Preparation for the tasks

• §  At the start of your assignment, you are encouraged to plan your assessment work and seek guidance and advice where you are unsure using the Course forum or Ask the tutor forum
• §  Refer to the indicative content in the unit to guide and support your evidence
• §  Pay attention to how your evidence is presented. Remember you are working in the PeoplePractice Team
• §  Ensure that the evidence generated for this assessment remains your own work
  

  You will also benefit from

• §  completing the activities on the VLE
• §  reflecting on your own experiences of learning opportunities and continuous professionaldevelopment
• §  reading the CIPD Insight, factsheets and related online material on these topics as well as key research authors on the subject

Task

You work for a large organisation that has just completed a restructure of its people function. You work in the resourcing team having previously specialised in employment relations. Your new manager is an experienced resourcing specialist and is delivering a webinar at a forthcoming CIPD branch event. The event is popular, with many bookings made. When participants make a booking, they are asked to include questions they would like answers to.

Your manager is keen to develop your knowledge of talent management and workforce planning and has asked you to prepare full written answers to the 15 questions the participants have raised. The questions are varied, and you want to impress your new manager with your answers as well as your ability to independently research any areas you are unfamiliar with. The questions will be answered during the webinar, so it is important your answers are focused, clear and concise.

In addition, you should make appropriate use of academic theory and practical examples to expand your responses and illustrate key points. Please ensure that any references and sources drawn upon are acknowledged correctly and supported by a bibliography.

To help the reader, please make use of headings and assessment criteria references to signpost the assessment criteria being addressed.

The 15 questions follow.

1. How can organisations strategically position themselves in competitive labour markets? (AC 1.1)
2. What is the impact of changing labour market conditions on resourcing decisions? (AC 1.2)
3. What is the role of government, employers and trade unions in ensuring future skills needs are met? (AC 1.3)
4. I am new to people practice and have heard that workforce planning is important. Before I try to convince others of this, I welcome the views of someone with more experience. Could you analyse the impact of effective workforce planning? (AC 2.1)
5. I want to introduce workforce planning in my organisation but I’m unsure which technique/s to use. Could you evaluate the techniques used to support the process of workforce planning? (AC 2.2)
6. Could you explain two approaches to succession and contingency planning aimed at mitigating workforce risks? (AC 2.3)
7. I tend to advertise all vacancies on our organisation’s website, then managers interview applicants. I would like to consider other recruitment and selection methods. Could you briefly assess the strengths and weaknesses of these methods as well as one other recruitment method and one other selection method? (AC 2.4)
8. I am aware employee turnover rates vary from one organisation to another but what turnover and retention trends exist and what factors influence why people choose to leave or remain? (AC 3.1)
9. I want to compare different approaches to developing and retaining talent on an individual and group level. Could you give me some pointers? (AC 3.2)
10. Could you evaluate approaches that an organisation can take to build and support different talent pools? (AC 3.3)

11. Could you evaluate two benefits of diversity in building and supporting talent pools? (AC 3.4)
12. I am trying to persuade managers in my organisation to take employee turnover more seriously but have been unsuccessful. Could you explain the impact associated with dysfunctional employee turnover? (AC 3.5)
13. Could you assess suitable types of contractual arrangements dependent on specific workforce need? (AC 4.1)
14. I have heard there are different types of terms in contracts – surely a term is a term. Can you differentiate between express terms and implied terms? (AC 4.2)
15. Could you explain the components and two benefits of effective onboarding? (AC 4.3)

5HR02 ASSIGNMENT ANSWERS

Talent Management and Workforce Planning: Information Sheet

Strategic Positioning in Competitive Labour Markets

There are a number of approaches that can be implemented by organisations to strategically position themselves in competitive labour markets:

• Employer branding – according to CIPD (2022), an employer brand is crucial in strategic positioning of an organisation as it acts as the distinguishing factor in the labour market. This enables the organisation to attract, hire, retain, and engage suitable individuals thus making it competitive for top talent and enabling it to establish trustworthiness..
• Talent pipelines.  This entails developing a supply of potential talent. This could involve graduate schemes, apprenticeships, internships, work experience, and links with education providers (CIPD, 2023a, 2023b).
• Proactive recruiting – This entails proactively recruiting through methods such as talent pooling and nurturing passive candidates which results in fast filling of vacancies (Nilsson and Ellström, 2012). This can also be achieved by utilising social media platforms and employee referrals.
• External partnerships – an organisation can widen its access to talent pools by partnering with recruitment agencies and professional bodies and education providers (Wash, 2023).
• Analytics – according to Álvarez-Gutiérrez et al. (2022) implementation of workforce analytics helps organisations to identify current and future skills gaps which in turn helps HRs develop strategies to fill the identified gaps.
• Candidate experience – if an organisation provides an outstanding recruitment and on-boarding experience, the candidates feel that hey matter thereby giving the organisation a competitive edge in the market (CIPD, 2023a).
• Innovation in job design – in markets where talent is limited changing the job design such as providing agile working, flexible hours and locations can provide a competitive edge in the market (CIPD, 2023a).

Impact of changing labour market conditions on resourcing decisions (AC 1.2)

The conditions of the labour market conditions have a significant impact on an organisation’s resourcing strategies and decisions as demonstrated below:

• Demographic changes – Changes of in the demographics can greatly influence the talent pool and result in shortages or excesses in certain roles. For example, a population composed of elderly people or a population that has been affected migration can be significantly affected in terms of the size and composition of available workforce. As a result, it is imperative that organisations focus on filling roles with shortages or focus on development to upskill internal candidates (Noack, 2017).
• Skills shortages – in cases where there is a scarcity of available skills in the labour market competition for people with those skills stiffens. In such cases it would be prudent for organisations to invest in learning and development, put an emphasis on retention, or expand their talent pools (CIPD, 2021).
• Employment rates – the rates of employment and unemployment can affects an organisation’s choice of available candidate choice (Torrington et al, 2020).
• Labour costs – according to Armstrong and Taylor, (2020) talent scarcity leads to increased salary expectations and talent abundance gives organisations the powers to implement tighter cost control.
• Government policy – it is important for organisations be cognisant of any changes government policies that areas such as migration, education funding, or minimum wage which have a significant impact on the labour supply dynamics. (CIPD, 2023a).
• Technology – in the contemporary society, technology has a lot of influce on skills demand. As a result workforce planning should factor in technological changes (CIPD, 2023c).

The role of government, employers and trade unions in meeting future skills needs (AC 1.3)

In order to meet the needs of future skills government, employers, and trade unions are required to play certain roles as discussed below

• Government – it is the government’s responsibility to provide policies, offer funding to enable skills development, and collect data on the needs of the labour market. Some of the initiatives that can be implemented to achieve these goals include apprenticeships, vocational education, and reskilling programmes for those affected by technology changes (Kochan and Dyer, 2020)
• Employers – it is the employers’ responsibility to assess skills gaps in the workforce, offer on-the-job training, design a work environment that promotes productivity and learning, and provide the education sector with proposals for changes in the curriculum (Kochan and Dyer, 2020)
• Trade unions – It is the responsibility of trade unions to represent the interests the workforce,  negotiate agreements with employers on matters of skills development and give recommendations to the government on skills policies (Kochan and Dyer, 2020)

In order to catalyse the chances of meeting the goals of future skills needs, multi-stakeholder partnerships can also be implemented. Some examples of such partnerships include:

• Sector Skills Councils – this entails a collaboration between employers, trade unions and other industry stakeholders in a bid to identify skills priorities (Payne, 2008).
• Local enterprise partnerships – this entails a collaboration between employers, local government and education institutions in a bid to address skills gaps in the workforce of particular regions (Pugalis et al 2015).

• Union Learning – this entails putting measures in place to help union representatives to negotiate and broker deals with employers (Kochan and Dyer, 2020)

Analysing the impact of effective workforce planning (AC 2.1)

Workforce planning refers to a deliberate process implemented to align business goals with future needs of the people. When done efficiently, workforce planning has the potential to bring about the following impact to the organisation:

• Improving agility of the business – Through Workforce planning the organisation is able to forecast the skills and capabilities needed for changing strategies which ultimately equips it with adaptability and resilience (Ajgaonkar, Neelam and Wiemann, 2021)
• Optimising costs – According to Armstrong and Taylor, (2020), Workforce planning allows the organisation to analysing supply and demand which influences the workforce numbers and wiser investments in talent pipelines
• Increasing workforce capability – Workforce planning enables the organisation to identifying skills gaps and give emphasis to the future development (Torrington et al, 2021).
• Focusing recruitment – Workforce planning enables the organisation to understand future requirements and implement talent attraction endeavours for critical roles (Nilsson and Ellström, 2012).
• Improving retention – Workforce planning provides development and career opportunities for employees which in turn, facilitates retention of top talent (CIPD, 2023b).
• Informing restructures – Workforce planning enables the organisation to gain analytical insights which are used in the implementation of change initiatives (Álvarez-Gutiérrez et al., 2022).
• Facilitating automation – Workforce planning enables the organisation to adopt technological tools that facilitate the realization contemporary skills in the job market (CIPD, 2023c).

Workforce planning techniques (AC 2.2)

There are a number range of techniques can help in the realization of a robust workforce planning. These techniques can be categorised as either quantitative or qualitative

• Labour demand forecasting – This refers to statistical modelling that is achieved through the use of historical data to predict future growth or decline of staffing needs (Álvarez-Gutiérrez et al., 2022).
• Supply analysis – This is refers to auditing demographics, skills profiles, and turnover metrics of the current workforce in a bid to provide insights regarding the organisation’s existing talent pipelines (Armstrong and Taylor, 2020).
• Skills matrices – This technique entails charting the organisation’s current skills against the organisation’s required skills in order to identify the development needs (Torrington et al, 2021).
• Succession planning – This technique entails identifying the organisation’s key roles and identifying the potential successors of the roles in order to ensures continuity in case of future needs (Armstrong and Taylor, 2020).
• Scenario planning – This technique entails coming up with plausible guides that responds to potential scenarios that could happen in future (CIPD, 2023a).
• Strategic analysis – this entails use of tools such as PESTLE and SWOT to evaluate external and internal factors that impinge on the needs of the workforce (Henry, 2021).
• Gap analysis – this entails comparing the organisation’s current and future demand of talent in a bid to identify any surpluses and shortages (Taylor, 2021).
• Cost modelling – this entails calculation of the organisation’s financial projections in a bid to lay a foundation of some of the decisions related to workforce options (Armstrong and Taylor, 2020).
• Stakeholder consultation – this entails seeking insights from leaders, experts and employee groups in order to acquire experience-based perspectives (Kochan and Dyer, 2020).

The implementation of a combination of quantitative and qualitative techniques insights enables a rounded view of the needs of the workforce.

Approaches to succession and contingency planning (AC 2.3)

Below is a discussion of two approaches that can be used to achieve effective succession and contingency planning:

1. Talent pipelines: in this approach, the organisation proactively identifies and nurtures high potential employees with the aim of building pipelines for key roles (CIPD, 2023b). This ensures that the organisation has a ready supply of candidates who can fill out key roles in future. For this approach to work, there need to be a rigorous system of assessing potential and ongoing talent.

1. Open resourcing: in this approach, the organisation adopts an open policy of resourcing for critical positions when needs arise (Armstrong and Taylor, 2020). This means that the organisation can source for candidates internally or externally, thus widening the talent pool. The approach is however contingent on having a strong employer brand and having the impeccable talent attraction capabilities.

Assessing recruitment and selection methods (AC 2.4)

Below is a brief explanation of the strengths and weaknesses of some of the recruitment and selection methods can be adopted by an organisation:

Recruitment

• Organisational website. This method has a number of strengths which include: being cost-effective, provision of a fast mode of recruitment, and accessibility to wide audience (Armstrong and Taylor, 2020). It also has a few weaknesses such as having limited control over the quality and quantity of applicants

• Recruitment agencies. The strength of this mode of recruitment is that it provides the organization with a huge number or applicants who have expertise on the role in question. It also has a number of weaknesses such as expensive fees and it may attract candidates with no understanding of the role or the organizational culture (Taylor, 2021).
• Employee referrals. This mode of recruitment often results in acquisition of high-quality candidates and it is very cost-effective (Taylor, 2021). However, regardless of its strengths, it has its shortcomings which include a lack of diversity and it has the potential of leading to conflicts among the workforce if the referral system lacks proper management.

Selection

• Interviews: this mode of selection comes with perks such as allowing the organisation to assess candidates’ capabilities and it provides a platform for a two-way communication (Armstrong and Taylor, 2020). It however has some weaknesses such as having a potential for bias and subjectivity by the interviewers
• Assessment centres: assessment centres are renowned for their ability to deliver comprehensive evaluation for potential talents and simulate real job scenarios to enable the selection team to have a practical look at the competencies of the candidates. The implementation of assessment centres can however be resource-intensive and time-consuming which can potentially result in subjectivity during the evaluations and high costs of evaluation.

In a nutshell, organisations can diversify recruitment methods to broaden the candidate pool and use rigorous selection methods such as assessment centres to provide a more painstaking evaluation. However, it is important for organisations to balance these methods effectively based on factors such as cost, time, quality of hires, and diversity in the selection process.

Analysing turnover and retention trends and influencing factors (AC 3.1)

Some of the crucial turnover and retention trends include:

• Industry-specific Variations: the rate of turnover among employees tends to vary based on the industry. For example, the rate of turnover tends to be higher in the hospitality industry compared to the healthcare higher (Sims and Bias, 2019).
• Generational Differences: the rate of turnover also tends to vary among different generations. This can be attributed to differences in attitudes towards work and longevity in roles among the different generations. According to Torrington et al., (2022) younger generations such as the Millennials and Gen Z usually have a higher rate of turnover compared to older generations.
• Digitalisation: there is a current surge in the growth of remote working opportunities which workforce. This has expanded job opportunities as it has eliminated the geographical limitation of talent acquisition which has in turn increased the risk of turnover (Torrington et al., 2022)

Influencing factors

• Some of the common reasons cited by employees for leaving an organisation include absence of training and development opportunities, absence of opportunities for career progression, and dissatisfaction with the management (Armstrong and Taylor, 2020).
• Some of the common reasons cited by employees for staying a long time with an organisation include job satisfaction, positive relationships with colleagues, good work-life balance, and competitive compensation (Sims and Bias, 2019).
• In certain instances, turnover can be influenced by personal circumstances such as health complications, commitments such as taking care of a child or elderly parent, or relocation due to a partner’s job (Sims and Bias, 2019).

Comparing approaches to developing and retaining talent (AC 3.2)

The approaches to developing and retaining talent can be categorized in two major categories: individual and group. The individual approach, delivers talent development through methods such as mentoring, coaching, training programs, and performance feedback. The mentoring and coaching methods are often structured in the form of one-on-one relationships that where the employees are given individualised guidance and feedback based on their strengths and weaknesses (Taylor, 2021). Through training programs, the employee is facilitated to sharpen on his/her individual skills and knowledge (Taylor, 2021). The performance feedback method of talent development entails providing regular appraisals to employees to help align their personal objectives with those of the organization, which in turn results in better job satisfaction and retention (Taylor, 2021).

The group approach delivers talent development through methods team-building activities, succession planning, and knowledge sharing. The goal of team-building exercises is to improve cohesion and problem-solving skills within groups. Succession planning activities on the hand, focus on nurturing the organisation’s future leaders. The goal of knowledge sharing activities is to promote a culture of learning and innovation among groups (Armstrong and Taylor, 2020).

A comparative exploration of the two approaches shows that individual approaches give emphasis to personalized skill development and career growth while group approaches give emphasis to improvement of collaboration, teamwork, and creating a cohesive work environment. It is important to balance these two approaches as this would result in a work environment that nurture the talent of individual employees while fostering a cohesive and supportive culture for continued success.

Evaluating approaches to building and supporting talent pools (AC 3.3)

Organisations can build and support different talent pools through:

1. Internal Talent Pools:

• Succession Planning: the entails identifying and nurturing talents within the organisation in order to fill future leadership positions, which in turn helps the  organisation to ensure continuity (CIPD, 2023b).
• Cross-Training and Rotational Programs: the entails providing employees with opportunities to gain a wide range of skills and experiences which enables them to play multifaceted roles within the organisation (CIPD, 2023b).

2. External Talent Pools:

• Collaborations with Educational Institutions: this entails creating partnerships with universities or higher educational institutions to draw the interest of fresh talent and establish a channel for inducting graduates (Taylor, 2021).
• Industry Networking and Events: in this approach, the organisation engages in activities such as industry events, fairs, and networking events to draw the interest of external talent (Taylor, 2021).

3. Diversity-Centric Pools:

• Diversity and Inclusion Initiatives: this entails implementing recruitment activities geared to targeting a diverse talent pool (Taylor, 2021). This leads to creation workplace culture that supports diversity, equity, and inclusion

4. Technology and Data-Driven Approaches:

• AI-Based Recruitment Tools: this is the use to artificial intelligence tools to identify candidates whose profiles who align with the organisation’s culture and job requirements (Charlwood and Guenole, 2022).
• Data Analytics for Talent Planning: this is implementation of workforce analytics to help the organisation identify current and future skills gaps (Álvarez-Gutiérrez et al., 2022).

The choice of which approach or approaches to implement in an organisation may be dependent of a number of factors such: the approach’s effectiveness and alignment with organizational objectives, the cost and resource implications of the approach, and the long-term viability of the approach

Evaluating two benefits of diversity in talent pools (AC 3.4)

Two crucial benefits of having diversity in talent pools are:

1. Improved innovation and decision-making: as documented on CIPD, (2020) diversity in teams results in better decision making because it enables varied perspectives. This foster a work environment that is creative, innovative. According to Wash (2023) leadership has is founded on diversity results in consideration of a wider range of perspectives, risks and possibilities in the decision-making process.

1. Stronger customer connectivity: according to Armstrong and Taylor (2020) organisations that have a workforce that is as diverse as their customers have a better understanding of the diverse needs of their clientele. This usually translates into better customisation of the products, services and marketing strategies of the organisation. In addition, employer brands that embrace diversity that better chances of appealing to from a broader external talent pool (CIPD, 2022).

In summary, talent pools that are founded on the principles of diversity tend to have improved innovation and customer insight. This is attributable to the talent pool having a wider range of experiences, perspectives and needs. As a result, it is important for contemporary organisations to take into consideration the strategic benefits that accrue due adoption of diversity in the management of talent.

The impact of dysfunctional employee turnover (AC 3.5)

A dysfunctional turnover refers to a situation where a huge number of high-performing employees leave the organisation.  High levels of dysfunctional turnover have negative impacts for organisations as discussed below:

• Loss of talent and knowledge – A dysfunctional turnover leads to loss of organisation-specific expertise, which in turn compromises on the performance of the organisation (Robinson, 2019).
• Increased recruitment costs – another detriment of a dysfunctional turnover is that it leads to a significant investment of time and resources to replace the high-performing employees who leave the organisation (Armstrong and Taylor, 2020).
• Lowered productivity – since the replacement process of high-performing employees is time intensive, a dysfunctional turnover can be said to have a negative impact on operational ability of an organisation (Torrington et al., 2021).
• Cultural issues – according to Robinson (2019), a dysfunctional turnover negatively affects the organisation’s team cohesion which can lead to the demotivation of remaining staff and a general disruption of the organisations culture.
• Reputational damage – a dysfunctional turnover rates is usually attributed to shortcomings with employer brand and a poor job satisfaction in the organisation. This according to Robinson (2019) can significantly damage the reputation of the organisation if not addressed.
• Customer service disruption – replacements of employees who have left usually lack the established customer relationships of their predecessors which can result in a disruption of the organisations customer service (Taylor, 2021).

Drawing from the abovementioned detriments of a dysfunctional turnover, it is imperative that organisations implement retention strategies. This would ultimately result in the organisations significantly reducing the costs and disruption associated with a high turnover rate.

Assessing contractual arrangements for workforce needs (AC 4.1)

Contract types to suit different workforce needs as documented on Taylor, (2021):

• Permanent full-time contracts – this type of contract provides ongoing, stable roles that are pivotal to the organisation’s primary operations. Such contracts are aimed to elicit commitment from employees thereby supporting the continuity of the business.
• Fixed-term contracts – this type of contract is ideal for projects time-bound and need the skills of a specialist. Examples of projects that would require this type of a contract include: technical implementation, short-term campaign support and change management. These types of contracts offer flexibility.
• Casual/zero-hours contracts – this type of contract is ideal for businesses that have an extremely variable demand.  The contracts are designed to provide flexible resourcing for businesses mostly in sectors such as hospitality, retail, healthcare or logistics. These types of contracts allow the organisation to give pay that matches the workload of the employees.
• External consultants on temporary contracts – Bring in interim expertise for specific initiatives without adding permanent headcount. Useful for niche skills.
• Temporary agency workers – these types of contracts provide a quick source resource for short periods and are usually meant to cover absences/leaves.
• Independent contractors – these types of contracts enable the organisation to source for specialists like IT technicians, construction workers without employment obligations.
• Annualised hours / statements of service – this type of contract is mostly used in public services to give flexibility to the employees through agreed minimum and maximum hours. It provides a balance between the needs of the organisation and those of the employee.

Differentiating express from implied terms of contract (AC 4.2)

Express Terms: these refers to terms that are explicitly delineated and articulated within a contract by the parties involved (ACAS, 2023).  The terms can be articulated either through writing or verbally.

Characteristics:

• Directly Stated:  the terms are devoid of ambiguity regarding every item in the contract.
• Intentionally Included: the terms are deliberately inserted by the contracting parties during the negotiation phase of the contract.

A good example of an express term is a written a written contract that outlines the price, deliverables, and terms of payment. Another example is a verbal agreements that outlines the terms that are explicitly agreed upon in discussions, even if not they are not transcribed.

Implied Terms: these refers to terms that are not explicitly delineated and articulated within a contract but are inferred from the nature of the correspondence, and the common understanding between the contracting parties (ACAS, 2023).

Characteristics:

• Not Explicitly Stated: the terms are devoid of a well-articulated or itemized structure of agreement but are the agreement make inferences to intentions of the parties involved.
• Necessary for Efficacy: there is an overarching assumption that the terms though not explicitly stated, are essential for the contract to function effectively.

A good example of an implied terms are the terms implied by fact, which are terms that any reasonable person would deduce are part of the contract on the basis of the conditions and conduct of the parties.

Explaining components and benefits of effective on-boarding (AC 4.3)

Effective on-boarding is regarded as a pivotal process in any organization. This is because sets the tone for a new employees to establish their mood and attitude towards the organisation. Effective on-boarding is comprised of several fundamental components which if implemented bestow the organisation with a myriad of benefits in achieving successful transition for new employees.

The Components of Effective On-boarding:

1. Orientation and Familiarization: the effective on-boarding process typically has a component that entails giving new employees an overview to the organisation’s mission, vision, values, and culture (ACAS, 2015). At this stage new employees are also familiarised with their environment, team members, and other relevant stakeholders.
2. Role-Specific Training: the on-boarding process should also provide an induction of the new employees to their expected roles, responsibilities, and performance. This could sometimes extend to providing training for specific job-related skills and competencies.
3. Organizational Support and Resources: another important component of effective on-boarding is support to help the new employees settle in the new work environment. This can be achieved by assigning mentors to provide guidance and support and giving access to necessary tools, information, and systems to help the new employees to execute their duties effectively (ACAS, 2015).

Benefits of Effective On-boarding:

1. Improved Time to Productivity: if the on-boarding process is implemented effectively, it markedly reduces the time a new employee takes to become fully productive (Fiona Jane Robson, 2009)
2. Enhanced Employee Engagement and Retention: new employees who undergo effective on-boarding get a better understanding and integration of the organisation’s culture which in turn fosters a sense of belonging and commitment (ACAS, 2015). As a result, an effective on-boarding process can promote retention within the organisation owing to the positive initial experiences of new employees.

 

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