CIPD Level 5 — HR Specialist Unit

5HR02 Talent Management and Workforce Planning

This unit focuses on the impact of effective workforce planning in considering the development of diverse talent pools and how to contract and onboard the workforce. It also includes analysis of the potential cost to the organisation if this is poorly managed and the tools and interventions required to mitigate this risk.

6 credits10 assessment criteria60 hours total unit time

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Assessment Criteria Explained

Your 5HR02 assignment questions will closely follow these assessment criteria. Here's what the marker is looking for in each one.

Learning Outcome 1: Understand key contemporary labour market trends and their significance for workforce planning

AC 1.1

Explain how organisations strategically position themselves in competitive labour markets

Cover how organisations compete for talent through employer branding, organisational image, ethics, and reputation. Discuss competitor analysis — understanding the strengths and weaknesses of competitors' employee experience — and how organisations position themselves as employers of choice. The marker wants you to explain the strategic decisions organisations make about reward, culture, and working conditions to attract and retain the best people in competitive labour markets.

AC 1.2

Explain the impact of changing labour market conditions on resourcing decisions

Distinguish between tight and loose labour markets and explain trends in the demand and supply of labour and skills. Use analytical models (PESTLE or similar) to explain the reasons behind these trends. Then connect changing conditions to resourcing decisions: how do shifts in the labour market affect employer branding, recruitment methods, retention strategies, development decisions, and long-term workforce planning? Include the impact of national, international, and global pressures.

Learning Outcome 2: Understand the purpose and importance of workforce planning

AC 2.1

Analyse the impact of effective workforce planning

Cover the key elements: forecasting demand for labour, forecasting internal and external supply, identifying and analysing gaps between supply and demand, and developing strategies to address those gaps. The word 'analyse' means the marker wants you to examine how effective workforce planning impacts organisational performance — not just describe the process. What happens when it is done well, and what are the consequences when it is neglected?

AC 2.2

Evaluate the techniques used to support the process of workforce planning

Cover demand forecasting techniques (managerial judgement, working back from costs, systemic approaches) and the data used to forecast supply (promotion/demotion rates, transfer rates, employee turnover rates, factors affecting external supply, critical incident analysis). The word 'evaluate' means you need to assess the strengths and limitations of each technique — when is each most appropriate, and what are the risks of relying on any single method?

AC 2.3

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

Cover both recruitment methods (internal/external, formal/informal, agencies, social media, job boards, educational liaison) and selection methods (application screening, interviews, ability and personality testing, references, work samples, trial shifts, assessment centres). Critically evaluate each — discussing validity, reliability, fairness, cost, and the impact of new technologies. The marker wants balanced evaluation, including how to conduct fair and objective assessment and ensure diversity and equal access.

Learning Outcome 3: Understand the impact of employee turnover and the benefits of retention

AC 3.1

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

Cover the distinctions between voluntary and involuntary turnover, and between avoidable and unavoidable turnover. Discuss push factors (poor management, lack of development, low pay, poor culture) and pull factors (better opportunities elsewhere, career change, relocation). The marker wants a genuine discussion of the complex, often interacting reasons behind turnover decisions — not just a list of factors.

AC 3.2

Compare different approaches to retaining people

Cover a range of retention strategies: appraisal systems, training and development, lateral moves, flexible working and work-life balance, workplace characteristics, fair and equitable reward, career breaks, realistic job previews, and job enrichment. The word 'compare' means you need to assess relative effectiveness — which approaches work best in different contexts, and what are the trade-offs? The marker wants analysis, not just description.

AC 3.3

Explain the impact of dysfunctional employee turnover

Cover both direct costs (recruitment and selection costs, processing leavers and starters, induction and initial training) and indirect costs (loss of productivity, loss of skills and knowledge, impact on team morale, loss of return on investment in the leaver). Explain methods for measuring employee turnover and why understanding these costs is essential for making the business case for retention investment.

Learning Outcome 4: Understand the importance of managing contractual arrangements and effective onboarding

AC 4.1

Assess suitable types of contractual arrangements dependent on specific workforce need

Cover the different ways work can be delivered through various contract types: employee, worker, contractor; permanent, temporary, full-time, part-time, zero-hours. Include the gig economy. The word 'assess' means the marker wants you to evaluate which contractual arrangement is most suitable for different workforce needs — matching the type of work, organisational requirements, and legal obligations to the right contract type.

AC 4.2

Explain the benefits of effective onboarding

Cover the purpose of onboarding — successful integration of new employees and reducing the risk of 'induction crisis' (early turnover). Explain specific benefits: introduction to organisational culture and norms, improved effectiveness in role, better retention, and reduced employee turnover. The marker wants you to show understanding of why a structured, thoughtful onboarding process is a critical investment, not just an administrative exercise.

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