Generic Skills Survey 2003

DRIVERS OF SKILLS NEEDS

Generic Skills Survey 2003

DRIVERS OF SKILLS NEEDS

Introduction Drivers of Skills Needs:

Demand Side – Industrial Structure of Area Generic Skills – Communication & Team

Working skills across most sectors Industry Specific Skills – Customer Handling &

IT skillsSize of Firms & Markets affect type of skills

requiredHuman Resource – Aptitude, Motivation &

Barriers

Employment Growth In Wales Largest sectors in Wales are:

Wholesale & Retail (16.5 % of total employment) - Growth

Manufacturing (15.3 per cent) – Long-term decline

Health (13.6 per cent) – GrowthOther growth sectors - Other services

(including leisure) and other business services

Link between recruitment of new graduates and level of formal qualifications in the workforce

Graduate numbers rising – qualifications being used as a screening device

Graduates employed for their generic skills

Larger firms more likely to recruit graduates

Supply of graduates outstrips demand in some cases

Recruitment of Graduates

Generic Skills Generic Skills highest rated by employers in all

sectors:Understanding customer needs /

Communication skills

Education system emphasising Essential Skills

Skills gaps mainly for Communication Skills

Other generic skills rated as important:-Ability to Follow Instructions / Initiative /

Team Working / Adaptability & Flexibility The shift from manufacturing towards a more service based

economy will lead to the increasing importance of these skills.

ICT Skills

ICT SKILLS – Growing in importance to all Firms

Current level for most sectors – IntermediateHigher skills in Financial & Business ServicesLower in ConstructionGrowth in demand for ICT skills outpacing

supplyDemand expected to rise in all sectorsStrong growth in Public Services and Utilities

Business Attitudes & Demand for Skills Changing Government agenda to stimulate demand

Marked difference in attitudes across sectors

Larger firms rate skills more highly

Of employers who see benefits from investment in skills :

One third had not funded off the job training in the past year

Only 59% of employers with skills gaps had funded off the job training in the past three years

Little Regional variation in demand for generic skills

Supply of Skills Demographic Changes – rise in Mid Wales population

Formal qualifications - Mid Wales workforce highest qualified

Generic Skills – little regional variation

Three-quarters say skills levels are increasing

Two-thirds say they can develop the skills they need at work…

……..But only half can develop skills for the future

Individuals can lack motivation to learn new skills

Supply of SkillsI would not like to be involved in learning

0

5

10

15

20

25

30

35

40

Mid North South East South West All Wales

% o

f re

sid

en

ts

Source: Future Skills Wales, 2003 Generic Skills Survey

Conclusions & Policy Implications

Drivers of Skills Needs Largest Recruiters of Graduates are public administration, education, health, finance, insurance and other

services, energy & water.

To fully utilise higher education skills in Wales & to prevent graduates leaving the country to look for relevant work – Policy should focus on attracting employers within these sectors.

Forecasting above average employment growth in the services sectors – suggests future demand for graduates likely to increase over the next five years.

Issue – growth in actual graduate jobs or employers taking on graduates for traditional school leavers jobs.

Policy needs to focus on encouraging employers to fully utilise the skills of graduates.

School Leavers – Skills lacking! Policy should concentrate on ensuring that school leavers skills are up to standards expected and required by employers.

Conclusions & Policy Implications

Which Skills are Critical

Communication & Customer Handling

39% of employers found Communication skills lacking in school and college leavers

Importance of communication & handling skills increasing as competitive forces lead firms to use customer service as a way of gaining competitive advantage.

Policy needs to focus on improving communication skills in schools and to a lesser extent graduates and to address the gaps in the current adult workforce.

IT SKILLS – DEMAND OUTPACING SUPPLY

Policy needs to focus on brining the whole labour force up to a minimum level of IT know how.

Conclusions & Policy Implications

ATTITUDES TO SKILLS & TRAINING

Cost of Training – Policy needs to encourage and help those employers improve their investment in skills through recognising the business benefits.

Cost of off the job training – Policy needs to address ways of making this more accessible and affordable, particularly to micro and smaller businesses.

Conclusions & Policy Implications

REGIONAL VARIATIONS Little variation in the need for generic skills – main exception Welsh language skills North & Mid Wales. Formal Qualifications – only the North does not have a competitive advantage, but has a relatively high

supply of formal qualifications. North enthusiastic about learning. Policy specifically needs to encourage firms in the North to fully utilise the local labour force. Mid Wales – significant barriers to people furthering their skills – time constraints, availability of courses

in the local area were notable constraints. Policy needs to address the accessibility of training establishments and promote remote learning. South East – Higher average share of people with no formal qualifications. Employees in this region most likely to feel employers did not give them the opportunity to develop

skills. Policy in this area needs to be aimed at encouraging employers to recognise the importance of

developing employees skills and the benefits to business this can bring.

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