2. An effective communications plan is in our view pivotal to encouraging employer engagement in effective skills utilisation.

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1 SKILLS UTILISATION COMMUNICATIONS ACTION PLAN 1 Introduction 1. The Skills Utilisation Leadership Group charged us - the Skills Utilisation Action Group - with examining how to increase the numbers of employers in the private, public and third sectors in Scotland who engage in activities to improve the effective use of skills in the workplace. Among other things, we were invited to consider the audiences the Leadership Group should be seeking to influence and how those audiences are segmented, addressing barriers to understanding among the different groups and any constraints under which they are operating. We were specifically asked to prepare a draft communications action plan. 2. An effective communications plan is in our view pivotal to encouraging employer engagement in effective skills utilisation. 3. This plan accompanies our report Reaping the Benefits, which outlines the actions we will take and makes recommendations to the Leadership Group on further specific actions that should, in our collective view, be taken, to encourage employer engagement in skills utilisation. Purpose of Plan 4. The purpose of this plan is to influence those who influence organisations, so that they can begin to increase awareness of the relevance and benefits of skills utilisation to organisations and of the range of workplace practices that may improve skills utilisation in their workplace. Scope 5. To overcome barriers to understanding, we suggest the Leadership Group communicate with those who influence employers rather than directly with the generality of employers. Influencing organisations, such as business representatives organisations and Sector Skills Councils, know how best to communicate with their audiences and are better placed to engage with employers in their own language. 6. We believe that this plan will provide a framework for communications with employers either with a latent interest (i.e. those that don t know where to start) or with a known interest but want further information about how to implement effective skills utilisation strategies. 7. In communicating with employers with a latent interest, the key issue is to increase understanding of skills utilisation issues in the context of organisational need and of the benefits of better workplace practices. We do not consider that communications with employers about skills utilisation in isolation would be particularly productive. We also suggest the term skills utilisation itself should be 1 This plan includes some revisions to the core messages and key messages to employees made by the Skills Utilisation Leadership Group after it was submitted to them by the Skills Utilisation Action Group. The plan, including the recommendations of the Action Group, has been approved by the Skills Utilisation Leadership Group 1

2 avoided as it is not in common usage. To overcome barriers to understanding, we recommend that in communicating with the generality of employers, skills utilisation messages are explicit but also integrated with other messages about organisational/business development. 8. In communicating with the interested, the key issue is to provide fairly specific information, advice and guidance on how to implement effective skills strategies in their type of workplace, including signposting the availability of relevant organisational development support services. 9. We also consider that availability of such information, advice and guidance would also make it easier to engage with employers with a latent interest in effective skills utilisation in the first place. Best Strategies Project 10. This plan includes the dissemination of the findings of the best strategies project, which involves research which is being undertaken by Scottish Enterprise and Skills Development Scotland to develop evidence based messages on workable skills utilisation techniques for appropriate audiences (phase one) and to investigate the link between skills utilisation and productivity (phase two). The research project will be informed by, among other things, in-depth employer case studies that are being collected as the skills utilisation project being undertaken by the UK Commission for Employment and Skills. The case studies should be available in summer The plan also includes the dissemination, when available, of more developed sector-specific advice on what organisational strategies for skills utilisation work best in particular circumstances and the benefits of such strategies. Understanding Skills Utilisation 12. We recognise that the Government Economic Strategy 2 and the skills strategy 3 redefined the parameters of the debate on skills. Previous skills agendas focussed only on the supply of skills. The Scottish Government s strategies recognise that skills have to be considered in a much broader context. Ensuring a quality lifelong learning system is clearly important, but this has to be matched by efforts to stimulate demand for skills and to foster workplace environments that support their effective use. 13. Drawing largely on the Leadership Group s vision statement, we found the diagram at Annex A helpful in describing the policy framework for skills in the workplace, and where the effective deployment of skills sits within it. The vision statement alongside the diagram may help set skills in its broader context for policy makers, stakeholders and practitioners. We have also developed a more basic diagram (Annex B), which may be useful more widely

3 14. Effective skills utilisation came to the fore as a policy imperative for Scotland because it was recognised the nation s relatively good record on skills qualifications has not translated as well as it could into enhanced economic performance. While that is undoubtedly true, we need to be careful not to pin too much on this national disconnect between skills qualifications and productivity. While information at a sectoral level is not available 4 we are fairly confident that this disconnect will not exist in every sector. It certainly won t in every organisation. We do not consider that this at all blunts the message that organisations will generally benefit from striving for continuous improvement in supporting and developing staff to use their skills effectively. Integrated Messages 15. More ambitious and productive organisations in Scotland will create greater demand for skills, some of which may be met through better deployment of existing skills. That said, it is not inevitable that organisations will see their skills advantage coming in part through more effective skills use. Organisations need to be aware of the potential role that more effective skills deployment can make to their skills needs. Otherwise organisations may create greater demand for skills and think of nothing of meeting that demand through the usual channels in other words simply turn to more acquisition and development without recognising the difference that better workplace practices could make to them. That is why Scottish Enterprise, Highlands and Islands Enterprise and Skills Development Scotland when they engage with firms across the range of their services will integrate messages about effective skills utilisation with messages about business development and skills acquisition and development, differentiated where appropriate to reflect market positioning, geography and size of organisation and taking into account equality issues. Approach 16. We propose an approach which identifies key influencers who will be conduits for communications. We have identified different influencing organisations for: cross-sectoral organisations; private sector organisations; public sector organisations; and third sector organisations. 17. An overview of the approach is at Annex C. 18. At the outset, communications would involve general awareness raising. As more information about which skills utilisation strategies might best work in particular circumstances becomes available, and as we learn more about what messages and approaches best motivate employers and employees, the messages and approaches will evolve. This is very much the start of an on-going long-term process that will require organisations to test approaches and messages and learn from each other about what works and when. 4 We understand that the Scottish Government is looking to gather additional information which will enhance our evidence base on productivity, including sectoral information. 3

4 Taking a Sectoral Approach 19. The Leadership Group invited us to take a sectoral approach. We know from the Skills Utilisation Literature Review 5 that there is no one-size-fits-all model to improving skills utilisation in the workplace. There is a range of actions that employers can take to facilitate the better use of skills and overcome barriers that hinder their full and creative use. However, the evidence as to which are the most effective in given circumstances such as organisational size, sector or market positioning is far from complete. The need to take a sectoral approach was reenforced to us by the preliminary findings of report in to product market strategies and skills, which suggested that not only may there be systemic differences between sectors in the demand for skill, but also in management practices that are used to utilise those skills We outline in our Reaping the Benefits report that we envisage a role for sector lead organisations to communicate integrated messages about skills utilisation to employers in their sectors 7. Scottish Enterprise, Highlands and Islands Enterprise Skills Development Scotland and the Alliance of Sector Skills Councils would have specific responsibility for the communication of cross-sectoral issues, such as the use of ICT systems and other technologies and common issues affecting small and medium-sized enterprises. 21. Our report also recommends the establishment of a skills utilisation crosssectoral communications and learning network. The role of the network would include helping: key delivery agencies and other stakeholders exchange information and learn from each other about how best to communicate about skills utilisation, both in terms of the messages and the best forms of delivery of those messages; and share knowledge and experience across sectors and to help identify those working practices that have wider effective application beyond a particular sector. NHS EDUCATION FOR SCOTLAND (NES): ENCOURAGING EMPLOYER INTEREST IN EFFECTIVE SKILLS UTILISATION NES, as a national organisation, has well established processes for liaising with the territorial health boards across Scotland - the main employers. The process enables a dialogue and that include skills utilisation. The process has direct influence on the core work within NES and results in workstreams directly linked to skills utilisation. NES has established and hosts the national strategic alliance committee which brings together the main employers in the NHS in Scotland as well as education providers. Skills utilisation has been addressed within this forum The report Product Market Strategies and Workforce Skills has since been published 7 The sectors are: creative industries, energy, financial and business service, food and drink, life sciences, tourism, construction, universities, local government, health and third sector. 4

5 NES has also established a number of demonstrator projects that can serve as exemplars for skills utilisation. In the area of Knowledge Services, NES has established, in the context of demonstrator projects, new roles linked to information literacy where individuals have been trained and developed to be able to provide health related information in the community setting. Web Portal 22. The Scottish Government will develop a web portal in June 2009 that will signpost where employers can go for advice about better workplace practices to support effective skills utilisation. Timeline 23. The proposed timeline is: June 2009 Development of Scottish Government web portal June 2009 onwards General awareness raising Summer 2009 Dissemination of UK Commission case studies September 2009 Establishment of cross-sectoral network January 2010 Dissemination of research findings (phase one) 8 May 2010 onwards Dissemination by sector leads of sector-specific advice Financial implications 24. While we do not consider that initial communications would have any significant initial cost implications, any future funding requirements would depend on how the plan develops. Evaluation 25. We recommend that the cross-sectoral network evaluates the success of the communications action plan and reports regularly to the Leadership Group. 8 The timeline for phase two of the research has still to be determined. 5

6 CORE MESSAGES While investing in skills is vitally important, on its own it is not enough. Organisational performance and productivity is driven by the effective use of skills. Many organisations have an untapped resource the underused skills of their workforce. By improving how the existing skills of the workforce are deployed, organisations will be much better placed to weather the economic downturn and to take advantage of future opportunities. It is an issue that is also important beyond the current economic situation. A low growth economy is a concern for each and every one of us because it will dramatically affect the way we will live in the future. It affects our job opportunities, our incomes and the aspirations of our people. Making the best use of skills and our people is of fundamental importance in driving the high skill, high productivity workplaces that we seek. Effective skills utilisation is about: confident, motivated and relevantly skilled individuals who are aware of the skills they possess and know how to best use them in the workplace working in workplaces that provide meaningful and appropriate encouragement, opportunity and support for employees to use their skills effectively in order to increase performance and productivity, improve job satisfaction and employee well-being, and stimulate investment, enterprise and innovation. With the right encouragement, support, (and in some circumstances, additional training), staff may be able to use their skills more effectively. The main enablers of better workplace practices are leadership and management and employee trust and motivation. Equality issues are also an integral feature. Employers and employees (and their representatives) need to work in partnership to deliver sustainable meaningful change. The impact of new skills training can be maximised if off-the-job training is effectively managed to ensure that what is learned is actually transferred to the workplace. The ambitions for effective skills utilisation are set out in Annex B. Summarised evidence of the benefits of better working practices is at Annex D. Examples of better working practices are outlined in Annex E. 6

7 CONDUITS Delivery Agents Scottish Enterprise, Highlands and Islands Enterprise and Skills Development Scotland will deliver integrated skills utilisation messages to their groups and clients. The Scottish Funding Council will deliver integrated skills utilisation messages to colleges and universities, both in terms of their role as learning providers and as employers. Cross-Sectoral Organisations We have identified three main conduits for cross-sectoral skills utilisation messages. The Chartered Institute of Personnel and Development will deliver messages to professional/awarding bodies about the importance of integrating skills utilisation issues in to the delivery of leadership and management learning and teaching. The Alliance of Sector Skills Councils will deliver messages to Sector Skills Councils inviting them to consider ways in which skills utilisation can be more effectively promoted as part of their work. Sector Skills Councils will deliver integrated skills utilisation messages to employers and to organisations with an interest or role in the provision of information, advice and guidance in their relevant sectors 9. The Scottish Trades Union Congress will deliver messages to affiliated unions and the Trade Union Learning Network. The Scottish Union Learning Team will consider ways in which skills utilisation can be more effectively promoted as part of its work. Key messages to employees about effective skills utilisation include: more rewarding jobs; increased job satisfaction/contribution/motivation; more aware of own abilities; can be easier to solve problems; potentially better career opportunities and increased job security; better working environment; more autonomy; and unlocking your potential. 9 The mapping of the organisations in Scotland with a potential interest/role in the provision of information, advice and guidance, which was undertaken by Alliance of Sector Skills Councils (Scotland) at our request, can be found at 7

8 Private Sector Channels of Communication We have identified three primary channels of communication: 1. business representative organisations for general communication; 2. sector lead organisations 10 ; and 3. private sector leaders to explore approaches. Messages In order to overcome barriers to understanding, we strongly suggest that influencing organisations integrate skills utilisation messages with other messages about business development. We do consider that communications with employers about skills utilisation in isolation would be productive. The specific skills utilisation messages we suggest that they stress to employers are: effective workplaces can make you more productive is about unlocking the firm s potential; effective workplace practices can help you become more efficient. Think about your bottom line - more profit; better working practices can help retain and recruit staff; and you can maximise the impact of your skills investment by creating a workplace environment that supports the effective use of those skills. Business representative organisations The Institute of Directors will deliver messages to business representative organisations to: raise awareness of skills utilisation through an integrated approach to business development; consider highlighting effective skills utilisation through Business Awards; and help signpost assistance to the web portal. Sector lead organisations Sector lead organisations would communicate integrated messages about skills utilisation to employers in their sectors (differentiated where appropriate to reflect market positioning, geography and size of organisation and taking into account equalities issues). 10 This communication channel is for the following sectors: creative industries, energy, financial and business service, food and drink, life sciences, tourism and construction. 8

9 Private sector leaders The Leadership Group highlighted supply chain procurement practices of Scotland's biggest industries as an example of a means that could drive demand for skills utilisation. By improving how the existing skills of the workforce are used, organisations will be much better placed to weather the economic downturn and plan for recovery. We recognise that in the current economic situation it would be difficult to encourage industries to use their supply chain practices to require suppliers to deliver effective skills utilisation. However, we believe there may well be opportunities for large companies to promote skills utilisation messages. This is a novel approach and we suggest that we explore what approaches might be effective. We therefore propose as a starting point that two private sector leader organisations (both of which are represented on the Skills Utilisation Leadership Group) promote skills utilisation messages through their networks. Lessons would be learned by looking at the different practices used by them and identifying what worked and what didn t to inform future communication strategies involving the networks of other large companies. Microsoft will disseminate messages about effective skills utilisation to members of its partner network and signpost assistance. BT Scotland will disseminate messages about effective skills utilisation to its business customers and signpost assistance. Microsoft and BT Scotland will work together to ensure that lessons are learned from the different practices used by them to promote messages about skills utilisation. 9

10 Public Sector Channels of Communication We have identified three primary channels of communication: 1. the Convention of Scottish Local Authorities (COSLA) will deliver messages to local government; 2. NHS Education for Scotland will deliver messages to health bodies; and 3. the Scottish Government will deliver messages to other public bodies. The specific skills utilisation messages we suggest are stressed are: the public sector should act as an example of good practice to other employers; effective workplaces can make you more productive and efficient; effective workplace practices can help you improve quality and effectiveness; a culture of effective skills use can help your organisation respond and manage change better; better working practices help retain and recruit staff; and you can maximise the impact of your skills investment by creating a workplace environment that supports the effective use of those skills. Local Government COSLA will invite Scotland s Councils to: consider whether, where appropriate, their procurement processes contribute to effective skills utilisation within their organisations; and review Council working practices to ensure that the skills of Council staff are used effectively. Health sector NHS Education for Scotland will: include skills utilisation in the agenda of liaison meetings with health and social care employers and educational providers; and take the concept of skills utilisation into discussions round national health and social care priorities and development. Public sector (other) The Scottish Government will: communicate how it and others are leading by example and invite others to do the same; advise public bodies to consider whether, where appropriate, their procurement processes contribute to effective skills utilisation within their organisations; 10

11 recommend that self-evaluation frameworks encompass effective skills utilisation; and recommend to scrutiny bodies that, where appropriate, their frameworks allow scrutinised bodies to demonstrate that they are delivering effective skills utilisation. Third sector The Scottish Council for Voluntary Organisations will integrate messages about skills utilisation with its messages to third sector organisations about skills and workforce development. 11

12 SECTOR-SPECIFIC AND CROSS-SECTORAL MESSAGES Scottish Enterprise and Skills Development Scotland will disseminate the findings of research being undertaken into which organisational strategies best work in particular circumstances. In particular they will communicate: general, cross-sectoral and sector-specific messages about which organisational strategies to implement effective skills utilisation best works in particular circumstances to sector lead organisations. Sector lead organisations will be invited to co-ordinate activities with partner organisations in their sector to develop sector-specific messages further; and general and cross-sectoral messages to influencing organisations. Influencing organisations will be invited to disseminate these messages through their networks. Sector lead organisations will thereafter communicate sector-specific messages to organisations in their sector. Organisations will be advised to integrate messages about skills utilisation with their wider communications about improving productivity, competiveness and creating better jobs. 12

13 MEDIA OPPORTUNITIES May 2009 Scottish Government to announce by News Release the skills utilisation projects that will be supported by the Scottish Funding Council. June Scottish Government to announce by News Release public sector commitment to skills utilisation. Also announce agreement of companies and business sector representative organisations to promote skills utilisation messages. September Scottish Government to announce by News Release the creation of the cross-sectoral network for skills utilisation. January Scottish Government to announce by News Release findings of first phase of best strategies project, perhaps including 3 rd party quotes. Opportunity for Government comment on this issue in organisation/company newsletters/websites etc. Skills Utilisation Action Group May

14 ANNEX A A POLICY FRAMEWORK FOR SKILLS IN THE WORKPLACE A cohesive, high quality lifelong learning system centred on the individual and responsive to employer needs Knowledge Knowledge exchange exchange Ambitious and competitive organisational strategies, e.g. product and marketing strategies Innovation Progressive and innovative leadership and management SUPPORT SUPPORT GOALS OBJECTIVES AIMS GOVERNMENT PURPOSE Learning and teaching that Learning and teaching that enables the effective enables the effective application of skills in the application of skills in the workplace workplace BETTER SKILLS ACQUISITION AND DEVELOPMENT More confident, motivated and relevantly skilled individuals who are aware of the skills they possess and know how to best use them in the workplace Capital investment, including technological change External pressures, e.g. procurement GREATER DEMAND FOR SKILLS Enables Enables better better informal informal learning learning EFFECTIVE SKILLS UTILISATION Increase performance and productivity Improve job satisfaction and employee well-being Stimulate investment, enterprise and innovation BETTER WORKPLACE PRACTICES More workplaces that provide meaningful and appropriate encouragement, opportunity and support for employees to use their skills effectively To focus government and public services on creating a more successful country, with opportunities for all of Scotland to flourish, through increasing sustainable economic growth Government policies for investment, enterprise, skills and innovation that support the best use of skills in the workplace through social partnership NATIONAL OUTCOMES We live in a Scotland that is the most attractive place for doing business in Europe We realise our full potential with more and better employment opportunities for our people We are better educated, more skilled and more successful, renowned for our research and innovation Our young people are successful learners, confident individuals, effective contributors and responsible citizens We live longer, healthier lives Our public services are high quality, continually improving, efficient and responsive to local people s needs SUPPORT SUPPORT 14

15 AMBITIONS FOR SKILLS IN THE WORKPLACE ANNEX B Learning and teaching that Learning and teaching that enables the effective enables the effective application of skills in the application of skills in the workplace workplace GOALS BETTER SKILLS ACQUISITION AND DEVELOPMENT GREATER DEMAND FOR SKILLS BETTER WORKPLACE PRACTICES OBJECTIVES More confident, motivated and relevantly skilled individuals who are aware of the skills they possess and know how to best use them in the workplace Enables Enables better better informal informal learning learning More workplaces that provide meaningful and appropriate encouragement, opportunity and support for employees to use their skills effectively AIMS EFFECTIVE SKILLS UTILISATION Increase performance and productivity Improve job satisfaction and employee well-being Stimulate investment, enterprise and innovation 15

16 ANNEX C Skills Utilisation Communications Skills Utilisation Communications Delivery Agents Cross-sectoral Private sector Public sector Third sector Delivery Agents Scottish Enterprise Scottish Enterprise clinets clinets Highlands and Islands Enterprise Highlands and Islands Enterprise clients clients Skills Development Scotland Skills Development Scotland clients clients Scottish Funding Council Scottish Funding Council colleges colleges universities universities Cross-sectoral Professional/awarding bodies Professional/awarding bodies Chartered Institute of Personnel and Development Chartered Institute of Personnel and Development Institute of Leadership and Management Institute of Leadership and Management Scottish Qualifications Authority Scottish Qualifications Authority Investors in People Scotland Investors in People Scotland Institute of Directors Institute of Directors Chartered Management Institute Chartered Management Institute Sector Skills Councils Sector Skills Councils Alliance of Sector Skills Councils Alliance of Sector Skills Councils Sector Skills Councils Sector Skills Councils Trade Unions Trade Unions Scottish Trades Union Congress Scottish Trades Union Congress Scottish Union Learning Network Scottish Union Learning Network Private sector Business representative organisations Business representative organisations Institute of Directors Institute of Directors CBI Scotland CBI Scotland Scottish Chambers of Commerce Scottish Chambers of Commerce Scottish Council Development and Industry Scottish Council Development and Industry Scottish Financial Enterprise Scottish Financial Enterprise Federation of Small Businesses in Scotland Federation of Small Businesses in Scotland Sector leads Public sector Local government Local government COSLA COSLA local authorities local authorities Health sector Business Gateway Services NHS Education for Scotland Health sector health bodies NHS Education for Scotland Wider public sector health bodies Scottish Government Wider public sector other public bodies Scottish Government Sector leads creative industries other public bodies creative industries energy energy financial and busines services financial and busines services food and drink food and drink life sciences life sciences tourism Third sector Scottish Council for Voluntary Organisations Scottish Council for Voluntary Organisations tourism construction construction Private sector leaders Private sector leaders Microsoft Microsoft Microsoft Partner Network Microsoft Partner Network BT Scotland BT Scotland BT business customer base BT business customer base 16

17 ANNEX D EVIDENCE OF BENEFITS REPRODUCED FROM AMBITION 2020: WORLD CLASS SKILLS AND JOBS FOR THE UK, UK COMMISSION FOR EMPLOYMENT AND SKILLS, MAY Overall, organisations that adopt an integrated range of High Performance Working practices, are likely to perform better, Patterson et al. (1998) found that almost a fifth of the variance between productivity and profitability between firms could be attributed to human resource practices. Tamkin (2004) found that a 10% increase in business investment in human resource, training and management practices equated on average to an increase in gross profits per employee of between 1,083 and 1,568. Guest (2006) found that those companies that deploy a greater range of human resource practices can double the profit per employee compared to those implementing relatively few. Furthermore, they can reduce their labour turnover rates by half. Bevan et al. (2004) report that only three human resource practices had a major impact on productivity; flexible working practices (17% of all organisations), high training commitment (15%) and improving communication channels between staff and management (8%). Becker et al. (2001) found strong support for positive links between the existence and operation of high performance work systems within firms and financial performance, in particular shareholder value but more generally employee productivity. They calculated that a 35% improvement in the quality of strategy implementation resulted in a similar percentage increase in shareholder value

18 ANNEX E EXAMPLES OF BETTER WORKPLACE PRACTICES Progressive and innovative leadership and management and employee trust and motivation are the main enablers of better workplace practices. Employers and employees (and their representatives) need to work in partnership to deliver sustainable meaningful change. Employee trust and motivation is about, among other things, affording workers a say in decisionmaking over issues affecting the quality and organisation of the workplace. Equality issues are an integral feature of providing meaningful and appropriate encouragement, opportunity and support for employees to use their skills effectively. Examples of High Performance Working Practices Category Description Examples High involvement High employee involvement practices encourage a much greater level of trust and communication between employers and employees through involving them more in the organisation Circulating information on organisational performance and strategy Providing all employees with a copy of the business plan and target Internal staff surveys Staff suggestion schemes Total Quality Management Self-managed or self directed teams Cross-function teams Human resources practices Specifically targeted to create a greater depth of human capital investment and skill formation within the organisation Annual appraisal Formal feedback on job performance form superiors/employers Reviewing vacancies in relation to business strategy Formal assessment tools for recruitment Annual review of employees training needs Training to perform multiple jobs Continuous skill development Business Excellence Model Reward and commitment Practices to facilitate a greater sense of belonging and commitment to the organisation Performance pay for some employees Performance pay for all employees Profit-sharing for some employees Profit sharing for all employees Share options Flexible job descriptions Flexible working Job rotation Family friendly policies (Sung and Ashton 2005 cited in CfE (2008) Skills Utilisation Literature Review. Scottish Government. Edinburgh) Learning transfer is about maximising the transfer of knowledge and skills acquired through training to improve job performance. It involves a series of tasks performed by a range of individuals, such as supervisors, trainers, learners co-workers and sometimes others before during and after a learning intervention. Workplace design includes the use of self-managed work teams, multi-skilling, job rotation and the devolution of decision-making. Job design that encourages autonomy has the potential to influence an employee s opportunity to contribute within the workplace. It should provide the scope, challenge and level of responsibility to enable workers to utilise their skills ICT systems often dictate job design and discretion in many lower level service sector jobs. 18