Scottish Government

Scottish Higher Education Funding Council (SHEFC)
report on contract research staff in Scottish higher education institutions

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Ministers asked SHEFC to report on contract research staff in the Council's ministerial guidance for 2002-03, and at the AUT Scotland annual conference in March 2003, Lewis McDonald made a commitment to publish the findings of the report, which we are now happy to do.

Publication of the report allows us to move towards a better-informed debate. It gives data in this form for the first time, and therefore is a useful starting point. We view it as a working document: data referred to in the report ranges between 1998-99 and 2001-02, which is before current legislation came into force (Fixed-term Employees Regulations 2002), and before guidance on this legislation was published. In addition, the data source for the report is acknowledged by SHEFC to be to an extent incomplete and unreliable; more robust data from the institutions is expected to be available from next year.

Lastly, the Scottish Executive's Higher Education Review contains a specific expectation that institutions will reduce as far as possible the use of short-term contracts. SHEFC are of course continuing to work on concrete initiatives with key stakeholders to ensure positive action is taken, and as the new legislation is taken on-board by institutions, and with the availability of more robust data on contract research staff, over time Ministers hope to see real improvements.

Scottish Executive
Enterprise, Transport & Lifelong Learning Department
Higher Education and Science Division

SCOTTISH HIGHER EDUCATION FUNDING COUNCIL
DONALDSON HOUSE
97 HAYMARKET TERRACE
EDINBURGH
EH12 5HD

TO: Scottish Executive
Enterprise Transport and Lifelong Learning
Higher Education and Science Division
Europa Building
450 Argyle Street
Glasgow G2 8LG

9 April 2003

Contract research staff

1 I am writing to provide you with a report on contract research staff in Scottish higher education institutions. This was requested in the Council's ministerial guidance for 2002-03.

2 This is a complex area and the available data on contract research staff are difficult to interpret. We are seeking to encourage good human resource management practices in relation to contract research staff. This may mean keeping certain elements of the practice of employing research staff on fixed-term contracts, as there are benefits to be gained for both researchers and institutions where this is well managed. However, the Fixed-term Employees (Prevention of Less Favourable Treatment) Regulations 2002 will constrain institutions' use of this practice.

3 For several years, the Council has supported a range of measures for promoting good practice in relation to contract research staff, participating in the UK-wide Research Careers Initiative, and undertaking significant work on its own which culminated in a conference in December 2001.

4 This letter sets out the Council's action in the last year in relation to contract research staff, and developments at Scottish and UK level on this issue. It also considers the current numbers, distribution and other characteristics of contract research staff and sets out the Council's planned action on contract research staff in 2003-04.

Action taken by SHEFC

5 The Council has over the past year taken four main steps to encourage institutions to embed good practice in relation to contract research staff, and to improve the quality of data on the numbers, distribution and other characteristics of contract research staff. In doing so, we have attempted to complement rather than duplicate developments occurring at UK level.

New condition of grant

6 We have introduced a new condition of grant which requires institutions to devise and implement effective human resource strategies covering all staff, including contract research staff. We monitor institutions' performance in relation to the condition of grant through a range of sources of evidence, including institutions' strategic plans and separate returns.

Improving Higher Education Statistics Agency data on contract research staff

7 We are seeking to improve the data collected on contract research staff through the Higher Education Statistics Agency (HESA). We use HESA to collect statistical information from higher education institutions but, whilst we can use HESA data to estimate the position on contract research staff, it is not clear that we can identify all contract research staff using the information currently collected in the HESA individual staff return.

8 We have asked HESA to amend the notes of guidance for the individual staff return to ensure that institutions take a consistent approach to returning information on contract research staff to HESA. This will allow us to be more confident in future about the information we produce on contract research staff and avoid the need to impose an additional layer of data collection on institutions. HESA is currently finalising the details of changes to its individual staff return, and intends to introduce a revised staff return for the 2004-05 session. For further details regarding the issues with current HESA data on contract research staff, and the action that we have taken to improve this data, see annex A to this report.

Contract Research Online Survey

9 We are contributing to the funding of the UK-wide Contract Research Online Survey (CROS) project, which is developing a web-based tool for the design, delivery and administration of online surveys to contract research staff. CROS will enable institutions participating in the project to improve their data on contract research staff, and to benchmark their performance in this area with other participating institutions. CROS is also expected to be a valuable tool for institutions in developing their strategies in relation to contract research staff. As well as assisting individual institutions, this project will highlight good practice and areas for further development across the sector in relation to contract research staff. Four Scottish institutions participated in the first pilot phase of the project, and six are participating in the second phase. Institutions will not be required to participate in CROS surveys, and therefore CROS (unlike HESA) will not be able to provide comprehensive data on contract research staff across all institutions.

Supporting and developing research careers conference

10 We co-sponsored and participated in the UK wide Supporting and Developing Research Careers conference event on 5 March 2002. This event explored the latest developments in the Research Careers Initiative and Sir Gareth Roberts' report into the supply of science and engineering skills in the UK. It also provided a platform for the dissemination of best practice in supporting and developing research careers, and considered how to accelerate the pace of change and spread improvements through institutions in relation to contract research staff.

Developments at Scottish and UK level

11 At Scottish and UK level, the profile of the employment and management of contract research staff has been raised in the past year. For instance:

• the Fixed-term Employees (Prevention of Less Favourable Treatment) Regulations 2002 came into force on 1 October 2002;
• the Department of Trade and Industry has published general guidance for employers on compliance with the regulations;
• the Joint Negotiating Committee for Higher Education Staff (the national negotiating machinery for higher education staff) has published guidance on the Fixed-term Employee Regulations 2002 specifically for higher education institutions. The guidance was agreed with all the unions with members in higher education institutions in the UK; and
• Sir Gareth Roberts's report into the supply of science and engineering skills in the UK, the House of Commons Select Committee on Science and Technology's report into short-term research contracts in science and engineering, the Government's response to the Select Committee's report, and the Scottish Parliament Enterprise and Lifelong Learning Committee's final report on lifelong learning have all highlighted the issue of contract research staff.

Developments at Scottish higher education institutions

12 Institutions' 2002-06 strategic plans, and the information that institutions have provided in relation to the new condition of grant, indicate that institutions are by and large addressing the issue of contract research staff. For instance:

• seven institutions are either planning to revise (or have already revised) their policies for the use of fixed-term contracts, or are planning to reduce the proportion of research (and other) staff on fixed-term contracts significantly during 2002-06;
• three institutions indicate that they have already made substantial reductions to the proportion of research (and other) staff they employ on fixed-term contracts;
• five institutions have developed the management and career development of contract research staff, or are planning to do so within the planning period. Measures that institutions are undertaking include enhancing career structures and the training and development of staff, and the provision of induction for contract research staff; and
• institutions indicate that they are taking action in this area for a variety of reasons, including ensuring equal opportunities, recognition of the negative impacts of the widespread use of fixed-term contracts, and compliance with the Fixed-term Employees Regulations 2002.

Current situation regarding contract research staff

HESA

13 Although we may not be able to identify all contract research staff using the HESA individual staff returns, we can still use data from the returns to obtain some useful information regarding the current situation on contract research staff in Scottish institutions. However the task of interpreting this data on contract research staff is complex and difficult, since a range of different factors influence the numbers of research staff that institutions employ on fixed-term contracts. For instance, data on contract research staff should be considered in the context of the volume of research undertaken by institutions, and the level of income from research grants and contracts. When HESA has improved its data on contract research staff we will consider benchmarking it in relation to such factors affecting numbers of contract research staff.

14 HESA data indicates that:

• in Scottish higher education institutions, in terms of full-time equivalents, about 30% of all academic staff are contract research staff. This figure is slightly above the figure of about 26% for all UK higher education institutions. The explanation is likely to be that a higher proportion of Scottish institutions' total income comes from research grants and contracts, in comparison with institutions in the rest of the UK;
• the proportion of contract research staff compared to total academic staff varies greatly between institutions, with 27% to 40% at research-intensive institutions and generally less than 13% at non-research-intensive institutions (and in three cases less than 3%). We would expect this since research-intensive institutions have a higher proportion of research staff than non-research-intensive institutions;
• the total number of contract research staff in all Scottish institutions has increased between 1998-99 and 2001-02 from about 3,420 to about 3,940 full-time equivalents. The proportion of contract research staff (full-time equivalents) compared to total academic staff (full-time equivalents) has increased slightly from 27% to about 30% over this period. These increases are understandable when considered in the context of the success of Scottish institutions in achieving significant increases in income from research grants and contracts over this period, and are broadly proportionate to the increases in income from research grants and contracts;
• about 83% of the total full-time equivalent contract research staff in Scottish institutions are aged less than 40 years old, compared with 45% of all academic staff. Thirty-six percent of contract research staff are under 30, compared to 14% of all academic staff. This matches the expected picture of younger academics starting out on their careers;
• the proportion of contract research staff compared to total academic staff varies significantly between subject areas. It is highest in science, engineering, technological, clinical and medical-related subjects (with the highest proportion - about 53% in full-time equivalent terms - in the biological sciences). It is lowest in the arts, humanities and social sciences (about 5% to 9% in full-time equivalent terms in areas such as law, languages, education and creative arts and design);
• there is evidence (although there are issues surrounding this evidence - see annex A, paragraph 5.1) that a disproportionately high proportion of ethnic minority researchers are on fixed-term contracts, compared to the proportion of ethnic minority staff within academic staff overall;
• there is evidence that a disproportionately high number of women researchers are on fixed-term contracts, compared to the overall proportion of women within academic staff. For instance, in 2001-02, 45% of contract research staff were women, compared to only 35% of all academic staff; and
• on average, contract research staff in Scottish institutions have been in current service for about 3 years, and earn about 24k to 25k per annum. However, information on average salary in the HESA returns has been derived from broad estimates of staff earnings during the academic session. (See annex A, paragraph 5.2).

15 I attach at annex B a table of HESA data on contract research staff in individual Scottish higher education institutions.

16 Annex A to this report indicates why some of this HESA data should be treated with caution. The figures on individual institutions should be treated with particular caution. We will have a clearer understanding of the position across the sector and at individual institutions regarding contract research staff once HESA has introduced its revised individualised staff return.

CROS

17 In addition to the information provided by HESA, the initial pilot stage of CROS, whilst only involving a small number of institutions from across the UK, has highlighted several areas where institutions seem to be performing well in contract research staff employment practices, together with areas that may require further development. For instance, information from CROS suggests that there may be opportunities for some institutions to improve practice in relation to induction, staff review and training and development.

Taking the issue forward

18 We are aware from institutions' strategic plans and initial findings from CROS that, whilst institutions are addressing the management of contract research staff and taking steps to meet their obligations under the Fixed-term Employees Regulations, there are opportunities for institutions to further embed good practice in relation to this.

19 The Fixed-term Employees Regulations may reduce the number of staff in Scottish higher education institutions, including research staff, on fixed-term contracts. However, we recognise that many institutions may face difficulties in reducing the numbers of research staff on fixed-term contracts whilst fulfilling their responsibilities for the financial stability of their institutions. Research intensive institutions are likely to face greater challenges than non-research intensive institutions in relation to this issue, since they have a considerably higher number of research staff, and a higher proportion of their income may come from fixed-term research grants. The majority of institutions indicate in their strategic plans that they are planning to increase the income they receive from research grants and contracts, and this may limit their ability to reduce numbers of research staff on fixed term contracts.

20 In 2003-04 we will ensure that the sector is aware of its responsibilities under the Fixed-term Employees Regulations. In addition, we will continue to encourage institutions to embed good practice in relation to the management of contract research staff. In doing this we will work with stakeholders such as Universities Scotland, the recognised trade unions and the Universities and Colleges Employers Association to ensure that we take positive action in relation to contract research staff which complements, rather than duplicates, other work being done in this area. One way that we will do this is by organising a seminar to stimulate debate between institutions and other stakeholders as to the practical ways in which institutions can most effectively meet their obligations under the Regulations whilst fulfilling their responsibilities for the financial stability of their institutions. This seminar will be held on 17 June 2003 in Glasgow.

21 I hope that you find this report useful and informative. We will continue to report annually on the position on contract research staff, and anticipate that we will be able to provide higher quality information in future.

Roger McClure
Chief Executive

Annex A HESA data on contract research staff

1 HESA currently collects individual records for academic staff employed by higher education institutions for at least 25% of a full time equivalent. HESA has carried out a consultation on possible changes to its individual staff return, including changes to the coverage of the return, and it is now finalising the details of the changes which will come into effect for the staff returns for the 2004-05 academic session. The information on contract research staff in higher education institutions in this report has been extracted from the individual staff returns for 1998-1999 to 2001-02 (the latest available).

2 We have taken contract research staff to be academic staff employed to carry out 'research only' (rather than be employed for 'teaching only' or for 'teaching and research') on a fixed term contract rather than a permanent one. However, we are not certain that all contract research staff can be identified using these criteria. For instance, some institutions have tended to record their academic staff as being employed to carry out both teaching and research and have not necessarily attempted to separate out those employed to carry out research only. One consequence of this is that comparison between numbers of contract research staff at different institutions is difficult. Another consequence is that, since individual institutions could change their approach to recording contract research staff from year to year, trend data on contract research staff at individual institutions may have only limited value.

3 In order to ensure that institutions take a more consistent approach when returning information on contract research staff we have asked HESA to amend the notes of guidance for the individual staff return so that the notes make it clear that contract research staff should be recorded as 'research only'. This should enable us to more accurately identify contract research staff from HESA staff data.

4 An additional difficulty with using current HESA data to identify contract research staff is that, since the individual staff returns collected by HESA only cover academic staff employed for at least 25% of an FTE, the return may not cover all contract research staff. HESA has agreed that from 2004-05, it will collect information on all staff, including staff working for less than 25% of an FTE.

5 In addition to problems identifying contract research staff the information in HESA individualised staff returns on contract research staff with regard to ethnicity and salary should be treated with particular caution because:

5.1 Ethnicity. Although it is compulsory for institutions to complete the field recording ethnicity, they cannot force individual staff to provide this information. Therefore one of the options for this field is 'information refused'. About 20% of contract research staff have 'information refused' recorded for ethnicity. As a result HESA advises that any figures produced from its staffing return are derived from a subset which may not be representative of the total academic staff population regarding ethnicity.

5.2 Salary. HESA data does not provide the exact salaries for individual members of staff but instead indicates a broad salary range in which the staff member's salary lies. The data on salaries for contract research staff have been estimated by assuming that each member of staff is earning a salary equal to the mid-point of the range containing his or her salary and using this to estimate their total earnings during the session. Therefore these estimates should only be regarded as being very rough estimates.

ANNEX B HESA DATA ON CONTRACT RESEARCH STAFF

This data has been extracted from HESA individual staff returns for 1998-1999 to 2001-02. See annex A to this paper for information on HESA data on contract research staff, including reasons why this data should be treated with caution.