Graduate Skills: the Employer Perspective Andy Russell HE Task Force Adviser

Graduate Skills: the Employer Perspective Andy Russell HE Task Force Adviser Education and Skills, CBI

Outline of discussion • Background on CBI HE Task Force • What Business wants • How can the different stakeholders respond • Next steps

What is the Task Force aiming to achieve? • Business has a growing need for higher level skills, it should therefore have a voice • Business must be clear on what it wants from HE • The Task Force will make clear: • What business wants now and in the future • What business will help to resource • How HE funding needs to develop to achieve this

Why has the CBI set up a Task Force? • A thriving HE sector, which includes truly world class institutions that drive innovation and research • Key to the performance, productivity and sustainability of UK businesses • The future of HE is high on the political agenda: • The Government is developing its vision for the HE sector • Tuition fees – a decision could be made in 2009/10 • The Government is raising its expectations of what/how business should contribute

Who is on the Task Force and what is the process? • The Task Force comprises of 20 members: • 16 CEOs/Chairmen • 3 university Vice Chancellors • Plus Richard Lambert • The Task Force was launched in September 2008 • The Task Force have met every other month • A final report will be launched in September 2009

Key questions which the Task Force has focused on • 1) How do we ensure higher education is delivering what business wants? • The supply of graduates and post graduates • Training and development of the current workforce • The provision of research and innovation-related work • Management and leadership skills • 2) Is current funding fit for purpose and will it ensure that HE can deliver what business wants in the long term?

Now is a critical time to act • Business as usual is not an option • Significant pressures: • Public finances • Overseas competition • Demographics

What is important for the future? • Continued economic success will depend on high value added sectors • Growing need for graduate level skills • Innovative new products and services • The UK economy is changing • Universities, business, students and government

The business – university relationship • The business community relies on the HE sector, for: • Graduates and post graduates • Research and innovation • Training the workforce • Other roles of HE • Graduate demand v supply

So what is the problem? • There are concerns among employers: • 1) Employability skills • 2) Quality and quantity of STEM • 3) Collaboration on research and innovation • 4) Capacity for workforce training • Overall – maintain our world class universities • A focus on quality

1) Employability skills • Ensure all graduates have employability skills • Definition: • Self management • Team working • Business/customer awareness • Problem Solving • Communication/literacy • Numeracy • Application of IT

1) Employability skills (cont’d)

1) Employability skills (cont’d) • Most are “satisfied” with most skills • But this is not good enough • Results from the CBI Education and Skills survey

1) Employability skills (cont’d)

1) Employability skills (cont’d) • CBI and Universities UK report on Employability • “Future Fit, preparing graduates for the world of work” • Lots of good practice by many universities • More can be done • Business has a role

2) Quality and quantity of STEM • Stem skills are vital to our commercial success • Government policy on “Industrial activism” • Report published in April, “New industry, new jobs” • Concern over number of firms who report STEM skills shortages • Relevance of content of degrees • Problems further down the supply chain • Decline over the past 30 years

3) Research and innovation • Successful innovation is fundamental to business competitiveness, and also key to sustaining and promoting economic prosperity, environmental sustainability and social welfare • “In today’s global economy, investment in science and innovation is not an intellectual luxury for a developed country, but an economic and social necessity, and a key part of any strategy for economic success” • Great progress in business-university co-operation for research and knowledge exchange over the past 5-10 years • But more can be done • Partners of choice

4) Workforce training • Provision of high quality training – this will increase • A significant market opportunity – £39 billion • Government targets – 70% of work force has left education • Some examples of good engagement. Two thirds of the largest firms use universities to deliver at least some of their leadership and management training • CBI/UUK report “Stepping higher” • But growth of this market needs a change of mindset

4) Workforce training (cont’) • A number of key issues: • Business aware of what is on offer • University flexibility • Funding of employer provision

How can we change? • Four areas where change is necessary to achieve the outcomes we need to deliver: • 1) Business needs to do more • 2) Funding - high quality teaching, particularly STEM, is expensive • 3) Students should be able to make more informed decisions • 4) Universities should be better able to respond effectively to business demand

1) Business needs to do more • Business already contributes significantly • But more can be done. Our report is therefore a call on business to do more • A set of recommendations • Specific commitments from Task Force members

2) Funding • Difficult decisions will have to be made regarding increasing the contribution students make • Reforms to offset expected reductions • Business income will increase for research if universities are more strategic with their pricing • Business income from workforce training - develop the capacity and capability

3) Students • Students themselves must do more to ensure they enter the labour market with vital employability skills • Students must be able to make more informed decisions • Encouraged to choose vital STEM subjects

4) Universities • Universities should be better able to respond effectively to business demand • Greater freedom to develop innovative provision • Drive up competition and quality • Effective mechanisms to work better together and understand each other’s needs • Research funding should be rebalanced to ensure more activity is user-focused

Next steps • Final stages of preparing our report • Task Force meets for the final time on the 7th July • Launch the report in September • In October, we will be holding an HE Summit • Take our conclusions to regional councils in November/December

Graduate Skills: the Employer Perspective Andy Russell HE Task Force Adviser