Last week saw the launch of the new government’s flagship skills policy, Skills England.
Education secretary Bridget Phillipson appointed former Co-op chief executive Richard Pennycook to lead the new body, which it hopes will bring together the “fractured skills landscape” and boost the nation’s productivity.
Two of the core elements of Skills England are closer collaboration between local economies and businesses so regions can more accurately respond to local skills issues; and reform of the apprenticeship levy, which has come under criticism for being used to rebadge and fund existing training, rather than supporting early careers.
One of Skills England’s key tasks will be to identify non-levy training that would now be available for a reformed “growth and skills levy”, for example. In doing this, it will replace the Institute for Apprenticeships and Technical Education.
It will work closely with employers, the Migration Advisory Committee, trade unions and the Industrial Strategy Council to provide a “single picture of national and local skills needs”, the government said.
What should Skills England prioritise?
According to the Department for Education’s Employer Skills Survey, the number of vacancies remaining unfilled due to skills shortages doubled between 2017 and 2022 to 521.200. Skills shortages are responsible for 36% of all job vacancies in the UK, it is estimated.
Skills England
The National Centre for Universities and Business (NCUB) says that it’s positive to see a dedicated organisation focused on addressing skills gaps within the UK economy.
Dr Joe Marshall, NCUB chief executive, says: “It’s no secret that the UK is facing a severe and acute skills crisis.
“What’s more worrying still is that businesses face barriers to upskilling their staff and accessing new talent. A strong education system, matched to the talent needs of employers is what underpins a productive economy and drives opportunity.
“The collaborative nature of Skills England that has partnerships with employers at its heart, is particularly welcome. Businesses, as both customers of talent and drivers of evolving skill needs, must be central to this transformation.”
Bill O’Shea, vice president for EMEA for online learning platform Udemy, believes that any skills policy would need to address the “chasm” between leaders and their teams in terms of their readiness for artificial intelligence. Udemy’s research shows that 88% of employees see leadership as the key to unlocking AI, but 44% doubt their leaders’ readiness.
Skills-based hiring
Since the pandemic, there has been a growing call for employers to embrace skills-based hiring, rather than focusing on qualifications. Could a more flexible approach to what employers demand from candidates help fill those vacancies?
According to a recent survey by HireVue, 96% of employers are now looking at candidates’ ability to learn new skills, and assessing for transferable skills as roles evolve so quickly.
One in five has replaced asking for a CV with a skills-based assessment, something 83% of candidates are comfortable with.
O’Shea adds: “Done right, skills-based hiring should bring the nation’s skills in line with evolving business models, and only by squaring this equation can skills continue to be a driver of economic growth.”
“However, developing skilled workforces requires learning about what skills are actually needed for the local industries. It is through conversations between local employers and skills providers that providers can ensure the skills needs are met and talent are building the right skills.”
Online learning platforms could provide a useful bridge for this, he explains, enabling people to “learn from anywhere at their own pace”, democratising how people access training and meeting specific local needs.
“By focusing on skills rather than qualifications, individuals are better equipped for the demands of modern jobs, ultimately benefiting the economy and society as a whole,” agrees Riaz Moola, CEO of ed-tech company HyperionDev.
Moola believes the pledges made by Labour in its manifesto could mean greater investment in educational technology, which will help employers to be more competitive on a global scale in the long term.
He adds: “A skilled workforce is crucial to driving economic growth and innovation. If the new government can effectively implement their skills development policies, there is significant potential for enhanced public-private partnerships, improved employment rates, and technological advancements.”
Meeting future needs
Emily Rose McRae, who leads the Future of Work research team at analyst firm Gartner, believes there needs to be more focus on the skills employers will need in the long term, rather than addressing the current picture.
“Skills England is about meeting the current need, rather than the future need,” she says. “For all of this to work, you need employees to know what skills they might need in future roles, and they don’t always know this because of the way skills have evolved over time.”
With jobs rapidly changing thanks to AI and fast-moving economic shifts, there needs to be flexibility in how governments and employers build models of the skills they need in the future. Often there is an emphasis on how many workers with a particular qualification or certification will be needed.
Skills England is about meeting the current need, rather than the future need.” – Emily Rose McRae, Gartner
She adds: “We can model out certification needs in areas such as healthcare and construction by looking at population figures and project pipelines, but there are also lots of roles we could not have predicted would suffer a skills shortage five years ago.
“When new skills emerge, you can either get someone with the new skill or something adjacent. There’s a lot of opportunity for improvement here and employers are at differing levels of maturity.”
Broader remit
Many argue that Skills England must also have a wider remit than reforming how workers are trained for local and national employers’ needs.
Last year, the think tank IPPR found that many young people miss out on apprenticeship opportunities because there are “coldspots” across England.
Becs Roycroft, chief operating officer at training company mthree, says the body needs to deliver benefits for social mobility to ensure there is equity of access to training schemes.
“Making sure everyone, from new graduates to experienced professionals, learns the skills they need is a shared responsibility, not just for one organisation,” she says.
“Education partners, employers, and policymakers must work together to promote a joined-up approach to training, translating theory and passion into on-the-job skills.”
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