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The contents of this report form the evidence for, and recommendations to, the Scottish Executive on what the Employability Framework should contain. Publication is not an undertaking that the Scottish Executive will implement its recommendations. The findings of this report will be addressed by the Framework document when it is published later in the year
Recommendations of the Employment Demand Workstream
Labour Market Demand
The Workstream looked at the information currently available relating to employer demand in Scotland. Main sources included the recently published reports "Labour Marker Demand to 2008" and "Skills in Scotland 2004" produced by Futureskills Scotland. The Workstream drew on this information to identify current and likely future demand for labour in Scotland. The Group agreed the following -
Recommendation 1
In general the labour market works well and intervention is only required where there is a market failure. Many people are only out of work for a short term (more than 70% of Jobseekers in February 2005 had been unemployed for less than 26 weeks) and therefore we should use labour market information to focus our resources on those who need assistance to enter the labour market.
We recognise that the geography of Scotland will play a part in sectoral issues and that rural and urban areas will have their own particular problems to face, which would need to be taken into account in developing interventions.
Employer Engagement
Recommendation 2
To better meet employer needs, we recommend a form of common assessment is carried out early in the intervention process, to identify the skills a client has, what aspirations are held by the client and to identify the best interventions needed to match client with an employer. Although this may be considered more of a supply side issue, it would improve matching of the clients skills to an employers' requirements.
Employers also need to recognise that they may have to change their recruitment practices in order to fill their 'hard to fill' vacancies, and there is evidence within the Skills for Scotland Survey 2004 that this is already happening.
Recommendation 3
The Workstream recommends a 'lead agency approach' which would work with employers to fill their vacancies, organise work experience placements and to develop appropriate demand led training.
The Workstream does not recommend another layer of bureaucracy. The 'one contact' approach would need some form of co-ordinators role to be in place. Jobcentre Plus has been suggested as the best placed organisation in Scotland to provide this for three reasons:-
- JCP already have in place strategies and staff who specialise in the employer engagement field;
- have access to most of the clients we would wish to target; and
- already works in partnership with many agencies and organisations throughout Scotland.
However, we cannot impose a task of this size on any particular agency nor do we suggest a monopoly with engaging of employers. Where employers have an existing relationship already we are not suggesting a change. There should, however, be an option for employers to choose their method of engagement and with whom. The contact ( i.e. the organisation chosen by the employer to assist with their recruitment needs) would need to be flexible in working with other organisations.
Links would be established with other agencies, training providers and even recruitment agencies and lead to joined up working. This ultimately would lead to employers being provided with the best candidates to fill their vacancies. The contact will be knowledgeable of the employers business, knowing the skills sets and type of candidate the employer needs. Training needs would be discussed and where appropriate, training would be tailored to the needs of the business. In return the employer would offer certain guarantees for successful clients - work placements, interviews and even jobs, where appropriate.
A lead organisation would take responsibility for several areas, mainly a co-ordination role - signposting employers, using their knowledge of, and links within their own, and to other organisations to identify the best route available, recording an employers preference for contact and also to ensure that the service they receive meets a minimum standard. This lead role would ensure that legislative and other relevant changes are disseminated for employers and contacts using the most appropriate methods.
Again we are unable to impose this task and therefore we can only say that the lead agency would have to be one which would:
- operate throughout Scotland with an infrastructure to support and co-ordinate contact with employers,
- work in partnership with other agencies within Scotland;
- have strong links to the Department of Work and Pensions and Jobcentre Plus as employment i.e. employment rights and jobsearch, is reserved to the UK Parliament.
There is anecdotal evidence to support the partnership approach. Tesco have opened several stores - St Rollox and Cuckoo Bridge for example - using the partnership between Scottish Enterprise and Jobcentre Plus to work with Tesco:
- identifying what skills and training their prospective candidates needed,
- advertising the vacancies and screening for suitable candidates,
- joint funding of a bespoke training course with guaranteed interviews for successful trainees.
This approach was then successfully replicated with the opening of the Glasgow Fort
However, not all businesses will have large scale vacancies. An example of partnership working to address small but frequent numbers of vacancies, especially in a particular sector, is Construction Glasgow. This provides a matching service for employers to suitable clients who are registered with Construction Glasgow. The co-ordination role could feasibly incorporate this type of approach in specific areas for the SMEs who traditionally have less dedicated resources for HR and recruitment purposes, but who make up the majority of employers in Scotland.
Recommendation 4
We recommend that there is provision of suitable and effective aftercare and in-work support for both new and existing employees and their employers.. Employers need to know the problems to be faced, if any, and to be supported in making preparations for recruiting people further from the labour market. Some employers have their own employee assistance programmes but where necessary, support needs to be available. The Workstream considers support should generally be available for at least the first six months of employment for both new employees and their employers.
Many training provision contracts currently provide payments to training providers and job brokers for job outcomes at 4 weeks then 13 weeks. JCP's successful "Ambitions" programmes are an example where 6 month sustainability payments were payable. More focus on the sustainability, and also retention of a job should be considered. The cost and effort of getting a client into a job is wasted if the client leaves within weeks of obtaining work. It makes sound economic sense to put more funding into supporting the client to stay in work, rather than reclaiming benefits, and saving the employer the cost and effort of having to go through the recruitment process yet again.
For people currently employed who develop health or other problems which affects their ability to work, the same access to in-work support should be available where not supplied by their employer. This would prevent people falling out of work and prevent the cycle of worklessness starting.
Recommendation 5
On the advantages and disadvantages of targeting specific client groups, we recommend that, for employers, the aim is to put the best candidate(s) possible forward for their jobs, regardless of their client grouping. Employers already employ a diverse range of people at present and we would support having a working population which better represents the population of Scotland. We would suggest that it would be more appropriate for client interventions and engagement strategies be aimed at specific client groups where applicable.
Finally, the Workstreams' final objective was to consider the opportunities for, and threats to, achieving the recommended outcomes. The most obvious is the risk of a downturn in the economy, however this is not something the Framework can influence.
The main issue for the group is that people work together to achieve the best results - partnership working, whether between the funding organisations or between the training providers. Everyone involved in getting people into and sustaining employment will need to be clear about their objectives, where they bring the best value and where we can all work together better.