1. All images © Mat Wright www.britishcouncil.org1 April 2014 Geoff Fieldsend geoff.fieldsend@blueyonder.co.uk Meeting employer needs: responsiveness and relevance of the VET system

2. Cedefop study: cooperation between education and training and the labour market Map and analyse how VET systems and the labour market cooperate and communicate......to renew the content and profile ofVET provision and qualifications Antonio Ranieri 2

3. Substitution needs Replacement needs Net employment growth GROSS EMPLOYMENT FLOWS Labour reallocation in times of turbulence INACTIVITYINACTIVITY EMPLOYMENTEMPLOYMENT UNEMPLOYMENTUNEMPLOYMENT Between employment statusWithin employment  Job-to-job within industry sectors  Job-to-job between industry sectors Antonio Ranieri 3

4. Labour market change and training needs How many jobs? What VET / Education What skills / Occupations Market drivers Policy drivers Supply DemandDemand Antonio Ranieri 4

7. The UKCES: Employer Investment and Ownership  The UKCES is a research, policy and investment body sponsored by the Department for Business Innovation and Skills but more widely accountable  It is a ‘social partnership’ led by top level employers, trade unionists, colleges and universities  In 2011 it launched a range of new approaches to employer engagement  Employer Investment Fund  Growth and Innovation Fund  Employer Ownership of Skills (pilot)  All were clear departures from the current system giving greater control of funding and policy to employers www.britishcouncil.org7

8. The Employer Ownership Pilot Investment  £111m invested in 124 projects with 36 different organisations.  Six in seven proposals rejected  Matched by £103m of employer investment.  Mainly company led, business consortia  Assessment made by Commissioners Progress and proposals www.britishcouncil.org8  A second phase is now underway with greater emphasis on collaboration between employers, providers and trade unions

9. Principles and Proposals  Employer led partnerships without central funding or prescription  Employer made the customer through purchasing power  A stable skills system allows employers to make long term investment decisions  Better information on labour market outcomes underpinned by reformed qualifications  Impact of human capital investment measured and understood  Genuine employer-provider collaboration backed by joint investment and mutual goals Alongside a number of Government reports (Wolf on VET in schools; Richard on Apprenticeships; Whitehead on qualifications) the Employer Ownership Pilot has been a springboard for radical change www.britishcouncil.org9

10. Policy implications www.britishcouncil.org10 OCCUPATIONAL STANDARDS MANDATORY WORK EXPERIENCE ‘LMI FOR ALL’ APPRENTICESHIPS TAX BREAKS SECTOR SKILLS COUNCILS INDUSTRIAL PARTNERSHIPS PERFORMANCE ‘OUTCOMES ‘ NOT ‘OUTPUTS COLLEGE INFRASTRUCTURE AN INTEGRATED CO-INVESTMENT SYSTEM

11. Some issues to address and resolve  Accountability  Large employers and SMEs  Return on Investment  ‘Scaleability’  Risk  Loss of rigour  Deliverability  Politics  Scale of change  Fragmentation and portability Risk of “throwing out the baby with the bathwater”? www.britishcouncil.org11