Working together as one voice Environmental and Land-based

Transcription

1 Working together as one voice Environmental and Land-based Scottish Sector Profile 2009

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3 Environmental and Land-based Contents Contents Introduction 02 Summary of findings 02 About 03 Definition of the industry 03 Sector characteristics 04 Recruitment 06 (vacancies, hard-to-fill vacancies and skill shortages) Qualifications sought 07 from candidates Workplace development 08 (skill gaps and training) Human resource 10 management Data quality 12 01

4 Introduction/Summary of findings Environmental and Land-based Introduction Summary of findings The sector profiles, originally produced by Futureskills Scotland, have been collated by the Alliance of Sector Skills Councils (Scotland) and presented for each licensed Sector Skills Council (SSC). The SSC for environmental and land-based industries is. Sector Skills Councils are employer-driven organisations that together articulate the voice of employers of around 90% of the UK s workforce on skills issues. The Alliance is an organisation comprising all SSCs. Its core purpose is to: Act as the collective voice of the SSCs; Promote understanding of the role of SSCs within the skills system across England, Scotland, Wales and Northern Ireland; Co-ordinate policy positions and strategic work on skills with stakeholders across the four home nations; and Help build the performance capability of the SSCs to ensure they continue to work effectively on the employer-driven skills agenda. The principal data source is the Scottish Employers Skill Survey 2008, which is a survey undertaken by Futureskills Scotland on a biennial basis. More information about this survey, and the full results, can be found in Skills in Scotland This report is available on the Scottish Government website ( Other data in this profile has been taken from official sources; all sources are footnoted. By comparison with the average for all industries, the Environmental and Land-based sector is characterised by: A high proportion of very small workplaces; A much higher proportion of those working on a self-employed basis; A much lower proportion of female workers and an older age profile; and A much higher proportion of people employed in skilled trade and elementary roles. Over the period March 2003 to March 2008, the rate of growth in relation to employment was higher than the average for all industries, but a small decrease in numbers of workplaces was evident. In terms of recruitment, measured as a percentage of numbers employed, Environmental and Land-based sector employers report: A high proportion of vacancies that are hard-to-fill; and A high proportion of skill shortage vacancies as a proportion of employment. Those last recruited into the Environmental and Land-based sector were less likely to have a degree level qualification than is the case for all industries. In terms of workforce development, Environmental and Land-based sector employers are: More likely to report workforce skill gaps; Less likely to provide training; and Less likely to have provided both on and off-the-job training than other Scottish employers. In relation to human resource management, Environmental and Land-based sector employers are much more likely to use: Temporary or contract staff. 02

5 Environmental and Land-based About /Definition of the industry About is the SSC for environmental and land-based industries. The footprint covers the following 17 industries which can be grouped into three main areas: Land management and production: Agricultural crops; agricultural livestock, aquaculture, production horticulture; fencing, floristry; land-based engineering; trees and timber. Animal health and welfare: Animal care; animal technology; equine; farriery; veterinary nurses. Environmental industries: Environmental conservation; fisheries management; game and wildlife management, horticulture, landscaping and sports turf. are an employer-led organisation licensed by Governments across the UK to determine, promote and ensure that there are appropriate levels of skills and business development support for businesses and individuals in the sector. has an extensive research programme and produces additional reports for Scotland, and the UK as a whole, such as: An annual Sector Skills Assessment which synthesises evidence on the characteristics of the sector and employers skills needs. An annual Assessment of Current Provision which provides evidence on the supply of qualifications and learning to the sector. As well as this, carry out specific projects in order to fill gaps in the available evidence base. To view the key research products and papers, please visit Definition of the industry The Environmental and Land-based sector is defined as covering the following Standard Industrial Classification (SIC 2003) codes: SIC Code Description DEFRA/Scottish Executive Agricultural Data Growing of cereals and other crops not elsewhere classified Growing of vegetables, horticultural specialities and nursery products Growing of fruit, nuts, beverage and spice crops Farming of cattle, dairy farming Farming of sheep, goats, horses, asses, mules and hinnies Farming of swine Farming of poultry Other farming of animals Growing of crops combined with farming of animals (mixed farming) Agricultural service activities Animal husbandry service activities, except veterinary activities Hunting, trapping and game propagation including related service activities Forestry and logging Forestry and logging related service activities Operation of fish hatcheries and fish farms Saw milling and planing of wood, impregnation of wood Wholesale of agricultural machinery and accessories and implements, including tractors Veterinary activities Botanical and zoological gardens and nature reserve activities However, it is important to note that SIC 2003 codes provide a narrow definition of the sector. Some of the industries within the sector can not be defined in terms of SIC code. Much of the analysis within this profile excludes industries such as fencing, floristry, animal care, animal technology, equine, farriery, environmental conservation, fisheries management, game and wildlife management. 03

6 Sector characteristics Environmental and Land-based Sector characteristics 1 According to Official Statistics, there are around 18,180 Environmental and Land-based sector workplaces in Scotland accounting for about 9. of all workplaces in Scotland. Including those self-employed, 1 there are about 63,000 people in employment in the sector, of which about 38,300 are employees. Numbers in employment in the Environmental and Land-based sector account for about 2.6% of all Scottish jobs. 2 2 have compiled an estimate from a number of sources to fill in the gaps missed in Official Statistics. estimates that there are around 21,000 businesses within the sector employing 115,000 people. 3 3 Over the period March 2003 to March 2008, numbers of Environmental and Land-based sector workplaces decreased by about -1% and numbers in employment in the sector increased by about 16%. 4 This compares with an average increase in numbers of workplaces for all industries in Scotland of 7% and numbers in employment of 9%. Table 1 Employment, employees and establishments Source: Inter-Departmental Business Register, March 2008, March 2003 Numbers in 2008 as a proportion of all industries % change between 2003 and 2008 % change between 2003 and 2008 Number of sector workplaces 18, % 7% Numbers in employment 63, % 16% 9% Numbers of employees 38, % 35% 10% 4 In relation to the size of workplaces, the Environmental and Land-based sector has a relatively high proportion of very small workplaces, with 84% employing less than 5 employees, compared with 6 of all workplaces in Scotland. 5 Chart 1 Size of workplaces; and Source: Inter-Departmental Business Register, March % 80% 84% 70% 60% 6 50% 40% 30% 20% 17% 10% 11% 4% 6% 10% 1% 0% 2% 0% 1% 0.5% 0% 0.0% By comparison with the average across all industries in Scotland, Environmental and Land-based sector workplaces are characterised by: A much lower proportion of female employees (29% compared with 51%); and A higher proportion of part-time employees (38% compared with 32%). Table 2 Gender and part-time profile; Employees within and the average for all industries Source: Annual Business Inquiry 2007 Part-time employees Part-time employees All employees All employees Male 22.5% 7.5% 70.9% 49.0% Female 15.6% % 51.0% Total 38.1% 31.8% 100% 100% 6 The Environmental and Land-based sector has a different pattern of jobs from the rest of the economy. There are much higher proportions of skilled trade and elementary staff, together accounting for almost two thirds (64%) of all Environmental and Land-based sector employees, by comparison with an average of 2 for all industries in Scotland. 1 As long as they are VAT registered those that are below the VAT threshold are excluded from the data 2 Inter-Departmental Business Register, March , Skills Assessment Inter-Departmental Business Register, March 2008 and March Inter-Departmental Business Register, March

7 Environmental and Land-based Sector characteristics Chart 2 Distribution of employees by occupation Source: Annual Population Survey 2007 Managers and Senior Officials Professional occupations Associate Professional and Technical Administrative and Secretarial Skilled trades occupations Personal service occupations Sales and Customer Service occupations 5% 5% 1% 10% 1 4% 11% 11% 9% 8% 1 15% 39% 8 The average gross weekly full-time wage for employees in Scotland in 2008 was Figures for all employees in the Environmental and Land-based sector in Scotland point to a slightly lower average weekly rate of pay, at Overall, 61% of all employers anticipated new or ongoing challenges over the next 12 months, a somewhat lower proportion than the 69% reported by the Environmental and Land-based sector. 10 It is important to set employers responses to skills-related questions in a wider context. Employers were asked to identify the main challenges they anticipated facing over the next 12 months. The challenge mentioned most often by Environmental and Land-based sector employers was costs or prices generally, and fuel prices specifically, together with cash flow. Employers in other sectors most frequently mentioned a downturn in the economic climate. Process plant and Machine Operatives Elementary occupations 8% 7% 25% 12% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% Table 3 Main challenges anticipated by employers over the next 12 months Costs/ prices inc interest rates, taxes, inflation, etc Fuel Prices 34% 30% 10% 10% 7 Nearly half (49%) of the people in employment in the Environmental and Land-based sector are aged 45 or more 6. This compares with 39% for all industries in Scotland. Cash flow Attracting appropriately skilled staff Labour costs 26% 20% 19% 12% 4% Chart 3 Age profile of people in employment Source: Annual Population Survey 2007 Keeping existing customers/business Downturn in industry 9% 6% 60% Attracting new customers 12% 50% 40% 30% 37% 46% 49% 39% The figures relate to those employers that anticipate at least some challenges over the next 12 months. 20% 10% 14% 15% 0% Annual Population Survey Annual Survey of Hours and Earnings

8 Recruitment Environmental and Land-based Recruitment (vacancies, hard-to-fill vacancies and skill shortages) 11 About 60% of employers in the Environmental and Land-based sector have recruited in the last 2-3 years compared with the all industries average of 72%. 12 Of those employers who had recruited, those in the Environmental and Land-based sector were much more likely to have last recruited a person into an elementary role, than is the case for all industries. Table 4 Last role recruited in the last 12 months Elementary staff Skilled Trades staff Machine Operative staff Professionals Managers Sales and Customer Services staff 4 5% 5% 1% 14% 10% 6% 7% 7% 1 Table 5 Vacancy, hard-to-fill vacancy and skill shortage vacancy rates Vacancies as a % of employment Hard-to-fill vacancies as a % of employment Skill shortage vacancies as a % of employment Hard-to-fill vacancies as a % of vacancies 14 Measured as a proportion of employment in each respective occupational group, vacancies within the Environmental and Land-based sector were most evident in relation to skilled trade staff, followed by operative staff. Measured on the same basis, hard-to-fill vacancies were also most evident in relation to skilled trade and operative staff. 4% 2% 78% 2% 1% 50% 13 A skill shortage vacancy is a specific type of hard-to-fill vacancy that occurs when an employer cannot find applicants with the skills, qualifications or experience to do the job. Skill shortages in Scotland affect about 9% of all employers in Scotland. Where skill shortages and other hard-to-fill vacancies occur, they can have potentially severe consequences for employers. Compared with other sectors, the Environmental and Land-based sector is characterised by: A slightly higher proportion of vacancies as a proportion of employment; A slightly higher proportion of hard-to-fill vacancies as a proportion of employment; A higher proportion of skill shortage vacancies as a proportion of employment; and A higher proportion of hard-to-fill vacancies as a proportion of vacancies. 06

9 Environmental and Land-based Qualifications sought from candidates Qualifications sought from candidates 15 Ideally, 37% of employers in all industries that had recruited over the previous 2-3 years were looking for people with a particular qualification. Within the Environmental and Land-based sector, this figure was somewhat lower at When looking at the specific qualifications held by recruits, those last recruited into the Environmental and Land-based sector were more likely to have no qualifications at all (31% compared to 17% for all industries) and less likely to have a degree qualification than was the case for all industries (15% compared with 2). Table 6 Level of qualification held by last recruit Qualifications below Scottish Standard/O grades (Access Courses) Scottish Standard Grades (intermediate)/o grades/gcses Scottish Highers/SVQ1/2/ A levels/trade apprenticeship/ Cert. of Higher Education Degree level (Degree, Diploma of Higher Education, SVQ 3/4) Above degree level (Doctorate, Masters, Post Graduate Diploma/ Certificate, SVQ 5) HGV/PSV/forklift licence Other No qualifications at all Don t know 1% 18% * 15% 0% 1% * 31% 14% 2% 1 19% 2 4% 1% 2% 17% 19% Base: Employers that recruited over the last 2-3 years. *Indicates the figures are not robust enough to report. 07

10 Workplace development Environmental and Land-based Workplace development (skill gaps and training) 17 A skill gap exists when an employer thinks a worker doesn t have enough skills to perform their job with full proficiency. Skill gaps are more common than skill shortages, affecting around one in five Scottish workplaces. Compared with other sectors, skill gaps in the Environmental and Land-based sector affect a lower proportion of employers at 1. Within the sector they are most evident in relation to elementary, machine operative and managerial staff, measured as a proportion of relevant employees. 18 Where skill gaps arise, employers in the Environmental and Land-based sector most frequently cite weaknesses in planning and organising and other technical and practical skills. More than 30% of employers in the Environmental and Land-based sector also cite weaknesses in team working, basic computer literacy/it, customer handling and problem solving skills. 19 Across the economy as a whole, the majority of employers report that skill gaps cause them either no problems (cited by 27% of employers with skill gaps) or only minor problems (57%). This compares with employers in the Environmental and Land-based sector of 21% and 72% respectively. For employers in the Environmental and Land-based sector who reported that skill gaps had either a major or minor impact on their business, over 55% said they led to difficulties meeting customer service objectives and 49% that they led to difficulties meeting required quality standards. Chart 5 The impact of skill gaps;. The eight most frequently cited impacts have been selected Difficulties meeting customer service objectives 55% 62% Chart 4 Skills that need improving; Difficulties meeting required quality standards 49% 57% Planning and organising Other technical and practical skills Team working skills Basic computer literacy/ using IT Customer handling skills Problem solving skills Written communications skills Oral communication skills Using numbers Literacy skills Soft skills/ personal attributes 47% 54% 46% 44% 42% 47% 42% 27% 37% 52% 32% 52% 29% 3 28% 44% 20% 20% 20% 21% 2% 1% 0% 10% 20% 30% 40% 50% 60% Increased operating/ running costs Difficulties introducing new working practices Delays developing new products or services Difficulties introducing technological change 29% 28% 3 35% 42% 42% 40% 4 0% 10% 20% 30% 40% 50% 60% 70% Base: Employers reporting skill gaps that identify an impact on establishment performance. 20 Where employers in the Environmental and Land-based sector do take action to overcome skill gaps, changing working practices followed by relocating work within the company, recruiting from outside Scotland and expanding recruitment channels are the main responses. The main response in all industries is to provide further training. Base: Employers reporting skill gaps. 08

11 Environmental and Land-based Workplace development Chart 6 Responses to skill gaps by employers; Table 7 Status of training undertaken Charged working practices 42% 5 Train both on and off-the-job Train on-the-job only 17% 20% 36% 19% Train off-the-job only 12% 10% Relocated work within the company 24% 29% Any training Do not train 49% 51% 65% 35% Recruited from outside Scotland Considering off-the-job training only, an estimated 4 of employees in all industries received such training over the previous 12 months, compared with 34% within the Environmental and Land-based sector. Expanded recruitment channels 21% 22% 0% 10% 20% 30% 40% 50% 60% Base: Employers with skill gaps that have taken measures to improve staff proficiency. 24 The most common type of off-the-job training provided by employers in all industries was job specific. Those employers that undertake any off-the-job training within the Environmental and Land-based sector were most likely to provide health and safety/first aid training and training in new technology. By comparison with employers in all industries they were less likely to provide induction, supervisory and foreign language training. Table 8 Type of off-the-job training provided 21 Environmental and Land-based sector employers are less likely to have funded or arranged training for their staff than employers in other sectors (49% compared with 65% in all industries). 22 Employers in the Environmental and Land-based sector were less likely to have provided both on and off-the-job training by comparison with the average for all industries. Health & safety/ first aid training Training in new technology Induction training Supervisory training Training in foreign languages 65% 51% 34% 18% 1% 69% 51% 50% 32% 4% The figures relate only to those employers that undertake off-the-job training. 09

12 Workplace development/human resource management Environmental and Land-based 25 For those employers in all industries that had not funded or arranged any training over the past 12 months, the main reason for not doing so was that staff were considered already to be fully proficient, or no training was necessary in the business. These findings were mirrored by such employers within the Environmental and Land-based sector. Human resource management 29 By comparison with employers in all industries, Environmental and Land-based sector employers are less likely to adopt key human resource management practices. Table 9 Adoption of key human resource management practices 26 Employers in the Environmental and Land-based sector who had provided or arranged off-the-job training were most likely to use private training or industry bodies/professional associations. 27 The main source of skills-related advice from external organisations used by Environmental and Land-based sector employers appears to be from educational institutions. Business plan Management accounts Sales and marketing plan Staff training plan None of the above 57% 64% 26% 25% 16% 61% 68% 44% 54% 1 28 The proportion of all employers in Scotland that participate in different Government Training Schemes is as follows: 8 Modern Apprenticeships (9%) Skill Seekers (6%) New Deal (5%) Training for Work (5%) Get Ready for Work (4%) Data for does not meet robustness criteria established by Futureskills Scotland and is therefore not available. 30 The integration of different HR activities with the overall business strategy amongst employers within the Environmental and Land-based sector appears to be most frequent with respect to recruitment and retention, followed by pay and benefits. 31 The use of different employment practices varies between those employers in the Environmental and Land-based sector and those in all industries. In particular, the use of temporary/contract staff appear to be more widespread in the Environmental and Land-based sector than the average for all industries, but all other identified employment practices are less widespread. 8 This figure is calculated using all employers in Scotland as the base. 10

13 Environmental and Land-based Human resource management Table 10 Use of different employment practices Chart 7 Importance of different employment practices; Environmental and Land-based sector and all industries Flexibility for employees to decide how their work is organised or carried out Arrangements for direct involvement of employees in decision making and problem solving Use of part-time staff Use of temporary labour/ contract staff Formal dispute resolution procedures Explicit policy on equality/ diversity in the workplace Incentive or performance related pay Formal survey of employees views or opinions Formal staff performance review Quality Circles 9 79% 71% 56% 56% 39% 37% 25% 24% 22% 16% 80% 77% 64% 39% 55% 6 37% 37% 49% 22% Flexibility for employees to decide how their work is organised or carried out Arrangements for direct involvement of employees in decision making and problem solving Explicit policy on equality/ diversity in the workplace Temporary layoffs/ reduced working time, where necessary Use of part-time staff Formal dispute resolution procedures Formal staff performance review Profit sharing/share options/ gain sharing for employees 1 12% 9% 17% 22% 20% 27% 36% 3 36% 41% 50% 57% 58% 68% 0% 10% 20% 30% 40% 50% 60% 70% 80% 32 When employers were asked about the importance of different employment practices, those in the Environmental and Land-based sector were most likely to cite flexibility for employees to decide how their work is organised or carried out and arrangements for direct involvement of employees in decision making and problem solving as very important. The above figures relate to the % of employers citing each employment practice as important or very important. Base: All employers who adopted at least one employment practice. 9 A participative management technique, used extensively by the Japanese, in which small groups of employees (10 or fewer) meet for an hour or two each week to discuss specific issues. Quality Circles usually follow a standard process of problem identification, root cause analysis, problem solving and implementation. 11

14 Data quality Environmental and Land-based Data quality The Scottish Employers Skill Survey is the largest survey of its kind in Scotland. It was originally devised to provide robust results on employers views on skills, training and recruitment for Scotland as a whole. To ensure that the results produced are both robust and comparable, a quality assurance exercise was undertaken by Futureskills Scotland, based on national statistical standards. Results from the 2008 Scottish Employers Skill Survey for all industry sectors were reviewed. Based on this, where there is a main indicator for which robust results cannot be presented, results across all industries are presented instead. Table 11 below sets out the number of establishments sampled for and all sectors by size band. Table 11 Sample size of Scottish Employer Skills Survey by size band and all sectors (Numbers of establishments sampled) Source: Futureskills Scotland Total All 76 1, , , ,274 In addition to the Scottish Employer Skills Survey, a number of other data sources have been used. This includes data relating to: Numbers of workplaces and employment from the Inter- Departmental Business Register, March This data includes employees and those self-employed that are registered for VAT, but excludes those working on a selfemployed basis but not VAT registered. It is therefore an under count of total numbers in employment. Numbers of employees working on a part-time and full-time basis by gender based on the Annual Business Inquiry It should be noted this data only relates to employees and excludes those working on a self-employed basis. Occupation and age based on the Annual Population Survey This data includes both employees and those working on a self-employed basis, but is only a sample survey. Data has been presented in percentage terms only. The average gross weekly full-time wage for employees based on the Annual Survey of Hours and Earnings

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16 Alliance of Sector Skills Councils, Scotland 28 Castle Street, Edinburgh EH2 3HT Telephone: Fax: Designed and produced by Hookson