory

• Kidnapping and ransom prevention

• Natural disaster and severe weather emergency
preparation

• Occupational injury and illness prevention,
compensation, and accommodations

THE SHRM BODY OF COMPETENCY AND KNOWLEDGE32

SECTION 2: HR EXPERTISE (HR KNOWLEDGE)

• Public health preparedness and response

• Safety auditing techniques

• Terrorism prevention and responses

• Theft and fraud prevention approaches

• Whistleblower protection approaches

• Workplace incident investigations

• Workplace safety risks and hazards

• Workplace violence prevention techniques

THE SHRM BODY OF COMPETENCY AND KNOWLEDGE 33

SECTION 2: HR EXPERTISE (HR KNOWLEDGE)

Functional Area #13: Corporate Social Responsibility

Definition: Corporate Social Responsibility represents the organization’s commitment to operate its business in
an ethical and sustainable manner. HR demonstrates value by understanding the societal impacts to business
decisions and using this insight to improve the quality of life for the community—people, organization, and
planet—through philanthropy, ethics and governance, and environmentally sound practices, respectively.

Responsibility Statements:
Key responsibilities for all HR professionals include:

• Acting with personal, professional, and behavioral
integrity, in conformance with an HR code of
ethical conduct.

• Investigating, evaluating, and responding to all
reports of unethical behavior, conflicts of interest,
and associated levels of organizational risk.

• Advising executives on any reports of unethical
behavior or conflicts of interest that increase risk
tolerance or risk of liability.

• Designing mechanisms for employees to report
unethical behavior or conflicts of interest without
fear of reprisal.

• Demonstrating the highest ethical standards and
practices and organizational values—espoused as
well as enacted.

• Consulting on and demonstrating the appropriate
level of transparency in organizational practices.

• Understanding PEST factors and how they affect
organizational and workforce decisions.

• Establishing the HR team as a credible and
trustworthy organizational resource for internal
and external stakeholders.

• Consulting on management decisions related to
ethics, governance, and social involvement.

• Aligning HR’s decisions with the organization’s
strategies and values.

• Developing and implementing organizational
standards for the confidentiality of workforce and
organizational data.

Key responsibilities for advanced HR professionals
include:

• Consulting on, developing, and implementing
the organization’s corporate social responsibility
strategy.

• Consulting on, developing, and implementing an
organizational culture that supports responsible
and ethical decision-making.

• Leveraging the organization’s corporate social
responsibility programs to enhance the employee
value proposition.

• Consulting on, developing, and implementing a
code of conduct that reflects the appropriate level
of corporate self-governance.

Sample Application of Competencies:

• Consultation—The ability to provide balanced
guidance to stakeholders that will have a positive
impact on the organization’s reputation, internally
and externally.

• Relationship Management—The ability to
manage interactions with external stakeholders that
demonstrate corporate citizenship.

Knowledge Topics:

• Anti-bribery approaches

• Caux principles

• Charitable/community giving approaches

• Code of conduct development

• Community inclusion approaches

• Compliance program evaluation

• Confidentiality measures and approaches

• Conflicts-of-interest avoidance

• Corporate citizenship and governance programs
and legislation

• Corporate philanthropy approaches

• Corporate social responsibility best practices

THE SHRM BODY OF COMPETENCY AND KNOWLEDGE34

SECTION 2: HR EXPERTISE (HR KNOWLEDGE)

• Economic trend analysis

• Ethical decision-making in a global context

• Ethical employee management practices

• Investigation techniques

• ISO standards

• Key performance indicators

• PEST factors

• Privacy concerns

• Social auditing techniques

• Social media usage

• Transparent decision making

• Volunteer programming

THE SHRM BODY OF COMPETENCY AND KNOWLEDGE 35

SECTION 2: HR EXPERTISE (HR KNOWLEDGE)

Functional Area #14: U.S. Employment Law & Regulations

Important Note: This Area is applicable only to examinees testing within the United States; examinees outside the
U.S. will not be tested on it.

Definition: U.S. Employment Law & Regulations deals with the knowledge and application of all relevant
laws and regulations in the United States relating to employment. These provisions set the parameters and
limitations for each HR Functional Area and for organizations overall. HR demonstrates value by ensuring the
organization’s compliance with laws and regulations domestically and globally (including extraterritorially).

Responsibility Statements:
Key responsibilities for all HR professionals include:

• Maintaining a current working knowledge of
relevant employment laws, domestic and/or global.

• Establishing criteria for organizational compliance.

• Educating and advising the executive team on legal
compliance relating to HR issues as a factor in
decision-making.

• Promoting broad-based HR knowledge to ensure
compliance with laws and regulations.

• Ensuring the alignment of HR policies and
procedures with laws and regulations.

• Overseeing and consulting on HR issues involving
legal and financial risk to the organization.

• Brokering internal or external legal services for the
interpretation of employment laws.

• Establishing or positioning HR technology
approaches for compliance and reporting.

Sample Application of Competencies:

• Human Resource Expertise—The ability to
remain current on relevant laws, regulations, and
legal rulings.

• Ethical Practice—The ability to immediately
respond to reports of unethical or illegal behavior.

• Critical Evaluation—The ability to interpret legal
compliance information and data to make business
decisions and recommendations.

• Leadership & Navigation—The ability to direct
and contribute to legal compliance processes within
the organization.

• Communication—The ability to exchange
information on legal compliance with internal
stakeholders.

• Consultation—The ability to provide knowledge of
legal compliance to internal stakeholders.

• Relationship Management—The ability to
manage interactions that provide service and
support to the organization.

THE SHRM BODY OF COMPETENCY AND KNOWLEDGE36

SECTION 2: HR EXPERTISE (HR KNOWLEDGE)

Knowledge Topics: Listed below are six broad
categories of U.S. laws, regulations, and cases relating
to employment, together with examples. (This is not
an exhaustive list of categories or examples.) Local laws
and regulations, such as those on the state or municipal
level, are not included.

• Compensation

» Examples: Employee Retirement Income
Security Act of 1974 (ERISA); Fair Labor
Standards Act of 1938 (FLSA; Wage-Hour
Bill; Wagner-Connery Wages and Hours Act)
and amendments; Equal Pay Act of 1963
(amending FLSA); Lilly Ledbetter Fair Pay Act
of 2009; Ledbetter v. Goodyear Tire & Rubber
Co. (2007).

• Employee relations

» Examples: Labor Management Relations Act
of 1947 (LMRA; Taft-Hartley Act); National
Labor Relations Act of 1935 (NLRA; Wagner
Act; Wagner-Connery Labor Relations Act);
NLRB v. Weingarten (1975); Lechmere, Inc. v.
NLRB (1992).

• Equal employment opportunity

» Examples: Age Discrimination in Employment
Act of 1967 (ADEA) and amendments;
Americans with Disabilities Act of 1990 (ADA)
and ADA Amendments Act of 2008; Civil
Rights Acts; Equal Employment Opportunity
Act of 1972 (amending Civil Rights Act);
Uniform Guidelines on Employee Selection
Procedures (1978) (29 CFR Part 1607); Griggs
v. Duke Power Co. (1971); Phillips v. Martin
Marietta Corp. (1971).

• Job safety and health

» Examples: Drug-Free Workplace Act of 1988;
Guidelines on Sexual Harassment; Occupational
Safety and Health Act of 1970.

• Leave and benefits

» Examples: Family and Medical Leave Act of
1993 (FMLA; expanded 2008, 2010); Patient
Protection and Affordable Care Act (PPACA;
ACA; “Obamacare”); National Federation of
Independent Business v. Sebelius (2012).

• Miscellaneous protection laws
» Examples: Employee Polygraph Protection

Act of 1988; Genetic Information
Nondiscrimination Act of 2008 (GINA).

THE SHRM BODY OF COMPETENCY AND KNOWLEDGE 37

SECTION 2: HR EXPERTISE (HR KNOWLEDGE)

DOMAIN 4: Strategy

Functional Area #15: Business & HR Strategy

Definition: Business & HR Strategy involves organizational planning to achieve success and create value
for stakeholders. HR demonstrates value by contributing its perspective and expertise to development of
the enterprise strategy, and by developing, implementing, and evaluating an HR strategy aligned with the
organization’s goals, values, and tactics, as defined in the enterprise strategy.

Responsibility Statements:
Key responsibilities for all HR professionals include:

• Developing results-oriented metrics and scorecards
that contribute to organizational success.

• Using knowledge of business and metrics to make
workforce and business decisions.

• Ensuring that all HR initiatives demonstrate
measurable value to the organization.

• Demonstrating a working knowledge of the labor
market and its relation to organizational success.

• Benchmarking the competition and other relevant
comparison groups, to better understand market
position and competitive advantage.

• Creating an action plan for managing talent within
the confines of the labor market.

• Maintaining advanced knowledge of key industry
metrics and how the organization compares to the
standard.

• In conjunction with other leaders, establishing
measurable goals and objectives that create a
culture of accountability, and regularly monitoring
results against goals in support of business strategy.

• Evaluating critical activities in terms of value
added, impact, and utility derived from cost-benefit
analyses, revenue, profit-and-loss estimates, and
other leading or lagging indicators.

• Applying consistently to internal HR processes
and policies the principles of finance, marketing,
economics, sales, technology, and business systems.

• Maintaining a systems-wide perspective when
making business decisions.

Key responsibilities for advanced HR professionals
include:

• In conjunction with other leaders, developing a
business strategy aligned to the organization’s goals
and objectives.

• Aligning HR strategy, goals, and objectives with
overall business strategy and objectives, to drive
business results.

• Developing and evaluating business cases proposed
for HR and other functional projects and initiatives.

• Developing strategies for employment branding
and marketing communications that will reach
internal and external audiences.

• Identifying key talent requirements to successfully
execute the business strategy.

• Developing and implementing an action plan for
capturing, developing, and managing the talent
needed to execute the business strategy, including
the effective management of a global workforce.

Sample Application of Competencies:

• Business Acumen—The ability to understand and
apply information to develop the organization’s
strategic plan.

• Critical Evaluation—The ability to interpret
information and data to make business decisions
and recommendations.

• Leadership & Navigation—The ability to direct
and contribute to initiatives and processes within
the organization.

• Consultation—The ability to provide guidance to
organizational stakeholders.

• Communication—The ability to effectively
exchange information with stakeholders.

• Relationship Management—The ability to
manage interactions to provide service and support
to the organization.

THE SHRM BODY OF COMPETENCY AND KNOWLEDGE38

SECTION 2: HR EXPERTISE (HR KNOWLEDGE)
Knowledge Topics:

• Approaches for linking organizational and HR
strategies

• Balanced scorecard utilization

• Business intelligence factors

• Change management techniques

• Competitive analysis techniques

• Conflict management techniques

• Due diligence techniques

• Effective communication techniques

• Ethical decision-making framework

• Goal-setting approaches

• HR systems integration approaches

• Labor market analysis

• Leadership theories, approaches, and evaluation

• Leading and lagging indicators

• Mission, vision, and values creation

• Organizational growth strategies, evolution stages,
and success factors

• Project management methods

• Quality assurance techniques

• Strategic management considerations

• Strategic planning stages (i.e., strategy formulation,
development, implementation, and evaluation)

• PEST factors

• SWOT and environmental scanning techniques

THE SHRM BODY OF COMPETENCY AND KNOWLEDGE 39

THE SHRM BODY OF COMPETENCY AND KNOWLEDGE

Section 3: Exam Overview
The SHRM-CP and SHRM-SCP exams are based
on the SHRM BoCK and its two major aspects of
modern HR practice, Competencies and Knowledge.
Accordingly, the exams contain two types of questions:

• Knowledge items, which cover the four Knowledge
Domains (People, Organization, Workplace, and
Strategy) associated with the SHRM BoCK’s
Technical Knowledge competency; and

• Situational judgment items, which cover the
knowledge, skills and abilities (KSAs) associated
with the SHRM BoCK’s Behavioral Competencies.

In addition, both exams contain “field test” items (see
below), the answers for which will not be scored.

Knowledge items assess candidates’ understanding of
factual information. Examinees are asked questions

on particular subject areas. Situational judgment
items assess candidates’ KSAs and decision-making
skills, which are not easily measured using traditional
knowledge-based questions. Examinees are presented
with realistic work-related scenarios and asked to
choose the best of several possible strategies to resolve
or address them.

• The SHRM-CP exam contains 160 items: 130
scored questions (90 knowledge items and 40
situational judgment items) and up to 30 unscored
field test questions.

• The SHRM-SCP exam contains 180 items: 150
scored questions (90 knowledge items and 60
situational judgment items) and up to 30 unscored
field test questions.

“Field Test” Questions

The field test items on the SHRM-CP or SHRM-SCP
exams will be interspersed randomly in the exams
so that candidates will not know which they are.
Examinees’ answers to field test questions will not
count toward any part of their final exam scores.

Field-testing gathers data on a question’s effectiveness
before it can be included on future exams as a scored
item. This process facilitates SHRM’s efforts to
continuously assess and improve all aspects of its
certification program.

Figure 6 provides an overview of the score weighting
for the SHRM-CP and SHRM-SCP exams.

FIGURE 6: SCORE WEIGHTING FOR EACH SUBJECT AREA

Subject Area SHRM-CP (160 items) SHRM-SCP (180 items)

Behavioral Competencies 35% 50%

Technical Knowledge

• People 20% 10%

• Organization 20% 10%

• Workplace 15% 10%

• Strategy 10% 20%

THE SHRM BODY OF COMPETENCY AND KNOWLEDGE40

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