The UK Commission for Employment and Skills: The role of the Commission and Sector Skills Councils

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The UK Commission for Employment and SkillsThe
role of the Commission and Sector Skills Councils

• FICCI Global Skills Seminar
• New Delhi, India20 August 2009
• Chris Humphries CBEChief ExecutiveUK Commission
  for Employment and Skills

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The CommissionersA strong and independent
employer voice
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UK Commission for Employment and SkillsA
Strategic Advisory Body

• Purpose to strengthen the employer voice, and
  deliver greater leadership and influence to
  achieve the best from the UKs employment and
  skills systems
• Principal Roles
• develop an independent view of how employment
  and skills services can be improved to achieve
  increased employment retention and progression,
  skills and productivity
• provide advice to inform strategic policy
  development, analysis and exchange of good
  practice to drive and shape the skills and
  employment system to meet the needs of employers
  and individuals
• fund and manage the performance of the Sector
  Skills Councils and advise Ministers on their
  re-licensing.
• Reporting to
• Prime Minister, Chancellor, Secretaries of State
  for Business, Schools, Skills, and Employment,
  and First Ministers of Northern Ireland, Scotland
  and Wales

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UK Commission Year 1 Work Programme

• Core Programme
• Prepare first State of the Nations Report
  March 2009
• Launch and progress SSC Re-licensing
• Underpinning Research programme UK
  international research programme to inform annual
  progress report
• Special Projects
• Labour Market Information models making high
  quality Labour Market Information available to
  assess need, inform careers and shape provision.
• Talentmap a portal to help employers find and
  access the support they need in employment and
  skills from colleges and Universities
• Employability Skills ensuring learners get, in
  addition to technical skills, the generic
  employability skills needed by 21st century
  employers
• Simplification seeking to simplify the
  employment and skills system to better serve the
  needs of employers and individuals
• Skills Utilisation how to deploy higher
  level skills to implement more productive and
  competitive business strategies

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Our Strategic Approach
UK Commission for Employment and Skills Maximise
UK economic competitiveness and individual
opportunity through world class employment and
skills
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Ambition 2020 World Class Skills andJobs for
the UK

• The 2009 Report
• A new agenda for change and development
• Published May 2009

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Productivity and employment in OECDWhere are we
now? Where should we be?
High employment/ high productivity
High employment/ low productivity
SETTING A WORLD CLASS AMBITION SUSTAINABLE
ECONOMIC COMPETITIVENESS SOCIAL COHESION 2020
Goal World Class Productivity Levels - in top 8
OECD countries 2020 Goal World Class Employment
Levels - in top 8 OECD countries 2020 Goal World
Class Skill Levels - in top 8 OECD countries
Employment Employment populations ratio 2007,
all persons 15-64
Low employment/ low productivity
Low employment/ high productivity
Productivity GDP per hour worked (US at current
prices), 2007
Source UKCES, Ambition 2020 World Class Skills
and Jobs for the UK, 2009, pp 21-22
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The UK Qualifications Profile 1997-2007Good
progress over last decade!
44
-26
Source Labour Force Survey, 2008 Note Working
age population 19 59/64
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The UK leading in some areas Participation of
adults in lifelong learning
Benchmark 2010
Source Eurostat (EU Labour Force Survey),
2000-2007 (some data 2006)
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But the competition is globalImprovements are
too slow at school level

• UK Position
• 15th in OECD for older workers
• 21st in OECD for younger workers

Source OECD, Education at a Glance 2008, Table
A1.2a
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...and at tertiary level too

• UK Position
• 12th in OECD for older workers
• 15th in OECD for younger workers

Source OECD, Education at a Glance 2007. Table
A1.3a
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with major skills variations across sectors
Source Labour Force Survey, 2007
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Productivity and employment in UKA regional
challenge too
High employment/ high productivity
High employment/ low productivity
UK
Employment Employment populations ratio 2007,
UK 74.4
?
Low employment/ low productivity
Low employment/ high productivity
Productivity GDP per hour worked (UK 100), 2009
Source UKCES, Ambition 2020 World Class Skills
and Jobs for the UK, 2009, pp 21-22
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with national/regional skills gaps
Percentage of working age population in
employment by qualifications level
Percentage in employment with Level 4 skills and
above
Percentage in employment with Level 2 skills or
below
Source UKCES, Ambition 2020 World Class Skills
and Jobs for the UK, 2009, Chart 2.1 ONS
Population Survey, Jan-Dec 2007
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UK employment change 2007-2017Major growth in
high level skills
Over 50 of all job demand
Over 100 of all expansion demand
13,451
Source UKCES, Working Futures 2007-17, January
2009
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UK employment change 2007-2017 Continuing
sectoral variations
Source UKCES, Working Futures 2007-17, January
2009, Table 2.6
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UK Current Progress to 2020 Ambitions
Intermediate Level skills Numeracy the key UK
challenges
Source Ambition 2020, Tables 4.2 4.3, p 58-59
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Low UK skills shortages and skills
gapsOver-skilled or under-employed?
Source Drawn from National Employer Skills
Surveys, England, 2007 Skills in Scotland, 2006
NI Skills Monitoring Survey, 2005 Future Skills
Wales 2005 adapted from Tables 7.2, 7.3 7.6 in
Ambition 2020, pp 105-108
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Slow progress to a high skill economyChange in
skilled jobs between 1998 and 2006

• UK Position
• 12th place in 2006
• Slowest positive growth

Source Ambition 2020, Charts 7.1 7.2, pp
115-116 - OECD, Education at a Glance 2008, Table
A1.3a and Table 1.6
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Difference between skills supply demandChange
between 1998 and 2006
Source Ambition 2020, Chart 7.1, p 115 - OECD,
Education at a Glance 2008, Table A1.3a and Table
1.6
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Five priorities for World Class skills and jobs

• To create a clear and integrated strategy for
  economic transformation and renewal, aligning
  policies and practices in industrial policy,
  employment and skills in order to achieve that
  transformation.
• To support effective economic development in
  cities and local communities, built upon economic
  and labour market strengths and opportunities,
  and maximising the skills of the local working
  age population.
• To build employer ambition and capacity to be
  World Class, capable of competing globally in the
  high skills, knowledge driven economy, by
  optimising the talent and skills of their people.
  
• To transform individual aspiration and skills
  into a World Class workforce, maximising the
  motivation and opportunity for all people to
  develop and exploit their talents and skills to
  their full potential
• To develop more strategic, agile and demand-led
  skills and employment provision, capable of
  anticipating and rapidly meeting employers
  evolving skills and job requirements.

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Five priorities for world class skills jobs
Industrial/ Economic Renewal
Local Economic Development
Commission Priorities 2009-14
Individual Aspiration
Responsive Provision
Employer Ambition
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UK Commission Strategic Priority 1Increasing
employer ambition, engagement and investment in
skills

• Principal workstreams
• Build a powerful business case for skills to
  demonstrate and promote the value of employer
  investment in workforce development
• Advise governments and employers on the UKs
  emerging strategic skills needs, particularly in
  relation to new industries and technological
  change
• Re-license, fund and manage the performance of
  Sector Skills Councils (SSCs) to become a highly
  influential and effective UK employer network
• Devise, with SSCs, and implement a new standard
  for labour market information reports to identify
  current and future skills needs across the UK
  nations and regions
• Recommend practical actions to increase the
  leadership and management skills across UK
  employers
• Undertake research and advise employers on ways
  to improve skills utilisation and implement high
  performance workplace practices.

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UK Commission Strategic Priority 2Building a
more strategic, agile and demand-led employment
skills system

• Principal workstreams
• Advise on targets, measures incentives for
  employment and skills leading to a more
  outcome-focused approach to increase relevance,
  quality and value for money
• Ensure the UKs employment and skills systems
  enhance equality and opportunity amongst
  individuals and groups at greatest risk of labour
  market inactivity or exclusion
• Improve labour market information, especially on
  emerging industries and skills needs, to inform
  learning providers and better align future demand
  and supply
• Recommend and monitor approaches to simplify all
  employer facing services in employment and
  skills, to improve employer engagement and
  satisfaction
• Assess in 2010 the UKs progress on integrating
  employment and skills services to deliver a more
  joined-up service for employers and individuals
• Undertake national and international research on
  best practice in employment and skills services,
  to enhance provider performance to world class
  standards.

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UK Commission Strategic Priority 3Maximising
individual opportunity for skills and sustainable
employment

• Principal workstreams
• Prove and promote the benefits of learning to
  individuals of all ages in order to raise
  individual aspirations for higher skills and
  better jobs
• Identify key barriers to employment and skills
  for individuals, and advise government on ways to
  increase individual demand for and access to
  skills and workplace learning
• Utilise, and support the use of, customer journey
  and satisfaction studies to inform system
  simplification and improvements, and promote
  better system integration
• Work with government to identify the best modes
  for integrating employment and skills services,
  especially for people in/at risk of social
  exclusion
• Support the development of a flexible and modular
  qualification system that better enables
  individuals to build the skills needed for
  sustainable jobs and progression
• Identify and promote international best practice
  in employee engagement strategies to employers,
  supporting the growth in high performance
  workplaces.

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UK Sector Skills Councils Their Roles,
Relicensing and Lessons Learned

• Sector Skills Council Round Table
• New Delhi, India22 August 2009
• Chris Humphries CBEChief ExecutiveUK Commission
  for Employment and Skills

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Sector Skills Councils in the UKAn evolutionary
development process
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Sector Skills Councils in outline

• Independent, UK-wide, industry-led bodies, with
  Boards drawn from employers ( unions) in the
  sector with goals to
• improve learning supply including
  apprenticeships, higher education and National
  Occupational Standards
• improve productivity, business and public service
  performance
• to reduce skills gaps and shortages
• increase opportunities to boost the skills and
  contribution of everyone in the sector's
  workforce
• 25 Councils, covering private, public and
  voluntary employment, and 90 of UK workforce
  occupations
• Annual core project budgets from Government
  totalling over 80 million per annum, with
  additional s from companies

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The 25 UK Sector Skills Councils
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The 25 SSCs cover 90 of UK workforce

• Manufacturing
• SEMTA
• Cogent
• Improve
• Skillfast
• Proskills
• Creative and Media
• Creative and Cultural Skills
• Skillset
• Energy
• Energy and Utility Skills
• Transport
• GO Skills
• Skills for Logistics
• Business services
• e-skills UK
• Financial Services

• Public sector
• Government Skills
• Skills for Justice
• Skills for Health
• Skills for Care and Development
• Lifelong Learning UK
• Hospitality, Leisure, Retail
• People 1st
• Skillsmart Retail
• SkillsActive
• IMI / Retail Automotive
• Construction
• Construction Skills
• Asset Skills
• Summit Skills
• Rural and Environment
• LANTRA

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Key Roles of UK Sector Skills Councils

• Three part remit commissioned by Government
• Raising employer engagement, demand and
  investment in skills
• Ensuring authoritative labour market information
  for their sectors
• Developing National Occupational Standards and
  ensuring qualifications meet employer needs

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1. Raising employer engagement, demand and
investment in skills

• Evidence of success for relicensing would
  demonstrate
• Employers have a full opportunity to direct the
  work of the SSC through its governance
  arrangements, with trade unions
• Strategic and business plans in place, financial
  management is sound, and customer/stakeholder
  satisfaction is high
• The SSC has the resources, capability and
  partnerships necessary to deliver its remit
• A compelling offer of sector specific skills
  solutions, addressing the priority skills needs
  of the sector
• The SSC has strong delivery partnerships in place
  to ensure that it can show strong impact on its
  sector

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2. Ensuring authoritative labour market
information for their sectors

• Evidence of success for relicensing would
  demonstrate
• SSCs adhere to the UK Commissions common LMI
  framework
• SSCs use robust national datasets high quality
  research evidence to produce consistent and
  complete LMI
• The LMI data covers the whole SSC sector, and can
  be disaggregated by UK nations and regions, and
  by sub-sector.
• SSCs can produce thorough and rigorous skill
  needs assessments, supported and endorsed by
  their employers
• The SSC distil the current and future skills
  priorities in their sectors, in order to raise
  employer ambition

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The Common LMI Framework

• Key sections
• What drives skill demand?
• Economic conditions, competitiveness, market or
  regulatory pressures, external factors,
  technology etc.
• What are current skills needs?
• Across the whole spectrum from basic literacy
  numeracy, employability, intermediate and high
  level skills
• What lies ahead?
• Likely future trends, informing scenarios,
  constructing a plausible preferred future
• How do needs vary by geography?
• By UK nation and region

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3. Developing National Occupational Standards
(NOS) ensuring qualifications meet employer
needs

• Evidence of success for relicensing would
  demonstrate
• Standards and qualifications are informed by
  current and future skills needs articulated by
  employers, and high quality LMI
• An SSCs NOS are up to date, reflect best
  practice, of high quality, and available for all
  occupations according to demand
• SSCs collaborate on generic NOS, such as those
  for leadership management, customer service,
  administration etc.
• The SSC has a Sector Qualification Strategy that
  ensures the right volume, quality and type of
  qualifications are available
• The SSC ensures the currency and quality of
  Apprenticeship frameworks for all relevant
  occupations

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What is an occupational standard?See
http//www.ukstandards.org.uk/
National Occupational Standards What a person
in an occupation needs to know, understand and do
to carry out their role in a competent and
consistent way.

• Used to
• Develop job descriptions
• Appraise employee performance
• Design training programmes
• Devise accredit qualifications

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The vocational qualification system
Learners
Skills standards boards
Define
National Occupational Standards
Accredit
Validate
Regulator
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Factors in SSC successLessons learned from
history relicensing

• Number of sectors no right number
• need to balance focus vs complexity
• Scale matters, but let employers choose their
  boundaries
• UK SSCs each employ more than 2 of workforce
• Essential to have strong, committed employer
  boards
• with real authority to shape and drive
  performance
• Effective executive leadership Chair Chief
  Executive
• biggest single factor in success or failure
• Industry co-financing should be a requirement
• who values what they dont pay for?
• Build in strong focus on, and encouragement for,
  innovation
• If you keep doing what youve always done
• Define success clearly, and give them time and
  space to work

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Additional roles for SSCs

• Examples of general or specific SSC innovations
• Approving qualifications for public funding in
  Colleges
• Sponsoring the creation of National Skills
  Academy exemplars
• Designing the content of new Secondary School
  Diplomas
• Establishing and operating sectoral Skills
  Passport systems
• Shaping University Foundation Honours degree
  programmes
• Establishing professional registers for sensitive
  occupations
• Developing operating licence to practise
  systems for sectors
• Introducing sectoral training levies, with
  government support
• Special training programmes to respond to
  economic challenge