D2N2 Compact Steering Group Allen Graham Chief Executive, Rushcliffe Borough Council 16 March 2018

“Together we will create the workforce for now and for the future.” D2N2 “Together we will create the workforce for now and for the future.” Skills Strategy 2017 to 2020 Review of Skills Commission Production of a careers and skills action plan Skills matching portal Institute of Technology Next round of European Social Fund Skills Strategy The D2N2 Skills and Employment Strategy provides a comprehensive evidence base of the needs of individuals and the local economy across Derby, Derbyshire, Nottingham and Nottinghamshire. Meeting these needs requires us all to pull together, to work cohesively in partnership to create opportunities to deliver fit for purpose activities and effective and purposeful support. Through a strategic and joined up approach using joint investment we can deliver an effective and efficient skills and employment system which will benefit the local economy, local people and local business. Through our influencing powers we can help to strengthen better business performance, help to increase productivity, provide a joined up and simple employer engagement strategy, create opportunities for job creation and sustained employment, and provide the skills needed by people to further develop within the existing workforce. Over the next 3-years our plans will see us: Engage 3,600 employees and 1,500 SMEs through sector growth, create 300 SME placements and 500 higher apprenticeship roles, create 1000 new apprenticeships and support 800 SMEs to create apprenticeship positions. Support 11,000 unemployed people across D2N2, in additional 5,500 NEETs whilst providing 3,700 sustainable jobs for the unemployed. Provide business to business skills support to enable business growth for up to 500 SMEs and engage with 600 employees. Develop a higher skills programme including the development and delivery of technical programmes to support our growth sectors and employment sectors. Implement the D2N2 Employability Framework and extend the Enterprise Adviser Network to provide joined up mechanisms for business to work with schools and colleges, to raise the image of key priority sectors and foster entrepreneurial behaviour.

D2N2 skills mismatch There were 79,930 professional jobs and 54,550 technical job vacancies in D2N2 advertised during 2016 In 2016 there were an estimated 15,280 technical and 21,010 professional job vacancies in D2N2 that were ‘skill-shortage vacancies’ In D2N2 Employers had most issues filling technical roles in skilled trades, closely followed by machine operative roles The largest sector in terms of skills shortage vacancies for professional occupations was health and social work with 5,940 vacancies, accounting for 28% of the total. Engineering professionals accounted for more than 1 in 4 professional vacancies in D2N2 in 2016. The LEP commissioned the Centre for Cities to produce a report about the skills mismatch in D2N2. This work involved analysing more than 400 college-based courses, almost 200 apprenticeships frameworks and pathways, and around 200 technical occupations. In 2016 there were an estimated 15,280 technical and 21,010 professional job vacancies in D2N2 that were ‘skill-shortage vacancies’ – whereby employers found these difficult to fill due to not being able to find applicants with the appropriate skills, qualifications or experience

Apprenticeship Levy Short term Long term Spending the levy – are we maximising it in our organisations? Using of existing providers Acting independently Long term Maximising the levy Filling the skills gap and supporting local SMEs Commission providers on our terms Acting together Across the Nottinghamshire local authorities this equates to a significant investment in to apprenticeships.   All employers will receive an allowance of £15,000 to offset against payment of the levy. The basic calculation is 0.5% of any PAYE bill over £3m, offset by a £15,000 allowance: Apprenticeship training costs are banded from £3000 to £27,000, so the number of apprentices that the levy will fund is variable. It depends on the apprenticeship opportunity that is being provided. In addition to the levy there is a target of 2.3% of the workforce to be apprentices for all public sector organisations with a headcount of over 250. Implications for our organisations: Figures from ONS highlighted that across the Nottinghamshire local authorities there are currently 32,753 members of staff (Appendix 1). Therefore to meet the government’s target of 2.3% of the workforce headcount 753 apprenticeships are required in the 9 local authorities alone. If other public sector organisations are included this figure increases to 1712. This highlights the challenge that we face but also the fact that individually and collectively we are a significant local employer that can and should have a strong voice in Government. Apprenticeship target of 2.3% for Public sector organisations in Nottinghamshire alone amounts to approx. 1712 apprentices

D2N2 Compact; meeting the Public sector demand One of Compact objectives for 2018 is to work closely with the D2N2 LEP and to raise the profile of the Compact as a vehicle for delivery of the wider skills agenda What do we need to do meet the demand in the public sector: Other D2N2 Compact objectives: Share good practice Improving access to funding and other opportunities by sharing our collective knowledge Increasing the number of Apprentices working in public service in the two counties Additional priorities: Attract and retain talent and utilising better methods to get the message out there Succession planning Change perceptions of the sector Influence skills agenda in the locality Utilise better methods to get the message out there Social media LinkedIn University campus visits

CEC and YouNG Is the public sector engaging with each of these?

Where are we now? More Active labour market Differentiation Succession planning Continuity Differentiation Competition Retention of staff Increased productivity Unemployment Choice More Less People Stagnant labour market No succession planning No appetite to upskill No workforce development Requirement to up skill Investment in own people Difficulty attracting new talent Higher wages Less

The future…

What does this mean?