UK

Citation

(2009), "UK", Education + Training, Vol. 51 No. 7. https://doi.org/10.1108/et.2009.00451gab.003

UK

Article Type: Research News From: Education + Training, Volume 51, Issue 7

Employee demand for skills: a review of evidence and policy

New research from the UK Commission for Employment and Skills has been published on employee demand for skills. Understanding what encourages and prevents individual's from developing their skills, and identifying the most effective skill development policies, is a key function of the UK Commission for Employment and Skills. There are a large number of adults in the UK with no or low skills and “Ambition 2020” suggests that, on current rates of progress, we will not meet the Leitch ambition to reduce this number. This report draws together the evidence on why individuals do and do not participate in skills development and, in parallel, looks at the effectiveness of policies that have been designed to encourage participation. Key points emerging from the evidence review are:

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  People with few qualifications, low-skilled people, older workers, part-time workers and those working in small or non-unionised workplaces tend to have lower than average rates of participation in skills development.

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  Barriers to individual demand for skills development include financial factors, lack of advice, information or guidance, negative influences from family or peers and a legacy of negative experiences of education. Other barriers identified in the literature include limited awareness of the potential benefits of skills development and perceived poor quality or lack of access to relevant provision.

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  Both intrinsic and extrinsic factors appear to influence individuals' investment in skills development; however, the existing evidence does not enable a clear ranking of these barriers.

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  For people who are in work, employers can play a key role in overcoming barriers to demand for skills development. This suggests that policies to promote the business case for investment in skills would have a positive impact on individual participation in skills development.

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  The “culture of learning” within the workplace appears to play an important role in influencing both employer and employee decisions about investment in skills development.

The report argues that policy initiatives need to take account of the differing motivations to undertake skills development that are associated with different groups within the population. In particular, the notion of “returns to learning, skills or qualifications” needs to be interpreted broadly, incorporating broadly financial/economic considerations and wider notions of self-esteem, health and quality of life. In particular, policy needs to address the finding that the financial returns to learning/skills/qualifications appear to be lower and less certain among lower-skilled and lower-qualified groups. This raises the possibility that qualifications reform will be helpful in clarifying the benefits of skills development for individuals and employers, and thereby help to enhance the effectiveness of financial and other support initiatives.

The full report, Employee Demand for Skills: A Review of Evidence and Policy, is available at: www.ukces.org.uk/pdf/Evidence_Report_3.pdf

Higher education participation by socio-economic class: 2009 update

The Full-Time Young Participation by Socio-Economic Class (FYPSEC) measure was introduced in 2007 and shows the proportion of young people from the top three and bottom four socio-economic classes who participate for the first time in full-time higher education, together with the difference (or “gap”) between these two participation rates. The time series has been revised in line with changes to the underlying data sources (including revised Higher Education Initial Participation Rate figures and re-weighted Labour Force Survey data) and updated with the figures for 2007/2008. The time series now covers 2002/2003 to 2007/2008.

Following the latest revisions and updates, FYPSEC now shows that over the period 2002/2003 to 2007/2008, full-time young participation for the top three socio-economic classes fell from 45.2 to 41.2 per cent, while for the bottom four socio-economic classes this has increased from 18.1 to 21.0 per cent. The socio-economic class gap between these two participation rates has consequently narrowed by 7.0 percentage points.

As this measure draws from a number of data sources and therefore contains a number of weaknesses, it should be interpreted carefully. It is recommended that the figures are used to provide trend information (i.e. change over several years) rather than fixing on year-on-year changes. Drawing conclusions from figures for individual years is not advised. The full eight-page report can be downloaded at: www.dius.gov.uk/∼/media/publications/F/fypsec_paper_2009

The graduate labour market

The latest CIPD/KPMG Labour Market Outlook report highlights a jobs market sure to strike fear into school-leavers and graduates taking first steps into the jobs market. The labour market outlook looks set to be fraught for all young people, with nearly half (45 per cent) of UK companies not planning to recruit from either of these groups.

Most hard hit are the school leavers. Only 17 per cent of employers from a sample of more than 500 plan to recruit from the pool of 16 year olds leaving school in the next three months, while a third plan to hire school-leavers at eighteen. The situation is more optimistic for graduates, underlying the advantage of university study, but still less than a half intend to recruit those leaving university this summer. On top of this, a third of employers say they have already cut the number of graduates they recruit this year.

With a striking 45 and 54 per cent of the private and voluntary sector not planning to recruit young people, the picture is somewhat rosier in the public sector with a third having no plans to recruit young people in the next three months.

Topping up with vocational qualifications

Relatedly, research suggests that as Britain's job market enters its toughest period for decades and graduate unemployment soars, growing numbers of graduates are gaining an advantage over their peers by topping up their degree with a vocational qualification. According to research by independent education foundation Edge, nearly a quarter (23 per cent) of recent graduates have already chosen to take a vocational qualification in addition to their university degree, and a further 17 per cent are considering doing so.

The results also show that while three quarters of graduates (76 per cent) believed a degree was necessary for their chosen career, 30 per cent now feel let down by their course for inadequately preparing them for the world of work, with 17 per cent saying they regret choosing the university route. Recognising their lack of work-readiness, nearly half the graduates questioned (48 per cent) said they wish employers had been more involved in their course.

The research also found that nearly two-thirds (65 per cent) believe it is a good idea for current university students to study for a vocational qualification in addition to their degree courses. Andy Powell, Chief Executive of Edge, said:

Graduates are topping up their degrees with vocational qualifications because the current system is failing to provide the skills and training that graduates need and employers so desperately want. There are many paths to success and it's time that practical training is incorporated into the curriculum at a much earlier stage to ensure young people are enter the working world with the skills they require.

Attraction and retention of graduates

Companies that want to hang on to the graduates that they have and continue to attract the best should look to their training programmes. This is the key finding from research carried out among graduates by TMP Worldwide and TARGETjobs. Almost half (43 per cent) of graduates who are in their first or second job say they would look to change jobs as soon as the economy picks up. They say the only thing that would make them reconsider is if their organisation invested in their career development. An over whelming number – just under 100 per cent – said that the amount of investment in their skills would play a big part in them deciding whether or not to move.

Despite this, a quarter of working graduates have already seen their organisations cutback on training. Neil Harrison, Head of Research and Planning at TMP Worldwide says:

The message from graduates is really quite clear – employers that fail to invest in training programmes risk losing the new recruits that they took significant time and effort to recruit and train. For now, companies might be hanging on to graduate staff because there are limited opportunities for them to move on but there is no doubt that these graduates will be off just as quick as you can say “green shoots” unless they can see that the company is developing their skills and therefore their career prospects.

The research also showed that training was considered key not just to newly working graduates but to final year students. Over 90 per cent of them believe that organisations that continue to invest in their people will come out of the recession stronger. Whilst they acknowledge that training budgets may have shrunk and will view companies claiming the opposite with some scepticism, they demand honesty about training opportunities from employers during the interview process.

Around 90 per cent of final year students broadly or definitely agree that that investment in skills development plays a major part in how they view a potential employer. Nearly, two-thirds (62 per cent) who have already secured a job offer say that they definitely agree, although those without a job offer might not be so particular with less than half (44 per cent) saying that they definitely agree to this.

TMP Worldwide conducted the research with 399 final year students and 246 early career professionals on the GTI database. The respondents are 43.5 per cent male and 56.5 per cent female. About 33 per cent are from an ethnic minority background. About 69.9 per cent are aged under 25. About 66.6 per cent have up to 300 UCAS points. About 24.4 per cent went to a private school with 71.9 per cent spending the majority of their education in a state school.

Volunteering

In the current economic climate, 53 per cent of employers believe that a volunteering position on a CV will help an applicant to stand out from the crowd, according to career experts, Inspiring Futures Foundation. Independent research carried out on behalf of the not-for-profit careers advisory service of more than 2,000 HR professionals across the UK, revealed that nearly half (48 per cent) regard a volunteering position on a CV as being as valuable as a paid job.

Carl Gilleard, Chief Executive of the Association of Graduate Recruiters, and Trustee of the Inspiring Futures Foundation said:

The recession has made it very difficult to find employment, and students graduating this year, will find it especially difficult as companies continue to cut back on graduate recruitment programmes. However, volunteering, for those who are both in and out of employment, can be a good way to boost a CV and demonstrate initiative to a future employer.

Around half of employees (52 per cent) encourage volunteering either formally or informally as part of their CSR commitment, with employers believing that it demonstrates good ethics and shows initiative, as well as helping to nurture team building skills.

Other key survey findings include:

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  Only 27 per cent said degree classification would help a candidate stand out from the crowd.

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  Of the employers, 20 per cent, are considering encouraging volunteering in their company.

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  Of the employers, 41 per cent, surveyed in London said that volunteering would help a candidate's CV stand out.

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  A third of companies in the North East believe that volunteering experience should not be included on a CV when applying for graduate level jobs.

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  While 27 per cent of employers in the West Midlands stated that it would not make a difference.

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  Employers in Yorkshire and the Humber were the most encouraging of volunteering activities with over 16 per cent of companies surveyed already having formal volunteering opportunities in place.

The Inspiring Futures Foundation exists to help young people make informed career decisions and develop key employability skills. The Inspiring Futures programmes are accessible to all schools and individuals in the state and independent sectors. The research for The Inspiring Futures Foundation was carried out online by One Poll in May 2009. The survey was taken by 2,000 HR professionals across the UK.

More information can be found at: www.inspiringfutures.org.uk

Two-thirds of teenagers demand better financial education

Abbey has joined up with educational charity, citizenship foundation to call for greater education for 14-18 year olds on how to manage their money. The call to action comes after a poll revealed over two-thirds of teenagers (70 per cent) would like to be taught more about finance at school. With 57 per cent of respondents worrying about money and 41 per cent unaware as to the consequences of being overdrawn, there is a clear need for greater financial education in UK schools. As a result, Abbey has partnered with the Citizenship Foundation to create the “My Money, My Rights” guide for teenagers which contains simple tips and advice on organising finances.

The national poll of 3,000, 14-18 year olds reveals that 65 per cent of 14-18 year olds feel that additional qualifications are not necessarily worth getting into debt for. However, further education finance is one of the three topics that respondents said they would like to learn more on at school (37 per cent) – in addition to budgeting (48 per cent) and tax (41 per cent) indicating that students want to hear more in these areas and to make more informed decisions.

The research also reveals a gender divide. Girls are more likely to ask family members for guidance on their finances (65 vs 46 per cent) whereas boys are happier to approach a teacher (20 vs 6 per cent). Teenagers from Swansea and Glasgow are most likely to recognise they need financial education, with 87 and 84 per cent stating they would like to learn more about managing their finances at school. This is compared to Dublin, with only 28 per cent of teenagers highlighting that they would like greater understanding in this area.

The “My Money, My Rights Guide” and accompanying lesson plans can be downloaded from: www.aboutabbey.com and www.citizenshipfoundation.org.uk

The “A” level: damaged intellectual integrity?

Research from Reform, an independent, non-party think tank, raises some critical questions about the “A” level qualification. The report's Executive Summary argues:

The rise of the ersatz A-level has stymied independent study and original thought. After successfully becoming a mass market qualification in the 1980s and 1990s, A-levels underwent radical surgery in 2000 that damaged their intellectual integrity. Modularisation and mechanised marking were introduced despite the objections of universities. These changes have not widened participation – instead they have created a generation of “high maintenance students” who struggle to think for themselves. The A-level should be renewed and expanded by putting universities back in charge, and must be offered at all schools – otherwise the most deprived students will be denied an academic route out of poverty.

Intellectual integrity is not the privilege of an exclusive elite. It is the foundation of a good education. Universities, employers and students all crave the independence of mind developed through in-depth study of a coherent academic discipline, demonstrated by the fact that 46 per cent of 16 year olds now study A-levels compared to 33 per cent doing other qualifications.. The A-level is primarily a university entrance exam – 76 per cent of students who do it go on to university. Yet, universities are almost entirely marginalised in the process of setting and validating A-levels.

Reform's study focused upon English, Mathematics, History and Chemistry and shows a hollowing of A-levels, particularly since 2000. It suggests that A-levels do not encourage students to think or show flair. Students are heavily directed in answering questions with rigid marking schemes and “assessment objectives” making it clear exactly what is expected of students. Interviews with admissions tutors reveal a generation of students who struggle to study independently and think for themselves. The idea that only “elite” universities are suffering is a myth. Reform's research into some lower-ranking institutions indicates that their students too are capable of more, but are arriving at university less and less well-prepared.

The research argues that action must be taken to re-link A-levels with their strong academic heritage. Universities should take responsibility for the quality assurance of A-levels. New ersatz qualifications such as “Use of Maths” and “Critical Thinking” A-levels should be halted. The renewed A-level should be available in all schools, giving students from all backgrounds the opportunity to study genuinely thought-provoking material that equips students properly for further study and provides Britain's economy with the sound academic foundation it needs.

Bassett, D., Cawston, T., Thraves, L. and Truss, E. (2009), A New Level, Reform, London.

Economic and Social Research Council

Current funding opportunities

This year the ESRC will be investing more than £63 million in funding research and developing the resources that underpin the UK's social science base. Their schemes enable individuals and groups to pursue world-class research in academic institutions and independent research centres throughout the UK. They also fund research not linked to strategic priorities but proposed by researchers, through their research grants and research fellowships schemes. All their funding investments are selected through peer review and are assessed through end of award evaluations. A list of all research activities where applications are invited, with links to further information, application forms, etc. can be obtained from the web site: www.esrcsocietytoday.ac.uk/ESRCInfoCentre/opportunities/current_funding_opportunities/cfo_index_title.aspx

Getting research into schools

The ESRC believe that it is important for contemporary research to be made available in the classroom. That is why, they have created a series of information sheets to be used by both students and teachers. The web site will be regularly updated as more resources become available but by clicking on the heading “getting research into schools” you can access the current information sheets for use within school's and a number of case studies about “what do social scientists do”. Putting the ESRC in context can be found at: www.esrc.ac.uk/ESRCInfoCentre/about/esrccontext/sciencesociety/index.aspx

Placements

The ESRC has established a scheme through the management of Step Enterprise Ltd to offer under-graduate and post-graduate social science students the opportunity to undertake eight-week placements during the summer months in small to medium sized enterprises; social enterprises; local authorities and third sector organisations. Placement projects focus on supporting organisations with their research, strategy or business development requirements and provide an opportunity for students to develop their skills outside of an academic environment. Previous SSWEP projects have included:

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  compilation of marketing strategies;

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  undertaking feasibility studies;

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  research and analysis;

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  business planning and evaluation;

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  database development; and

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  web site design.

All eligible companies/organisations with a potential placement project and all ESRC funded postgraduate students are eligible to apply. The scheme is also open to all second/third year under graduate students and non-ESRC funded postgraduates studying a degree/PhD course in a range of social science disciplines.

For further information, please contact: laura.ringham@esrc.ac.uk