Challenge Your Exam Readiness With Our Free PHR Practice Questions

On the PHR, Business Management emphasizes aligning HR activities with organizational goals and demonstrating value through business metrics. While time-to-hire (A) reflects process efficiency, it does not reveal whether hires are successful in strategic, high-impact roles. Revenue per FTE (B) is an overall productivity measure but is influenced by many non-HR factors (pricing, market conditions) and rarely isolates the contribution of talent practices. Training hours (C) are an input/activity metric that can mask ineffectiveness—more hours do not equal better performance. “Quality of hire” (D) purposefully connects HR outcomes to strategy by focusing on whether new hires in mission-critical positions meet or exceed performance expectations and remain with the organization (often measured via first-year performance ratings, ramp-time attainment, and 12-month retention). When segmented to the roles that drive higher-margin product lines, it becomes a direct indicator of strategic alignment. PHR content stresses translating HR data into business insights, choosing leading and lagging indicators, and building dashboards that link people outcomes (capability, performance, retention) to financial and customer outcomes. Therefore, D best satisfies the request to evidence strategic alignment, not just process speed.