Unit Code: 5HR02

Unit Title: Talent management and workforce planning

Word Count: 3,900 words

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Comprehensive Guide to Achieving High Pass in 5HR02 Assessment

This CIPD 5HR02 assignment example provides a complete, high-quality response to the Talent Management and Workforce Planning unit assessment. Designed for students pursuing the Level 5 Associate Diploma in People Management, this exemplar demonstrates how to achieve a high pass grade (33-40 marks) through comprehensive analysis, evidence-based arguments, and professional academic writing.

What is CIPD 5HR02 assignment example?

CIPD 5HR02 Talent Management and Workforce Planning is a core unit that focuses on strategic resourcing, workforce planning, recruitment and selection methods, employee retention strategies, and effective onboarding practices. This unit equips people professionals with the knowledge and skills to address critical talent challenges in modern organisations.

AC 1.1 Explain how organisations strategically position themselves in competitive labour markets.

In today’s fiercely competitive labour market, particularly within rapidly evolving economies like Saudi Arabia, strategic positioning is paramount for organisations to attract and retain top talent. For a company like ImportantParcel, which faces heightened competition, a deliberate and multi-faceted approach to employer branding is essential. Strategic positioning is the process of creating a distinct and desirable identity in the minds of potential and current employees, differentiating the organisation from its competitors (Keller, 2013). This involves the careful crafting and communication of an Employer Value Proposition (EVP), which encapsulates the unique benefits and opportunities an organisation offers in exchange for the skills, capabilities, and experiences of its employees (CIPD, 2024).

An effective EVP is the cornerstone of a strong employer brand. It extends beyond mere compensation to encompass a holistic range of attributes, including career development opportunities, a positive work environment, and a compelling organisational culture. For ImportantParcel to compete effectively, it must define what makes it a unique and attractive place to work. This could involve highlighting its long-standing reputation for reliability, its commitment to employee well-being, or its investment in new technologies.

In the context of Saudi Arabia’s Vision 2030, which emphasizes career growth and skills development for Saudi nationals, positioning the company as a place for long-term career progression can be a powerful differentiator (Al-Asfour, 2017). By aligning its EVP with the aspirations of the local workforce, ImportantParcel can enhance its appeal to a key talent pool.

Furthermore, strategic positioning requires a targeted communication strategy. ImportantParcel should leverage various channels to disseminate its employer brand message, including its corporate website, social media platforms, and professional networking sites. The use of realistic job previews, which provide an honest and balanced view of the role and the organisation, can also contribute to a more authentic and credible employer brand (Breaugh and Starke, 2000). By strategically positioning itself as an employer of choice that offers a compelling and authentic value proposition, ImportantParcel can significantly improve its ability to attract and retain the talent it needs to thrive in a competitive market.

AC 1.2 Explain the impact of changing labour market conditions on resourcing decisions.

Changing labour market conditions exert a profound influence on an organisation’s resourcing decisions, compelling them to adapt their strategies to remain competitive. For Important Parcel, the entry of new competitors and shifts in labour supply and demand necessitate a re-evaluation of its approach to talent acquisition and management. The current labour market in many regions, including Saudi Arabia, is characterized by skills shortages in certain sectors, increased competition for qualified candidates, and evolving employee expectations (CIPD, 2025). These conditions directly impact resourcing decisions by increasing recruitment costs, extending time-to-hire, and making employee retention a more critical concern.

In response to these challenges, organisations like ImportantParcel must adopt a more strategic and proactive approach to resourcing. This includes a greater emphasis on workforce planning to anticipate future skills needs and identify potential talent gaps before they become critical. Furthermore, the rise of the gig economy and the increasing demand for flexible working arrangements are significant labour market trends that cannot be ignored (Kuhn, 2016). ImportantParcel may need to diversify its contractual arrangements beyond traditional full-time employment to tap into a wider talent pool and accommodate the preferences of a modern workforce. This could involve offering part-time, temporary, or freelance contracts to attract individuals seeking greater flexibility.

The Saudi Arabian context adds another layer of complexity to the resourcing landscape. The government’s Saudization initiatives, as part of Vision 2030, are designed to increase the participation of Saudi nationals in the private sector workforce. This has a direct impact on resourcing decisions, as organisations like ImportantParcel must align their hiring practices with these national objectives. This may involve investing in training and development programs to upskill the local workforce and creating career pathways that are attractive to Saudi nationals (Al-Dosary and Rahman, 2005). By understanding and responding to these changing labour market conditions, ImportantParcel can make more informed and effective resourcing decisions that support its long-term business objectives.

AC 2.1 Analyse the impact of effective workforce planning.

Effective workforce planning is a critical strategic activity that can deliver significant benefits to an organisation, particularly one like ImportantParcel that is facing recruitment and retention challenges. It is a systematic process of analysing the current workforce, forecasting future workforce needs, identifying the gap between the two, and implementing solutions to address that gap (CIPD, 2025). The impact of effective workforce planning is far-reaching, enabling an organisation to align its people strategy with its overall business objectives, thereby enhancing its agility, efficiency, and long-term sustainability. By proactively managing its talent pipeline, ImportantParcel can mitigate the risks associated with labour shortages and ensure it has the right people, with the right skills, in the right place, at the right time.

One of the most significant impacts of effective workforce planning is the ability to anticipate and respond to change. In a dynamic market like the parcel delivery sector, which is subject to fluctuations in demand and technological advancements, a reactive approach to resourcing is no longer sufficient. Workforce planning allows ImportantParcel to model different scenarios and develop contingency plans, ensuring it can adapt to changing circumstances without disrupting its operations. For example, by forecasting an increase in demand during peak seasons, the company can proactively recruit temporary staff or offer overtime to its existing workforce. This not only improves operational efficiency but also reduces the costs associated with last-minute hiring and overtime premiums.

Furthermore, effective workforce planning can have a profound impact on employee engagement and retention. When employees see that their organisation is invested in their development and provides clear career pathways, they are more likely to be motivated and committed to their roles (Cascio, 2018). Workforce planning can help ImportantParcel identify skills gaps and implement targeted training and development programs to upskill its employees.

This not only enhances the capabilities of the workforce but also demonstrates a commitment to employee growth, which is a key factor in retaining talent, especially in the competitive Saudi Arabian labour market. By embracing workforce planning as a strategic imperative, ImportantParcel can transform its approach to talent management and build a more resilient and high-performing workforce.

AC 2.2 Evaluate the techniques used to support the process of workforce planning.

To effectively implement workforce planning, organisations can employ a range of techniques to analyse and forecast their talent needs. For ImportantParcel, a combination of these techniques would be most effective. One fundamental technique is demand forecasting, which involves estimating the future quantity and quality of people required to meet the organisation’s objectives. This can be done through trend analysis, where historical data on staffing levels is used to predict future needs, or through managerial estimates, where line managers provide their expert opinion on future requirements (Armstrong and Taylor, 2020). While trend analysis is data-driven, it may not account for sudden market changes, whereas managerial estimates can be subjective. Therefore, a blend of both is often most effective.

Complementing demand forecasting is supply forecasting, which focuses on the internal and external availability of talent. Internal supply analysis involves reviewing the skills and potential of the current workforce, often using tools like skills inventories and succession planning charts. This helps ImportantParcel identify employees who are ready for promotion or who could be developed for future roles. External supply analysis, on the other hand, involves examining the wider labour market to understand the availability of specific skills, demographic trends, and competitor activity (Bratton and Gold, 2021). In the Saudi Arabian context, this would involve analysing the growing pool of qualified Saudi nationals and the impact of Saudization policies on the availability of expatriate talent.

Finally, gap analysis and scenario planning are crucial techniques for translating forecasting into actionable strategy. Gap analysis involves comparing the demand and supply forecasts to identify the specific shortfalls or surpluses in talent that ImportantParcel will face. Once these gaps are identified, the company can develop targeted strategies to address them, such as recruitment, training, or restructuring.

Scenario planning takes this a step further by exploring multiple possible futures and their potential impact on the workforce. For example, ImportantParcel could model the impact of a new major competitor entering the Saudi market or the introduction of new delivery technologies. By considering these different scenarios, the company can develop more robust and flexible workforce plans that can withstand uncertainty and support long-term strategic goals (CIPD, 2023).

AC 2.3 Evaluate the strengths and weaknesses of different methods of recruitment and selection to build effective workforces.

To broaden its talent acquisition strategy beyond its current approach of website advertising and line manager interviews, ImportantParcel should consider a variety of recruitment and selection methods. A robust approach will involve a mix of methods, each with its own strengths and weaknesses. For recruitment, two effective methods to consider are employee referral programs and social media recruiting.

Employee referral programs leverage the networks of existing employees to source candidates. The primary strength of this method is that it often leads to high-quality hires who are a good cultural fit, as employees are likely to refer individuals they know and trust (Budhwar and Mellahi, 2016). Referrals also tend to be a more cost-effective and faster way to hire compared to traditional advertising. However, a potential weakness is the risk of creating a homogenous workforce, as employees may refer people who are similar to themselves, which could limit diversity. For ImportantParcel, this could be mitigated by actively encouraging referrals from a wide range of employees.

Social media recruiting, using platforms like LinkedIn, is another powerful method for reaching a broad and diverse pool of candidates. It allows for targeted advertising to individuals with specific skills and experience, and can be used to showcase the company’s culture and employer brand (Madia, 2011). The main weakness is that it can be time-consuming to manage and requires a consistent and engaging online presence. For selection, ImportantParcel could supplement its interviews with assessment centres and psychometric testing.

Assessment centres are a comprehensive selection method that involves multiple candidates participating in a series of exercises, such as group discussions, presentations, and role-plays. Their strength lies in their ability to assess a wide range of job-related skills and competencies in a realistic work context, leading to more valid and reliable hiring decisions (Arthur, 2017). However, they are also expensive and time-consuming to design and run.

Psychometric testing, which includes ability tests and personality questionnaires, can provide objective insights into a candidate’s cognitive abilities and personality traits. This can help predict job performance and cultural fit. The weakness is that these tests can be costly and may not always be accurate predictors of future behaviour if not used in conjunction with other selection methods. By combining these methods, ImportantParcel can create a more rigorous and effective recruitment and selection process.

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AC 3.1 Discuss factors that influence why people choose to leave or remain in organisations.

Understanding the factors that influence an employee’s decision to leave or remain with an organisation is crucial for developing effective retention strategies. These factors can be broadly categorised into ‘push’ and ‘pull’ factors, and turnover itself can be classified as either avoidable or unavoidable. For ImportantParcel, which is experiencing higher-than-desired turnover, a thorough analysis of these factors is the first step towards addressing the problem.

Unavoidable turnover includes life events such as retirement, illness, or a partner’s relocation, which are generally outside the employer’s control. Avoidable turnover, however, stems from workplace issues that an organisation can influence (Ma, 2020). It is this latter category that ImportantParcel must focus on. Push factors are internal to the organisation and ‘push’ employees away. These often include dissatisfaction with management, a lack of career development opportunities, a negative work environment, and uncompetitive pay and benefits. For instance, if warehouse staff at ImportantParcel feel their work is monotonous and offers no prospect of advancement, this acts as a significant push factor.

Conversely, pull factors are external attractions that ‘pull’ employees towards other opportunities. These can include a better salary offer from a competitor, more attractive benefits, or the promise of a more challenging or prestigious role elsewhere (Hom, Lee, Shaw, and Hausknecht, 2017). In the competitive parcel delivery market, new entrants may be aggressively using enhanced compensation packages as a primary pull factor to attract experienced staff from established companies like ImportantParcel. To address its turnover problem, ImportantParcel needs to conduct exit interviews and employee surveys to identify the specific push and pull factors at play within its workforce. This data will provide the insights needed to develop targeted retention strategies that address the root causes of employee attrition.

AC 3.2 Compare different approaches to retaining people.

To address the retention issues among its warehouse staff, ImportantParcel can implement several retention approaches. A comparative analysis of four key approaches—realistic job previews, induction, job enrichment, and reward—reveals their distinct mechanisms and benefits. Realistic Job Previews (RJPs) aim to provide job applicants with a balanced and honest view of a role, including both its positive and negative aspects.

The primary goal of an RJP is to manage the expectations of new hires, thereby reducing early turnover that results from a mismatch between expectations and reality (Buckley, Mobbs, Mendoza, Novicevic, Carraher, and Beu, 2002). For ImportantParcel’s warehouse roles, an RJP could involve showing candidates a video of the work environment and allowing them to speak with current employees. This approach is relatively low-cost to implement and can be highly effective in improving the quality of hire and reducing initial turnover.

Induction, or onboarding, is a more comprehensive process that begins after an employee has been hired. A well-structured induction program helps new employees integrate into the organisation, understand its culture and values, and acquire the knowledge and skills needed to perform their roles effectively. This can significantly improve employee engagement and commitment, leading to higher retention rates (Klein, 2015). For ImportantParcel, this would involve moving beyond its current ad hoc approach to a structured program that includes not only administrative tasks and safety training but also introductions to team members, an overview of the company’s mission and goals, and regular check-ins during the initial months of employment.

Job enrichment focuses on making work more meaningful and motivating by increasing the level of responsibility, autonomy, and variety in a role. This approach is based on Herzberg’s two-factor theory, which suggests that intrinsic factors like achievement and recognition are powerful motivators (Herzberg, 2003). For warehouse staff, job enrichment could involve giving them more control over their work, involving them in team-based problem-solving, or providing opportunities for them to learn new skills. This can lead to increased job satisfaction and a greater sense of ownership, which are strong drivers of retention.

Finally, reward strategies encompass not only financial compensation but also non-financial recognition and benefits. While competitive pay is essential, particularly in a market with many competitors, a total rewards approach that includes performance-based bonuses, recognition for outstanding contributions, and attractive benefits can be a powerful retention tool. For ImportantParcel, this could involve introducing a performance-related pay system for warehouse teams or a recognition program that celebrates employees who go above and beyond. Each of these approaches has its merits, and a combination of all four is likely to be most effective in creating a comprehensive retention strategy for ImportantParcel.

AC 3.3 Explain the impact of dysfunctional employee turnover.

Dysfunctional employee turnover, which refers to the departure of high-performing or valuable employees, can have a severely detrimental impact on an organisation. For ImportantParcel, influencing the senior leadership team to address employee turnover requires a clear explanation of these negative consequences. The impacts are not merely financial; they extend to operational efficiency, employee morale, and long-term organisational capability. Understanding the full scope of these impacts is essential for making a compelling case for investment in retention initiatives.

The most immediate and quantifiable impact of dysfunctional turnover is the direct financial cost. These costs include recruitment expenses for finding a replacement (advertising, agency fees, and interview costs), the cost of training the new employee, and the administrative costs associated with the departure and new hire process (Abbasi and Hollman, 2000). However, the indirect financial costs are often even more significant. These include the loss of productivity during the vacancy period and the reduced productivity of the new employee as they learn the role. For a company like ImportantParcel, the loss of an experienced delivery driver, for example, could lead to missed delivery targets and a decline in customer satisfaction, directly impacting revenue.

Beyond the financial implications, dysfunctional turnover can have a corrosive effect on the morale and engagement of the remaining workforce. When high-performing employees leave, it can create a sense of instability and uncertainty among their colleagues. It can also lead to an increased workload for the remaining staff, which can result in burnout and further turnover (Glebbeek and Bax, 2004).

This can create a vicious cycle of attrition that is difficult to break. Furthermore, the loss of experienced employees results in a loss of valuable organisational knowledge and expertise, which can hinder innovation and problem-solving capabilities. By highlighting these multifaceted and damaging impacts, the People Manager can effectively persuade the senior leadership team at ImportantParcel that addressing dysfunctional turnover is a strategic imperative.

AC 4.1 Assess suitable types of contractual arrangements dependent on specific workforce need.

ImportantParcel’s reliance on permanent, full-time contracts, while offering stability, may not be the most effective approach for managing the fluctuating demand inherent in the delivery services industry. A more flexible and strategic approach to contractual arrangements is needed. Assessing the suitability of different contract types for delivery drivers and other roles is crucial for optimising workforce agility and cost-effectiveness. The traditional permanent, full-time contract provides employees with job security and a stable income, which can foster loyalty and commitment.

For a core team of experienced drivers, this type of contract is highly suitable as it helps retain valuable knowledge and ensures a reliable baseline of service. However, its rigidity makes it less suitable for managing seasonal peaks and troughs in demand, as it can lead to underutilisation of staff during quiet periods or excessive overtime costs during busy times (Purcell, Kinnie, Hutchinson, Rayton, and Swart, 2004).

To address this, ImportantParcel could introduce zero-hours contracts. These contracts offer maximum flexibility, as the organisation is not obliged to provide a minimum number of working hours, and the individual is not obliged to accept work when offered. This makes them highly suitable for covering unpredictable short-term needs or providing a pool of readily available staff for peak periods (CIPD, 2022).

In the Saudi Arabian context, this could be an attractive option for students or others seeking supplemental income. The primary drawback is the lack of income security for the individual, which can lead to lower levels of engagement and higher turnover among this group. Therefore, they are best used to supplement a core permanent workforce rather than replace it.

A third option is the fixed-term contract, where an individual is employed for a specific period, for example, to cover a six-month peak season or a specific project. This provides more security for the employee than a zero-hours contract while still offering the organisation flexibility. It is particularly suitable for roles where the need is temporary but requires a consistent presence over a defined period (Ford, 2011).

For ImportantParcel, this could be ideal for hiring additional drivers and warehouse staff in the run-up to major holidays. The main challenge is ensuring a smooth transition at the end of the contract period and managing the potential for lower morale if the contract is not renewed. By adopting a blended approach that combines permanent, zero-hours, and fixed-term contracts, ImportantParcel can create a more agile and responsive workforce that is better equipped to meet the demands of a dynamic market.

AC 4.2 Explain the benefits of effective onboarding.

Effective onboarding is a strategic process that extends far beyond the administrative formalities of completing new starter forms and providing basic health and safety training. It is the systematic and comprehensive process of integrating new employees into the organisation, ensuring they feel welcomed, engaged, and equipped to succeed in their roles (Bauer, 2010). For ImportantParcel, convincing the senior leadership team to invest in improving its current ad hoc approach requires a clear articulation of the significant and wide-ranging benefits that effective onboarding can deliver. These benefits span improved retention, accelerated productivity, and enhanced employee engagement, all of which contribute directly to the organisation’s bottom line.

One of the most compelling benefits of effective onboarding is its direct impact on employee retention. Research consistently shows that a positive onboarding experience significantly increases the likelihood that a new employee will remain with the organisation long-term. In fact, organisations with a strong onboarding process improve new hire retention by 82% (Glassdoor, 2015). This is because effective onboarding helps to build a strong psychological contract from day one, fostering a sense of loyalty and commitment. By making new employees feel valued and supported, ImportantParcel can reduce the high costs associated with early turnover and create a more stable and experienced workforce.

Furthermore, effective onboarding accelerates a new employee’s time to proficiency. A structured program that provides clear information about the role, performance expectations, and company culture enables new hires to become productive members of the team more quickly. This reduces the learning curve and minimizes the disruption caused by the transition (Aberdeen Group, 2006). For ImportantParcel, this means new delivery drivers will be able to meet their targets faster, and warehouse staff will be able to perform their duties with greater accuracy and efficiency. Ultimately, by investing in a comprehensive onboarding program, ImportantParcel can not only improve its retention rates but also enhance its overall operational performance and build a more engaged and productive workforce.

References for CIPD 5HR02 Assignment Example

Abbasi, S.M. and Hollman, K.W. (2000) ‘Turnover: The real bottom line’, Public Personnel Management, 29(3), pp. 333-342.

Aberdeen Group (2006) The first 90 days: The importance of onboarding. Boston, MA: Aberdeen Group.

Al-Asfour, A. (2017) ‘Saudi Arabia’s Vision 2030: A new mindset for a new era’, Journal of Business and Economic Development, 2(2), pp. 70-73.

Al-Dosary, A.S. and Rahman, S.M. (2005) ‘Saudization (localization)—a critical review’, Human Resource Development International, 8(4), pp. 495-502.

Armstrong, M. and Taylor, S. (2020) Armstrong’s handbook of human resource management practice. 15th edn. London: Kogan Page.

Arthur, D. (2017) Recruiting, interviewing, selecting & orienting new employees. 6th edn. New York: AMACOM.

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Bratton, J. and Gold, J. (2021) Human resource management: theory and practice. 7th edn. London: Palgrave Macmillan.

Breaugh, J.A. and Starke, M. (2000) ‘Research on employee recruitment: So many studies, so many remaining questions’, Journal of Management, 26(3), pp. 405-434.

Buckley, M.R., Mobbs, T.A., Mendoza, J.L., Novicevic, M.M., Carraher, S.M. and Beu, D.S. (2002) ‘Implementing realistic job previews and expectation-lowering procedures: A field experiment’, Journal of Vocational Behavior, 61(2), pp. 263-278.

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Glebbeek, A.C. and Bax, E.H. (2004) ‘Is high employee turnover really harmful? An empirical test’, Academy of Management Journal, 47(2), pp. 277-286.

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Hom, P.W., Lee, T.W., Shaw, J.D. and Hausknecht, J.P. (2017) ‘One hundred years of employee turnover theory and research’, Journal of Applied Psychology, 102(3), pp. 530-545.

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Kuhn, K.M. (2016) ‘The rise of the “gig economy” and implications for understanding work and workers’, Industrial and Organizational Psychology, 9(1), pp. 157-162.

Ma, C. (2020) ‘A review of the literature on employee turnover’, Journal of Human Resource and Sustainability Studies, 8(1), pp. 33-47.

Madia, S.A. (2011) ‘The importance of social media as a recruitment tool’, Journal of Marketing and Management, 2(1), pp. 78-87.

Purcell, J., Kinnie, N., Hutchinson, S., Rayton, B. and Swart, J. (2004) ‘The management of contracts of employment’, Personnel Review, 33(5), pp. 595-612.