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3:00 AM 25th July 2022
business

NE Employers Need Better Support To Invest In Skills And Tackle Low Productivity Levels



Senior business leaders in the North East are calling for more measures to tackle the region’s low productivity levels and boost employer investment in skills.

The CIPD’s new ‘Skills policy in the North: recommendations for levelling up’ highlights the need for a fundamental re-think of skills policy, after bringing together perspectives from regional policy makers, employer representative bodies, Further Education providers and northern employers.

Tackling low productivity & weak investment in skills
The report emphasises that the North East’s low productivity levels is, in part, due to inadequate leadership and people management capability in too many firms, and a consequently weak demand for investment in skills.

While the North has a higher concentration of low skilled adults (NVQ 2 and below)compared to the national average, research in the report reveals the region also has a higher amount of low wage work, skills gaps and poor utilisation of people’s skills in the workplace.

This demonstrates that more needs to be done to improve the skills and qualifications of workers to tackle the longstanding productivity disparities, and consequently weak demand for investment in skills.
In response, the new CIPD report recommends a range of measures to boost employer investment in training, ensure people’s skills are better matched to local jobs, and used more effectively in the workplace.

Recommendations include:
Increase employer understanding of the benefits ofengaging with vocational education and training, and improve their capability to do so. CIPD research found that four in ten northern employers do not have any links with local colleges (rising to almost 60% of SMEs).
Strengthen regional partnerships, local referral networks, and improve coordination between institutions, particularly between business support and skills providers.
A long term vision and flexible local funding, rather than centrally designed pots of competitive funds.
Share examples of where skills and training initiatives are working well, so that good practice can be learned from, and scaled and spread across other areas.


Other recommendations to build employer capability, capacity and appetite to invest in skills, is the need for a step change in the quality of regional business support, in particular on HR and people management and development.

Lizzie Crowley
Lizzie Crowley
Lizzie Crowley, CIPD Senior Policy Advisor, Skills said:
“Too often, business leaders lack the capability and knowledge to manage people, or develop their staff effectively, which leads to low workplace productivity and skill levels.

“A business support offer on HR and people management would help employers – of all sizes - develop their staff and improve the quality of their jobs. It would also allow organisations to better understand their skills gaps and shortages, making them more likely to engage with further education colleges and other training providers.”


Iain Nixon
Iain Nixon
Iain Nixon, Group Vice-Principal, Education Partnership North East – who contributed to the report - said:
“Following significant evolution of skills policy over a number of years it is understandable employers often do not understand the current and emerging options available to them to upskill and reskill their workforce. Where systems leadership is working well, there are brilliant skills-based collaborations occurring across the region, however there are still too many employers disconnected from the opportunities available to them.

“As Government continues to consult with employers and invest in the education and skills sector, never has there been a more important time to ensure education providers and employers have access to flexible long-term funding, modular study options, and recognised credit transfer. Without enabling the further education sector to deliver, the opportunity to transition at pace to a high-wage, high-skill economy will be inhibited."




Download the CIPD Skills Policy in the North report at www.cipd.co.uk/levelling-up