What types of employment support services work best in Scotland, reflecting the very different needs of individuals who are unemployed?

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1 CONSULTATION PAPER QUESTIONS QUESTION 1 What types of employment support services work best in Scotland, reflecting the very different needs of individuals who are unemployed? Employment support services should be centred around the individual to ensure that appropriate and relevant help is provided to aid access to jobs. A strong and robust initial assessment - where gaps in the individual s skills and knowledge are identified - is crucial in this process. There are currently a large number of employment support programmes available in Scotland funded by a range of bodies including DWP, Skills Development Scotland and local authorities. It is essential that individuals are referred to the programme which best fits their needs and which avoids potential duplication and double funding. Employment support should as far as possible - be tailored to individual needs. A standardised package (or one size fits all) has proven to be less effective particularly for those groups furthest from the job market. QUESTION 2 How best can we ensure the needs of different businesses and sectors in Scotland, are aligned with employment programme outcomes? There needs to be a greater understanding of the recruitment needs of business and the future development of employment support services should be built around this. Central to this, is to engage employers in future development to ensure that programmes meet their needs and that they will support programmes in the long term. The large array of different training programmes available with different funding and eligibility criteria can be confusing for employers and make the landscape difficult to navigate. Accordingly, a simplified menu would encourage greater employer participation. In addition, employer incentives should where possible be standardised to avoid confusion with different rates in different regions.

2 QUESTION 3 What are the strengths and weaknesses of existing employment support programmes and delivery mechanisms in Scotland? Strengths: In the main, current employment support programmes are tailored to the needs of the individual and are flexible in their delivery approach Programmes are aimed at building confidence in the individual and improving motivation to seek lasting employment Payment by result ensures that training providers are focussed on the primary objective of individuals achieving lasting employment Continued support for individuals in employment is improves sustainability. Weaknesses: The current landscape is cluttered and there is a lack of joined up provision and funding There is a lack of awareness of the full provision available and therefore inefficiencies in the system In the Work Programme, there is a view that more time could be spent in engaging with individuals to provide a better, more bespoke service In the Work Programme, there is a view that more activity should be mandated to encourage greater individual participation. QUESTION 4 Where are the current examples of good practice in relation to alignment of services to most effectively support a seamless transition into employment? Although STF members have not highlighted specific examples of good practice, there is agreement that closer working links and partnerships between agencies, employers and training providers will have the most impact in supporting transition to employment.

3 QUESTION 5 What are the key improvements you would make to existing employment support services in Scotland to ensure more people secure better work? Initial assessment: The initial assessment should be standardised and improved to ensure that individuals are referred to the programme which best fits their needs. Quality standard: To ensure quality of delivery and outcomes, consideration should be given to the introduction of a quality standard. Referral fee: An increase in the referral fee would assist training providers with cash flow at the early stages of their contract. Contract length: Longer contracts would give training providers greater stability and encourage greater investment. Employer benefits: Employers who commit to employment support programmes should be recognised via tax breaks or incentives. QUESTION 6 How best can we assess the employment support needs of an individual and then ensure the support they receive is aligned with their requirements? Initial referral: More time should be spent in ensuring that the initial referral is detailed and results in the individual being placed on the programme which best fits their needs. Closer working links between the referral agency and the training provider will assist with this. Continuity: To avoid duplication of effort, it is important that information collected from previous referrals should be available and, in effect, travels with the individual. Initial assessment: A robust initial assessment is vital in identifying gaps in skills and knowledge and in determining how far the individual is from the job market. Personal action plan: A personalised action plan should be developed and agreed with the individual. This should address barriers to employment and should be updated regularly.

4 QUESTION 7 How best can the employability pipeline framework help providers best assess and deliver services people need? The employability pipeline provides clarity of purpose and expectation. In addition, it provides a framework which promotes a consistency of approach for all training providers. The different stages allow individual training providers to specialise and become expert in specific sections of the pipeline. Key to the success of the pipeline is the initial assessment which should provide a detailed overview of the client s requirements to ensure referral to the appropriate support programmes. This will ensure that duplication of provision is avoided and maximum return on public funding is achieved. QUESTION 8 How can early intervention best be integrated into employment support and the design of future programmes? Early intervention is important to ensure that individual s do not develop patterns of behaviour that will lead to them falling in to long term unemployment. Further, it improves self-esteem and motivation and promotes positive behaviour and habits. The design of employment support services should include input from other sectors and support agencies such as in education and housing to reflect the complexity of individual circumstances and to promote higher levels of success. Examples of best practice in this area may be available from other parts of the UK and Scotland should seek to build on these.

5 QUESTION 9 What is the optimal duration of employment support, in terms of both moving individuals into work, and then sustaining their employment? STF has received a range of views on the optimal duration of employment support. For some members, the timescales in place for the Work Programme are in broad terms satisfactory. There is some support for more to be done to support individuals who are in work - to extend the support period. There is also a recognition that for some individuals who are furthest from the job market, the current timescales may not be long enough. However, this may be due more to the effectiveness and relevance of the intervention itself, rather than the timescales in place. Related to this point, some members see the opportunity to shorten pre-employment support timescales, whilst at the same time focussing on more tailored support. QUESTION 10 What are the benefits and challenges of a national contracting strategy for Scotland s future employment support service(s)? Benefits Consistency: National contracting allows a consistency of delivery and performance and a uniform approach to monitoring. Flexibility: Within a national framework, regional or geographic differences can be accommodated to an extent - to reflect local needs. Challenges Flexibility: A national approach may not be flexible enough to ensure that individuals receive the same levels of support wherever they are located. Consistency: A national approach may be less responsive to geographic differences and individual needs.

6 QUESTION 11 How best can we secure effective regional and local delivery of employment support in future? The key is to ensure that the initial assessment is detailed and robust - and that referral is made in the full knowledge of all available support programmes. Allied to this, a rationalisation of existing programmes is required to reduce duplication and overlap and optimise value for money. Some STF members support the establishment of an individual pot of funding that each individual would access in their journey towards employment. QUESTION 12 Do national or more localised employment support programmes work better for different client groups? If so, which ones and why? Some programmes particularly those dealing with specific support needs will benefit from local delivery. In addition, individuals based in rural locations will also benefit from local delivery as it reduces the requirement for travel. A national programme with the scope for local delivery and flexibility would appear to offer the best solution. This will allow economies of scale to be achieved but also reflect local needs. QUESTION 13 Who should be the contracting authority for devolved employment support provision? Contracting should be undertaken by a Scotland-wide agency, such as Skills Development Scotland.

7 QUESTION 14 Which client groups would benefit most from future employment support in Scotland and why? There are two key groups who would benefit most: 1 Those furthest from the job market and with additional support needs 2 Those in sectors which have experienced a recent economic downturn such as oil and gas and who require support to make the most of their existing skills. QUESTION 15 What should be our ambitions for these client groups? The focus for all activity is to support individuals into employment by giving them the tailored support they require to make this journey via the shortest and most effective route. A robust and detailed initial assessment, followed by an appropriate referral is crucial. QUESTION 16 How can we maximise the effectiveness of devolved employment support in Scotland, in relation to the broader range of resources and initiatives available in Scotland? It is important that funding is used effectively and that a range of employability support programmes is made available to each individual. Duplication of delivery and funding should be minimised by the creation of a central overview of programmes available in each region. A robust initial assessment is required to ensure that individuals are referred to the most appropriate support programmes.

8 QUESTION 17 What are the advantages, or disadvantages, of payment by results within employment support? What would form an effective suite of outcomes and over what period for Scotland? What does an effective payment structure look like? The main advantage of payment by results is that it ensures that the training provider supports the individual through all stages of their journey to employment. There is a continued incentive for the training provider to provide the required support to achieve the goal of employment. A key disadvantage is the current low referral fee which makes it difficult for training providers to cover their initial start-up costs. An increase in this fee would allow training providers to manage their cash flow more effectively. In addition, the current system does not guarantee the number of referrals and therefore planning is less precise and business models need to be based on outcome payments received in the future, which will restrict entry to the market for smaller training providers who cannot absorb this initial period without income. QUESTION 18 What are the advantages, or disadvantages, of payment for progression within employment support? What measures of progression and over what period? What does an effective payment structure, which incentivises progression, look like? Current Work Programme payments do not acknowledge the time spent to support individuals to achieve skills outcomes, nor do they reflect the distance travelled by the individual. Progression payments would address this issue and acknowledge the support provided, whether or not a job outcome has been achieved. Whilst the central aim of employment support programmes should be focussed around a job outcome, there is a view from STF members that some payment recognition should be built in to the system to reflect the distance travelled by an individual. Potentially, this could be achieved by developing a personal action plan with each individual with timelines, outcomes and payments agreed in advance.

9 QUESTION 19 What are the key aspects of an effective performance management system, to support the delivery of employment support outcomes in Scotland? An effective performance management system should be standardised across all training providers and across all areas. It should also be clear and transparent. QUESTION 20 Collectively, how best do we encourage active participation and avoid lack of participation on employment support programmes? Every effort must be made to encourage individuals to participate in employment support programmes. With some STF members, there is support for more mandated activity between the individual and the training provider as this can help individuals progress more quickly into employment. There is recognition that sanctions are an important aspect of the programme. However, the current system can be confusing and ambiguous and therefore work should be undertaken to seek to clarify and standardise this. QUESTION 21 Do you have any other comments/views in relation to future employment support that have not been covered in the questions above? N/A End of Questionnaire Thank you for participating