Name of the report of the tender here Version of the report here or date of the tender. West of England Business Skills Survey

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1 Name of the report of the tender here Version of the report here or date of the tender West of England Business Skills Survey A report for the West of England LEP July 2015

2 Wavehill Ltd. Wales office: 21 Alban Square, Aberaeron, Ceredigion, SA46 0DB (registered office) West England office: Unit 5.2, Paintworks, Arnos Vale, Bristol, BS4 3EH London office: Research House, 51 Portland Road, Kingston upon Thames, KT1 2SH Contact details: Tel: More information: Wavehill Ltd. This report is subject to copyright. The authors of the report (Wavehill Ltd.) should be acknowledged in any reference that is made to its contents.

3 Report authors: Yasmin Jennings Charlotte Ellis Oliver Allies Any questions in relation to this report should be directed in the first instance to Oliver Allies Date of document: 13 th July 2015 Version: DRAFT v1 Client contact: Marina Traversari Projects Manager West of England Local Enterprise Partnership Business West, Engine Shed, Station Approach, Bristol BS1 6QH T: E: Acknowledgements We would like to thank the employers and business leaders who have contributed to the findings presented in this research for the time given to complete the online survey and for their interest in supporting the West of England Local Enterprise Partnership's work.

4 List of abbreviations LEP UKCES Local Enterprise Partnership UK Commission for Employment and Skills

5 Contents Key findings... i 1 Introduction Methodology Respondent profile Report Structure Advanced engineering, Manufacturing & Aerospace Training plans and budgets Skills gaps and future skills needs Training Apprenticeships Vacancies and recruitment Working with schools and colleges Construction Training plans and budgets Skills gaps and future skills needs Training Apprenticeships Vacancies and recruitment Working with schools and colleges Creative & Digital Training plans and budgets Skills gaps and future skills needs Training Apprenticeships Vacancies and recruitment Working with schools and colleges Distribution & Logistics Training plans and budgets Skills gaps and future skills needs Training Apprenticeships Vacancies and recruitment... 32

6 5.6 Working with schools and colleges Health & Life Sciences Training plans and budgets Skills gaps and future skills needs Training Apprenticeships Vacancies and recruitment Working with schools and colleges High Tech Training plans and budgets Skills gaps and future skills needs Training Apprenticeships Vacancies and recruitment Working with schools and colleges Professional, Financial and Legal Services Training plans and budgets Skills gaps and future skills needs Training Apprenticeships Vacancies and recruitment Working with schools and colleges Retail Training plans and budgets Skills gaps and future skills needs Training Apprenticeships Vacancies and recruitment Working with schools and colleges Social Enterprise Training plans and budgets Skills gaps and future skills needs Training Apprenticeships Vacancies and recruitment... 68

7 10.6 Working with schools and colleges Education & Training Providers Training plans and budgets Skills gaps and future skills needs Training Apprenticeships Vacancies and recruitment Working with schools and colleges Appendix 1... Error! Bookmark not defined.

8 Key findings A total of 643 business based in the West of England responded to the Business Skills survey. Operating across 15 sectors with diverse needs and practices, their responses indicate some key trends in future skills requirements: While 50% of businesses have a training plan, as many as 56% reported that they have no training budget. Almost three-quarters (72%) carry out an annual appraisal process that considers the development of their staff, and the majority (88%) consider how their existing staff might fill skills gaps. Skills gaps are a barrier to growth for 43% of responding businesses, rising to 61% for organisations operating within Advanced Engineering, Manufacturing & Aerospace and falling to 28% for the Retail sector. Technical, practical or job specific skills are a priority for most sectors, with almost two-thirds (62%) overall citing this as a current need. Although there is wide sectoral variation in the reasons for arising skills needs, business growth is the most common reason overall (61%), followed by the introduction of new technologies or equipment (50%). Together with employees working in professional occupations (33%), Chief Executives and other senior officials (39%) are most likely to be affected by the need to acquire new skills or knowledge. This result reflects a high proportion of businesses operating with Professional, Financial and Legal Services and is again subject to variation across the different sectors that make up the sample. Almost two-thirds (65%) felt that Sector-Specific technical Training was more important to the growth of their business when compared with business skills training. Around 4 in 5 responding businesses (79%) said their staff had undergone some form of training in 2014, and the types of training that had been arranged for staff were predominantly job specific (80%) or related to health and safety (including first aid) (64%). Government funding has an impact on 37% of responding businesses. Pressures on staff time was the most commonly cited barrier to training the current workforce for 56% of businesses overall. More than two-thirds (69%) said they do not currently employ apprentices. Apprentices are a core part of growth strategies for just 14% of responding businesses. Looking to the future, 41% were planning to take on at least one apprentice, and around half of them were planning to do so within the next year. 39% said they had vacancies that were hard to fill and this was most commonly due to low numbers of applicants with the required skills (59%). The skills most lacking were again technical, practical or job specific (54%). Employers were using a wide range of measures to address recruitment difficulties. 45% said they were currently working with schools and colleges to support the development of employability in young people. This was predominantly in the form of work experience (72%). i

9 1 Introduction The annual West of England LEP Business Skills survey seeks to understand the skills gaps and future skills needs of business across the West of England. The findings are used to inform the LEP's Skills Strategy, shaping the city region's skills infrastructure and supporting businesses to access the right talent. Supporting the LEP's vision to develop a future workforce with the right skills, at the right levels to meet the needs of business now and in the future, the research is tasked with the following objectives: 1. provide a sector-by-sector analysis of key challenges and priorities for local employers; 2. inform activities and strategic direction of schools, colleges, universities and other training providers; 3. highlight weaknesses and failures in the skills system across the West of England; 4. provide the evidence base on which to develop further solutions to meet business needs; 5. provide a strong business voice in developing LEP skills priorities over the next 18 months. Results of the previous (2014) survey helped to inform the development of a detailed programme of actions with local FE colleges, including new locally-tailored careers information resources for schools. Findings have also been used to inform local and national skills strategies with government, funders, sector skills councils and other agencies. Data from the survey will be published within the 2015/16 Skills Plan. 1.1 Methodology The survey features a number of key questions important to local economic growth and draws on questionnaire tools utilised in national research into employer skills needs undertaken by the UK Commission for Employment and Skills (UKCES). The survey is undertaken online and responses are sought from all businesses based with one of the following four unitary authorities: Bath and North East Somerset Council; City of Bristol Council; North Somerset Council; and South Gloucestershire Council. The online survey is open for all to complete; there is no selection by sector. Business owners, chief executives, HR managers or other senior management staff are encouraged to provide responses, although any employee may complete the online survey on behalf of a business. 1

10 The 2015 survey was undertaken by WE LEP and achieved a total of 643 responses. 1 Wavehill were commissioned in July 2015 to undertake data analysis and to prepare a comprehensive report on the findings. 1.2 Respondent profile Each responding business was asked to specify the sector(s) they are operating within. As specified in the objectives of the survey, sector-by-sector analysis of challenges and priorities is key to informing the activities of the LEP. This data was therefore cross-checked with organisation names, information contained on business websites, and any other information provided about the functions of the business, and organisations were reallocated to the most appropriate category where necessary. After thorough data checking and cleaning, 14 respondents remained in the other category, and these have been collectively analysed as health, social care and personal support services. The final counts for each sector are shown in Figure 1.1. Organisations providing Professional, Financial and Legal Services formed the largest group of respondents (19%; n=125), closely followed by Creative & Digital agencies (18%; n=113). Figure 1.1: Respondent profile by sector Sector n Professional, Financial and Legal Services 125 Creative & Digital 113 Advanced engineering, Manufacturing & Aerospace 77 Retail 72 Construction 60 Education/Training Provider 50 Social Enterprise 48 High Tech 44 Distribution & Logistics 23 Health & Life Sciences 20 Health, social care and support services 14 Low Carbon Technologies 14 Rural Economy 12 Local Government/Public Sector 11 Visitor Economy 10 Base: All respondents (n=643) 1 Two organisations had each completed the survey twice and so these duplicate responses were removed. 2

11 As shown in Figure 1.2 below, the majority (84%) of responding businesses currently have less than 49 employees and almost half (49%; n=312) employ fewer than 10 people. The average number of employees in each age category is presented in Figure 1.3 below. 2 Figure 1.2: Respondent profile by business size Base: All respondents (n=643) Figure 1.3: Average (median) number of staff by age group Base: All respondents (n=643) The average (median) numbers of staff working at the different occupational levels is presented in Figure These values should be interpreted with caution due to a high proportion of missing data. 2 Median values are presented since these are least susceptible to distribution skew. 3

12 Figure 1.4: Average (median) number of staff by occupational category West of England Skills Survey 1.3 Report Structure The remainder of this report presents the findings from the survey, discussing each sector in turn. Each chapter follows is similarly structured with content falling under the following broad themes as covered in the survey: 1. Training plans and budgets 2. Skills gaps and future skills needs 3. Training 4. Apprenticeships 5. Vacancies and recruitment 6. Working with schools and colleges Individual chapters have been produced for sectors with 20 or more respondents. Selected charts are used throughout the report to illustrate key points and highlight comparisons with the overall results, also referred to as the average throughout this report. Base sizes vary throughout each section due to non-response. For reference, full data tables are included in Appendix I. These contain responses for all questions in the survey, broken down by sector. 3 As above. In this case, there are a small number of respondents from large businesses reporting values across all categories that are very high in comparison, and these will greatly affect mean averages. 4

13 2 Advanced engineering, Manufacturing & Aerospace There were 77 respondents from Advanced Engineering, Manufacturing & Aerospace, making this the third largest group in the sample (12% of all responding businesses). Businesses in this sector were larger than average when compared with the result for all businesses combined (Figure 2.1). Figure 2.1: Sector profile by business size Base: All respondents (n=77) 2.1 Training plans and budgets The proportion of businesses in Advanced Engineering, Manufacturing & Aerospace who said they had a training plan (53%) was similar to the average (50%). The results indicate that training budgets across this sector are larger than average; 22% said they had a budget of 15,000 or more compared with 10% of all responding businesses (Figure 2.2) However, as many as 46% (n=31) said they had no training budget, compared with 56% overall. Figure 2.2: Which of the following reflects your allocated annual training budget? 5

14 Base: All respondents (n=68) More than two-thirds (69%; n=74) of respondents said they carry out an annual appraisal process that considers the workforce development of their staff, a result that is well aligned with the average of 72%. The vast majority (98%; n=73) of respondents said their business considers how existing staff might be able to fill their skills gaps, either with training and development (41%) or without (57%). 2.2 Skills gaps and future skills needs Respondents in this sector were more likely than average to report that skills are a barrier to business growth (61% compared to 43%). As shown in Figure 2.3, the highest scoring short and medium term skills priorities within this sector are technical, practical or job specific skills, leadership and management skills and business and customer awareness. Advanced IT or software skills emerged as an additional priority for the next 3 5 years, though not as an immediate concern. Figure 2.3 Thinking about the skills required in your business please indicate your five priorities 6

15 Base: All respondents (n=62) Respondents who reported a need for technical, practical or job specific skills were asked to list skills needs specific to their sector. As demonstrated in Table 2.1 below, specific capabilities are required in relation to engineering, inspection, and design software. There is also demand for more generic skills such as project management, sales and marketing, and supply chain management. Table 2.1 Thinking about the technical skills specific to your sector, please list up to five needs Skill area (coded) Engineering / Engineering Management Now 3-5 years Skill area (coded) Contracts / tendering /procurement Now 3-5 years 2 2 CNC 8 6 Human Factors 1 - Project management 7 4 Lean manufacture 1 2 Inspection & quality assurance 5 2 Manufacturing Cell 1 - Leadership Sales & marketing 5 1 Physics 1-7

16 CAD / CAM & other design 4 1 Production Skills 1 - Health and safety 3 1 Workshop management 1 - Supply chain management 2 2 Additive Manufacturing - 1 Manual Machine Skills 2 1 Technological awareness - 2 The reasons for arising skills needs within this sector were varied (Figure 2.4). The leading reasons were business growth (61%), the introduction of new technologies or equipment (60%), and the development of new products and services (50%). This sector was also more likely than average to report succession replacement (40% compared with 18% overall). Figure 2.4 What are the most likely reasons for your future skills needs? Base: All respondents (n=62) One respondent gave a reason for future skills needs other than those listed in above Figure 2.4, reflecting their perception of a generic skills shortage: Simple lack of trained and skilled people coming through the education system and a skills shortage now that will affect us in the future heavily. The professional groups most likely to be affected by the need to acquire new skills were Technical and Associate Professional Occupations (45% compared with 23% overall) and Process, plant and machine (44% compared with 13% overall). 2.3 Training Three-quarters (75%) of respondents from advanced engineering, manufacturing and aerospace felt that sector-specific technical training was more important than business skills training, reflecting the types of skills needed in the sector. Accordingly, staff in this sector were more likely to receive training in new technology when compared with the average; 54% of businesses had arranged this for their staff compared with 39% overall. The level of 8

17 health and safety training (80% compared with 64% overall) is likely to reflect the use of technology and machinery. On the whole, the proportion of businesses in this sector whose staff had received training in 2014 were well aligned with the average, in terms of proportions who had received any form of training (80% compared with 79%) and training days delivered by external companies (67% compared with 64%). When asked to rate their satisfaction with a range of training providers, levels of satisfaction were similar to the overall findings, with FE colleges scoring lowest (Figure 2.5). Figure 2.5 Overall, how satisfied are you with the quality of the training provided by? % Very satisfied / Satisfied Base: All respondents excluding Not applicable and no replies (n for this sector=as shown) Availability of government funding was a factor in the choice of trainer for 38% of businesses in this sector, similar to the overall proportion of 37%. Forty eight organisations went on to detail other barriers to providing training for their workforce (Figure 2.6). The leading issue was the pressure on staff time (52%). Interestingly, businesses from this sector were equally likely to report a lack of funds for training when compared with the average (both at 35%), although they were less likely to report that training is too expensive (17% compared with 34% overall). A lack of appropriate training or qualifications in the required subject areas appear to be a particular barrier in these industries; 31% of organisations cited this as a barrier compared with 16% overall. Figure 2.6 What barriers, if any, have prevented your business providing training to current staff? 9

18 Base: All respondents (n=48) 2.4 Apprenticeships When asked about the status of apprenticeships within their business, 49% of organisations operating in the Advanced engineering, Manufacturing & Aerospace industries said they did not currently employ apprentices, which compares favourably with 69% of all business who completed the survey. Apprentices were a core part of the growth strategy for 33% of businesses, while more than one in five businesses reported that apprentices were essential to future success, that they wanted to bring a fresh approach into the business, or that they had experienced success with employing apprentices in the past (Figure 2.7). Almost threequarters (73%) were planning to take on at least one apprentice whether in the next year (29%) or in the next 2 3 years (44%), which again compares favourably with the average (41%, or 21% and 20% respectively). Figure 2.7 Please describe the current status of apprenticeships within your business 10

19 Base: All respondents (n=63) When asked what support they would need in order to take on an apprentice, just six respondents offered a response, referencing a range of issues including government funding, relevant training and issues with retention: Would like to take on more but they do move on quite quickly afterwards. Because the company is so bespoke in what they do there has been an issue with finding college courses that match the experience an apprenticeship at the company would provide. It is a possibility but lack of funding from the government may prevent it. 2.5 Vacancies and recruitment Of the businesses who said they had hard to fill vacancies (52%; n=34), around two-thirds (68%) said this was due to low numbers of applicants with the required skills (Figure 2.8). By comparison, businesses within Advanced engineering, Manufacturing & Aerospace were more likely than average to report a lack of necessary qualifications as specified by the 11

20 company (29% compared with 12% overall) or that there was too much competition from elsewhere (26% compared with 12% overall). In terms of the skills that were lacking amongst applicants, the greatest shortages were seen in technical, practical and job specific skills (75% compared with 54% overall). When asked what they were doing to overcome difficulties with recruitment, around one-third (33%) said they were prepared to offer training to less qualified recruits (Figure 2.9). Businesses in this sector were also more likely to say they were recruiting non-uk nationals (33% compared with 19% overall). One-quarter (25%) of respondents said it was to address skills and recruitment needs now than it was 2 years ago. Figure 2.8 What were the main reasons your vacancies in 2014 were hard to fill? Base: Respondents who had vacancies that were hard to fill (n=34) Figure 2.9 What are you doing to overcome any difficulties in recruitment? 12

21 Base: All respondents (n=51) 2.6 Working with schools and colleges Fifty-five per cent (36 businesses) operating within Advanced engineering, Manufacturing & Aerospace said they were currently working with schools and colleges to support the development of employability in young people, which is aligned with the average of 45%. The most prominent activities undertaken with schools and colleges are presented in Figure 2.10 below. While the majority (81%) were offering work experience, 44% were also offering apprenticeships or traineeships, and around one-quarter (25%) were giving careers talks or advice. Figure 2.10 From the list below, please indicate the types of activities in which you are involved Base: All respondents who said they were working with schools and colleges (n=36) 13

22 3 Construction Nine per cent of all responding businesses were operating within the Construction sector (n=60). The size profile of this sector is similar to the average, with over half (52%) of businesses employing less than 10 people (Figure 3.1). Figure 3.1: Sector profile by business size Base: All respondents (n=60) 3.1 Training plans and budgets While the proportion of businesses who said they had a training plan (52%) is in line with the average (50%), it is interesting to note that as many as 64% of businesses in the Construction sector state they have no allocated annual training budget (Figure 3.2). Figure 3.2: Which of the following reflects your allocated annual training budget? Base: All respondents (n=55) Sixty per cent of Construction businesses said they carry out an annual appraisal process that considers the workforce development of their staff; this is a lower proportion than the average of 72%. The majority (85%; n=50) of Construction businesses said they considered how existing staff might be able to fill their skills gaps, either with training and development (39%) or without (46%). 14

23 3.2 Skills gaps and future skills needs A slightly higher proportion of businesses in the Construction sector reported that skills were a barrier to business growth (48% compared to 43% overall). The most frequently cited short and medium term skills priorities within the sector are technical, practical or jobspecific skills (73%) although more than half (53%) also report a need for team working skills as an immediate priority (Figure 3.3). Figure 3.3 Thinking about the skills required in your business please indicate your five priorities Base: All respondents (n=59) Respondents who reported a need for technical, practical or job specific skills were asked to list skills needs specific to their sector. These are presented in Table 3.1 below. 15

24 Table 3.1 Thinking about the technical skills specific to your sector, now and in 3 to 5 years Skill area (coded) Now 3-5 years Engineering 4 2 Design (inc. CAD/CAM) 3 4 Health and Safety 3 - Project management 3 2 Surveying 2 2 BIM - 2 Ecology - 2 Technical information 1 2 Base: All respondents (n=16) As with the West of England as a whole, the reasons for skills needs within the Construction sector were varied (Figure 3.4). There were however two main differences between the Construction businesses and the averages, with a higher proportion of businesses in Construction citing the introduction of new working practices (50% compared to 36%) and succession replacement (26% compared to 18%). Figure 3.4 What are the most likely reasons for your future skills needs? Base: All respondents (n=62) Perhaps unsurprisingly for this sector, businesses from the Construction industry reported that the need to acquire new skills or knowledge would most likely affect the skilled trades (Figure 3.5). 16

25 Figure 3.5 What are the most likely reasons for your future skills needs? West of England Skills Survey Base: All respondents (n=52) 3.3 Training More than three quarters (78%) of respondents from Construction felt that sector-specific technical training was more important than business skills training, reflecting the types of skills needed in the sector. A higher than average proportion of businesses in the Construction sector reported that they had arranged training in health and safety / first aid training for staff (80% compared to 64% overall) during On the whole, the proportion of businesses in this sector whose staff had received some form of training in 2014 was closely aligned with the average (82% compared with 79%). A slightly higher than average proportion of Construction businesses reported that their staff had been on training days delivered by external companies (73% compared with 64%). When asked to rate their satisfaction with a range of training providers, satisfaction was high amongst the Construction businesses, with the exception of training provided by Universities which received a lower than average satisfaction score. Availability of government funding was a factor in the choice of trainer for 37% of businesses in this sector, similar to the overall proportion of 37%. Forty two organisations went on to detail other barriers to providing training for their workforce. The leading issue was pressure on staff time, with more than two-thirds (67%) citing this issue. Interestingly, Construction businesses were less likely to report a lack of funds for training when compared with the average (36% and 45% respectively). 17

26 Figure 3.6 Overall, how satisfied are you with the quality of the training provided by? % Very satisfied / Satisfied Base: All respondents excluding Not applicable and no replies (n for this sector=as shown) 3.4 Apprenticeships When asked about the status of apprenticeships within their business, 64% of organisations operating within Construction said they did not currently employ apprentices, compared with 69% of all business who completed the survey (Figure 3.7). Although respondents in this sector were more likely than average to report that they had employed apprentices with success in the past (24% compared with 14% overall), they were no more likely than average to say that they were planning to take on an apprentice (37% compared with 41% overall). These businesses were however slightly more likely than average to report that they were keen to bring a fresh approach to the business (19% compared with 11%). Nine respondents went on to detail the kind of support they would need in order to take on an apprentice. The issues cited included financial support, insufficient workload, and the need for support from professional apprenticeship organisations such as CIOB and RICS, in addition to more general concerns about the practicalities of working with apprentices: They are very expensive in practical terms for very small companies to support even though we like the idea. We can t impose the cost of the extra time on our customers and by their nature they are slower or slow down the senior engineer it s difficult until we reach a larger base of senior engineers. Support from professional institutions such as the CIOB & RICS to provide a route way into construction. Need 'professional' apprenticeships. 18

27 Figure 3.7 Please describe the current status of apprenticeships within your business Base: All respondents (n=58) 3.5 Vacancies and recruitment Forty three per cent of businesses in the Construction sector said they had hard to fill vacancies. Around two-thirds (64%) said this was due to low numbers of applicants with the required skills, a proportion that is comparable with the average of 68% (Figure 3.8). The proportions reporting that there was too much competition from elsewhere or that there were not enough people interested in doing this kind of job were much smaller by comparison (20%), though these issues are more prominent amongst Construction businesses when compared with the average (12%). In terms of the skills that were lacking amongst applicants, businesses in this sector were more likely than average to report shortages of technical, practical and job specific skills (68% compared with 54% overall). When asked what they were doing to overcome difficulties with recruitment, businesses in the Construction industry were more likely than average to say they would bring in contractors or contact out work (31% compared with 18% overall). 19

28 Figure 3.8 What were the main reasons your vacancies in 2014 were hard to fill? Base: Respondents who had vacancies that were hard to fill (n=25). Selected categories are shown due to small numbers of respondents. 3.6 Working with schools and colleges Forty eight per cent (58 businesses) operating within the Construction industry said they were currently working with schools and colleges to support the development of employability in young people, a proportion that is similar to the average of 45%. The most prominent activities undertaken with schools and colleges are presented in Figure 3.9 below. While the majority (72%) were offering work experience, 32% were also offering apprenticeships or traineeships, and more than one-quarter (28%) were giving careers talks or advice. Figure 3.9 From the list below, please indicate the types of activities in which you are involved Base: All respondents (n=33) 20

29 4 Creative & Digital There were 113 respondents from the Creative & Digital sector, making this the second largest group in the survey (18% of all responding businesses). Businesses in this sector are general smaller by comparison, with a larger proportion of micro businesses (1 9 employees) (Figure 4.1) Figure 4.1: Sector profile by business size Base: All respondents (n=113) 4.1 Training plans and budgets Businesses in the Creative & Digital sector were less likely to say they had a business training plan compared to the average (42% compared to 50%), although training budgets for this sector were well aligned with those across the West of England as a whole (Figure 4.2). Seventy one per cent (n=80) of respondents said they carry out an annual appraisal process that considers the workforce development of their staff, this is in line with the average of 72%. The vast majority (84%; n=94) of respondents said their business considers how existing staff might be able to fill their skills gaps, either with training and development (41%) or without (43%). Figure 4.2: Which of the following reflects your allocated annual training budget? 21

30 Base: All respondents (n=96) 4.2 Skills gaps and future skills needs Just over half (51%) of businesses operating within the Creative & Digital sector reported that skills are a barrier to business growth, compared to 43% overall. As shown in Figure 4.3, the highest scoring short and medium term skills priorities within this sector are technical, practical or job specific skills, followed by advanced IT or software skills and oral communication skills. Leadership and management also emerged as a clear priority for the next 3 5 years. Figure 4.3 Thinking about the skills required in your business please indicate your five priorities 22

31 Base: All respondents (n=73) Respondents who reported a need for technical, practical or job specific skills were asked to list skills needs specific to their sector. These are presented in Table 4.1 below. Table 4.1 Thinking about the technical skills specific to your sector, what are your needs now and in three to five years? Skill area (coded) Now 3 to 5 years Technical skills 7 2 Sales 3 4 Design 3 2 Manager Skills 3 7 Business/development 2 4 Customer Service

32 Digital 2 1 IT skills 2 4 Keep up to date with equipment/software 2 2 Marketing 2 5 Story boarding 2 0 Web development 2 2 As shown in Figure 2.4, the leading reasons for arising skills needs within the sector were business growth (66%), the introduction of new technologies or equipment (60%), and the development of new products and services (35%). This sector was less likely than average to be affected by legislative and regulatory requirements. Figure 4.4 What are the most likely reasons for your future skills needs? Base: All respondents (n=95) Two respondents gave a reason for future skills needs other than those listed in Figure 4.4 above, reflecting that shortages may arise from the progression of staff within the business and well as from business growth: Having grown rapidly in last five years we have gaps in our exiting skillset. Progression in company of staff The professional groups that were most likely to be affected by the need to acquire new skills were the professional occupations (48% compared to 33% overall) and chief executives and senior officials (45% compared to 39% overall). 4.3 Training 24

33 Sixty three per cent of respondents from the Creative & Digital sector said that sectorspecific technical training was more important than business skills training, reflecting the type of skills needed in the sector; this is in line with the proportion for the West of England overall (65%). A higher proportion of businesses in the Creative & Digital sector had arranged training in new technology (53% compared to the 39% overall) for their staff. Businesses in the Creative & Digital sector were less likely than average to say their staff had received any form of training in 2014 (63% compared with 80% overall); the same can be said for training days delivered by external companies (46% compared with 64%). When asked to rate their satisfaction with a range of training providers, level of satisfaction was generally low by comparison with the exception of commercial training companies (Figure 4.5), which is perhaps unsurprising given the types of training required within this sector. Availability of government funding was a factor in the choice of trainer for 40% of businesses in this sector, similar to the overall proportion of 37%. Eighty five organisations went on to detail other barriers to providing training for their workforce. The leading issue was the pressure on staff time (48% compared with 56% overall). Figure 4.5 Overall, how satisfied are you with the quality of the training provided by? % Very satisfied / Satisfied Base: All respondents less Not applicable and no replies (n for this sector=as shown) 4.4 Apprenticeships When asked about the status of apprenticeships within their business, three quarters (75%) of organisations operating within the Creative & Digital sector said they did not currently employ apprentices, a proportion that is relatively high compared to 69% of all business who completed the survey. Apprentices were a core part of the growth strategy for just 6% businesses, and a similar proportion (6%) of businesses reported that apprentices were essential to future success (Figure 4.6). Just over one in five (21%) of businesses in the Creative & Digital sectors were planning to take on at least one apprentice whether in the 25

34 next year or in the next 2 3 years (17%), in line with the averages of 21% and 20% respectively. Figure 4.6 Please describe the current status of apprenticeships within your business Base: All respondents (n=63) When asked what support they would need in order to take on an apprentice a range of issues were cited including practical concerns, the availability of specialised training, and a lack of suitable applicants as demonstrated by the following comments; We attempted to take on an apprentice before but it was a nightmare and there was a lack of good applicants Would possibly take on apprentices but feel due to the lack of specialised, local training, it would be too difficult to get them qualified. Very high quality, industry relevant, responsive training provision in our area which gives us the flexibility we need as a small business. 4.5 Vacancies and recruitment Of the businesses who said they had hard to fill vacancies (n=36), around two-thirds (67%) said this was due to low numbers of applicants with the required skills (Figure 4.7). A quarter of businesses within the Creative & Digital sector said they struggled with low numbers of applicants (25% compared with 19% overall) and 22% cited a lack of qualifications that the company demands (compared to 12% overall). Figure 4.7 What were the main reasons your vacancies in 2014 were hard to fill? 26

35 Base: Respondents who had vacancies that were hard to fill (n=36) In terms of the skills that were lacking amongst applicants, organisations in this sector were more likely than average to report shortages in planning and organisation skills (26% compared to 10%), self-management/resilience (23% compared with 12%) and business and customer awareness (28% compared to 17% overall). When asked what they were doing to overcome difficulties with recruitment, 43% said they were prepared to consider increasing salaries, increasing spend on advertising and recruitment (19%) and offering training to less qualified recruits (Figure 4.8). 27

36 Figure 4.8 What are you doing to overcome any difficulties in recruitment? Base: All respondents (n=51) 4.6 Working with schools and colleges Sixty six per cent (67 businesses) operating within the Creative & Digital sector said they were currently working with schools and colleges to support the development of employability in young people, which is aligned with the average of 59%. The most prominent activities undertaken with schools and colleges are presented in Figure 4.9 below. While the majority (79%) were offering work experience, 30% were also giving practical advice, and more than one-quarter (27%) were offering mentoring. Figure 4.10 From the list below, please indicate the types of activities in which you are involved Base: All respondents (n=67) 28

37 5 Distribution & Logistics There were 23 respondents from Distribution & Logistics, comprising 4% of all responding businesses. This sector had fewer micro organisations (employing 1 9 people) and more small businesses (10 49 employees) when compared with the result for all businesses combined (Figure 5.1). Figure 5.1: Sector profile by business size Base: All respondents (n=23) 5.1 Training plans and budgets The proportion of businesses in Distribution & Logistics who said they had a training plan (48%) was similar to the average (50%). The results indicate that training budgets across this sector are similar to the average, as is the proportion with no training budget (48%; n=10, compared with 56% overall). More than three-quarters (78%) said they carry out an annual appraisal process that considers the workforce development of your staff, which is again in line with the average of 72%. All respondents said their business considers how existing staff might be able to fill skills gaps, which compares favourably with the overall result for all respondents (Figure 5.2). Figure 5.2: Does your business consider how existing staff might be able to fill your skills gaps? Base: All respondents (n=22) 29

38 5.2 Skills gaps and future skills needs More than one-third (39%; n=9) of respondents in this sector reported that skills are a barrier to business growth, which is aligned with the average of 43%. As shown in Figure 5.3, the highest scoring short and medium term skills priorities within this sector are technical, practical or job specific skills, currently affecting almost two-thirds (12/19) of businesses. This was followed by basic computer literacy, team working, and business and customer awareness. Figure 5.3 Thinking about the skills required in your business please indicate your five priorities Base: All respondents (n=19) Only categories with five or more respondents are shown due to the small number of respondents from this sector. The main reasons for future skills needs were business growth (15/20), new legislative or regulatory requirements (12/20), and the introduction of new working practices (11/20). Some of these proportions are relatively high when compared with the averages (Figure 5.4), which might imply a particular need for this sector to adapt to changing practices and markets. Almost half (10/21) of respondents said process, plant or machine staff were most likely to be affected by the need to acquire new skills, compared with 13% overall. A similar proportion (11/21) said staff in the Chief Executive occupational group would be affected, compared with 39% overall. 30

39 Figure 5.4 What are the most likely reasons for your future skills needs? Base: All respondents (n=20) 5.3 Training Seventy per cent (14/20) of respondents from Distribution & Logistics felt that sectorspecific technical training was more important than business skills training, which is similar to the overall proportion of 65%. The majority (18/19) had arranged job specific training for their employees (compared with 80% overall), while three-quarters (14/19) had arranged health and safety training (compared with 64% overall). Overall, the proportion of businesses in this sector whose staff had received training in 2014 was greater than the average (Figure 5.5), both in terms of proportions who had received any form of training (90% compared with 79%) and in terms of training days delivered by external companies (75% compared with 64%). Sixteen organisations went on to detail the barriers preventing them from training their current workforce. The leading issues were the pressure on staff time (13/16) followed by a lack of funds for training (7/16). 31

40 Figure 5.5 Proportion of businesses whose workforce have received training in 2012 (% Yes ) ase: All respondents (n=20) B 5.4 Apprenticeships When asked about the status of apprenticeships within their business, around two-thirds (13/21) of organisations operating in Distribution & Logistics said they did not currently employ apprentices, compared with 69% of all businesses who completed the survey. Around one-quarter (5/21) said apprentices are essential to the future success of their business, or that they had experienced success with employing apprentices in the past, which compares favourably with the overall proportions of 9% and 14% respectively. Just over one-third (7/20) were planning to take on at least one apprentice within the next 1 3 years. When asked what support they would need to take on apprentices, three respondents provided comments: Have considered it in the past but because they are so specific this has proved challenging. More funding especially for older apprentices. No current plans but would happily do it again. 5.5 Vacancies and recruitment Less than 10 respondents from the Distribution & Logistics sector provided information on vacancies and recruitment, therefore this data is presented in table format only, in Appendix Working with schools and colleges Less than 10 respondents from the Distribution & Logistics sector provided information on their work with schools and colleges, therefore this data is presented in table format only, in Appendix 1. 32

41 6 Health & Life Sciences There were 20 respondents from the Health & Life Sciences, comprising 3% of all responding businesses. More than half (11/20) of these organisations employ less than ten people, although this sector also has a greater that average proportion of organisations with upwards of 250 employees (Figure 6.1). Figure 6.1: Sector profile by business size Base: All respondents (n=20) 6.1 Training plans and budgets The proportion of businesses in the Health & Life Sciences who said they had a training plan (11/20) was similar to the average (50%). The results suggest that training budgets across this sector may be smaller than the average; around one-third (7/20) said they had budgets of up to 1,000 compared with 14% overall. Around eighty per cent (16/20) said they carry out an annual appraisal process that considers the workforce development of their staff, which is again in line with the average of 72%. All but three of the respondents said their business considers how existing staff might be able to fill skills gaps. 6.2 Skills gaps and future skills needs Half (10/20) of respondents reported that skills are a barrier to business growth, compared with 43% overall. As shown in Figure 6.2, basic computer literacy (11/16), technical, practical or job specific skills (10/16) and team working skills (10/16) are amongst the leading skills priorities for the Health & Life Sciences sector. 33

42 Figure 6.2 Thinking about the skills required in your business please indicate your five priorities (categories with 5 more respondents) Base: All respondents (n=16) Only categories with five or more respondents are shown due to the small number of respondents from this sector. Respondents who reported a need for technical, practical or job specific skills were asked to list skills needs specific to their sector. Four businesses gave a response, referencing the following skills: Science Data GIS Ecological Survey methods UK wildlife law and planning system Word-processing and Excel skills Knowledge of UK flora and habitats Experience of overseas ecologies Sage accounting Product design Faunal survey skills to licensable level The main reasons for future skills needs in this sector were the introduction of new technologies or equipment (11/16) and business growth (10/16), followed by new legislative or regulatory requirement (9/16) and the introduction of new working practices. 34

43 6.3 Training All but two (14/16) respondents from the Health & Life Sciences sector felt that sectorspecific technical training was more important than business skills training. The majority (12/15) had arranged job specific training for their employees, in line with 80% of employers across the West of England overall. The proportion of businesses in this sector whose staff had received some form of training in 2014 was also aligned with the average (81%; 13/16 compared with 79%). Eleven organisations went on to detail the barriers preventing them from training their current workforce. The leading issues were the pressure on staff time (7/11), lack of funds for training (6/11), and the expense of training (6/11). 6.4 Apprenticeships The majority (16/17) of business in this sector said they do not currently employ apprentices. Looking to the future, around two-thirds (11/17) said they had no plans to take on apprentices. While scope for comparisons is limited by the small sample size for this sector, these findings would suggest that businesses operating within Health & Life Sciences are less likely than average to work with apprentices. When asked what support they would need to take on an apprentice, the two responses give both referenced the cost of apprentices: Financial [support] as it is a commitment. Government funding of minimum wage plus an additional significant inducement to cover cost of managerial time to train them. Very unlikely to take on inexperienced staff as we offer expert consultancy. 6.5 Vacancies and recruitment Less than 10 respondents from the Health & Life Sciences sector provided information on vacancies and recruitment, therefore this data is presented in table format only, in Appendix Working with schools and colleges Less than 10 respondents from the Health & Life Sciences sector provided information on their work with schools and colleges, therefore this data is presented in table format only, in Appendix 1. 35

44 7 High Tech There were 44 respondents from the High Tech sector, comprising 7% of all responding businesses. Businesses in this sector were smaller than average when compared with the result for all businesses combined (Figure 7.1). Figure 7.1: Sector profile by business size Base: All respondents (n=44) 7.1 Training plans and budgets The proportion of businesses in the High Tech sector who said they had a training plan (30%) was much lower than the average (50%). In addition, as many as 81% (n=35) businesses in this sector said they had no training budget, compared with 56% overall (Figure 7.2). Figure 7.2: Which of the following reflects your allocated annual training budget? Base: All respondents (n=43) 36

45 Sixty one per cent (n=74) of respondents said they carry out an annual appraisal process that considers the workforce development of their staff, a proportion that is below the average of 72%. Businesses from this sector were less likely than average to say their business considers how existing staff might be able to fill their skills gaps (77% compared with 88%). 7.2 Skills gaps and future skills needs Respondents in this sector were less likely than average to report that skills are a barrier to business growth (34% compared to 43% overall). As shown in Figure 7.3, the leading short term skills priorities within this sector are advanced IT or software skills (86%), business and customer awareness (77%) and technical, practical or job specific skills (74%). Advanced IT or software skills are also a leading medium term priority for businesses in High Tech. Figure 7.3 Thinking about the skills required in your business please indicate your five priorities 37

46 ase: All respondents (n=43) B Respondents who reported a need for technical, practical or job specific skills were asked to list skills needs specific to their sector. These are presented in Table 7.1 below. Table 7.1 Thinking about the technical skills specific to your sector, please list up to five needs Skill area (coded) Now 3 to 5 years Advanced IT skills (including programming and software) 6 9 Graphics and Design 3 1 Communication 2 - Networking 2 1 Animation

47 Sales and marketing - 3 As with the overall findings, the reasons for arising skills needs within the sector were varied (Figure 7.4); the leading reasons were the introduction of new technologies or equipment (74%), business growth (67%), and the development of new products and services (50%). Only 2% of respondents in this sector reported succession replacement as a future skills need (2% compared with 18% overall). Figure 7.4 What are the most likely reasons for your future skills needs? Base: All respondents (n=42) Within the High Tech sector, staff in professional occupations were more likely than average to be affected by the need to acquire new skills and knowledge (47% compared with 33% overall). 7.3 Training Over three-quarters (77%) of respondents from the High Tech sector felt that sector-specific technical training was more important than business skills training, a proportion that is relatively high by comparison to the average of 65%. Accordingly, staff in this sector were more likely to receive training in new technology; 67% of businesses had arranged this type of training for their staff compared with 39% overall. The proportion of businesses in this sector whose staff had received training in 2014 was below the average (66% compared with 79%). This was the same for training days delivered by external companies (48% compared with 64%). 39

48 Availability of government funding was a factor in the choice of trainer for 34% of businesses in this sector, similar to the overall proportion of 37%. Thirty one organisations went on to detail other barriers to providing training for their workforce. Businesses within this sector were more likely than average to report that their staff are now fully proficient or don t need the training (35% compared with 15% overall) and that it is hard to find the time to organise training (32% compared with 18%). They were less likely to report a lack of funds for training (23% compared with 35% overall). Figure 7.5 What barriers, if any, have prevented your business providing training to current staff? Base: All respondents (n=31) 7.4 Apprenticeships Over three quarters (76%) of businesses operating in the Creative & Digital sector said they did not currently employ apprentices, compared to 69% of all business who completed the survey (Figure 7.7). Accordingly, the proportions of businesses who said apprentices were a core part of the growth strategy (11%), or essential to future success (7%) were low, though these were in line with the averages. Looking to the future, more than one-third (34%) of responding businesses were planning to take on at least one apprentice, whether in the next year (20%) or in the next 2 3 years (14%). Figure 7.7 Please describe the current status of apprenticeships within your business 40

49 Base: All respondents (n=45) 7.5 Vacancies and recruitment Of the businesses who said they had hard to fill vacancies (36% n=16), three quarters (75%) said this was due to low numbers of applicants with the required skills and 40% said they had a low number of applicants with the required attitude, motivation or personality (Figure 7.8) In terms of the skills that were lacking amongst applicants, the greatest shortages were seen in technical, practical and job specific skills (65% compared with 54% overall). When asked what they were doing to overcome difficulties with recruitment (Figure 7.9), business in this sector were more likely than average to report that they were doing nothing (70% compared with 35%). 41

50 Figure 7.8 What were the main reasons your vacancies in 2014 were hard to fill? Base: Respondents who had vacancies that were hard to fill (n=20) Figure 7.9 What are you doing to overcome any difficulties in recruitment? Base: All respondents (n=40) 42

51 7.6 Working with schools and colleges Forty three per cent (n=19) of businesses operating within the High Tech sector said they were currently working with schools and colleges to support the development of employability in young people. The most prominent activities undertaken with schools and colleges are presented in Figure 7.10 below. While the majority (79%) were offering work experience, smaller proportions were giving careers talks (32%) or providing practical advice (21%). These businesses were also more likely than average to say they were providing industry projects (21% compared with 13% overall). Figure 2.10 From the list below, please indicate the types of activities in which you are involved Base: All respondents (n=19) 43

52 8 Professional, Financial and Legal Services There were 125 respondents from the Professional, Financial and Legal Services, making this the largest group in the sample (19% of all responding businesses). Businesses in this sector were about average when compared with the result for all businesses combined (Figure 8.1). Figure 8.1: Sector profile by business size Base: All respondents (n=125) 8.1 Training plans and budgets The proportion of businesses in Professional, Financial and Legal Services who said they had a training plan was slightly higher than average (55% compared with 50% overall). The results indicate that training budgets across this sector are larger than the average; 15% said they had a budget of 15,000 or more compared with 10% of all responding businesses (Figure 8.2). However, 50% (n=59) said they had no training budget, compared with 56% overall. Figure 8.2: Which of the following reflects your allocated annual training budget? Base: All respondents (n=119) 44

53 Seventy nine per cent (n=99) of respondents said they carry out an annual appraisal process that considers the workforce development of their staff, slightly higher than the average of 72%. The vast majority (90%; n=111) of respondents said their business considers how existing staff might be able to fill their skills gaps, either with training and development (39%) or without (51%). 8.2 Skills gaps and future skills needs Forty two per cent of respondents in this sector stated that skills were a barrier to business growth, in line with the average overall (43%). As shown in Figure 8.3, the highest scoring short and medium term skills priorities within this sector are technical, practical or job specific skills (63%), oral communication skills (60%) and business and customer awareness (60%) Figure 8.3 Thinking about the skills required in your business please indicate your five priorities Base: All respondents (n=112) 45

54 Respondents who reported a need for technical, practical or job specific skills were asked to list skills needs specific to their sector. The most frequently cited responses are presented in Table 8.1 below. Table 8.1 Thinking about the technical skills specific to your sector, please list up to five needs; Skill area (coded) Now 3 to 5 years Advanced IT skills 8 4 Basic IT skills 8 2 Business and customer awareness 5 4 Marketing 5 2 Communication 4 3 Leadership 4 3 Literacy 4 3 Project management 4 2 Property and building courses and training 4 2 Accounting 3 4 Management 3 2 Strategic management 3 3 Technical training 2 4 New Technology 1 3 Recruitment skills 1 3 Reflecting overall trends, the reasons for arising skills needs within the sector were varied (Figure 8.4). The leading reasons were business growth (70%), the introduction of new technologies or equipment (47%), and new legislative or regulatory requirements (43%). Figure 2.4 What are the most likely reasons for your future skills needs? 46

55 Base: All respondents (n=113) Together with Chief Executives and senior officials, employees in professional occupations and administrative and secretarial positions were more likely to be affected by the need to acquire new skills or knowledge than their counterparts across the West of England as a whole (Figure 8.5). Figure 8.5 Which occupational categories of your business are most likely to be affected by this need to acquire new skills or knowledge? Base: All respondents (n=112) 8.3 Training 47

56 Forty four per cent (n=50) of respondents from Professional, Financial and Legal Services felt that business skills training was more important than sector-specific technical training, compared with 35% of businesses overall, reflecting the types of skills needed in the sector. The proportion of businesses in this sector whose staff had received training in 2014 was slightly higher than the average, in terms of proportions who had received any form of training (80% compared with 79%) a slightly higher proportion of businesses in the Professional, Financial and Legal Services sector delivered training days by external companies (71% compared with 64%). Availability of government funding was a factor in the choice of trainer for 24% of businesses in this sector, lower than the overall proportion of 37%. Eighty three organisations went on to detail other barriers to providing training for their workforce. The sector is generally well-aligned with the experience of the West of England as a whole (Figure 8.6). 48

57 Figure 8.6 What barriers have prevented your business providing training to current staff? Base: All respondents (n=83) 8.4 Apprenticeships When asked about the status of apprenticeships within their business, 73% of organisations operating in the Professional, Financial and Legal Services said they did not currently employ apprentices, compared to 69% of all business who completed the survey. Apprentices were a core part of the growth strategy for 9% of businesses (Figure 8.7). Around one-third (32%) of businesses in this sector were planning to take on at least one apprentice, whether in the next year (16%) or in the next 2 to 3 years (16%), which is lower than the averages (an overall proportion of 41%, or 21% and 20% respectively). 49

58 50

59 Figure 6.7 Please describe the current status of apprenticeships within your business Base: All respondents (n=117) When asked what support they would need in order to take on an apprentice, organisations cited a range of reasons, including instability of workload and costs: Have looked at it in the past but due to the unstable nature of the work Would consider it in the future but not appropriate at this time Need second premises to be able to employ more staff. Taking on second premises will mean that business rates will be payable on both premises - a significant cost increase 8.5 Vacancies and recruitment Forty one per cent of businesses said they had vacancies that were hard to fill in 2014, compared to 39% overall. Again reflecting overall trends, the leading reason for hard to fill vacancies was with low numbers of applicants with the required skills (Figure 8.8). In terms of the skills that were lacking amongst applicants, the greatest shortages were seen in technical, practical and job specific skills (42%) and business and customer awareness (28%). When asked what they were doing to overcome difficulties with recruitment, employers in this sector were more likely to use new recruitment methods or channels (42% compared with 30% overall) (Figure 8.9). 51

60 52

61 Figure 8.8 What were the main reasons your vacancies in 2014 were hard to fill? Base: Respondents who had vacancies that were hard to fill (n=47) Figure 8.9 What are you doing to overcome any difficulties in recruitment? Base: All respondents (n=62) 53

62 8.6 Working with schools and colleges More than half (57%; n=64) businesses operating within the Professional, Financial and Legal Services said they were currently working with schools and colleges to support the development of employability in young people, compared with 59% overall. The most prominent activities undertaken with schools and colleges are presented in Figure 8.10 below. While the majority were offering work experience, the proportion of businesses who were doing so within this sector is lower than that for West England as a whole (58% compared with 72%). Figure 6.10 From the list below please indicate the types of activities in which you are involved Base: All respondents (n=64) 54

63 9 Retail There were 72 respondents from the Retail sector, comprising 11% of the total businesses who responded. Businesses in this sector were typically smaller than average when compared with the result for all businesses combined (Figure 9.1). Figure 9.1: Sector profile by business size Base: All respondents (n=72) 9.1 Training plans and budgets The proportion of businesses in Retail who said they had a training plan (35%) was much lower than the average (50%). The results indicate that training budgets across this sector are smaller than the average; with only 3% saying they had a budget of 15,000 or more compared with 10% of all responding businesses (Figure 9.2) Three quarters (75%) of respondents said they had no training budget at all, compared to 56% overall. Figure 9.2: Which of the following reflects your allocated annual training budget? Base: All respondents (n=67) Around half (51%) of respondents said they carry out an annual appraisal process that considers the workforce development of their staff, compared to the average of 72%. The vast majority (86%; n=61) of respondents said their business considers how existing staff 55

64 might be able to fill their skills gaps, either with training and development (34%) or without (52%). 9.2 Skills gaps and future skills needs A lower than average proportion of businesses reported that skills are a barrier to business growth (28% compared to 43%). As shown in Figure 9.3, the highest scoring short and medium term skills priorities within this sector are oral communication skills (62%), team working skills (61%) and business and customer service skills (56%). Technical, practical or job specific skills emerged as an additional priority for the next 3 to 5 years, though less so as an immediate concern. Figure 9.3 Thinking about the skills required in your business please indicate your five priorities 56

65 Base: All respondents (n=66) As with the overall findings, the reasons for arising skills needs within the sector were varied (Figure 9.4); the leading reasons were business growth (57%), the introduction of new legislative or regulatory requirement (48%), and introduction of new technologies or equipment (46%). Figure 9.4 What are the most likely reasons for your future skills needs? Base: All respondents (n=61) Perhaps unsurprisingly for this sector, the professional groups most likely to be affected by the need to acquire new skills were sales and customer service staff (59% compared with 21% overall) and elementary occupations (21% compared with 7% overall). 9.3 Training The proportion of businesses in the Retail sector whose staff had received training in 2014 was slightly lower than average, in terms of proportions who had received any form of training (73% compared with 79%) and the same can be said for training days delivered by external companies (55% compared with 64%). When asked to rate their satisfaction with a range of training providers, level of satisfaction were similar to the overall findings, with FE colleges scoring lowest (Figure 9.5). Availability of government funding was a factor in the choice of trainer for 26% of businesses in this sector, a lower proportion to overall proportion of 37%. Forty eight 57

66 organisations went on to detail other barriers to providing training for their workforce. Businesses in the retail sector were more likely than average to report that staff were now fully proficient and didn t need training (24% compared with 15% overall). They were also less likely than average to report that training is too expensive (25% compared with 34%), perhaps reflecting the extent to which training is typically delivered in-house and on-thejob within this sector. Figure 9.5 What barriers have prevented your business providing training to current staff? Base: All respondents (n=48) 9.4 Apprenticeships When asked about the status of apprenticeships within their business, Retail businesses were more likely than average to say they did not currently employ apprentices (78% compared with 69% overall). Apprentices were a core part of the growth strategy for just 7% of businesses, and less than one in ten reported that apprentices were essential to future success, or that they wanted to bring a fresh approach into the business (Figure 9.6). 58

67 Figure 9.6 Please describe the current status of apprenticeships within your business Base: All respondents (n=67) Typical responses given by the 13 responses who cited what support they would need in order to take on an apprentice were; Trouble finding interested local students We ve had issues with two previous apprentices who had very little motivation. Attempted to take on an apprentice before but it was a nightmare lack of good applicants 9.5 Vacancies and recruitment More than one-third (35%; n=23) of Retail businesses said they had hard to fill vacancies. These businesses were more likely than average to report difficulty in finding applicants with the required attitude, motivation or personality (52% compared with 32% overall), and less likely to be affected by low numbers of applicants with the required skills (39% compared with 59% overall). They were also more likely than average to cite shift work and unsociable hours (22%) and lack of interest in doing the job (22%) as reasons for hard to fill vacancies (Figure 9.7). 59

68 Figure 9.7 What were the main reasons your vacancies in 2014 were hard to fill? Base: Respondents who had vacancies that were hard to fill (n=23) In terms of the skills that were lacking amongst applicants, the greatest shortages were seen in technical, practical and job specific skills (48%), oral communication skills (35%) and a positive attitude (35%). When asked what they were doing to overcome difficulties with recruitment, businesses in this sector were more likely than average to say they were increasing salaries (29%) or redefining existing jobs (16%) (Figure 9.8). Figure 9.8 What are you doing to overcome any difficulties in recruitment? Base: All respondents (n=35) 60

69 9.6 Working with schools and colleges Sixty-three per cent (n=41) of Retail businesses said they were currently working with schools and colleges to support the development of employability in young people, which is aligned with the WE average of 45%. The most prominent activities undertaken with schools and colleges are presented in Figure 9.9 below. While the majority (88%) were offering work experience, 34% were also offering apprenticeships or traineeships, and around one-quarter (24%) were giving careers talks or advice. Figure 9.9 From the list below, please indicate the types of activities in which you are involved Base: All respondents (n=41) 61

70 10 Social Enterprise A total of 48 organisations identified themselves as a Social Enterprise (7% of all responding businesses). This sector has relatively fewer businesses with less than 10 employees when compared to the average, although the proportions of small businesses (10 49) and businesses with employees are greater than averages (Figure 11.1). Figure 10.1: Sector profile by business size Base: All respondents (n=48) 10.1 Training plans and budgets Businesses is this sector were more likely than average to have training plan (67% compared with 50% overall). They were also less likely to report that they had no training budget, 42% compared with 56% overall, although the findings also suggest that training budgets for organisations in this sector are smaller than the average (Figure 10.2). Figure 10.2: Which of the following reflects your allocated annual training budget? 62

71 Base: All respondents (n=43) The majority (85%; n=48) of respondents said they carry out an annual appraisal process that considers the workforce development of their staff, a result that compares favourably with the West of England average of 72%. Around nine in ten (92%; n=48) said their business considers how existing staff might be able to fill their skills gaps, either with training and development (38%) or without (54%) Skills gaps and future skills needs Forty two per cent of respondents in this sector reported that skills are a barrier to business growth, a proportion that is similar to the average (43%). As shown in Figure 10.3, the highest scoring short term skills priorities within this sector are oral communication, technical, practical and job specific skills and team working skills, followed by business and customer awareness and basic IT skills. Figure 10.3 Thinking about the skills required in your business please indicate your five priorities 63

72 Base: All respondents (n=45) When asked to cite reasons for future skills needs, social enterprises were more likely than average to report new legislative or regulatory requirements (65% compared with 39% overall), and less likely to reference business growth as a factor (52% compared with 61% overall). Figure 10.4 What are the most likely reasons for your future skills needs? 64

73 Base: All respondents (n=46) In terms of the occupations that need to acquire new skills, responses were varied with some interesting differences from the West of England as a whole (Figure 10.5). The professional groups most likely to be affected by the need to acquire new skills were administrative and secretarial occupations (54% compared with 29% overall) and Chief Executives (54% compared with 39% overall). In addition, social enterprises were more likely than average to report that care, leisure and other service occupations would be affected (39% compared with 7% overall). 65

74 Figure 10.5 Which occupational categories of your business are most likely to be affected by this need to acquire new skills or knowledge? Base: All respondents (n=41) 10.3 Training When asked whether sector-specific technical training was more important than business skills training, the sector-wide perspective was closely aligned to that of the West of England with 65% reporting that sector-specific training was more important to their business (compared with 65% overall). Staff in this sector were more likely than average to say they had arranged supervisory training (28% compared with 17%) and management training (40% compared with 27%), in addition to health and safety training (79% compared with 64%) for their staff. The majority of responding social enterprises said their staff had received some form of training in 2014 (89% compared with 79%). They were also more likely than average to say that their staff had attended training delivered by external companies during 2014 (85% compared with 64%). Availability of government funding was a factor in the choice of trainer for 41% of businesses in this sector, similar to the overall proportion of 37%. Forty eight organisations went on to detail other barriers to providing training for their workforce (Figure 10.6). The leading issues were the pressure on staff time (52%) and lack of funds for training (42%). 66

75 Figure 10.6 What barriers, if any, have prevented your business providing training to current staff? Base: All respondents (n=33) 10.4 Apprenticeships When asked about the status of apprenticeships within their business, 68% of social enterprises said they did not currently employ apprentices. Apprentices were a core part of the growth strategy for an additional 21% of businesses, compared to 14% overall. While half (50%) of respondents said the currently had no plans to take on apprentices, onequarter (25%) said apprenticeships were likely to play a bigger part in their recruitment strategy in the future, which compares favourably with the overall proportion of 15% (Figure 10.7). When asked what support they would need in order to take on an apprentice, ten respondents offered a response, referencing a range of issues including relationships with providers, better information and the suitability of apprentices for their business: Attempted to take on apprentices but lack of suitable candidates. Continuing good relationships with local agencies and providers. We found it very difficult to get definitive information regarding start dates and costs. A poster from the local college is not enough information to base recruitment on. We prefer to use Internships. 67

76 Figure 10.7 What part do apprentices play within your longer term recruitment strategy? Base: All respondents (n=40) 10.5 Vacancies and recruitment The leading reason cited for hard to fill vacancies in the social enterprise sector was low numbers of applicants with the required skills (10/17). When asked which skills were lacking, almost half (8/17) said applicants were lacking work experience or employment history. Social enterprises were more likely than average to say their recruitment process involved working in partnership with the Jobcentre or DWP (39% compared with 17% overall). In terms of the measures taken to address recruitment difficulties, social enterprises were less likely than average to respond by increasing training or salaries, or redefining job roles (Figure 10.8). 68

77 Figure 10.8 What are you doing to overcome any difficulties in recruitment? Base: All respondents (n=23) 10.6 Working with schools and colleges Sixty one per cent (28 businesses) from the social enterprise sector said they were currently working with schools and colleges to support the development of employability in young people, which compares favourably with 45% for the West of England as a whole. While this was predominantly in the form of work experience (61%), social enterprise were also more likely than average to be delivering business workshops (17% compared with 8%), or to be involved in mentoring young people (39% compared with 25%). 69

78 Figure 10.9 From the list below, please indicate the types of activities in which you are involved Base: All respondents (n=36) 11 Education & Training Providers There were 50 respondents from education and training providers, comprising 8% of all responding businesses. This sector has relatively fewer businesses with less than 10 employees when compared to the average, although the proportion of small businesses (10 49) employees is slightly greater than average (Figure 11.1). Figure 11.1: Sector profile by business size Base: All respondents (n=50) 70

79 11.1 Training plans and budgets Businesses is this sector were more likely than average to have training plan (72% compared with 50% overall). They were also less likely to report that they had no training budget, 38% compared with 56% overall, although the findings also suggest that training budgets for organisations in this sector of a similar size to the average (Figure 11.2). Figure 11.2: Which of the following reflects your allocated annual training budget? Base: All respondents (n=47) The majority (84%; n=42) of respondents said they carry out an annual appraisal process that considers the workforce development of their staff, a result that compares favourably with the average of 72%. The majority (94%; n=73) also consider how existing staff might be able to fill their skills gaps, either with training and development (34%) or without (60%) Skills gaps and future skills needs Respondents in this sector were no more likely than average to report that skills are a barrier to business growth (40% compared to 43%). As shown in Figure 11.3, the highest scoring short skills priorities within this sector are technical, practical or job specific skills, business and customer awareness, and team working skills. Advanced IT or software skills and foreign language skills emerged as additional priorities for the next 3 5 years, though not as immediate concerns. Ten respondents listed technical, practical or job specific skills needs specific to their sector. These are presented in Table 11.1 below. 71

80 Table 11.1 Thinking about the technical skills specific to your sector, please list up to five needs Skill area (coded) Now 3-5 years Skill area (coded) Now 3-5 years Accreditation of awards 1 - Social media 2 - Bid writing 1 - Sports coaching 1 - Digital (including digital literacy) 2 2 Teaching 2 - Fundraising 1 - Working with volunteers 1 - Instructional qualifications 1 - Technical business strategy 1 1 Sales & marketing 4 - Website 2 1 Safeguarding 1 - Course development

81 Figure 11.3 Thinking about the skills required in your business please indicate your five priorities Base: All respondents (n=39) Reasons for arising skills needs within the education and training sector were broadly aligned with averages for the West of England (Figure 11.4). The leading reasons were business growth (63%) and new legislative or regulatory requirements. This sector was however less likely than average to report skills needs arising from the introduction of new technologies or equipment (38% compared with 50% overall). The professional groups most likely to be affected by the need to acquire new skills were Chief Executives and Senior Officials (44% compared with 39% overall) and professional occupations (38% compared with 33% overall). 73

82 Figure 11.4 What are the most likely reasons for your future skills needs? Base: All respondents (n=40) 11.3 Training On the whole, respondents in this sector were more likely than average to say their staff had received some form of training in 2014 (97% compared with 79%). The sector-wide perspective on whether sector-specific technical training was more important than business skills training was closely aligned with the average (61% compared with 65% overall). Four out of five businesses (82%) had provided job specific training for their staff, a proportion that is similar to the average of 80%. Staff in this sector were more likely to receive management training when compared with the averages; 37% of businesses had arranged this for their staff compared with 27% overall. Government funding appears to be of particular importance to this sector; 67% said this affected their choice of training compared with 37% overall. Thirty four organisations went on to detail other barriers to providing training for their workforce (Figure 11.5). The leading issue was the pressure on staff time (62%), lack of funds for training (50% compared with 35%), and the expense of training (47% compared with 34%). 74

83 Figure 11.5 What barriers, if any, have prevented your business providing training to current staff? Base: All respondents (n=34) 11.4 Apprenticeships When asked about the status of apprenticeships within their business, 67% of education and training providers said they did not currently employ apprentices, a proportion that is similar to the average of 69%. Apprentices were a core part of the growth strategy for 28% of businesses, while more than one in five businesses reported that apprentices can be trained to suit their business needs, or that they had experienced success with employing apprentices in the past (Figure 11.6). Just over one-third (35%) were planning to take on at least one apprentice whether in the next year (29%) or in the next 2 3 years (16%). When asked what support they would need in order to take on an apprentice, just eight respondents offered a response, referencing a range of issues including government funding, lack of applicants, and suitability of apprentices for their organisation: None - we prefer our own in-house trainee scheme and disagree with the apprenticeship system as current proscribed. Getting the right apprentices with the right level of enthusiasm. Continued funding e.g. Age Grants or the return of Future Jobs Fund as then we would adapt our business strategy to focus more on Apprenticeship growth. 75

84 Figure 11.6 Please describe the current status of apprenticeships within your business Base: All respondents (n=39) 11.5 Vacancies and recruitment Of the businesses who said they had hard to fill vacancies, around three-quarters (75%) said this was due to low numbers of applicants with the required skills, a relatively high proportion in comparison to the average of 59% (Figure 11.7). In terms of the skills that were lacking amongst applicants, the greatest shortages were seen in technical, practical and job specific skills (63% compared with 54% overall). Organisations in this sector were also more likely than average to report a lack of advanced IT or software skills (31% compared with 16% overall), written communication skills (25% compared with 16% overall), and leadership and management skills (19% compared with 9% overall). When asked what they were doing to overcome difficulties with recruitment (Figure 11.8), businesses in this sector were more likely to say they were bringing in contractors or contracting out work (39% compared with 18% overall), redefining existing jobs (39% compared with 18% overall), offering training to less qualified recruits (36% compared with 22% overall) or increasing training to the existing workforce (36% compared with 20% overall). Forty three per cent of respondents said it was to address skills and recruitment needs now than it was 2 years ago. 76

85 Figure 11.7 What were the main reasons your vacancies in 2014 were hard to fill? Base Respondents who had vacancies that were hard to fill (n=16) Categories selected 10% of respondents or more are presented due to small numbers of respondents for this question. Figure 11.8 What are you doing to overcome any difficulties in recruitment? Base Respondents who had vacancies that were hard to fill (n=28) 11.6 Working with schools and colleges Seventy one per cent (27 organisations) said they were currently working with schools and colleges to support the development of employability in young people, which compared favourably the average of 45%. This was predominantly in the form of offering work 77

86 experience (69%), though smaller proportions were also giving careers advice or talks, mentoring young people, or providing practical advice (48%). 78

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