The Work Programme: On the frontline of the employment and skills agenda

1. The Work Programme: On the frontline of the employment and skills agenda Sustainable Employment through Skills Conference Dr Vincent Pattison, Ingeus Centre for Policy and Research vpattison@ingeus.co.uk Wednesday 14th December

2. Who we are Ingeus has 10 years experience in the UK welfare to work market and in April 2011 became a Prime Provider of the Work Programme in a maximum 7 UK regions and an end-to-end subcontractor in the West Midlands.

3. Integrating employment and skills is one of the key policy foci as a means of tackling many of the UK’s current economic, social and political issues: Political Imperative: Delivering more for less Disconnect between supply and demand What are the drivers of this policy shift? Skills for Sustainable Growth Emergence of new career models Tackle social and economic mobility / inequality - impact of low skills Labour market polarisation Rising unemployment Increased use of migrant workers Youth Unemployment at 1m

4. Key figures recognise the importance of the Work Programme as a vehicle through which to practically integrate employment and skills for economic growth and social mobility “Skills are closely tied to the welfare agenda. The Work Programme needs to be an authentic interface for the skills system. Co-operation is required to ensure there is an authentic skills and training offer”. John Hayes, October 2011 “Skills training is a key part of the employment picture … We are committed to integrated employment and skills provision”. Chris Grayling, June 2011 Integrating employment and skills on the Work Programme "Integration of employment and skills, long talked about, now becomes critically important. The drivers pushing integration are now absolutely critical for the industry as a whole”. Dave Simmonds, June 2011 “It is essential that those without employment are helped to gain the right skills to find sustainable work with the prospect of progress”. BIS, 2010: 8

5. EVIDENCE HEALTH WARNING! • Mixed evidence base on what works. • Why? • Skills development part of a package of active measures – not a silver bullet that can be viewed in isolation; • Multifaceted provision – difficult to separate cause and effect; • Multiple demand side factors; • BUT skills development has a key role in enabling an individual to enter, sustain and progress in the labour market. What works to help people sustain work and progress? Research and practical experience demonstrate important best practice principles which drives our approach on programme and once a client moves into employment.

6. The seeds of an individual’s sustainability and progression are sown on programme through both in-house and partner interventions and by working with employers. • Effective dynamic diagnostics to understand need: job goals? skills issues? • Action Planning: Personalised skills plan which sequences interventions; co-produces the journey to sustainable employment; and meets the clients needs; • Advisor contact: to review progress; sets expectations and attitudes; develop self-efficacy through fields of fascination; and support job search; • On programme activityto practically apply learning; • Managed transition to employment: co-produce P/CDP journey. • Approach underpinned by local employer engagement: • Ensure supply side skills interventions commensurate with LLM demand; • Involve employers in intervention design – what matters to them? • Understand LLM dynamics for real time careers advice. What works on programme?

7. Skills development in work is one important way our clients can sustain and progress. This is facilitated through tailored in-work support and employer engagement as part of a tripartite relationship in order to meet the challenge of creating progression strategies for entry level jobs through skills development. • In-work advisor support. Maintain contact to: • Update P/CDP; • Discuss skills development options and help access flexible provision; • Maintain motivation and self-efficacy for life long approach; • Facilitate future labour market transitions. • Employer engagement: • It’s not just about client skills! • Employer business case for skills development: our sustainability their retention; • Employer buy-in to client P/CDP to develop self-efficacy and monitor progress; • Advise on local training and skills development options. What works once a client is in work?

8. With an increased focus on integrating employment and skills on the Work Programme to move long term unemployed people into sustainable employment it is essential we share best practice. • From our experience we would argue that any skills development must be: • One key element as part of a holistic approach to employability; • Personalised based on client need through a dynamic diagnostic process; • Sequenced to build self-efficacy, motivation and aspiration; • Commensurate with needs of LLM and be vocationally grounded; • Involve employers in the design where possible; • Informed by real time careers advice based on current LLM demand; • Enable applied learning in different contexts; • Co-constructed as part of a longer term vocational pathway both on programme and in-work; • Be grounded in a work first plus approach; • A continual process once in work to enable sustained employment and future career development. Concluding comments

9. The evolution in welfare to work towards sustainable employment outcomes has sharpened the focus around integrating employment and skills The context: Welfare and skills UK welfare dilemma: “Work first” v “Train first” approaches Work Programme – work first plus approach integrating employment and skills as part of a longer term personalised client journey from job seeking to lasting employment which equips unemployed people with the vocationally grounded skills to enable future career and life transitions.

10. Meaning what? Poor employability skills, basic skills, vocational skills, prior experience, low qualifications • Clear evidence employment prospects severely restricted for those with no/minimal skills • More likely to be in jobs with have less scope for progression or development opportunities • Enables managed labour market transitions • Links to lifetime socio-economic disadvantage • Inequalities in life chances and experiences • In recession employers more selective and labour market more competitive – out clients need to compete • Less likely to remain in the labour market Why are low skills important?

11. The evolution in welfare to work from payment by process/input to payment by outcomes has sharpened the focus around integrating employment and skills • Contract design and performance measures drive delivery models; • New Deal: highly prescriptive, payment at point of job entry; • Recent contracts: some focus on short term sustainability; • UK welfare dilemma: work first vs train first approaches – impact of opportunity costs; • Work Programme: long term sustainability outcomes increased focus on the role of skills to reduce excessive churn and improve employment sustainability; • Work first plus - focus on integrating employment and skills as part of a longer term personalised client journey from job seeking to lasting employment; • Moving beyond a simple job match towards an individualised and holistic service which empowers clients by equipping them with the vocationally grounded skills to enable future career and life transitions. The context: Welfare and Skills

12. Integrating employment and skills is one of the key policy foci as a means of tackling many of the UK’s current economic, social and political issues: • Political imperative: delivering more for less; • Global skills leader: desire to up skill Britain for future economic growth; • Social and economic mobility/inequality impacts of low skills over the life course; • Changing labour market and emergence of new career models - lateral and vertical progression and intra- as well as inter-organisational moves. • Processes of polarisation in the labour market – hourglass economy, flattening organisational hierarchies and labour market segmentation; • Rising unemployment levels – cyclical and structural impacts on human capital/skills profiles - low skilled typically hardest hit; • Youth unemployment at 1m – concerns around long term scarring; • Increased use of migrant workers by UK business; • Disconnect between supply side interventions and demand side needs. Why? What are the drivers of this policy shift

13. Up skilling does not provide a magic bullet for labour market attachment, sustainability or progression amongst long term unemployed people but research and practical experience demonstrate important best practice principles which drives our approach on programme and once a client moves into employment What works to help people sustain work and progress? • A few caveats: • Skills part of a package of active measures • Mixed evidence base on links between skills training and sustainable employment outcomes because people different, skills not magic bullet etc. - This is due in substantial part to the different circumstances facing workless individuals (including health and caring responsibilities), provision which is often multifaceted and difficult to separate (including, for example, information, advice and guidance) and varying demand-side characteristics that affect the quantity and quality of jobs available. • DWP (2007) – training likely to have positive effect on individual sustainability and progression over five year period • Skills one element of the story • What works for one person won’t work for another - skills are often part of a cocktail of factors which come together to influence successful transition. Skills can’t be viewed in isolation. Programmes which rely largely or wholly on single „magic bullet‟ interventions are unlikely to adequately address the needs of substantial numbers of potential jobseekers within workless communities. No one size fits all • Skills are one, albeit important issue, for unemployed jobseekers to support transition and progression in work. • The evidence suggests that skills are not a „magic bullet‟ however they have a key role to play alongside other interventions (e.g. information, advice and guidance, health services) to support the transition to and progression in work. • Focus on employability skills: the foundations upon which sustainable employment and successful labour market and career transitions occur;

14. The seeds of an individual’s sustainability and progression are sown on programme through both in-house and partner interventions and by working with employers. • – developing skills, building self efficacy. Susdtainability support needs to be provided consistently through pre-employment, early employment and beyond: • Effective Intensive diagnostics – understanding different types of skills needs (functional, employability, technical) – what in skills terms is preventing this person from entering employment. Aslo about understanding what skills a client has, how they understand their own skills and how they discuss these experiences – holistic assessment. Employability skills are difficult to determine using profiling mechanisms because they are reliant on self reporting at one point in time; Use of initial and on going profiling assessment along with situational analysis with specialists, in group situations and from employer pre-screens; • Action plans – personalised skills plan with work first focus – enables sequencing of skills deficit interventions – often multiple interventions required – some will be specific vocational needs others will be more general self-efficacy and employability skills needs; meet learner needs; build self efficacy, aspiration, develop motivation – raised through use of IAG based on current LLMI – educate clients about benefits of gaining skills Workshops/employer pre-screens enable practical application of skills plus use of high quality work experience • Managed transition to employment – skills planning, mapping career path • On programme approach underpinned by work with employers: • Employer demand and engagement are central to the successful transition from benefits into work with an opportunity for progression linked to specific industry need. • Supply side interventions driven by local labour market demand and involve employers in design • Understanding of sector dynamics to provide smooth transition and career routeway/pathway for client – enable to see bigger picture and manage expectations – IAG to manage contemoporary career tranistions – intra and inter-company/sector etc. – focus particularly on employability skills because foundations of job entry and employment sustainability. Many companies will train up clients – just looking for right attitude and basic skills in place – get this from employer discussions • internal labour markets and progression pathways which support lateral (between and across sectors) and vertical (where workers move towards higher levels) progression can support recruitment, retention and progression – help clients understand demand and that transitions in the LM are important as progression not always possible withion a company – focus on transferable skills What works on programme to help unemployed clients sustain work and progress?

15. U • Many clients move into entry level jobs – challenge is to help co-construct exit strategies through promotion of training, development and progression opportunities • In-work support for client – source flexible skills options • We argue that there is a need for an integrated approach that binds work and skills together as a lifelong process – keep engaging clients in discussion • Affordable, accessible and relevant • Work with employers • Not just about client skills but employer skills as they determine the terms and conditions of employment and how work is organised, including the balance of temporary and permanent workers, skill requirements and progression structures through their human resource management policies and practices. The support and active involvement of line managers is critical for the retention and development of workers at all levels. EST work with employers and advise on local training opportunities and funding. • Employers (particularly line managers) and intermediaries (particularly customer facing advisors) have a key role to play in fostering self-efficacy among those at risk of labour market disadvantage. Employers and supply side intermediaries need to develop an environment in which low skilled workers can develop the frameworks and career assets (e.g. confidence, skills and social networks) necessary to progress in the labour market. • Educate employers – our sustainability is their progression – business case for investing in workers • The development of a framework (Personal/Career Development Plan) to integrate learning and employment (and other related services) providing an opportunity to raise aspirations and monitor progress would appear to be an essential ingredient of an effective service. • EST encourage employers to engage in succession planning What works to help in work clients sustain and progress?