Survey highlights need to close skills gaps and shortages

The Confederation of British Industry’s latest employment trends survey, published in September 2007, reflects concern among UK employers over existing and potential employees’ skills sets. The research examines the varying degrees of employee education, skills and training in participating companies. It found that companies need higher level and leadership skills to achieve success. Companies thus support the government-commissioned Leitch Review of Skills.

In September 2007, the Confederation of British Industry (CBI) published the results of its 10th annual employment trends survey. The report, entitled [Fit for business: Employment trends survey 2007 (1.98Mb PDF)](http://www.skillsnortheast.co.uk/lib/liDownload/12026/Employment Trends Survey 2007.pdf?CFID=7008059&CFTOKEN=58595170), analyses employers’ views and policies on an array of employment topics. The survey was carried out in May 2007, in conjunction with the Pertemps recruitment agency. Completed questionnaires were received from 507 companies, representing a 5% response rate among employers. In small and medium-sized enterprises (SMEs), the survey was mostly completed by the company’s managing director or chair, while in larger companies it was completed by the human resources director or someone in an equivalent post. The companies participating in the research employed 1.1 million employees in a wide range of organisations, including those in the public sector (19%). The survey has been weighted, using data from the Office for National Statistics (ONS), to ensure that it accurately reflects practices across the whole economy. Key findings in relation to education, training and skills are summarised below (see UK0710029I for findings on industrial relations topics).

Education and skills

The survey highlighted a number of aspects associated with the education and skills levels of new recruits. In this regard, employers emphasised a number of key priorities for government to improve education and skills levels.

• Employers remain concerned about the basic skills of new recruits – over half (52%) are dissatisfied with literacy skills of new workers, while 50% are unhappy with numeracy levels. As a consequence, 15% of employers give new recruits basic numeracy training and 13% provide training to improve literacy. Almost nine out of 10 employers (86%) believe the government’s top priority should be to ensure that young people leave school with basic literacy and numeracy skills.

• A high proportion of employers (92%) are satisfied with the information technology (IT) skills that school leavers apply at work.

• About half of all employers (51%) are concerned about school leavers’ teamworking, problem-solving and communication abilities, while 27% are dissatisfied with graduates’ competencies in this respect.

• Just under two thirds of employers (61%) cited the promotion of apprenticeships as a top priority for government, particularly in the utilities, manufacturing and transport and communication sectors, where skills shortages are particularly pronounced.

• A third of employers (33%) suggested increasing the number of science, technology, engineering and maths graduates as a top priority for government.

Training provision and higher skills

With regard to further training and development, many employers are keen to provide staff training and wish to improve other aspects of skills development.

• The vast majority of employers (92%) provided training to their staff to enable them to carry out their jobs effectively (see table below). Almost all of the employers (95%) had employed the services of an external training provider. Employer contact with government agencies has improved, but employers recognise the value of maintaining even closer engagement with these organisations.

• Two thirds of employer-provided training does not result in recognised qualifications for employees. However, over half of the respondents (51%) are keen to accredit their own in-house training with qualifications.

• The greatest demand among employers is for higher level and leadership skills. Almost three quarters of employers (70%) reported an increased need for higher level skills, while 84% expected a greater demand for leadership skills in the future. The survey found falling demand for low level skills.

• In 2007, a dramatic increase was evident in the number of companies experiencing skills gaps and skills shortages. Half of the employers participating in the survey reported serious problems in recruiting suitably qualified staff, while 20% reported considerable gaps in relation to the skills sets of their current workers – three times the level recorded in 2006.