Why_and_How_We_Should_Effectively_Manage_Employer_Engagement_in_the_Post-Leitch_Demand-Led_World_of_Learning_and_Skills

The report analyses the following critical business question: Why and how we should effectively manage employer engagement in the post-Leitch demand-led world of learning and skills The report analyses the ‘why’, by critically examining literature in order to see whether there is a business case for investing in training and Apprenticeships. With respect to the ‘how’, the report also explores the literature on employer engagement to establish a systematic and robust employer engagement model. To give the analysis a practical Work-related context, the report critically evaluates a major employer-focused Learning and Skills Council (LSC) programme, namely Apprenticeships. This practical critical analysis identifies areas of good practice, as well as outlining recommendations for business improvement. The report specifically focuses on Apprenticeships for a number of reasons: * It provides an opportunity to capture the end to end process, not just a portion * It will have relevance for both the public and the private sector * This is currently the flagship government policy * It is a programme that has broad cross-party support and is highly likely to remain a high priority regardless of the future political landscape * It is a cornerstone of the 14-19 entitlement * It is a key programme that addresses both young people (14-19) and adults * Employer engagement is critical to success * A key focus of the National Apprenticeship Service is employer engagement * It is a critical area at present where targets are challenging The report argues that there is a clear case to support Apprenticeships as a product and the literature supports the view that investing in the programme has demonstrable benefits to employers. Effective employer engagement is crucial if Apprenticeship growth is to be fully realised. This engagement will only be truly effective if a robust and consistent model of engagement is used to make this business case to employers. To address this core question the project achieves the following objectives: * Defines employer engagement * Identifies and evaluates an appropriate employer engagement model * Uses the model to critically examine where the organisation currently is in terms of the why and how of employer engagement in the demand led world, with specific critical focus on the Apprenticeship programme * Through this process of critical analysis against a robust employer engagement model identifies good practice, as well as recommendations for improved business approaches to the successful engagement of employers in Apprenticeships. 2. Executive summary [project overview, aim and objectives and key recommendations) Context In December 2006 Sandy Leitch published his review of skills in the UK, ‘Prosperity for All in the Global Economy – World Class Skills’. Leitch highlighted that employers are critical in helping achieve the world class skills base the UK requires to be competitive in the global economy. Increased employer engagement must be about effective management of both demand and supply. Leitch also stressed that employer engagement in skills development is significant. He noted that it is estimated that UK employers spend around £33 billion every year on training. However, at the same time there are still around one-third of UK employers that undertake little if any training. There are a number of key barriers which prevent or dissuade these employers from engaging in the training of their workforce. These include: the time and cost of training; their level of awareness of the training available and; the way in which the training is delivered – not just the what, but also the how. Core question Set against this wider context, this report tackles the following critical business question: Why and how we should effectively manage employer engagement in the post-Leitch demand-led world of learning and skills Structure The report addresses the “why” as well as the “how”. The “why” is achieved by critically examining existing literature and research to identify whether there is a business case for investing in training, such as Apprenticeships. The “how” is explored by reviewing literature and employer engagement research to establish a systematic and robust employer engagement model. To give the analysis a practical work related context, the report critically evaluates a major employer-focused Learning and Skills Council (LSC) programme, namely Apprenticeships. This identifies areas of good practice, as well as outlining recommendations for business improvement. Apprenticeships: the rationale The report specifically focuses on Apprenticeships for a number of reasons: * It provides an opportunity to capture an end-to end process of engagement * It will have relevance for both the public and the private sector * This is currently the flagship government policy * It is also a programme that has broad cross-party support and is highly likely to remain a high priority regardless of the future political landscape * It is a cornerstone of the 14-19 entitlement * It is a key programme that addresses both young people (14-19) and adults * Employer engagement is critical to success * A key focus of the National Apprenticeship Service is employer engagement * It is a critical area at present where targets are challenging Core argument The report argues that there is a clear case to support Apprenticeships as a product and the literature supports the view that investment in Apprenticeships has demonstrable benefits to employers. In turn the report goes on to argue that effective employer engagement is crucial if Apprenticeship growth is to be fully realised. This engagement will only be truly effective if a robust and consistent model of engagement is used to make this business case to employers. Summary of key findings * There are a wide range of complex barriers and issues affecting the level of employer engagement in Apprenticeships including: * a lack of awareness of the programme * perceptions that young people aged 16-18 were not usually job ready enough and therefore represented a risk * competition with other government training programmes * though the quality of the product has improved significantly in recent years, the complex administration is still perceived as a barrier * there are poor perceptions on the value of work placements, competition and costs, as well as previous bad experiences leading to receptive employers closing their doors * bureaucracy around insurance and health and safety are also cited by employers as reasons why they are reluctant to support * Colleges and training providers are vital in encouraging employer engagement and they need to build on these strengths taking an even greater role. At present there may be an over reliance on established relationships, particularly with large employers. * An analysis of the salient research literature reveals that there is strong evidence to support the assertion that investment in training and, in turn Apprenticeships, brings tangible benefits to organisations and their workforce alike. * The evidence highlights that an employer commitment to training not only attracts high-calibre and high-skilled staff, but can also help to ensure they are retained by the organisation. * With respect to the ‘numbers’ - an investment in training can bring real productivity and performance returns. * There is a strong case for employer engagement in training and Apprenticeships, supported by hard research evidence Developing a systematic employer engagement model The report argues that a systematic model is the most effective method to successfully address barriers and issues and increase employer engagement. The employer engagement model developed is made up of two phases, with six key elements overall. All elements of the model are underpinned by “quality” element which is embedded throughout each phase. Diagram 1: The Model Phase 1: Strategy: 1. Understanding the Market Understanding the market you are operating in through customer segmentation, Labour Market Intelligence and behavioural sciences. Products and Solutions Individuals responsible for employer engagement should have a strong understanding of the product/solutions they are proposing, and should also be able to offer alternatives. A value proposition is also required, which demonstrates the employer benefits of the proposed solution. 2. Marketing Promotion of the service - employers knowing about you and your product makes selling easier. Different methods and channels should be used to engage and build brand awareness. Phase 2: Process 3. Contact Management A formal and systematic process to record and manage contact with employers. 4. 7 Steps of Selling A seven step sales process framework. 5. Performance Management Clarity on core business priorities, targets and strategic direction and ensuring motivation and tracking of staff and their success using targets, reviews and incentives. 6. Quality Ensuring evaluation is embedded throughout the process and fed back into development and improvement. This includes the identification and sharing of issues, as well as good practice. Key Recommendations Based on the evidence gathered, and the main findings identified as part of this project, the following key recommendations are put forward for consideration by the Regional Planning Group: Core Recommendation * The employer engagement model developed in the report is further tested with a core group of providers and partners. Once the model has been tested and refined it is then rolled out as a model of good practice and tool for providers and partners to utilise across the learning and skills sector. Understanding the Market * A thorough mapping exercise needs to be undertaken to give a clear picture of the interface with employers at present, the demands on them, the identification of duplication, where there are potential quick wins, gaps and areas of strength. This exercise would focus on the strategic and operational interface as opposed to employer engagement on the needs/demand side. * In turn, it is important that there is a clearer picture of the current state of needs/demand from employers across the region. Given the variability of employer engagement by size and sector a detailed market analysis needs to be undertaken in order to segment the local sectoral base and identify those areas where resources can be targeted. Products and Solutions * The Skills Funding Agency and the National Apprenticeship Service need to look at the relationship between programme and support creative approaches to delivery which compliment rather than compete. There are a number of approaches being tried on the ground and more needs to be done to share this good practice across the sector. * The key strategic planning and commissioning bodies need to take a more strategic and co-ordinated role in managing the interface with employers. The offer needs to be streamlined, differentiated and duplication needs to be removed. * It is clear that there is a strong business case for Apprenticeships which needs to sit at the core of the employer engagement. This will clearly demonstrate the value of the product. A core document should be developed that clearly defines this business value. This will act as an aide memoire for staff with a direct employer interface across the learning and skills sector, including NAS, providers, Business Link, Jobcentre Plus etc. A clear and consistent message is being reinforced at all levels. Marketing * More work needs to be done to clearly define the Apprenticeship offer and highlight its distinct benefits over and above other government funded training programmes. Contact Management * There is a risk through the Machinery of Government changes and the increased expectation on employers to support placements, that the level of demands on employers increases further. The LSC Regional Planning Group and the 14-19 Regional Commissioning Group need to manage this risk and bring key strategic partners together to ensure that employer engagement is more effective. * To avoid duplication and manage employer engagement more effectively, the introduction and use of a universal Customer Relationship Management (CRM) system is recommended. 7 Steps of Selling * The consultative selling approach should be adopted as a model of good practice and where appropriate, integrated into staff learning and development. Performance Management * If we are to see the exponential growth of Apprenticeship engagement to 20% of the 16-18 cohort by 2020, all strategic commissioning partners in the region will need to take ownership of this agenda. There is a need for a regional planning group to bring all key partners together to ensure there is a top-down strategic steer on this agenda. The agenda then needs to be disaggregated by local authority area, and all partners should sign up to the delivery of incremental improvement targets that work towards the 2010 aspiration. It is also recommended that these targets are embedded in the performance management of all those staff responsible for strategic commissioning of Apprenticeships. Quality * A thorough quality improvement process needs to underpin the model. 3.Organisational Background In December 2006 Sandy Leitch prosperity for all in the global economy – World class skills crown copyright) published his review of skills in the UK, ‘Prosperity for All in the Global Economy – World Class Skills’. Leitch highlighted that employers are critical to achieve the world class skills base the UK requires to be competitive in the global economy. He stressed that, ‘Employers must play their part… raising their engagement in skills at all levels and using skills effectively.’(Leitch, 2006). However, for Leitch the onus was not just on employers themselves to increase engagement in training, it was also vital that the skills delivery system better met their needs. Increased employer engagement must be about effective management of both demand and supply. Employer engagement in skills development is significant. It is estimated that UK employers spend around £33 billion every year on training. However, around one-third of UK employers undertake little, if any, training. There are a number of key barriers which prevent or dissuade these employers from engaging in the training of their workforce, including: the time and cost of training; their level of awareness of the training available and; the way in which the training is delivered – the “how” as well as the “what”. The effective management of LSC programmes is important to ensure the supply of training better meets employers’ needs. This is particularly important for core programmes such as Train to Gain, Apprenticeships, Young Apprenticeships and 14-19 Diplomas. To manage these programmes the LSC is set key targets by government. This raises an important tension between meeting targets and meeting the wider needs of employers. If the employer engagement is not in the right areas to meet the needs of the wider economy, the organisation and ultimately the economy, could miss the Leitch agenda. Leadership Challenges This report should be seen in the wider context of leadership for the LSC, particularly as the organisation moves forward as part of Machinery of Government. A key success criterion will be the extent to which the report influences policy, strategic direction and delivery at a senior business level. Achieving this aim presents a number of key leadership challenges: * Change leadership and management during transition from the LSC to the Skills Funding Agency (SFA), National Apprenticeship Service (NAS) and the Young People’s Learning Agency (YPLA), and staff moving to local authorities; * Effective project management techniques; * Supporting successful business transition and ensuring the project informs organisational thinking and business development; and Raising and maintaining staff awareness and buy-in to the project. 4. Outline your research methodology [why have you selected your methods The report used the following methodology: * Secondary research - (examining literature on employer engagement). This included the following sources: national and regional research; examining employer needs and wants; National Employer Skills Survey; National WBL Evaluation; Sector Skills Councils’ Labour Market Intelligence and Needs Analysis; North East Chamber of Commerce research; analysis of Training Quality Standards; Investors in People etc. * Primary research - the scope of the primary research was scaled back to address concerns raised by the LSC senior management group and project sponsors. This was due to Machinery of Government changes, as well as some concerns around partner fatigue in being approached for involvement in research projects. However, informal discussions still took place with providers and partners through established relationships, to identify and gather practical examples of good practice. * Critical analysis of the findings and production of a report with recommendations. * Motivation and development of all project team members and implementation of leadership and management expertise developed Resources The main resources required used to achieve these objectives were the 14 members of the project team. Specific tasks and timeframes were agreed. More details can be found in the project plan at Appendix 1. Mix of group and 1 to 1 discussions recorded The project plan is a comprehensive document which outlines the methodology and approach taken. It also includes a detailed business case outlining the rationale for the project, as well as an analysis of stakeholders, risk register and communication plan and a detailed breakdown of the work undertaken. 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