A Survey of Business Views and Attitudes
Findings and Conclusions of a Business in the Community Survey
At the beginning of 2002, Business in the Community established an Employability Task Group with a number of member companies to examine issues around the concept of employability and to try to identify strategies for addressing and improving employability amongst both school leavers and many disadvantaged groups.
One of the Task Group’s first actions was to undertake a preliminary survey of around 50 member companies about a range of employability and skills issues. With a sample of this size across a wide range of sectors, the survey was looking essentially for broader trends and issues, as well as looking at employability for all categories of people and types and levels of job.
Employability is an issue that is an increasingly major public and government concern; whether for individuals already in work or those seeking employment or for organisations - in the public or private sectors - providing employment opportunities.
Definitions of employability can vary, depending whether one is an employer, employee, someone preparing for the transition from full-time education or training to the world of work or a wide range of other ‘job seekers’, including the long-term unemployed and many marginalized and disadvantaged groups such as the homeless.
The CBI definition does however capture the essence of employability:
‘The possession by an individual of the qualities and competences required to meet the needs of employers and customers and thereby, help realise his or her aspirations and potential at work.’
This and any other definition may perhaps have a hollow ring if one is homeless or long term unemployed, but behind the notion and concept of employability are the acquisition and renewal of knowledge skills and capabilities by individuals. This also presupposes that individuals have the opportunities and motivation to learn and the confidence that this learning will lead to earning.
Employability is therefore high on the agenda for individuals, communities, business and government.
In addition, the last decade in particular has seen major changes within the workplace with significant changes in working patterns and more recently the influence of the development of the Internet and other new technologies. Companies are operating in a truly global trading environment characterised by continuous change and this necessarily affects a range of employment and employability issues.
Objectives & Scope of the Survey
The objectives of this study were:
- to evaluate current views and experiences of the recruitment market, particularly focusing on skills gaps and deficiencies
- to identify current and future skills needs (and access to that market) and
- examine current business practice and future willingness to recruit people from more marginalised and disadvantaged groups
A clear aim of the study was also to ensure that wherever possible Human Resources Directors and/or senior recruitment specialists were interviwed across a good spread of companies in different sectors as well as a mix of larger (multinationals) and small and medium enterprises.
Those who participated were from a wide range of sectors, finance, IT, oil, retail engineering, design etc and although the sample was small, it was nevertheless fairly representative.
Methodology
The survey was conducted with a deliberate mix of face to face interviews with HR professionals, one-off group meetings and the completion of questionnaires sent via e-mail. Follow-up discussions also took place with a number of those involved during the course of the survey.
To assist this overall process, two related documents were produced. A series of ten specific questions was identified for the face to face interviews with background guidance and supplementary questions for interviewers. A formal questionnaire was then also produced based on this first document.
1. Defining Employability
Employability is an issue that is an increasingly major public and government concern; whether for individuals already in work or seeking employment or for organisations - in the public or private sectors - providing employment opportunities.
Definitions of employability can vary, depending whether one is an employer, employee, someone preparing for the transition from full-time education or training to the world of work or a wide range of other ‘job seekers’, including the long-term unemployed and many marginalised groups such as the homeless.
The CBI definition does however capture the essence of employability:
‘The possession by an individual of the qualities and competences required to meet the needs of employers and customers and thereby, help realise his or her aspirations and potential at work.’
This and any other definition may perhaps have a hollow ring if one is homeless or long-term unemployed, but behind the notion and concept of employability are the acquisition and renewal of knowledge, skills and capabilities by individuals. This also presupposes that individuals have the opportunities and motivation to learn and the confidence that this learning will lead to earning.
2. Background
Employability is therefore high on the agenda for individuals, communities, business and government.
In addition, the last decade in particular has seen major changes within the workplace with significant changes in working patterns and more recently the influence of the development of the Internet and other newer technologies. Companies are operating in a truly global trading environment characterised by continuous change and this necessarily affects a range of employment and employability issues.
Against all of this background, Business in the Community has established an Employability Task Group with a number of member companies to examine issues around the concept of employability and to try to identify strategies for addressing and improving employability amongst both school leavers and many disadvantaged groups.
(The aims and objectives of the Task Group are set out at Annex A to this report.)
One of the Task Group’s first decisions was to ask Business in the Community to undertake this initial survey about a range of employability and skills issues. With a sample across a wide range of sectors, the survey was looking essentially for broader trends, as well as employability for all categories of people and types and levels of job.
The expectation was that the body of information received would then influence the further work of the Task Group and also point towards an action agenda, not only for business, but education, government and other voluntary sector organisations.
Business in the Community, as a business membership organisation, is in a unique position to talk to companies on such issues and to analyse and evaluate their responses. The area is of course well documented with a number of reports from the Department for Education and Skills, the Confederation of British Industry and other sources. ( Employers Skills Survey DfES September 2002
Learning and Training at Work - DfES/IFF Research 2001
Employment Trends Survey CBI 2001 It is important however that this is not ‘just another report’ and Business in the Community is committed to working with companies and other stakeholders to ensure that the findings are able genuinely to influence the national agenda.
3. Objectives & Scope of the Survey
The objectives of this study were:
- to evaluate current views and experiences of the recruitment market, particularly focusing on skills gaps and deficiencies
- to identify current and future skills needs (and access to that market) and
- examine current business practice and future willingness to recruit people from more marginalised and disadvantaged groups
A clear aim of the study was also to ensure that we interviewed the Human Resources Directors and/or senior recruitment specialists across a good spread of companies and different sectors as well as a mix of larger (multinationals) and SMEs. Those who participated were from a wide range of sectors including finance, IT, oil, retail, engineering, design etc.
(A list of participating companies is set out at Annex B.)
4. Methodology
The survey was conducted with a deliberate mix of face to face and telephone interviews with HR professionals, one-off group meetings and the completion of questionnaires sent via e-mail. Follow-up discussions also took place with a number of those involved during the course of the survey. Overall, 50 ‘interviews’ took place between January and August 2002.
To assist this overall process, a series of ten specific questions was identified for the face to face interviews with background guidance and supplementary questions for interviewers. A formal questionnaire was then also produced based on this first document.
(The survey questionnaire is reproduced at Annex C)
Summary
• Although a number of interviewees say they are ‘fairly’ content with the skills displayed by current recruits, there is also an underlying concern about the lack of soft skills - inter-personal, communications, customer interaction skills flexibility etc.
This complaint is not new, but is still not seen to have been properly addressed. The ability to adapt to change and a customer focus are also seen by the majority as the skills that will become most important in the next 3-5 years, and, combined with a ‘can do’ attitude, the most common characteristic of successful employees.
• The vast majority of companies have competence portfolios and a clear understanding of the skills they are after. There are also encouraging signs and great examples of strong partnerships with the education sector.
However, there is not enough evidence across the board of real, long-term dialogue or effective collaboration both between companies and education providers and, within companies, between the Human Resources and ‘Social Policy’’ departments.
• Overall, although a number of respondents feel that it is ‘fairly’ easy to recruit, there is an undercurrent of frustration that it should be easier, as some are regularly presented with so many unsuitable candidates. Most organisations’ regular forms of recruitment are traditional, although with less of a focus on qualifications than hitherto.
• One major change over the last few years is seen to be the number applying on-line, which although acknowledged as being useful in attracting some applicants who might otherwise not get in touch, is nevertheless actually more disempowering to many from marginalised groups.
Although nearly every organisation points out that it is an equal opportunity employer, and therefore would consider any applicant, most organisations understandably recruit from areas known to be successful. Very few currently have policies covering recruitment of marginalised groups.
• There is also a clear acknowledgement that companies need to be diverse, and interested in considering all applicants. Some mention recruiting working mothers and older recruits as a demonstration of diverse recruitment. There are, however, fewer examples of a more creative approach to this issue than might perhaps have been expected.
• No one was closed to the idea of recruiting long-term unemployed or homeless people, although there is nervousness about being involved in new schemes (hampered often by poor previous experiences), and the additional time needed to recruit from these groups.
• Companies are however very interested in some simplification of both programmes and processes in this whole area - ‘common process’ - as well as calling for work to ‘route-map’ the area for all of business.
• There is also, crucially, a plea for a more meaningful dialogue with government, its a agencies and education providers not just on the question of skills, but on much of the wider area which is the focus of this report.
• Finally, there is also a perceived role for Business in the Community – with other agencies – to facilitate this dialogue and help promote employability as responsible business practice through case studies, targeted programmes driven by companies themselves and other means, as part of a consolidated campaign.
Main Findings
In order to provide a detailed insight into the findings, results have been shown for each question. Conclusions and implications drawn are summarised in the following section.
Question 1. How content are you with the knowledge skills and capabilities displayed by recruits and those you interview?
Around three in four of the companies participating feel that they are ‘Fairly content’, although within that, not surprisingly, are a wide range of views amongst the companies and expected variations depending on role and locations.
More than ever companies seem to be looking for the right attitude and commitment to work and the ability to adapt and deal with change. They are therefore ready to train recruits with the knowledge and skills required for a wide range of jobs.
Location is often a major contributor too. In London, HR directors are more likely to comment that many basic level jobs do not attract a good enough quality of applicant and this remains a problem for some companies. It could be difficult to recruit lower paid workers because they just could not afford to live in the capital. Often those who do apply have poor language and basic skills and low levels of confidence.
Outside London a city such as Manchester is considered to have a fairly buoyant recruitment market, but in other provincial centres the labour market can be much tighter with significant competition for people, higher staff turnover and inflationary pressure on wages.
Recruitment for Call Centres is mentioned by some respondents as having difficulties. Many applicants for these types of jobs are still from 18-25 year olds and there is a feeling that the net should be spread wider so that there is a better fit between the average profile of someone ringing a Call Centre and the operator responding. This does provide opportunities to companies therefore to recruit from more non-traditional sources.
The most common and consistent thread amongst companies’ responses, however, is in relation to the serious lack of the softer skills and overall attitude to the workplace. This was mentioned more often in relation to jobs below graduate level, although not exclusively so. Worryingly too, it seems to be even more prevalent amongst the SME respondents .
Naturally, companies will tend to select those who display the skills set they are looking for and too many younger applicants are perceived to lack social and interpersonal skills.
‘There’s a lack of confidence, an inability to sell themselves, poor time management and lack of overall business awareness.’
Companies using a competence-based approach find that candidates often have difficulty demonstrating competence on their application form; linking their playing on a netball team with the ability to be a good team player! As a consequence companies can be challenged in the search for competence rather than qualification.
There are great variations too:
‘It’s a mixed bag from very capable to completely clueless. It’s very variable and probably getting worse’
Lack of communications and other interpersonal skills are mentioned most as being in short supply and this was commented on regularly by SMEs.
‘Levels of basic skills of writing and communication are deficient in candidates/employees for almost all positions we offer ranging from semi-skilled positions through to office administration and general management’
Equally worrying perhaps is lack of understanding of business.
‘Our process of recruitment is tough and robust. This means that we are demanding and stretching. I am very often dismayed at the lack of research that they have done as well as the lack of business acumen’
Question 2. How difficult is it currently to fill vacancies?
The majority feel that it is ‘fairly easy’ to fill current vacancies, although this, of course, depends on the type and level of job and location. Behind the responses, however, for some, is the feeling that it could and indeed should be even easier.
‘It’s a buoyant market, although we’re concerned that those in the market may be ‘dead wood’ and higher quality candidates are staying put until recession lifts’
A number also mention the need to re-advertise and the fact that the overall recruitment process is taking longer than it should be doing.
‘Last summer we did some extensive recruitment of telesales executives at quite a junior level. We found we got a good response to an initial advert, but thereafter we struggled to pull candidates and did so on a ‘drip’ basis from local agencies’
‘Some readvertising is required, most especially for technical/ functional jobs. The balance is moving away from adverts to the greater use of agencies’.
‘It’s just taking too long. We’re seeing a large number of applicants and not enough meet our requirements’
Softer ‘employability’ skills (covered in Question 1) is cited most regularly in relation to any current recruitment difficulties. The relative lack of such skills in many interviewees was the single biggest contributor to the need to readvertise, the conversion rate from applicant to job offer, the length of time it took to fill some vacancies and, as a consequence, the other steps some companies are taking to improve the situation.
‘There are always plenty of applications for office, sales and admin positions, although finding good candidates is not easy’.
‘We are constantly held back by the lack of communications skills and even an inability to turn up properly dressed and on time’
Unfortunately experiences of programmes such as New Deal are not always positive:
‘We got 30 sets of papers and agreed as an exercise to consider them all for a particular job we felt would be suitable. We actually interviewed everyone without any success and were very downhearted’
The company concerned nobly looked at more papers and found, in candidate 35, someone who has fitted in and been great in the job. It is not however an exercise they are very keen to repeat.
There are some geographical variations. London is mentioned again here as a problem area for lower-paid jobs although at the professional level there is a much larger pool of available talent in the South East. Outside that area however, geographical location could lead to problems in resourcing marketing professionals and other corporate roles including finance and HR. An SME view was worrying too:
‘For the higher level positions, maths and language skills are almost always deficient. These are especially so by comparison with trading partners experiences in other European countries’
Many of the larger companies with traditional and strong brands are of course still attracting good numbers of quality people without major difficulties. This is particularly so at graduate level. Here, on-line applications are proving a big bonus for some.
‘Previously, on the ‘Milk Round’ we would carefully target a certain number of Universities for visits in the expectation of good numbers of applications. We obviously missed out on good quality people from other places. Now many of these are applying on-line and we have a bigger selection to pick from than before.’
Nevertheless, there are a number of clear and consistent messages here across a range of companies of all sizes – particularly about the questions of soft, employability skills. This plea or message is not new, but the fact remains that after many reports, projects and interventions during the last 20 years, companies are still saying the same thing.
Why is this situation continuing? What should business have a right to expect of the education system and what should it be responsible for itself in terms of in-company training? There are many things to ‘tease out’ in this interrelationship and the situation does seem once and for all to merit some genuine and concerted action by all stakeholders.
Questions 3 and 4. How well do you know the skills you want now in potential employees…and in 3-5 years time?
The key issue to investigate here is really that of companies future skills requirements and the first of these two separate questions is really a preparation for that.
Companies do claim overwhelmingly to know ‘very well’ the skills they need now in the market place and almost all are operating competence portfolios.
‘We have established a set of behavioural competences that are used across the business to determine the behaviours we require. Dialogues with managers around individual resourcing requirements drive out the specific skills sets’.
Those companies who marked themselves as knowing current skills only ‘Quite or ‘Not well’, tended to be in the process of reviewing existing competence frameworks as part of future planning and a wider strategic review. There were nevertheless some interesting insights.
‘We are moving from an introspective organisation to more customer focused and are reassessing what qualities we need. Behaviour and attitude will clearly become more important’
There was an expected change when moving towards those future skills needs. A minority still feels they know future requirements very well. A number of these feel that they are in traditional industries and that apart from the general updating of many existing skills, there will be no major changes required.
‘Our business is founded on established products and although we will see new derivatives on old themes, many of the key technical skills will be the same’
The great majority of companies acknowledge that there is work to be done and that they know only in part what knowledge, skills and capabilities employees will need to have in 3-5 years time.
‘We are in a very fast-moving organisation and our skills needs change accordingly’
It is indeed the current and expected future rates of change within organisations that is exercising minds within companies and the following quote encapsulates the main issues for many.
‘We have recognised the need to determine new skills requirements in light of our changing business and have projects in place to address many of these issues. Where we will have difficulty is that the increasing pace of change means that we may need to source new skills sets relating to new ventures that have not yet been determined but may still come to fruition within the set timescales’.
This is predictably the case with IT with some concern that it could be difficult to know IT and Internet skills requirements for six months ahead, never mind three or five years!
Whatever the actual timescales, there is a need to plan ahead in order to be fully abreast of all technological developments, to be aware of how technology would potentially ‘take hold of the job’ and the implications of this both for future recruitment and importantly the training and continuous improvement of existing employees.
Other than the issue of IT, there is a good degree of consensus amongst companies about their ‘skills’ priorities for the future. Companies will be focused perhaps more than previously against a backdrop of increasing change, on spotting talent and looking to develop it within a changing organisation – people who could adapt, be grown and improved continuously.
The whole area of selling, marketing, customer service and customer contact was uppermost in companies’ minds.
‘There will be a lot more expected of colleagues around selling, service, problem solving, product knowledge and customer contact’
‘The biggest areas of change are likely to be in customer service, leadership and continuous improvement.
For some, languages should be added to that list.
‘The emphasis will be more towards sales, marketing and languages skills as the entire European market becomes increasingly our primary and domestic market’.
The other major focus area was the continued importance of the softer skills and capabilities that were regarded as the foundation stone for the development of talent.
‘ We’re looking for commitment, a responsible attitude, business awareness and team working ability’
‘It’s a question of adaptability and living with change, good communications skills – we can build on that’.
Although there are inevitable variations and priorities across so many sectors and companies of different sizes and markets, the message about preparations for resourcing and future needs is a pretty consistent one and there is some concern that companies will be able to maintain or improve the quality of future recruits.
This all has interesting implications for recruitment procedures and processes in the medium term and particularly in relation to considering opportunities for categories of applicant not previously considered by most of business.
Question 5. How are you articulating your requirement to recruits and education providers?
As anticipated, companies are using many different ways of making potential recruits aware of what knowledge skills and capabilities they need. Most of these are the numerous traditional ways, although the Internet and in particular on-line applications were actively being used and encouraged. Regular reference was made too to the need to develop talent and fill vacancies internally wherever possible.
‘The majority of our recruits are resourced via our website and employee referral systems’
The situation is a little different however when it comes to any dialogue with education providers about requirements for prospective employees. There is excellent practice and good examples of collaboration.
‘We work closely with particular national bodies to determine how we can ensure recruits are equipped with appropriate skill sets. We also have a dedicated team within the business who liaise directly with education suppliers at local and national level to influence where appropriate.’
However, amongst the widespread level of activity between companies and the education sector, there was perhaps less actual dialogue about skills and overall expectations than should arguably be taking place.
There is a feeling too, from a number of companies they still have some way to go to reap the optimum benefits from their involvement with education, although schools can still be defensive on occasions.
• ‘We’re not doing enough’.
• ‘We’re not doing it coherently enough’.
• ‘I think this is a gap in the company’s work’.
• ‘The company’s not been brilliant in schools’.
• ‘Our Work Experience isn’t structured enough’.
Companies are spending many millions of pounds every year on partnerships with all parts of the education sector and their work in schools in particular does have many different rationales and objectives. Although some companies do it well enough, there is probably scope for greater collaboration within many others between line business units, HR departments, and those teams delivering the companies Corporate Social Responsibility (CSR) programmes.
Done effectively, this can further prove the worth of CSR in supporting core business objectives (thereby helping cement its position and standing in-house) and provides a fully integrated approach within the company to the whole question of Life Long Learning which can offer significant benefits for the organisation.
Question 6. ‘How do you assess the level of qualifications you require for your different jobs?’
Apart from a small number of companies who are undertaking reviews of their resourcing strategy, the majority are clear enough about their approach to identifying both the type and level of qualifications they require.
Companies continue to show flexibility, with specific qualifications often not required for many basic level jobs and the suggestion that this approach may be expanding a little, to encompass more jobs and roles within organisations.
‘Hourly paid staff need no qualifications’….’We’re more into job experience and are flexible in levels of qualifications…..paper is not as important’
There was reference by many to the key relationship between Human Resources specialists and line managers to agree requirements and a realisation that this needed regular attention.
‘In consultation with internal customers and based on experience of those employed. This aspect needs almost constant review and testing to ensure that we are a) not restricting the pool of labour available by setting unnecessarily high standards and b) not setting too low standards which lead to subsequent performance problems’
However, although industry standard requirements can mean that specific qualifications are needed, we do see a degree of flexibility.
‘Each role is identified in terms of competences for that specific role. We do not however ask for specific qualifications as we can measure competence by our selection procedure – except in senior professional roles where attainment of relevant qualifications is required.’
The following probably captures the situation for many.
‘In professional roles we usually express a preference for the associated professional qualification, but this is rarely a job requirement. For other roles we look for an indication of the requisite level of numeracy and/or literacy by indicating the appropriate level of qualification – but this is typically expressed as a preference rather than a requirement. Where there is a substantial requirement for numerical or literacy skills any contrary evidence (i.e.a low grade or non-attainment of appropriate level of qualification) will be taken into account in the recruitment decision.’
Question 7. What behaviours do successful employees in your organisation display?
The majority of companies have a list of their own competences and means of identifying which set of competences are an appropriate fit, depending on the type and level of job in question.
At a very basic level, employees are expected to be presentable and arrive on time. Many said however that although this is ‘pretty obvious stuff,’ it is not always apparent in interviewees.
Beyond this, do requirements change over the years? Perhaps not dramatically.
Interestingly ‘leadership’ was mentioned less often than a number of others, but the fact remains that business is certain enough of what it wants. There is a clear agreement on:
• customer focus, team players, good communications skills, integrity, adaptability and a ‘can do’ attitude as well as creativity
and business acumen.
There is an assumption that employees need more and more to demonstrate that they are comfortable with IT although the pace of change and specific company needs and support processes mean that targeted in-house training is a particular priority. IT companies are also working together – and in partnership with education - to ensure that the flow of the generic IT skills required in their industry (and more widely too) is maintained.
A more flexible approach to the whole issue of qualifications (although the level of job is key) and the very clear agreement of priorities for skills, does, as with previous questions provide some interesting pointers and opportunities for potential job applicants amongst more marginalised groups.
Questions 8. Do you have traditional areas/groups levels you recruit from? What are they?
Many companies observe that they need to be diverse in their approach and spread their net as widely as necessary.
‘A broad approach is taken to all recruitment activity across locations. It’s as diverse as possible’
However, the most commonly mentioned examples of this were ‘women with children at school’ and ‘women returners and older males’ - often to fill part-time jobs!
It is quite understandable and to be expected that companies will recruit staff from areas and groups of people where they have traditionally had success in attracting quality applicants.
Companies naturally fill jobs internally whenever they reasonably can by talent spotting and growing and developing that talent. Larger companies contracting out a range of functions can also lead to these contractors applying for vacancies within the company in other disciplines and with greater responsibilities.
The Internet also provides job seekers with another means of making companies aware of their applications and business is making increased use of on-line opportunities, not only at graduate level.
All of this can lead to a situation where, without really meaning to, companies are effectively operating ‘closed user groups’, seeing broadly the same type and category of applicant. These groups can be quite widespread and include a large range of candidates. They are, however, characterised by how little they change and therefore how unlikely they are to be embraced by people from disadvantaged groups and communities.
There are of course some excellent examples of thinking outside the box and these need to be better promoted, but they are as yet too rare. There is more work to be done too, before this picture changes radically.
Question 9. What is your view of resourcing from marginalised groups such as long-term unemployed and the homeless?
It was clear that there are few if any company-wide policies for this area.
Many companies simply state that they are equal opportunities employers and would ‘of course’ consider candidates from any source provided they have the skills.
‘It’s ok if they have talent’….’We do not search for, but do not exclude such candidates’….
Another common and somewhat more realistic response was.
Yes, but we can’t compromise our standards too much’
Unfortunately, experiences of New Deal are very mixed. For some it had been fairly positive.
‘ You have as a company to work at your relationship with New Deal – both officials and potential customers and then it can be beneficial’
For others however, experiences have been disappointing which unfortunately might have some negative influences on Job Centre Plus and other initiatives looking to improve the employability of certain groups.
More positively, a number of companies are keen to give a lead here.
‘We’ve worked hard on this’….’Yes we are involved and the associated mentoring roles our staff undertake is good for their personal development’
Others also are ready to become involved.
‘ It’s something we’re working on. We’ve no experience, but would be willing to try’…..We’d like to find out more….’
There is no question therefore that business is willing to consider candidates from disadvantaged groups. There are barriers and perceptions that many won’t have the necessary skills and attitudes, but these barriers are there to be broken down – perhaps by HR professionals in the companies taking on the job of persuading line managers.
Another issue is the time taken to recruit people from outside the ‘closed user group’.
‘Yes of course we shall, but we simply can’t afford for the recruitment process to be any longer than normal’
This was supported by SMEs in particular, some of whom were potentially interested but for whom the speedy filing of vacancies was, if anything, even more crucial.
Achieving this does demand some commitment and creativity, starting perhaps by targeting adverts more widely and carefully than at present; using more and different types of job agency than usual or entering into a new dialogue with existing agencies.
Many marginalised groups will, of course, not see or not respond to job vacancies on-line and many will shun all but a few of companies’ traditional methods. Whilst benefiting many, on-line applications disempower others. Many too lack the confidence and self-esteem to apply or feel that their application will not be treated seriously.
It is right that standards and any other aspect of the recruitment process should not be compromised. A number of companies are interested to be involved with that proviso, but felt that there is no obvious and easy way to overcome this problem. Many are working through the company CSR programmes with this college here and that agency there. Much good work is going on, but is all too fragmented.
This takes us conveniently to the final question.
Question 10. What action might be taken by Business / Government / Business in the Community / Education providers / other agencies to address these issues?
Companies in their responses take on board that there needs to be action here from all stakeholders. There is acceptance that there is work to be done and barriers to be broken in parts of business. The key however is a genuine message to all, that recruitment has to be driven solely by business benefit.
‘ The majority of initiatives to date are based on ‘give this poor person a job’ rather than identifying what skills there are amongst marginalised communities. Unless we all believe that excluded people can make a valuable contribution to business, those employers will only take them on for reasons of social conscience. If the belief is real, that reality needs to be better promoted.’
The theme of better communications and some rationalisation of initiatives was also taken up by a number of others.
‘The answer is in much better communications and consistency of government programmes’
It is clearly felt to be helpful to business if the number of initiatives could be consolidated, making it less confusing. There is also a call for ‘more common process’ to enhance employer knowledge and awareness and create programmes that will stand the test of time.
‘There are too many initiatives – this seems to be a real problem. Some companies pick one area and concentrate hard on that. The danger is that we end up with an ineffective scattergun approach. A related problem is that they don’t seem to last long and nothing is sustained. Government funding is an issue where there’s plenty of money up front but things tend to wither because projects are not initially robust enough.’
The most consistent aspect of company responses has been the disappointment with the level of softer skills. This is hardly a new message but business does feel that it should be addressed once and for all.
‘Government needs to ensure that all the key skills that reflect the behaviours and attitudes most commonly required by business, are not marginalised by the drive from schools to achieve results that contribute to league tables. Business should continue to offer a wide range of opportunities for young people to gain first hand experience of the world of work and develop their employability skills.’
This type of statement is an important pointer to the need for greater levels of collaboration and takes us therefore to a view of the way forward.
Conclusions and Implications
• The report has highlighted a very consistent message from all types of company about shortages/lack of softer interpersonal and communications skills – those employers value so much. This has been a cry from business for many years through numerous reports and statements, but in spite of programmes and interventions from successive governments and significant activity and expenditure by the companies themselves, the situation appears not to have changed markedly.
• Although there are concerns related to the fast development of the Internet – and newer communications technologies – companies are pretty certain also about many of the skills they are likely to need in the foreseeable future. They have concerns too about the ability at least to maintain the quality levels in recruits.
• There is certainly less obsession with paper qualifications and more focus on related sets of skills, competences and attitudes. All of this needs however to continue to be properly and consistently articulated to education providers and it was clear from the responses that there are ways in which business can improve the way they approach this- perhaps through more co-ordinated efforts of HR and CSR teams working together with operational units.
• This is an important context for any concerted move to have large numbers of people from more marginalised groups both work ready and readily considered for employment by companies of all sizes. There is excellent work taking place by a number of companies and some of these programmes deserve to be more widely promoted. There is willingness too by some companies to consider taking on people from these groups, although still work to be done with others to make an effective case.
• What is required by all is a simplification of programmes and processes to enable marginalised groups to be considered by business and in a way which can be integrated successfully within normal recruitment practices.
Business cannot however tackle these matters in isolation and their ability and indeed willingness to address them coherently is dependent on action by other stakeholders including government, education providers and agencies in the public and private sector.
There is clearly a way forward through an agenda for action, where action is shared in a partnership towards inclusion for competitiveness.
For business there is a chance to:
• Establish a campaign to promote the opportunities for business benefit offered by the talent and skills of many in marginalised communities. This would include:
promoting existing good practice and case studies
looking creatively at existing recruitment processes and procedures in order to attract and then seriously consider applicants from disadvantaged groups
• Further improve the way it engages with education providers and articulates to them its current and future skills needs
• Encourage other companies and promote best practice
These steps can only be carried out with any real chance of success if issues raised by companies in this survey are seen to be genuinely addressed by government, its agencies and the education providers themselves.
• There needs to be an ongoing and more meaningful dialogue than hitherto around all these issues which tries once and for all to find answers in the skills debate and looks for more sustainable programmes and solutions, enabling those from disadvantaged communities to find long-term employment.
• There is also perceived to be a role for Business in the Community – and other agencies – to take a lead role in co-ordinating such a campaign by business and contributing to the associated dialogue and debate.
Business in the Community is keen to undertake such a role which might will include identifying and promoting good employability practice and case studies, consideration of an Employability Toolkit which would include ‘signposting’ information about relevant programmes and processes and the development of specific programmes which business itself can drive.
Peter Thompson
Business in the Community
October 2002
Annex A
Business in the Community - Employability Task Group
Aims and Objectives
The Task Group has been set up to examine a range of issues around the concept of employability and in particular:
• strategies for addressing/improving employability and transition to employment amongst:
a. school leavers
b. marginalised groups such as long term unemployed and the homeless
including approaches such as the provision of
customised training.
• challenging the traditional resourcing policies and practices of business and their attitudes to recruitment from non-traditional sources
• identifying any gaps or mismatches between the knowledge, skills and capabilities they require and those being offered by potential employees
• making recommendations for action - by business - but also by government, education providers and voluntary sector organisations
The Task Group will begin its activities by surveying 50 top companies about the questions/issues raised above.
Annex B
Participating Companies – Employability Survey
Arca Technologies Jaguar Cars Ltd
Arcominteractive KPMG
Alexander Mann Associates plc Kingfisher Environmental
Abbey National plc Lattice Group
Asda Stores Ltd London Electricity Group plc
Boots Company plc Chelsfield Merry Hill Investments plc
Barclays Bank plc Marks & Spencer plc
Barques Design McDonald’s Restaurants Ltd
BP plc Oracle Corporation UK Ltd
Bradford and Bingley plc Powergen UK plc
Bristol and West Prudential-Bache International Bank
BT plc
Cap Gemini Ernst & Young UK plc Regency Press
Cadbury Schweppes plc Sage Group plc
Centrica plc Sean Crawford Photography
Cisco Systems Ltd Standard Life Assurance Company
Consignia plc Tate and Lyle PLC
Costcutters Supermarkets Group Thames Water PLC
Deloitte & Touche Thorowgood Ltd
Deutsche Bank Unilever (UK) Holdings plc
Deutsche Telekom Ltd Universities UK
Essex County Council WHSmith plc
Freshfields Bruckhaus Deringer W H Smith & Sons (Tools) Ltd
Guardian Media Group plc UnumProvident
HBOS plc
HSBC Bank plc
Annex C
Issues of Employability – An Employer Survey
Q1 How content are you with the knowledge, skills and capabilities displayed by recruits/those you interview? _ Very content
Further Comments and Information
Q2 How difficult is it currently to fill vacancies? _ Fairly Easy
Further Comments and Information
Q3 How well do you know the skills you want now in potential employees? _ Very well
Further Comments and Information
Q4 How well do you know the skills you will want in 3-5 years time? _ Very well
Further Comments and Information
Q5 How are you articulating your requirements to recruits and education providers?
Q6 How do you assess the level of qualifications you require for your different jobs?
Q7 What behaviours do successful employees in your organisation display?
Q8 Do you have traditional areas/groups/ levels you recruit from? What are they?
Q9 What is your view of resourcing from marginalised groups such as long term unemployed and the homeless?
Q10 What action might be taken by Business/Government/BitC/Education providers/Other agencies, to address these issues?