UKCES

Increasing employer ambition, engagement and investment in skills.

Current situation

UK employers spend an estimated £20 billion annually on the non-wage costs of staff training and development; alongside government expenditure across the UK of £12 billion on adult learning and skills. Notwithstanding this investment, UK employers complain of some skills shortages in key disciplines, significant skills deficiencies within their existing workforce, and poor employability and skills among new recruits of all ages. National and international research confirms that the investment and ambition of UK employers and individuals in learning and skills compares unfavourably with many of our international competitors.

International research confirms that the UK also has too few high performance workplaces, too few employers producing high quality goods and services, and too few businesses in high value added sectors. This means that in order to build an internationally competitive economy, the future employment and skills system will need to invest as much effort on raising employer ambition, on stimulating demand, as it does on enhancing skills supply. The aim is to achieve a virtuous circle of skills development, between the skills available and the skills required.

Necessary actions

To achieve these outcomes the UK Commission will:

• Relicense, fund and manage the performance of Sector Skills Councils (SSCs) to become a highly influential and effective UK employer network
• Maximise opportunities for effective employer influence on employment and skills through sectoral and spatial approaches, and by ensuring SSCs drive qualification reform so that more modular and portable qualifications better reflect employer needs
• Build a powerful business case for skills to demonstrate and promote the value of employer investment in workforce development
• Advise government and providers on the UK’s strategic skills needs, focusing particularly on new industries, industrial change and technological developments, in support of more active government skills policies
• Undertake research and advise employers on ways to improve skills utilisation and implement high performance workplace practices
• Develop and implement a new standard for Labour Market Information reports that will identify current and future needs, at sectoral, national and regional levels
• Ensure that sectoral occupational standards reflect evolving industrial and occupational requirements, and inform a flexible and modular qualification system that prepares learners for work and career development
• Recommend practical actions to increase the management and leadership skills of employers
• Use national and international people standards and benchmarks (such as Investors in People) to drive up excellence in organisational ambition and performance.