CIPD_5HR03_24_01 CIPD Level 5 Associate Diploma 5HR03 Reward for performance and contribution Learner Assessment Brief June 2026

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CIPD_5HR03_24_01 CIPD Level 5 Associate Diploma 5HR03 Reward for performance and contribution Learner Assessment Brief June 2026

University	Chartered Institute of Personnel and Development (CIPD)
Subject	5HR03 Reward for performance and contribution

Learner Assessment Brief

Assessment ID / CIPD_5HR03_24_01

Level 5 Associate Diploma in

· People Management

Please write clearly in block capitals.
Centre number:	8	7	5
Centre name:	Oakwood International LTD
Learner number (1st 7 digits of CIPD Membership number):
Learner surname:
Learner other names:

Unit code:	5HR03
Unit title:	Reward for performance and contribution
Assessment ID:	CIPD_5HR03_24_01
Assessment start date:
Assessment submission date:
First resubmission date for centre marking – if applicable
Second resubmission date for centre marking – if applicable
Declared word count You MUST add a new word count for every submission. Please use red font for submission 2 and blue font for submission 3

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5HR03 Reward for performance and contribution

This unit focuses on how internal and external business factors influence reward strategies and policies, the financial drivers of the organisation and the impact of reward costs and rewarding performances.

CIPD’s insight

Strategic reward and total reward (February 2024)

'Strategic reward' takes a long-term approach to how an organisation’s reward policies and practices balance and support the needs of both the organisation and its employees. The concept of 'total reward' covers the tangible and intangible aspects of work that people value and may form part of a reward strategy.

https://www.cipd.co.uk/knowledge/strategy/reward/strategic-total-factsheet

Performance management

Performance management is about creating a culture which encourages the continuous improvement of individuals' skills, behaviours and contributions to the organisation. It’s a key part of the relationship between staff and managers. Views on how it should be carried out to the benefit of employees and the business have changed in recent years. Here you’ll find resources on managing performance, appraisal and reviews, feedback and using competency frameworks.

https://www.cipd.co.uk/knowledge/fundamentals/people/performance

Making reward more accessible and performance management fairer (January 2022)

Making reward more accessible and performance management fairer

How can technology be used to allow better access to pay and a fairer assessment of employee performance and potential?

https://www.cipd.co.uk/knowledge/work/technology/digital-transformation-insights/reward-performance-management

Please note that the purpose of this insight is to link you to CIPD’s research and evidence within the subject area, so that you can engage with the latest thinking. It is not provided to replace the study required as part of the learning or as formative assessment material.

Preparation for the Tasks:

· At the start of your assessment, you are encouraged to plan your work with your assessor and where appropriate agree milestones so that they can help you monitor your progress.

· Refer to the indicative content in the unit to guide and support your evidence.

· Pay attention to how your evidence is presented.

· Ensure that the evidence generated for this assessment remains your own work.

You will also benefit from:

· Completing and acting on formative feedback from your assessor.

· Reflecting on your own experiences of learning opportunities and continuous professional development.

· Reading the CIPD Insight, Fact Sheets and related online material on these topics as well as key research authors on the subject.

Scenario

Eco-Insulate UK is a medium sized private sector organisation that manufactures eco-friendly thermal insulation in the UK. The Managing Director (MD), who started the company in the mid-1970s has set up a meeting with you to discuss concerns regarding increased turnover of skilled and non-skilled employees.

During the meeting you are made aware that there is no incentive scheme in operation and there is an expected level of performance broadly related to the notion of measured day work. Standard times exist and are maintained by the Finance and Administration Department.

Most employees receive 28 days paid holidays per year. All employees are included in the non-contributory pension scheme however, it’s generally known that special schemes operate for senior staff only.

The MD is aware that the overall culture and performance of the company is quite negative and that it’s time to look at offering forms of reward incentives, benefits and recognition to stimulate positive change.

In your capacity as a reward specialist practitioner, he asks you to put together a report for the senior management team that will give them knowledge and understanding of the principles and components of reward and pay, including how these might influence organisational, psychological and cultural factors. In addition, he would also like them to gain an understanding of job evaluation and market rates.

Report

To complete the report, you should include written responses to each of the 10 points below, making appropriate use of academic literature, legislation, surveys, data intelligence, research and good practical examples to substantiate your response and illustrate key points. Please ensure that you use reputable sources as indicated on the unit reading list and that all cited sources are correctly acknowledged and presented in full in a bibliography at the end of your report.

With reference to the above scenario:

1) Explain the principles of reward and its importance to organisational culture and performance management. (AC 1.1)

2) Assess the contribution of extrinsic and intrinsic rewards to improving employee contribution and sustained organisational performance. (AC 1.2)

3) Explain the differences between types of grade and pay structures. (AC 2.1)

4) Explain how contingent rewards can impact individual, team and organisational performance. (AC 2.2)

5) Explain the merits of different types of benefits offered by organisations. (AC 2.3)

6) Explain the merits of different types of recognition schemes offered by organisations. (AC 2.4)

7) Assess the business context of the reward environment. (AC 3.1)

8) Evaluate the most appropriate ways in which benchmarking data can be gathered and measured to develop insight. (AC 3.2)

9) Explain approaches to job evaluation. (AC 3.3)

10) Explain the legislative requirements that impact reward practice. (AC 3.4)

Your evidence must consist of:

· A briefing paper setting out written responses to each of the 10 instructions above.

· And be approximately 3900 words in total (refer to CIPD word count policy).

· IMPORTANT NOTE: At Associate Level Referencing is mandatory – you must provide a reference where you have drawn from a secondary source; Harvard referencing is preferable. Please use the Reference box provided to record all your long references. Short references should be included within the narrative. We advise you read the guidance on how to set out your references on the Learner Hub.

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Report – Questions

(AC1.1) Explain the principles of reward and its importance to organisational culture and performance management.