5HR02 Assignment Example

  • August 16, 2021
  • Posted by: Harry King
  • Category: CIPD Level 5
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5HR02 Assignment Example

Task One – Presentation Pack

The MD has asked you to prepare a presentation to the managers to position them around key contemporary labour market trends and their significance for workforce planning. This will also cover turnover and retention trends and the factors that influence why people choose to leave or remain. The pack needs to include presentation slides and supporting notes.

The presentation must include:

  • an explanation on how organisations strategically position themselves in competitive labour markets. (AC 1)
  • an explanation of the impact of changing labour market conditions on resourcing decisions. (AC 2)
  • a discussion on the role of government, employers and trade unions in ensuring future skills needs are met. (AC 3)
  • an examination of turnover and retention trends and the factors that influence why people choose to leave or remain (AC1)

It is essential that you refer to current labour market and turnover and retention trends / conditions to ensure that your work is contemporary and relevant. Please ensure that any references and sources drawn upon are acknowledged correctly and supported by a bibliography.

Task Two – Inhouse Manual

For this task you need to create chapters for an inhouse manual for managers on what is involved in Talent Management and Workforce Planning and how to undertake appropriate actions. As your manual is being prepared for managers, it should be written in a professional format and style.

Your manual should have a title page, contents page and a brief introduction. Your manual should be broken down into chapters covering the following:

Chapter 1 – Workforce Planning

  • an analysis of the impact of effective workforce planning. (AC 1)
  • an evaluation of the techniques used to support the process of workforce planning

(AC 2.2)

  • explain approaches to succession and contingency planning aimed at mitigating workforce risks. (AC 3)
  • assess the strengths and weaknesses of different methods of recruitment and selection to build effective workforces (AC 4) 

Chapter 2 – Talent Management

  • compare different approaches to developing and retaining talent on an individual and group level. (AC 2)
  • evaluate approaches that an organisation can take to build and support different talent pools. (AC 3)
  • evaluate the benefits of diversity in building and supporting talent pools (AC 4)
  • explain the impact associated with dysfunctional employee turnover. (AC 5)

Chapter 3 – Contractual Arrangements and Onboarding

  • Assess suitable types of contractual arrangements dependent on specific workforce

(AC 4.1)

  • Differentiate between the main types of contractual terms in contracts. (AC 2)
  • Explain the components and benefits of effective onboarding. (AC 3)

It is essential that you refer to academic concepts, theories and professional practice for the tasks to ensure that your work is supported by analysis. Please ensure that any references and sources drawn upon are acknowledged correctly and supported by a bibliography.

INTRODUCTION

Talent management and workforce planning are essential elements of people practice that contribute to organisational performance and attainment of organisational goals.  Managing talent and workforce are essential for dealing with various organisational challenges and strategising people practice in businesses. While workforce planning is a core business process that aligns people strategy with organisational needs, talent management involves understanding employees potential in a workplace to speed up the process of organisational growth and development. Importantly is to understand that there is an existing relationship between an effective workforce and the development of suitable talent pools in an organisation. Therefore, the two should be structured to favour organisational goals and objectives. This manual gives an insight into contracting, effective onboarding, labour market trends and their significance to an organisation and practical intervention tools required to mitigate risks associated with poor workforce planning and talent management.

Workforce Planning

1.1      AC 2.1 – An analysis of the impact of effective workforce planning.

Workforce planning refers to the process of balancing skills with organisational demand (Weeks, 2020). It is a core business process that involves analysing the current workforce and establishing future labour supply needs, establishing the existing gap between the present and the future and coming up with solutions that can be accomplished in an organisational setting to accomplish the general workforce goals and objectives. Effective workforce planning primarily focuses on getting the right workforce, placed at the right roles, at the right time and for the right cost (Weeks, 2020). Depending on organisational needs, workforce planning can either be long term or short term. However, workforce planning should be linked to organisational goals as part of the strategic business process essential for engaging with the workforce change agenda.

Effective workforce planning has various impacts on an organisation. Objectively, there are more positive impacts of effective workforce planning compared to the negative impacts. The positive impacts manifest as benefits to the organisation, and they include reduced labour costs, enhanced employee retention, improved productivity and quality output, employees’ work-life balance, effective identification and response to changing customer needs and identification for focussed people development.

Enhanced employee retention occurs as a result of a thorough assessment of business needs and the potential of the existing workforce. In addition to hiring a talented workforce as part of effective workforce planning, organisations through the HR office can identify industrial positions that are hard to fill and if the employees left it would damage organisational performance and use workforce planning to establish the cause of turnover and come up with strategies to mitigate the causes and enhance retention (Downs, 2016).

Improved productivity and quality output can be achieved through effective workforce planning through avoidance of delays and labour supply distractions that impact organisational performance. Effective workforce planning allows organisations to meet the set production goals and creates a clear pattern for the supply and demand of the workforce in an organisation. Additionally, it acts as a guidance tool for managers to prioritise recruitment and selection in different business cycles.

1.2      AC 2.2  – an evaluation of the techniques used to support the process of workforce planning

Supporting the workforce planning process is an integral part of people practice that requires effective communication between HR and other stakeholders in an organisation. The workforce planning process should be based on primary organisational strategies that link people management and daily business operations (Weeks, 2020). It is important to note that workforce planning can take many forms, but it can best be described using five ideal stages that are interactive, as illustrated in the figure below.

Figure 1: Workforce planning process (Source: Weeks, 2020)

The first step of workforce planning is understanding the business and its operating environment. This step involves the identification of the business structure and changes that can be made to the structure and processes to enhance labour supply. For example, workforce planning can assess if a business is willing to adopt new technology so as to hire a limited number of employees or employees who have adequate skills and knowledge to handle the new technology. The second step involves an analysis of the workforce. It involves identification and analysing skills, talents, abilities and knowledge and other employee views and attributes that comprise the workforce in an organisation.  Analysing the workforce is essential for establishing reasons for turnover in different departments as well as causes of understaffing and departments affected.

The third step is determining future work needs through the identification of gaps in workforce skills and knowledge. This stage is achieved by the use of various workforce planning tools such as scenario planning tool. It shows the future industrial needs in terms of skills, capabilities and knowledge. Establishing future workforce needs is essential for business continuity and sustainability as contingency and adaptive plans can be developed to meet future needs. The fourth step is the development of an action plan that has functional, numerical and adaptation flexibility. This is an action plan that can be easily adopted and affect change in an organisation as need it may be needed. Implementation of the action plan requires effective communication to enhance the workforce planning efficiency. The fifth and final step is monitoring and evaluation. It involves regular reviews of outcome to establish effectiveness and areas of weakness (pierce, 2017).

1.3      AC 2.3 – Approaches to succession and contingency planning aimed at mitigating workforce risks.

Succession planning is one of the fundamental people practice functions that mitigate numerous organisational risks. CIPD (2020) defines succession planning as a process of identifying and developing potential future leaders and managers of senior positions. The primary purpose of succession planning is to ensure that the key roles and positions in an organisation are filled in case of a resignation or sudden departure. There are different approaches to succession planning.

The traditional approach to succession planning involves large organisations developing highly structured, confidential top-down succession plans that were designed to identify an internal successor for each of the senior positions. However, changes in organisational structures with most organisations adopting flatter other than hierarchical structures has made the traditional approach obsolete. An example of a hierarchical succession plan is attached in appendix A.

Modern succession planning involves openness and diversity, and it is linked to an organisations talent management practice. This means that the successor is identified based on talent, skills and abilities, and they do not have to come from within the organisation but can also be sourced externally. A good example to illustrate the modern approach is the progressive organisations. These organisations utilise the whole workforce approach in managing and developing talent within the organisation, then identify the critical business roles at all levels of the organisation. The modern approach is most suitable for managing Workforce risks, as it is based on abilities and development at all levels of an organisation.

1.4      AC 2.4 – Strengths and weaknesses of different methods of recruitment and selection to build effective workforces

According to Green (2020), the process of attracting the right workforce at the right time for the right role and cost is known as recruitment. Selection, on the other hand, refers to the process of shortlisting and assessing the recruited candidates. Recruitment is a critical resourcing element as organisations should attract the most talented individuals to perform various organisational roles. People practitioners in an organisation are responsible for recruitment and selection, which may be conducted differently.

Recruitment can be done through an external strategy that may include outsourcing the process to a recruiting agent. Although this approach is used by organisations that don’t have HR departments, such as architects and lawyer, it provides the most talented candidates. The disadvantage of using this method is that it can be very expensive. Other recruitment methods include recruitment using online sources, use of internal referral schemes and local arrangements based on an organisational relationship with the community, learning institutions or jobcentres.

Methods of selection described in the CIPD (2020) website include psychometric testing, selection interviews, and assessment centres. Selection should be made fairly, putting into consideration organisational needs and objectives. The figure below illustrates different recruitment and selection methods with their advantage and disadvantages. 

Talent Management

2.1  AC 3.2 – Approaches to developing and retaining talent on an individual and group level.

Talent development in an organisational setting is linked to various formal and informal learning interventions. Organisations can adopt different approaches to developing and retaining talent on an individual and team level by adopting various techniques. The common approaches to developing and retaining talent include the use of continuous learning and development program. Internal learning and development programs are essential for developing the talent of the existing workforce through skilling and reskilling of employees. The primary advantage of using learning and development programs for talent development and retention is that it enhances employees’ skills and abilities and prepares them to meet future organisational needs.

Coaching and mentoring is an important informal approach that is designed to meet individual needs in the talent development process.  Coaching and mentoring involves the development of programs that enhance talent development. While coaching is an effective way of fostering skills, mentoring involves the preparation of an employee to engage in higher responsibilities. This approach is designed to foster face to face interactions between the coach/mentor and the person undergoing mentorship. It is a suitable approach to talent retention as it enhances the relationship between employees and their managers who interact during mentorship and create an understanding that is essential for improved organisational performance.

2.2  AC 3.3 – Approaches that an organisation can take to build and support different talent pools.

Talent pools are groups of high performing employees who are being developed to assume greater responsibilities in particular business areas. Talent pools are the basis for organisational succession planning. Employees that should be assigned to talent pools are high performing employees, high potential employees and people who embody organisational culture and values. There are various activities that an organisation can undertake to build and support an effective talent pool.

Firstly, organisations need to create a continual assessment process that analyses the current talent needs and forecasts future organisational needs. An effective talent management system is essential for this analysis, and technological means can also be applied. Open communication and collaboration among employers and employees are essential for talent acquisition and retention of an effective talent pool.

Secondly, an organisation should network both internally and externally. An effective talent pool comprises internal employees and outsiders that have the potential to benefit an organisation. Employers can use social media to build their talent pool by attracting and retaining records of the best candidates. With technological advancements, organisations should use the internet to build and support their talent pool.

2.3  AC 3.4 –  Benefits of diversity in building and supporting talent pools

A diverse workforce is essential for establishing a diverse talent pool in an organisation. A diverse talent pool means that an organisation can benefit from different capabilities that enhance organisational performance and competitive advantage. Organisations with diverse workforce attract talent from a global scale which is resourceful for the organisation. The second benefit of diversity is that the workforce can deal with a wide range of customers, thus expansion and enhanced productivity.

Another benefit of diversity is that it gives an organisation market competitiveness that enhances organisational developments by creating new opportunities for the business. By supporting and including a diverse workforce organisation brand, employees select the organisations as an employer of choice. Diversity in recruitment and retention is essential for the development of a positive corporate reputation. With enhanced competitive advantage, a business can enjoy enhanced productivity and performance.

2.4  AC 3.5 – Explain the impact associated with dysfunctional employee turnover.

Abnormal rates of employee turnover are known as dysfunctional employee turnover. Usually, this is a higher rate than the usual turnover rate experienced in an organisation—dysfunctional employee turnover costs organisation financial and non-financial costs. Financially, the recruitment and selection process can be costly in terms of resources invested in identifying and selecting a talented workforce. Industries with resource scarcity can also suffer losses as finding skilled personnel might take longer than expected. This means that dysfunctional turnover can cost an employer valuable productivity time and profits that could have been generated.

Dysfunctional turnover results in an increased workload for the remaining employees whose productivity and morale may be affected. In turn, this can be costly for the business as the rate of production and performance will decline. HR practitioners need to develop and implement a strategic workforce plan that ensures effective recruitment and selection and minimises the rate of turnover in an organisation (Peters, 2020).

3. Contractual Arrangements and Onboarding

3.1  AC 4.1 – Assess suitable types of contractual arrangements dependent on specific workforce needs

Employment contracts refer to a legally binding agreement between an employer and employee (Suff, 2020). It is important to note that contractual agreement is based on expressed terms and implied terms as agreed by the employee and employer. According to the Employment Act, there are different types of employment contracts that are acceptable in the UK.

First is the permanent terms employment contract. This contract is indefinite in nature. It involves an agreement of continuous work collaboration between the employee and employer until either party is no longer willing to continue with the contract. In this contractual agreement, the employee is entitled to all forms of benefits as stipulated in the Employment Act. Works that mostly utilise this type of contracts are jobs offered by government institutions or agencies (Suff, 2020).

The second type of contractual agreement is the fixed term or temporal employment contract. This contractual agreement has a start date and an end date. Importantly is to understand that employees under these contracts are entitled to the same privileges and rights as those in permanent employment contracts. At the end of the contract duration, an employer may decide to renew the contract if the employee agrees to the terms or vice versa.

The third type of contractual agreement is the independent contractor. This is also known as a self-employed person. Independent contractors are not bound by employment contracts but by contracts of work. This means that they are responsible for their tax compliance and other statutory deductions and benefits. Consultants such as engineers and lawyers primarily work under independent contracts (Suff, 2020).

3.2  AC 4.2 –  Differentiate between the main types of contractual terms in contracts.

The main terms of contractual terms in a contract include the expressed terms and the implied terms. Expressed terms are terms that are actually stated in the contract document or are communicated verbally. Written expressed terms can be contained in the employment contract or in other organisational documents. Express terms should be compliant with relevant laws, and employers should be careful to comply with the minimum legal standards for each express term they use. For example, when employing a new worker, the employment contract contains express terms that detail information on the wages, work hours, and leaves, which are express terms supported by the law.

On the other hand, implied terms refer to contracts that are neither written nor spoken but emerge from circumstances or a mutual understanding. Implied contractual terms can either be implied facts or fundamental law.  An example of an implied term could be working overtime. Although the employment contract may not have stated overtime compensation, there is an implied contract that all employees working overtime should be accordingly compensated. The primary differences in expressed and implied contractual terms are summarised in the table below.

Implied terms Expressed Terms
the actions of the parties involved infer terms and conditions Terms and conditions are spelt out in the contract, either verbally or in writing
 comes into existence as the result of actions used to bring the contract to fruition
can either be implied facts or implied law comply with the minimum legal standards

3.3  AC 4.3 –  Explain the components and benefits of effective onboarding.

Onboarding is the process through which employees adjust to their new roles and work environment. It is important to note that it is not only the new employees who need onboarding but also tailor-made onboarding programs that can be developed for various groups such as newly promoted employees, remote workers and also the transferred staff. A practical onboarding component includes initial orientation, functional training, role clarification sessions, team assimilation, and leadership assessment (Sherwood, 2017).

The initial orientation is the process that involves the introduction of new members to the organisation.  After the introduction, the members are then provided with an overview of the organisation’s products, activities, and structure. Role clarification is crucial for guiding employees towards achieving organisational goals. Team assimilation and leadership assessments are the last stages between 60 and 90 days into an organisation.

The primary benefits of an effective onboarding program include:

  • Employees settle in quickly
  • Employees are easily integrated into their respective work teams or groups.
  • The new employees easily understand the organisational values and culture
  • Comfort makes it easy for employees to be more productive
  • Employees are able to work to their highest potential.

References

CIPD (2020a). Diversity and Inclusion in the Workplace | Factsheets | CIPD. [online] CIPD. Available at: https://www.cipd.co.uk/knowledge/fundamentals/relations/diversity/factsheet [Accessed 11 May 2021].

CIPD (2020b). Succession Planning | Factsheets. [online] CIPD. Available at: https://www.cipd.co.uk/knowledge/strategy/resourcing/succession-planning-factsheet#gref [Accessed 11 May 2021].

Downs, B. (2016). Benefits of Workforce Planning – Business Benefits Group. [online] Business Benefits Group. Available at: https://www.bbgbroker.com/benefits-of-workforce-planning/ [Accessed 11 May 2021].

Gill, R. (2015). Why the PR strategy of storytelling improves employee engagement and adds value to CSR: An integrated literature review. Public Relations Review, 41(5), pp.662–674.

Green (2020a). Recruitment Process Overview | Factsheets. [online] CIPD. Available at: https://www.cipd.co.uk/knowledge/fundamentals/people/recruitment/factsheet#gref [Accessed 11 May 2021].

Green, M. (2020b). Induction | Factsheets. [online] CIPD. Available at: https://www.cipd.co.uk/knowledge/fundamentals/people/recruitment/induction-factsheet#gref [Accessed 11 May 2021].

Kotelva, D., (2018). Which ERP system is better: Oracle vs SAP vs Dynamics 365? | Infopulse. [online] Infopulse. Available at: https://www.infopulse.com/blog/which-erp-system-is-better-oracle-vs-sap-vs-dynamics-365/

Peters, R. (2020). Employer Branding | Factsheets. [online] CIPD. Available at: https://www.cipd.co.uk/knowledge/fundamentals/people/recruitment/brand-factsheet#gref [Accessed 11 May 2021].

Pierce (2017). 5 Simple Steps to Efficient Workforce Planning | Mitrefinch Inc. [online] Mitrefinch. Available at: https://mitrefinch.com/blog/5-simple-steps-workforce-planning/#:~:text=%20Follow%205%20Simple%20Steps%20to%20Efficient%20Workforce [Accessed 10 May 2021].

Sherwood, K. (2017). 5 Components of Successful and Practical Onboarding. [online] Training Industry. Available at: https://trainingindustry.com/articles/onboarding/5-key-components-of-successful-and-practical-onboarding/ [Accessed 11 May 2021].

Suff, R. (2020). Contracts of Employment | Factsheets. [online] CIPD. Available at: https://www.cipd.co.uk/knowledge/fundamentals/emp-law/terms-conditions/contracts-factsheet#gref [Accessed 11 May 2021].

Taylor, S. and Woodhams, C. (2012). Managing people and organisations. London: Chartered Institute Of Personnel And Development.

Weeks, A. (2020). Workforce Planning | Factsheets. [online] CIPD. Available at: https://www.cipd.co.uk/knowledge/strategy/organisational-development/workforce-planning-factsheet#:~:text=The%20following%20points%20are%20key%20in%20workforce%20planning%3A [Accessed 11 May 2021].

Weeks, A. (2021). Talent Management Overview | Factsheets | CIPD. [online] CIPD. Available at: https://www.cipd.co.uk/knowledge/strategy/resourcing/talent-factsheet [Accessed 11 May 2021].