RECRUITMENT AND HARD TO FILL VACANCIES

Transcription

1 Appendix B Skills Gaps and Shortages National Employer Survey (NESS) West of England September 2010 RECRUITMENT AND HARD TO FILL VACANCIES Overall levels of vacancies In line with the fact that the country was in recession at the time the 2009 data was collected, there were substantial decreases in recruitment activity compared with earlier surveys. At the time of interview, just 12% of West of England employers reported having vacancies, 3% had hard-to-fill vacancies and most of these (2% of all employers) also reported having skill-shortage vacancies (i.e. vacancies proving hard-to-fill because of a lack of the required skills, qualifications and/or experience among applicants). The sub-region is broadly comparable to England as a whole on all three measures. The absolute numbers of vacancies, hard-to-fill vacancies (HtFVs) and skill-shortage vacancies (SSVs) were all lower in 2009 compared to 2007 (see Table below). The number of vacancies at the time of the survey fell from around 13,300 in 2007 to around in The number of skillshortage vacancies also fell, with the number reported for NESS 2009 (approximately 750 in the West of England) was less than half the number reported in The proportion of vacancies that are hard-to-fill (13% in 2009) has continued to fall, as has the proportion of vacancies which are hard-to-fill because of skill shortages (9% in 2009, lower than the 16% seen regionally and nationally). While there are fewer vacancies in 2009 than in previous NESS studies, and a smaller proportion of these vacancies are hard-to-fill, where they are hard-to-fill skill shortages continue to be a key contributing factor. For almost three-quarters of hard-to-fill vacancies (72% across the sub-region) skill shortages contributed to the difficulty filling the position, higher than the level found in 2007 (46%).

2 Appendix B Skills Gaps and Shortages Table:Trends in the number of vacancies and recruitment difficulties West of England South West England Unweighted base (employers) 1,518 1,532 8,454 8,698 79,018 79,152 Weighted base (employers) 29,307 30, , ,522 1,451,507 1,492,367 Proportion of employers reporting at least one vacancy 20% 12% 17% 12% 18% 12% Proportion of employers reporting at least one HtFV 6% 3% 7% 4% 7% 3% Proportion of employers reporting at least one SSV 3% 2% 4% 3% 5% 3% Vacancies as proportion of all employment 3% 2% 2.7% 1.7% 2.8% 1.7% HtFVs as a proportion of employment 1% 0% 0.9% 0.4% 0.8% 0.4% HtFVs as a proportion of vacancies 30% 13% 35% 22% 30% 22% SSVs as a proportion of employment 0% 0% 1% 0% 0.6% 0.3% SSVs as a proportion of vacancies 14% 9% 22% 16% 21% 16% SSVs as a proportion of HtFVs 46% 72% 62% 72% 71% 74% Total employment 494, ,837 2,185,358 2,278,506 22,259,625 22,976,750 Number of vacancies 13,315 8,066 58,582 38, , ,675 Number of HtFVs 3,984 1,045 20,448 8, ,475 85,425 Number of SSVs 1, ,750 6, ,000 63,100 Source: NESS 2007 & 2009 Note: sample sizes insufficient to give data for individual local authority districts.

3 Appendix B Skills Gaps and Shortages SKILLS GAPS The previous section examined difficulties experienced when recruiting staff, in particular difficulties relating to skill shortages amongst applicants. This section discusses internal skills gaps among the existing workforce cases where staff are felt not to be fully proficient at their job. Incidence and number of skills gaps Although the vast majority of employers regard all staff as fully proficient, in 2009 more than one in five West of England employers (22% - the same as regionally) reported that they employed staff whom they considered not fully proficient. Around 47,800 workers (9% of the total workforce in the sub-region) were described as having skills gaps, higher than the national average of 7%, but the same as the regional average. The proportion of establishments reporting that they employ staff lacking proficiency has risen for the second successive NESS series, returning towards 2003 levels having previously fallen to a low in The proportion of staff that lack proficiency has also increased, from 5% in 2007 to 9% in Table: Skills gaps, West of England, Percentage of employers with a skills gap Percentage of staff described as having a 5 9 skills gap Number of staff described as having a skills gap 27,100 47,800 Source: NESS Data on skills gaps rounded to nearest 100. Skills gaps by sector Amongst SIC sectors, the incidence of skills gaps is highest in Hotels and Catering (where 40% of employers in the West of England have at least one member of staff who is not fully proficient, Health / Social Work (28%), Manufacturing (27%), Education (24%) and Retail / Wholesale and Business Services (both 22%). The only significant difference with the wider regional picture is the higher incidence of skills gaps in the West's manufacturing sector (27% compared to 22% for the South West as a whole). The density of skills gaps in Construction is higher than average (19% compared to the all-sector average of 9%) and its share of all skills gaps (10% of the total) is considerably higher than its share of employment (5%). The table below the incidence, number, density and distribution of skills gaps by SIC sector. The final two columns of data show the profile of skills gaps against employment (where sample sizes are sufficient to allow reasonably reliable estimates to be made.

4 Appendix B Skills Gaps and Shortages Table: Incidence, number, density and distribution of skills gaps by SIC sector, West of England, 2009 Unweighted base % of employers with any skills gaps Number of staff not fully proficient (i.e. number of skills gaps) % of staff reported as having skills gaps Share of employment % Share of all skills gaps % Overall 1,532 22% 47,800 9% 100% 100% SIC Sector Agriculture & fishing * * * * * * Mining & quarrying * * * * * * Manufacturing % 5,600 10% 10% 12% Electicity, gas and water supply * * * * * * Construction % 5,000 19% 5% 10% Retail and wholesale % 8,500 11% 15% 18% Hotels and restaurants % 3,600 14% 5% 8% Transport, storage & communication 84 20% * * 6% * Financial intermediation 59 15% * * 16% * Business services % * * 16% * Public admin & defence * * * * 4% * Education 96 24% 4,200 8% 11% 9% Health and social work % 4,100 14% 6% 9% Other services % * * 6% * Source: NESS 2009 Note: * denotes data suppressed due to small sample sizes

5 Appendix B Skills Gaps and Shortages Reasons for skills gaps As in previous years, a lack of experience and staff having been recently recruited was by far the most common cause of skills gaps, with 84% of employers with a skills gaps citing this issue (see Figure below). This in itself isn't an issue that state interventions can address, although the 20% of employers who believed that a failure to train and develop staff is something that the public sector can address through such programmes as Train to Gain and Investors in People. Two other factors relating to recruitment recruitment problems and high staff turnover are also quite common causes (cited by 7% and 6% of employers with skills gaps respectively). In both cases the underlying implication is that employers have had to fill vacancies with people with less experience and/or less skills than they would ideally have liked. A lack of staff motivation (20%), and the failure of staff to keep up with change (17%) were also common causes of skills gaps. Over recent years, the hierarchy of causes of skills gaps has remained the same, as observed in each of the previous NESS survey. The only notable difference between the West of England and the wider region is the higher proportion of employers who cited lack of experience as a cause of skills gaps. Figure: Main causes of skills gaps, West of England vs South West, 2009 Lack of experience or their being recently recruited Staff lack motivation Failure to train and develop staff Inability of workforce to keep up with change Recruitment problems High staff turnover 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% South West West of England Source: NESS 2009 The nature of skills gaps When describing the skills lacking among their staff, employers in the West of England follow a very similar pattern to the wider region, generally focusing on technical, practical or job-specific skills: more than two thirds (69%) of employers with skills gaps cited a lack of these skills. Employers are also

6 relatively likely to report skills gaps for customer-handling and team working, both of which are considered to be lacking in 35-40% of employers with skills gaps (see Figure belowfigure). Other soft, generic skills such as oral communication and problem-solving skills were the next most commonly mentioned (both around 35% of employers. Less common, though still found in at least 25% of cases where staff lacked proficiency, were insufficient management skills (35%), general IT user skills (29%) and written communication skills (26%). Clearly gaps in regard to managerial skills have particular potential to impact on business performance and growth, and this is one area where the West of England does appear to have a greater need for improvement than across the South West as a whole. Figure: Skills in need of improving, West of England vs South West, 2009 Technical, practical or job specific Customer handling Management Team working Oral communication Problem solving General IT user Written communication 0% 10% 20% 30% 40% 50% 60% 70% 80% South West West of England Source: NESS 2009 The impact of skills gaps An increased workload for other staff was by far the most common negative impact experienced as a result of staff having skills gaps (reported by 48% of the West's employers with skills gaps, equivalent to 10% of all employers - see Figure below). Increased operating costs, difficulties meeting quality standards, and difficulties introducing new working practices were the next most common impacts, each reported by 20-25% of employers with skills gaps. However, over 30% of employers with skills gaps said they were not having any particular negative impact on the business. 6

7 Appendix B Skills Gaps and Shortages Figure 1: Impact of Skills Gaps, West of England vs South West, 2009 Increase workload for other staff No particular problems / None of the above Increase operating costs Have difficulties meeting quality standards Have difficulties introducing new working practices Delay developing new products or services Lose business or orders to competitors Outsource work 0% 10% 20% 30% 40% 50% 60% South West West of England Source: NESS 2009 UK Skills Gaps The larger dataset provided by national employer surveys provides additional and more credible information than is available simply through disaggregation to local level. The following table shows the skills priorities across the UK identified by UKCES in March Occupation and/or skills Corporate Managers across many sectors Managers and professional with computing and software skills Health & social care professionals Science and technology professionals Teaching and research professionals Level Key sectors, Industries or specialisation 4+ Retail, business services, computing, digital media, finance and professional services, health and social care, education, public administration and hospitality 4+ Especially in harnessing the potential of new media, effectively delivering multi-platform content, successful operation of networks, exploitation of broader ICTs in manufacturing, and in the service sectors 4+ Medical specialisms such as audiological medicine, genitourinary medicine, haematology, paediatric surgery, Pharmacists, Qualified social workers 4+ Pharmaceutical and medical technology industries, Traditional and advanced manufacturing, Low carbon and environmental sciences - with a wide range of specialisms including biology, chemistry, physics, mathematics and statistics 4+ Across further and higher education, especially teacher educators. Major requirements in all science, technology, engineering and Skills Gaps and Shortages 7

8 Occupation and/or skills Health and social care associate professionals Associate professional and technical roles in manufacturing Skilled trades in construction Care assistants, esp care for children and the aged Customer service roles in retail and hospitality Procurement commissioning and financial mngment skills Innovation skills in medical/healthcare markets Financial services senior managers Intellectual property and data security management Level Key sectors, Industries or specialisation maths areas, and an emerging need for multi-disciplinary teachers and researchers across scientific, technical and business areas. 3+ Many areas of nursing, including operating theatres, neonatal, and intensive care units. Many areas of therapeutic care 3+ Widespread and extensive shortages in oil, gas, electricity, nuclear, chemicals, pharmaceuticals, automotive, engineering and broadcasting 3 Persistent and increasing shortages for fully qualified craftsmen in building, electrical trades, plumbing, joinery, heating, ventilation and air-conditioning, together with specialist skills in prefabrication construction, cross-trade skills and specialist sub-skills (e.g. roofing) 2-3 Persistent and increasing shortages of trained care assistants, including greater understanding of ICT to use modern diagnostic systems, and support people using assisted living technologies. 2-3 Potential future shortages of scale across most parts of the service sector, including retailing, after-service and maintenance roles, especially related to the manufacturing and digital economy sectors, plus the hospitality, tourism and leisure sectors 3-4 Across a range of private sector industries, and key parts of central and local government 4 Management skills necessary to develop innovation processes to apply existing products for new products and services to the medical and healthcare markets 4 Within financial services sector, improved risk management, skills, ethics and influencing skills for senior managers 4 Particularly in the digital economy and advanced manufacturing, the ability to commercialise user-generated innovations and develop new revenue stream through the exploitation of intellectual property Food technologists 4+ For the food manufacturing and processing industries, and parts of the biotechnology sector, to safeguard quantity and quality of food supplies Urban planners and actuaries Science and engineering professionals and technicians 4+ For the professional and financial services sectors demand is relatively low, but lead time is long 4+ Scientists and engineers with specialist expertise in low carbon energy generation for large scale projects in the engineering construction sector and energy generation industries Chartered civil /mechanical engineers 4+ For large scale national and international construction projects in the engineering construction sector Investment Advisers 4 In the financial services sector, roles now require a Level 4 qualification sufficient supply is essential to strengthen process, improve service delivery, and restore trust in the sector. Associate professional and technical roles, and skilled trades, in many sectors Change managers with staff engagement skills 3-4 These include chefs, graphic designers, para-professional roles in the public sector, especially the health sector. Also advice workers, counsellors and community development workers for victims of crime or substance abuse 4 Managers in sectors affected by recession or public spending cuts, to support a process of successful change to improve efficiency and effectiveness, and retain staff engagement through a period of substantive change Sports coaches 3-4 Demand is increasing in response to increased interest in active leisure pursuits stimulated by the Olympics, and required to support a national drive to improve health and wellbeing Continued demand for low skilled jobs 2 The Commission expects that up to 25% of jobs will still require only relatively low skills (though level 2 will increasing become 8

9 Appendix B Skills Gaps and Shortages Occupation and/or skills Level Key sectors, Industries or specialisation the norm) in retail, hospitality and care sectors Skills Gaps and Shortages 9

10 UP-SKILLING New questions were added to the 2009 survey on the subject of upskilling, which refers to the process of increasing an individual s skills or knowledge. Employers were asked if any of their staff would require new skills or training over the next 12 months for a variety of reasons including keeping up-todate with legislative requirements, or as a result of the development of new products/services. More than two thirds (69%) of the West of England's employers expected that at least some of their staff would need to acquire new skills or knowledge over the next 12 months, the same level as the national average of 69%. This is much higher than the proportion of employers identifying current skills gaps among their staff (22% in the West). Although this may reflect fast changing skill needs, where current skill levels may be deemed sufficient but these skills will become outdated over a period as s short as a year), it is more likely to reflect that for many employers, staff that they classify as proficient still have to improve their skills and knowledge. A variety of reasons for the need to upskill were put to employers, covering both external and internal factors. Between 40-50% of all employers in the West mentioned a need to upskill because of new legislative or regulatory requirements (47%), the development of new products and services (44%), or the introduction of either new technologies/equipment (44%). The introduction of new working practices was slightly less common (39%), while a similar proportion felt that the need to upskill was a result of competitive pressure (38%). New legislative or regulatory requirements 47% The introduction of new technologies or equipment 44% The development of new products or services 44% The introduction of new working practices 39% Increased competitive pressure 38% Occupation most affected by the need for upskilling Employers anticipating the need for staff to upskill in the forthcoming year were asked to identify which single occupation would be most affected. By far the most common occupation reported was managerial staff, with 44% of those employers seeing a need for upskilling among managerial employees. Skilled trades and sales / customer services staff was the next most likely occupations needing to upskill, both reported by 11% of employers. All other occupational groups were mentioned by less than 10% of employers identifying the need for staff to upskill. The Figure below shows that the West of England follows an identical pattern to the South West as a whole. 10

11 Appendix B Skills Gaps and Shortages Figure 2: Single occupation most affected by need to upskill over the next 12 months, West of England vs South West, % 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% Source: NESS 2009 Skills that need improving or updating Employers who identified the need to upskill at were then asked which types of skills would need to be improved amongst the occupation that they felt would be most affected by the need for upskilling. Across all occupations, the skills that are most likely to need improving or updating in relation to upskilling were technical, practical and job-specific skills, mentioned by 68% of employers with an upskilling need. Several other skill areas were each mentioned by 25-35% of employers needing to upskill staff in the next 12 months: General IT user skills (36%) Management skills (33%) Customer handling skills (32%) Team working skills (28%) Problem solving skills (28%) Skills Gaps and Shortages 11