CBI Employment Trends Survey 2007

1. CBIEmployment Trends Survey2007 Cancer Research 7th December 2007

2. Overview 10th Report covering the Public and Private Sectors – research carried out in May 2007 • 507 respondents – 5% response • Respondents employ 1.1 million people • Wide spread of responses across sectors • 42% responses from service sector • 27% responses from manufacturing • 19% responses from public sector Cancer Research 7th December 2007

3. Overview Respondents by company size • 11% - Less than 50 people • 16% - 50 to 99 people • 22% - 200 to 499 people • 44% - 500 to 4,999 people • 7% - 5,000 plus people Cancer Research 7th December 2007

4. Key Findings • People management is central to business performance • Employers are concerned about the change in Labour leadership • Labour market flexibility is a key business priority • Low confidence in the employment tribunal system Cancer Research 7th December 2007

5. Key Findings • Employers are committed to diversity in the workplace • Young people must leave education with basic and employability skills • Employers see training as a priority, with an increased need for higher skills Cancer Research 7th December 2007

6. Getting the best out of people • Effective people management seen as the most important factor for business competitiveness • Good management skills seen as the most important HR factor at present and in the future • This is closely followed by multi-skilled teams and skills utilisation Cancer Research 7th December 2007

7. Flexibility is a key business priority • Flexible working is offered by majority of respondents. At least one option and two thirds offered at least three • Requests for flexibility are very high but only half respondents give everyone this as a right Cancer Research 7th December 2007

8. Flexibility is a key business priority • Most respondents experience a positive impact especially in terms of employee relations, recruitment and retention BUT growing numbers see a negative impact on labour costs • EU legislation an issue. Respondents feel that individual opt out from the Working Time Directive is crucial Cancer Research 7th December 2007

9. Flexibility is a key business priority • Agency workers provide flexibility which would be undermined by EU action • Economic migration eases skills and labour shortages • Respondents are committed to improving the integration of migrant workers Cancer Research 7th December 2007

10. Confidence in ET system remains low • Half of the respondents see it as ineffective in handling disputes • Firms end up settling more than three quarter of claims DESPITE advice that they are likely to win • Nearly half of respondents believe that the number of weak and vexatious claims has increased in the last year • Acas is doing a good job Cancer Research 7th December 2007

11. Commitment to diversity • Almost all respondents are taking action • A third take positive action to improve equality but many are confused about the difference between positive action and positive discrimination • Commitment to community cohesion – half support local community events Cancer Research 7th December 2007

12. Commitment to diversity • Lack of applicants from disadvantaged groups remains an obstacle to achieving a more diverse workforce for two thirds of respondents • Age legislation has led employers to review retirement, recruitment and length of service benefits • Over a quarter of respondents have conducted an equal pay audit • 46% of larger firms have done this Cancer Research 7th December 2007

13. Young people’s skills • Nearly nine out of ten respondents believe that the government’s top priority should be to ensure young people leave school with basic literacy and numeracy • Over half of the respondents are dissatisfied with these skills • Young people have excellent IT skills and are confident using these at work Cancer Research 7th December 2007

14. Young people’s skills • Half of respondents are concerned about employability skills and just over 25% are dissatisfied with these skills in graduates • A third of respondents identified that the government should increase the number of graduates in science, technology, engineering and maths as a top priority Cancer Research 7th December 2007

15. Training is a priority • Majority of employers provide on job training • Over half of respondents are keen to accredit their own in-house training as qualifications • Greatest demand from respondents is for the higher level and leadership skills. These are seen as key drivers of future competitiveness Cancer Research 7th December 2007

16. What do you think? Cancer Research 7th December 2007