Scottish Sector Profile

Transcription

1 Scottish Sector Profile

2 1 Introduction 01 2 Summary of findings 02 3 Sector characteristics 03 4 Recruitment 05 5 Skill gaps 06 6 Workplace development 07 7 Impact of the economic downturn 08 8 Business planning and human resource management 09 9 Appendices The iance Scotland is tasked with representing, promoting and supporting the work of the licensed UK Sector Councils (SSCs) in Scotland. The SSCs are the employer-driven organisations that together articulate the voice of the employers of around 90% of the UK s workforce on skills issues. The iance Scotland s core purpose is to: Act as the collective voice of the SSCs; Promote understanding of the role of SSCs within the skills system across Scotland; Coordinate policy positions and strategic work on skills with stakeholders; and Help build the performance capability of the SSCs to ensure they continue to work effectively on the employer-driven skills agenda. 1.5 Data associated with Section 3 Sector Characteristics are taken from a combination of official sources and presented using a method of analysis developed in by and TBR, an independent research organisation. These figures represent a picture of the creative and cultural which are often inadequately represented using traditional methods of data analysis. sources are footnoted. For more detail regarding this approach please see section 9.4 in the Appendices. 1.3 This report provides data for employers covered by, the SSC for the Craft, Cultural Heritage, Design, Literature, Music, Performing, and Visual Arts sectors. It should be noted that an equivalent report was not produced in The principal data source is the Scottish Employers Survey 2010 (SESS 2010), a survey undertaken by the Scottish Government on a biennial basis. More information about this survey, and the full results, can be found at Other data in this report have been taken from a combination of official sources; all sources are footnoted. Introduction 01

3 2.1 Compared with the averages for all workplaces in Scotland, the Craft, Cultural Heritage, Design, Literature, Music, Performing, and Visual Arts sectors are characterised by: More very small workplaces (79%); A higher proportion of male employees (55%); A slightly lower proportion of part-time employees (24%); A similar proportion of employees with a disability (14%); Across the UK have much higher proportion of employees in associate professional and technical occupations (61%). 2.2 In terms of recruitment as a proportion of all employment, employers within the footprint report: A similar proportion of hard-to-fill vacancies 1 (0.9%); A slightly higher proportion of skill shortage vacancies (0.6%). 2.5 In terms of workplace development, employers in the Craft, Cultural Heritage, Design, Literature, Music, Performing, and Visual Arts sectors are: Less likely to experience skill gaps (8%); Less likely to provide training overall (46%). 2.6 Employers in the footprint made fewer reductions to staff numbers (), as well as a number of aspects of recruitment and training as a result of the economic downturn than Scottish employers overall. 2.7 Compared with Scottish employers overall, employers in the Craft, Cultural Heritage, Design, Literature, Music, Performing, and Visual Arts sectors are less likely to have a staff training plan in place (3), but more likely to have management accounts 2 (79%) or a sales and marketing plan (60%). 3.1 Scotland has more than 3,600 workplaces in the Craft, Cultural Heritage, Design, Literature, Music, Performing, and Visual Arts sectors with one or more employees, which account for 1% of all workplaces in Scotland. There are approximately 57,870 employee jobs 3 in the sector. This figure accounts for 2.3% of all jobs in Scotland. Table 3.1: Workplaces and Employee Jobs Source: Inter-Departmental Business Register, 2009; TBR analysis; 2011 Numbers in 2009 as a proportion of all Number of sector workplaces Numbers of employee jobs 3,600 57, % 2.3% 3.3 Compared to all Scottish employers, the Craft, Cultural Heritage, Design, Literature, Music, Performing, and Visual Arts sectors are characterised by: A somewhat higher proportion of part-time jobs; A somewhat higher proportion of male workers. Table 3.2: Gender and part-time profile; Employees within the footprint and the average for all Source: Annual Population Survey, 2009; TBR analysis; 2011 Part-time employees 24% 26% employees Male 55% 52% 2.3 Employers covered by are less likely to be aware of Modern Apprenticeships (42%) and slightly less likely to have staff undertaking them (3%) than is the case for all Scottish employers. 2.4 Looking at the qualifications held by the most recent recruit, those recruited by employers within the footprint are more likely to be qualified to Degree Level or above (49%) than those recruited by Scottish employers overall, but less likely to be qualified to any level below Degree Level. 3.2 The Craft, Cultural Heritage, Design, Literature, Music, Performing, and Visual Arts sectors have a high proportion of very small workplaces, those with up to four employees, with 79% of workplaces fitting this category, compared with 73% of all Scottish workplaces 4. Figure 3.1: Size of workplaces; and all Source: Inter-Departmental Business Register, 2009; TBR analysis; % 80% 70% 60% 50% 79% 73% employees Female 45% 48% 3.4 In terms of disability profile the Craft, Cultural Heritage, Design, Literature, Music, Performing, and Visual Arts sectors are broadly similar to Scottish employers overall. However, the proportion of DDA 5 disabled employees is slightly lower in footprint and the proportion of work-limiting disabled staff is slightly higher. Table 3.3: Disability profile; Employees within the footprint and the average for all Source: Annual Population Survey, 2009; TBR analysis; % 30% Both DDA (current disability) and work-limiting disabled 5% 5% 20% 10% 14% 8% 1% 1% 1% 1% 0% 0% 0% Key: DDA disabled (current disability) only 4% 6% Work-limiting disabled only 4% 2% Not disabled A hard-to-fill vacancy is a vacancy that an employer struggles to fill. Where such a vacancy is proving hard-to-fill due to a lack of the required skills, qualifications or experience among applicants, it is termed a skill shortage vacancy. 2 Management accounts are informal accounts used by managers in the everyday running of an organisation, rather than financial accounts collected annually and used by people outside the organisation. 3 This includes 21,500 who are considered self employed. 4 This includes those businesses with no employees. 5 DDA disability refers to persons who meet the criteria for identification as a disabled person under the Disability Discrimination Act, (c-50) A person has a disability for the purposes of this Act if he / she has a physical or mental impairment which has a substantial and long-term adverse effect on his / her ability to carry out normal day-to-day activities. 02 Summary of findings Sector characteristics 03

4 3.5 The Craft, Cultural Heritage, Design, Literature, Music, Performing, and Visual Arts sectors have a similar age profile than Scottish employers overall with 41% of those working in the sector aged 45 years or older, the same as among all those working in Scotland. Figure 3.2: Age profile of people in employment Source: Annual Population Survey, 2009; TBR analysis; % 50% 40% 30% 20% 10% 0% 9% % Key: 50% % 41% 41% 3.6 The pattern of occupations within the Craft, Cultural Heritage, Design, Literature, Music, Performing, and Visual Arts across the UK differs from that seen across all UK employment in general (62% compared to 15%). The figure for all employment in Scotland is similar to the UK figure. There are also very small numbers of staff employed in personal service 6 occupations, sales and customer service occupations or as process, plant and machine operatives. 45+ Figure 3.3: Distribution of employees by occupation Source: Annual Population Survey, 2009; TBR analysis; 2011 Associate Professional and Technical Professional occupations Managers and Senior Officials Skilled Trades occupations Elementary occupations Administrative and Secretarial Sales and Customer Service Process, Plant and Machine Operatives Personal Service occupations 0 Key: UK Scotland 15% 13% 13% 13% 4% 16% 15% 3% 12% 2% 9% 2% 8% 1% 9% 13% 10% 20% 30% 40% 50% 60% 70% 3.7 Employers were asked what they perceive to be the main challenges they will face over the coming 12 months. As for all Scottish employers, cash flow (3), and attracting new customers (28%) are areas of particular concern for those in the Craft, Cultural Heritage, Design, Literature, Music, Performing, and Visual Arts sectors. These issues were mentioned by a higher proportion of employers covered by than Scottish employers overall (25% and 19% respectively) 7. 62% 4.1 While 65% of all Scottish employers have recruited in the past two to three years, only 52% of employers covered by have done so. 4.2 Skill shortage vacancies occur when employers cannot find job applicants with the skills, qualifications or experience required for a role. Overall, skill shortages affect 3% of employers in Scotland and 1% of employers covered by. Skill shortage vacancies and hard-to-fill vacancies have potentially severe consequences for employers. Compared with other sectors, employess covered by are characterised by: A similar proportion of vacancies as a percentage of employment; A similar proportion of hard-to-fill vacancies as a percentage of employment; A somewhat higher proportion of skill shortage vacancies as a percentage of employment. Table 4.1: Vacancy, hard-to-fill vacancy and skill shortage vacancy rates Vacancies as a % of employment Hard-to-fill vacancies as a % of employment Skill shortage vacancies as a % of employment Base all employers ( =168, all =6,001), all employers with vacancies ( =23, all =1,130) % 0.9% % 0.3% 4.3 Looking at vacancies by occupational group as a proportion of employment in that group, the Craft, Cultural Heritage, Design, Literature, Music, Performing, and Visual Arts sectors have most vacancies for associate professionals. On the same basis, the sector also has the highest proportion of hard-to-fill vacancies for associate professionals. Modern Apprenticeships 4.4 Modern Apprenticeships (MAs) offer people aged 16 and over the chance of paid employment combined with the opportunity to train for jobs at different levels. They target those aiming to achieve Scottish Vocational Qualifications (SVQ) at Level 3 or above to train them as technicians and supervisors: the format of training is decided by the corresponding SSC. Employers within the footprint have lower awareness of MAs than Scottish employers overall, and are marginally less likely to have staff undertaking MAs. Table 4.2: Modern Apprenticeships Aware of Modern Apprenticeships Have staff undertaking Modern Apprenticeships Offer Modern Apprenticeships but have no staff undertaking them at present 42% 52% 3% 5% 4% 4% Base all employers ( =168, all =6,001), all employers aware of Modern Apprenticeships ( =95, all =3,534), all employers who offer Modern Apprenticeships but have no staff undertaking them at present ( =84, all =2,953) Qualifications sought from candidates 4.5 When recruiting over the past two to three years, 3 of all Scottish employers sought a particular qualification; by comparison, 43% of employers in the Craft, Cultural Heritage, Design, Literature, Music, Performing, and Visual Arts sectors sought a particular qualification from recruits. 4.6 For 34% of employers covered by, the most recent recruit held a Degree Level qualification, more than twice the proportion of degree level recruits among Scottish employers overall. Employers within the footprint were more likely to have recruited staff above Degree Level (16% compared to 9%) and considerably less likely to have recruited staff below Degree Level. 6 Personal services include occupations such as care staff, catering staff, hairdressers, domestic staff and caretakers. 7 This data is from SESS Sector characteristics Recruitment 05

5 5.1 Skill gaps occur when employers find that an employee lacks the necessary skills to carry out their role with full proficiency. Skill gaps affect 15% of all Scottish employers. Compared with all, employers in the footprint are less likely to experience skill gaps, with 8% reporting the problem. 5.2 Amongst employers for whom skill gaps have a major or minor impact, 61% cite increased operating and running costs as an impact, 58% cite difficulties meeting required quality standards. Figure 5.1: The impact of skill gaps Increased operating / running costs Difficulties meeting required quality standards Difficulties meeting customer service objectives Difficulties introducing new working practices Key: 0 49% 4 43% 58% 53% 51% 61% 63% 10% 20% 30% 40% 50% 60% 70% 80% 6.1 employers are less likely to provide training for their employees than Scottish employers overall (46% compared with 61%). Compared with all, employers in the Craft, Cultural Heritage, Design, Literature, Music, Performing, and Visual Arts sectors are less likely to provide training both on and off-the-job (2 compared to 34%). 6.2 Amongst those employers who had not provided training in the past 12 months, the most common reason for not doing so among employers covered by was that staff were already fully proficient (54%). 6.3 Employers who had provided training were asked whether, if they could have done, they would have provided more training than they were able to over the past 12 months. Almost half of all Scottish employers (48%) would have done so; 60% in the Craft, Cultural Heritage, Design, Literature, Music, Performing, and Visual Arts sectors would have done so. 6.4 Employers covered by who had provided training were most likely to have used private training providers and external consultants (66%) to deliver the training, followed by staff on site (61%). Base all employers for whom skill gaps have a major or minor impact ( =26, all =980) 06 Skill gaps Workplace development 07

6 7.1 Employers covered by made fewer reductions to the number of overall staff employed as a result of the economic downturn. Seven per cent of employers within the Craft, Cultural Heritage, Design, Literature, Music, Performing, and Visual Arts sectors reduced their overall numbers of staff, compared to 21% across all Scottish employers. Figure 7.1: Impact of economic downturn on staff Number of staff Key: Decreased No change Increased 84% 21% 69% 0 8% 9% 20% 40% 60% 80% 100% Base all employers ( =168, all =6,001) 8.1 Compared with Scottish employers overall, employers in the Craft, Cultural Heritage, Design, Literature, Music, Performing, and Visual Arts sectors are less likely to have a staff training plan in place, but more likely to have management accounts or a sales and marketing plan. Table 8.1: Adoption of key business planning practices Business plan 60% 59% Management accounts 79% 53% Sales and marketing plan 60% 44% Staff training plan 3 68% Base all employers ( =168, all =6,001) 7.2 With regards to training, employers covered by are less likely to have made reductions to expenditure on training per employee, the proportion of employees given training, the proportion of training provided by providers, the emphasis placed on informal learning and the amount of training leading to qualifications as a result of the economic downturn than Scottish employers overall. Compared to all Scottish employers, those within the footprint were more likely to have made increases to the proportion of employees given training, the proportion of training provided by external providers and the emphasis placed on informal learning. 8.2 Human resource management refers to a logical, planned approach to managing the people who work for an organisation. It includes employing staff, developing their capacities, making efficient use of their services and compensating their services in line with their role and with organisational requirements. 08 Impact of the economic downturn Business planning and human resource management 09

7 9.1 The principal data source used in this profile is the SESS 2010, which was established to provide robust research on employers views on skills, training and recruitment for Scotland. Table 9.1 shows the number of establishments sampled for and for all by size band. Table 9.1: Sample size of Scottish Employer Survey by size band and all sectors (Number of establishments sampled) Total ,689 1,319 1, , Two sources have been used in addition to SESS These are: The Inter-Departmental Business Register (IDBR), for figures on the count and employment of VAT and / or PAYE based local units, as at March The IDBR excludes those working on a self-employed basis and not VAT registered: it is therefore an undercount of the total numbers in employment, although it represents nearly 99% of UK economic activity. The Annual Population Survey 2009 for employment figures on gender, part-time work, disability and occupation. The data include employees and the self-employed, but figures are based on a sample survey. Data have only been presented as percentages. 8 Please note that by using SIC 2007 the SESS sample excludes the majority of craft businesses, and has significant issue representing both the design, music, literature and visual arts sectors. 9 Trends Central Resource. 9.3 Table 9.2 shows the Standard Industrial Classification (SIC) codes used to define the footprint for SESS The SIC 2007 code definitions are used for the sampling and weighting of SESS 2010 data, and are used throughout this report 8. Table 9.2: SIC 2007 codes included in the footprint in SESS 2010 and this report SIC 2007 code Description 1820 Reproduction of recorded media 3212 Manufacture of jewellery and related articles 3213 Manufacture of imitation jewellery and related articles 3220 Manufacture of musical instruments 5920 Sound recording and music publishing activities 7410 Specialised design activities 8552 Cultural education 9001 Performing arts 9002 Support activities to performing arts 9003 Artistic creation 9004 Operation of arts facilities 9102 Museum activities 9103 Operation of historical sites and buildings and similar visitor attractions 9.4 has developed a series of coefficients to denote the creative proportion of an SIC or SOC. These coefficients are then used to identify employment and business numbers within the creative and cultural. An example of the use of such coefficients are described in Table 9.3, below. coefficients are derived through examining the business activity description of each business within each SIC code using TCR data 9. Employment estimates are then calculated by applying each coefficient to the relevant SICs employment. After this step has been carried out, the proportioned employment of each SOC in definition is then removed from each SIC in order to avoid double counting. Table 9.3: Example from the footprint Sub- Sector Music Segment Sub-Segment SIC Composition of Musical Works & Music Publishing Publishing of Sound Recordings 5920: Sound recording and music publishing activities Firm Coefficient Emp Coefficient 33.90% 57.10% Live Performance Venues 7990: Other reservation service and 3.10% 2.10% related activities 9001: Performing arts 0.50% 1.50% 9004: Operation of arts facilities 77.60% 73.10% Musical Education Musical Education 8552: Cultural education 15.70% 27.30% Production, Retail & Distribution of Musical Instruments / Audio Equipment Promotion, Management & Agency Related Activities Recording Retail & Distribution of Recordings Musical Instrument Manufacture Retail Audio Equipment Retail Musical Instruments TV radio HiFi etc eqt manufacture Wholesale Audio Equipment Wholesale Musical Instrument Promotion, Management & Agency Related Activities Recording Media Mfr Recording Studios 3220: Manufacture of musical instruments % % 9529: Repair of other personal and 86.30% 79.30% household goods 4743: Retail sale of audio and video equipment in specialised stores 4759: Retail sale of furniture, lighting equipment and other household articles in specialised stores 4759: Retail sale of furniture, lighting equipment and other household articles in specialised stores 2640: Manufacture of consumer electronics 4643: Wholesale of electrical household appliances 4649: Wholesale of other household goods 8299: Other business support service activities n.e.c. 2680: Manufacture of magnetic and optical media 5912: Motion picture, video and television programme post-production activities 5920: Sound recording and music publishing activities 83.00% 77.00% 0.00% 0.10% 6.90% 5.10% 93.00% 89.40% 8.90% 16.70% 0.45% 1.70% 0.10% 0.20% 98.00% 97.30% 17.50% 49.00% 43.50% 29.70% Sound Recording 1820: Reproduction of recorded media 95.30% 88.80% 5920: Sound recording and music 9.10% 4.40% publishing activities Retail of Recorded Music Wholesale of Recorded Music 4763: Retail sale of music and video recordings in specialised stores 4643: Wholesale of electrical household appliances 87.30% 91.00% 1.70% 6.00% 10 Appendices Appendices 11

8 9.5 By taking this approach, it is possible to analyse parts of the creative which have so far been neglected, Table 9.4 below shows how craft data can be collected from a variety of different SIC codes (in this example crafts associated with pottery and ceramics are highlighted). Table 9.4: Example from the craft footprint Segment SIC Firm Coefficient Emp Coefficient Pottery & Ceramics 2331: Manufacture of ceramic tiles and flags 2341: Manufacture of ceramic household and ornamental articles 9003: Artistic creation 6.90% 0.90% 73.70% 31.70% 0.50% 0.10% 12 Appendices

9 iance of Sector Councils, Scotland 28 Castle Street, Edinburgh EH2 3HT Telephone: Fax: