Redundancy Response

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Edinburgh Business Assembly 3rd June
2009Skills, Productivity and Talent
Ken Shaw Service Manager Employability
Skills Economic Development, City Development
Department ken.shaw_at_edinburgh.gov.uk Tel 44
131 529 3476
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Why is it important?

• Improving the quality of life for the people in
  the city and spreading the benefits of economic
  growth
• Reducing the costs on business and maintaining
  the competitive advantage of the city
• Future proof the economy through the active
  development of the citys workforce and skills
  base

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Edinburghs Age Profile (2007)
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Edinburghs Qualification Profile
44.2 of workforce hold a degree or higher (NVQ4)
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Edinburgh is the 13th most highly qualified local
authority in the UK
Source Annual Population Survey
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An International City (In-ward migration 2002-
2008)
59,280 (27 of Scottish Total)
NINO Registrations, Source Department for Work
and Pensions
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A Productive City
Productivity per Employee (GVA)
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Skills Match Utilisation

• Research Work Skills in Scotland (Future Skills
  Scotland March 2008)
• Two-fifths of workers say that they have
  qualifications over and above that necessary to
  get and do their current job.
• Employer initiative is key in training decisions
  amongst lower-skilled individuals, but
  higher-skilled more likely to receive training
• For those workers who receive training, the
  impact on their work performance was generally
  high
• Emerging stronger Education and Skills Survey
  2009 (CBI April 2009)
• Almost two thirds (61) of employers see
  increasing productivity and performance as their
  main priority
• Employers report that more than a third of
  positions (36) within their workforce require
  degree-level skills (65 in science, high-tech).

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Demand for Labour in Edinburgh (Vacancies
notified to JCP)
40 Drop in vacancies (2009 vs. 2008)
Source Nomis
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Unemployment 2006-2009
Upward trend projected to continue until 2010
Source Nomis
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Competition for Jobs
Source Nomis
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Challenges for Edinburgh

• Equality of Opportunity Increasing competition
  for jobs means young and other vulnerable groups
  disproportionately affected
• Talent Retention Retaining highly skilled and
  mobile individuals in the local Economy
• Our Reputation the perception of Edinburgh as a
  Financial Services city badly impacted could
  dissuade investment that would help recovery
• In-work poverty 6 in 10 poor households in UK
  have someone in work and in Edinburgh 16 of
  workforce earn less than 60 of the median wage
• Return on investment Maintaining a high skill
  economy and making best use of it
• Future Demand By 2017 due to growth and
  replacement demand anticipated to be requirement
  for additional 100K workers
• Wealth Generation Productivity per head compared
  with competitor cities

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Economic Development Unit
Head of Economic Development Greg Ward
Economic Participation
Global Competitiveness
Physical Regeneration Peter Watton
Investor Support Elaine Ballantyne
Enterprise Innovation Jim Galloway
City Promotion Kenneth Wardrop
Employability Skills Ken Shaw
Strategy Research Lesley Martin
OBJECTIVE 3 Increased the GVA of its domestic
businesses by 1 p.a. above the average
OBJECTIVE 5 Bring 3,000 people who suffer
significant disadvantages into sustainable
employment, education or training. Strategy and
delivery of programmes to bring the most
disadvantaged people into sustainable employment,
enterprise or job-focused training and work to
reduce the level of poverty in the city.
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Our Expertise

• Good track record in delivering employability
  training
• Typically 60-65 of those completing programme of
  support gain a positive outcome (Job, Enterprise,
  Education or Job focused training)
• Experience at working in partnership to deliver
  best service to jobseekers and employers
• Core Partner in Regional Economic Strategy and
  City Jobs Strategy
• Experience in the sourcing, collation and
  analysis of economic and performance data to
  inform policy
• Economy Watch, Labour Market Bulletin, Capital
  Review Key Indicators

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Focus on Poverty Reduction

• External Review of employability services
• Refocusing, Streamlining and aligning services to
  Single Outcome Agreement
• Development of a cross partner anti-poverty unit
• Targeting those not benefiting from Economic
  Opportunities
• Examine Skills needed for future
• Examine how individuals utilise their Skills to
  best effect

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An Employment Pathway Approach
Removing major barriers and obstacles to entering
employment.
Increasing Personal Effectiveness of an
individual.
Strengthening competencies and awareness of
opportunities.
Job or vocation specific training leading to a
specific Job opportunity
Increasing career progression chances through
additional in-work training
Support Drugs treatment Debt advice Housing Health
Support Confidence building Individual Action
planning Literacy Numeracy
Support Working as part of a Team
Communications Customer Service Job Search Skills
Support IT Skills Health Safety Work
Placement Interview Skills
Support Career training Modern Apprenticeships
Upskilling
Life Skills
Basic Core Skills
Key Core Skills
Vocational
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Competitiveness Attracting Talent

• DEMA has a remit of attracting talent to the city
  (Visit, Live, Study, Invest)
• Generation Y 'Emergent Intelligence' the under
  35's and our next generation of knowledge workers
  
• Destination Promotion Strategy filter/layer
  approach will help to identify our core target
  audience
• Layer 1 - Edinburgh residential profiles - as
  defined by Mosaic
• Layer 2 - Edinburgh Visitor Profiles
• Layer 3 - Target key migration life stages
• Layer 4 - Build on existing student recruitment
  networks
• Layer 5-  Identify attitudes appropriate for
  talent in key industry sector

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Redundancy Response

• Partnership Action for Continuing Employment
• National initiative Information gathering,
  advisory signposting to relevant services
• Council Economic Resilience Action Plan
• Economic Action Resilience Network (E.A.R.N)
  Local network that to co-ordinate the citys
  response to the downturn

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Building a Stronger Economy
STEERING E.A.R.N CEC, CCP, Chamber of Commerce,
Edinburgh Science Triangle, ETAG, JCP, NHS
Lothian, Skills Development Scotland, Scottish
Enterprise
Redundancy intelligence and link to P.A.C.E

• RESILIENCE SERVICES
• P.A.C.E Information and Support Services
• JCP Rapid Response Service
• Future Jobs Fund
• Education and Training (FE/HE)
• Joined up for Jobs network
• Business Start Up
• Business Mentoring
• Placement Services (Company employed)

Adapting the Response
Outcomes Service Impact Uptake

• CUSTOMERS
• Companies
• Workers
• statutory notifications
• Hidden redundancies

SERVICE IMPACT

• Re-deployment,
• Re-employment,
• Self-employment,
• Alternative (Voluntary)

• Positive Outcomes
• Business Survival
• Company Buy-Out

• Negative Outcomes (Seek to Minimise)
• Unemployment, Company Failure

Long-term cost to the Economy
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What next?

• Global Talent Are there problems in attracting
  people with the right skills. What is our unique
  selling point?
• Under-employment fully utilising the skills of
  the workforce to boost productivity
• Upskilling Growing staff through investing in
  those with lower skills to increase earning
  capacity and satisfaction
• Diversity Focus on attracting people with varied
  backgrounds to bring new ideas and opportunities
• Obstacles Do systems and work patterns create
  blockers to growth and progress?

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What next?

• Welfare reform and the devolution of
  employability services to local labour market
  level
• Level 1 local partners having active involvement
  in DWP commissioning processes.
• Level 2 co-commissioning and joint investment
  planning.
• Level 3 full joint commissioning in some areas,
  and devolution of some funding decisions in
  others.
• Partnership between employers and public/ not for
  profit sectors on
• Service design
• Future Demand
• Developing a picture of the dynamics of the
  Labour Market
• Early intervention to combat the impacts of
  recession