8 CONCLUSIONS, GAPS AND RECOMMENDATIONS
8.1 This report has presented the available literature on the topic of skills utilisation mainly between 2000 and 2008 including publications and websites. This final chapter provides CFE's conclusions regarding the current evidence base, summarises the knowledge gaps and provides recommendations for further work to advance this agenda.
Conclusions from the evidence base
8.2 The concept of skills utilisation is becoming increasingly discussed in both UK and international literature, and is regaining currency in policy discourse. However, much of the literature related to the topic does not explicitly use the term (see chapter 2). Moreover, the majority of the literature focuses on skills acquisition rather than the utilisation of skills and as such evidence on skills utilisation is limited.
8.3 The literature review has been reliant on the sources identified using the key and associated terms (see Figure 3.1), and selection based on the document abstract. Due to a lack of definition and use of the term skills utilisation in the literature it was essential to make judgements regarding which documents are relevant for inclusion.
8.4 There is no established definition of skills utilisation. There appears to be a consensus within the literature that skills utilisation is 'ensuring the most effective application of skills in the workplace'. The following definition emerges from our analysis of the available literature for consideration by policy makers;
'Skills utilisation is about ensuring the most effective application of skills in the workplace to maximise performance, through the interplay of a number of key agents ( e.g. employers, employees, learning providers and the state) and the use of a range of HR, management and working practices. Effective skills utilisation seeks to match the use of skills to business demands/needs.'
8.5 Despite a general definition on what is meant by the term skills utilisation, approaches to its application have been varied (as the evidence presented on chapters 4, 5 and 6 showed) - across countries and within businesses - many of which are not recognised as skills utilisation within that particular country or business.
8.6 In order to present a disparate range of material in a meaningful way we have categorised the approaches on two key variables: the agents involved, and the driver for change. From this categorisation it has been possible to identify three bodies of evidence: the market driven workplace approach, the state driven workplace approach and the holistic approach. Literature identified related to the implementation and impact of each approach has been presented in earlier Chapters.
8.7 Approaches to skills utilisation appear to have originated within the workplace by individual employers striving to improve business performance through improved utilisation of the skills of their workforce (market driven workplace approach). Building on this, a number of countries have sought to encourage employers to effectively use the skills of their workforce and have developed an overarching strategy and specific programmes to support individual businesses in this quest (state driven workplace approach). In addition to this, there is evidence of some countries taking a broader perspective focused on raising national prosperity through involving employers, employees, learning providers and the state in skills utilisation (holistic approach) to achieve industry wide and national impacts on productivity.
8.8 Each approach represents a different focus (or lens) that can be taken to viewing the issue of skills utilisation. The approaches build on each other and share the workplace as the core structure for its implementation.
8.9 Within the approaches to skills utilisation, the vast majority of state interventions were one-off, time restricted initiatives delivered by governments through a discrete pot of funding. There was little evidence of state interventions to create a systematic change in the culture of skills utilisation within a nation.
8.10 With no established definition of skills utilisation, a range of approaches taken within different countries and workplaces, and much of the literature not using the term skills utilisation, it is challenging to establish its impact. In some cases, the evidence presented in the previous chapters is not conclusive in relation to the questions posed in the research specification (see Appendix A). Further research such as secondary analysis or primary data collection is therefore seen as required.
8.11 It is also important to note that a literature review is not able to give the answer as to what should be done to achieve effective skills utilisation where the practice is not well understood. It has, however, been possible to draw on the available literature presented to make suggestions for further work to progress this agenda.
Gaps analysis
8.12 As presented throughout this report, the evidence base on skills utilisation is limited in terms of its definition, implementation and impact.
8.13 In particular, while a range of literature exists on the approaches to skills utilisation, much of it fails to explicitly explore skills utilisation as an outcome. Although evidence exists of the implementation of HPW (market driven approach) there is limited evidence of the practical workplace interventions in the holistic approach to skills utilisation. Overall, the lack of evidence on the measurement, benchmarking and impact of skills utilisation makes conclusions on future policy direction more problematic.
8.14 The following summary points emerge as research and policy gaps from the available evidence base on skills utilisation.
- A lack of consensus and understanding of skills utilisation
- A need to assess the evidence on the role of skills utilisation including HPW in varying business performance
- Limited consensus in quantitative measures of skills utilisation
- Further evidence is required on the 'how' and 'why' of implementation of HPW across a broader range of sectors and business sizes
8.15 In addition to the summary points made above, the following gives more detail on the knowledge gaps that are particularly relevant to note:
Extent of skills utilisation
8.16 There is little consideration in the available literature of the extent of skills utilisation when compared between countries or across businesses.
Implementation and best practice
8.17 This report has highlighted evidence on the topic of HPW as a means to achieving skills utilisation. The evidence in this area is mainly limited to manufacturing and large businesses. There is limited information available regarding practical workplace examples of processes with the outcome of skills utilisation across a range of other sectors and business sizes.
8.18 There is a lack of evidence of practical examples of implementation within workplaces from the international evidence presented, where the focus tends to be on actions by the state.
8.19 Limited evidence was also identified that considers the links between skills utilisation and the role of individual employers in matching employees' skills to their job.
Impact
8.20 A majority of the available information on impact related to specific programmes or policies with little consideration of the overall impact of skills utilisation at a workplace, industry or national level.
8.21 A majority of the interventions identified had not been formally evaluated or were at too early a stage to identify any impact. Much of the international literature focused on descriptions of the strategy rather than activity and impact of that strategy.
8.22 Holistic approaches to skills utilisation were particularly difficult to consider in terms of impact due to a lack of available information, and the difficulty of measuring outcomes from such holistic approaches.
8.23 There was a lack of information identified on the overall measurement and benchmarking of skills utilisation, particularly in terms of indicators that could be replicated across time and sectors, and to measure the activity and take up of skills utilisation.
8.24 There was a lack of evidence on the links between skills utilisation and productivity, workplace matters, increased employer demand for skills, management practices and performance.
Implication of research gaps
8.25 Of the gaps identified we would recommend that in taking forward skills utilisation it will be important to ensure that as many as possible of these gaps are filled. In particular, more information is required in the following areas:
8.26 There is a need to better understand practical changes within workplaces that take place alongside state interventions. The workplace is at the core of all the approaches and the international evidence doesn't provide enough information to effectively evaluate the link between state interventions and workplace practices.
8.27 The majority of the international interventions have not been formally evaluated or at a too early stage to identify any impact. For administrations looking to learn from international examples more evidence is required on the impact of interventions rather than descriptions of activity.
8.28 Importantly, and as recognised by the UK Commission, to gain more information on working practices and impact, more information on the overall measurement and benchmarking of skills utilisation is required.
8.29 It is useful to note that the programme of work underway from the UK Commission will provide additional intelligence in the area of HPW. In particular, the project will provide further evidence on gaps identified in this review in relation to;
- Types of HPW practices put in place by a range of different employers
- The way in which HPW effects the performance of organisations and understand what sorts of practices have resulted in the most superior performance
8.30 The project will also focus on developing a 'business case' for employers to adopt HPW, an assessment of effectiveness of products and services that promote the take-up of HPW and the identification further policy interventions 11.
Recommendations moving forward
8.31 The disparate information on the topic of skills utilisation creates difficulties in achieving a consensus around approaches to effective skills utilisation, its implementation and impact. This needs to be addressed in order to move forward the agenda in each of the four home nations of the UK. Consideration of the following areas by respective home nation governments would particularly allow progress to be made:
Established definition
8.32 With no established definition, use and understanding of the topic remains low. Work is needed to firm up an agreed definition of skills utilisation to be used consistently in discourse regarding this agenda.
Agreed approach
8.33 To develop a successful approach to skills utilisation it is essential to agree and clearly articulate why it is required in the first place. As we have seen from the literature presented, different approaches to skills utilisation are driven by two main variables - the number of agents for delivery and the driver for change. Once these have been established the approach in terms of what activity needs to be undertaken becomes much clearer.
8.34 In order to establish the most appropriate approach for a nation to take forward it would be beneficial to undertake a comparative analysis of the relevance of each approach for the specific economic and social context of delivery, considering the advantages and disadvantages of each approach.
Defined roles and responsibilities
8.35 To achieve effective skills utilisation it is essential to identify clear roles and responsibilities for each agent or stakeholder involved. Gaining buy-in from all agents involved appears essential in achieving effective skills utilisation. It will be important to agree the agents involved; the interdependencies between them; and establish the drivers for involvement. Developing plans for successful engagement and dissemination of the agreed approach to skills utilisation would be beneficial.
8.36 Identification of work streams that could underpin a nation (regional, or sectoral) specific approach to skills utilisation could also be beneficial to take the skills agenda forward.
Framework for measurement
8.37 In order to achieve a consistent and comparable basis for measuring skills utilisation it would be useful to develop a framework for measurement. This would allow the benchmarking and tracking of progress on key indicators of success for any skills utilisation strategy.
Underpinning programmes
8.38 To deliver any strategy for skills utilisation is appears important to establish key activities or programmes for delivery which could include sector specific projects or a bespoke development fund. Gaining a fuller understanding of what works in increasing employer demand for skills and deployment, and what works in specific sectors and business types will be essential in informing the development of any specific programmes or fund underpinning a strategy for skills utilisation.
Links with wider policy levers
8.39 When pursuing a strategy towards skills utilisation it is important to gain a better understanding of the links between skills and wider economic development policy. This would highlight which economic development policy levers can be used to support the effective utilisation of skills in the workplace.
Delivery plan
8.40 Finally, it would be useful to consider the development of a delivery plan to support the delivery of any strategy and underpinning programmes or fund. This delivery plan could include detailed objectives, outcome and impact measures, identification of risks and challenges, strategies for engagement and milestones for delivery.