Unlocking Workforce Potential

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Unlocking Workforce Potential Hugh
Tollyfield Deputy Director HE Employer
Engagement DfES
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Skills Strategy For England

• An economic focus on workforce skills supports
• Economic Growth
• Social Mobility
• Improved Public Services

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The Drivers of Productivity
Grow the sustainable growth rate of GDP per
head/per hour
Increase Employment Rate
Increase Productivity
Increase Number of People Economically Active
Increase Output per Worker
Enterprise
Skills
Innovation
Competition
Investment
PRODUCTIVITY DRIVERS
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The UK Prosperity the Employment and
Productivity Challenge

• UK performance primarily a function of high
  employment levels Future prospects depend
  heavily on productivity growth
• Among the EU 15 we stand above only Greece,
  Portugal and Spain
• Skills are key lever in increasing productivity
  and employment

UK
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The Leitch ReportA Compelling Vision For The UK

• For the UK to be World Class in skills by 2020
• 95 of adults with functional literacy and
  numeracy
• 90of adults qualified to at least Level 2. Aim
  to achieve 95 as soon as possible
• Shift intermediate skills balance - Level 2 to
  Level 3
• 40 of adults qualified to Level 4 and above -
  commit to continue progression to Level 5

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The Regional Skills Gap Not simply a supply-side
problem
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70 Of The 2020 Workforce Have Already Left
Full-Time Education
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The New Market For HE- People In Work Progressing
From L3/L2
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More than 40 of adult workforce qualified to L4
and above by 2020
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gt 20
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17-18
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Leitch ReportKey Underpinning Principles

• Shared responsibility Government, employers and
  individuals in a new partnership, to increase
  investment
• Focus on economically valuable skills
• must provide real returns
• should be portable
• Demand-led skills system to meet needs of
  individuals and employers must be demand led, not
  centrally planned
• Adapt and respond a flexible framework to react
  to future change
• Build on existing structures improve current
  performance through simplification and
  rationalisation

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Leitch ReportSome Key Recommendations

• All public funding for adult vocational
  qualifications to go through Train to
  Gain/Learner Accounts by 2010
• Strengthen employer voice - Commission for
  Employment and Skills to replace SSDA, NEP and
  Skills Alliance
• Network of employer led Employment and Skills
  Boards to influence delivery
• Increase employer buy-in SSCs lead
  qualifications reform and raise employer demand
  and investment
• Public funding for vocational qualifications
  linked to SSC approval

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The Leitch ReportRecommendations For HE

• Re-balance HE priorities
• Teaching and learning mission for HE extended to
  the whole adult workforce
• HE to deliver flexible and responsive provision
  to meet employers needs
• Develop and grow the workforce market

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The Leitch ReportRecommendations For HE

• A portion of HE funding to be delivered through
  demand-led mechanism similar to Train to Gain
• SSCs to work directly with HE providers to
  influence content of e.g. Foundation Degrees
• Key role for HE in driving up quality of
  management and leadership skills in workforce
• 2010 Employment Skills Commission Review
• How will the sector respond? Opportunity for
• innovation, collaboration and progression

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The HE policy challenges are how best to
stimulate

• Higher level skills demand
• Higher level skills supply
• Effective deployment
• A fair and equitable society
• In an environment of shared
• responsibility for investment

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Action Already In Hand

• 2006 and 2007 HEFCE grant letters
• Employer focused provision a priority
• 5000 employer co-funded places in 2008-09
• 5000 year on year growth
• HE in Train To Gain Pathfinders in 3 regions
• HEFCE employer engagement SDF projects
• Communications strategy
• HEA development programme
• Further Education Bill
• This is a start, but it is supply-side focused

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Economic Growth Through Skills

• High workforce skills
• Enabled by
• Continuing progression
• Achieved through
• Lifelong Learning
• Accessed in
• The workplace
• Delivered by
• Employer/HE Provider
• collaboration

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High Employer Demand

• Adaptive
• High Demand

Institutionally Adaptive
Institutionally Rigid

• Rigid
• Low Demand

Low Employer Demand
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For HE Providers This MeansRethinking and
Re-engineering

• Core Mission business facing
• Systems and funding mechanisms
• Enablers building them
• Barriers removing them
• Delivery partnerships
• Making and reaching the market
• Delivering learning solutions
• Integrated solutions - enabling progression
• HE workforce CPD
• To deliver the thinking workforce

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Large Employer
And what should an HE providers footprint be?
?
Sector Focus
Local Focus
Key role for Development Agcs/ RDAs to work with
HE Providers
Small Business
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So whats stopping us?What would make the
difference?

• Risk
• Has to be shared and managed
• Critical mass
• Build capacity and capability
• Sustainability
• Invest in market making
• Reward and recognition
• Funding, systems, attitudes
• Commitment we all have to sign up to change