Demand for higher level skills from businesses a ‘Known Unknown’
Policymakers and higher education providers must develop a better understanding of the demand for higher level skills from business if they are to meet ambitious skills and productivity targets, new research has found.
The report, ‘Known unknowns: the demand for higher level skills from businesses’, is published this month by independent think-tank CFE.
Policymakers and higher education providers must develop a better understanding of the demand for higher level skills from business if they are to meet ambitious skills and productivity targets, new research has found.
The report, ‘Known unknowns: the demand for higher level skills from businesses’, is published this month byindependent think-tank CFE.
It explores the extent and nature of demand for higher level skills from businesses in the East Midlands and assesses the market share of Higher Education Institutions (HEIs) and other providers in the region.
CFE researchers surveyed more than 400 businesses across the East Midlands. The focus was on businesses that employ 25 or more staff as this group account for 74% of the private sector workforce in the area.
The study identified that 39% of businesses had undertaken training at this level in the past year and 61% had not. Other key findings include:
For businesses that do undertake higher level skills training:
- Qualifications are important; in choosing a provider this is a more important factor than the method, location or cost of training;
- They tend to meet the full cost of the training and when they buy from HEIs, they are more likely to buy locally;
- 77 per cent reported that training had had a positive impact on their business
- The majority use HEIs to deliver training, particularly ‘post-1992’ institutions
For businesses that do not undertake higher level skills training:
- Most could see no benefit to their business in doing so
- Only small number cited financial costs or lack of awareness as barriers to undertaking higher level skills training
- Almost two thirds said they were ‘unlikely’ or ‘definitely not’ inclined to undertake training at this level in the future
James Kewin, Project Director at CFE in Leicester, said:
“We believe our findings can be used to inform the thinking of policymakers at a national, as well as a regional level. This report is our contribution to the ongoing debate between the higher education sector, government and business around the most effective way to improve the supply of, and increase the demand for, higher level skills.
“There is an assumption that more businesses would invest if only higher level skills were easier to find or more affordable, but our research suggests that this would only have a marginal impact.
“In policy terms, viewing all businesses through the same lens runs the risk of making deadweight interventions, offering inducements to those businesses that already invest, or ineffective ones to those businesses where it doesn’t make commercial sense to do so.
Copies of the report are available to download free on CFE’s website: www.cfe.org.uk
ENDS
Notes to editors
CFE is a not for profit consultancy that provides research, policy development and project management services to a range of government departments and agencies. Our purpose is to bring practical insights to policy questions within a framework that ensures independence and integrity. Our work spans the policy areas of: skills and innovation, business and enterprise, employment and productivity and economic development. For more information, visit our website: www.cfe.org.uk
For more information regarding this report, please contact James Kewin, Project Director at CFE:
Tel. 0116 229 3300
Email. [email protected]
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