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 Skills 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. 1.3 This report provides data for employers who are covered by, the SSC for the Building Products & Refractories, Coatings, Ceramics, Extractive & Mineral Related Industries, Paper, Printing and Wood sectors. 1.4 The principal data source is the Scottish Employers Skills 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 official sources; all sources are footnoted. Introduction 01

3 2.1 Compared with the averages for all workplaces in Scotland, the Building Products & Refractories, Coatings, Ceramics, Extractive & Mineral Processing, Furniture, Furnishings & Interiors, Glass and Related Industries, Paper, Printing and Wood sectors are characterised by: A lower proportion of female employees (22%); A lower proportion of part-time employees (3% male; 8% female); A lower proportion of employees with a disability (); A much higher proportion of employees in skilled trades (25%) and process, plant and machine operative occupations (24%), and a higher proportion of managers and senior officials (18%). 2.2 In terms of recruitment as a proportion of all employment, employers within the footprint report: A slightly lower proportion of hard-to-fill vacancies 1 (0.4%); A similar proportion of skill shortage vacancies (0.4%). 2.6 Employers covered by appear to have been more affected by the economic downturn than Scottish employers overall, being more likely to report that they have decreased their recruitment of young people (18%) and their numbers of employees overall (35%), and to have reduced expenditure on training per employee (29%), the proportion of employees given training (18%), and the proportion of training provided by external providers (26%). 2.7 Compared with all employers, those covered by Proskills UK are more likely to adopt a business plan (67%), a sales and marketing plan (46%) and management accounts 2 (73%). In terms of employment practices, the most common among employers within the footprint are arrangements for direct involvement of employees in decision making and problem solving (76%), followed by flexibility for employees to decide how their work is organised or carried out (74%). These are also the most common practices among Scottish employers overall. 3.1 Scotland has 2,500 workplaces in the Building Products & Refractories, Coatings, Ceramics, Extractive & Mineral Related Industries, Paper, Printing and Wood sectors with one or more employees, which account for 1.5% of all workplaces in Scotland. There are almost 40,000 employee jobs 3 in the sector. The employee jobs in the sector account for about 1.6% of all jobs in Scotland. Table 3.1: Workplaces and Employee Jobs Source: Inter-Departmental Business Register, March 2009 Number of sector workplaces Numbers of employee jobs Numbers in ,500 37,100 as a proportion of all 1.5% 1.6% Figure 3.1: Size of workplaces; and all Source: Inter-Departmental Business Register, March % 60% 50% 40% 30% 20% 0% 56% 59% % 18% 14% 13% % 5% 6% % % % 2.3 Employers covered by are more likely to be aware of Modern Apprenticeships (63%) and more likely to have staff undertaking them (8%) than is the case for Scottish employers on average. 2.4 Looking at the qualifications held by the most recent recruit, those recruited by employers in the footprint are less likely to be qualified to Degree Level (19%) or above (2%) than those recruited by Scottish employers overall. 2.5 In terms of workplace development, employers in the footprint are: About equally likely to experience skill gaps (14%); Slightly less likely to provide training (59%). 3.2 In terms of workplace size, the Building Products & Refractories, Coatings, Ceramics, Extractive & Mineral Related Industries, Paper, Printing and Wood sectors have a very similar profile to that of Scottish employers overall, with most workplaces being very small (one to four employees), and 30% of workplaces falling between 5 and 24 employees. 3.3 Compared to all Scottish employers, the Building Products & Refractories, Coatings, Ceramics, Extractive & Mineral Related Industries, Paper, Printing and Wood sectors are characterised by: A lower proportion of part-time jobs; A lower proportion of female employees. Table 3.2: Gender and part-time profile; Employees within the footprint and the average for all Source: Annual Population Survey, 2009 Part-time employees Male 3% 6% Part-time employees Female 8% 20% employees Male 78% 52% employees Female 22% 48% 3.4 In terms of disability profile the Building Products & Refractories, Coatings, Ceramics, Extractive & Mineral Related Industries, Paper, Printing and Wood sectors have a lower proportion of disabled employees than Scottish employers on average. The difference is most notable among employees that are DDA 4 disabled only. 1 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 Employee jobs do not include those who are self-employed. 4 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 Table 3.3: Disability profile; Employees within the footprint and the average for all Source: Annual Population Survey, 2009 Both DDA (current disability) and work-limiting disabled DDA disabled (current disability) only 4% 5% 3% 6% Work-limiting disabled only 3% 2% Not disabled 90% 87% 3.5 The age composition of the Building Products & Refractories, Coatings, Ceramics, Extractive & Mineral Related Industries, Paper, Printing and Wood sectors is slightly older than Scottish employers overall. A lower proportion of employees within these sectors are under 45 years of age, and subsequently a higher proportion are older than 45. Figure 3.2: Age profile of people in employment Source: Annual Population Survey, % 50% 40% 30% 20% 0% % 41% % 48% % 3.6 The pattern of occupations within the Building Products & Refractories, Coatings, Ceramics, Extractive & Mineral Related Industries, Paper, Printing and Wood sectors differs from that seen across Scottish employers in that there is a very high proportion of skilled trades, and process, plant and machine operatives occupations relative to other occupations. Within these sectors there are also high numbers of managers and senior officials, and very low proportions of professional occupations, sales and customer services and personal service occupations. Figure 3.3: Distribution of employees by occupation Source: Annual Population Survey, 2009 Skilled Trades occupations 11% Process, Plant and Machine Operatives Managers and Senior Officials Associate Professional and Technical Administrative and Secretarial Sales and Customer Service Personal Service occupations 0 1% 0% 7% 13% Elementary occupations 12% 9% 11% Professional 2% occupations 13% 8% 9% 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 (25%) and attracting new customers (19%) are predominant concerns for employers covered by. 15% 18% 25% 24% 5% 15% 20% 25% 30% 35% 4.1 As for all Scottish employers, 65% of employers covered by have recruited in the past two to three years. 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 6% of employers covered by. Skill shortage vacancies and hard-to-fill vacancies have potentially severe consequences for employers. Compared with other sectors, employers covered by are characterised by: A lower proportion of vacancies as a percentage of employment; A slightly lower proportion of hard-to-fill vacancies as a percentage of employment; A similar proportion of skill shortage vacancies as a percentage of employment; and A higher proportion of hard-to-fill vacancies as a percentage of vacancies. 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 Hard-to-fill vacancies as a % of vacancies 0.9% 1.9% 0.4% 0.7% 0.4% 0.3% 52.1% 35.2% Base all employers (=159, all =6,001), all employers with vacancies (=21, all =1,130) Modern Apprenticeships 4.3 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 higher awareness of MAs than Scottish employers overall, and are more 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 63% 52% 8% 5% 2% 4% Base all employers (=159, all =6,001) Qualifications sought from candidates 4.4 When recruiting over the past two to three years, 37% of all Scottish employers sought a particular qualification; by comparison, 36% of employers within the footprint sought a particular qualification from recruits. 4.5 For 21% of employers covered by, the most recent recruit was qualified to Scottish Highers level, this was also the case for Scottish employers overall. Compared to Scottish employers overall, a lower proportion of recruits to employers within the Proskills UK footprint were qualified to Degree Level or above. Table 4.3: Level of qualification held by last recruit Above Degree Level (Doctorate, Masters, Post Graduate Diploma / Certificate, SVQ 5) Degree Level (Degree, Diploma of Higher Education, SVQ 3 / 4) Scottish Highers / SVQ1 / 2 / A Levels / trade apprenticeship / Cert. of Higher Education 2% 3% 19% 27% 21% 21% Base all employers who have recruited in the last 2-3 years (=109, all =4,710) 04 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 about equally likely to experience skill gaps, with 14% reporting the problem. 5.2 Within the footprint, only 15% of employers experiencing skill gaps state that the skill gaps have a major impact on how their establishment performs, but 54% say they have a minor impact. Amongst employers for whom skill gaps have a major or minor impact, 58% cite increased operating and running costs as an impact, 57% cite difficulties meeting customer service objectives, and 46% cite delays developing new products or services and difficulties meeting required quality standards. Figure 5.1: The impact of skill gaps Increased operating / running costs Difficulties meeting customer service objectives Delays developing new products or services Difficulties meeting required quality standards 0 36% 46% 49% 46% 53% 58% 57% 63% 20% 30% 40% 50% 60% 70% 80% Base all employers for whom skill gaps have a major or minor impact (=22, all =980) 6.1 Employers covered by are marginally less likely to provide training for their employees than Scottish employers overall (59% compared with 61%). 6.2 Amongst employers covered by who had not provided training in the past 12 months, the most common reason for not doing so was that staff were already fully proficient (50%) followed by no training was necessary in the business (25%). 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; 54% in the Building Products & Refractories, Coatings, Ceramics, Extractive & Mineral Processing, Furniture, Furnishings & Interiors, Glass and Related Industries, Paper, Printing and Wood sectors would have done so. 6.4 Amongst employers within the footprint who would have provided more training, the biggest barrier was a lack of funds for training, and training being too expensive (68%). The second biggest barrier was being unable to spare staff time while they were on training (50%). These barriers reflect those faced across all. 6.5 Employers within the footprint who had provided training were most likely to have used private training providers and external consultants to deliver the training (80%), followed by staff on site (45%), and industry bodies or professional associations (40%). 6.6 The national training programme or scheme in which Building Products & Refractories, Coatings, Ceramics, Extractive & Mineral Processing, Furniture, Furnishings & Interiors, Glass and Related Industries, Paper, Printing and Wood sectors employers are most likely to participate is Skill Seekers (5%). 06 Skill gaps Workplace development 07

6 7.1 With regards to staff levels and recruitment, employers covered by appear to have been somewhat harder hit by the economic downturn than Scottish employers overall. Eighteen per cent (18%) of employees within the Building Products & Refractories, Coatings, Ceramics, Extractive & Mineral Processing, Furniture, Furnishings & Interiors, Glass and Related Industries, Paper, Printing and Wood sectors have recruited fewer young people (aged under 25) to their first job as a result of the economic downturn, compared with 13% across all. The number of staff employed overall has decreased as a result of the downturn for 35% of establishments within these sectors, compared with 21% of all. Figure 7.2: Impact of economic downturn on training Expenditure on training per employee Proportion of training provided by providers Decreased No change Increased 0 29% 59% 21% 64% 11% 26% 58% 19% 69% 14% 9% 20% 40% 60% 80% 100% 8.1 Compared with Scottish employers overall, employers covered by are more likely to have a business plan, sales and marketing plan and management accounts in place, but less likely to have a staff training plan. Table 8.1: Adoption of key business planning practices Business plan 67% 59% Management accounts 73% 68% Table 8.2: Use of different employment practices Arrangements for direct involvement of employees in decision making and problem solving Flexibility for employees to decide how their work is organised or carried out Explicit policy on equality / diversity in the workplace 76% 76% 74% 79% 62% 64% Figure 7.1: Impact of economic downturn on staff Number of young people recruited Number of staff Decreased No change Increased 0 18% 70% 7% 13% 74% 6% 35% 55% 21% 69% 9% 20% 40% 60% 80% 100% Base all employers who provide training (=104, all =4,557) Sales and marketing plan 46% 44% Staff training plan 48% 53% None of the above 13% 14% Base all employers (=159, all =6,001) 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. Formal dispute resolution procedures 59% 55% Use of part-time staff 45% 64% Formal staff performance review Use of temporary labour / contract staff Formal survey of employees views or opinions 45% 53% 43% 41% 38% 43% Quality Circles 37% 29% Incentive or performance related pay 36% 36% Base all employers (=159, all =6,001) 7.2 Amongst those who provide training for their employees, employers in the footprint are more likely to have made reductions to a variety of training related areas including expenditure on training per employee, the proportion of employees given training, the proportion of training provided by external providers, the emphasis placed on informal learning and the amount of training leading to official qualifications. With regards to the latter two areas, employers covered by were about equally likely to have made increases to these programs as they were to have made reductions. 8.3 Of the employment practices offered on site, the most common for employers within the footprint, as for all Scottish employers, is arrangements for direct involvement of employees in decision making and problem solving followed by flexibility for employees to decide how their work is organised or carried out. Use of part-time is less common among employers covered by than among Scottish employers overall, while Quality Circles 5 are more common. Profit sharing / share options / gain sharing for employees 18% 16% Base all employers (=159, all =6,001) 5 A Quality Circle is a volunteer group of employees who meet regularly to identify, analyse and resolve work-related problems. Quality Circles aim to improve the performance of organisations, and to motivate and enrich the work of employees. 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 9.2: SIC 2007 codes included in the footprint in SESS 2010 and this report SIC 2007 code (Continued) Table 9.2: SIC 2007 codes included in the footprint in SESS 2010 and this report SIC 2007 code (Continued) Table 9.2: SIC 2007 codes included in the footprint in SESS 2010 and this report SIC 2007 code 0510 Mining of hard coal 1812 Other printing 3101 Manufacture of office and shop furniture Table 9.1: Sample size of Scottish Employer Skills Survey by size band and all sectors (Number of establishments sampled) Proskills UK Total ,689 1,319 1, , Mining of lignite 0710 Mining of iron ores 0721 Mining of uranium and thorium ores 0729 Mining of other non-ferrous metal ores 0811 Quarrying of ornamental and building stone, limestone, gypsum, chalk and slate 0812 Operation of gravel and sand pits; mining of clays and kaolin 0891 Mining of chemical and fertiliser minerals 0892 Extraction of peat 1813 Pre-press and pre-media services 1814 Binding and related services 2030 Manufacture of paints, varnishes and similar coatings, printing ink and mastics 2311 Manufacture of flat glass 2312 Shaping and processing of flat glass 2313 Manufacture of hollow glass 2314 Manufacture of glass fibres 2319 Manufacture and processing of other glass, including technical glassware 3102 Manufacture of kitchen furniture 3103 Manufacture of mattresses 3109 Manufacture of other furniture 9524 Repair of furniture and home furnishings Table 9.3: SIC 2003 codes included in the Proskills UK footprint in SESS 2008 and the 2009 report SIC 2003 code 9.2 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. 9.3 Tables 9.2 and 9.3 show the Standard Industrial Classification (SIC) codes used to define the footprint for SESS 2010 and SESS The SIC 2007 code definitions are used for the sampling and weighting of SESS 2010 data, and are used throughout this report. 9.4 There are numerous differences in SIC codes between the 2003 and 2007 definitions involving reclassifications which are too numerous to be detailed here. Because this profile uses SIC 2007, whereas the 2009 profile used SIC 2003, direct comparisons are not possible and this profile does not attempt to identify trends. Readers wishing to draw comparisons between this profile and the 2009 profile are advised to bear in mind the considerable differences in the definitions and to exercise caution Extraction of salt 0899 Other mining and quarrying n.e.c Support activities for other mining and quarrying 1392 Manufacture of made-up textile articles, except apparel 1610 Sawmilling and planing of wood 1621 Manufacture of veneer sheets and wood-based panels 1622 Manufacture of assembled parquet floors 1623 Manufacture of other builders carpentry and joinery 1624 Manufacture of wooden containers 1629 Manufacture of other products of wood; manufacture of articles of cork, straw and plaiting materials 1711 Manufacture of pulp 1712 Manufacture of paper and paperboard 1721 Manufacture of corrugated paper and paperboard and of containers of paper and paperboard 1722 Manufacture of household and sanitary goods and of toilet requisites 1723 Manufacture of paper stationery 1724 Manufacture of wallpaper 1729 Manufacture of other articles of paper and paperboard n.e.c Printing of newspapers 2320 Manufacture of refractory products 2331 Manufacture of ceramic tiles and flags 2332 Manufacture of bricks, tiles and construction products, in baked clay 2341 Manufacture of ceramic household and ornamental articles 2342 Manufacture of ceramic sanitary fixtures 2343 Manufacture of ceramic insulators and insulating fittings 2344 Manufacture of other technical ceramic products 2349 Manufacture of other ceramic products 2351 Manufacture of cement 2352 Manufacture of lime and plaster 2361 Manufacture of concrete products for construction purposes 2362 Manufacture of plaster products for construction purposes 2363 Manufacture of ready-mixed concrete 2364 Manufacture of mortars 2365 Manufacture of fibre cement 2369 Manufacture of other articles of concrete, plaster and cement 2370 Cutting, shaping and finishing of stone 2391 Production of abrasive products 2399 Manufacture of other non-metallic mineral products n.e.c Mining and agglomeration of hard coal 1020 Mining and agglomeration of lignite 1030 Mining and agglomeration of peat 1200 Mining of uranium and thorium ores 1310 Mining of iron ores 1320 Mining of non-ferrous metal ores, except uranium and thorium ores 1411 Quarrying of stone for construction 1412 Quarrying of limestone, gypsum and chalk 1413 Quarrying of slate 1421 Operation of gravel and sand pits 1422 Mining of clays and kaolin 1430 Mining of chemicals and fertiliser minerals 1440 Production of salt 1450 Other mining and quarrying not elsewhere classified 2040 Manufacture of wooden containers 2051 Manufacture of other products of wood 2111 Manufacture of pulp 2112 Manufacture of paper and cardboard 2121 Manufacture of corrugated paper and paperboard and of containers of paper and paperboard 2122 Manufacture of household and sanitary goods and of toilet requisites 2123 Manufacture of paper stationery 10 Appendices Appendices 11

8 (Continued) Table 9.3: SIC 2003 codes included in the Proskills UK footprint in SESS 2008 and the 2009 report (Continued) Table 9.3: SIC 2003 codes included in the Proskills UK footprint in SESS 2008 and the 2009 report SIC 2003 code SIC 2003 code 2124 Manufacture of wallpaper 2125 Manufacture of other articles of paper and paperboard not elsewhere classified 2221 Printing of newspapers 2222 Printing not elsewhere classified 2223 Bookbinding 2224 Pre-press activities 2225 Ancillary operations related to printing 2430 Manufacture of paints, varnishes and similar coatings, printing ink and mastics 2611 Manufacture of flat glass 2612 Shaping and processing of flat glass 2613 Manufacture of hollow glass 2614 Manufacture of glass fibres 2615 Manufacture and processing of other glass including technical glassware 2621 Manufacture of ceramic household and ornamental articles 2622 Manufacture of ceramic sanitary fixtures 2623 Manufacture of ceramic insulators and insulated fittings 2624 Manufacture of other technical ceramic products 2625 Manufacture of other ceramic products 2626 Manufacture of refractory ceramic products 2630 Manufacture of ceramic tiles and flags 2640 Manufacture of bricks, tiles and construction products, baked in clay 2651 Manufacture of cement 2652 Manufacture of lime 2653 Manufacture of plaster 2661 Manufacture of concrete products for construction purposes 2662 Manufacture of plaster products for construction purposes 2663 Manufacture of ready-mixed concrete 2664 Manufacture of mortars 2665 Manufacture of fibre cement 2666 Manufacture of other articles of concrete, plaster and cement 2670 Cutting, shaping and finishing of stone 2681 Production of abrasive products 2682 Manufacture of other non-metallic mineral products not elsewhere classified 3611 Manufacture of chairs and seats 3612 Manufacture of other office and shop furniture 3613 Manufacture of other kitchen furniture 3614 Manufacture of other furniture 3615 Manufacture of mattresses 12 Appendices

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