Westminster City Council Business Survey

1. Westminster City Council Business Survey • March 2019

2. Methodology and Sample • 227 Business decision-makers with businesses based in Westminster • Online • 2nd November 2018 – 31st January 2019 • Data were not weighted • Throughout, this symbol refers to a comparison with the London Councils / LCCI London Business 1000 survey 2018 or the CBI / Pearson education and skills annual report 2018. It is important to note that these comparisons are only indicative due to sample composition, timings, and other variables • * Indicates a question with a low base size, and results are indicative only

3. Recruitment, skills and training • Section 1

4. Recruitment practices, and skills gaps In which of the following categories, if any, has your business recruited or tried to recruit staff in the last 12 months? • This is consistent with findings from the Pearson / CBI Education and Skills report, which found that businesses are expecting the greatest growth at the higher end of the skills spectrum, with a greater need for leadership and management skills. • The London Councils / LCCI London Business 1000 survey found that of those recruiting, the majority (51%) were hiring for skilled manual/technical roles, followed by professional/managerial positions (43%). • Looking at customer and sales skills, these are more likely to be cited in businesses in the Retail (31%) and accommodation / food services / arts, entertainment, recreation and other services (39%) • In Westminster, the job market is still largely focused on skilled roles, although some soft skills are still seen to be lacking • Q1. Has your business recruited or tried to recruit for any positions over the last 12 months? Base: All respondents (n=227). Q2. In which of the following categories, if any, has your business recruited or tried to recruit staff in the last 12 months? Base: All those who have recruited or tried to recruit in the last 12 months (n=184). Q7. Which of the following, if any, would you say are the main types of skills lacking among your current workforce? Base: All respondents (n=227) Which of the following, if any, would you say are the main types of skills lacking among your current workforce?(Showing % for top 7)

5. Difficulties recruiting • Small businesses (1-49 employees) that recruited in the last 12 months were more likely than large businesses (over 250 employees) to report having no difficulties recruiting staff (42% and 16% respectively). • This is consistent with the Pearson / CBI Education and Skills report, which found that firms are finding it increasingly difficult to recruit people with the right levels and mix of skills to fill vacancies. • Furthermore, the London Councils / LCCI London Business 1000 survey found that, of those recruiting, 59% say they encountered difficulties – with more than a third saying that applicants lacked technical ability (51%), that applicants lacked sufficient experience (39%) and that there were a low number of applicants (36%). • Two thirds of those recruiting had difficulty, largely due to a low number of applicants, or a lack of experience /skills • Q4. Did you have any difficulties recruiting for roles at your business in the past 12 months? Base: All those who have recruited or tried to recruit in the last 12 months; (n=184). Q6. Which of the following, if any, do you think would make it easier for business to recruit new staff? Base: All those who have faced difficulties recruiting in the last 12 months (n=121) Which of the following, if any, do you think would make it easier for your business to recruit new staff?(Showing % ranking in top three)

6. Developing skills • This is consistent with findings from the CBI / Pearson Education and Skills report, that: • More than four in five businesses will be maintaining or increasing their investment in staff training • Nine in ten anticipate upskilling employees in their current posts • Most training is delivered by the business itself, although two thirds use an external provider • Lack of funds and costs of training are considered to be the biggest barriers to investment in staff skills • The London Councils / LCCI London Business 1000 survey found that 53% of businesses prefer to train existing staff, whilst 38% prefer recruiting new staff. • In-house training is the most common method for acquiring and developing skills • Q8. And which of the following methods, if any, does your company use to acquire or develop skills among your workforce? Base: All respondents (n=227)

7. Apprenticeships • Section 2

8. Employing apprentices • 45%* of those in manufacturing, construction or property say that they do currently employ apprentices, whilst only 24%* of those in accommodation and food services, arts, entertainment, recreation and other services say the same. • According to the CBI / Pearson Education and Skills report, the number of firms operating apprenticeship programmes has dropped sharply since the introduction of the Apprenticeship levy. • The London Councils / LCCI London Business 1000 survey found that: • 17% of businesses employ an apprentice, although these are mostly larger businesses (30% vs. 16% of smaller businesses) • 52% say that financial support for wages or training would make it more likely for their business to increase the number of apprentices • 23% currently employ apprentices, and financial support for businesses is most likely to make doing this easier • Q9. Does your company currently employ any apprentices? Base: All respondents (n=227). Q10. What, if anything, would make it more likely for your business to increase the number of apprentices? What if anything would make it more likely for your business to employ apprentices? Base: All respondents (n=227) Large businesses: 61% Small businesses: 9% What, if anything, would make it more likely for your business to employ / increase the number of apprentices?

9. The Apprenticeship Levy Impact of being able transfer 25% of unspent apprenticeship levy contributions to businesses in the supply chain, up from 10%* • Half of large businesses say that they are required to pay the apprenticeship levy (51%) • The London Councils / LCCI London Business 1000 survey found that 14% of businesses pay the apprenticeship levy, and of this group, 42% did not plan to use the levy fund over the next 12 months • The CBI / Pearson Education and Skills report further found that the apprenticeship levy is placing a focus on numbers rather than on the quality of programmes, and that nearly three quarters of businesses say that the levy has impacted their business since it’s introduction. • Similar proportion that employ apprentices say their company is required to pay the apprenticeship levy • Q11. To the best of your knowledge, is your company required to pay the apprenticeship levy? Base: All respondents (n=227). Q12. How, if at all, does your business plan to use the apprenticeship levy that is available over the next 12 months? Base: All those who say their company is required to pay the apprenticeship levy (n=47) How, if at all, do you think this change would impact upon your business? Base: All those who say their company is required to pay the apprenticeship levy (n=47) • *Low base size, results are indicative only How, if at all, does your business plan to use the apprenticeship levy that is available over the next 12 months?*

10. Staff retention • Section 3

11. Staff turnover • A third (33%) of businesses in accommodation / food services / arts, entertainment, recreation and other services say that the proportion of staff leaving their business in the last 12 months was higher than in the preceding 12 months. • The same sector is also more likely to say they have increased salaries to improve retention (63%) • Around half say that their staff turnover has been consistent over the past year • Q16. Would you say that the proportion of staff leaving your business in the last 12 months is higher, lower or about the same than in the preceding 12 months? Base: All respondents (n=227). Q17. Which, if any, of the following actions has your business taken in order to improve staff retention? Base: All respondents (n=227) Which, if any, of the following actions has your business taken in order to improve staff retention?

12. Improving retention • 73% say that lowering costs of transport and commuting would be within the top three factors that would have a positive impact on staff retention. This is consistent with earlier findings around difficulties in recruiting; 73% say that lower transport and commuting costs would make it easier for their business to recruit new staff. • 52%* of businesses in the manufacturing, construction or property sector say that this would have the most positive impact on staff retention. • Comparatively, only 16% of businesses in accommodation / food services / arts, entertainment, recreation and other services say the same. • Lowering the cost of transport / commuting and housing availability / affordability most likely to have a positive impact on staff retention • Q18. Which of the following, if any, do you think would have the most positive impact on staff retention for your business in London? Base: All respondents (n=227)

13. Workforce diversity • Section 4

14. Opportunities and employment for vulnerable groups Which of the following groups, if any, do you offer these opportunities or employment to? • Only 14% of businesses that offer work related opportunities to vulnerable groups say that they offer these to people at risk of gang activity. • Large businesses are more likely than small businesses to offer opportunities / employment to vulnerable groups (35% and 20% respectively). • Respondents are most likely to offer opportunities and employment to those with health difficulties • Q19. Does your business offer work related opportunities and / or employment to vulnerable groups that struggle to find and sustain work? Base: All respondents (n=227). Q20. Which of the following groups, if any, do you offer these opportunities or employment to? Base: All those whose business offers work-related opportunities and/or employment to vulnerable groups? (n=57)

15. Opportunities and employment for vulnerable groups Which of the following, if any, would encourage your business to work with any of these groups? • Small businesses most often say that funding to make their business accessible (25%) (including physical accessibility, translation or interpretation services) would most encourage them to provide opportunities to those that struggle to find and sustain work • Around half of those who do not offer opportunities or employment for vulnerable groups say nothing would make them more likely to work with them • Q19. Does your business offer work related opportunities and / or employment to vulnerable groups that struggle to find and sustain work? Base: All respondents (n=227). Q22 Which of the following, if any, would encourage your business to work with any of these groups? Base: All those whose business does not offer work –related opportunities and/or employment to vulnerable groups (n=111)

16. Supporting education establishments • 58%* of businesses in manufacturing, construction or property say that they offer work placements or voluntary work, compared to 45% of those in accommodation / food services / arts, entertainment, recreation and other services. • The Pearson / CBI Education and Skills report found that: • Links between businesses and schools / colleges are widespread, and largely based on work experience, although progress on this front has stalled in recent years. • Businesses report barriers in supporting schools and colleges such as inadequate guidance on how to make experience worthwhile, and also time consuming processes (like organising health and safety processes and DBS checks). • Close to two thirds offer any form of support, although this is most likely to be through work placements or voluntary work • Q23. Does your business provide any of the following support to education establishments? Base: All respondents (n=227)

17. Max McEwanSenior Consultantmax.mcewan@comresglobal.com+44 (0)20 7871 8637 • Oliver WrightManaging Directoroliver.wright@comresglobal.com+44 (0)20 7871 8668