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SHRM-CP PEOPLE Questions - Part 25

Jenny Clarke

Sun, 30 Aug 2026

SHRM-CP PEOPLE Questions - Part 25

1. New leadership is in place at a large retailer, resulting in a business unit undergoing a detailed review of its support of the organizational strategy. It has been identified that the benefit offerings are not reflective of the organization's total rewards philosophy and that many benefits overlap, creating inefficiencies. Which action should be taken first by HR take to remedy the situation?

A) Instituting cost-containment strategies to reduce organizational costs
B) Polling employees, asking which benefits do not have value
C) Conducting a utilization review of all benefits
D) Creating a cost analysis and dropping the most expensive benefit



2. When conducting a benefits needs assessment, what is the next step HR should take after analyzing the design and utilization data for all benefit plans?

A) Compare organizational needs, employee needs, and current benefit offerings.
B) Review the organization's total rewards philosophy, compensation approach, and related objectives.
C) Review the organizational strategy to align with the current benefits offered.
D) Analyze the current and projected demographics of the organization's workforce.



3. Which component of a total rewards system should an organization consider as an indirect benefit to employees?

A) Life insurance
B) Competitive salary
C) Yearly bonus
D) Commissions



4. To better meet the growing need for new parents to balance work with family, which program should HR include as part of the organization's employee benefits?

A) Unlimited unpaid leave
B) Employee assistance program
C) Automatic increased vacation time
D) Flexible work schedules



5. When creating a benefits program, which key legal factor does the HR benefits leader need to keep in mind?

A) What government-regulated programs are provided
B) How much paid time off the organization offers
C) Types of involuntary termination severance packages
D) Public, national, and bank holidays



1. Right Answer: C
Explanation: A utilization review is an audit of benefits use and charges to identify which benefits are used and to make certain that Β costs are appropriate

2. Right Answer: A
Explanation: A gap analysis compares organizational needs, employee needs, and the existing set of benefits to identify the benefits that best match the needs of the organization and its employees.

3. Right Answer: A
Explanation: Life insurance is considered an indirect benefit. Salaries, commissions, and bonuses Β are part of an employee's compensation and are considered direct benefits.

4. Right Answer: D
Explanation: Flexible work schedules help employees balance work roles with family roles. Increasing vacation time selectively will create problems with engagement and compliance. Unlimited paid leave is not equitable to the organization. Employee assistance programs can provide advice possibly but not relief for the basic problem here, the competition of work and life demands.

5. Right Answer: A
Explanation: The benefits leader needs to understand what is normally provided to employees, what government-regulated programs are provided, and what employees expect.

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