www.motor.org.uk Summary of Nations’ Employer Skills Surveys September 2009
Summary of Nations’ Employer Skills Surveys
September 2009
Version Final
www.motor.org.uk
Contents
Recruitment of young people to employment and Apprenticeships.......................... 17
Main Challenges anticipated by employers over next 12 months............................. 29
9 Annex 1 – Glossary of Terms .............................................................. 34
2
Introduction
The following document looks at employer skills surveys carried out in England, Scotland,
Wales and Northern Ireland and where available, identifies key findings at a sectoral level for automotive retail concerning skills gaps and shortages. This report seeks to summarise and highlight the nature and size of skills shortages and gaps in the sector, and to compare these to the UK economy.
The England survey is commissioned every two years by the Learning and Skills Council
(LSC) , the Scotland survey is commissioned every two years by Future Skills Scotland
and the Northern Ireland survey is commissioned every five years by the Department for
Employment and Learning (DELNI)
.The Welsh survey was last carried out in 2005 by Future
Skills Wales, updating earlier surveys in 1998 and 2003.
Comparisons have been drawn between the various nations, where comparable data is available. It should be noted that each nation’s survey was carried out at different times, referring to different years and the way in which results have been reported is not always the same. The first section compares incidences of vacancies, skills gaps and training across the nations and the remaining sections give greater detail for each of the individual nations.
It should be noted that while the data from the English (2007, 2005), Scottish (2006, 2008) and
Welsh (2005) surveys are available for the IMI’s footprint (SIC 50.10, SIC 50.20, SIC 50.30, SIC
50.40 & SIC 71.10) the Northern Ireland survey is based upon the motor retail industry and includes the sale of fuel (SIC 50.50) and excludes the rental and leasing of automobiles (SIC
71.10).
In order to analyse skills needs by sub-sector or by English region specific primary research will be required. This will provide more in depth analysis and the ability to draw robust comparison between the nations, English regions and sub-sectors in order to identify specific skills requirements.
Hard to fill Vacancies (HtFVs) are those vacancies described by employers as being hard to fill. Reasons often include skills-related issues, but can simply involve such aspects as poor pay or conditions of employment, or the employer being based in a remote location.
Skills Shortage Vacancies (SSVs) are those HtFVs which result from a lack of applicants with the required skills, work experience or qualifications.
1.2 Definition of the Automotive Retail Sector
The automotive retail sector footprint covers the activities of businesses in almost the entire downstream motor industry and all types of automotive vehicles. These vehicles include not only cars, but also motorcycles, commercial vehicles and passenger service vehicles. The following list of industry defined activities shows the breadth of activities undertaken in the sector:
•
New and used vehicle sales
•
Light vehicle maintenance and repair
•
Heavy vehicle maintenance and repair
1
All England data is taken from the 2005 and 2007 Employer Skills Surveys
2
Scottish data is taken from both the 2006 and 2008 surveys, some data available in 2006 was not available in the current release of the 2008 survey
3
Data on Northern Ireland is from the 2005 Employer Skills Survey
3
•
Accident repair
•
Body building
•
Roadside assistance and recovery
•
Fast fit operations
•
Lift truck maintenance and repair
•
Motorsport maintenance and repair
•
Parts distribution and supply
•
Motorcycle sales, maintenance and repair
•
Vehicle rental and leasing
Many businesses will operate across more than one of these activities. A vehicle dealership, for example, will sell new vehicles as well as maintain them, may rent them on a daily basis, offer company car contract hire or leasing, fast fit services, MOT inspections, sell and maintain used vehicles, have a bodyshop, and so on. A great many enterprises in the footprint do not fit neatly into activity categories.
The automotive retail sector comprises of almost 600,000
staff working across nearly 82,000
business units. The majority of these business units are micro businesses (85%
) employing
61% of the workforce in the sector.
1.2.1 Vehicle Manufacturer Influence
Vehicle manufacturers (VMs) have a large influence on the skills requirements of the sector.
VMs are dictating the pace of change of technology as they develop and release new vehicle makes and models into the marketplace. This also influences the equipment, tools and associated parts required to maintain vehicles. VMs have franchise arrangements in place with vehicle dealerships (from individual through to larger group organisations), which affords them the opportunity to dictate standards, processes and associated staff training provision. This extends throughout the dealership for technical and non-technical staff. Because manufacturers dictate the types of vehicles released into the marketplace, VMs also influence micro, small, medium and large independent businesses as they must align with VM workshop repair processes, procedures and utilise suitable equipment to carry out maintenance and repair.
4
Labour Force Survey, 2008 annualised average
5
Inter Departmental Business Register 2008
6
Inter Departmental Business Register 2008
4
2 Summary
In general, skills shortages and skills gaps in the sector are broadly in line with that for the economy as a whole. Given the current economic situation of the UK however, it is more important than ever that employers, employees and SSCs work hard at ensuring that the workforce is correctly and adequately skilled. As highlighted in the Leitch review and more recently UKCES’s World Ambition 2020 report, increasing the overall skills level of the UK workforce is paramount to ensuring that the UK remains an effective global player.
At a time when budgets are being squeezed by recession, investment in training is possibly not a high priority, but it should remain so in order that companies are ready to tackle new challenges once the economy starts to turn around. Slower business can potentially provide a good opportunity for taking the time to address skills gaps within existing employees, particularly in a sector where on the job training is so crucial. Skills shortages in the recruitment market are also likely to be reduced in times of recessions. The number of vacancies will usually be lower and the level of redundancies higher, meaning more skilled staff available per vacancy. The role of the IMI must be to remain committed to working with employers, providers and stakeholders throughout the United Kingdom, to help deliver a successful, fully skilled automotive retail sector.
3 Key Findings
•
Overall, the employer skills surveys of the individual nations suggest that the automotive retail sector has slightly higher levels of skills shortages than the economy at large.
•
In general, skills shortages are most likely to occur where employers are looking to recruit staff into either ‘skilled trades’ or ‘professional’ occupations. The automotive retail sector is characterised by a particularly high proportion of skilled trades staff: 34% of the workforce in the sector work in skilled trades occupations, compared with just 11% of employees
within the whole economy .
•
The proportion of automotive retail establishments reporting skills gaps is higher than the overall economy. This is probably, at least in part, reflective of the types of occupations that predominate in the sector.
•
Evidence from the English, Scottish and Welsh surveys demonstrate that technical skills and customer handling skills are among those most lacking.
•
In Northern Ireland, while detail about the nature of skills gaps is unavailable from the survey, there is a particularly high level of skills gaps reported in customer services occupations (32%).
•
A separate factor possibly influencing the level of skills gaps and shortages is the nature of establishments within the sector. The automotive retail sector has a high level of micro and small businesses which will have an impact not only upon skills needs throughout a business, but also upon the training that that business is able to provide. Both the English and Welsh survey (the former only at the national level, but the latter at the sectoral level) note that training expenditure and allocation increases with size of business.
•
The Welsh survey finds that smaller companies are disproportionately affected by skills shortages – this fact is not surprising given that while in a large scale organisation there will be a tendency to allow specialism in particular areas, in a micro sized business employees
7
Labour Force Survey annual average 2008
5
must be able to carry out a more diverse array of tasks. Finding people with the correct, extended skillset is potentially harder.
•
Employers in Northern Ireland exhibited much lower levels of skills shortage vacancies compared with the other nations.
•
Compared with England (the only other survey reporting skills gaps by occupation), NI employers found comparatively low levels of skills gaps within skilled trades staff.
6
4 National Comparison
4.1 Recruitment
At the time of writing the UK was in the throes of recession and it is well documented that vacancy levels have dropped dramatically since (see IMI Quarterly report, July 2009 for vacancy levels). Therefore vacancy levels reported in this section can be read in the context of the nations when not in recession.
The level of vacancies reported when the national surveys were conducted was similar throughout the sector. Skills surveys for Northern Ireland, Scotland and England all found around a 3% vacancy rate and Wales a 3.5% vacancy rate as a proportion of total sector employment. In Northern Ireland and England this was slightly higher than the national average of 2% while in Scotland and Wales it was the same as the national average of other sectors at
3% and 3.5% respectively.
4.1.1 Hard to Fill Vacancies (HtFVs)
The level of HtFVs as a proportion of employment is slightly higher in Scotland and Wales at
2% and 1.8% respectively, compared with 1% in both Northern Ireland and England. In all instances save for Wales this is comparable with the national averages for the whole economy.
In Wales the national average for the whole economy is slightly lower at 1.2% compared with
1.8% for IMI.
In England just over a third (36%) of all automotive retail vacancies are classed as hard to fill.
This is slightly higher than all vacancies across the nation at 30%. In Northern Ireland and
Scotland levels of HtFVs as a proportion of all automotive retail vacancies is higher at 54% and
51% respectively, although again these levels are comparable with the whole economy in those nations. In Wales the proportion of HtFVs is similar to that of Northern Ireland and Scotland at
51%, but is somewhat higher than for the Welsh economy at large which sees HtFVs at 35% of all vacancies.
In theory hard to fill vacancies provide an excellent means of identifying where firms are experiencing difficulty in recruiting to meet necessary production requirements. In practice however vacancies are not only difficult to measure, but it is also hard to assess whether they are genuinely hard to fill or whether this is merely reflective of other factors such as poor pay and conditions. In terms of these surveys HtFVs are measured by employer perception of whether a vacancy is or is not hard to fill. Furthermore it is not easy to assess the economic impact of those vacancies being hard to fill. At a time of rising unemployment it is probable that the UK will experience falling levels of both HtFVs and SSVs, but it is important that, as a result, skills development does not become neglected so as to ensure that the sector is properly prepared once the economic downturn abates.
Skills Shortage Vacancies (SSVs)
Automotive retail HtFVs in England are more likely to be attributable to a lack of skills than in
Northern Ireland, Wales and Scotland. 74% (2975) of all HtFVs in England are reported as
Skills Shortage Vacancies compared with 54% (218) in Wales, 49% in Scotland and just 24%
(63) in Northern Ireland. However, it should be noted that the level of HtFVs is significantly lower in England at 36% than in the other nations. Consequently the overall level of SSVs within the sector in England is not so different to that reported in the other nations. SSVs in England account for 27% of all vacancies, similar to that of Wales. Survey data appears to suggest that
Northern Ireland fares best overall, with skills shortages seemingly lower than in the other nations. Given though that the last N Ireland survey was carried out in 2005 it is difficult to draw major conclusions from this.
7
It is clear that skills shortages do exist within the automotive retail sector, but it is important to remember that there will never be a perfect match between supply and demand of skills.
Although the number of SSVs is generally higher than for the economy as a whole this is most likely reflective of the fact that a significantly higher than average proportion of the automotive retail workforce works within skilled trades. By their nature skilled trades and professional occupations are most likely to suffer from skills shortages. Consequently the figures presented should not give cause for undue concern, though it is important that as an SSC, the Institute of the Motor Industry continues to provide quality support to employers and employees alike in a bid to maintain and improve the skills of the automotive retail workforce.
Table 2.1 Number and Percentage of Vacancies by Type and Nation
Vacancies
The Institute of the Motor Industry (IMI)
N.I
2005
491
Wales
2005
796
Scotland England
2008 2007
1168 11200
Whole Economy
Vacancies as a % of employment
The Institute of the Motor Industry (IMI)
Whole Economy
Hard of Fill Vacancies (HtFVs)
The Institute of the Motor Industry (IMI)
Whole Economy
HtFVs as % of employment
The Institute of the Motor Industry (IMI)
Whole Economy
Hard to Fill Vacancies as % of all vacancies
The Institute of the Motor Industry (IMI)
Whole Economy
Skills Shortage Vacancies (SSVs)
The Institute of the Motor Industry (IMI)
Whole Economy
SSVs as % of all vacancies
The Institute of the Motor Industry (IMI)
Whole Economy
11629
2005
3%
2%
2005
267
6024
2005
1%
1%
2005
54%
52%
2005
63
2013
2005
13%
17%
37875
2005
3.5%
3.5%
2005
404
13242
2005
1.8%
1.2%
2005
51%
35%
2005
218
5405
2005
27%
14%
69776
2008
3%
3%
2008
596
34723
2008
2%
2%
2008
51%
50%
2008 n/a
16438
2008 n/a
24%
619675
2007
3%
2%
2007
4042
183472
2007
1%
1%
2007
36%
30%
2007
2975
130000
2007
27%
21%
Skills Shortages as % of HtFVs
The Institute of the Motor Industry (IMI)
Whole Economy
2005
24%
33%
2005
54%
41%
2008
49%
47%
2007
74%
71%
Figure 2.1 demonstrates the proportion of vacancies as a percentage of overall employment for nation and by type of vacancy. The nations are fairly comparable in terms of the proportion of skills shortage vacancies, though Northern Ireland seems to experience a considerably lower incidence of SSVs as a proportion of employment.
8
Figure 2.1
2%
1%
1%
3%
3%
2%
0%
5%
4%
4%
Vacancies as % of Employment by Nation
Vacancies as % of All Employment
3%
1%
0.2%
3.5%
1.8%
1.0%
Vacancies as a % of employment
HtFVs as % of employment
SSVs as % of employment
3%
2%
1.0%
3%
1%
0.7%
N.I
Wales Scotland England
Skills gaps exist where employers consider employees are not fully proficient at their job. Skills gaps are generally more common than skills shortages. The table below refers to the proportion of establishments by nation reporting skills shortages – that is the number of workplaces as well as the proportion of employees who are deemed to have skills gaps within those establishments.
The proportion of automotive retail employers reporting skills gaps in their establishments is higher than those reporting skills shortages for all four nations at 2%, 6%, 5% and 4% compared with 10%, 23%, 27% and 17% for Northern Ireland, Wales, Scotland and England respectively.
The proportion of automotive retail employees with skills gaps is higher in Northern Ireland and in Scotland than in England and Wales at 11% and 12% respectively compared with 5% and
7% in England and Wales respectively.
Table 2.2 Establishments and Employees Skills Gaps by Country
Establishments reporting skills shortages (%)
The Institute of the Motor Industry (IMI)
Whole Economy
N.I
2005
2%
2%
Wales
2005
6%
4%
Scotland England
2006 2007
5%
6%
4%
5%
Establishments reporting skills gaps (%)
The Institute of the Motor Industry (IMI)
Whole Economy
Employees with skills gaps (%)
The Institute of the Motor Industry (IMI)
2005
10%
9%
2005
11%
Wales
23%
18%
Wales
7%
2006
27%
22%
2006
12%
2007
17%
15%
2007
5%
Whole Economy 9% 6% 8% 6%
Though the level of skills gaps within the sector are generally higher than the average for their respective nations this should not give undue concern. There are several factors that probably contribute to the higher levels of skills gaps, not least the high concentration of skilled trades occupations within the sector. Furthermore, there a large proportion of the sector is made up of micro businesses (establishments with 0-9 employees). Employees within smaller firms will be
9
expected to have a far more diverse skill set than those working in larger organisations.
Consequently it is not surprising that some employees lack all the necessary skills for their role.
4.3 The Recruitment of Young People
The automotive retail sector accounts for a relatively high proportion of apprentices.
Independent Learning Records, kept by the Learning Skills Council, demonstrate that of all
Apprenticeships and Advanced Apprenticeships ‘starts’ in the academic year 2007 to 2008 some 6.1% of them were attributable to the automotive retail sector. This compares with a share of the overall workforce of 2% of the total number of employees in the UK.
Overall, where employers recruit young people to automotive retail sector jobs they are more likely to take school leavers than those who have undergone education at a higher level, while the reverse is true for employers in some other sectors of the economy. It is probable that this is down to the nature of the sector and the predominance of skilled occupations (1/3 of all jobs) which require significant ‘on the job’ training. Unless particularly specialised, a university education will not necessarily equip people with the necessary skills to carry out particular jobs within the sector. Other sectors of the economy will require a higher skill set at entry. The
English employer skills survey demonstrates that SSCs such as Asset Skills, e-Skills, Skills for
Justice and others predominately recruited young graduates, with the recruitment of 16 year old school leavers uncommon. It should be noted that figures for Scotland in the table below refer to school recruitment as a whole, while figures for England are for the recruitment of 16 year olds. Figures for Northern Ireland and Wales are unavailable.
Table 2.3 Recruitment of Young People by Nation
Recruitment from School
The Institute of the Motor Industry (IMI)
Whole Economy
N.I
2005 n/a n/a
Wales
2005 n/a n/a
Scotland
2006
35%
24%
England
2007
13%
7%
Recruitment from HE
The Institute of the Motor Industry (IMI)
Whole Economy
2005 n/a n/a
2005 n/a n/a
2006
4%
18%
2007
5%
10%
10
4.4 Training and Workforce Development
Data on training is available in different formats depending upon the nation’s report. In general, the level of training offered by employers in the automotive retail sector is similar to that offered at the various national levels.
The number of employers that offer training at all is slightly higher in England than in Scotland at 60% and 50% of all automotive retail employers respectively. Similar proportions of employers in England offer only off the job or only on the job training compared with employers in Scotland. Comparable data is unavailable for Northern Ireland.
Table 2.4 Training Statistics by Nation
Training
Train at all
IMI
Whole Economy
N.I
2005 n/a n/a
Wales
2005 n/a n/a
Scotland
2006
50%
57%
England
2007
60%
67%
Off the job only
IMI
Whole Economy
On the job only
IMI
2005 n/a n/a
2005 n/a
2005 n/a n/a
2005 n/a
2006
14%
10%
2006
18%
2007
15%
13%
2007
20%
Whole Economy n/a n/a 19% 21%
Fully comparable figures for Northern Ireland and Wales are not available, however, looking specifically at off-the-job training, 30% of all Northern Ireland and 52% of all Welsh automotive retail employers offer off the job training. It is not clear from the statistics whether this is employers that offer only off the job training or whether some/all of these employers may also provide on the job training. No figures for on the job training are available for Northern Ireland or
Wales In both cases the percentage of workplaces providing off the job training is slightly lower than the average for the whole economy at 34% and 58% for Northern Ireland and Wales respectively.
Table 2.5 Off the Job Training – Northern Ireland (2005)
Off the job training
% of workplaces providing off-the-job training
IMI
N.I
2005
30%
Wales
2005
52%
Whole Economy 34% 58%
11
The Individual Nations
5 England
The incidence of vacancies, as a proportion of employment in the automotive retail sector, has not changed over the past 2 years at 2.4% of all employment. The proportion of HtFVs is also little changed over the period at 0.9% of all employment in 2007 compared with 1.0% in 2005.
As a proportion of all vacancies however the proportion of HtFVs has fallen from 44% to 36%, but remains a touch higher than for the economy as a whole at 30% of all vacancies in 2007. A high proportion of those HtFVs are as a result of SSVs which accounted for 75% of all HtFVs in
2007, falling from 85% of all HtFVs in 2005. In numerical terms the number of HtFVs was little changed between surveys, but the number of SSVs fell somewhat between 2005 and 2007.
This suggests that there may have been some improvement in the level of skills shortages, but it should also be noted that UK unemployment levels were at their lowest in 2005, rising slightly by 2007. At times of low unemployment the labour market tightens and evidence of skills shortages is more obvious.
Table 3.1 Vacancies in England 2005 and 2007
Incidence of Vacancies
2007
2005
All Vacancies
Number of vacancies
Vacancies as a % of employment
Hard to Fill Vacancies (HtFVs)
IMI
11200
2.4%
Other
Sectors
619675
2.8%
IMI
10734
2.4%
Other
Sectors
573905
2.7%
Number of HtFVs
HtFVs as % of all vacancies
HtFVs as % of employment
Skills Shortage Vacancies (SSVs)
4042
36%
0.9%
183472
30%
0.8%
4703
44%
1.0%
203555
35%
0.9%
Number of SSVs
SSVs as % of all vacancies
SSVs as % of all HtFVs
SSVs per 1000 employees
2975
27%
74%
6
130000
21%
71%
6
4000
37%
85%
9
143125
25%
70%
7
Figure 3.1 demonstrates the number of automotive retail vacancies in 2005 and 2007. The percentages refer to the proportion of all vacancies contributed by both HtFVs and SSVs.
Figure 3.1 Number of Vacancies in England 2005 and 2007
Number of Institute of the Motor Industry Vacancies
12000
10000
8000
6000
4000
2000
0
44%
37% 36%
All Vacancies
HtFVs
SSVs
27%
2005 2007
12
The most cited impact of HtFVs by employers in the automotive retail sector was increased workload for other staff with 74% of all employers citing this in 2007.
Table 3.2 Impact of HtFVs cited by English Employers 2005 & 2007
Impact of hard to fill vacancies (%)
2007
2005
Increased workload for other staff
Delays developing new products/services
Loss of business/orders to competitors
Increased operating costs
Difficulties meeting quality standards
Difficulties introducing new working practices
Need to outsource work
Total
74
35
34
34
30
28
25
IMI
73
32
47*
37
29
31
22
Total
76
36
34
33
30
30
24
IMI
83
35
49
32
29
38
27
None 9 9 13 10
* Figures highlighted in yellow indicate a significantly higher result than for other sectors
The most frequently cited action to overcome Hard to Fill Vacancies is to increase the amount of money spent on advertising and recruitment. 44% of all automotive retail sector employers taking actions to overcome HfTVs cited this means in 2007, little changed from 2005.
Table 3.3 Actions to overcome HtFVs by English Employers 2005 & 2007
2007
2005 Actions taken to overcome HtFV (%)
Increased advertisement/recruitment spend
Using new recruitment methods/channels
Increased training to existing workforce
Increased/expanded trainee programmes
Redefining existing jobs
Increasing salaries
Making existing staff work longer hours
Nothing
Total
44
24
10
7
6
4
3
13
IMI
3
5
5
15
41
18
14
7
Total
7
4
3
12
43
32
9
8
IMI(
7
5
3
18
34
28
9
12
13
At a national level skills shortages are most likely to occur when employers are looking to recruit into skilled trades, professional and associated professional occupations. This applies to the automotive retail sector where there is a considerably higher than average density of SSVs for employers recruiting to skilled trades occupations. Both the 2005 and 2007 England surveys showed that vacancies within skilled trade occupations accounted for 57% of all SSVs in the automotive sector. This compares with the national average of 17% of all SSVs. Although at
57% this figure looks high, it can be largely attributed to the relatively large concentration of skilled trade jobs within the sector.
Table 3.4 Percentage of SSVs by occupation – England 2005 & 2007
SSVs by occupation (%)
Managers
Professionals
Assoc. Professionals
Administrative
Skilled Trades
Personal Service
Sales
Operatives
Elementary
Unclassified
Total
2007
10
8
9
1
6
15
17
7
17
10
100
IMI
18
9
3
0
2
1
4
6
57
0
100
Total
2005
IMI
11
10
10
1
4
10
18
7
17
11
100
13
8
5
1
4
2
6
4
57
0
100
Table 3.5 Percentage share of employment by major occupation – England
Occupation
2007
2005
Managers
Professionals
Assoc. Professionals
Administrative
Skilled Trades
Personal Service
Sales
Operatives
Total
16%
13%
14%
12%
11%
8%
8%
7%
IMI
21%
1%
5%
12%
34%
0%
12%
9%
Total
15%
13%
14%
12%
11%
8%
8%
7%
IMI
19%
1%
4%
13%
36%
0%
13%
9%
Elementary 12% 6% 11% 5%
Source: Labour Force Survey Annualised Average, 2005 and 2007, Crown Copyright
Labour Force Survey statistics for England for 2007 demonstrate that around 1/3 (about
160,000 jobs or 34%) of automotive retail employment is within skilled trades occupations. The
2007 survey estimated a total of 2,975 SSVs of which 57%, about 1,695 SSVs were attributable to skilled trades. This constitutes 1% as a proportion of all automotive retail skilled trades employment and demonstrates that skilled trades occupations do suffer the greatest level of skills shortages within the sector. However, it is not as high as the figure of 57% at first suggests - as a percentage of all automotive retail jobs by occupation, SSVs account for 0.7%,
0.5% and 0.5% of all sales, professional occupations and process plant & machine operatives jobs respectively.
In order to put into greater context the level of SSVs within automotive retail skilled trades occupations, it is important to compare the proportion of skilled trades SSVs in terms of all employment at the national level. Though skilled trades occupations account for only 17% of all
SSVs they also account for just 11% of all employment. Consequently skilled trades SSVs as a proportion of all skilled trades employment represents 0.8% of all skilled trades jobs within
England. So although skilled trades SSVs account for 57% of all SSVs in the automotive retail
14
sector in terms of actual employment this is not that much higher than the average, but rather appears inflated because of the high concentration of skilled trades jobs within the sector.
Table 3.6 Skilled Trades Employment 2007
Skilled Trades Employment
Skilled Trades SSVs
Skilled Trades Employment
Total
2007
22,100
2,651,897
IMI
1696
160,706
ST SSVs as % of all ST employment 0.8% 1%
Though the skills shortages within the skilled trades occupations accounts for a comparatively small part of all skilled trades jobs, it is possible that these are concentrated within particular sub-sectors. Consequently it would be useful to carry out further research in a bid to ascertain whether there is an even distribution of skilled trades skills shortages throughout the sector or whether they are particularly high in certain areas.
15
The proportion of employers (nationally) affected by skills gaps has decreased slightly in 2007 compared with 2005. According to the England 2007 survey, where staff are deemed not fully proficient this is most often a temporary/interim problem caused by lack of experience/length of time working. These skills gaps would be expected to decrease over time though there is more that employers could do given that 1/5 of all skills gaps are attributed to a lack of
training/development . The most common impact of skills gaps is an increased workload for other staff members.
Establishments in the automotive retail sector demonstrate slightly higher than average levels of skills gaps. In 2007 17% of those establishments surveyed noted staff with skills gaps. This compares with 15% for total UK employment. However, the actual number of employees with skills gaps is no higher than average and where there are skills issues they affect relatively few staff.
Table 3.5 Skills Gaps – England 2005 & 2007
Skills Gaps
Employees not fully proficient
% of workplaces reporting skills gaps
% of staff reported with skills gaps
% share of all skills gaps
2007
Total
1361100
15%
6%
IMI
24600
17%
5%
1.8%
Total
2005
1265000
16%
6%
IMI
26600
19%
6%
2.1%
% share of all employment 2.1% 2.1%
The top three areas of skills gaps in the automotive retail sector are in Technical and Practical
(57% 2007) Customer Handling (40% 2007) and Problem Solving (35% 2007). There are no areas in which the automotive retail sector exhibits much higher than average skills gaps.
Figure 3.2 Nature of Skills Gaps in England in 2007
Nature of Skills Gaps 2007
60
50
Whole Economy
IMI Automotive Skills
40
30
20
10
0
Skilled Trades occupations have considerably higher than average levels of skills gaps compared with the economy as a whole, but this is largely a reflection of the relatively higher
8
NESS 2007: Main Report, Page 65
16
concentration of employees that work within skilled trades occupations in the automotive retail sector. In 2007 Skilled Trades occupations accounted for 34% of all skills gaps reported in automotive retail employees, down a touch from 41% in 2005. This is compared with just 8% in the whole economy.
Figure 3.3 Skills Gaps by Occupation in England 2005 and 2007
Skills Gaps by Occupation 2007
40
35
30
25
20
15
10
5
0
Whole Economy
IMI Automotive Skills
Table 3.6
Skills Gaps by Occupation (%)
Skills Gaps by Occupation in England 2005 and 2007
2007
Total IMI Total
2005
Managers
Professionals
Assoc. Professionals
Administrative
Skilled Trades
Personal Service
Sales
Operatives
Elementary
8
7
19
7
17
12
9
7
14
100
34
*
20
8
8
10
2
4
13
99
8
9
19
8
20
11
7
6
12
100
IMI
41
*
19
7
8
8
1
3
12
99
5.4 Recruitment of young people to employment and Apprenticeships
At a national level 2 in 5 employers taking part in the 2007 survey had taken on at least one younger person aged 16-24 in the preceding 12 month period and just over a quarter (26%) had recruited a young person (under 24) to their first job from education. Around 1 in 7 employers
(14%) reported being involved with apprenticeships.
The recruitment of 16 year old school leavers is particularly common in the automotive retail sector and significantly greater than the national average. Employers in the sector are meanwhile somewhat less likely than the average to recruit those who have gone on to university education. It is probable that this is down to the nature of the sector and the predominance of skilled occupations (1/3 of all jobs) which require significant ‘on the job’ training. Unless particularly specialised, a university education will not necessarily equip people with the necessary skills to carry out specific jobs within the sector.
17
Table 3.7 Recruitment of young people by English Employers 2007 in the last 12 months
Recruitment of 16-24 year olds
2007
Under 24s straight from education
16yr old school leavers
17yr old college leavers
Total
26%
7%
12%
IMI
29%
13%
13%
Unders 24s from HE 10% 5%
The automotive retail sector is amongst the largest recruiters of young people onto apprenticeships. In the 12 months from August 2007 to July 2008
the automotive retail sector took on 6% of all apprenticeships recruited, markedly higher than the sector’s 2% share of the workforce.
Table 3.8 Apprenticeships in England 2007
Apprenticeships
2007
Apprenticeships offered
Last 12 mths undertook apps
Recruited to apprenticeships
Total
14%
8%
IMI
33%
19%
16-24yr 6% 16%
16-18yr 5% 14%
Employers operating in the automotive retail sector are somewhat more likely than others to believe that young people leaving education are poorly or very poorly prepared for work. One possible explanation for this is the comparatively high levels of young people recruited by the sector in to apprenticeships. Given the skilled nature of many of the sector’s jobs, it is not surprising that 16 and 17 year old school leavers are not work ready given that much of their training will involve learning skills on the job.
Table 3.9 % of English employers stating recruits are poorly prepared for work -
2007
% employers stating recruits poorly prepared for work
2007
IMI
16yr old school leavers
17yr old college leavers
Unders 24s from HE
Total
27
21
10
31
24
16
9
Compiled from apprenticeships starts statistics available at http://www.apprenticeships.org.uk/About-Us/Performancedata/2007-08.aspx
18
5.5 Training and Workforce Development
At a national level two thirds of all employers surveyed had provided some degree of training in the 12 months prior to the survey, reflecting little change in the number of employers providing training compared with the 2005 survey.
The 2007 survey found that, in general training activity increases markedly with the size of company: 92% of employers with 25 employees or more had funded or arranged training compared with just 54% of employers with fewer than 5 employees. This is probably reflective of the fact that larger companies are more likely to have training budgets and policies in place than smaller, micro companies.
Employers with skills gaps are more likely than those without to engage in training activity and are more likely to arrange and fund more extensive training for their employees. Employers reporting skills gaps also provide marginally more days training for their trainees than those without skills gaps (16 days on average compared with 15 amongst those with no gaps).
60% of employers in the automotive retail sector offered some form of training in 2007 in the 12 months preceding the survey, up slightly from 56% in 2005.
Table 3.10 Training Activity – England 2005 & 2007
Training Activity
2007
2005
Train at all
Off the job only
On the job only
Total
67%
13%
21%
IMI
60%
15%
20%
Total
65%
13%
19%
IMI
56%
14%
16%
Trainees as % of current workforce 63% 49%
Training Volume – England 2005 & 2007
61% 47%
Overall automotive retail sector employers provide a slightly lower number of days per capita than the national average, 8 days in 2007 compared with 10 for the economy as a whole.
Sector employers however provide higher numbers of days off the job training per trainee – 10 days in 2007 compared with the national average of 7 days.
Table 3.11
2007
2005 Training Volume
Days Training
Days training per trainee
Per Employee
Per Trainee
Off the job
Total
10
16
7
IMI
8
16
10
Total
8
12
6
IMI
7
14
8
Table 3.12
On the job 14
Training Type – England 2005 & 2007
Types of Training
Only induction/health & safety
Via FE college
Workforce training for nationally recognised qual.
Workforce training for NVQ
14
Total
6%
17%
11%
6%
2007
IMI
4%
19%
10%
5%
11 12
Total
6%
18%
12%
6%
2005
IMI
3%
18%
11%
5%
19
5.5.1 Training Plans and Expenditure
Employers in the automotive retail sector (as with other sectors exhibiting high levels of skilled trades occupations) were among the most likely to have few plans in place for training suggesting a more ad-hoc approach to training. This is possibly also reflective of the number of smaller businesses that operate within the sector and, by virtue of their smaller size are less likely to have these types of policies and plans in place.
Table 3.13 Training Planning – England 2005 & 2007
Training Planning (%) 2007
Total IMI
2005
Total IMI
Highly sophisticated (all plans)
Sophisticated (2 plans)
Unsophisticated (no plans)
Provides staff with APR
Formally assess individuals skills gaps
Measures impact of training
Aware of train to gain
25
20
31
63
57
68
28
20
14
43
53
50
70
23
24
19
34
58
55
72
17
15
47
48
48
73
Involved with train to gain 4 2
Training Expenditure – automotive retail sector employers’ expenditure on training as a proportion of all national training expenditure was 2%, in line with the share of total employment
– also 2%. Training expenditure per employee in the sector was slightly below the national average of £1,725 at £1,600 per employee. It is possible that due to the nature of jobs in the automotive retail sector, the lower skill set required at entry level and the fact that much training is gained through work based experience, that the number of days and expenditure allocated to official training under-represent amount of ‘training’ that employees actually receive.
Nevertheless, total training expenditure in the automotive retail sector has registered one of the largest increases since the 2005 survey, rising 30% overall and expenditure per employee was up 25% (£325) per employee compared with 2005. Moreover, in terms of training spend per trainee the sector registers above average at £3,275, probably reflecting the significant level of investment in apprentices and their associated qualifications.
Expenditure on training in the sector is weighted towards on the job training, suggesting greater reliance on less formal, on the job learning and development. In 2007 this accounted for 62% of all sector training expenditure compared with the average of 52.5%. The 2007 figure however represents a change compared with 2005 when training expenditure in the industry was more evenly balanced at 52% off the job and 48% on the job.
Table 3.14 Training Expenditure by English Employers 2005 & 2007
Training Expenditure
Total
% change from 2005
% of total expenditure
% of all employment
Training spend per emp
% change from 2005
On and off the job training expenditure
2007
Total
£38,648m
16%
£1,725
IMI
£740m
30%
2%
2%
£1,600
11%
Total
25%
IMI
2005
Total
£33,331m
£1,550
Total
IMI
£570m
2%
2%
£1,275
IMI
Total
Off the job
On the job
% off
% on
Ave training spend
Mean expend per training establishment
Average expenditure per trainee
£38,648m
£18,358m
£20290m
47.5%
£740m
£285m
£455m
38.5%
52.5% 61.5%
Total IMI
£39,700 £25,300
£2,775 £3,275
£33,331m
£16,807m
£16,524m
50.4%
49.6%
Total
£570m
£299m
£272m
52.5%
47.7%
IMI
£37,175 £21,125
£2,550 £2,770
20
Information in this section is based on data from the 2005 Northern Ireland employer skills survey. The next survey is planned in 2010 and is commissioned by DELNI (Department for education and learning, Northern Ireland).
The incidence of vacancies is slightly higher in the automotive retail sector than for the economy in Northern Ireland as a whole at 3% of all employment compared with 2%. Of those vacancies around half are classified as hard to fill vacancies and of those that are hard to fill around a quarter are as a result of skills shortages.
Table 4.1 Vacancies and Type – Northern Ireland 2005
Incidence of Vacancies
All Vacancies
IMI
Whole
Economy
Number of vacancies
% of workplaces reporting vacancies
Vacancies as a % of employment
Hard to Fill Vacancies (HtFVs)
491
13%
3%
11629
11%
2%
Number of HtFVs
% of workplaces reporting HtFVs
HtFVs as % of all vacancies
HtFVs as % of employment
Skills Shortage Vacancies (SSVs)
267
8%
54%
1%
6024
6%
52%
1%
Number of SSVs
% of workplaces reporting SSVs
SSVs as % of all vacancies
SSVs as % of all HtFVs
63
2%
13%
24%
2013
2%
17%
33%
SSVs as % of employment 0% 0%
As demonstrated in the table below the greatest levels of vacancies are seen in personal service occupations and in skilled trades, contributing 32% and 22% of total vacancies within the sector. It should be noted however that the figures reported for the personal services occupations are somewhat questionable as labour force survey statistics for Northern Ireland for 2005 suggest that there are no people employed within Personal Service Occupations within the Automotive Sector. Personal Service Occupations are mainly care related occupations.
Those that can form part of the automotive sector are housekeeping occupations and childcare and related personal services.
Skilled trades occupations meanwhile account for a substantial part of all automotive retail sector employment. Labour force survey figures for Northern Ireland for 2005 (the year that the survey was carried out) demonstrate that 40% of all jobs in automotive retail were in skilled trades. This compares with 18% skilled trades jobs as a proportion of all Northern Ireland employment. Given the concentration of skilled trades jobs within the sector it is not surprising that these occupations exhibit higher than average proportions of all sector vacancies.
21
Table 4.2 Distribution of vacancies by occupation and distribution of occupation by employees - 2005
Vacancy distribution by occupation
IMI
Other
Sectors
Managers & Senior Officials
Professional Occupations
Associate Professional & Technical Occupations
Administrative & Secretarial
Skilled Trades Occupations
Personal Service Occupations
Sales & Customer Service Occupations
Process, Plant & Machine Operatives
Elementary Occupations
2%
-
1%
6%
22%
32%
13%
14%
10%
5%
8%
9%
14%
10%
24%
7%
7%
17%
Employment Distribution by occupation NI Total
Managers & Senior Officials
Professional Occupations
Associate Professional & Technical Occupations
Administrative & Secretarial
Skilled Trades Occupations
Personal Service Occupations
Sales & Customer Service Occupations
Process, Plant & Machine Operatives
Elementary Occupations
IMI
14%
1%
0%
9%
40%
0%
9%
13%
14%
9%
12%
12%
14%
18%
8%
8%
9%
10%
Skills gaps are more common than skills shortages. In the automotive retail sector 1 in 10 employers reports skills gaps compared with just 2 in 100 reporting skills shortages.
Table 4.3 Skills Gaps – Northern Ireland 2005
Skills Gaps
IMI
Other
Sectors
Number of skills gaps
% of workplaces reporting skills gaps
2028
10%
49089
9%
Skills gaps as a % of employment 11% 9%
The automotive retail sector sees higher than average levels of skills gaps in skilled trades occupations, sales and customer services and in process, plant and machine operative occupations than the economy as a whole. Skills gaps among those in sales & customer services appear particularly high with 1 in 3 of all skills gaps found among these occupations. It is difficult to say whether this reflects a particular problem as there is little to compare it to. The only other survey providing a breakdown of skills gaps by occupation is England which showed that 20% of all sales and customer service staff have skills gaps. Though information is not available about the actual nature of skills gaps for the sector in Northern Ireland, the surveys for the other three nations showed employers consistently finding skills gaps in customer handling.
Conversely the number of employers reporting skills gaps among skilled trades occupations, though higher than the average, appears low considering the high density of skilled trades occupations within the sector. In 2005 40% of all automotive retail employment was within skilled trades occupations. This coupled with the low level of SSVs witnessed in Northern
Ireland, compared with the other nations suggests that the skills of automotive retail employees is better than in other nations. It is difficult however to draw meaningful comparison given that the surveys were carried out at different times, with comparatively different sample sizes.
22
35%
30%
25%
20%
15%
10%
5%
0%
Table 4.4 Skills Gaps by major occupation group 2005
Occupational pattern of internal skills gaps
Figure 4.1
Managers & Senior Officials
Professional Occupations
Associate Professional & Technical Occupations
Administrative & Secretarial
Skilled Trades Occupations
Personal Service Occupations
Sales & Customer Service Occupations
Process, Plant & Machine Operatives
Elementary Occupations
IMI
7%
6%
3%
6%
13%
1%
32%
19%
12%
Other
Sectors
10%
8%
8%
12%
8%
10%
18%
12%
13%
Skills Gaps by major occupation group – Northern Ireland 2005
Skills Gaps by Occupation 2005
IMI Automotive Skills
Whole Economy
6.3 Training and Workforce Development
Off the Job Training
Similar proportions of automotive retail sector employees received off the job training compared with the economy as a whole; 45% vs 42%. The most common off the job training provided by employees in the sector was job specific. A higher proportion of employers provided training in technology in the automotive retail sector than for the whole economy. This is to be expected given the level of technology used within the sector and the fact that this technology is constantly changing and advancing requiring high levels of technological training to keep employees and the business up to date with current practices.
23
Table 4.4 Off the job training type – Northern Ireland 2005
Off the job training type
IMI Other Sectors
Job specific
Training in new technology
Health & safety/First Aid training
Induction
Management
Supervisory
81%
73%
65%
43%
41%
34%
85%
53%
76%
53%
41%
35%
Sector employers in Northern Ireland were most likely to use private training providers of external consultants to provide the necessary training (59% compared with 61% for the whole economy.
Table 4.5 Off the job training providers – Northern Ireland 2005
Providers of off-the-job training
IMI Other Sectors
Private trainer/external consultant
Staff on site
Training centre owned by organisation
Industry body/professional association
FE college
Voluntary sector training provider
HE university
59%
45%
42%
41%
32%
5%
2%
61%
46%
37%
33%
27%
14%
10%
24
7 Scotland
The information in this section is taken from two sources. One is a sector specific report on the
Automotive Retail Sector published by Futureskills Scotland (FSS) in 2007. The report is based on data from the Scottish Employer Skills Survey 2006. The second source is the Scottish
Employer Skills Survey 2008.
7.1 Recruitment
The 2008 SESS demonstrated that the level of vacancies in the automotive retail sector was similar to that of the Scottish economy as a whole at 3% of employees. Though previously
(2006) characterised by a higher than average level of HtFVs relative to the wider economy the
2008 survey found that 51% of all automotive retail vacancies were HtFVs compared with 50% for the economy at large.
SSVs accounted for around half of all automotive retail HtFVs in 2008, up somewhat from the
2006 survey where SSVs contributed 41% of all HtFVs.
Table 5.1 Vacancies - Scotland 2006 and 2008
Vacancies 2006
IMI
2006
Other Sectors
2008
IMI
2008
Scotland
Vacancies as % of all employees
HtFVs as % of all employees
HtFVs as % of all vacancies
3%
2%
67%
4%
2%
43%
3%
2%
51%
3%
2%
50%
SSVs as % of HtFVs 41% 61% 49% 47%
The figure below demonstrates the total number of automotive retail vacancies, HtFVs and
SSVs in 2008 as estimated by the SESS 2008
.
Figure 5.1 Vacancies - Scotland 2008
Num ber of IMI Autom otive Skills Vacancies
1400
1200
1000
800
600
400
200
0
51%
25%
All Vacancies
HtFVs
SSVs
2008
10
It should be noted that actual numbers of SSVs were not reported in the SESS 2008 and have consequently been calculated from the percentages.
25
The 2006 survey demonstrated that skills gaps were generally more common than skills shortages with 1 in 4 employers (2006) reporting skills gaps compared with just over 1 in 20 reporting skills shortages. Data for 2008 is unavailable for the number of workplaces reporting skills shortages, but the number of sector workplaces reporting skills gaps was unchanged at
27%.
Table 5.2 Skills shortages and skills gaps - Scotland 2006 and 2008
Skills Shortages and Skills Gaps
IMI Other Sectors
2008
IMI
2008
Scotland
Skills Shortages as % of employees
Skills Gaps as % of employees
% of workplaces reporting Skills Shortages
1%
12%
5%
1%
8%
6%
1%
9% n/a
1%
8% n/a
% of Workplaces reporting Skills Gaps 27% 22% 27% 20%
The table below outlines the skills most frequently reported as lacking by employers in the automotive retail sector compared with the whole of the Scottish economy. Most often lacking were skills in planning and organisation, technical and practical skills and problem solving skills.
This is little changed from 2006 to 2008.
Table 5.3 Nature of skills gaps - Scotland 2006 and 2008
Skills Lacking in Employees with Skills Gaps
2006
IMI
2006
Other Sectors
2008
IMI
2008
Other
Sectors
Planning and Organising
Other technical & practical skills
Problem solving
Customer handling
Team working
64%
62%
55%
50%
42%
54%
46%
54%
55%
50%
Oral communication
Figure 5.2
39%
Nature of skills gaps - Scotland 2008
43%
53%
53%
53%
52%
44%
32%
54%
44%
52%
52%
47%
44%
Nature of Skills Gaps 2008
65%
55%
IMI
Other Sectors
45%
35%
25%
15%
5%
-5%
26
The 2008 survey found that the majority of Scottish employers found that skills gaps caused them no problems (57% compared with 33% in 2006) or only minor problems (35% compared with 50% 2006). 33% of automotive retail sector employers meanwhile found that skills gaps had a major impact, 32% a minor impact and 28% no impact. Comparable figures for the automotive retail sector were unavailable in 2006, but for those employers in the automotive retail sector (2006) who reported that skills gaps had a major/minor impact the most frequently cited outcomes were difficulties in meeting customer service objectives and increased operating or running costs. The most often cited impacts of skills gaps by employers in 2008 were increased operating or running costs, loss of business to competitors and difficulties in meeting required quality standards.
Table 5.4 Impact of skills gaps - Scotland 2006 and 2008
Impact of Skills Gaps 2006 2008
Provided further training
Relocated work within the company
Changed working practices
Increased/expanded trainee programme
Increased recruitment
Expanded recruitment channels
Difficulties meeting customer service objectives
Increased operating/running costs
Loss of business/orders to competitors
Difficulties meeting required quality standard
Delays developing new products/services
Difficulties introducing technological change
33%
32%
26%
25% n/a
19% n/a
51%
51%
50%
36%
35%
Difficulties introducing new working practices
Action Taken to Overcome Skills Gaps 2006
IMI
23% 33%
The 2008 survey found that the predominant action to overcome skills gaps by automotive retail sector employers was to relocate work within the company (49% of employers responding to skills gaps). This was up significantly compared with the earlier survey in 2006 at 15%. Figures in 2008 pertaining to those employers providing additional training to brook skills gaps was not deemed robust enough to publish. In 2006 this was the predominant response to skills gaps
(76% of employers).
Table 5.5 Employer action to overcome skills gaps - Scotland 2006 and 2008
2006
Other Sectors
2008
IMI
2008
Other
Sectors
76%
15%
36%
47%
20%
13%
81%
20%
43%
51%
18%
14% n/a
49%
43%
26%
26%
25%
90%
29%
53%
21%
21%
22%
7.3 Training and Workforce Development
In 2006 automotive retail sector employers were similarly likely to have arranged/funded staff training as those in other sectors (61% automotive compared with 66% for all sectors). The table below outlines the type of training offered by those who reported funding/arranging training for staff. The most cited reasons by sector employers for not offering training was because staff were deemed fully proficient (41% - 2006, 47% 2008) or because no training was required by the business (36% - 2006, n/a 2008).
Table 5.6 Workforce training - Scotland 2006 and 2008
Training 2006
IMI
2006
Other Sectors
2008
IMI
2008
Scotland
On the job only
Off the job only
Both
29%
20%
50%
24%
18%
57%
18%
14%
38%
19%
10%
36%
27
7.3.1 Off the Job Training
Similar proportions of sector employees received off the job training compared with the economy as a whole 45% vs 42% in 2006 and 41% compared with 44% in 2008. As demonstrated in the table below, the most common off the job training provided by employees in the sector was job specific (figures for 2006 only are available). In both 2006 and 2008 a higher proportion of employers provided training in technology in the IMI sector than for the whole economy. This is unsurprising given the evolving and advancing nature of technology used within the sector.
Table 5.7 Type of off the job training - Scotland 2006 and 2008
Off the job training type 2006 2006 2008 2008
IMI
Other Sectors
IMI
Scotland
Job specific
Training in new technology
Health & safety/First Aid training
Induction
Management
81%
73%
65%
43%
41%
85%
53%
76%
53%
41% n/a
66%
52%
40%
28%
84%
51%
69%
50%
38%
Supervisory 34%
2006
35% 27%
2008
32%
Automotive retail sector employers in Scotland were most likely to use private training providers or external consultants to provide the necessary training, in 2006 - 59% compared with 61% for the whole economy and in 2008 52% compared with 63%.
Table 5.8 Off the job training by provider - Scotland 2006 and 2008
Providers of off-the-job training 2006 2008
IMI Other Sectors IMI Scotland
Private trainer/external consultant
Staff on site
Training centre owned by organisation
Industry body/professional association
FE college
Voluntary sector training provider
HE university
Table 5.3
59%
45%
42%
41%
32%
5%
2%
61%
46%
37%
33%
27%
14%
10%
Off the job training by provider - Scotland 2008
52%
37%
20%
40%
40% n/a
1%
63%
53%
35%
34%
26%
18%
11%
Providers of off-the job training 2008
60%
50%
40%
30%
20%
10%
0%
Automotive Skills
Other Sectors
28
7.4 Recruitment of young people to employment
In 2006 labour turnover in the automotive retail sector was lower than in other sectors at 16%, compared with the rest of the economy in Scotland. This suggests that staff retention in Scottish automotive retail is better than average.
In 2006 78% of sector employers had recruited in the previous 2 to 3 years compared with the average for the whole economy of 75%. Of employers that had taken on new staff sector employers were on the whole more likely to recruit a person into their first job from school and less likely to have recruited a person in to their first job from university than employers in other sectors. This is a reflection of the importance of apprenticeships as an entry point to the sector and as a means for skilling the automotive retail workforce.
Table 5.9 Recruitment activity – Scotland 2006
Recruitment Activity 2006
IMI
2006
Other Sectors
Recruited in last 2/3 years
Recruit to first job from school
Recruitment from FE
Recruitment from University
78%
35%
13%
4%
75%
24%
16%
18%
7.4.1 Apprenticeships
Overall in 2006 automotive retail sector employers were considerably more likely to participate in the Modern Apprenticeship scheme than employers in other sectors of the economy. 33% or
1 in 3 of automotive retail sector employers participates in the scheme compared with just 8% for the economy as a whole.
7.5 Main Challenges anticipated by employers over next 12 months
When asked to identify their main challenges the foremost issues for automotive retail employers in Scotland in 2006 over the preceding 12 months following the survey was keeping up with changes in technology and the cost and price of materials/overheads. Attracting appropriately skilled staff ranked 10 th
, cited by 9% of employers.
In 2008 the predominant challenges anticipated by employers in the automotive retail sector were fuel prices and the downturn in the economic climate.
Table 5.10 Employer perceptions of upcoming challenges - Scotland 2006 and 2008
Main Challenges anticipated by employers over the next 12 months
2006
IMI
2006
Other Sectors
2008
IMI
2008
Scotland
Keeping up with changes in technology costs/prices (materials/overheads/products etc)
Cost of Expanding/obtaining new facilities
Increasing competition from within Scotland
Increasing competition from outside Scotland
Downturn in Economic Climate
Fuel Prices
26%
18%
15%
14%
12% n/a n/a
8%
4%
9%
8%
4% n/a n/a n/a n/a n/a n/a
1%
12%
22%
3%
1% n/a
5%
3%
14%
10%
29
8 Wales
The information in this section is taken from Future Skills Wales 2005 Sector Skills Survey.
The incidence of vacancies is the same in the automotive retail sector as that for the economy in Wales as a whole at 3.5% of all employment. Of those vacancies around half are classified as hard to fill vacancies and of those that are hard to fill around a half are as a result of skills shortages.
Table 6.1 Vacancies and Type – Wales 2005
Incidence of Vacancies
All Vacancies IMI
2005
Other Sectors
Number of vacancies
Vacancies as a % of employment
Hard to Fill Vacancies (HtFVs)
796
3.5%
37875
3.5%
Number of HtFVs
HtFVs as % of all vacancies
HtFVs as % of employment
Skills Shortage Vacancies (SSVs)
404
51%
1.8%
13242
35%
1.2%
Number of SSVs
SSVs as % of all vacancies
SSVs as % of all HtFVs
SSVs as % of all employment
218
27%
54%
1.0%
5405
14%
41%
0.5%
The number of establishments reporting vacancies rose slightly between 2003 and 2005, both for the Welsh economy as a whole and for the automotive sector. The UK unemployment rate was however at it lowest in 2005 and it is therefore no surprise that there should have been a slight rise in the number of vacancies as the labour market tightened. The proportion of HtFVs was unchanged for establishments in the automotive sector, though the % of establishments reporting SSVs fell slightly to 9% in 2005 from 10% in 2003. The proportion of automotive retail establishments reporting SSVs remained higher than for the economy as a whole, but this probably reflective of the greater demand for skilled trades occupations within the sector.
Unfortunately robust figures for SSVs by occupational breakdown were not available given to the small sample size.
Table 6.2 Comparison of establishments reporting vacancies 2003 & 2005
Establishments with vacancies 2003
Wales
2005
Wales
% with any vacancies
% with HtFVs
Automotive
17%
12%
25%
15%
Automotive
19%
12%
21%
10%
% with SSVs 10% 6% 9% 4%
The 2005 survey found that smaller establishments were disproportionately affected by recruitment problems with establishments of 1 to 9 employees seeing 62% of all vacancies while accounting for only 39% of all sector employment. In terms of HtFVs and SSVs smaller establishments also saw the greater share at 61% and 63% respectively. It is possible that this is due to the nature of jobs within a smaller firm where employees are expected to have a wider range of skills and carry out a more diverse array of tasks than in larger establishments where there is scope for greater specialisation.
30
Table 6.3 Share of vacancies by size of establishment – automotive retail sector
Summary of reported automotive vacancies by employee size band
1-9
% share of total employment
% share of vacancies
Total vacancies as % of employment
% share of HtFVs
Total HtFVs as % of employment
% share of SSVs
39%
62%
6%
61%
3%
63%
10+
61%
38%
2%
39%
1%
37%
The automotive retail sector sees a slightly higher incidence of skills gaps than the Welsh economy as a whole. In 2005 23% of all automotive retail establishments reported having employees with skills gaps compared with 18% for all Wales. This represents a slight increase on 2003 when 19% of all automotive retail establishments reported skills gaps. The proportion of automotive employees with skills gaps was 7% in 2005, falling considerably from 21% in
2003. This drop was in line with the economy as a whole which saw a fall from 17% of all employees in 2003 to 6% in 2005.
Table 6.4 Skills Gaps – Incidence, type of skills lacking and measures taken to overcome them
Skills Gaps
Incidence of skills gaps
Establishments
% of employment
Skills Most Lacking
2005
Automotive
23%
7%
Wales
18%
6%
Wales
Other tech & practical skills
Customer handling skills
Problem solving skills
General IT user skills
Management Skills
Team working skills
Communication skills
Measures taken in response
Automotive
73%
63%
61%
53%
51%
46%
44%
52%
57%
58%
40%
40%
49%
49%
Wales
Further workforce training
Increased trainee programme
Changed working practices
Reallocated work within company
Increased recruitment
Expanded recruitment channels
Automotive
81%
50%
47%
40%
34%
17%
84%
50%
59%
51%
34%
23%
The skills most likely to be lacking according to automotive retail employers were other technical and practical skills (these can range from generic to specific skills such as car mechanic skills, product knowledge, etc), customer handling and problem solving skills.
The measures most commonly taken to overcome these problems were increasing training, changing working practices and reallocating work within the organisation.
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8.3 Training & Workforce Development
The number of establishments offering ‘off the job’ training is marginally lower in the automotive sector than for the economy as a whole at 52% compared with 58%.
Within the automotive sector training was most likely to be provided for skilled trades occupations (71% of those providing training, compared with 19% at the national level. Training was also likely to be funded and arranged for managerial positions 57%, compared with the average of 65%.
Table 6.5 Off the job training provision – all establishments
Training Provision 2005
All Establishments Automotive Wales
% of establishments
By Occupation Group
52% 58%
Wales
Managerial
Professionals
Assoc professionals
Admin/secretarial
Skilled trades
Personal service
Sales/customer service
Transport & machine operatives
Automotive
57%
6%
8%
23%
71%
2%
23%
11%
65%
25%
15%
35%
19%
12%
22%
9%
Elementary occupations 4%
2005
17%
Training provision was more likely to be provided by larger organisations. 83% of businesses with more than 10 employees offered training compared with just 46% of businesses with between 1 and 9 employees. This is not surprising given the larger budgets and greater scope for planning provided available to larger organisations. Skilled trades and managerial occupations were again the most likely to receive training.
Table 6.6 Off the job training provision by firm size
Training Provision
By Firm Size 1-9 10+
% of establishments
By Occupation Group
46% 83%
Wales
Managerial
Professionals
Assoc professionals
Admin/secretarial
Skilled trades
Personal service
Sales/customer service
Transport & machine operatives
Automotive
51%
1%
3%
14%
73%
1%
12%
8%
74%
18%
21%
48%
68%
2%
51%
20%
Elementary occupations 0% 15%
Of those employers that did not provide off the job training the most commonly cited reasons were that staff had sufficient skills to do their job (83%) or that other training types were preferred, for example ‘on the job’ training (53%). 40% of employers also blamed time constraints and 35% a lack of available information.
32
Table 6.6 Barriers to off the job training provision
Barriers to off the job training provision
Staff have sufficient skills for their job
Other training type preferred
Time constraints
Lack of information on training available
Cost of off the job training
Trained staff will be poached by other employers
No money available for training
No suitable training available
2005
Automotive
81%
53%
40%
35%
27%
20%
25%
21%
Wales
83%
60%
38%
26%
24%
27%
23%
18%
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9 Annex 1 – Glossary of Terms
Skills Gaps
Term Definition
Hard to Fill Vacancies Those vacancies classified by respondents
Skills Shortages
Skills Shortage Vacancies
Skills Gaps as hard to fill
Where employees are unable to find new staff with the skills that they require
Those vacancies that are hard to fill where applicants to not possess the required skills
Employees not deemed fully proficient in their job
10 Annex 2 – SOC major occupation group and examples of jobs that fall into each category
1
2
3
SOC Major Occupation Group
Manager & Administrators
Professional Occupations
Associate professional & tech occupations
Examples of types of job potentially pertaining to Automotive Retail
General Managers & Administrators.
Managers & Proprietors in Service
Industries
Garage Managers & Proprietors
Marketing & Sales Managers
Research & Development Managers
Engineers & technologists
Teaching/training professionals
Business & financial professionals
Other professional occupations
Engineering technicians
Marketing associate Professionals
Other associate professional occupations
Sales representatives
4
5
Clerical & secretarial occupations
Skilled Trades Occupations
Administrators, receptionists, telephonists, personal assistants and other related occupations
Welding Trades
Auto electricians
Vehicle body builders & repairers
Motor mechanics, auto engineers
6 Personal Service Occupations Few personal service occupations witnessed in automotive retail as refers to those working in care, leisure, medical professions eg. Dental nurses, hairdressers, care assistants etc
Those that do sometimes fall under the automotive retail sector are housekeeping occupations and child care and related personal service occupations
7 Sales & Customer Service Occupations Sales & retail assistants
Telesales
Customer care
8
9
Process, Plant & Machine Operatives
Elementary Occupations
Other sales related occupations
Tyre, exhaust and windscreen fitters
Elementary sales occupations
34
