Unite Viewpoint

A new survey conducted by the employers organisation the CBI, of over 700 companies covering over a million and a half workers has shown that the lack of basic skills is hitting employers where it hurts - in their pockets. Highlights from the report published late last week says that 735 firms, employing 1.7 million people between them, identifies skills gaps in the workplace, reveals the skills employers value the most and spotlights how employers are now sourcing skilled staff with the qualifications. The report is striking because it shows that over half of employers (53 per cent) lack the confidence in their ability to find enough people with the right skills for their business. Basic skills - the ability to read, write and do arithmetic - are still a major cause for business concern. Two-fifths of employers had serious concerns about employees’ basic literacy and numeracy skills. On the literacy side, the main problems are not being able to write in sentences, spell correctly or use accurate grammar. On numeracy, the key issue is the inability to spot simple errors or rogue numbers. While most employers (63 per cent) described staff in high skilled roles as ‘good’, fewer did so for those in intermediate level jobs (43 per cent) and even fewer for lower skilled staff (35 per cent). Poor basic skills have a serious impact on customer service according to two-fifths (40 per cent) of employers, and lower productivity according to a third (34 per cent). Both issues have damaging implications for business performance and around a quarter of employers are now investing in remedial literacy and numeracy training. IT skills are also seen as weak, with over half of employers (56 per cent) concerned about the ability of existing employees to use computers. The skills of people already in the workplace are not keeping pace with the rapid development of technology. The 32 per cent of jobs currently requiring degree-level education is likely to grow, as the UK continues to move further to an economy built on high value services, high-tech and knowledge/creative based companies. This survey shows that employers want graduates who can communicate well and work as part of a team. Graduates’ positive attitude to work and good communication skills are seen as more important than the degree subject or result. By 2014, it is expected that the UK will need to fill over three-quarters of a million (730,000) extra jobs requiring highly numerate, analytical people with STEM skills, making a net total of 2.4 million of these jobs in six years’ time. Yet currently, six out of ten (59 per cent) firms employing STEM-skilled staff say they are having difficulty recruiting, and the low take-up of STEM subjects at university is a large part of the problem. There has been a 15 per cent fall in engineering and technology graduates (23,300 to 19,700) over the past decade. Employers are looking abroad to hire graduates. A third (36 per cent) of larger firms are recruiting from India and 24 per cent from China. Larger firms are twice as likely as smaller ones to be looking at the expanded EU, which includes states such as Poland, to hire people with degrees. Overall, a third of firms (35 per cent) say they will look to Europe in the next three years. The report shows that that a third of UK adults do not hold a basic school-leaving qualification – that is double the proportion in Germany. It also drew into focus that whilst the UK is producing 250,000 graduates every year, China and India are producing four million. The implications for our global economic competitiveness are clear. It is also clear that employers do not believe that going to university at 18 is the only route to success for young people. Around half of the employers surveyed offer apprenticeships, giving young people a chance to develop valuable vocational skills and have a strong start to a rewarding career. Many companies make sure their apprentices are able to go on to higher-level studies if they have the right attitude and ability. There is evidence that bureaucracy, cost, and a lack of suitable candidates are holding back greater business involvement, which the Government must tackle. Developing conversational ability rather than full fluency is what matters most when employers look for ability in a foreign language. Seventy-five per cent say they want this skill, which is about building rapport and shows business people abroad that UK firms are prepared to make the effort. The main demand is still for European languages, with 50 per cent wanting French, 49 per cent German and 41 per cent Spanish. As for the graphical industries - well, the survey provides a warning - again - to those employers who are refusing to offer any form training to their own staff. Employers in the print industry have a poor track record of training and we are disappointed with responses Unite has had to appraoches to sign up for learning & skills agreements with our union and yet they will be first complain about a lack of skills, skills shortages and productivity falls. In our industry we need more employers to take the up the offer to work with us to offer more training at work. At the very least they should show their commitment by signing up to the Government's Skills Pledge, but even that won't be enough.