Building a Better Future – Have We Been Here Before?

Hello PPMA members and friends

This is apprenticeship week and we are told that we are in a “new era for apprenticeships.” At the start of the week there was an announcement of new “higher” apprenticeships, offering the equivalent qualification to a degree. The Skills Minister, Matthew Hancock, said at the launch, “Britain’s prosperity depends on the high-level skills that creates world-beating products and services. By creating new apprenticeships at degree level and above, the Government is sending a clear signal that practical learning is a viable route to the professions.” My answer to that is “yes, but ….” and I think we need to take a broader view.

Mr Hancock was one of the speakers at an event I attend last week (at the kind invitation of Manpower – thank you. “Preparing the 2025 Workforce” brought together people from education, government and business to discuss the challenge facing this country, in terms of the gap between the skills the economy needs now and in the future and the skills people actually leave full time education with.

It is striking that GDP per hour in this country is 27% lower than in the US, 25% lower than in France and 22% lower than in Germany. Those hosting the event have concluded that “without bold action to re-engineer our education system, so it better supports current and future skills requirements, our global competitiveness and GDP growth will be impacted.”

Alongside the competitiveness imperative, there is the cost, financial and social of not doing so. Whilst this issue is not just about young people and the needs of other generations should not be ignored, but if we were to bring the 1.03 million young NEETS into employment, that would save the public purse around £13bn over their lifetimes. Key to this integration into the workforce are the acquisition of basic and core business skills (although I am sure economic growth would help as well!).

Now I am sure that his is not the first time that the government, business and education have come together to focus on the issue, nor to have concluded that they need to work more closely together to develop a long-term strategy to address these challenges. It was in 1999 that Tony Blair famously said that it was all about “education, education, education” and set a target of getting 50% of young people into university by 2010. (Just as an aside, the best tweet I saw as the white smoke emerged from the Vatican chimney was “It’s going to be Blair and his grin that emerges on the balcony …. I just know it”). Blair’s target was not quite reached, but 43% of 18 to 30 year olds were by the target year studying for a degree. The problem though is that I now see many of them competing for jobs where the person specification only requires GCSEs. This strategy appears not to have been joined up, preparing people for life maybe, but not work. What the strategy has done is set the bar higher in terms of individual expectations around qualifications.

People do not appear to value qualifications outside of a degree. The CIPD’s recent Employee Outlook survey found that only one in ten parents ranked apprenticeships as their preferred qualification for their children, whereas nearly half chose a university degree.

It is important that we promote the value of apprenticeships and this week is a great opportunity to do so. I know that many local authorities are running events this week. In London, both the Boroughs of Redbridge and Islington are holding events for employers and young people.

Whilst there have been some great announcements of companies extending apprenticeship programmes on twitter, employers still bemoan the bureaucracy around apprenticeships which prevents many smaller businesses participating. For many local authorities, funding issues are limiting the extent to which they can continue to support apprenticeship schemes, even when they understand their value. If we are serious about addressing about creating a “new era” these barriers need to be overcome.

More fundamentally however, business, government, educators and the public sector need to come together to create what I think is a more subtle strategy. We need to develop specific talent pipelines for jobs in all sectors and at all “levels”. Whilst an aspiration to gain a degree or higher apprenticeship is laudable, we must recognise that for the economy and society to operate effectively we need fantastic tyre fitters, care workers and hospital administrators. We have to start by showing that we really value all kinds of jobs, particularly those in the public sector, creative a narrative around their importance and the fact that they represent a worthwhile career, where people will be rewarded appropriately and they can develop and progress. We can then work together to develop the specific skills needed to undertake these roles.

At the”Preparing the 2025 Workforce” event, many examples of good practice and young people excelling were identified, to make the point that it is not all doom and gloom. However there have been many great words and strategies in the past and our position on skills and on unemployed young people does not improve. We do need to go “back to basics” on this (to quote another PM) and think about the value we place on different jobs and different skills. In doing so, the public sector has a key role to play and I hope the PPMA can engage fully in the debate about delivering the workforce we need in 2025.

Martin

By | 2017-07-30T12:23:20+00:00 March 14th, 2013|Categories: Martin Rayson|4 Comments

4 Comments

  1. Nick Heckscher 15th March 2013 at 3:30 pm

    Afternoon Martin – something resonates above -I think your point about people not valuing qualifications other than a degree is interesting, as it’s very easy in the current labour market to “overspec” requirements. I have a feeling we’re seeing a shift in Hiring intentions towards higher level roles – is this to do with the changing shape of the sector, more outsourcing or “overspeccing”? Whatever the reason, there seems to be a genuine reduction in entry-level jobs as well as the recruitment of non entry-level folk into entry level positions

  2. Martin Rayson 16th March 2013 at 7:51 am

    That is interesting Nick. You are right in suggesting this trendcould reflect the changing shape of the sector, the creation of fewer roles, focused more on commissioning. It could also reflect the need to bring in people with particular skills to help bring about change. It could equally be managers feeling that with fewer people in the organisation they need the comfort blanket of having people with additional skills, “just in case”.

    Our TUs are concerned that within the permanent structures being created in our organisation (and we are not adopting across the board a commissioning model) roles are being taken out of the “middle”. Higher paid and lower paid jobs remain ( and indeed they suggest some upgrading and downgrading is taking place) and their concern is around the ability to create and demonstrate clear career paths for people in the future.

  3. Raffaela Goodby 22nd March 2013 at 6:28 pm

    I like the idea of more ‘kudo’ been given to non university paths from school. When I left school (Long Long Time Ago) it was all Uni Uni Uni and if you didn’t get in to one you were considered a bit thick. However, the schemes that some organisations now run, like KPMG who take school leavers and pay for their accountancy degree – are much more desirable as you end up with experience AND qualifications and no huge student loan to pay off.

    Kudos to the alternative career paths!

  4. Richard Crouch 23rd March 2013 at 4:57 pm

    I haven’t been able to re-post my earlier comment but the nub of what I said earlier was that i share the same worry as Martin of us seeing the same rhetoric again with little by way of action. It was only a few years ago that the IDEA published a figure which told of councils employing only an average of 7 apprentices. A figure I find disgraceful and hardly surprising its a sector with such an ageing population. Yes the sector employs more graduates than apprentices but these numbers are also v low. It’s about time the sectors workforce mirrored that of the local economic population, not just in terms of age but disability and ethnicity as well. HR should perhaps influence this agenda a little more and ensure such a statement is in all People Strategies and Workforce Plans by default.

    And with regard to vocational route ways, I’m in absolute agreement with Raffaela. Having spent nearly half of my career supporting young people gain not just a vocational qualification but a sustainable job as well, I know it works, I know it’s cost effective and I know they make great employees. And….the govts direction on GCSEs …..oh dear oh dear…..

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