Exploring Skills Utilisation and High Performance Working in the UK Employment Landscape

"The UK Commission for Employment and Skills delves into the importance of skills utilisation for individual aspirations and economic growth, highlighting areas of mismatch in demand and supply. The challenge lies in increasing skill levels at a pace to match international competitors while addressing under-utilisation and under-employment of skills. High Performance Working is proposed as a solution to enhance skills utilisation through individual and organizational capabilities."

• UK Employment
• Skills Utilisation
• High Performance Working
• Economic Growth
• Workforce Development

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1. Skills Utilisation: does it matter? A perspective from the UK Commission for Employment and Skills Unionlearn Learning & Skills Policy Network Meeting Trade Union Congress 8 November 2010 Lesley Giles UK Commission for Employment and Skills Deputy Director of Research and Policy

2. The Skills and Jobs Challenge: A strategic framework to explore utilisation Skill levels not increasing at a sufficient rate relative to international competitors need to raise individual aspirations: skills upgrading Is the system responsive enough? Matching supply and demand mismatch trust providers Right skills economically valuable Is Employer Demand Ambitious enough? Raise demandand skills use high value jobs High Performance Working Increase skills utilisation 2

3. We have a highly skilled workforce? Significant new growth but massive replacement demand Managers & senior officials Over 50% of all job demand Professionals Associate professionals Over 100% of all expansion demand Administrative occupations Skilled trades Personal services Sales occupations Process and plant operatives Elementary occupations 13,449 Total occupations -500 0 500 1,000 (Thousands) 1,500 2,000 2,500 3,000 Total demand New demand Source: UKCES, Working Futures 2007-17, January 2009

4. But areas of significant mismatch? Growing under-utilisation and under-employment of skills (Ch 2) (Ch 6) (Ch 3&4) (Ch 5) Policy (Ch 7) 4

5. A problem of demand? Changes in high skilled demand and supply (1998-2006) Supply growing 7 times faster than Demand! 5 Source: Ambition 2020, Chart 7.1, p 115 - OECD, Education at a Glance 2008, Table A1.3a and Table 1.6

6. Is High Performance Working an answer? One means to encourage better skills utilisation Individual capability attitude: employee engagement/ involvement ability: skills, training education Development Deployment application: OD product market strategy access: resourcing recruitment succession Organisational capability

7. How and where can we improve take up? Challenges for HPW & skills utilisation? What we have found: Low take up, varying from a fifth to just over a quarter Strong sectoral variations e.g. higher take up in manufacturing, public sector Key influencing factors include: greater international competition/market pressures; advanced technology; greater consumer demand; high value goods and services; firm size. Wide range of barriers to take up: Ignorance Doubts & inertia (perceptions of costs vs benefits & pressures for short term financial returns) Inability (capacity and capability of M&L) Wider context environment e.g. regulation

8. Developing a New Ambition for Employers: The need for a strong social partnership (Ch 2) (Ch 6) (Ch 3&4) (Ch 5) Policy (Ch 7) 8

9. Thank you Questions Further Information: www.ukces.org.uk 9