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Skills-shortage or surplus? by Fluid January 2010

Skills January 2010

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One-day interactive workshop designed and delievered in London to an audience of Owner/Founders from SMEs, departmental heads from public sector organisations and two individuals from charities. The session covered the recent developments regarding skills in the UK, from the perspective of organisations both encountering skills shortages and skills surpluses.

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Page 1: Skills January 2010

Skills-shortage or surplus?

by Fluid

January 2010

Page 2: Skills January 2010

Contents3-4 Introduction to Fluid5-7 Leitch review8-9 Exercise A10-11 Top 10 difficult positions to fill12-13 Main causes of skills gaps14-16 Main skills lacking where skills

shortage vacancies were identified17-19 Global talent shortage20-21 Literacy and numeracy22-23 Soft skills24-25 Government initiatives26-31 Sector Skills Councils32-33 Providers, funders and awarding

bodies34-35 Key Government departments36-37 Skills Pledge38-39 Apprenticeships40-41 Diplomas42-43 National Skills Academy44-45 Train to Gain46-47 Case studies48-49 Exercise B50-51 Conclusion and questions

Page 3: Skills January 2010

Page 3

Introduction

Page 4: Skills January 2010

Page 4

Introduction to Fluid• Fluid Consulting Limited (Fluid) is a specialist

human resources consultancy headed by Tim Holden MCIPD

• 10 years in banking• 10 years in Human Resources consultancy• Fluid trading since 2006• The core services provided by Fluid are:

- Retention- Selection- Attraction- Remuneration & Reward - Outplacement- Training & HR consultancy

Page 5: Skills January 2010

Page 5

Leitch review

Page 6: Skills January 2010

Page 6

Leitch review 1 of 2

• Strengthen employer voice• Increased employee engagement and

investment in skills• Expand skills brokerage services• Route all adult vocational skills funding

through Train to Gain and Learner Accounts by 2010

• Improved higher level skills• World Class intermediate skills

Page 7: Skills January 2010

Page 7

Leitch review 2 of 2

• Increase employer investment in Level 3, 4 and above qualifications in the workplace

• Increase people’s aspirations and awareness of the value of skills to them and their families

• Create a new integrated employment and skills system to increase sustainable employment and progression

• Develop a nationwide network of local employment and skills boards

Page 8: Skills January 2010

Page 8

Exercise A

Page 9: Skills January 2010

Page 9

Exercise A

Page 10: Skills January 2010

Page 10

Top 10 difficult positions to fill

Page 11: Skills January 2010

Page 11

Top 10 difficult positions to fill

• Skilled manual trades• Labourers• Chefs/cooks• Engineers• Admin assistants and PAs• Nurses• Management/executives• Sales representatives• IT staff• Drivers

Page 12: Skills January 2010

Page 12

Main causes of skills gaps

Page 13: Skills January 2010

Page 13

Main causes of skills gaps

• Lack of experience/recently recruited• Employees lack motivation• Failure to train and develop• Inability to keep up with change• Recruitment problems• High staff turnover

Page 14: Skills January 2010

Page 14

Main skills lacking where skills shortage

vacancies were identified

Page 15: Skills January 2010

Page 15

Main skills lacking where skills shortage vacancies were identified

1 of 2• Technical or practical skills• Oral communication skills• Customer-handling skills• Problem-solving skills• Team working skills• Written communication skills

Page 16: Skills January 2010

Page 16

Main skills lacking where skills shortage vacancies were identified

2 of 2• Management skills• Literacy• Numeracy• Office/administrative skills• IT professional skills• Foreign language skills• General IT skills

Page 17: Skills January 2010

Page 17

Global talent shortage

Page 18: Skills January 2010

Page 18

Global talent shortage 1 of 2

• CAUSES• Changing demographics• Global competition• Shifting skills requirements• Poor or ineffectual training

Page 19: Skills January 2010

Page 19

Global talent shortage 2 of 2

• HOW CAN IT BE RESOLVED?• Better workforce planning• Increased training and development• Greater use of migrant workers• Tapping into underused recruitment pools• Better qualifications and more vocational

training

Page 20: Skills January 2010

Page 20

Literacy and numeracy

Page 21: Skills January 2010

Page 21

Literacy and numeracy

• 6.8M people aren’t functionally literate• 5M people in the UK have serious difficulty

with numbers• 38% of Jobcentre Plus customers lack

functional literacy• 45% of Jobcentre Plus customers lack

functional numeracy

Page 22: Skills January 2010

Page 22

Soft skills

Page 23: Skills January 2010

Page 23

Soft skills

• Think past the traditional approach to appraisals

• Get feedback from customers and clients• Involve employees in the design of their

appraisals• Have a conversation with people about the

objectives of the organisation

Page 24: Skills January 2010

Page 24

Government initiatives

Page 25: Skills January 2010

Page 25

Government initiatives

• Increase in the number of apprentices• Diplomas• Train to Gain• The Skills Pledge• Manager’s observation• Behaviour reinforcement

Page 26: Skills January 2010

Page 26

Sector Skills Councils

Page 27: Skills January 2010

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Sector Skills Councils 1 of 5

• ASSET SKILLS, assetskills.org, 888000 people• property, housing, cleaning services and facilities

management• AUTOMOTIVE SKILLS, automotiveskills.org.uk, 521000

people• retail motor industry• COGENT, cogent-ssc.com, 422000 people• chemicals, pharmaceutical, nuclear, oil & gas, polymer• CONSTRUCTION, cskills.org, 1780000 people• construction• CREATIVE & CULTURAL SKILLS, ccskills.org.uk, 349000

people• advertising, crafts, cultural heritage, design, music,

performing, literary and visual arts

Page 28: Skills January 2010

Page 28

Sector Skills Councils 2 of 5

• E-SKILLS UK, e-skills.com, 804000 people• IT and telecoms• ENERGY & UTILITY SKILLS, euskills.co.uk, 261000 people• electricity, gas, water and waste management• FINANCIAL SERVICES SKILLS COUNCIL, fssc.org.uk, 1020000

people• financial services• GOSKILLS, goskills.org, 577000 people• passenger transport• GOVERNMENT SKILLS, government-skills.gov.uk, 937000

people• central government

Page 29: Skills January 2010

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Sector Skills Councils 3 of 5

• IMPROVE, improveltd.co.uk, 370000 people• food and drink• LANTRA, lantra.co.uk, 342000 people• environmental and land-based industries• LIFELONG LEARNING UK, lluk.org, 823000 people• education, community learning, libraries, work-based

learning & development, archives and information services• PEOPLEFIRST, people1st.co.uk, 1874000 people• hospitality, leisure, travel and tourism• PROSKILLS UK, proskills.co.uk, 371000 people• process & manufacturing in building products, coatings,

glass, printing, extractive industries and mineral processing

Page 30: Skills January 2010

Page 30

Sector Skills Councils 4 of 5• SEMTA, semta.org.uk, 1208000 people• science, engineering and manufacturing technologies• SKILLFAST-UK, skillfast-uk.org, 256000 people• fashion and textiles• SKILLS FOR CARE AND DEVELOPMENT,

skillsforcareanddevelopment.org.uk, 967000 people• social care, children, early years and young people• SKILLS FOR HEALTH, skillsforhealth.org.uk, 1730000 people• health sector• SKILLS FOR JUSTICE, skillsforjustice.com, 292000 people• Policing & law enforcement, youth justice, custodial care,

community justice, courts service, prosecution service and forensic science

Page 31: Skills January 2010

Page 31

Sector Skills Councils 5 of 5• SKILLS FOR LOGISTICS, skillsforlogistics.org, 684000 people• freight logistics and wholesaling industry• SKILLSACTIVE, skillsactive.com, 302000 people• sport, recreation, health, fitness and the caravan industry• SKILLSET, skillset.org, 213000 people• broadcast, film, video, interactive media and photo imaging• SKILLSMART RETAIL, skillsmartretail.com, 2639000 people• retail• SUMMITSKILLS, summitskills.org.uk, 381000 people• building services engineering

Page 32: Skills January 2010

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Providers, funders and awarding bodies

Page 33: Skills January 2010

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Providers, funders and awarding bodies

• Higher Education Institutions• Further Education providers• Schools• Private training providers

Page 34: Skills January 2010

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Key Government departments

Page 35: Skills January 2010

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Key Government departments

• DIUS• DCSF• BERR• DWP

Page 36: Skills January 2010

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Skills Pledge

Page 37: Skills January 2010

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Skills Pledge

• Voluntary, public commitment• Access to Train to Gain• Leitch review

Page 38: Skills January 2010

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Apprenticeships

Page 39: Skills January 2010

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Apprenticeships

• 200 types across 80 sectors• Owned by employers• Bring a competitive edge, higher

productivity, improved quality of work, reduced costs, increased employee satisfaction, strong employee career progression and a more diverse workforce

Page 40: Skills January 2010

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Diplomas

Page 41: Skills January 2010

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Diplomas

• New qualification from 2008 for 14-19 year olds combining theoretical study with practical experience, helping develop skills highly valued by employers and universities

• Input from over 5000 employers• Cover 17 disciplines• Available at three levels-Foundation,

Higher and Advanced

Page 42: Skills January 2010

Page 42

National Skills Academy

Page 43: Skills January 2010

Page 43

National Skills Academy

• Network of employer-led world-class centres of excellence, delivering the skills required by each sector of the economy

• Employers take control of the design and delivery of learning in their industry, working in partnership with Government and training providers

Page 44: Skills January 2010

Page 5

Train to Gain

Page 45: Skills January 2010

Page 6

Train to Gain

• Key recommendation of the Leitch review• Provides impartial, independent advice on

training to organisations across England• Improved productivity and

competitiveness• Skills broker carries out needs analysis• Primary target has been ‘hard to reach’

employers

Page 46: Skills January 2010

Page 5

Case studies

Page 47: Skills January 2010

Page 6

Case studies

Page 48: Skills January 2010

Page 5

Exercise B

Page 49: Skills January 2010

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Exercise B

Page 50: Skills January 2010

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Conclusion & Questions

Page 51: Skills January 2010

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Conclusion

• Summary• Questions