Water UK Human Resources Think Tank Developing the UK Water Industry Workforce

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Water UK Human Resources Think Tank Developing
the UK Water Industry Workforce
Thursday 5th June Hammonds, London
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David HellierWater Business Manager
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Background to GWINTO

• April 1998 GINTO started
• July 1998 GINTO was recognised as an NTO
• July 1999 GINTO became incorporated
• Feb 2000 Labour Market Investigation presented
  to members
• Feb 2000 Established Gas Industry Skills Task to
  develop strategy for gas industry
• Nov 2000 Awarded Investors in People
• Jan 2001 Took over GD registration scheme from
  CITB
• June 2001 Merged with BETWI
• Oct 2001 Water Business manager Appointed
• Jan 2002 Skills Strategy for WI published
• May 2002 Water Industry Skills Steering Groups
  established
• Sept 2002 Functional Occupational Map of WI
  completed
• May 2003 WI labour Intelligence forecasting
  commences
• Sept 2003 New Sector Skills Council for Utility
  Industries Established

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New Sector Skills Councils - Footprint
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GWINTO Our Purpose

• Delivering the means of developing workforce
  skills for the gas and water industries.
• This will enable employers to realise the full
  potential of their employees to drive business
  performance which will lead to improved
  competitiveness of the sector and, in turn, will
  be essential for national wellbeing

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The Skills Development Process
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Creating Skills and Careers in the Water Industry
Forming Key Delivery Partnerships Routes to
Work
Employers Eg.AWG, Severn Trent
L.S.Cs
Funding

• Funding
• Resources
• Knowledge
• Information

Utility Contractor
Employment Services / JCP
GWINTO
Universities
Schools
Recruits
Jobs, Careers
Training Qualifications
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Investing in the future

• He who stops being better, stops being good
• Oliver Cromwell, Lord Protector of England
  1653-58

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Investing in the future

• Investment in assets is a long term investment
• Investment in skills is a long term investment
• A complex Water Industry
• Different business models
• Water Companies and suppliers are now more
  inter-dependent.
• Water Industry Workforce development more complex
• Impact of PR04

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Investing in the future

• Organisational Changes identified in the UK Water
  Sector
• Major downsizing
• Move to multi-utility organisations
• Labour mobility between utilities
• More alliances and joint ventures
• Reduction in number of bases
• Greater levels of subcontracting
• Strategic shift in risk management
• Flatter corporate hierarchies
• Multi-skilling at managerial levels
• More contract management-less line management
• Greater use of partnering in contractual
  arrangements
• Move to lower or average age of sector
• Impact of equal opportunities on balance of the
  workforce
• More likely to lose key workers
• Need to manage greater levels of complexity
• ..excluding the implications developments in IT!

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Investing in the future (Skills)

• Small firms Investment in skills is more likely
  to be adhoc
• SMEs Gain fewer benefits for the investment
• SME constraints to skill investment
• 30 due to finance
• 30 due to availability
• 30 due to Culture
• Large Organisations Good structures, greater
  benefits identified
• Systemic approach now required across whole
  industry

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Are we heading for a skills time bomb?
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A Highly Skilled Industry
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A Reducing Workforce
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Previous level of Investment
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An Ageing Workforce
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Reducing Graduates
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Recruitment
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Is there a Skills Issue?

• Shortage of Technical Skills
• new technology
• instrument technicians
• Engineers, experienced graduate
• process control and management
• leakage management 140 leakage technicians
  alone required in the Thames Area this year
• main service laying

• Also
• Customer Service
• Team working
• Management / leadership (all UK Industry)
• Source UK skills survey 2001 / BETWI Labour
  Demand Forecast

Skills gap
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Key Demand for the Water Industry Macro level

• Net requirement to 2010 10,000 new entrants
•  4,400 administrative occupations
• 1,500 skilled metal and electrical trades
• 1,300 elementary trade, plant and storage related
  occupations
• 1,200 science and technology professionals
• 950 secretarial and related occupations
• 900 business and public service associate
  professionals.

Source Public Utility Skills Dialogue
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Key Demand for the Water Industry Micro level

• Impact of PRO4 Identified Key Issues to be
  considered
• Water main Rehabilitation
• Leakage
• Flooding

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PR04 Water main rehabilitation

• DWI estimate 25,000km of mains
• 5,000 per annum
• Also 2,270,985 lead communication pipes to be
  replaced by 2013
• Additional gas demand of 97,000 km mains
  replacement over 30 years
• 3,000 per annum
• Plus major investment programme in rail industry
• Known Skills Shortages in gas contracting.

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PR04 Water main rehabilitation

• 437 extra gangs required to match gas demand
• Projected increase in costs of over 15 due to
  supply / demand imbalance
• 728 extra gangs required to match water demand
• Projected increase in costs of over 20 due to
  total supply / demand imbalance.
• Potential cost increase of over 200 million
• Plus increase in supervisory and support staff.

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Leakage resources

• Water Company Employed
• 33 of companies have a current need for leakage
  employees A 11 increase is required
• 33 of companies have a future need for leakage
  employees - A 6 increase is required.
• 51 of employees are qualified to an acceptable
  standard
• 16 have qualifications that require development
• 35 have no relevant qualifications

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Leakage resources

• Leakage Contractors
• 43 of companies have a current need for leakage
  employees - An increase of 10 is required 
• 43 of companies anticipate a future need for
  leakage employees - An increase of 4 is
  required 
• 37 of employees are qualified to an acceptable
  standard
• 13 have qualifications that require development
• 50 have no relevant qualifications

36 of companies are facing recruitment
difficulties for leakage technicians.
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National Picture

• 2 million individuals due to leave the UK
  workforce in the next 10 years
• 1 million more professional jobs created
• Source Employers skills survey 2001

• Plus additional
• Investment In Rail
• Investment in Gas

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Impact of Skills gap on performance equals

• Difficulties in meeting customer service
  objectives
• Delays in developing new products service
• Increased operating costs
• Problems in meeting quality standards / hygiene
• Loss of business to competitors

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Current Workforce Development Initiatives

• Research labour market information
• Network Construction Workforce Development Forum
  17th June 2003
• Leakage Recruitment Ambition Energy
• Development of MA Frameworks
• Quantify demand and scope of Foundation Degrees
  Graduate Apprenticeships
• Review scope of existing national and company
  qualifications.
• Development of Water Network Construction
  qualifications within a Multi Utility framework.

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Context of Current Initiatives

• Skills Development within a framework that
  embraces
• Productivity
• Employability
• Mobility
• Competitiveness
• Demand led training
• Innovation in training programmes
• Innovation in Candidate selection
• Innovation in Employment terms and conditions

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Actions

• Ambition Energy
• Initiative developed by government to train the
  long term unemployed. - Drawing on earlier work
  by GWINTO
• Partnership between employers and the new Job
  Centre Plus.
• Bill Alexander Chief Executive of Thames Water is
  a member of the national steering group
• GWINTO has developed training programmes for the
  training of Gas installers and Gas Network
  Operatives plus a developing programme for Gas
  Metering Technicians With over 1,100 People into
  Training 63 Into jobs!
• Pilot programme involving Thames Water with their
  major contractors (Subterra, Morrisons, Clancy
  Docwra and Biwater) to develop recruit and train
  leakage technicians

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Actions

• Ambition Energy
• Up to 80 of the cost of training from the
  Ambition Energy budget.
• In liaison with Job Centre Plus, GWINTO will
  provide project management / consultancy to
  support the training programme.
• Job Centre Plus will arrange open days where the
  opportunities can be explained to potential
  candidates
• Job Centre Plus nominates potential candidates
  for further selection.
• GWINTO, the training provider ( in this case
  Thames Water), Job Centre Plus run open days
  for candidates.
• Selection process that comprises tests of
  literacy, numeracy and manual dexterity. The
  candidates individual motivation is assessed by
  interview.

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Actions

• Ambition Energy
• A shortlist is then drawn up. (Long term
  retention in employment in excess of 80 as
  opposed to average of 40 for other New Deal type
  programmes.)
• The training programme involves three element
• technical training,
• life skills
• mentoring support.
• based on a mixture of college and work-based
  learning and is supported by project managers.
• On successful completion the candidate will be
  awarded NVQ level 2 in Leakage Control.
• At the end of the programme the candidate will
  enter employment as identified at the beginning
  of the programme.
• yal Engineers

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Water Quality is not negotiable
Elliot Morley Parliamentary Under-Secretary
(Fisheries, Water and Nature Protection) Economist
Conference Oct 16th 2002
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Question

• If the water industry was to face similar
  scrutiny to the rail industry, could it
  demonstrate sufficient experience, knowledge and
  competency.
• i.e. how many job roles at junior / senior
  managerial level require evidence of competency

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Proof of Competence

• In gaining academic qualifications how does this
  capability prove occupational competence?
• Qualifications are not proof of competency unless
  qualification assesses knowledge and experience.

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Business Planning

• How many business plans equate business
  objectives to business competencies?
• How many business plans identify the returns
  skills can contribute?
• How is evaluation measured against business plan
  ?
• How many companies include the proof of skills
  and development from their suppliers?
• Do we measure leadership skills with the same
  diligence as technical skills?

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Who gains when workers trains?

• Training significantly boosts productivity
• The effect of training on productivity is around
  twice as great as the effect of training on
  wages. Employees and firms share the gains from
  employer provided training and
• The results demonstrate a sizeable effect .e.g.
  raising the proportion of workers trained in an
  industry by 5 (say from 10 to 15) is
  associated with a 4 percent increase in
  value-added per worker and a 1.6 increase in
  wages
• L Dearden H Reed J. van Reenan. Who gains when
  workers trains?

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Opportunities for GWINTO support

• Assess sector needs within the growing national
  skills gap
• Liaison with Government to support their
  commitment to the raising of skills
• Using demand forecasting to access funding.
• Take action to address skill needs

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Summary

• Leadership to be open and receptive to competency
  development
• Strong engagement with company strategy
• Systemic approach across the supply chain for
  workforce development inc. Govt and regulatory
  bodies.
• A more competent UK Water industry workforce will
  provide a greater overseas competitive advantage.

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Thank you for listening

• David Hellier
• Water Business Manager
• david.hellier_at_gwinto.co.uk