COMMITTEE FOR EMPLOYMENT AND LEARNING

Report on the Inquiry into Education and Training for Industry (Continued)

Report 01/01R

34.        It is difficult to assess the extent to which Northern Ireland employers have responded to the challenge this rising skill demand poses - this is partly because the available data tends to capture only a small slice of activity, tending to miss a great deal of less formal training. Some employers have raised the issue with us that in certain occupational areas they have to send their employees to GB to undertake the necessary training - this adds to costs and time away from work. Historically Northern Ireland has a relatively poor performance with regards to qualification levels, especially at the low end of the qualifications spectrum. Exhibit 5 outlines the current position.

                Source: Labour Force Survey

35.            Northern Ireland has traditionally lagged other countries. A 1995 Northern Ireland Economic Council Report on the Education system revealed that the proportion of 16 year olds in Northern Ireland gaining the equivalent of a GCSE grade (A-C) in mathematics, the national language and a science subject was 22% - this compares to England (27%), Germany (62%), France (66%) and Japan (50%). The table above indicates that in 1999 59.2% of all persons in Northern Ireland had a Level 2 or above qualification with the comparable GB figure running at 63%.

36.            However the data does suggest that Northern Ireland employers have increased the amount and effectiveness of their training provision via:

n     growth in participation (as shown in Exhibit 6 below)

n     expenditure and volumes

n     increased rates of return and growth in transferable training.

                Source: Labour Force Survey (refers to employees receiving job related training in previous 4 weeks)

37.        But we recognise more needs to be done - especially in SMEs. Participation rates and volumes of training fall below GB levels. The 1998 Skill Needs in Britain (SNIB) Survey shows that 82% of employers in GB provided off the job training compared to 55% in Northern Ireland (for employers with 25 or more employees). It is known that smaller firms, particularly the very smallest, are much less likely to provide training. The 1998 Skill Needs in Northern Ireland Survey shows that only 26% of Northern Ireland firms with one or more employees provided off the job training. It appears that not only do fewer Northern Ireland employers provide off the job training when compared to their GB counterparts of equivalent size; but also the size distribution of Northern Ireland employers tends to further reduce the proportion of employers providing training.

38.        In terms of volume of training the SNIB shows that the average number of training days per employee trained for GB was 8.4 compared to 7.0 for Northern Ireland for employers with 25 or more employees. Therefore it appears that a smaller proportion of Northern Ireland employers provide off the job training and those that do provide less days training. The reasons for these differences are not clear but are likely to relate to both size of companies and the nature of their activities ie there is an over-reliance on low-tech, low value-added industries in Northern Ireland.

39.        In order to succeed in today's highly competitive arena a growing number of organisations are using external strategic management tools like the European Business Excellence Model. Within the UK one of the most widely used and important tools is the Investor in People (IiP) standard. In Northern Ireland 30.71% of the workforce are now employed by an organisation which has either gained, or is working towards achieving, IiP (Equivalent GB figure is 36.07%).

40.        There are many reported benefits of IiP and according to IiP UK 94% of companies stated that the standard will continue to add value to their organisation.

41.            Northern Ireland has been lagging behind the rest of the UK, partly due to a late start in promoting the standard, but emerging evidence suggests that we have been catching up rapidly. But there are a number of barriers:

n     lack of awareness

n     problems with the product - language used is difficult for many SMEs

n     problems with delivery - too bureaucratic and costly

n     many small companies have other priorities

Changes have recently been made to the Standard to increase take up, although CBI members still refer to the high levels of bureaucracy involved.

42.        CBI Northern Ireland strongly supports the IiP standard and believes ambitious and challenging targets should be set for its uptake in Northern Ireland.

43.            However it is important to put the above focus on training and development into a broader context, of which training and development are one, albeit important, element only. The ability to harness the energy and commitment of the workforce will depend crucially on four major people management issues:

n     Leadership and culture

-       strategic focus on people development, organisation cohesion and creating a high performance culture

n     Employee development

-       recruitment and selection, training and development

n     Employee involvement

-       information sharing, direct and indirect involvement

n     Work organisation

-       job design, team working, performance appraisal and expectations and performance reward

An undue emphasis on training and development may miss the bigger picture! The CBI is keen to promote benchmarking for people management and has recently launched the Headstart programme which addresses these four issues - this programme is relevant to both the private and public sectors.

44.        So far we have set out our vision and key strategic elements of what is required to deliver relevant and effective education and training to meet the needs of a modern economy. The current system of education and training in Northern Ireland is currently not delivering the vision we have set out and there are significant weaknesses in the two strategic elements:

n     the qualities and competencies which make up employability are inadequately understood and are only partially being addressed

n     there is insufficient integration between the needs and opportunities of the economy and the education and training system

We now turn to areas where CBI members believe there are specific shortfalls and weaknesses and, where appropriate, we outline potential solutions.

ADDRESSING WEAKNESSes IN THE NORTHERN IRELAND EDUCATION AND TRAINING SYSTEM - WHAT NEEDS TO BE DONE

We have set out the issues broadly in the sequence of the preceding section.

Tackle Weaknesses in Adult Literacy and Numeracy

45.            Statistical and survey evidence indicates that there are high levels of poor adult literacy and numeracy in Northern Ireland - according to the International Adult Literacy Survey 24% of adults in Northern Ireland (about 250,000 people) have a serious deficit in literacy and numeracy skills - this compares with 23% for the UK as a whole.

46.        There clearly remains a problem for many young people emerging from secondary education - the Belfast Institute of Further and Higher Education report that some 500 students entering the College each year need basic literacy and numeracy assistance. Indeed CBI members report that in recent job applications for assembly work or machine operatives typically some 5% to 15% of applicants have got basic skills problems.

47.        It is less clear how significant the problem is of those employed - the recruitment process will in many instances sieve out individuals who perform poorly. However the Skills need in Britain and Northern Ireland 1998 study suggests that 6-7% of 16-24 year olds in employment are lacking in these skills. Certain low skilled occupations (especially assembly workers and plant operatives) appear to be the most likely areas for people to have basic skills problems.

48.            Addressing this issue requires effective 'outreach' to those not involved in learning coupled with public funding for programmes to help adults with poor basic skills to improve them. Employers can play a useful role by highlighting the opportunities available and encouraging staff to take part, but in the vast majority of cases they will not be able to deliver or contribute to the funding of this training. We expect that the Gateway process in New Deal is likely to identify more clearly the extent of these problems in the unemployed, where Gateway advisors and the intensity of training provided are vital - we would encourage the Committee to review this area.

Integrate Key Skills into all Learning

49.        In 1989 the CBI identified the importance of six key skills in its report 'Towards a Skills Revolution'. There is now widespread acceptance within the education and training establishment of the importance of these transferable skills. We understand that in Job Skills, for example, key skills has become an integral part of the programme, although a module/qualification has not yet been incorporated into Modern Apprenticeships.

50.            However current output from the education and training system suggests that there remains a great deal of improvement to be achieved.

51.        As CBI Northern Ireland 's recent research has shown only 60% of SMEs consider recent graduates to have satisfactory key skills. The companies also emphasise quite strongly that the demand for key skills will increase significantly over the next 10 years - 51% state that they expect a substantial increase in the need for key skills.

52.        While employers indicate that the majority of recent job applicants from school leavers have satisfactory key skills there are more applicants assessed as having poor key skills as having good key skills. A more encouraging picture emerges for applicants from the Further Education sector with a significantly higher level of individuals assessed as having good key skills. However many New Deal applicants are considered to have poor key skills. We also have some evidence that key skills overall are starting to improve although almost half the respondents to a recent CBI survey state that they have not observed any noticeable change in the last few years. Most progress appears to be being made in IT skills.

53.        The Skill needs in Britain and Northern Ireland 1998 study reveals that about 15-23% of young (16-24 year old) employees are lacking in key skills.

54.        The six key skills need to be integrated into all aspects of education and training. We welcome the proposals by the CCEA to ensure key skills are an integral part of the new curriculum.

Develop Breadth of Learning - post 16

55.        Breadth of learning at post-16 is essential to prepare people for changeable working lives. Breadth in terms of important transferable skills and qualities for work needs to be a feature of all the different routes. All young people should have access to opportunities to develop and assess the full range of their key skills. In order to provide an understanding of work and help develop key skills and attitudes, enterprise projects and work experience opportunities should also be available in all routes.

56.        Breadth in terms of learning different disciplines can also often be very valuable and is likely to become increasingly important. The need to provide opportunities to combine different types of learning - for example part-time higher education with work, or A levels with GNVQs - has already been mentioned. The reforms within the academic route allowing students to take more 'AS' levels in the first year of their study should also be very helpful. This should provide scope for young people to keep up a wider range of subjects, for example to continue to study science and technology disciplines for longer, to combine arts with science, or continue with foreign languages.

Changing Attitudes - Encourage Individual Responsibility for their own Development

57.            Attitudes and behaviour can make the difference between success and failure in a job and in developing skills and deploying them effectively. Employability must be seen as an ongoing priority, even when in secure employment.

58.            Currently many people take little initiative to improve or deploy their skills. Individuals in the UK are far less likely to contribute to the cost of adult education and training than in other OECD countries, compared with employers (Exhibit 7). Unfortunately we do not have equivalent Northern Ireland figures, but we are not aware of any evidence to suggest that these would be any better than the UK ones.

            Exhibit 7 Adult education/training courses funded by employers or by self/family (1994-95)

            Source: OECD 1998

59.        A recent GB survey found that in 1994-97, 68% of all taught job-related learning was initiated by the employer. More encouragingly, 51% of those in work engage in professional development and keep up to date with their field. Unfortunately we are not aware of any comparative figures for Northern Ireland.

60.        This is not to say that all adults can or should take immediate responsibility for their learning - some people will need 'outreach' services, such as basic literacy and numeracy provision. But individual attitudes are nevertheless a key feature in everyone's employability.

61.        The obstacles to learning are numerous, as the Exhibit 8 demonstrates. While these are GB figures we have no reason to believe that they would be much different in Northern Ireland.

                Source: National Adult Learning Survey, 1997

62.        The removal of barriers may not necessarily result in increased upskilling. The National Adult Learning Survey 1997 indicated that 50% of adults stated that "nothing would encourage me" to learn. A major challenge will be to stimulate the demand. Policy makers must also be realistic in their expectations. And while there is emerging concerns about the development of a 'Digital Divide' the above suggests that this may be strongly influenced by the demand for learning as much as in having access to computers and a supportive training infrastructure.

63.        The CBI is naturally supportive of lifelong learning and the introduction of Individual Learning Accounts (ILAs). It is still early days in their development and technical issues do remain. The concept is good and certainly has potential but mechanisms must be kept simple, the ILAs must be extremely well marketed, and they must add value to existing activities.

64.        As highlighted above we have a long way to go to developing a culture of lifelong learning. There is still a strong view from employers that too many young people, including graduates, still anticipate a job for life and have not grasped the concept of life-long learning. However it is also true to say that many companies have not grasped the issues either!

65.        The findings above strongly indicate that the school system must remain a priority to ensure that the numbers leaving the school system with low or few formal qualifications is minimised, and that their attitude to learning are more positive.

Transform Careers Education and Guidance

66.        The importance of high quality, independent careers advice, education and guidance has not been reflected in the relatively low priority which it has been given in Northern Ireland to date.

67.            Business clearly benefits from well informed job applicants - whether young or old - who make the right career decision. The nature of today's changing labour market means that access to good quality advice and guidance is critical. This indeed was identified by the Skills and Education Working Group of the Economic Development Review leading to Strategy 2010.

"Too many young people drift through education into unknown careers territory influenced in an intuitive way by peer, parents, teachers, media etc"

"...those professionals usually offering advice have little experience of careers outside education or the public sector".

Feedback from CBI members during the preparation of this submission confirmed that many young people (typically 30-40% of school leavers, and 10-20% of FE applicants) are poorly informed of career opportunities and the attitudes, skills and knowledge required for employment.

68.        A careers review in 1994 identified both the importance of the issue and the need for change - but little of the report appears to have been implemented. A report by Northern Ireland Economic Council (Research Monograph 7 Improving Schools in Northern Ireland August 1998, pages 172-178) also identified substantial weaknesses and inconsistencies in careers education and guidance. Evidence from employers indicates a very mixed quality of contact with career staff/offices throughout the education system - while around 50% of CBI survey respondents rate contacts with careers staff as satisfactory or very satisfactory the other 50% rate contacts as unsatisfactory or very unsatisfactory.

"Those that make contact often do so on a superficial level to say that they have done it, and they are not interested in the detail of job requirements or attitude issues".

69.        The efficiency and quality of adult careers advice and guidance also needs to be improved through

n     developing a more cohesive service (ie effective linkages across careers services)

n     strengthening links with employers (of all sizes)

n     greater use of the internet and ICT to deliver up to date and reliable information on employment opportunities and skill requirements.

n     proactive approach, promoting services to students/trainees at the beginning of their courses

n     ensuring staff have strong links, and experience of the labour market - including regular placement

n     use of the customer-focussed quality standards and accreditation developed by the Guidance Council to improve services and eventually to serve as the main quality check for funding

n     undertaking projects to explore how to increase the take up of in-depth adult guidance - for example in relation to prime targeted Individual Learning Accounts with funds that can only be spent on guidance.

A recent careers review group has been established - although principally focussed at young people.

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