Employer engagement – making a reality of policy

1. Employer engagement – making a reality of policy Deian Hopkin Chair, Universities UK Skills Task Group

2. Main themes 1. Understanding the demand 2. What are the challenges generally? 3. How does the sector respond?

3. 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

4. Current engagement • HEIF • Knowledge Transfer Partnerships • Contract research and consultancy • CPD • Sponsored programmes • Sandwich degrees • Advisory Boards

5. 1. Understanding the Demand

6. 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

7. 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

8. 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

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

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

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

12. 2. The challenges

13. 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

14. 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. National National Target Frameworks • Complicated funding and target framework across many layers • Fragmented brokerage arrangements for individuals and businesses DIUS DWP DBERR HMT Sector Skills Councils LSC HEFCE Jobcentre Plus SBS GLA Regional London Skills and Employment Board LDA Broker Broker LSC HEFCE Broker Local JobcentrePlus Local Authorities FE colleges Private providers Universities Sixth Form Colleges VCS Academies Nat Skills Academies

16. 3. Responses – national, regional, local • HEFCE Strategy • Regional Responses • Institutional responses • An employer case study

17. 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).

18. 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.

19. EMPLOYERS The key elements in the relationship

20. 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

21. Future demand in transport construction and maintenance 2007 Source:- OGC 2006

22. Chartered Engineers – Age Profile 1988-2005 Over 60 in 2005

23. The growth in demand

24. Transport for London – Potential Skills Shortages Streets, Surface Congestion Charging 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

25. 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

26. 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

27. 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

28. 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.

29. 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?

30. ‘…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

31. Thank You Questions and discussion