The UKGRAD Programme Meeting 6 July

1. The UKGRAD Programme Meeting 6 July The West Midlands Regional Skills Partnership Pat Jackson, Director West Midlands Regional Skills Partnership

2. The West Midlands Regional Skills Partnership • Who are we? • Why do we need a new approach? • What are our objectives? • What do we mean by “demand-led”? • What is the demand-side telling us? • What are we going to do? • Obstacles to progress

3. Who are we? A Partnership that is focused on the skills needs of employers, individuals and the regional economy. The Partnership Board includes:- • Employers and representatives of employer organisations in the public, private and voluntary sectors; • Public sector funders of training; • Higher education institutions • TUC • NIACE • Regional Assembly

4. Why do we need a new approach? • The best performing organisations in the region are making full use of the skills and talents of our people, BUT • Too many low value added jobs • Weak employer demand for higher level skills; • Too many people not developing their skills; • The skills that are being developed don’t match need; • Individuals and employers are failing to reach their full potential, • Our economic prosperity is being hindered.

5. What Are Our Objectives? March 2005 Skills White Paper “Getting on in business, getting on at work”, highlighted the role of RSPs:- “ a key lever … to give employers a stronger voice in shaping the supply of training” “to help business create wealth …and help people realise their potential” Built on the 2003 Skills White Paper … to develop a more “demand-led” approach.

6. What Are Our Objectives? In January 2005 the West Midlands RSP published priorities for 2005:- Every adult and young person has basic employability skills and opportunities to progress; Every employer has the skilled people they need, is making effective use of their skills and investing in workforce development; The West Midlands has a growing number of high performing organisations, a knowledge-based economy and a strong enterprise culture.

7. What Are Our Objectives? Skills is not the only driver of the economy but expect to see changes in .. • Gross value added • Levels of employment • Increased employment in knowledge intensive sectors • Number of organisations employing higher skilled workers

8. What Do We Mean By Demand-led? • Do you want to gain a qualification to prove your competence? OR ….

9. What Do We Mean By Demand-led? Do you want to:- • Get more sales? • Get new customers? • Get the most for your money? • Improve your products and services? • Get a job? • Access more opportunities? • Be more effective in current job? • Be a better manager and progress in career?

10. What Do We Mean By Demand-led? Change current mis-alignment of “push” and “pull”

11. What Do We Mean By Demand-led? Better alignment with improved focus and strengthened demand

12. What Is the Demand-Side Telling Us? • Why employers are not investing in skills • Why individuals are not investing in skills • Concerns about public funding of training • Specific concerns about young people entering the labour market • Specific issues from the manufacturing sector • Specific skill shortages

13. What Is the Demand-Side Telling Us? Concerns about People who are Entering the Labour Market • Concern about basic attitudes to work and key employability skills of young people • Weak aspirations and insufficiently proactive about self development • Unrealistic expectations on the part of both young people and employers • Poor career advice service, including pressure to follow academic routes

14. What Is the Demand-Side Telling Us? Specific skill shortages • Leadership and management, including more effective use of the skills of the workforce, leading change and innovation • Sales / Marketing skills. • IT / Keyboard skills. • Craft skills. • Administrative and general support skills. • Softer skills – eg, customer care. • Sustainability skills. • Higher level skills – design, innovation, entrepreneurship and skills for redeployment and diversification

15. What Are We Going To Do? RSP will work across the West Midlands:- • Use a data driven approach; • Align the activities of all skills providers and provide accessible solutions; • Work with employers to understand need for higher value added products and services and ensure they play their role in investing in skills.

16. What Are We Going To Do? A data driven approach; • Sound information and analysis – a strategic view, informed and tested by employers. • Test analysis with existing employer networks - Sector Skill Councils, Chambers of Commerce, Cluster Groups, Regeneration Zones, EEF, CBI, Trade Associations, West Midlands Business Council

17. What Are We Going To Do? A data driven approach In Jan 2005 published first RSP analysis. A regional view of:- Demand - the quality of jobs in the West Midlands, the skills needs of the jobs and how the skills needs will change over time if we are to develop a higher value added economy; and Supply - the current skills of the people in the West Midlands and how these will change as a result of demographics.

18. What Are We Going To Do? Align the activities of all skills providers, provide accessible solutions such that the region will have two simple “offers” – one for employers and one for individuals. We have already started to:- • Integrate skills with support for business development (put skills within a business context); • Use European funds to expand ETPs; • Prepare a management, leadership and entrepreneurship “offer” (in response to demand from SSCs and cluster groups who identified this as the top priority) • Re-align Advantage West Midland’s investments in skills.

19. What Are We Going To Do? Future plans include:- • develop a regional “offer” based on the National Employer Training Programme with the NETP brokerage service integrated as part of the business support brokerage service • develop a clearer, more accessible “offer” from HE providers; • Improve information, advice and guidance to individuals – informed by intelligence about market opportunities

20. What Are We Going To Do? Work with employers, when ever possible through existing employer networks, to understand their need for higher value added products and services and ensure they play their role in investing in skills.

21. Opportunities for Working with the Regional Skills Partnership? • Better information about current and future skill needs of jobs in the region; • Better understanding of how employers are investing in skills and how the tax payers’ money can add value; • Better use of public procurement to encourage contractors to ensure that the people they employ have the skills to do a good job; • More flexible training that is going to make a real difference to business performance; • Learn from experience and agree future priorities based on what works.

22. Obstacles To Progress • Tasking frameworks, measures and targets – (currently focused on inputs and supply side measures); • Supply side culture – just keep pushing!! • Proliferation of projects; • Timing and planning cycles (LSC, SSCs); • Qualifications – not fit for purpose; • Lack of HE planning at regional level; • Pressure for Sector Skill Councils to become funding providers; and • Insufficient joining up with the Local Education Authorities.