There is a difference between encryption and hashing. Encryption translates plain text usually using a cipher and can be reversed to the original input, were a hash cannot be reversed to the original input.
For your query you should use the HASHBYTES
function:
DECLARE @YourInput nvarchar(4000);
SELECT @YourInput = CONVERT(nvarchar(4000),'dslfdkjLK85kldhnv$n000#knf');
SELECT HASHBYTES('SHA1', @YourInput);
If you're using SQL Server 2012 you can use:
SELECT HASHBYTES('SHA_256', @YourInput); // SHA 256 or SHA_512
http://msdn.microsoft.com/en-us/library/ms174415.aspx