University LMI Use in Economic and Social Transformation

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1 AUA Conference 2014 University LMI Use in Economic and Social Transformation Hamilton Galloway (EMSI) Andy Durman (EMSI) Trevor Thorne (Southampton Solent University)

2 About EMSI EMSI turn labour market data into useful information that helps organisations understand the connection between economies, people and work. We build user-friendly tools and services that help institutions, workforce planners and regional economic developers build a better workforce and improve the economic conditions in their regions. With more than 20 million data points across Britain, EMSI offers the most comprehensive industry and occupation data available, connecting education and workforce perspectives to business and the economy.

3 Universities as economic developers? Universities are increasingly expected to play the role not just of educator and researcher, but also: Economic driver Business developer Career counselor Strategic advisor Community champion This was highlighted in Sir Andrew Witty s Review of Universities and Growth in 2013, which provided a strong evidence-based foundation and call-to-action for university engagement in economic development.

4 Challenges involved Increased social and economic complexities Universities have traditionally been supply-driven producers of workforce talent without necessarily taking into account the needs and demands of the labour market Engaging in the role of economic driver without first understanding the underlying dynamics of the local economy is almost guaranteed to end up with the wrong solutions

5 Old strategic context? *Provided by Andy Westwood (GuildHE)

6 A new vision is required New narratives need to be developed to communicate opportunity and target activity to maximise the effectiveness of the university s roles in the economy A larger and more deliberate role in balancing the various supply/demand components of education and the labour market In other words, the need of the day is for universities to understand the needs of the labour market, so that they can form strategies which respond effectively to those needs

7 New strategic context? *Provided by Andy Westwood (GuildHE)

8 Understanding the local economy is key Strategic planning aimed at driving the economy must be based on a sound understanding of the local and regional economy Narrowing focus to the local and regional level provides a compelling format for local engagement, as well as increasing probability of success The point is clear: universities need to have good knowledge and a sound understanding of their local and regional labour markets to stand a chance of building a clear path towards economic progress

9 How Can Data Help? Labour Market Information (LMI) is more widely available than ever before Good LMI can give you an in-depth understanding of your local and regional labour markets, providing you with industry and occupation data, along with demographic trends and skills requirements With this information to hand, you can better understand the dynamics and trends of your local economy In turn this enables you to develop a demand-led strategy bridging the gap between the real needs of your local and regional economy, and your goal of driving economic growth in those areas

10 Role of LMI in Strategy 1. Create a common foundation for multiple stakeholders (civic organisations, business leaders, learners, faculty/staff, etc) 2. Enable a clearer format for communication: Move from anecdotal evidence to quantified narratives Mitigate conjecture in discussion 3. Establish a baseline of economic activity and metrics to track over time 4. Help facilitate the transition between strategy and action

11 Swimming through data LMI can often present as many challenges as it addresses. Breadth and depth of data allows for focused analysis to address specific economic, workforce and social needs: Enables more effective modelling techniques Enables better narratives and communication

12 What can a university do with good LMI and LMI-based systems? Examples of Best Practices: 1. Demand driven internal strategic planning 2. Targeted business and public facing activities 3. Increased outreach and widening participation 4. Efficient CEIAG to potential and current learners 5. Express their value to the community and local area in newer, more profound ways

13 Demand-driven strategies Describe and model changes in industry to identify opportunities for: business development, support, engagement and growth. Good Industry LMI: 1. Evaluates specific industry trends 2. Quantifies industry economic value 3. Measures competitiveness 4. Identifies supply-chain gaps This takes the form of many different metrics that build much broader perspectives and narratives of sectors and economic opportunity.

14 Southampton Solent University s needs Achieve excellent graduate level employment - Vision for 2020 Better understand regional labour market following demise of SEEDA (2012) Improve income through better employer engagement Develop demand-led curriculum model Develop University s role as regional RDA through relationships with LEPS and other business organisations Contribute to regeneration of regional economy

15 Report provides a detailed data analysis of sector opportunity and indicates where potential opportunities to grow and shape South Central England: Designed to be: 1. Initial scan of high economic potential industries 2. Provide focus for strategic development and planning activities 3. Serve as a baseline of the region s industry sector economy 4. First step toward building industry cluster strategies

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19 Building a Narrative Engineering activities/consultancy and R&D on natural sciences and engineering make up 91% of the high earning employment Significant levels of industry concentration compared to rest of England Significant historic growth and projected continued growth Majority of business are small/micro enterprises signals significant diversification, technological development and potential commercialisation/expansion opportunities

20 What is the emerging story? New themes are unfolding: 1. The key sectors of the past are not the growth sectors of the future 2. Opportunities to engage and support ICT, Transport/Logistics, Business/Professional Services, Engineering R&D 3. Billions of economic leakage that can be fulfilled by area businesses (with the right tools and support from Universities and civic organisations) 4. Fast emerging SME opportunities across a variety of industries need to connect resources

21 Southampton Solent Use: Next Steps Determine how analysis better informs curriculum development Develop business strategy for employer engagement with appropriate marketing and communications strategies Analyse likely improvement of graduation retention in Solent economy Conduct economic impact analysis

22 University Impact Study A growing need to change how universities talk about their value to various stakeholders. Dispelling common myths: Universities are not like any other business Universities are not a drain on public resources Universities provide more than just education

23 University Impact Study Most impact studies only capture university operations (e.g. what the university spends their money on), employment, student spending and visitor spending. What s Missing? 1. Human capital and productivity increases 2. Societal value of HE (e.g. reduced crime, lower welfare, reduced health-related costs, etc.) 3. Return on investment (public and student perspectives) These components change the narrative and dialogue amongst different groups and stakeholders

24 Visitor spending Student spending University operations 10 M 28 M 182 M A new narrative of regional productivity increases of the university Student productivity effect (past students) 715 MILLION (3.9 million CHEs embedded in workforce) Regional impact total is 934 million per year

25 Measuring societal benefits Quantifies and attaches social cost savings value to: 1. Lower unemployment 2. Reduced crime 3. Improved health habits Avoided costs = 10 million Reduction in smoking Reduction in obesity Reduction in mental disorders

26 Universities as an investment 1. Learners at South University receive a 12.8% annual return on their investment 2. For every 1 learners invest in South University (ie. tuition fees and foregone earnings) they receive a cumulative 6.60 in higher future wages over their working life 3. For every 1 taxpayer invests in South University, they see a return of 3.30 in benefits an 11.5% return: Expanded tax base of 29.6 million 3 million in societal savings 700 in avoided costs 5.1 million in added tax receipts annually

27 Southampton Solent LMI use to build a better narrative Use of two EMSI software products Career Coach and Analyst Analyst to provide analysis for faculties to better engage with region s employers and use for internal planning Career Coach to inform student decision-making about potential careers after HE

28 Widening participation, CEIAG and course marketing When expressed successfully, LMI can be used for a broader engagement with current and potential learners. Good Occupation LMI: 1. Describes earnings potential 2. Outlines future need 3. Assists career counselors with learner engagement 4. Connects learner career aspirations to courses

29 The Career Coach

30 Southampton Solent Career Coach Purpose: To provide end users with clear career development pathways illustrating how HE can help achieve career goals

31 Career Coach Software Travelled >4,000 miles 110 separate events 7,400 visits (~60% Year 12/13s) 97% of users would recommend Career Coach Professor Ebdon emphasised the fact that the coach allowed people in areas with little contact with universities to meet academic staff and students, discuss options and use the cutting edge Career Coach' software to explore course and career options. - Dr Steve Lake, Head of Student Recruitment

32 Southampton Solent use OFFA help in attainment of WP benchmarks Public Events/flag waving Southampton Boat Show, O2 Outreach /School Engagement Provision of career advice following demise of Connexions in region

33 Career Coach Software - feedback This has really helped me. Looking at Journalism helped me understand how to get there. Very good, brilliant information and really helped for my future. Opened my eyes to what I could do. Yes very useful information from the group discussion.

34 Other Solent Next Steps 1. Identify opportunities and strategies (e.g. business engagement, entrepreneurship, KTPs, course availability, course content) 2. Coordinate with other civic organisations to prioritise opportunities, strategies and tactics build common vision and dialogue Southampton Golden Jubilee Vision for 2020 Strategic Doing 3. Continuously monitor and adjust to reflect changing conditions

35 Concluding Thoughts Data has become more widely available than ever before Need to understand and leverage its uses to elevate the dialogue amongst each other, civic partners, learners and the public Need to address 21 st Century issues with 21 st Century approaches and solutions Supply-driven thinking is increasingly leading to misaligned skills in the workplace Increasing need to shift perspective from supplydriven to demand-driven strategies

36 Contact Details Andy Durman Tel: Web: Follow us on Twitter: twitter.com/emsi_uk Market Relevant Blogs: For Universities: