UK employers give luke-warm welcome to Leitch report on skills

21 May 2007

The latest quarterly CIPD/KPMG Labour Market Outlook survey finds that two thirds of UK employers believe that the Government is right to prioritise basic skills training. However, while a small majority say they are likely to make the skills ‘pledge’ – a promise to help every eligible employee to gain basic skills and a level 2 qualification – there is a significant challenge ahead in convincing all employers that making the skills pledge will have real benefits in the workplace.

Employers are reporting particular concern about the quality of training given by the Government’s skills agencies and show disappointing awareness of, and concerns about Train to Gain, the Government’s flagship skills initiative.

Gerwyn Davies, co-author of the report, at the Chartered Institute of Personnel and Development comments:

“These findings underline the Institute’s scepticism towards the extent to which Government can influence how organisations should spend their training budgets. With a majority of employers reporting that the current skills agencies are not meeting their needs, any voluntary pledge must give employers sufficient flexibility to meet their individual needs. Employers will only invest in training if there is a clear business case for them to do so, so financial incentives might form a part of the developing policy mix.”

Davies continues: “The recognition shown by employers about the need to invest in basic skills training should offer encouragement to the Government as it looks to focus its efforts on lower-skilled and unskilled employees. With an increasing number of UK organisations facing acute recruitment and skills shortages, many employers evidently see basic skills training as a means of addressing these. The challenge to government though lies in framing a policy framework that meets business needs.”


Sara Caplan, KPMG comments, “Our survey shows that we still have a long way to go in the UK in persuading employers that upskilling their workforce to at least level 2 is vital for our economy. The new Skills Envoy, Sir Digby Jones, has his work cut out in gaining more employer support, to avoid the possibility of legislation being introduced to force the issue.

“Employers also reported some concern over the quality of Train to Gain brokerage. It will be critically important to increasing the number of employers and employees involved to make sure the brokers are well trained and have a consistent approach to helping to identify skills need and find appropriate training.

“In addition, we would hope that the new Commission for Employment and Skills not only drives us forward towards the goal of achieving world class skills for the UK, but also support the reduction in complexity and bureaucracy of the current skills landscape.”


Key findings:

* Two thirds of employers surveyed agree that raising the proportion of UK adults with at least level 2 equivalent skills qualifications should be a priority for government policy. More than half (54%) of those surveyed say that they are either very likely (27%) or fairly likely (27%) to make the level 2 ‘skills pledge’ as recommended in the Leitch review of skills.

* 14% of employers seem indifferent or uncertain about the skills pledge, while a further 12% say that the pledge is not applicable to them. Fifteen per cent of employers say that they are either fairly unlikely (9%) or very unlikely (6%) to make the pledge.

* Almost half (46%) of employers unlikely to make the pledge are concerned about the cost or resources involved. 1 in 3 are not convinced of the business case. Twenty two per cent cite lack of commitment from senior management and 13% lack of employee motivation.

* Only a minority (15%) of employers surveyed have had direct experience of Train to Gain. A third of employers with an experience of Train to Gain are satisfied that Train to Gain meets their business needs, compared with 23% who say that it doesn’t.

* Yet, when the benefits of Train to ain are explained to employers, the number of employers that express an interest in taking advantage of Train to Gain almost doubles to 29%.

* Government agency officials are given a relatively low rating as effective ‘skills champions’, cited as such by only 23% of respondents, trailing behind trade union learning representatives (32%) and, in particular, internal champions (i.e. those other than trade union representatives encouraging training activities within organisations, 79%).

* Fifty-eight per cent of employers surveyed say that help with funding of training would increase their level of contact with public training agencies. But employers also want agencies to be more responsive to their needs (mentioned by 51%) and to operate with less bureaucracy (50%).

Ends

• A draft copy of the latest quarterly CIPD/KPMG Labour Market Outlook report is available to journalists on request from press@cipd.co.uk or by calling 020 8612 6400.

• The report is based on a quarterly survey of around 1000 employers. When weighted the survey sample is representative of employers of all sizes, of all sectors, and of all regions and nations of the UK.

• The CIPD website address is www.cipd.co.uk If you are a member of the press and wish to view other CIPD information, please visit www.cipd.co.uk, call 020 8612 6400, or email press@cipd.co.uk

• The Chartered Institute of Personnel and Development (CIPD) has over 127,500 members and is the leading professional institute for those involved in the management and development of people.

CIPD press enquiries:
Gerwyn Davies/ Hannah Smith / Robert Blevin
CIPD Press Office
151 The Broadway, London SW19 1JQ
Tel: 020 8612 6400
Mobile: 07793 256 763


KPMG press enquiries:
Gavin Houlgate
Tel: 020 7694 3902
Mobile: +44 (0) 7795 290855
gavin.houlgate@kpmg.co.uk

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