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5HR03 Reward for Performance and Contribution Assignment

Learner Assessment Brief

Assessment ID / CIPD_5HR03_26_01

Level 5 Associate Diploma in

  • People Management
  • Version 1 – Released January 2026
  • Expires June 2028
  • Study Centre information only: Last moderation window is September 2028

Please write clearly in block capitals.

Centre number:

 

Centre name:

 

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_26_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

 

Declared word count resubmission 1 – if applicable:

 

Declared word count resubmission 2 – if applicable:

 

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 2025)

`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)

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

Pay structures and pay progression (November 2025)

Pay structures give a framework for wage progression. They can also help encourage appropriate behaviours and performance. Pay progression is how employees can get pay increases. This can be either within or outside a pay structure.

This factsheet explores the purpose of pay structures. It also introduces the ones that are most often used. It considers local pay structures, identifying the main approaches to regional pay differentiation. It examines the impact of pay structures on an employee’s ability to progress and reviews the various ways used to determine pay progression.

https://www.cipd.org/uk/knowledge/factsheets/pay-structures-factsheet/

Job evaluation and market pricing (May 2025)

Job evaluation and market pricing help you gather internal and external data on roles in your organisation and equivalent jobs in other employers or sectors. Effective interpretation of this data is key to ensuring fair and competitive pay. Job evaluation and market pricing exercises must be reviewed on a regular basis. This is to ensure they reflect changes to jobs, work, and business needs.

This factsheet introduces the fundamentals of job evaluation and market pricing. It gives guidance on choosing the right type of evaluation (analytical or non-analytical) and provides examples of the sorts of factors job evaluation schemes often use. It highlights issues that organisations should consider when implementing their chosen job evaluation scheme and outlines the different approaches to market pricing. Also included is information on the various sources of pay data.

https://www.cipd.org/uk/knowledge/factsheets/market-pricing-factsheet/

Reward survey: Focus on employee benefits (February 2026)

The CIPD’s Reward survey: Focus on benefits 2026 report, supported by Everywhen, examines our survey findings on UK employer benefit practices and gives insights and recommendations to maximise the impact of your employee benefits offering and investment decisions.

https://www.cipd.org/uk/knowledge/reports/reward-survey-employee-benefits/

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.

Relevant podcasts

For more information on this unit’s key issues, listen to CIPD’s podcast, HR People Pod.

Episode 17: Determining job value Episode 42: ‘Peanut butter’ pay

Episode 44: Impact of employee benefits Episode 45: The problem with pay secrecy

Preparation for the task

You must:

  • not use artificial intelligence to suggest ideas, generate content, or structure, edit or enhance your assessment in any way, and ensure that this is your own independent work;
  • make sure you understand your Study Centre`s instructions on how to complete and submit your assessment;
  • watch the supporting video for this unit: Link to follow;
  • read the CIPD’s word count policy which your Study Centre will provide for you. Remember that your work will be referred if you exceed the word count limit (+10%).

Task

This task requires you to answer 10 questions, each relating to the case study. Your answers should respond accurately to the questions and should be informed by wider reading from key academic texts, articles and relevant publications. References should be included within each of your answers and full details presented in a bibliography at the end of your assessment.

Please ensure that your work is presented clearly, typically using the question, sub-headings or AC references to link your responses to the questions, and that your work complies with the word count requirements stated at the end of the assessment brief.

Case study

Mercy Frontier is a faith-based humanitarian aid charity that relies on donations and funding to operate. Established in 1987, based in the UK and employing more than 3,550 people in 35 countries, Mercy Frontier’s work centres on supporting people affected by climate and natural disasters, war and conflict. For example, Mercy Frontier provide essential primary healthcare services and counselling sessions to people affected by earthquakes, and early childhood development for families that have been forcibly displaced. In addition, Mercy Frontier use donations to build temporary schools so children can continue to learn when forcibly displaced. Mercy Frontier also lobby in areas such as accessing humanitarian rights and assistance, climate change and asylum rights. Mercy Frontier’s values are social justice, dignity, equality, and responsibility and these values underpin the organisation’s culture and guide decision-making.

The charity employs a diverse workforce, including field workers, administrative staff and programme managers, with the majority driven by a shared commitment to humanitarian values. The Treasury Team have an important role in ensuring liquidity, investment management and funds are available for global operations, sometimes at short notice. The Fundraising Team promotes, manages and secures donations, without which Mercy Frontier would be unable to operate.

Salaries are based on spot rates that increase slightly with each year of service up to a maximum of five years’ service. The People Team are wondering whether a spot rate is the best pay structure to use going forward and whether spot rates support equal pay.

Mercy Frontier offer a range of benefits, including 20 days paid annual leave (plus public holidays). This allowance increases by one day for every year of service, up to a maximum of five years’ service. Four additional days paid leave are also given to celebrate religious festivals associated with the faith. As these dates vary each year, these four days must be taken on the days that Mercy Frontier declares as official religious festival days. A healthcare plan is also offered to all employees. This plan covers: dental check-ups; dental x-rays; eye tests; physiotherapy, osteopathy and chiropractic treatments; and medical prescriptions. The healthcare plan is subject to limits, but these limits are generous. Mercy Frontier also enhances sick pay and pay for family-related leave such as maternity and paternity leave above the statutory levels required.

Questions

Q1. Explain the principles of reward and its importance to organisational culture and performance management at Mercy Frontier. (AC 1.1)

Q2. Assess how extrinsic and intrinsic rewards could improve employee contribution and sustained organisational performance at Mercy Frontier. (AC 1.2)

Q3. Explain the difference between spot rates, and two other types of pay structure, including which of these three pay structures is most appropriate for Mercy Frontier. (AC 2.1)

Q4. Apart from increases in pay and holiday, that are linked to service, Mercy Frontier does not offer contingent rewards. Explain whether the current contingent rewards could impact individual, team and organisational performance at Mercy Frontier and whether performance related pay should be introduced. (AC 2.2)

Q5. Explain the merits of the different benefits offered by Mercy Frontier. (AC 2.3)

Q6. Explain the merits of two different types of recognition schemes that could be offered by Mercy Frontier. (AC 2.4)

Q7. Assess internal and external factors that are likely to impact reward decisions at Mercy Frontier. (AC 3.1)

Q8. Mercy Frontier will soon be recruiting a website editor. Evaluate at least three ways in which benchmarking data can be gathered and measured to develop insight about salaries for this role in the external labour market. (AC 3.2)

Q9. Mercy Frontier are considering introducing job evaluation to support the value ‘equality’. Before making a decision, they want to know more about job evaluation and what forms it can take. Explain at least two approaches to job evaluation. (AC 3.3)

Q10. Explain two key legislative requirements that will impact reward practice at Mercy Frontier. (AC 3.4)

Your evidence must consist of:

  • Q1 to Q10 should total approximately 3900 words. The acceptable word count range for this assessment is 3510 (-10%) to 4290 words (+10%). Any assessment that exceeds 4290 words will be automatically referred, in line with the CIPD word count policy.
  • References should be included within each of your answers and full details presented in a reference list or bibliography at the end of your assessment.

Answer Checklist

You may find the following checklist helpful to make sure that you have answered all the questions. You don’t have to use it if you don’t want to.

Questions

Answered Y/N

Q1.

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

 

Q2.

Assess how extrinsic and intrinsic rewards could improve employee contribution and sustained organisational performance at Mercy Frontier. (AC 1.2)

 

Q3.

Explain the difference between spot rates, and two other types of pay structure, including which of these three pay structures is most appropriate for Mercy Frontier. (AC 2.1)

 

Q4

Apart from increases in pay and holiday, that are linked to service, Mercy Frontier does not offer contingent rewards. Explain whether the current contingent rewards could impact individual, team and organisational performance at Mercy Frontier and whether performance related pay should be introduced. (AC 2.2)

 

Q5.

Explain the merits of the different benefits offered by Mercy Frontier. (AC 2.3)

 

Q6.

Explain the merits of two different types of recognition schemes that could be offered by Mercy Frontier. (AC 2.4)

 

Q7.

Assess internal and external factors that are likely to impact reward decisions at Mercy Frontier. (AC 3.1)

 

Q8.

Mercy Frontier will soon be recruiting a website editor. Evaluate at least three ways in which benchmarking data can be gathered and measured to develop insight about salaries for this role in the external labour market. (AC 3.2)

 

Q9.

Mercy Frontier are considering introducing job evaluation to support the value ‘equality’. Before making a decision, they want to know more about job evaluation and what forms it can take. Explain at least two approaches to job evaluation. (AC 3.3)

 

Q10.

Explain two key legislative requirements that will impact reward practice at Mercy Frontier. (AC 3.4)

 

Marking Guidance for Assessors

You should mark in line with the marking descriptors set out on page 11 of this brief.

You must provide a mark from one to four for each question set. You must provide constructive, developmental feedback against each question where you award a mark of one, so refer/fail and rich summary feedback at the end of the feedback form, following the instructions provided there.

To pass the unit assessment learners must achieve a mark of two (Low Pass) or above for each of the questions. You must refer/fail them if you award a mark of one for any of the questions.

Please ensure that you use the correct terminology. Learners have three attempts at the assessment. They only ‘fail’ the assessment if they do not achieve a mark of one for any of the questions at their third attempt. Until then they are ‘referred’.

When you have marked each question, you should total the marks awarded and determine the unit outcome. The table below shows the marking bands for each outcome for this unit.

Overall mark

Unit result

0 to 19

Fail

20 to 25

Low Pass

26 to 32

Pass

33 to 40

High Pass

Please note that the unit outcome is provided:

  • to help learners understand where they are performing well and where they may need to develop
  • to help inform your teaching practice
  • for moderation purposes

The qualification is not graded and unit outcomes do not appear on learners’ certificates or statements of unit credit.

Marking Descriptors

Mark

Range

Descriptor

1

Refer/ Fail

The response DOES NOT

  • demonstrate the knowledge, understanding or skill required to meet the AC.
  • include any, or appropriate examples, where these are required to support the answer.
  • include evidence of the use of reading and research to inform the answer.
  • include at least one appropriate reference for each assessment criteria (where this is required).*
  • refer to the case study.
  • respond clearly to the question/task and is not well expressed.
  • have an appropriate format or structure which meets the requirements set out in the brief.

2

Low Pass

The response DOES

  • demonstrate the minimum level of knowledge, understanding or skill required to meet the AC.
  • include an appropriate example where this is required to support the answer.
  • include evidence of some reading and research to inform the answer.
  • include a reference for each assessment criteria (where this is required).*
  • refer to the case study.
  • respond to the question or task although it could be clearer and/or better expressed.
  • have an appropriate format or structure which meets the requirements set out in the brief.

3

Pass

The response

  • demonstrates a good level of the knowledge, understanding or skill required to meet the AC.
  • includes use of a good example or examples where these are required to support the answer.
  • includes evidence of a good level of reading and research to inform the answer.
  • includes good use of at least one reference for each assessment criteria (where this is required).*
  • makes good reference to the case study.
  • directly addresses the question/task and is well expressed.
  • · has a good format or structure which meets the requirements set out in the brief.

4

High Pass

The response

  • demonstrates an excellent level of the knowledge, understanding or skill required to meet the AC.
  • includes use of an excellent example or examples where these are required to support the answer.
  • includes evidence of extensive reading and research to inform the answer.
  • includes excellent use of at least one reference for each assessment criteria (where this is required).*
  • makes excellent reference to the case study.
  • responds very clearly to the question/task and is particularly well expressed.
  • has an excellent format or structure which meets the requirements set out in the brief.

 

*Not all ACs in each unit need a reference. If they don’t, the brief will say so. All ACs in Unit 5HR03 require a reference. References should be presented using a recognised form of referencing. For example, if using Harvard referencing, this would include in-text citations and a list of references or bibliography at the end of the assessment.

Marking grid and feedback for learner

Unit 5HR03: Assessor Feedback to Learner

Centre number

 

Centre name

 

Learner number (1st 7 digits of CIPD Membership number)

 

Learner surname

 

Learner other names (e.g. first name and middle name(s))

 

Reported word count

Submission

 

Actual word count

Submission

 

Reported word count

Resubmission 1

 

Actual word count

Resubmission 1

 

Reported word count

Resubmission 2

 

Actual word count

Resubmission 2

 

Note to Assessor – Please enter a mark for each AC. You need only provide feedback where you have awarded a mark of 1. This feedback should be developmental.

TASK

Question Number

Question

Mark 1-4

Q1.

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

 

Assessor feedback first submission (if applicable)

 

Assessor feedback resubmission 1 (if applicable)

 

Assessor feedback resubmission 2 (if applicable)

 

Q2.

Assess how extrinsic and intrinsic rewards could improve employee contribution and sustained organisational performance at Mercy Frontier. (AC 1.2)

 

Assessor feedback first submission (if applicable)

 

Assessor feedback resubmission 1 (if applicable)

 

Assessor feedback resubmission 2 (if applicable)

 

Q3.

Explain the difference between spot rates, and two other types of pay structure, including which of these three pay structures is most appropriate for Mercy Frontier. (AC 2.1)

 

Assessor feedback first submission (if applicable)

 

Assessor feedback resubmission 1 (if applicable)

 

Assessor feedback resubmission 2 (if applicable)

 

 

 

 

Q4.

Apart from increases in pay and holiday, that are linked to service, Mercy Frontier does not offer contingent rewards. Explain whether the current contingent rewards could impact individual, team and organisational performance at Mercy Frontier and whether performance related pay should be introduced. (AC 2.2)

 

Assessor feedback first submission (if applicable)

 

Assessor feedback resubmission 1 (if applicable)

 

Assessor feedback resubmission 2 (if applicable)

 

Q5.

Explain the merits of the different benefits offered by Mercy Frontier. (AC 2.3)

 

Assessor feedback first submission (if applicable)

 

Assessor feedback resubmission 1 (if applicable)

 

Assessor feedback resubmission 2 (if applicable)

 

Q6.

Explain the merits of two different types of recognition schemes that could be offered by Mercy Frontier. (AC 2.4)

 

Assessor feedback first submission (if applicable)

 

Assessor feedback resubmission 1 (if applicable)

 

Assessor feedback resubmission 2 (if applicable)

 

Q7.

Assess internal and external factors that are likely to impact reward decisions at Mercy Frontier. (AC 3.1)

 

Assessor feedback first submission (if applicable)

 

Assessor feedback resubmission 1 (if applicable)

 

Assessor feedback resubmission 2 (if applicable)

 

Q8.

Mercy Frontier will soon be recruiting a website editor. Evaluate at least three ways in which benchmarking data can be gathered and measured to develop insight about salaries for this role in the external labour market. (AC 3.2)

 

Assessor feedback first submission (if applicable)

 

Assessor feedback resubmission 1 (if applicable)

 

Assessor feedback resubmission 2 (if applicable)

 

Q9.

Mercy Frontier are considering introducing job evaluation to support the value ‘equality’. Before making a decision, they want to know more about job evaluation and what forms it can take. Explain at least two approaches to job evaluation. (AC 3.3)

 

Assessor feedback first submission (if applicable)

 

 

 

 

Assessor feedback resubmission 1 (if applicable)

 

Assessor feedback resubmission 2 (if applicable)

 

Q10.

Explain two key legislative requirements that will impact reward practice at Mercy Frontier. (AC 3.4)

 

Assessor feedback first submission (if applicable)

 

Assessor feedback resubmission 1 (if applicable)

 

Assessor feedback resubmission 2 (if applicable)

 

Total marks for TASK

 

Total marks for TASK (resubmission 1 if applicable)

 

Total marks for TASK (resubmission 2 if applicable)

 

Total marks for UNIT

 

Grade

 

Total marks for UNIT (resubmission 1 if applicable)

 

Grade (resubmission 1 if applicable)

 

Total marks for UNIT (resubmission 2 if applicable)

 

Grade (resubmission 2 if applicable)

 

Assessor Feedback Summary Please use this box to summarise your feedback on the assessment overall. This should highlight strengths and any areas for improvement, either referring to specific ACs or commenting more generally across the assessment. (Note: developmental feedback on any ACs awarded a mark of 1 should have already been provided in the relevant box of the assessment form above. Please use a different font colour for any resubmission comments)

 

 

Submission

Resubmission 1

Resubmission 2

Assessor name

 

 

 
           

Assessor signature*

I confirm that I am satisfied that to the best of my knowledge, the work produced is solely that of the learner.

 

 

 

Date

 

 

 
*This must be a true signature, so a handwritten signature, or a photo or scan of a handwritten signature, or an e-signature. A typed signature is not acceptable.

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5HR03 Question Breakdown

QuestionTopicWhat the answer must not miss
Q1 Reward principles, culture and performance management Link reward to Mercy Frontier’s values: social justice, dignity, equality and responsibility. Do not write a general reward definition.
Q2 Extrinsic and intrinsic reward Compare pay/benefits with mission, recognition, purpose and humanitarian commitment. The charity context matters.
Q3 Spot rates and pay structures Explain spot rates against two other structures, then decide what suits a global charity with equal pay concerns.
Q4 Contingent reward and performance-related pay Do not jump straight to “introduce bonuses.” Consider whether PRP fits a faith-based humanitarian charity.
Q5 Employee benefits Discuss the actual benefits: annual leave, service-linked leave, religious festival days, healthcare, enhanced sick pay and family leave.
Q6 Recognition schemes Suggest schemes that fit humanitarian work, not sales-style rewards. Recognition should support values and contribution.
Q7 Internal and external reward factors Include donations, funding pressure, global operations, labour markets, charity values and reward affordability.
Q8 Benchmarking for website editor salary Focus on the website editor role and external labour market data. Do not write generic benchmarking theory.
Q9 Job evaluation Link job evaluation to Mercy Frontier’s value of equality and the concern around spot rates.
Q10 Reward legislation Choose legislation that directly affects reward practice, such as equality/equal pay and working time/family pay rules.

Students often answer Q1 as if reward only means pay. In this brief, reward has to be linked to Mercy Frontier’s culture, faith-led humanitarian purpose, performance management and values of social justice, dignity, equality and responsibility.

For Q2, they list extrinsic and intrinsic rewards but do not explain the charity tension. Mercy Frontier relies on donations and funding, so expensive financial rewards may not always fit. Intrinsic reward, purpose, recognition and development may carry more weight for field workers, programme managers and fundraising staff.

For Q3, they define spot rates but do not challenge whether service-linked increases up to five years support equality or progression. The question asks which pay structure is most appropriate, so the answer needs a decision, not just three definitions.

For Q4, students often say performance-related pay improves motivation. That is too simple for this case. Mercy Frontier’s work includes disaster support, healthcare, counselling, temporary schools and advocacy, so individual PRP could damage teamwork or push the wrong behaviours if badly designed.

For Q5, they describe benefits generally instead of using the actual package in the brief: 20 days leave plus public holidays, extra leave by service, four religious festival days, healthcare cover, enhanced sick pay and enhanced family-related leave.

For Q8, they write about benchmarking in broad HR terms. The question is about recruiting a website editor, so the answer must explain how salary data can be gathered and measured for that specific role in the external labour market.

For Q9, they explain job evaluation but forget why Mercy Frontier is considering it: to support the value of equality and review whether reward decisions are fair.

Example Answer of 5HR03 Reward for Performance and Contribution Assignment

Note before example:

This short example shows how Q1 can be linked to the Mercy Frontier case study. It is not a full submission answer. A complete answer should follow the study-centre instructions, word count and referencing requirements.

Example:

Q1. AC 1.1 Explain the principles of reward and its importance to organisational culture and performance management at Mercy Frontier

Reward at Mercy Frontier should be treated as a way of protecting the charity’s values and performance, not only as a pay system. The organisation relies on donations and funding, employs more than 3,550 people in 35 countries and delivers humanitarian support in areas affected by disaster, conflict and displacement. This means reward decisions must be fair, affordable, transparent and linked to contribution, because poor reward choices could damage both employee trust and donor confidence.

One important principle is fairness. Mercy Frontier currently uses spot rates that rise slightly with each year of service up to five years. This is simple and predictable, but it may not fully reflect job value, role pressure or contribution across field workers, Treasury staff, Fundraising staff and programme managers. Adams’ equity theory argues that employees judge fairness by comparing their inputs and outcomes with others (Adams, 1965). In Mercy Frontier, this matters because “equality” is one of the stated values. If staff believe service length is rewarded more clearly than responsibility, skill or impact, the reward system may weaken the culture it is meant to support.

A second principle is alignment. Reward should support the behaviours Mercy Frontier needs: responsible use of donated funds, quick global response, teamwork, service quality and commitment to vulnerable communities. Armstrong and Brown (2023) link reward management with organisational, team and individual performance, including both financial and non-financial rewards. For Mercy Frontier, this means pay is only one part of reward. Healthcare cover, enhanced sick pay, enhanced family leave and paid religious festival days can support dignity and responsibility in practice.

Reward is also important to performance management. CIPD explains that performance management should encourage continuous improvement in skills, behaviours and contribution (CIPD, 2025). At Mercy Frontier, a reward approach based only on service-linked increases may not give managers enough room to recognise strong contribution or team impact. However, direct performance-related pay may also be risky if it encourages competition in humanitarian work. A better approach would be to combine fair pay, meaningful benefits and values-based recognition.

Overall, reward at Mercy Frontier should reinforce culture and performance by balancing affordability, fairness, contribution and humanitarian purpose. The strongest reward system would help the charity keep skilled people while showing that its internal treatment of employees matches its public values of social justice, dignity, equality and responsibility.

Harvard Reference List

Adams, J.S. (1965) ‘Inequity in social exchange’, in Berkowitz, L. (ed.) Advances in Experimental Social Psychology. Vol. 2. New York: Academic Press, pp. 267–299.

Armstrong, M. and Brown, D. (2023) Armstrong’s Handbook of Reward Management Practice: Improving Performance Through Reward. 7th edn. London: Kogan Page.

CIPD (2025) Performance management. Available at: CIPD website.

CIPD (2025) Strategic reward and total reward. Available at: CIPD website.

Need answers to your 5HR03 assignment? Send the PDF, deadline and study-centre notes through our CIPD assignment help page. We can prepare the 10 answers around Mercy Frontier, the ACs, reward sources, case-study details and the required word-count range.

Disclaimer: CIPD is a registered trademark of its owner. We are not affiliated with or endorsed by CIPD. Students should follow their study centre’s 5HR03 assessment and submission rules.