(Solution) CIPD 5HR02 (AC4.1) Assess suitable types of contractual arrangements dependent on specific workforce need

Solution

Permanent, Full-Time Contracts:

Job security, consistent income and being able to qualify for holidays, sick pay, and other benefits is offered through permanent, full-time jobs (Indeed Editorial Team, 2023). These contracts make it easy for ImportantParcel to attract solid staff and keep the turnover minimal as it offers stability. They are, however, less flexible when demand is fluctuating and can be expensive when the workloads go down. While they give delivery drivers peace of mind with the fixed hours and income, it may not be what one who wants flexibility requires. This contract in general is suitable to maintain a core workforce but is likely to limit the organisation’s capacity to respond to peaks and troughs of seasonality.

Zero-Hours:

ImportantParcel can use zero hours contracts, which mean that the firm can avoid paying for staff in quieter periods and only call upon worker when needed. Ideal for drivers in quest of flexibility, it can be the dream organisation for students or semi–retired workers (Gov.uk, 2024). But inconsistent hours may make you unhappy or financially unstable. From the organisational perspective, over dependence on zero hours staff undermines and reduces the loyalty and reliability of the workforce.

Temporary Contracts: ImportantParcel relies on temporary contracts during the peak seasons which allows increasing the capacity quickly. For instance, they….

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