Key PHR terms in plain English. The exam is operational and US-centric, so it helps to know the core HR vocabulary that runs across the five domains, especially Employee and Labor Relations.
| Term | Definition |
|---|---|
| Human resources (HR) | The organisational function responsible for managing people - hiring, development, rewards, relations and compliance. |
| Employee relations | The work of maintaining a healthy relationship between the organisation and its employees, including engagement and conflict resolution. |
| Labor relations | The relationship between an employer and organised labor (unions), including bargaining and contract administration. |
| Performance management | The ongoing process of setting expectations, giving feedback and assessing employee performance. |
| Progressive discipline | A graduated approach to addressing performance or conduct issues, escalating consequences step by step. |
| Total rewards | The full package of pay and benefits an employer offers, including base pay, incentives and non-cash benefits. |
| Compensation | The pay an employee receives for work, including base salary, hourly wages and incentives. |
| Benefits | Non-wage compensation such as health insurance, retirement plans and paid time off. |
| Workforce planning | Forecasting an organisation’s future people needs and planning how to meet them. |
| Talent acquisition | The end-to-end process of attracting, sourcing, selecting and hiring people. |
| Onboarding | The process of integrating a new hire into the organisation and their role. |
| Learning and development | Activities that build employees’ skills and support their growth, including training. |
| HR metrics | Quantitative measures used to assess HR’s performance and contribution to the business. |
| Compliance | Meeting the legal and regulatory obligations that govern employment and HR practice. |
| FLSA (Fair Labor Standards Act) | A US law setting minimum wage, overtime pay and related standards. |
| Title VII | The US law prohibiting employment discrimination based on race, colour, religion, sex or national origin. |
| FMLA (Family and Medical Leave Act) | A US law providing eligible employees with job-protected leave for certain family and medical reasons. |
| EEO (Equal Employment Opportunity) | The principle and body of US law aimed at ensuring fair, non-discriminatory employment practices. |
| Collective bargaining | Negotiation between an employer and a union over pay, benefits and working conditions. |
| At-will employment | A US default under which either employer or employee can end employment at any time, subject to legal limits. |
| Job analysis | The study of a role to determine its duties, requirements and relative value. |
| Recertification credit | The unit of continuing activity HRCI requires to renew the PHR, 60 of which are needed per cycle. |
| Scaled score | A converted score reported by HRCI in place of a raw percentage, used to decide pass or fail. |
| Pearson VUE | The testing provider that delivers the PHR exam at its centres. |