Employer engagement – making a reality of policy

Deian Hopkin

Chair, Universities UK Skills Task Group

Main themes

1. Understanding the demand

2. What are the challenges generally?

3. How does the sector respond?

HEFCE strategy

involvement of HE with the sector skills agenda and regional skills infrastructure and brokerage

co-funding of HE provision between HEFCE and employers

measures to support greater flexibility in provision quality assurance issues concerning customized and

workplace learning supporting increasing employer and workforce needs for

continuing professional development at higher levels the costs associated with workplace learning; and the

contribution of e-learning and technology more widely.

HEFCE May 2006

Current engagement

HEIF Knowledge Transfer Partnerships Contract research and consultancy CPD Sponsored programmes Sandwich degrees Advisory Boards

1. Understanding the Demand

Some recent evidence

Experian survey for London Skills and Employment Board, 2007

CIPD Learning and Development Survey, 2006 National Employers Skills Surveys, LSC, 2007 Federation of Small business survey CBI Business-Links annual survey Council for Industry and Higher Education

publications

What the evidence tells us…

Less interest generally in qualification than in specific training. Large companies four times more likely to deal with HEIs than

small companies (64%-15%) Only 1/3 of small companies offer any training and only 14%

training to qualification Only 14% of part-time students at HEIs have fees paid by

employer.......... and only 1% of full-time students Low level of understanding of what HEIs can offer employers

directly Dissatisfaction with the location and the price of HE provision And relatively low level of engagement between HEIs and Sector

Skills Councils

Example: What do London’s employers think?

2051 employers surveyed by Experian Representative of sectors and size Weighted for size Quantitative as well as qualitative survey

Experian study of employers 2007

Q. Which of the following sources does your organisation use to provide training and development?

Q. How satisfied were you with the quality of the training and development services you received?

Q. How important are the following type of qualification and skill for your organisation?

2. The challenges

For HE

Locating the employer and understanding the real demand

Negotiating provision to meet the demand Estimating cost and agreeing price Developing and delivering appropriate

provision Measuring effectiveness Ensuring sustainability

For the Employer

Understanding the offer from HE Navigating the complex funding

arrangements Locating the appropriate provider Overcoming a distrust of the public sector Finding a product which meets the demand Getting the right delivery in the right location Resisting the temptation to import skills

15

DIUSNational

Regional

Local

DWP HMTDBERR

HEFCE Jobcentre Plus

SBSLSC

London Skills and Employment Board

GLA

LDA

LSC

JobcentrePlus

HEFCE

Sector Skills Councils

Local Authorities FE colleges

National Target Frameworks

• Complicated funding and target framework across many layers• Fragmented brokerage arrangements for individuals and businesses

Private providers

VCSSixth Form

CollegesAcademies Nat Skills Academies

Broker

Broker

Broker

Universities

3. Responses – national, regional, local

HEFCE Strategy Regional Responses Institutional responses An employer case study

Regional Case study: London Higher Level Skills Project

A strategic approach towards employer engagement in London

Partners: London First, London Higher, Learning and Skills Network.

Funder: HEFCE SDF grant.

Guided by London Higher Skills Board (LHSB), comprising business and HE partners (plus HEFCE Observers)

3 current research strands:

(i) understanding the demand from employers for higher level skills (HLS) in London;

(ii) understanding the supply of HLS provision in London; (iii) strategic solutions to the issues identified in (i) and (ii).

Institutional case study:An Employer Engagement Unit

Revenue grant from HEFCE over 3 years Additional Student Numbers 50% employer co-funded Initially targeted at specific sectors linked to

existing core academic provision Partnership with individual employers Aligns with long-term institutional strategy.

Staff Development

Teaching and

Learning

Quality

Information Services

Research and

Business Development

Faculties

Student Services

Incl. Job Shop

Admissions

Employer Engagement

Unit

The key elements in the relationship

EMPLOYERS

Employer Case Study: Transport for London

Major developments agreed including Olympics, Cross Rail, European links, London Underground developments

Age profile of engineers problematic Shortage in specific, highly technical areas. Diminishing supply from schools and colleges

Source:- OGC 2006

UK Construction Output(Source OGC/ Experian 2006)

0

20000

40000

60000

80000

100000

120000

£ M

illio

ns

(2

00

0 P

ric

es

)

All UK New Works Maintenance/ Refurb etc

Future demand in transport construction and maintenance

2007

0

5000

10000

15000

20000

25000

30000

1988

2004

Chartered Engineers – Age Profile 1988-2005

Over 60in 2005

0

1000

2000

3000

4000

5000

6000

7000

No

s o

f P

eo

ple

(F

TE

)

05/06 06/07 07/08 08/09 09/10

5 yr Total TfL Resource Demand - Railincludes LUL (PPP's and PFI's), London Rail & DLR - excludes Crossrail

Safety & SecurityEngineering

Assurance Engineering

Premises Engineering

Fire Engineering**

Systems Engineering**

E & M Engineering**

CommunicationsEngineering

Pow er Engineering**

Signals Engineering**

Rolling StockEngineering**

Civils & StructuresEngineering

Track Engineering**

Commercial Management

Project Management

The growth in demand

Transport for London – Potential Skills Shortages

Streets, Surface CongestionCharging and Major Projects

Traffic Signalling Engineers CCTV Engineers Communication engineers Certain types of IT engineers Traffic engineering skills in general Project Managers/ Engineering

Project Managers Network Assessment Engineers Environmental teams Transport Planning and modelling Behavioural response modelling Revenue and timetable modelling Land use planning Case management skills associated

with TWA bills etc

London Underground, Crossrail and Major Projects

Specialist Tunnelling Resource Permanent Way Engineers Project Managers/ Engineering Project

Managers Signalling Engineers Line Upgrade Engineers Communication Engineers Power Engineers Rolling Stock Engineers Systems Engineers Fire Engineers M&E Engineers Specialist Tramway engineering and

operations resource

Meeting the challenge – short and long term

Improved Advice and Guidance Raise aspirations e.g. Aim Higher; Lifelong Learning networks;

London Engineering Programme (HEFCE) New progression routes to HE for younger students e.g. 14-19 Diploma; Apprenticeships Foundation Degrees and Work-based learning Enhanced CPD in the workplace Specific employer co-funded programmes

Some exemplar programmes

Derby and Rolls Royce (Motor Engineering) Southampton and the Institution of Civil Engineers (Civil

Engineering) Kingston and KLM (Aircraft Engineering) Liverpool John Moores and United Utilities LSBU and EDF Energy (Electrical Eng.) Pathfinder Brokerage agreements (e.g. North West) Business Link (Hertfordshire)

….and many more

What next?

Learn the lessons of Train to Gain Pathfinder projects

Engage with Sector Skills Councils and the SS Agreements

In particular engage with the 14-19 Diploma consortia and Apprenticeships

Develop Foundation Degrees portfolio Expand CPD Make access to HE provision simpler

What policy drivers can help?

Expand enterprise programmes including KTP and HEIF

Reward wider engagement with business and industry including work with SMEs

Ensure HE involvement in re-licensed SSC Extend the Skills Pledge to level 4 and above Incentivise employers to invest in HE

capacity Learn from each other.

The internal challenge

Costing and pricing Determining the employer contribution Harmonising different services – academic and

support/professional Developing new approaches to the curriculum in the

light of demand New modular ladders to progression consistent with

quality Providing the right incentives and rewards Changing the culture?

‘…all HE institutions need to grow their capacity to engage on a large scale with employers in ways adapted to their different profiles and missions’

Leitch Implementation Plan, 2007

Thank You

Questions and discussion