ESRC Seminar Series Stakeholder perspectives how employers trades

ESRC Seminar Series Stakeholder perspectives: how employers, trades unions and human resource management professionals see the purpose and practice of careers support in work settings WORKFORCE DEVELOPMENT 29 th March 2012 1

Business Plan for 2012 – 13 Ambition To transform the UK’s approach to investing in the skills of people as an intrinsic part of securing jobs and growth Strategic objectives • Maximise the impact of employment and skills policies and employer behaviour to support jobs and growth and secure an internationally competitive skills base • Work with businesses to develop the best market solutions which leverage greater investment in skills • Provide outstanding labour market intelligence which helps businesses and people make the best choices for them Outcomes Key to our ambition is the need to encourage greater employer ownership of skills, working to secure sustainable partnerships for the long term. Over the next 12 months Commissioners will focus on four outcomes: More employers investing in the skills of their people Assets More career opportunities for young people More employers stepping up and taking ownership of skills To secure these outcomes the Commission has five distinct assets to draw upon: Commissioner Insights & Networks Resources More collective action by employers through stronger sectors and local networks Investors in People As a small and dynamic organisation our 100 people are grouped into three professions: Research & Technical Project Delivery Business Services Supported by efficient, high quality core services Finance, HR, IT, Facilities, Procurement, Communications Investment Funds National Occupational Standards Our delivery , core services and people are supported by the following budgets for the year: Investment funds of up to £ 62 m Programme funding £ 20 m (excl investment funds) Organisation’s running costs £ 8 m

Commissioners Key: Chairman Devolved Administrations Charlie Mayfield, Chairman, John Lewis Partnership Large Employers Small/Medium Enterprises Dr Bill Mc. Ginnis CBE DL, N. Ireland Advisor, Employment and Skills Trade Unions David Fairhurst, Chief People Officer, Mc. Donalds Europe Trevor Matthews, CEO, Aviva UK Nigel Whitehead, Group Managing Director of programmes & support, BAE Systems Lucy Adams, Director of Business Operations, BBC Jeremy Anderson CBE, Chairman Global Financial Services, KPMG LLP John Cridland CBE, Director General, CBI Dave Prentis, General Secretary, UNISON Brendan Barber, General Secretary, TUC Seyi Obakin, Chief Executive, Centrepoint Liz Sayce OBE, Chief Executive, Disability Rights Lord Victor Adebowale, Chief Executive, Turning Point Sean Taggart, Owner & Chief Executive, The Albatross Group Dr. Deidre Hughes OBE, Lead Consultant, European Lifelong Guidance Policy Network Voluntary Sector FE and HE James Wates CBE, Deputy Chairman, Wates Construction Ltd Valerie Todd, Director of Talent and Resources , Crossrail Ltd Julie Kenny, CBE DL Chairman & Chief Executive, Pyronix Ltd Grahame Smith, General Secretary, Scottish Trade Union Congress Tony Lau-Walker, Chief Executive Officer, Eastleigh College Prof. John Coyne, Vice Chancellor, University of Derby

If we don’t succeed our economic renewal is at risk Our global performance is NOT world class and is falling Skills have a role to play in raising future performance Source: OECD Employment Outlook 2011 and OECD Productivity Database 2010

Geography matters Significant variations across the UK Productivity and employment in the nations and regions of the UK 5 Source: ONS

What are the key messages? : Is training investment sufficient? More training is provided to “most skilled” staff Just under half of employees miss out Only 12% of employees train to qualifications In decline and inflated by “opportunity cost” Total UK investment = £ 49 bn BUT Around 40% of employers don’t invest Varies by sector Public sector tops the league tables Non-trainers feel staff are already proficient “Trainers” say cost is key barrier to more training

More collective action by employers Key role for our Investment Funds The UK Commission’s Investment Funds will stimulate and drive employer led action leading to increased ambition and employer investment in skills. So far we have invested over £ 70 m in nearly 90 projects across 20 different employer-led organisations. Our investment has been matched by £ 19 m of direct employer investment and £ 38 m of employer in-kind support. Summaries of all projects can be seen at www. ukces. org. uk The Employer Investment Fund: The Employer Investment Fund is open only to licensed Sector Skills Councils (SSCs) and is a UK wide fund. Phase 1 delivery commenced in June 2011 and has invested in 14 projects totalling £ 5 m. Phase 2 was launched on 30 th June 2011. £ 61 m of investment has now been announced in 63 employer led projects. The Growth and Innovation Fund: The Growth and Innovation Fund (GIF) is open to all employer representative organisations (including Sector Skills Councils) and is an England only fund. In Round 1, the UK Commission has invested in 10 ‘Best Market Solutions’ totalling £ 6. 3 m for projects running until March 2013. Further GIF bidding is currently underway (appr. £ 30 m available).

Securing Employer Ownership Employer ownership pilots fund “We need to take determined steps to encourage greater Skills solutions should be designed by employer-led employer ownership of partnerships to reach more people and businesses and raise skills, working to secure a quality and support innovation sustainable partnership for Public contributions for vocational training should move to employer the long term” • Employers should have the space to own the skills agenda – leadership and commitment • • incentives and investments to support sustainable investments • Transactions should be transparent to support better evidence, outcomes (VFM) Charlie Mayfield UK Commission for Employment and Skills - Chairman 8

Opportunity to act now England fund • Up to £ 250 million employer ownership investment fund over two years • Jointly led by BIS, Df. E and UKCES • Need bold propositions from employers, in partnership with colleges and training providers 9

Career Adaptable Competencies (Bimrose et al. 2011) CONTROL CONCERN CONFIDENCE CURIOSITY COMMITMENT

Career Adaptable Competencies • Control: exerting a degree of influence on their situations • Curiosity: broadening horizons by exploring social opportunities & possibilities • Commitment: experimenting with new & different activities • Confidence: believing in yourself & ability to achieve your goal • Concern: developing a positive optimistic attitude to the future Reference: Savickas et al. (2009). Life designing: A paradigm for career construction in the 21 st Century. In Journal of Vocational Behavior, 75, 3, pp. 239 -250.

Next steps and more information • Ownership Prospectus document available from www. ukces. org. uk/employerownership • Further research information from http: //www. ukces. org. uk/ourwork/research • Further investment information from http: //www. ukces. org. uk/ourwork/investment • Research on Career Adaptability & Skills Supply http: //www. ukces. org. uk/publications/er 35 role-of-career-adaptability 12

Thank you For additional information contact: Dr Deirdre Hughes OBE Commissioner UK Commission for Employment & Skills Email: deirdre. hughes 3@btinternet. com Tel: 07533 545057 13