The challenges local businesses face are not just down to Ukraine, Brexit and inflation – they’re down to a skills shortage that, according to the Government’s own figures, extends across some 30 domains.
In one industry alone – construction – the shortage has recently been reported as ‘alarming’, with 75% of contractors experiencing issues recruiting skilled operatives.
Digital and data skills paint an even bleaker picture. Again, according to the Government, 11.3 million people (21% of the UK population) lack full basic digital skills (independent research suggests these figures are actually much higher). Scarily, 5.4 million working adults have no form of basic digital skills at all.
And whilst some of the skills shortage in specific industries can be attributed to pandemic-triggered job-hopping, overall there’s a much deeper supply-side worry here: namely, that the training framework that exists is failing to train people in skills that local businesses genuinely require.
There is a genuine will on the part of Further Education (FE) and Higher Education (HE) colleges to engage and evolve, but they are restricted by the system.
What is to be done?
LSIP – what it is and why it’s good for business
More dialogue is obviously needed between education providers and businesses in the localities they serve – and at Bedfordshire Chamber of Commerce, the Local Skills Improvement Plan (LSIP) we’re rolling out makes this progress possible. The Great Skills Turnaround starts here!
LSIP is a Government-led scheme to give employers a stronger voice in articulating the skills need to FE providers, and to ensure changes are made that help people get good jobs and enhance their prospects (win-win!)
We’re working with many different establishments that deliver post-16 technical education – FE colleges, sixth form colleges, higher education institutions, independent training providers, and other designated institutions – as well as with employers and other stakeholders such as enterprise partnerships and local authorities.
How does LSIP engage with local businesses and employers?
The first stage in the process is detailed research – including online surveys, employer-focused and group round table events, telephone calls and one-to-one meetings – to capture businesses’ views on the most urgent skills and opportunities for improvement. This is now under way.
The LSIP will then follow a clear, three-stage process, comprising:
- Articulating employers’ skills needs. What are the skills employers need locally, but struggle to find? These could be technical, academic, or manual in nature, but could also cover ‘softer’ skills like negotiation, communication, customer service, and so on. We will place special emphasis on businesses who struggle most to get their voices heard by education and training providers.
- Translating employer needs into changes in provision. How can these needs best be met by providers in more responsive ways? New modules, or new courses? Changes in what is taught, or how it is taught? How can accessibility, flexibility, refresher training and upskilling attract and benefit a diverse range of employees?
- Addressing learner demand and employer engagement. What can local stakeholders and employers do to raise demand for, and make better use of, skills, particularly when they are new or nascent (e.g. sustainability, digitalisation, net zero, etc.) but becoming critical?
What are the LSIP’s outputs and outcomes?
The output of the LSIP will take the form of a strategic but concise document – no more than 30 pages in total – setting out the priority changes and time scales needed to make post-16 technical education and training more responsive to the skills needs in our region.
But if the only outcome of this project is a 30-page document, we’ll be more disappointed than anyone – which is why it’s crucial to understand that it will be much more than this. In fact, it will be a solid plan for action that can only be published when it has been scrutinised and approved by the Secretary of State.
This means institutions at both Government and education level have a formal commitment to work to, which will in turn help to drive funded change more rapidly and more measurably.
The passion is certainly all there; we’re feeling it from many local stakeholders – businesses, educational institutions and councils alike.
Giving your business a voice at the top table
The skills agenda is critical, but of course it’s not the only issue local businesses need to be able to bring to the attention of the top table of local and even central Government, now and in the future.
So, whilst we have included both member and non-member businesses in the LSIP surveys and research, your business can help ensure its voice is heard at Government level across many other issues throughout the year by joining the Chamber.
We have a presence on a range of committees and groups that influence policy decisions on local issues including growth strategy and infrastructure. We are also present on a number of panels and committees across the Eastern Region, enabling us to represent you regionally as well as locally.
In turn, we are connected to the British Chambers of Commerce, an influential organisation that has the ear of Government and works hard to represent local businesses’ interests there. Turning the skills shortage around is urgent. Positioning your business to be heard in the future could be existential.
If you are interested in registering your interest for the Local Skills Improvement Plan click here.
For more information on how Bedfordshire Chamber of Commerce enables its SME members to influence policy and deliver change for a better business environment, click here, or call 01582 522448
