CfA 6 Graphite Square Vauxhall Walk London SE11 5EE info@cfa.uk.com Tel: 020 7091 9620 Essential Skill Demand Assessment Business, Administration and Governance Skills June 2008 ©2008 CfA Contents 1. Executive Summary ................................................................... 4 1.1 The Workforce .................................................................................4 1.1.1 The Size of the Workforce..............................................................4 1.1.2 The Changing Workforce ...............................................................5 1.2 Drivers of Skills Demand .................................................................6 1.2.1 Globalisation................................................................................6 1.2.2 Technological Change ...................................................................6 1.3 Skills ...............................................................................................6 1.3.1 Current Skills Needs .....................................................................6 1.3.2 Skill-shortage Vacancies................................................................7 1.3.3 Skills Gaps ..................................................................................8 2. Introduction .............................................................................. 9 2.1 Scope of the Research .....................................................................9 2.2 Methodologies ................................................................................. 9 2.2.1 Primary Research ....................................................................... 10 2.2.2 Secondary Research ................................................................... 10 3. Scope....................................................................................... 12 3.1 Definition of Occupation ................................................................12 3.1.1 Strategic Decision-makers and Governing Bodies ............................ 12 3.1.2 Designated and Specialist Administrators ....................................... 13 3.1.3 Self-administration ..................................................................... 14 3.2 Size and Profile of Workforce ........................................................15 3.2.1 The Administration Workforce ...................................................... 16 3.2.2 Self-administration Workforce ...................................................... 18 3.2.3 Administrative Workforce in Sectors .............................................. 19 3.3 Age of Workforce........................................................................... 20 3.3.1 Designated and Specialist Administrators ....................................... 20 3.3.2 Self-employed Workforce............................................................. 20 3.4 Working Hours .............................................................................. 21 3.4.1 Strategic Decision-makers ........................................................... 21 3.4.2 Designated and Specialist Administrators ....................................... 21 3.5 Disability and Ethnicity in the Workforce.......................................22 3.5.1 Administrators and Specialists...................................................... 22 3.5.2 Self-employed ........................................................................... 23 3.6 Gender of Workforce ..................................................................... 23 3.7 Retention and Labour Turnover ..................................................... 24 4. Drivers of Skill Demand and its Impact ................................... 25 4.1 External Drivers............................................................................. 25 4.1.1 Globalisation.............................................................................. 25 4.1.2 Technological Change ................................................................. 25 4.1.3 Government Policy ..................................................................... 27 4.2 International Benchmarking.......................................................... 27 ©2008 CfA Page 2 5. Character and Composition of Current Skills Needs ................. 29 5.1 Overview of Required Skills ........................................................... 29 5.1.1 Strategic Decision-makers ........................................................... 29 5.1.2 Designated Administrators ........................................................... 29 5.1.3 Specialist Administrators ............................................................. 37 5.1.4 Other Professionals..................................................................... 37 5.2 Skills Shortages............................................................................. 38 5.2.1 England .................................................................................... 38 5.2.2 Wales ....................................................................................... 43 5.2.3 Scotland ................................................................................... 45 5.2.4 Northern Ireland ........................................................................ 46 5.2.5 Attitudes ................................................................................... 48 5.2.6 Summary .................................................................................. 48 5.3 Skills Gaps ..................................................................................... 49 5.3.1 England .................................................................................... 49 5.3.2 Wales ....................................................................................... 55 5.3.3 Scotland ................................................................................... 57 5.3.4 Northern Ireland ........................................................................ 58 5.3.5 Summary .................................................................................. 60 6. Future Skills Needs.................................................................. 61 6. Future Skills Needs.................................................................. 61 6.1 Changes to the Pattern of Skills Requirements..............................61 6.1.1 Administrators and Specialists...................................................... 61 6.2 Forecast Shifts in Patterns of Employment ....................................61 6.2.1 Designated and Specialist Administrators ....................................... 61 6.2.2 Self-administration ..................................................................... 63 6.2.3 Summary .................................................................................. 64 References .................................................................................. 65 Appendices .................................................................................. 68 Appendix 1: 2007 CfA Employer Questionnaire ...................................68 Appendix 2: 2007 Administrators’ Questionnaire ................................77 Appendix 3: 2008 Senior Administrators’ Questionnaire .....................83 ©2008 CfA Page 3 1. Executive Summary The Council for Administration (CfA) has been acting as the national standardsetting body for business, administration and governance skills since 1996. Over the past decade, the CfA has defined the role of the business administrator and identified key skills that are essential for success in today’s increasingly competitive business environment. The CfA recognises that a key factor driving economic productivity is skills development, for both young learners who directly enter the UK workforce in large numbers from school, college, university and work-based learning, and those already in the workforce. Consequently, it is vital that the qualifications and training available in the sector match economic needs and demands. The report will analyse what drives business success and profitability in the sector. From this base, it will assess both the current and future requirements for qualifications and training from an employer perspective. The CfA’s remit covers the governance workforce and strategic decision-makers, specialist and designated administrators, as well as the secondary administration market. A large part of the research for the Essential Skills Demand Assessment was based on secondary research carried out by agencies in the four nations. The secondary research carried out by the agencies failed to specifically examine the skills required by strategic decision-makers and the governance workforce. However, where possible, past research carried out during the development of the governance National Occupational Standards (NOS) has been used to identify some of the skills and attributes required by the governance workforce. Likewise, the majority of the reports used for secondary research do not identify the administration skills required of the secondary administration market. Where information was available, this has been included. Because of the limited time and resources available, the CfA was unable to examine the administration skill needs of the entire UK workforce through primary research. 1.1 The Workforce 1.1.1 The Size of the Workforce The primary market up to level 7 (level 11 in the Scottish Credit and Qualifications Framework [SCQF]) consists of 4.43 million people who are responsible for the business, administration and governance functions in the public, private and not-for-profit sectors. At level 8 (level 12 in the SCQF), Companies House estimates there are 7 million registered directorships. This market includes: • • • 7.4 million strategic decision-makers, comprising registered directors, company and chartered secretaries 1,456,000 specialist administrators who, in addition to general administration skills, also need sector–specific knowledge to fulfil their job roles 2,561,000 designated administrators who need generic administration skills to fulfil their job roles Broken down by level, this primary workforce includes: ©2008 CfA Page 4 • • • • • Level 8 (level 12 in the SCQF) – Directors o 7 million registered directorships at Companies House Level 7 (level 11 in the SCQF) o 412,000 chief executives, chartered secretaries and company secretaries Levels 4–6 (levels 8–10 in the SCQF) o 465,000 administration managers, office managers and operations managers o 369,000 personal assistants, public service administrative professionals and other secretaries Level 3 (levels 6 and 7 in the SCQF) o 233,000 sector administrators, specialist secretaries and technical specialists Up to level 2 (level 5 in the SCQF) o 2,709,000 administrators, clerks and receptionists o 241,000 post-room workers, mail sorters, messenger couriers and elementary office workers It demonstrates that 2,561,000 workers have designated administration roles where much of their skills development needs focus on administration skills. An additional 1,456,000 have specialist administration roles where a proportion of their skills development needs focus on specialist and sector knowledge and skills as well as administration skills. The secondary administration market consists of 14.4 million people who work as professionals, managers and technical specialists in the public, private and not-for-profit sectors, and 3.698 million self-employed people who are all required to have a range of Business & Administration skills. The administration workforce is larger than any of the 25 Sector Skills Councils (SSCs) (only one SSC tops 3 million – Skillsmart Retail, with a projected workforce of 3,351,000 in 2014). 1.1.2 The Changing Workforce Over recent years, there has been a decline in the size of the designated and specialist administration workforce. The wider use of information technology (IT) in administration roles, improved communication systems and the movement towards managerial professional occupations, undertaking their own administration, constitute some of the reasons for this decrease. That said, it is interesting to note that research carried out by Gordon Yates has shown that, during 2007, many companies (mainly in London), in fact increased the size of their administration workforces. Either way, a decline in the size of this workforce is not to be confused with a reduced demand for skilled administrators. Research carried out by Wilson, Homenidou and Dickerson, in 2006, has shown that in the decade ending in 2014, the demand for skilled administrators is in fact very large – approximately 1.2 million people. This large demand for administrators is mainly due to the ageing workforce. Currently, 25% of specialist and designated administrators are over the age of 50, and are, therefore, due to retire in the next 15 years. Therefore, while the actual size of the workforce is in gradual decline, there is an ongoing need for employers to find skilled administrators to replace those who are leaving the workforce. In addition to the large demand for skilled specialist and designated administrators, the self-administration workforce is continuing to grow. Combined, these two workforces mean that there is a very large demand for administration skills. ©2008 CfA Page 5 The majority of administrators were found to be valued by their employers and colleagues. Also, the majority of administrators were found to enjoy their work, and therefore tend to remain with the same employer for several years. This stability in the workforce means that three-quarters of employers do not have to encourage their administrative staff to stay. Those that do use enticements to keep administrative staff were found to use: • • • • • • • Salary reviews and incremental pay increases Performance and target related bonuses Regular appraisals and target setting Training and development (both professional and personal) Management responsibilities Broader task responsibilities Career progression 1.2 Drivers of Skills Demand 1.2.1 Globalisation Advances in communication technology and increased ease of travel have removed many of the barriers traditionally posed by national borders and oceans. It is argued that globalisation is increasing the value of skills and that there is a need for economies to ensure the workforce, including both the administration and the governance workforce, is flexible and skilled enough to take advantage of changes in technology and capable of moving into new areas of work. There is also likely to be an increase in demand for foreign languages, especially for British workers who decide to move abroad to work. The European Qualification Framework (EQF) will allow for the validation of qualifications for use in European countries, and will therefore assist the freedom of movement of Europeans within Europe who want to work in administrative roles. 1.2.2 Technological Change Technology is continuing to advance and change at an astonishing rate. Administrators require excellent knowledge of office technologies and must ensure that their skills are continuously developed in-line with technological advances. In the past 20 years, computer-based technologies have become increasingly important to all administrators. In 2006, 97.2% of administrators were identified by Felstead et al (2007), to be using computer technology, compared with just 61.5% in 1986. In addition, administrators are increasingly using technology in an advanced or complex way. 1.3 Skills 1.3.1 Current Skills Needs Governance Sound governance is dependent on a balanced approach to three particular groups of attributes: ©2008 CfA Page 6 • • • The intellectual dimension – critical analysis and judgement, showing vision and imagination and taking a strategic perspective The managerial dimension – managing resources, communicating engagingly, empowering and developing others and achieving results The emotional and social dimensions – being self-aware, being emotionally resilient, applying intuition, being sensitive to others, being motivated and acting conscientiously Many of these skills and attributes are acquired over time in positions of responsibility. Designated Administrators The skills required of administrators vary from level to level. Junior administrators are likely to require skills in information management, communication, literacy, mail-handling, numeracy, and basic IT in a few applications. While many of these skills are required at all levels, administrators working at levels 2 and 3 (SCQF levels 5–7), are likely to also require planning and organisation skills and some management skills. Administrators working at levels 4, or level 8 in Scotland, will need these people management skills to be highly developed, as management becomes a central purpose of their job. Equally, they require excellent planning and organisation skills to perform the majority of their tasks. 1.3.2 Skill-shortage Vacancies Skill-shortage vacancies (SSVs) are hard-to-fill vacancies (HtFVs) resulting from applicants lacking the required skills, qualifications or experience which they require to work effectively. Other causes of HtFVs may include a lack of enthusiasm, poor pay or location. Examination of SSVs illustrates some of the skills that are most demanded by employers. Research carried out by the Learning and Skills Council in England (LSC), Future Skills Wales, Future Skills Scotland and the Department for Employment and Learning in Northern Ireland (DELNI), examined SSVs in England, Wales, Scotland and Northern Ireland, respectively. In England, 12% of all vacancies are in administration, and 15% of those vacancies are SSVs. Of all HtFVs, SSVs in England account for 73% of HtFVs – a large proportion of all HtFVs. SSVs are believed to have a greater impact on business performance than HtFVs which are not caused by skills. There is, therefore, reason to be concerned over the high proportion of SSVs. The skills areas which were identified as lacking among applicants, and therefore contributing to administration SSVs in England, included: customer-handling; oral and written communication; general office administration skills; literacy; general and professional IT and management. The LSC also identified that, while a lack of general office and administration skills contributed to 35% of administration SSVs, it also contributed to 22% of all SSVs in England. This shows the requirement for some administration skills by the entire English workforce. Occupations in sales, management, personal services and associate professions, were all found to require a higher level of administration skills than the general workforce. The financial services sector has the largest administration workforce, when calculated as a proportion of the total workforce in this sector. It was not surprising to find then, that a lack of administration skills contribute to 35% of SSVs in this sector. A lack of administration skills were also shown to contribute ©2008 CfA Page 7 to a larger proportion of SSVs, in comparison to the administration workforce size, in Proskills UK, Skillset, Creative and Cultural Skills and e-skills. This supports the fact that administration skills are required across all sectors. In Wales, 5% of all HtFVs and 4% of all SSVs are in administration. Administration HtFVs, as a proportion of all HtFVs, vary across sectors in Wales. Lantra has the highest proportion of administration HtFVs (31%), compared with Skills for Care, where just 1% of all HtFVs are administration HtFVs. There was no data available on the extent to which different skills contribute specifically to administration SSVs. However, it was shown that a number of the skills which are essential in administration where responsible for SSVs generally. In Scotland, administration vacancies account for 10% of all vacancies, and 38% of those are HtFVs – considerably higher than in England. 71% of HtFVs in Scotland are due to skills shortages. In Northern Ireland, 14% of employers reported administrative vacancies in 2005, 4% higher than in 2002. 45% of administration HtFVs were identified as SSVs, a considerably lower proportion than in Scotland and England. 1.3.3 Skills Gaps Skills gaps exist where current employees lack all of the skills required of them. Identification of the skills which contribute to skills gaps highlights the skills that are most essential to a role. In England, skills gaps have been suggested to exist in as many as 16% of administration jobs. However, the number of skills gaps has been in decline, as have skills gaps in all occupational areas. As a proportion of all skills gaps, skills gaps in administration occupations account for 12%. Skills gaps among administrators were found to be highest among administrators in London. Skill areas that were found to contribute to skills gaps, most frequently, include office and administration skills, customer handling, general IT use, problemsolving and communication. A lack of general office and administration skills are by far the largest reason for skills gaps in administration occupations, contributing to 55% of administration skills gaps. As was shown with SSVs, a lack of administration skills contributes to skills gaps in all occupational areas, especially among managers, professionals and associate professionals. In Wales, 5% of administrators were reported as having skills gaps. In Scotland, 8% of skills gaps are in administration occupations. In Northern Ireland, 33% of organisations believed there to be skills gaps among their administrators, considerably higher than England and Wales. There was no information on the specific skills which contribute to skills gaps in Wales, Scotland and Northern Ireland. However, the skills which are required by administrators were shown to contribute to skills gaps generally. ©2008 CfA Page 8 2. Introduction The UK has a high employment rate within the G7 group of countries1. However, productivity in the UK economy is below that of many comparator countries2. One factor that drives productivity performance is skills, and recent research has shown that the UK’s skills profile is relatively poor when compared with countries such as France and Germany, especially at intermediate levels 3. Given that the utilisation of skills contributes to the productivity performance of an economy, it is vital that the training supplied to businesses and individuals matches that which is needed and demanded. In order to make sure that this is the case, the CfA are leading on a major study of labour market information, with an emphasis on assessment of essential skills demand and essential skills supply. This work will give employers in the sector the opportunity to shape the development of training to meet their short-, medium- and long-term business needs, setting the skills priorities and direction for the next 5–10 years. Therefore, the fundamental aim of this report is to understand what it is that drives business success and profitability in the sector. From this base, the report will assess both the current and future requirements for skills and training from an employer perspective. Together with the essential skills supply assessment, this research will inform the gap analysis where priorities for action will be presented. 2.1 Scope of the Research The CfA’s remit covers the governance workforce and strategic decision-makers, specialist and designated administrators, as well as the secondary administration market – details of which are provided in section 3. A large part of the research for the Essential Skills Demand Assessment was based on secondary research carried out by agencies in the four nations. The secondary research carried out by the agencies failed to specifically examine the skills required by strategic decision-makers and the governance workforce. However, where possible, past research carried out during the development of the governance NOS has been used to identify some of the skills and attributes required by the governance workforce. As outlined in the report, even non-administrators require some administration skills. The majority of the reports used for secondary research do not identify the administrations skills required of this secondary administration market. Where information was available, this has been included in the Essential Skills Demand Assessment. Because of the limited time and resources available, the CfA was unable to examine the administration skill needs of the entire UK workforce through primary research. 2.2 Methodologies The methodology employed to conduct this analysis is of both a primary and secondary nature. 1 Employment Outlook 2006, The Organisation for Economic Co-operation and Development, June 2006 2 The Office for National Statistics (2006) 3 Tamkin et al (2004): pp.8–9 ©2008 CfA Page 9 2.2.1 Primary Research Telephone Interviews The first stage of primary research took the form of surveys administered over the telephone. The telephone surveys were used to determine employers’ and administrators’ perspectives on current and future skills needs. 200 UK employers across all sectors answered the initial telephone consultation. 450 administrators across the UK and across sectors gave their feedback on the employer results through a telephone survey. After analysis of these initial telephone interviews, a further telephone survey, with 250 senior administrators, was commissioned. This provided further depth into areas identified in the initial consultations. To ensure the telephone surveys captured an accurate representation of administrators and employers throughout the UK, the views of respondents from all four nations were sought. The number of respondents sought from each nation was determined according to the size of the administrative working population in each nation. However, due to the size of the samples used, which were dictated by resources, the number of respondents in Northern Ireland, Scotland and Wales were relatively small. This means that results, while providing a useful insight into the entire UK population, could not be used to accurately gain knowledge specific to nations. Copies of the questionnaires used are included as appendices 1, 2 and 3. Calculating the Size of the Administration Workforce Labour Force Survey data, based on Standard Occupational Classification 2000 (SOC2000), was used to calculate the size of the administration workforce. While this data proves to be a valuable resource, it is limited when used to estimate the size of the governance workforce. Taking this into account, information from Companies House provided figures on the number of registered directorships. 2.2.2 Secondary Research External Research To begin the research, external secondary research was used to set the scene. The research comes from a variety of sources, as follows. • • • • • • Sector Skills Agreements from the 25 SSCs Government research from the DTI, Treasury, DELNI, WAG and Scottish Executive Futureskills Scotland and Wales LSC reports – both national and regional Sector Skills Development Agency (SSDA) and Skills for Business Network (SfBN) reports Other resources, as set out in SSDA guidance It is to be noted that all of these data sources have limitations in terms of how well they represent the world of Business & Administration. The administration workforce is cross-sector, but many of the secondary information sources are sector based, creating a major difficulty. It is important that this is taken into account when our arguments are presented. Another valuable secondary resource was SecsLife 2007–2008, published by Gordon Yates, which captured the views of 308 employers, 670 permanent ©2008 CfA Page 10 administrators and 166 temporary administrators. The Gordon Yates research has a reputation for being of high quality and tracking changing trends in Business & Administration. In the most part, Gordon Yates represents the views of employers and employees in London and the South East – a limitation which should be taken into account when considering findings drawn from this research. Internal Research Internal CfA research reports were used where up-to-date or relevant information was not available from other sources. The main sources of CfA research were: • • • ©2008 CfA International benchmarking reports Functional and occupational maps The CfA Vision report Page 11 3. Scope 3.1 Definition of Occupation Over fifty percent of the UK workforce use business, administration or governance skills to fulfil their job responsibilities at work. These skills are essential for the day-to-day operation, strategic direction and survival of every business in the UK, regardless of the size of organisation or the sector in which it operates. The key purpose of administration can simply be stated as being: “To provide business support systems, processes and services that enable the organisation to achieve its objectives and continuously improve its performance for customers” 4. All businesses require an administration function in order for the organisation to be effective. Therefore, Business & Administration skills underpin a range of occupations across all sectors, and exist within every organisation in the UK. Research carried out by the CfA, in 2007, found that: • • • 98% of employers agree that the administration function is critical to the effectiveness of their organisation 96% of employers agree that the administration function is critical to meeting business objectives 98% of employers agree that the administration function is an important support mechanism In 2006, 66% of employers believed that administrators have become more important to the success of their organisation 5. The administration workforce incorporates a wide-ranging group of people. These are strategic decision-makers, designated administrators and specialist administrators. The characteristics of the administration workforce can best be described as being: 6 • • • • Predominantly female at NQF levels 2, 3 and 4, but predominantly male at strategic levels (NQF levels 5 and above) An ageing workforce where 48% are over the age of 40, and 25% are due to retire in the next 15 years Educated to a minimum of level 2 or above (81% of the workforce) Working full time, although more and more are working part time, and temporary work in this area is increasing 3.1.1 Strategic Decision-makers and Governing Bodies Strategic decision-makers ensure an organisation’s long-term success by directing the organisation’s affairs in support of its interests and goals, while complying with the law 7. The strategic decision-making workforce includes managing directors, chief executives, executive directors, non-executive directors, chairs, company secretaries and chartered secretaries. Roles of the governance workforce involve 8: 4 CfA Functional Map (1999): p.12. This definition of administration still rings true today, and is being carried through to the 2008 Functional Map 5 CfA (2006) 6 Levels refer to NQF Levels. CfA Occupational Map (2008) 7 Pierce (2006): p.8 and CfA (2002): p.32 ©2008 CfA Page 12 • • • • • • • • Defining the role of the governing body Ensuring the effective functioning and performance of the governing body Ensuring effective governing body decision-making and delegation Determining the organisation’s purpose, vision, values and ethics Defining the organisation’s strategy and structure Overseeing the evaluation of organisational and managerial performance Ensuring effective compliance and control systems Exercising accountability and engaging effectively with key stakeholders Another major strategic decision-making job role is that of the chartered or company secretary. Company secretaries are responsible for servicing the board of directors, and are pivotal to its efficiency and effectiveness. They provide comprehensive practical guidance, full information and formal support to individual directors and to the board as a whole. 9 Many organisations, such as small companies which are managed by the owner, do not have a governing body. Instead, the organisation’s direction is set by the owner. The skills of strategic decision-makers and the structure of the governing body are crucial to the performance and survival of an organisation. “When corporate governance is inadequate, company performance, over the long term, suffers … ultimately, enterprises are more likely to lose value, or, in extreme circumstances, fail …”10 3.1.2 Designated and Specialist Administrators Designated administrators include office managers, personal assistants, secretaries, administrators, clerks and receptionists. These administrators need Business & Administration skills and are likely to have some sector knowledge. Specialist administrators include medical administrators, legal secretaries and financial administrators. These administrators require level 3 Business & Administration skills, along with knowledge specific to the sector in which they work. The job function, of both designated and specialist administrators, centres on carrying out administrative duties within an organisation. Unlike designated administrators, specialist administrators have roles where the general administration function needs to be exercised within a specialist sector context, requiring them to have some specialist knowledge of the sector. For example, a legal secretary requires some specialist knowledge of the legal system, and a human resources administrator requires some specialist knowledge of HR. A designated administrator, such as a receptionist, however, requires no specialist knowledge of the department, organisation or sector in which they work. Examples of designated and specialist job titles are given in table 1, below. 8 CfA Governance NOS 9 CfA (2007): p.45 10 Mellor (2004): p.10 ©2008 CfA Page 13 Table 1: Example job titles of designated and specialist administrators Examples of Designated Roles administrator secretary clerical assistant telephonist administration assistant personal assistant receptionist typist post-room worker office junior office manager filing clerk stock control clerk secretary Examples of Specialist Roles HR administrator sales/marketing administrator property administrator finance administrator registrar library assistant medical secretary legal secretary school secretary legal secretary parking officer In 2007, the designated administration workforce stood at an estimated 2,561,000, and the specialist administration workforce at an estimated 1,456,000 11. Together, they are estimated to add up to 4,017,000. 3.1.3 Self-administration All professionals, managers and technical specialists are required to carry out some administrative functions as part of their job responsibilities, although administration is not the main purpose of their job. However, not all of these individuals carry out their own administration, as many will employ administrators. This makes it difficult to accurately estimate the size of this secondary administration workforce. Police officers are just one occupational group that has to complete a large amount of administrative duties as part of their job. An independent review of the British Police Force, suggests just 10% of policing tasks require fully trained police officers 12. The interim report draws particular attention to ‘Stop and Account’ 13, stating that: “For example, a force submission to the Review described how they had produced over 79,000 Stop and Account forms in 2006, from which the administration and recording processes has been estimated at 25 minutes per submission. Across the force this would equate to 32,916 hours of process work, or a full-time commitment of 16 staff members dedicated to filling and processing Stop and Account forms.” 14 In the current situation, police officers require a range of administrative skills in order to carry out up to 90% of their tasks. If the proposed recommendations to reduce the administrative tasks undertaken by police officers are acted on, there 11 Employment numbers have been calculated from Labour Force Survey data, which is based on SOC2000. Labour Force Survey Data is available from the Office for National Statistics 12 BBC News 24 (2008) 13 ‘Stop and Account’ is a procedure where police officers stop members of the public and ask them to account for their actions, behaviour, presence in an area and/or possession of anything. See Hampshire Constabulary website: http://www.hampshire.police.uk/Internet/rightinfo/foi/informationclasses/stopsearch.htm 14 Flanagan (2007): p.15 ©2008 CfA Page 14 will be a requirement for the training of specialist administrators who have specialist knowledge of police processes and legislation. Professionals who need to carry out administrative functions as part of their role can be involved in the following 15: • • • • • • • • Communicating effectively Dealing with contacts Managing own diary and travel arrangements Managing and storing information Planning and managing own workload Planning and organising meetings Using office equipment Using IT to support role Self-employed owners of micro businesses or ‘zero-employee’ businesses need to personally undertake the administrative tasks of a business. Like professionals, self-employed workers require all of the skills required of administrators. The majority of the information on skill needs, skills gaps and SSVs, provided in section 5, relate directly to the skills required by designated and specialist administrators, rather than to those who sit within the secondary administration market. A large amount of the research on skills is secondary, based on research reports compiled by the LSC, Future Skills Wales, Future Skills Scotland and DELNI. With the exception of the LSC, the research carried out by these bodies fails to examine directly the requirements for administration skills by individuals in all occupations. 3.2 Size and Profile of Workforce The primary market, up to level 7 (level 11 in the SCQF), consists of 4.43 million people who are responsible for the business, administration and governance functions in the public, private and not-for-profit sectors. At level 8 (level 12 in the SCQF), Companies House estimates there are 7 million registered directorships. This market includes the following. • • • Approximately 7.4 million strategic decision-makers, comprising registered directors, company and chartered secretaries 1,456,000 specialist administrators who, in addition to general administration skills, also need sector-specific knowledge to fulfil their job roles 2,561,000 designated administrators who need generic administration skills to fulfil their job roles Broken down by level, this primary workforce includes: Level 8 (level 12 in the SCQF) – Directors • 7 million registered directorships at Companies House Level 7 (level 11 in the SCQF) • 412,000 chief executives, chartered secretaries and company secretaries Levels 4–6 (levels 6–8 in the SCQF) • 465,000 administration managers, office managers and operations managers • 369,000 personal assistants, public service administrative professionals and other secretaries 15 CfA Self-administration NOS ©2008 CfA Page 15 Level 3 (levels 6 and 7 in the SCQF) • 233,000 sector administrators, specialist secretaries and technical specialists Up to level 2 (level 5 in the SCQF) • 2,709,000 administrators, clerks and receptionists • 241,000 post-room workers, mail sorters, messenger couriers and elementary office workers The governance workforce is made up of those working at levels 7 and 8 (levels 11 and 12 in the SCQF). The legal responsibilities of the governance workforce distinguish strategic decision-makers from managerial administrative roles, which exist at levels 4–6 16. All of the level 3 (level 6 and 7 in the SCQF) workforce specialise either in a sector or technical area. With the exception of registered directors, the single largest group of administrators work at level 2 (level 5 in the SCQF) or below. It is believed that administrators begin to specialise at level 2. The administration workforce is larger than any of the 25 SSCs (only one SSC tops 3 million – Skillsmart Retail, with a projected workforce of 3,351,000 in 2014). The secondary market consists of 14.4 million people who work as professionals, managers and technical specialists in the public, private and not-for-profit sectors, and 3,698 million self-employed people who are all required to have a range of Business & Administration skills. 3.2.1 The Administration Workforce Workforces, generally, are extremely dynamic, fluctuating continuously. Examination of Labour Force Survey data, based on SOC2000 codes17, has provided information on changes in the size of the administration workforce since 2001 (see figure 1 and table 2). Due to limited information on the highest-level workforce, which consists of level 8 (level 12 in the SCQF) directors, information on changes in the size of the workforce refers to administration up to level 7 (level 11 in the SCQF). Figure 1: Changes in the size of the administration workforce, 2001–2007 4700 4600 Workforce (000s) 4500 4400 4300 4200 4100 4000 2001 2002 2003 2004 2005 2006 2007 Year 16 CfA (2002): p.12 17 The Office for National Statistics website ©2008 CfA Page 16 Table 2: Administration as a proportion of total employment, 2001–2007 Year Total Administration Workforce (000s) % of Total Employment 2001 2002 2003 2004 2005 2006 2007 4656 4574 4586 4513 4512 4484 4429 17.0% 16.6% 16.5% 16.1% 16.0% 15.8% 15.6% Note: Figures are for designated and specialist administrators combined The administration workforce up to level 7 (level 11 in the SCQF), makes up a considerable proportion of the total UK workforce. However, this proportion is seen to be declining, having fallen from 17.0% of the workforce in 2001, to 15.6% in 2007. Yet Gordon Yates’ research showed that, between 2006 and 2007, companies (mainly in London) in fact increased the size of their administration workforces. Table 3: Over the last 12 months, has your company increased or decreased its number of support staff? 18 Increased Decreased No Change Net Increase (actual) 2006 2007 36% 13% 51% 23% 38% 11% 51% 27% In 2007, the percentage of companies who had increased the number of administrative staff had grown on the previous year. Also, the percentage of companies who had decreased the number of administrative staff had reduced. Consequently, contradictory to the Labour Force Survey data, the demand for administrators appears to be growing. Either way, as discussed in section 6, a reduction in the size of the administration workforce should not be taken to mean that administration will provide poor career prospects in the future. The large replacement demand in administration, means that the net demand for skilled administrators, in the decade ending 2014, is almost 1.2 million. Also, as mentioned below, the size of the self-administration workforce is growing rapidly. Data from the LSC, Future Skills Scotland, Future Skills Wales and DELNI, provide information on how the administration workforce varies between the four nations of the UK. 18 Gordon Yates (2007–2008): p.24 ©2008 CfA Page 17 Table 4: The size of the administration workforce in the four nations of the UK 19 Country Year Administration as % of Total Employment England Scotland Wales Northern Ireland 2005 2006 2005 2005 14% 13% 11% 13% Approximate Size of Administration Workforce 3,031,000 271,500 118,000 96,000 Note: Figures include both designated and specialist administrators The size of the administration workforce varies in each of the four UK nations, which is in excess of 3 million in England, and less than 100,000 in Northern Ireland. However, these differences largely reflect the differences in the size of the workforce generally in each country, with administration representing between 11% (in Wales) and 14% (in England) of the entire working population, in 2005. 3.2.2 Self-administration Workforce Figure 2: Changes in the size of the self-employed workforce, 2001–2007 20 b) Potential Self-administrators a) Self-employed 14500 Number of employees (000's) Number of self-employed (000's) 3800 3700 3600 3500 3400 3300 3200 3100 14000 13500 13000 12500 12000 3000 2001 2002 2003 2004 Year 2005 2006 2007 2001 2002 2003 2004 2005 2006 2007 Year Table 5: Self-employment in the four nations, 2006 21 England Scotland Northern Ireland Wales Total Approximate Number of Selfemployed 3,064,800* 258,200 123,000 177,000 3,622,000 *Data specific to England was unavailable and was calculated by subtracting figures for the other nations from total selfemployment 19 Data is taken from the following sources: LSC (2006a): p.68; Future Skills Scotland (2007): p.14; Future Skills Wales (2006): p.40 and DELNI (2007): p.4. When added together, these figures show slight variation from the figures calculated by the CfA based on Labour Force Survey data. Differences in data are most likely due to the narrow definition of administration used by these sources 20 Self-employment numbers have been calculated from Labour Force Survey figures, based on SOC2000, available at the Office for National Statistics 21 Data was obtained from multiple sources: Department for Enterprise, Trade & Investment (2007): p.23; National Statistics for Wales (2007) and The Scottish Government Statistics (2007): p.15 ©2008 CfA Page 18 As shown in table 5, a large number of people are self-employed in all four nations of the UK, although the majority of self-employed are in England. While the administration workforce has slowly decreased in size, the size of this secondary administration workforce has grown considerably. As advances in technology allow for people to carry out more of their own administration, we can see a shift in the market for administration skills from designated and specialist administrators, to self-administrators. 3.2.3 Administrative Workforce in Sectors Because of the cross-sector nature of administration, there are administrators, strategic decision-makers and other professionals carrying out administrative functions in every industry represented by the SSCs in the UK. Table 6 shows the percentage of the designated and specialist administrative workforce within each sector 22. Table 6: The size of the administration workforce in each of the 25 SSCs SSCs Financial Services Government Skills Skills for Justice Skills for Health Asset Skills Automotive Skills Lifelong Learning UK Skills for Logistics SkillsActive Energy and Utility Skills Cogent ProSkills SEMTA Skillfast Skills for Care and Development Summit Skills Construction Skills Creative and Cultural Skills E-skills Go Skills Improve Ltd Lantra Skillset Skillsmart Retail People 1st % of Sector Workforce 31 29 19 15 14 14 14 12 11 10 9 8 8 8 8 7 7 7 7 7 6 6 6 6 6 The financial services sector has the largest administration workforce, making up approximately 31% of the sector’s total workforce. In fact, in 2007, the Financial Services Skills Council (FSSC) reported the administration workforce to be larger still, accounting for 46% of the total workforce. They state that: 22 SSDA Sector Skills Matrix ©2008 CfA Page 19 “Financial services involve an enormous amount of administrative work which is crucial to managing data and information, conducting and tracking transactions, facilitating communications and ensuring regulatory compliance.” 23 The administration workforce is smallest in Improve Ltd, Lantra, Skillset, Skillsmart Retail Ltd and People 1st, making up just 6% of the workforce. However, while the designated and specialist administrative workforces are low in these sectors, a significant proportion of the workforce are required to carry out a range of Business & Administration functions and require this skill set. 3.3 Age of Workforce 3.3.1 Designated and Specialist Administrators Figure 3: Age breakdown of administration occupations, 2006 24 30% 25% 25% 23% 23% 20% 20% 15% 10% 5% 4% 4% 1% 0% 16-19 20-29 30-39 40-49 50-59 60-69 70+ Age Over 25% of administrators are over the age of 50, and so are due to retire within the next 15 years. 27% of administrators are under the ages of 30. The remaining 48% are aged between 30 and 49, which makes up the majority of administrators. 3.3.2 Self-employed Workforce The single largest group of self-employed are aged between 45 and 54 years old. Around 1 in every 4 is aged between 35 and 44, and 1 in 5 between 55 and 64 years old. 23 FSSC (2007): p.43 24 Data is available from the NOMIS (www.nomisweb.co.uk) ©2008 CfA Page 20 Figure 4: Age breakdown of the self-employed workforce, 2006 25 35% 30% 30% 26% 25% 20% 20% 14% 15% 10% 5% 7% 3% 0% 16-24 25-34 35-44 45-54 55-64 65+ Age 3.4 Working Hours 3.4.1 Strategic Decision-makers Some strategic decision-maker roles are full time, such as CEO and executive director, while others, such as chair, non-executive director and company secretary, are usually part-time positions. 3.4.2 Designated and Specialist Administrators By definition of the role, administrators are required to work the standard work hours (9am to 5pm), needing to cover the telephone or reception area during core hours. This also means that personal assistants and secretaries need to be present in the office when their director or manager is not, in order to maintain the administration function. It is very difficult to undertake some of these administration functions from home, because of the reliance on effective IT systems and significant cultural change. Findings from the 2007 CfA administrator survey confirmed this. 41% of administrators said they start work at 9am, and another 44% said they start work between 8am and 8.45am. When asked what time they finish work, 34% said 5pm. Gordon Yates presented similar findings to support this 26. 35% of employers were reported as having no support staff who work non-standard hours or days. A further 35% of employers were reported as having less than 10% of their support staff working non-standard hours. While traditionally, and by definition, administration staff are required to work standard working hours, more recent developments in administration job roles have resulted in the concept of the ‘virtual assistant’ 27. A virtual assistant does not work in the same locality as the person they report to, usually working from home or occupying a ‘hot desk’ within an organisation. Many small and medium enterprises (SMEs) use virtual assistants, as they are able to assist with administration support when needed in busy times (or perhaps when administrators are on sick leave or annual leave) and can therefore justify the cost, which can be £15–£25 per hour, depending on the service required. SMEs also do not have as much physical desk space or administration workload, 25 Data is available from the NOMIS (www.nomisweb.co.uk) 26 Gordon Yates (2007–2008): p.22 27 See the Virtual Office Management Services website www.virtual-oms.co.uk ©2008 CfA Page 21 and so, therefore, virtual assistants can supply a service which meets the needs of SMEs efficiently. 3.5 Disability and Ethnicity in the Workforce Qualification statistics show that a larger proportion of disabled people undertake Business & Administration courses than any other subject 28. This in itself is interesting, but further research is required to explore the number of disabled individuals that are working in administrative roles. 3.5.1 Administrators and Specialists Both within the labour market as well as within education, ethnic minorities are represented in proportion to national demographics in Business & Administration 29. Working terms and conditions for refugees tend to be poor, earning less money and are concentrated in particular industries, such as catering and administrative work 30. Between May 2004 and March 2007, the majority of registered workers from the accession countries (37%), applied for positions in administration, business and management. 31 Table 7: Registered workers from the accession countries working in administration, business and management 32 2004* 2005 2006 Registered Workers Employed in Administration, Business 31,235 74,480 99,125 and Management % of All Registered Workers in Employment 25% 36% 44% *Data for 2004 is for the part year May to December In 2006, 99,125 registered workers were employed in administration, business and management, up from 74,480. As well as growing in number, the proportion of registered workers working in administration, business and management was also seen to increase from an estimated 25% in 2004 to 44% in 2006. Between May 2004 and March 2007, Poland provided the largest number of migrant workers going into administration (67%). 33 28 29 30 31 32 33 ©2008 CfA CfA Vision (2006) CfA (2006) The CfA Vision Stanfield et al (2004): p.24 Border and Immigration Agency et al (2007): p.13 Border and Immigration Agency et al (2007): p.14 Border and Immigration Agency et al (2007): p.23 Page 22 3.5.2 Self-employed Table 8 shows the ethnic breakdown of the self-employed workforce in the UK. 34 Table 8: Self-employed workforce by ethnicity Self-employed as a Percentage of All in Work Chinese Pakistani Indian Bangladeshi Other Asian White Other Ethnicity Black African Black Caribbean Black Other 1991 2001 27.2 23.9 20.0 18.6 9.8 12.8 13.8 8.1 6.0 8.2 25.5 22.4 16.9 15.2 15.1 13.4 12.2 9.5 8.2 7.0 3.6 Gender of Workforce In levels 2–4 (level 5–8 in the SCQF) administration roles, there is a gender bias towards women. Administration carries with it a stereotype, traditionally seen as a ‘female’ role in the workplace, therefore making it difficult to attract men into these roles, although it is becoming easier over time. At the strategic levels, however, the gender imbalance lies the other way, with a higher proportion of males working in governance positions. Figures show that: 35 • • • • • At level 1 (level 4 in the SCQF), 60% of administration roles are taken by women At level 2 (level 5 in the SCQF), 70% of administration roles are taken by women At level 3 (levels 6 and 7 in the SCQF), 80% of administration roles are taken by women At level 4 (level 8 in the SCQF), 70% of administration roles are taken by women At levels 5, 6 and 7 (levels 9–11 in the SCQF) only 20% of roles are taken by women, although this is beginning to change Women in Business & Administration roles are above the national average percentage for all job roles, except at Level 5 (level 9 in the SCQF). Men in Business & Administration roles are below the national average percentage for all job roles, except at levels 4 and 5 (levels 8 and 9 in the SCQF). Within national and local government, men are found to be working in many more administration roles than any other kind of employer. Public sector job titles are phrased differently. The word ‘officer’ is used far more than ‘assistant’, for example. It is possible that the difference in job title removes the stigma traditionally associated with administration. 34 Data is available from the NOMIS, available at: www.nomisweb.co.uk 35 CfA Functional and Occupational Map (2007) ©2008 CfA Page 23 3.7 Retention and Labour Turnover Surveys of administrators carried out by CfA showed that: 36 • • • • • • • 85% of administrators found their job challenging Only 27% of administrators found their job pressured 95% of administrators found their job enjoyable Only 12% of administrators found their job boring 88% of administrators believed that their job was valued by others 85% of administrators believed that their job role was supported by others 96% of administrators believed that their job was important to the success of the business Gordon Yates’ research explores the retention and turnover of the administration workforce 37. Table 9: How long have you worked for your current employer? 38 Less than a year 1 to 3 years 3 to 5 years 5 to 10 years More than 10 years 16% 35% 16% 19% 14% The largest proportion of administrators have worked for their current employer for one to three years. 84% have remained with the same employer for over a year, suggesting stability in the administrative workforce. Table 10: Employers who take specific measures to encourage administrative staff to stay longer in the company 39 Take Measures to Encourage Staff to Stay Do Not Take Measures to Encourage Staff to Stay 25% 75% Just 25% of employers were found to encourage administrative staff to stay with the company. Considering the general stability of the administration workforce, this is not surprising. Retention tools for administrators can be described as: • • • • • • • 36 37 38 39 ©2008 CfA Salary reviews and incremental pay increases Performance and target related bonuses Regular appraisals and target setting Training and development (both professional and personal) Management responsibilities Broader task responsibilities Career progression CfA Occupational Map (2008) Gordon Yates (2007–2008): p.23 Gordon Yates (2007–2008): p.23 Gordon Yates (2007–2008): p.23 Page 24 4. Drivers of Skill Demand and its Impact 4.1 External Drivers 4.1.1 Globalisation Globalisation has brought major changes, which have an impact on those working within the business and administrative context. These changes can include such developments as: improved world communications through information flows based on technological advances, travel and migration; increases in cross-border trade and economic competition, involving a wide range of products and services and national governments working together towards common environmental, health and security goals 40. It is argued that globalisation is increasing the value of skills and that there is a need for economies to ensure that their workforce is flexible and skilled enough to take advantage of changes in technology and capable of moving into new areas of work 41. With the introduction of the European Qualifications Framework (EQF), there is clearly a move towards validating qualifications for use across many countries, to aid mobility in the labour market. The CfA is developing a Business & Administration International Vocational Education Group, to discuss these issues with the equivalent bodies in other nations. The remit of this group will be explored in the Supply Needs Assessment Report. With the increase in flexibility and movement of labour internationally, there is an increasing demand for foreign language skills. When UK citizens work abroad, administration is the most common occupation that offers temporary work, as long as the worker can handle the language of the particular country. Administrators who work for global organisations will find that various parts of the organisation with which they need to communicate, as part of their every day job role, are located in a variety of countries. Therefore, they may judge it necessary to become proficient in languages other than English. Administrators coming to the UK for work must have excellent English (both written and verbal) in order to compete in the workplace. Consequently, there is a strong demand for ESOL (English for Speakers of Other Languages) provision specifically supporting administrators. The LSC, however, has recently announced that, in England, from 2007/08, free ESOL tuition will only be available to priority groups, which excludes migrant workers. This decision seems especially unfortunate when considering that, over time, migrant workers are becoming core rather than peripheral employees within the UK workforce. 4.1.2 Technological Change Information and Communication Technology (ICT) is essential for administration roles. The use of IT software, such as word processing, spreadsheets, databases, presentations, email and Internet browsers, has become central to the role of the 40 Tomorrow Project (2006) 41 HM Treasury (2005): p.16 ©2008 CfA Page 25 administrator. IT changes and updates happen quickly, and it is essential that administrators ensure that their IT skills are up to date. Computers exist in the workplace not just as PCs, but include a range of everyday office equipment, such as photocopiers, printers and fax machines. Research carried out by Felstead et al, examined the use of such computerised equipment in the workplace. Table 11: Percentage of administrative and secretarial staff using computerised or automated equipment in their job, 1986–2006 42 Using Computerised or Automated Equipment 1986 1992 2001 2006 61.5% 81.0% 95.8% 97.2% Over the past two decades, the use of computerised and office equipment in the workplace has increased considerably, to the point that, in 2006, almost all administrative and secretarial staff use computerised or automated equipment. In 2006, 82% of administrative and secretarial workers were found to regard the use of computerised equipment as essential in their job 43. 28% of administrators and secretarial workers were most likely to use computerised equipment in an advanced or complex way 44. Managerial, professional and administrative and secretarial occupations witnessed a rise in the proportion that make advanced or complex use of computerised equipment, and a sharp decline among those making simple applications. Figure 5: Administrative and secretarial staff using computers or computerised equipment in an advanced/complex or simple way, 1997–2006 35.0% 30.0% 25.0% 20.0% Advanced/complex Simple 15.0% 10.0% 5.0% 0.0% 1997 2001 2006 Year Between 1997 and 2006, there has been a transition from simple use of computerised equipment to more advanced or complex use of computerised 42 Felstead et al (2007): p.105 43 Felstead et al (2007): p.98 44 Felstead et al (2007): p.114 ©2008 CfA Page 26 equipment. This reflects the extent to which computerised equipment has become an integrated part of the office environment. 4.1.3 Government Policy The LSC’s response to the Leitch Report, detailed the importance of cross-sectoral standard setting bodies in achieving England’s targets of 45: • • • • • 95% of adults to have basic skills of functional literacy and numeracy At least 90% of adults to have completed a level 2 qualification Shift the balance of intermediate skills from level 2 to level 3, with 1.9 million further completions of level 3 qualifications Have 500,000 people per year in apprenticeships More than 40% of adults to hold a level 4 or above qualification 46 The administrative workforce is largely over the age of 25, and has, therefore, completed their general education. There is limited funding available for adults, unless companies or individuals are prepared to pay for training and qualifications themselves. Consequently, there is a large proportion of the workforce that does not have qualifications, is not offered training by their employers and is not eligible for public funded training. This major problem across the occupational area will also be explored in the supply assessment. As demonstrated previously, the workforce is ageing, and it is important to ensure there are a sufficient number of young people entering the workforce to replace those entering retirement. Qualification registration is dependant on government funding, and, if Business & Administration is not seen as a priority sector, it will be difficult to ensure that funding rates do not decrease and that young people are not discouraged from entering this occupation for a future career. 4.2 International Benchmarking The CfA carries out international benchmarking projects on a regular basis, to ensure that the very best world-class practices can be collected and applied to the development of Business, Administration and Governance standards in the UK. International benchmarking supports best employment and occupational practices, and it supports the development of world-class standards for business support workers in both in the public and private sectors (including multinational, large, medium, small and micro businesses), across the UK. Since 2002, the CfA has carried out international benchmarking projects with the following countries: • • • • • Australia Germany Japan New Zealand Sweden The CfA also carries out benchmarking with high-performing national and global organisations. 45 Department for Innovation, Universities and Skills (2007): p.9 46 Leitch Report (2007) ©2008 CfA Page 27 During 2008, the CfA will be carrying out an international benchmarking project to investigate and evaluate three vital areas, recognised across the world as areas of best practice: Finland, Hong Kong and Financial Times Stock Exchange (FTSE) Top 100 and 250 Indexes. Finland and Hong Kong were selected because both countries have consistently been the two top performing countries in vocational numeracy, literacy and problem-solving in the Programme for International Student Assessment (PISA) studies over the past five years. To triangulate these findings, the CfA also intends to benchmark business, administration and governance practice in at least five companies from the FTSE Top 100 and 250 Indexes. ©2008 CfA Page 28 5. Character and Composition of Current Skills Needs 5.1 Overview of Required Skills 5.1.1 Strategic Decision-makers The personal attributes used in the CfA Governance standards are based on the leadership dimensions framework developed and validated by Professor Victor Dulewicz and Professor Malcolm Higgs, from Henley Management College. 47 The framework identifies three sub-groups of attributes applicable to the governance workforce: intellectual dimensions, managerial dimensions and emotional and social dimensions. The intellectual dimensions include the following attributes: • • • Critical analysis and judgement Vision and imagination Strategic perspective The managerial dimensions include: • • • • • Resource management Engaging communication Empowering; Developing Achieving The emotional and social dimensions include: • • • • • • Self-awareness Emotional resilience Intuitiveness Interpersonal sensitivity Motivation Conscientiousness These are skills and qualities that are acquired, over time, in positions of responsibility. 5.1.2 Designated Administrators The 2007 CfA employers survey identified skill areas required of administrators at different levels. Table 12, below, shows the 6 most important skills required at each level, in order of priority. 47 CfA (2007): pp.46–48 ©2008 CfA Page 29 Table 12: The main skills required by administrators Level Junior (equivalent to NQF level 1, SCQF level 4) Intermediate (equivalent to NQF levels 2 and 3, SCQF levels 5–7) Senior (equivalent to NQF level 4, SCQF level 8) Skill and Task Areas IT Managing information Communication Literacy Handling mail Numeracy IT Managing information Banking/dealing with money Planning and organising People management Communication IT People management Planning and organising Financial understanding/budgets Communication Managing information At junior level, skills in IT, managing information, verbal communication, literacy and mail handling, were quoted as being among the most important. At intermediate and senior levels, skills in IT and managing information continue to be among the most important, while other skill/task areas gain higher priority. At intermediate levels, skills in organising/planning and people management become more important, and at senior level there is greater requirement for skills and knowledge relating to finance and budgets. Overall, the highest proportion of both employers and administrators ranked skills in IT to be the most important skills within an administrative role, although 47% of administrators, compared with 23% of employers, prioritised this skill. In reality, the priority of particular skills is likely to differ depending on the actual job role of administrators. Research, carried out by the CfA, found that employers believe it important to have a well-skilled administration workforce. It was shown that 48: • • 98% of employers agreed that training and development was important in delivering an administration strategy effectively 67% of employers agreed that formal qualifications are important in delivering an administration strategy effectively Planning and Organisation Skills Planning and organisation skills are required by administrators at all levels. In 2008, a CfA survey with managerial administrators was commissioned to identify the tasks carried out by administrators that require planning and organisation skills. At level 1 (SCQF level 4), there is less of a requirement for planning and organisation skills than at higher levels. Working effectively with others requires planning and organisation skills at all levels, including level 1 (SCQF level 4), 48 CfA (2006) The CfA Vision ©2008 CfA Page 30 however, other tasks being carried out at this level mostly require a lesser degree of planning and organisation skills. From level 2 (SCQF level 5) onwards, planning and organisation skills are required by the majority of administrators for a greater number of tasks. These include producing documents, diary management, managing information and researching information. Table 13: Tasks carried out by administrators requiring planning and organisation skills Tasks Requiring Organising and Planning Skills Work effectively with others Producing documents Diary management Information management Researching information Organise meetings and events Organise business travel and accommodation Processing financial transactions Operating credit control Supervising an office Implementing change Payroll Running projects Producing a presentation Delivering a presentation Managing an office Managing contracts Managing projects Negotiating and agreeing budgets No staff at level None Other Level 1 2 3 4 68% 38% 33% 29% 29% 10% 10% 9% 4% 4% 4% 3% 3% 3% 3% 3% 2% 2% 1% 17% 7% 1% 83% 65% 66% 67% 58% 40% 32% 26% 13% 18% 14% 10% 14% 19% 10% 10% 5% 4% 2% 6% 3% 0% 89% 82% 88% 85% 77% 77% 71% 55% 45% 63% 45% 46% 48% 56% 43% 48% 30% 30% 21% 4% 0% 1% 92% 89% 92% 94% 89% 88% 79% 78% 71% 87% 80% 73% 81% 80% 77% 79% 69% 69% 67% 2% 0% 1% Note: Numbers over 50% are in bold red From level 3 (SCQF level 6 and 7) onward, the majority of administrators also require these skills to organise meetings and events, organise business travel and accommodation, supervising an office facility, producing presentations and processing financial transactions. At level 4 (SCQF level 8), planning and organisation skills are required to carry out all administrative tasks. Managing Information One in four level 1 (SCQF level 4) administrators are required to manage information. At levels 2 (SCQF level 5) and 4 (SCQF level 8), over half manage information, but at level 3 (SCQF level 6 and 7), two thirds are required to manage information. ©2008 CfA Page 31 Table 14: The level at which administrators are required to manage information Which Level are Expected to Manage Info Level 1 Level 2 Level 3 Level 4 % 24 54 66 53 When asked to state at which level this task was carried out the most, 44% said level 3 (SCQF level 6 and 7), 25% said level 2 (SCQF level 5) and 25% said level 4 (SCQF level 8). Figure 6: The level at which the task of answering customer queries is carried out the most Level 1 6% Level 4 25% Level 2 25% Level 3 44% The survey looked to further explore how the skills required to manage information vary at each level. At all levels, the majority of administrators require skills in literacy, verbal and written communication, keen attention to detail, using IT, ability to quickly learn, numeracy, personal organisation and using initiative. Other skills, such as knowledge of regulations and legislation, research, monitoring, creativity and planning, also become important for this task, from level 2 (SCQF level 5) up. As was seen with answering queries, level 4 (SCQF level 8) administrators require the greatest breadth and depth of all these skills, even though information management becomes a lesser part of their role. 91% of level 4 (SCQF level 8) administrators require knowledge of regulations and legislation, compared with 83% of level 3 (SCQF level 6 and 7) administrators, and just 56% of level 2 (SCQF level 5) administrators. This suggests that, as administrators become more senior, they are required to manage more confidential information. ©2008 CfA Page 32 Figure 7: The skills required by administrators to manage information 87% 78% Planning 52% 20% 88% 78% Creativity 55% 27% 84% 78% Monitoring 57% 29% 90% 80% Research 58% 30% 91% 83% Knowledge of regulations and legislation 56% 35% 82% 78% Problem solving 62% 37% 87% 82% 73% Initiative 54% 82% 81% Personal organisation 72% 55% 85% 80% 73% Numeracy Level 4 Level 3 Level 2 Level 1 57% 85% 82% 75% Ability to quickly learn 60% 92% 86% 80% Using IT 63% 92% 88% 79% Keen attention to detail 66% 93% 89% 83% Written communication 67% 93% 89% 84% Verbal communication 71% 95% 92% 86% Literacy 75% 0% 20% 40% 60% 80% 100% 120% IT Skills Like planning and organisation skills, IT skills are required by administrators at all levels. The 2008 survey identified the IT skills required of administrators at the different levels. ©2008 CfA Page 33 Figure 8: The IT skill requirements of Level 1 (SCQF level 4) administrators (such as office juniors) Word processing Information exchange/email Internet Browser Spreadsheets Basic Intermediate Advanced None Database Presentation software Specialist/bespoke software Artwork/imaging software Website Design 0% 20% 40% 60% 80% 100% Level 1 (SCQF level 4) administrators need to use a range of IT software packages, although mostly at just a basic level. 90% of level 1 (SCQF level 4) administrators need to use word processing software, 64% with basic competency and 24% with intermediate competency. Similarly, 87% need to use IT to exchange information. 58% require just basic competency in this area and 26% require intermediate competency. Level 1 (SCQF level 4) administrators are also required to use Internet browsers, spreadsheets and databases, the majority at a basic level. A minority of level 1 (SCQF level 4) administrators are required to use specialist/bespoke software, artwork/imaging software and website design software. Of those that are required to use IT in these ways, most require just basic skills. ©2008 CfA Page 34 Figure 9: The IT requirements of Level 2 (SCQF level 5) administrators (such as administrators, receptionists clerical assistants and filing clerks) Information exchange/email Word processing Internet Browser Spreadsheets Basic Intermediate Advanced None Database Presentation software Specialist/bespoke software Artwork/imaging software Website Design 0% 20% 40% 60% 80% 100% Over 90% of level 2 (SCQF level 5) administrators require some level of competency with information exchange/email software, word processing software, Internet browsers and spreadsheets. The majority of administrators at this level are expected to have intermediate competency in these IT areas. Basic or intermediate knowledge of databases and presentation software also becomes more important at level 2 (SCQF level 5) compared with level 1 (SCQF level 4). There is also a much greater demand at level 2 (SCQF level 5) for basic or intermediate skills using artwork/imaging software, website design software and specialist/bespoke software. However, compared with email, word processing, Internet browsers and spreadsheets, these areas are not a great priority. ©2008 CfA Page 35 Figure 10: The IT requirements of Level 3 (SCQF level 6 and 7) administrators (such as personal assistants, senior administrators and secretaries) Information exchange/email Word processing Spreadsheets Internet Browser Basic Intermediate Advanced None Database Presentation software Specialist/bespoke software Artwork/imaging software Website Design 0% 20% 40% 60% 80% 100% At level 3 (SCQF level 6 and 7), there is a larger requirement for IT knowledge in all areas, and generally at an advanced level of competency. Over 50% of level 3 (SCQF level 6 and 7) administrators are expected to have advanced skills in spreadsheets, word processing and email. Figure 11: The IT requirements of Level 4 (SCQF level 8) administrators (such as office managers, senior personal assistants and senior secretaries) Information exchange/email Word processing Spreadsheets Internet Browser Basic Intermediate Advanced None Database Presentation software Specialist/bespoke software Artwork/imaging software Website Design 0% 20% 40% 60% 80% 100% At level 4 (SCQF level 8), an advanced knowledge is required of all IT software. Over 80% require advanced skills using email and word processing software. Over 70% require advanced skills in databases, Internet browsers and spreadsheets, and over 50% need advanced knowledge of specialist/bespoke software and artwork/imaging software. ©2008 CfA Page 36 As administrators progress from lower to higher levels, there is a clear need for them to both broaden and advance their IT skills. Most skills demanded of administrators are across roles, but differ in degree according to the role and, to a certain extent, the size of the organisation. Roles in smaller organisations will have a broader range of responsibilities than the same role in a larger organisation. This is the same regardless of level, so both an office junior and an office manager will find that their roles demand far more skills in a smaller organisation than in a larger organisation. The advantage of the skills developed within administration is that they are skills that are essential in many other occupations. This ensures that administrators have a good grounding of underpinning skills that will create flexibility and mobility in their careers, should they wish to move into another occupation. The skills demanded are seen as cross-sector, and it is important that they are developed in the context that they are used in. Numeracy in administration, for example, is very different from numeracy in construction. 5.1.3 Specialist Administrators Like designated administrators, specialist administrators require a wide range of Business & Administration skills, including communication, literacy, numeracy, problem-solving, decision-making, customer service and information management skills. In addition, they will generally have highly developed IT skills and specialist skills and knowledge specific to the sector in which they work. Table 15: Examples of the knowledge required by specialist administrators Specialist Roles HR administrator sales/marketing administrator property administrator finance administrator registrar medical secretary legal secretary school secretary Specialist Knowledge Required human resources knowledge, such as recruitment legislation and data protection marketing knowledge legislation knowledge knowledge of finance knowledge of finance medical terminology legal terminology and processes legislation relating to children 5.1.4 Other Professionals The skills required of those who carry out their own administrative functions include 49: • • • • • • • • Communication Interpersonal skills Managing information Negotiating Planning and organising Presentation Problem-solving Using IT 49 CfA Self Administration NOS Development Research (2005) ©2008 CfA Page 37 These are skills that are essential to the functioning of day-to-day activities, as well as to those who are self-employed and need these skills to run their businesses effectively. 5.2 Skills Shortages Skills shortages are a lack of specific skills in the marketplace which result in vacancies which are hard to fill. Gordon Yates present findings that suggest employers are finding it increasingly difficult to recruit suitably qualified administrative staff 50. In 2007, 30% of companies reported that they find it increasingly difficult to recruit skilled support staff, compared with 25% of staff the previous year. Research by the LSC, Future Skills Scotland, Future Skills Wales and the DELNI, has examined the extent of skills shortages in the UK. Identification of skills shortages provides a means of understanding the skills demanded by employers. 5.2.1 England The National Employment Skills Survey (NESS), carried out by the LSC, in 2006, presented data on skills shortages as identified by employers in England, in 2005. The South East and Yorkshire and Humberside Regional LSCs have also published data on SSVs and skills gaps, but this is not discussed here, as there a few differences to the UK as a whole. Table 16: Overall distribution of vacancies and recruitment difficulties in administration 51 All England Administration Only Administration as % of All of England Vacancies HtFVs SSVs HtFVs as % of Vacancies 573,900 200,000 143,125 39 25 SSVs as % of HtFVs 72 69,625 14,000 10,225 20 15 73 12 7 7 SSVs as % of Vacancies Note: The NESS measured SSVs, initially, through an unprompted question asking for the reasons for vacancies being hard to fill, and then through a follow-up prompted question if skills, experience or qualifications were not initially mentioned. The data presented is the sum of both prompted and unprompted responses In England, the number of vacancies for administrative staff is relatively high, compared with other occupations. That said, employers find most administrative vacancies fairly easy to fill, with administration accounting for the second smallest number of HtFVs and SSVs. Approximately 14,000 vacancies in administration are hard to fill, accounting for around 20% of all vacancies. A very small proportion of administration job vacancies are a result of skill shortages (15% compared with 25% overall), and there are just 3 SSVs per every 1,000 employees, compared with the overall average of 7 per every 1,000 52. 50 Gordon Yates (2007–2008): p.22 51 LSC (2006a): p.33 52 LSC (2006a): p.32 ©2008 CfA Page 38 The NESS reports data which suggests that, generally, HtFVs which are not skillsrelated have less impact on businesses than HtFVs which are skills related 53. Within administration, SSVs account for approximately 73% of all HtFVs, almost the same as the overall figure of 72%. Assuming that within administration it is also true that HtFVs which are not skills-related have less impact on businesses than HtFVs which are skills related, would suggest that at least 4 out of 5 HtFVs in administration have a considerable impact on business. Therefore, while compared with other occupational areas skills shortages in administration are low, those that do exist are likely to have an impact on the businesses within which they occur. HtFVs can be put down to a broad range of reasons. These may include issues over location, unsocial hours, poor career progression and applicants having poor attitudes, to name just a few. In addition to these, there are three potential reasons for HtFVs which may be classed as SSVs. These are a lack of the required skills, a lack of work experience and a lack of qualifications. Table 17: Extent to which SSVs are attributed to a lack of skills, a lack of experience and a lack of qualifications 54 Reason for SSVs Administration SSVs Skills Experience Qualification 68% 43% 28% Note: Participants of the NESS were allowed to give multiple answers, which is why the percentages add up to more than 100% 68% of SSVs in administration were attributed to a lack of skills, 43% to a lack of experience and 28% to a lack of qualifications. It is interesting to see such a large contrast between the lack of skills and the lack of qualifications. Ideally, one would hope that applicants with the relevant qualifications would also have the relevant skills, yet the data seems to suggest that the qualifications are not providing applicants with the skills required within administration. If the number of administration SSVs is to be reduced, focus should be primarily on skills, since this is the largest contributing factor to SSVs. Since the obvious route to providing applicants with skills is through qualifications, both of these contributing factors can be tackled simultaneously. Administrators require a broad range of skills to carry out their tasks. The NESS also identified the different skill areas that contribute to SSVs. 53 LSC (2006a): p.42 54 LSC (2006a): pp.35–36 ©2008 CfA Page 39 Figure 12: The extent to which lacking skills areas contribute to SSVs in administration and SSVs generally 55 Customer-handling Technical and Practical Oral communication Written communication Skill Area Office/admin Problem-solving Overall Administration Literacy General IT Numeracy Management Team working IT professional Foriegnlanguage 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% 35% of administration SSVs, and 22% of all SSVs, were put down to a lack of office and administration skills. It is not surprising that a lack of office and administration skills should be responsible for more administration SSVs than SSVs generally. One would expect employers to be particularly interested in applicants for administration positions to have good office and administration skills, and, therefore, SSVs to be a result of applicants lacking these skills. That said, it is interesting to see that a lack of office and administration skills is not the single largest cause of administration SSVs. A lack of customer-handling skills, technical and practical skills, oral communication skills and written communication skills are all larger contributing factors to administration SSVs than a lack of office and administration skills. A lack of general and professional IT skills were also responsible for a considerably larger percentage of administration SSVs than for SSVs generally, showing the importance of IT skills within the administrative role. With administrators requiring such a broad range of skills, when tackling skill shortages, attention must be paid to all of these skill areas, not just office and administration skills. With the exception of elementary occupations, all occupational areas encompass a certain amount of administration. Figure 13, below, shows the contribution of administration SSVs within each occupational area. 55 LSC (2006a): p.38 ©2008 CfA Page 40 Figure 13: The extent to which a lack of skills in office and administration skills contribute to SSVs in different occupation areas Overall Administration Occupational area Sales Managers Personal service Associate professionals Professionals Operatives Skilled trades Elementary 0% 5% 10% 15% 20% 25% 30% 35% 40% A lack of office and administration skills contributes to more SSVs in administration than in any other occupational area. As discussed above, it is not surprising that this should be the case. A lack of office and administration skills is also responsible for a larger percentage of sales (28%), management (27%) and personal service (23%) SSVs than for SSVs overall (22%). All occupational areas examined in the NESS put a certain amount of SSVs down to a lack of office and administration skills. The demand for office and administration skills is clearly not just within administration itself, but spans – to a varying extent – across all occupational sectors. ©2008 CfA Page 41 Figure 14: Administration skill shortages as a proportion of all skill shortages in each SSC 56 31% Financial Services Skills Council 8% Proskills UK 11% 7% Creative & Cultural Skills 10% 12% 10% Skills for Logistics 7% e-skills UK Sector Skills Council 16% 6% Skillset 35% 9% Skills for Health 8% Lifelong Learning UK 8% Asset Skills 8% Go Skills 7% 8% Energy & Utility Skills 8% 15% 14% 14% 10% Administration as proportion of total workforce 9% 8% Cogent Administration SSVs 6% 6% Improve Ltd SkillsActive 11% 5% Skills for Care & Development 4% People 1st 4% Skillsmart Retail 4% Automotive Skills 4% ConstructionSkills 4% Lantra 4% SEMTA 3% SummitSkills 2% Skillfast-UK 2% 0% 5% 8% 6% 6% 14% 7% 6% 8% 7% 8% 10% 15% 20% 25% 30% 35% 40% Note: The NESS 2006 report excluded Skills for Justice and Government Skills, due to low base sizes The NESS examined administration SSVs within SSC. The SSC with the largest proportion of skill shortages in administration was the FSSC, who reported 35% of their SSVs to be within administration. Research carried out by the FSSC, found that 23% of employers reported a shortage of skilled or experienced 56 Data on administration SSVs is sourced from LSC (2006a). Data on the size of the administration workforce in each SSC is sourced from the Sector Skills Development Agency (SSDA) Sector Matrix ©2008 CfA Page 42 secretarial and administrative staff was in the top 10 of recruitment difficulties 57. While the NESS research and the FSSC research report quite different figures, both suggest that the financial services sector has a higher proportion of administration skill shortages than in other sectors. Considering that administration accounts for 31% of this sector, a much higher proportion than in any other sector, it is expected that administration skill shortages should affect this area more than other sectors. Arguably of more significance, are the Proskills UK findings, where administration is reported as accounting for 8% of occupations in this sector, but for 16% of SSVs. Almost the same is true for Skillset, where administration accounts for 6% of occupations and 11% (almost double) of SSVs. Other SSCs where administration accounts for a higher proportion of skill shortages than it does jobs, include Creative & Cultural Skills, e-skills UK and Go Skills. 5.2.2 Wales The Future Skills Wales 2005 Sector Skills Survey presents information on skill shortages in Wales, in 2005. Unfortunately, information specific to administration is limited, and so only a small amount can be said about skill shortages in Wales. Table 18: Administrative and secretarial HtFVs and SSVs 58 % Share of % Share of All HtFVs All SSVs Administrative and 5 4 Secretarial Administrative and secretarial HtFVs account for a relatively small proportion of HtFVs in Wales, just 5%. Similarly, administrative and secretarial SSVs account for a relatively small proportion of SSVs. Administration HtFVs vary in degree between different sectors. HtFVs are highest in the land-based sector (Lantra), being over six times more than the average for Wales (5%), at 31%. Other sectors showing higher than normal HtFVs include GoSkills (10%), SkillsActive (8%), Skills for Health (8%), Financial Services (6%), SEMTA (6%) and Construction Skills (6%). In relation to the other eight Standard Occupational Classification (SOC) groups, this represents the highest share for Lantra, the second highest for GoSkills, the third highest for Financial Services, Skills for Health, SkillsActive and SEMTA and fifth highest for Construction Skills. While having a lower than average share of HtFVs, this group is fourth highest in the hospitality sector (People 1st). 57 FSSC (2007) 58 Future Skills Wales, 2006: p.40 ©2008 CfA Page 43 Table 19: Administration HtFVs as a proportion of all HtFVs, by sector, in 200559 Sector Administration as % of Total Employment Financial Services People 1st Construction Skills Skills for Health Proskills GoSkills Lantra SkillsActive-UK Skills for Care SEMTA 26 4 14 12 10 9 15 11 9 7 Administration HtFVs as % of All HtFVs in Sector 6 2 6 8 4 10 31 8 1 6 SSVs can result from a combination of a lack of skills, a lack of qualifications and a lack of experience. The Sector Skills Survey asked employers in Wales to identify the causes of HtFVs. 60 Table 20: Extent to which HtFVs are attributed to a lack of skills, a lack of experience and a lack of qualifications 61 Skills Experience Qualifications Reason for Administration HtFVs 13% 13% 12% Reasons for All HtFVs 28% 14% 14% A lack of skills, experience and qualifications all appear to contribute equally to SSVs in administration, qualifications contributing slightly less. It is encouraging to see that a lack of skills contributes to far less administration HtFVs than it does to HtFVs generally. Employers in Wales were asked which skills areas applicants lacked. Unfortunately, Sector Skills Survey does not break this down into different occupational areas. That said, many of the skills covered are essential to carrying out administrative duties, and some general conclusions can be drawn about how a lack of different skills may contribute to administration SSVs. 59 Future Skills Wales: http://www.learningobservatory.com/fsw-2005-sector-skills-survey 60 Employers were asked to identify the reasons for HtFVs, not just SSVs. Therefore, the list of potential reasons was far more extensive than just a lack of skills, qualifications and experience. Since many of the causes of HtFVs do not relate to skill-shortages, they have not been discussed here 61 Note: the figures presented are a proportion of all HtFVs, not just SSVs ©2008 CfA Page 44 Figure 15: The extent to which a lack of different skill areas contribute to skill shortages, generally, in Wales 62 50 Other technical and practical skills Customer handling skills 47 43 Communication skills Problem solving skills 38 Skill area Team working skills 36 31 Literacy skills Using number 27 Management skills 27 General IT user skills 14 IT professional skills 13 Welsh language skills 11 Others 3 0 10 20 30 40 50 60 % Note: Multiple responses were given by respondents A large number of the skills required in administration were found to contribute to all SSVs in Wales. These include skills in customer handling, communication, problem-solving, literacy, numeracy and IT. Customer-handling and communication skills were found to be particularly lacking, a cause of 47% and 43% of SSVs, respectively. Management skills, which are required at higher levels in administration, contribute to 27% of SSVs. While it is impossible to say to what extent these skill areas contribute specifically to SSVs in administration, it is apparent that a number of the skills required in administration are resulting in SSVs generally. 5.2.3 Scotland Research carried out by Future Skills Scotland, identified HtFVs and SSVs in 2006. Table 21: Vacancies, HtFVs and SSVs in administration and overall 63 All Scotland Administration Only Administration as % of All of Scotland SSVs as % of Vacancies SSVs as % of HtFVs Vacancies HtFVs SSVs HtFVs as % of Vacancies 76,700 37,000 23,200 48 30 63 8,000 3,000 2,200 38 27 71 10% 8% 9% Administration accounts for 10% of all vacancies, 8% of all HtFVs and 9% of all SSVs in Scotland. This is encouraging, considering that administration accounts 62 Future Skills Wales, 2006: p.50 63 Future Skills Scotland, 2007: pp.14 & 22 ©2008 CfA Page 45 for 13% of employment in Scotland 64. 38% of administration vacancies are hard to fill, lower than the proportion of all vacancies that are hard to fill (48%). However, the proportion of HtFVs that are down to skill shortages is higher in administration than in Scotland generally, 71% compared with 63%. As a proportion of all vacancies rather than just HtFVs, skill shortages are slightly lower in administration than overall. Unfortunately, research carried out by Future Skills Scotland provides no information on the extent to which a lack of office and administration skills contributes to SSVs in different occupational areas or sectors. 5.2.4 Northern Ireland The Northern Ireland Skills Monitoring Survey, carried out by the DELNI, presents data on skills-shortages in Northern Ireland. Table 22: HtFVs and SSVs in 2005 and 200265 % of Employers with Administrative and Secretarial Vacancies % of Employers with Administrative and Secretarial HtFVs SSVs as % of HtFVs 2005 14 10* 45 2002 10 7* *Caution, small numbers In 2005, 14% of employers reported administration and secretarial vacancies; this is an increase from 2002, when 10% reported vacancies. This increase has taken administration from ranking as the sixth largest contributor to job vacancies in 2002, to the third largest in 200566. Similarly, the proportion of employers reporting HtFVs increased from 7% in 2002 to 10% in 2005. In 2005, 45% of HtFVs, in administration, were put down to a shortage of skills. When asked to state which HtFVs were the most difficult to fill, 9% of employers said administration and secretarial vacancies. Compared with the other occupational groups examined in the Monitoring Skills Survey, administrative and secretarial HtFVs are the sixth single most difficult to fill. SSVs can result from a combination of a lack of skills, a lack of qualifications and a lack of experience. The Skills Monitoring Survey asked employers in Northern Ireland to identify the causes of HtFVs 67. 64 Future Skills Scotland, 2007: p.22 65 DELNI, 2007: pp.18, 24 & 35 66 Of nine occupational areas used by DELNI (2007) 67 Employers were asked to identify the reasons for HtFVs, not just SSVs. Therefore, the list of potential reasons was far more extensive than just a lack of skills, qualifications and experience. Since many of the causes for HtFVs do not relate to skill-shortages, they have not been discussed here ©2008 CfA Page 46 Table 23: Extent to which HtFVs are attributed to a lack of skills, a lack of experience and a lack of qualifications 68 Skills Experience Qualifications Reason for Administration HtFVs* 43% 50% 34% Main Reason for Administration HtFVs** 11% 17% 16% * Respondents gave multiple answers, which is why the percentages add up to more than 100% ** Respondents were asked about reasons for HtFVs, rather than just SSVs, and they could give many other potential reasons, which is why the figures do not add up to 100% (see footnotes) The most common reason for HtFVs in administration was a lack of experience. 43% of HtFVs were put down to a lack of skills, and 34% down to a lack of qualifications. When asked to specify the main reason for HtFVs in administration, 17% of employers said a lack of experience, 16% a lack of qualifications and 11% a lack of skills. Employers in Northern Ireland were asked which skills areas applicants lacked. Unfortunately, the Skills Monitoring Survey does not break this down into different occupational areas. That said, many of the skills covered are essential to carrying out administrative duties, and some general conclusions can be drawn about how a lack of different skills may contribute to administration SSVs. Figure 16: The extent to which a lack of different skill areas contribute to skill shortages generally, in Northern Ireland 69 35 Other techncal and practical skills Communication skills 30 22 Customer handling skills Skill area Management skills 15 Problem solving skills 11 Using numbers 11 General IT user skills 9 IT professional skills 9 Literacy skills 9 8 Team working skills 15 Other 4 None 0 5 10 15 20 25 30 35 40 % Skills in communication are essential to carrying out administrative duties. 30% of employers stated that a lack of communication skills were a cause of SSVs. Customer-handling skills are also often required by administrators, especially when carrying out tasks such as answering queries, and liaising with external 68 Note that the figures presented are a proportion of all HtFVs, not just SSVs 69 DELNI (2007): p.36 ©2008 CfA Page 47 colleagues and/or clients. 22% of employers said a lack of customer-handling skills contribute to SSVs. As with many occupations, using IT is an essential skill required for carrying out a broad range of tasks. 9% of employers stated that a lack of both general IT user skills, and IT professional skills, contributed to SSVs. Other skills required in administration at different levels, include literacy, numeracy, problem-solving, management and teamworking. All of these skills contribute to a certain amount of SSVs in Northern Ireland. With the information available, it is not possible to accurately say how much a lack of these skills contributes to administration SSVs, but it is clear that some of the skills required in administration are found lacking in many applicants generally. 5.2.5 Attitudes Although the focus of this report is skills, it should be noted that it is not purely skills that employers are looking for in applicants. Gordon Yates highlight employers concerns that they cannot find administrative staff with the right attitude. 70 “This elusive attitude is described by words such as: enthusiasm, ability to multi-task, sense of responsibility, thoroughness, common sense, initiative and a down-to-earth approach. Many employers voice a real sense of frustration about this, and find it hard to understand why finding people with the ‘right attitude’ is so difficult.” 71 As pointed out previously, the reasons for HtFVs extend further than just skillsshortages. For example, Future Skills Wales identified 23% of administrative HtFVs to be due to applicants having the wrong attitude. 5.2.6 Summary Employers report that they are finding it increasingly difficult to recruit suitably qualified administrative staff. Yet skills-shortages affect administration as a designated job role less than they do other occupational areas. However, there are still significant skill shortages within administration that need to be addressed. While SSVs in administration job roles may be lower than other occupational areas, a lack of office and administration skills contribute to SSVs in all occupational areas, to some degree. In England, skill shortages in administration result from applicants lacking a broad range of skills. While some skill areas contribute to administration SSVs more than others, there is a demand for all skill areas. Skills with the greatest demand include customer-handling skills, oral and written communication skills and office and administration skills. Information is not available on the extent to which different skills areas contribute to SSVs in Scotland, Northern Ireland and Wales. However, it is clear that a number of the skills required to carry out administrative duties, in any job role, are demanded across all occupational areas in all nations of the UK. In Northern 70 Gordon Yates (2007–2008): p.8 71 Gordon Yates (2007–2008): p.8 ©2008 CfA Page 48 Ireland and Wales, there is particular demand for customer-handling and communication skills. The examination of skill shortages in different SSCs in England, found that the financial services sector has a particularly high proportion of administrators, and, equally, has a high demand for skilled administrators. The demand for skilled administrators was found to be high (in comparison to the size of the administration workforce within the sector) in a number of SSCs. 5.3 Skills Gaps Skills gaps exist where employees lack some or all of the skills required in order to perform their function effectively. Along with skill shortages, discussed previously, skills gaps provide a means of assessing the skills that employers demand of their administrative staff. In 2006, the skills gaps identified in the CfA Vision report included: 72 • • • • • • • IT Verbal and written communication Planning and organising Customer service Teamwork Problem-solving Finance The report also found that organisations with more than 500 employees are more likely to have reported skills gaps with their administration staff than SMEs. This may be because SMEs are able to identify skills gaps more quickly. Research carried out by the LSC, Future Skills Scotland, Future Skills Wales and DELNI, provides information on skills gaps in England, Scotland, Northern Ireland and Wales. 5.3.1 England In 2005, skills gaps were reported in 5% of administration jobs in England 73. However, the 2007 CfA employer survey found the problem of skills gaps in administration to be greater, with 16% of employers in England reporting skills gaps among their administrators. Table 24: Skills gaps in administration between 2003 and 2005 74 Total Number of Skills Gaps 2003 2004 2005 2,400,000 1,540,000 1,265,000 Administration Skills Gaps as Proportion of All Skills Gaps 13% 12% 12% Approximate Number of Administration Skills Gaps 310,000 180,000 150,000 72 CfA (2006) The CfA Vision 73 LSC (2006a): p.68 74 LSC (2006a): p.69 ©2008 CfA Page 49 Between 2003 and 2005, the number of skills gaps in administration dropped by over half, and skill gaps generally dropped by almost half. This meant that while there was a considerable decline in skill gaps in administration, as a proportion of all skills gaps, administration skills gaps barely changed, dropping by just 1%. In 2005, administration skills gaps accounted for 12% of all skills gaps. The only occupational areas to account for a higher proportion of skills gaps, in 2005, were sales and elementary occupations. Skill gaps in managerial roles accounted for 11% of skills gaps, similar to administration. For all major occupational groups, the primary cause of skills gaps was put down to a lack of experience or staff being recently recruited. However, the secondary reasons varied, in administration, being the employer’s failure to train staff 75. Figure 17: The extent to which lacking skills areas contribute to skills gaps in administration jobs and skills gaps generally 76 Office and admin Customer handling General user IT Problem-solving Skill area Team working Written communication Overall Administration Oral communication Technical and practical IT professional Literacy Management Numeracy Foreign languages 0% 10% 20% 30% 40% 50% 60% Note: Figures are a proportion of skills gaps, not employees or employers. The NESS identified the extent to which different skill areas contribute to skills gaps in administration. A lack of office administration skills was not only the most common cause of skills gaps in administration jobs, but also significantly higher than average, contributing to 55% of administration skills gaps, compared with 20% of all skills gaps. Office and administration skills are required more by administrators than in other occupations, and, therefore, it is not unusual that a lack of office and administration skills should be such a contributing factor to skills gaps in this area. A lack of customer-handling skills and general IT user skills were also reported as contributing to over 50% of administration skills gaps. A lack of skills in problemsolving, IT professional, written communication and literacy were also more common than average in administration. All of these skills are required by administrators and demanded by employers. 75 LSC (2006a): p.71 76 LSC (2006a): p.72 ©2008 CfA Page 50 Figure 18: The extent to which a lack of office and administration skills contribute to skills gaps in different occupational areas 77 Administrative Managers Occupational group Associate profs Professionals Sales Skilled trades Personal services Elementary occupations Operatives 0% 10% 20% 30% 40% 50% 60% A lack of office and administration skills contribute to far more skills gaps in administration than skills gaps in other occupational groups. As explained previously, this finding is not unexpected. A lack of office and administration skills contributes to some skills gaps in all occupational groups to a varying degree. Managerial, professional and associate professional occupations all demand a relatively high degree of office and administration skills. Figure 19: The impact of skill gaps in administration on businesses 5% 10% 33% 52% Very significant Fairly significant Not very significant Not at all significant 77 LSC (2006a): p.72 ©2008 CfA Page 51 The 2007 CfA employers survey explored the impact that skills gaps have on businesses. The majority of employers (52%), stated that the impact of skills gaps in administration on their business was not very significant. However, a considerable proportion disagreed, 33% stating that skills gaps have a fairly significant impact on business, and 10% saying skills gaps have a very significant impact. Figure 20: Skills gaps in administration across the regions of England 78 Administration employment profile All England Skills gaps in Administration London Eastern Region North East Yorkshire and Humber West Midlands South West South East North West East Midlands 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% The NESS identified that the extent to which skills gaps affect administration vary across regions in England. Skills gaps were highest in London, where 15% of skills gaps were in administration. Administration also makes up the highest proportion of the workforce in London. The North West and the East Midlands were found to have the lowest proportion of administration skills gaps. 78 LSC (2006a): p.82 ©2008 CfA Page 52 Figure 21: The extent to which a lack of office and administration skills contribute to skills gaps in different English regions 79 All England Eastern London Region West Midlands North West Yorkshire & Humber North East South East East Midlands South West 0% 5% 10% 15% 20% 25% 30% A lack of office and administration skills was found, by the NESS, to vary across regions in England. In eastern England, a lack of office and administration skills was found to contribute to 28% of skills gaps, 8% up on England as a whole. London also had a higher than average proportion of skills gaps caused by a lack of office and administration skills. In the South East, a lack of office and administration skills contributed to 15% of skills gaps, and in the East Midlands 16%. Figure 22 shows the skills gaps in administration occupations within each of the SSCs. The Skills for Justice SSC, reported the highest proportion of skills gaps in administration (41%). The FSSC, which was also found to have a high proportion of SSVs, reported 30% of skills gaps to be in administration. Skillset reported 28% of skills gaps to be in administration. 79 LSC (2006a): p.84 ©2008 CfA Page 53 Figure 22: Skills gaps in administration occupations within SSCs 80 All Skills for Justice Financial Services Skills Council Skillset Asset Skills Lifelong Learning Skills for Health Skills for Logistics Energy & Utility Skills Sector Skills Council Non-SSC employers Creative & Cultural Skills GoSkills Automotive Skills Skillfast-UK ConstructionSkills SkillsActive Cogent Proskills UK SEMTA Lantra Skills for Care & Development e-skills UK SummitSkills Improve Ltd Skillsmart Retail People 1st 0% 10% 20% 30% 40% 50% 80 LSC (2006a): p.87 ©2008 CfA Page 54 5.3.2 Wales In 2005, 5% of administrative and secretarial employees in Wales were reported as having skills gaps. 7% of employers said that skills gaps among administrators were the most critical in holding back business objectives. Figure 23: Technical and practical skills lacking in administrative and secretarial occupations Skills area IT, computer skills 18% Finance, accounts, bookkeeping 16% Communication, interpersonal 11% Software, programming, databases 10% 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% In administration, there is a fairly high demand for skills in IT; accounts and bookkeeping; communication and software, programming and databases. IT and computer skills are especially lacking, this was reported in 18% of cases. Accounts/bookkeeping skills, generally associated with administration, were also found to be lacking among associate professionals, professionals and managers/senior professionals, contributing to 11%, 6% and 13% of skills gaps, respectively. This reflects the growing trend for professionals and managers to complete some of their own administration. The Welsh Assembly Government, note that administrative skills gaps are most prevalent among public administration, education and health establishments. As these are all occupations and industry sectors that are expected to grow over the foreseeable future, the implication is that without more resources, skills gaps are likely to grow in these areas 81. Data specific to SSCs, shows skills gaps, generally and in administrative jobs, are highest in the finance sector (see figure 24). Skills gaps were found to exist among 13% of all employees and 15% of administrators in this sector. Administration skills gaps were also found in the Land-based and Environmental (Lantra) sector, and these were higher than skill gaps generally, affecting 8% of administration employees compared with just 4% of employees, generally, in the sector. In 13 of the sectors, skills gaps were found to affect administration jobs less than other jobs, generally, in the sector. Administration skills gaps were found to be lowest in the food and drink manufacturing and processing sector (Improve) and the business services engineering sector (Summit Skills). 81 WAG (2006) The Annual Learning and Skills Assessment 2006-2009 ©2008 CfA Page 55 Figure 24: Skills gaps affecting administrative jobs in different sectors Financial Services 13% Lantra 15% 8% 4% 8% People 1st 9% 6% 6% Go Skills Automotive 5% Construction Skills 5% Creative and Cultural Skills 5% SEMTA 5% Skillsfast UK 5% Skills for Care 5% 5% Skills for Health 4% Asset Skills 3% 4% Skillsmart Retail 4% 3% E-Skills UK 3% Lifelong Learning UK 3% 3% ProSkills 3% Skills for Logistics 3% 3% 6% 7% 9% 6% Admin skills gaps as % of admin jobs in sector 5% All skills gaps as % of total employees in sector 4% SkillsActive UK Cogent 7% 6% 8% 6% 6% 6% 2% Summit Skills 1% Improve 0% 2% 10% 3% 4% 6% 8% 10% 12% 14% 16% Off-the-job training is generally quite high for administrative and secretarial SOC groups, with the norm for the all-Wales data being 35%. Some sectors report significantly higher levels of off-the-job training for this occupational group, including Skills for Health (60%), Lifelong Learning (48%), Financial Services (44%), Creative and Cultural Skills (44%), Asset Skills (42%), Improve (42%), Skills for Care (42%) and SEMTA (41%). The high incidence of off-the-job training in these sectors reflects the need for increasing the skills of administrators. The lowest incidence of off-the-job training for this SOC group is found in the hospitality sector (People 1st), at 11%. ©2008 CfA Page 56 Table 25: Off-the-job training offered to administrators in Wales 82 SSC Incidence of Off-the-job Training Within the Sector, Compared with the All-Wales Norm of 35% Financial Services Skillsmart Retail People 1st Construction Skills Skills for Health E-skills Lifelong Learning Proskills GoSkills Automotive Skills Lantra EU Skills SkillsActive-UK Summit Skills Asset Skills Improve Skills for Care Cogent SEMTA Creative and Cultural Skills Skills for Logistics 44 17 11 25 60 24 48 33 28 23 17 28 32 20 42 42 42 35 41 44 29 5.3.3 Scotland Future Skills Scotland reported skills gaps in 8% of administration jobs. The 2007 CfA employers survey found that 80% of Scottish employers considered these skills gaps to have a fairly significant impact on business. However, this finding should be treated with caution, as it was based on low numbers. 82 Future Skills Wales: http://www.learningobservatory.com/fsw-2005-sector-skills-survey ©2008 CfA Page 57 Figure 25: Skills lacking among employees with skills gaps 83 57% Planning and organising 56% Skill areas lacking Customer handling Team working 51% Problem solving 51% 45% Technical and practical 42% Oral communication 32% Written communication 30% Strategic management 25% Basic computer literacy/using 24% Advanced IT or software 19% Literacy 18% Numeracy 0% 10% 20% 30% 40% 50% 60% There is no information specific to the skill areas that contribute to administration skills gaps, or how a lack of office and administration skills specifically contribute to skills gaps generally. However, Future Skills Scotland does provide some information on how a range of different skill areas contribute to skills gaps generally, all of which are crucial within administration. For example, a lack of basic IT skills were found to contribute to 25% of skills gaps, and a lack of advanced IT skills contribute to 24%. While it is not possible to say how this relates specifically to skills gaps in administration, these skills (especially basic IT) are essential for carrying out administrative tasks. Customer-handling skills, which are central to many administrative functions, were found to be lacking in 56% of skills gaps. 5.3.4 Northern Ireland The 2007 CfA employers survey found that 33% of employers in Northern Ireland felt there to be a skills gap in the administrative function of their organisation. However, this figure was calculated on small numbers, and so should be treated with a certain amount of caution. 83 Future Skills Scotland (2007): p.30 ©2008 CfA Page 58 Figure 26: Reasons for skills gaps in administrative and secretarial occupations 84 Lack of experience or recently recruited staff 40% Reason for skills gaps Training programmes only partially completed 30% 15% Other Failure to train and develop staff 8% Inability of workforce to keep up with change 3% High Staff turnover 1% Recruitment problems 1% No Particular Reason 1% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% The most common reason for skills gaps in administrative and secretarial jobs was identified as being a lack of experience among staff, or staff having been recently recruited. This was followed by staff having not yet completed their training programmes. Figure 27: Skills that need to be improved by administrative and secretarial staff with a lack of full proficiency 85 General IT user 56% Communication 40% Customer handling 29% Problem solving 24% Skill area Team working 20% Other technical and practical skills 16% Literacy 16% IT professional 9% Any other difficulties 8% Management 7% Numeracy 6% None 4% 0% 10% 20% 30% 40% 50% 60% The main skill area in need of improvement by administration staff with skills gaps, was general IT, required in 56% of cases. Communication skills, customer84 DELNI (2007): p.64 85 DELNI (2007): p.66 ©2008 CfA Page 59 handling skills and problem-solving skills require improvement among a large number of administrators with skills gaps. The high demand for these skills reflects the importance of these skills at all levels. Management skills require improvement in 7% of cases, possibly requiring improvement among higher-level administrators more so than lower level. 5.3.5 Summary The majority of available information on skills gaps relates to England, however from the information that is available on Northern Ireland, Scotland and Wales, it is possible to identify clear similarities between the four nations. In England, 12% of skills gaps were identified as being in administration, in 2005. The actual number of administrators with skills gaps has decreased in recent years, as have skills gaps generally. The main reason for skills gaps, both in England and Northern Ireland, are either a lack of experience or recently recruited staff. Other common causes of skills gaps include the employers’ failure to train in England, and employees waiting to complete training in Northern Ireland. The main skill areas that were identified as contributing to administration skills gaps included office and administration, customer handling, general and professional IT, problem-solving and (written) communication. A lack of office and administration skills contribute to skills gaps in all occupational groups. As well as administration roles, skills gaps in managerial, professional and associate professional occupations often result from a lack of office and administration skills. ©2008 CfA Page 60 6. Future Skills Needs 6.1 Changes to the Pattern of Skills Requirements 6.1.1 Administrators and Specialists Of UK firms seeking to improve product or service quality, 70% will require additional high-performance skills, such as teamworking and customer handling. 86 There is a growth in knowledge-based work, and this favours skills such as problem-solving, communication and teamwork. 87 An increased and diversified workload places a burden on administrative staff that must support the new internal processes, which puts IT professional competences and office administrative skills at a premium. As IT continues to develop, administrators will be required to continuously develop their IT skills. Customer attraction and retention is affected by deficiencies in sales, promotional and marketing skills, as well as basic numeracy among staff. In terms of occupations, it is critical that functional managers, customer service and administrative staff are equipped with all of these skills. 88 Due to time restrictions, it was not possible to carry out qualitative scenario research to provide further insights into the likely skill requirements of administrators, at all levels, in the future. 6.2 Forecast Shifts in Patterns of Employment The shape of the working population is dynamic, and it is the aim of the CfA to remain one step ahead of changes. We work to ensure that our standards continue to accommodate the requirements of both the changing administration workforce and employers. It is therefore essential to understand not only how administration looks today, but also how it is likely to look in the future. 6.2.1 Designated and Specialist Administrators Data on growth and projected changes in the size of the administration workforce are taken from Working Futures 89, which makes calculations based on the administration workforce as defined by SOC2000. Consequently, the information provided looks at just a specific group of administrators, mainly levels 2–4 (SCQF levels 5–8). Table 26: Projections of the administration workforce between 1984 and 201490 UK: Employment Levels Administration (000’s) Percentage of Workforce 86 87 88 89 90 ©2008 CfA 1984 1994 2004 2009 2014 3,843 3,955 3,790 3,627 3,463 15 15 13 12 11 Denholm and Macleod (2003): p.18 HM Treasury et al (2004): p.18 FSSC (2007) Wilson, R., Homenidou, A. and Dickerson, A. (2006) Wilson, R., Homenidou, A. and Dickerson, A. (2006): p.70 Page 61 According to Wilson, R., Homenidou, A. and Dickerson, A. (2006), in 2009 the level 2–4 administration workforce will account for 12% of the total workforce – a considerable proportion. However, since 1994, the size of the administration workforce has been in gradual decline. The wider use of IT in administration roles, improved communication systems and the movement towards managerial and professional occupations undertaking their own administration, can be cited as some of the reasons for this decrease. The decline should not be taken to mean that administration will provide poor career prospects in the future. Administration will continue to employ a large number of people, accounting for a significant proportion of the entire working population. Employers will be required to replace workers who leave due to retirement, career moves, mortality or other reasons. This is known as the ‘replacement demand’ 91. Table 27: The replacement demand in administration 2004–2014 92 Administrative, Clerical and Secretarial Positions 2004–2014 Expansion Demand 2004–2014 Replacement Demand 2004–2014 Total Demand -327,000 1,523,000 1,197,000 As we have seen, by 2014, expansion demand (the creation of new jobs for new entrants) for administrative, clerical and specialist occupations will be a negative 327,000, mainly due to the number of individuals in the workforce who will be retiring in the 10-year period from 2004 onwards. However, the replacement demand is a positive 1,523,000, meaning that the total requirement will be 1,197,000. Future Skills Scotland has shown that the forecast for Scotland is similar to that for the whole of the UK. In 2007, 350,000 people in Scotland were employed in administrative and secretarial roles, accounting for 13% of the working population 93. While in the UK, generally, it is predicted that expansion demand for administrative jobs will be negative, in Scotland it is predicted that, by 2017, the total number of administrative and secretarial employees will have increased by 8,000, and will continue to represent 13% of the working population in Scotland. 91 Wilson, R., Homenidou, A. and Dickerson, A. (2006): p.81 92 Wilson, R., Homenidou, A. and Dickerson, A. (2006): p.85 93 Future Skills Scotland (2008): p.27–29 ©2008 CfA Page 62 Table 28: Actual (2007) and projected (2017) administrative and secretarial employment in Scotland 94 Total Employment 2007 2017 Administrative and Secretarial 350,000 355,000 Administrative and Secretarial as % of All Occupations 13 13 All Occupations 2,628,000 2,712,000 Table 29: Projected total net demand for administrative and secretarial staff in Scotland, 2007–2017 95 Total Employment (2007) Expansion Demand Replacement Demand Job Openings (2017) Administrative and Secretarial 350,000 4,000 135,000 140,000 Administrative and Secretarial as % of All Occupations 13 5 15 14 All Occupations 2,628,000 84,000 922,000 1,006,000 The slight predicted growth in the size of the administrative and secretarial market in Scotland, combined with the large replacement demand, means that administrative and secretarial occupations will require 140,000 new entrants into the area by 2017. Job openings in administrative occupations are forecast to account for 14% of all job openings. 6.2.2 Self-administration Table 30: Projections of the self-administration workforce between 1984 and 2014 96 Self-administrators (000s) 1984 1994 2004 2009 2014 10,473 12,902 17,106 18,346 19,677 The self-workforce comprises the majority of the workforce. Between 1984 and 2004, this workforce grew by almost 7 million. By 2014, this growth is projected to have continued, reaching an estimated 19,677,000. 94 Future Skills Scotland (2008): p.27–29 95 Future Skills Scotland (2008): p.27–29 96 Wilson, R., Homenidou, A. and Dickerson, A. (2006): p.70 ©2008 CfA Page 63 Table 31: The replacement demand for self-administrators, 2004–2014 97 Self-administration (000s) 2004–2014 Expansion Demand 2004–2014 Replacement Demand 2004–2014 Total Demand 2,570 6,177 8,745 The total demand for the self-administration workforce, in the decade ending 2014, is huge, estimated to be over 8.7 million. This means that while the level 2–4 administration workforce is projected to decrease in size, the workforce that requires the skills to carry out their own administration is seen to grow considerably. 6.2.3 Summary The administration/secretarial workforce has been decreasing in size over the years and this is expected to continue. By 2014, the workforce is expected to stand just short of 3.5 million. Because of the large replacement demand, administration will continue to provide many jobs in the future. In the decade ending 2014, it is estimated that administration will require an input of almost 1.2 million people. These new entrants into the administration workforce will require training to provide them with the skills demanded by employers. As well as a large demand for administrators in the future, the demand for administration skills will grow massively, due to projected growth in the workforce whom carry out some or all of their own administration. 97 Wilson, R., Homenidou, A. and Dickerson, A. (2006): p.85 ©2008 CfA Page 64 References BBC News 24 (2008) Police Review Proposes Shake-up, [online], Available: http://news.bbc.co.uk/1/hi/uk/7231907.stm [7 Feb 2008]. Borders and Immigration Agency, Department for Work and Pensions, HM Revenue and Customs & Communities and Local Government (2007) Accession Monitoring Report A8 Countries May 2004–March 2007, Crown Copyright. Council for Administration (CfA) Governance National Occupational Standards, Available online: http://www.ukstandards.org. Council for Administration (CfA) Self-administration National Occupational Standards, Available online: http://www.ukstandards.org. 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(2006) Working Futures 2004–2014: National Report, Coventry: University of Warwick Institute of Employment Research. ©2008 CfA Page 67 Appendices Appendix 1: 2007 CfA Employer Questionnaire The Council for Administration (CfA) is undertaking a quantitative and qualitative questionnaire in order to understand the administration workplace. This questionnaire will take approximately 15 minutes. 1. Which sector does your organisation mainly operate in? PROMPT LIST. SINGLE CODE. • Agriculture, hunting and forestry • Fishing • Mining and quarrying • Manufacturing • Electricity, gas and water supply • Construction • Retail • Hotels and restaurants • Transport, storage and communication • Financial services • Real estate, renting and business activities • Public administration • Education • Health and social work • Community, social and personal service activities • Other 2. Which of these categories best describes the type of organisation you work for? READ LIST.SINGLE CODE. • private • public • charity • voluntary 3. How many staff does your organisation employ in the UK? READ LIST. SINGLE CODE. • 1-9 • 10-49 • 50-99 • 100-249 • 250+ 4. If you consider there to be any gender imbalance within the administrative function of your organisation? READ LIST. SINGLE CODE. • Yes • No • Don’t know ©2008 CfA Page 68 5. IF Q4 = YES, ASK: what is the main reason for this? PROMPT LIST. SINGLE CODE. • applicants are predominantly female • part time roles attract more women • tradition/perception of the role • career development/poor opportunities • job title is ‘female’ and does not engage men? 6. Does your organisation use Virtual Assistants? PROMPT LIST. SINGLE CODE. • Never heard of the concept • Yes, sometimes • Yes, all the time • No, never 7. What training do you offer your administration staff? PROMPT LIST. MULTIPLE CODE. • Customer service • Finance • Time management • Information management • IT • Literacy • Non verbal communication/body language • Numeracy • Organisation/planning • Organising meetings and events • People/line management • Presentations • Problem-solving • Project management • Sales or marketing • Team working • Verbal communication • Written communication • None 8. IF Q6 = NONE, ASK: why is this the case? WRITE IN. 9. IF Q6 = ANYTHING, EXCEPT NONE, ASK: How do you identify an Administrator’s training needs? WRITE IN. 10. What priority would you say is given to administration training in your organisation? READ LIST. SINGLE CODE. • high priority • medium priority • low priority ©2008 CfA Page 69 11. What are the three skill areas for which training is most required for administration staff in your organisation? PROMPT LIST. SINGLE CODE. Skill answering queries banking/dealing with money change management diary management financial understanding/budgets handling mail information management IT/databases/spreadsheets legislation/regulation knowledge literacy non verbal communication numeracy organising and planning organising travel and accommodation organising meetings and events people management presentations problem-solving procuring services/contracts project management promotion of company/products supervising an office team working telephone systems text processing using office equipment verbal communication welcoming visitors written communication Priority 12. What skills are currently needed by administrators in your organisation at Junior Level? RECORD 1ST, 2ND, 3RD, ALL OTHERS. Skill answering queries banking/dealing with money change management diary management financial understanding/budgets handling mail information management IT/databases/spreadsheets legislation/regulation knowledge literacy non verbal communication numeracy organising and planning organising travel and accommodation ©2008 CfA Priority Page 70 organising meetings and events people management presentations problem-solving procuring services/contracts project management promotion of company/products supervising an office team working telephone systems text processing using office equipment verbal communication welcoming visitors written communication Intermediate Level? RECORD 1ST, 2ND, 3RD, ALL. SINGLE CODE. Skill answering queries banking/dealing with money change management diary management financial understanding/budgets handling mail information management IT/databases/spreadsheets legislation/regulation knowledge literacy non verbal communication numeracy organising and planning organising travel and accommodation organising meetings and events people management presentations problem-solving procuring services/contracts project management promotion of company/products supervising an office team working telephone systems text processing using office equipment verbal communication welcoming visitors written communication ©2008 CfA Priority Page 71 Senior Level? RECORD 1ST, 2ND, 3RD, ALL. SINGLE CODE. Skill answering queries banking/dealing with money change management diary management financial understanding/budgets handling mail information management IT/databases/spreadsheets legislation/regulation knowledge literacy non verbal communication numeracy organising and planning organising travel and accommodation organising meetings and events people management presentations problem-solving procuring services/contracts project management promotion of company/products supervising an office team working telephone systems text processing using office equipment verbal communication welcoming visitors written communication Priority 13. Would you say there is a gap between the needs of your organisation and the current skills of your administrators? SINGLE CODE. • yes • no – skip to 17 • don’t know 14. If YES, what is the impact of these skills gaps on your business? READ LIST. SINGLE CODE. • very significant • fairly significant • not very significant • not at all significant ©2008 CfA Page 72 15. What additional skills will be needed in the future by administrators in your organisation at Junior Level? RECORD 1ST, 2ND, 3RD, ALL. SINGLE CODE. Skill Priority answering queries banking/dealing with money change management diary management financial understanding/budgets handling mail information management IT/databases/spreadsheets legislation/regulation knowledge literacy non verbal communication numeracy organising and planning organising travel and accommodation organising meetings and events people management presentations problem-solving procuring services/contracts project management promotion of company/products supervising an office team working telephone systems text processing using office equipment verbal communication welcoming visitors written communication Intermediate Level? RECORD 1ST, 2ND, 3RD, ALL. SINGLE CODE. Skill answering queries banking/dealing with money change management diary management financial understanding/budgets handling mail information management IT/databases/spreadsheets legislation/regulation knowledge literacy non verbal communication numeracy organising and planning organising travel and accommodation organising meetings and events people management presentations ©2008 CfA Priority Page 73 problem-solving procuring services/contracts project management promotion of company/products supervising an office team working telephone systems text processing using office equipment verbal communication welcoming visitors written communication Senior Level? RECORD 1ST, 2ND, 3RD, ALL. SINGLE CODE. Skill answering queries banking/dealing with money change management diary management financial understanding/budgets handling mail information management IT/databases/spreadsheets legislation/regulation knowledge literacy non verbal communication numeracy organising and planning organising travel and accommodation organising meetings and events people management presentations problem-solving procuring services/contracts project management promotion of company/products supervising an office team working telephone systems text processing using office equipment verbal communication welcoming visitors written communication Priority 16. What is the average length of service in years and months for administrators in your organisation at: • junior level? • intermediate level? • senior level? WRITE IN FOR EACH. ©2008 CfA Page 74 17. Approximately what percentage of administrators move into other, nonadministrative roles within your organisation? WRITE IN. 18. Have you heard of the following administration qualifications? READ LIST. MULTIPLE CODE. • NVQ/SVQ • apprenticeships • foundation degree 19. IF HEARD OF NVQ/SVQ AT Q16, ASK: how effective are NVQ/SVQs in terms of providing the skills that you would need in order to work effectively in business and administration? READ LIST. SINGLE CODE. • Very effective • Effective • Not very effective • Not at all effective • Don’t know 20. IF HEARD OF APPRENTICESHIP AT Q16, ASK: how effective are apprenticeships in terms of providing the skills that you would need in order to work effectively in business and administration? READ LIST. SINGLE CODE. • Very effective • Effective • Not very effective • Not at all effective • Don’t know 21. IF HEARD OF FOUNDATION DEGREES AT Q16, ASK: how effective are foundation degrees in terms of providing the skills that you would need in order to work effectively in business and administration? READ LIST. SINGLE CODE. • Very effective • Effective • Not very effective • Not at all effective • Don’t know 22. Over the last year have you found it more or less difficult to recruit skilled administration staff? SINGLE CODE. • more difficult • less difficult • no change 23. Over the last year, have you found it more or less difficult to retain skilled administration staff? SINGLE CODE. • more difficult • less difficult • no change ©2008 CfA Page 75 24. Approximately what percentage of your administrators currently on a permanent contract were originally employed on a temporary basis? WRITE IN. 25. Recent research indicates that administration is the third hardest role to recruit for – does this accurately reflect your organisation? READ LIST. SINGLE CODE. • yes • no • don’t know 26. What is more important in a candidate: varied work experience in several sectors or in-depth work experience within your sector? SINGLE CODE. • several sectors • within your sector • either • don’t know 27. Do you think the number of administrators in your organisation is likely to change in the future? READ LIST. SINGLE CODE. • yes, will increase • yes, will decrease • no • don’t know 28. To what extent do you agree with the following statements? READ LIST. SINGLE CODE FOR EACH. strongly agree agree disagree strongly disagree don’t know the administration function is critical to the effectiveness of the organisation the administration function is critical to meeting business objectives the administration function is an important support mechanism ©2008 CfA Page 76 Appendix 2: 2007 Administrators’ Questionnaire The Council for Administration (CfA) is undertaking a quantitative questionnaire in order to understand the administration workplace. This questionnaire will take approximately 15 minutes. 1. Which sector does your organisation mainly operate in? PROMPT LIST. SINGLE CODE. • Agriculture, hunting and forestry • Fishing • Mining and quarrying • Manufacturing • Electricity, gas and water supply • Construction • Retail • Hotels and restaurants • Transport, storage and communication • Financial services • Real estate, renting and business activities • Public administration • Education • Health and social work • Community, social and personal service activities • Other 2. What is your current job title? WRITE IN. 3. How many people do you undertake administrative duties for? SINGLE CODE. • 1 • 2 or 3 • 4 or 5 • 6-9 • 10+ 4. What time do you start work? WRITE IN. 5. What time do you finish work? WRITE IN. 6. What is your age bracket? SINGLE CODE. • Under 20 • 21 – 30 • 31 – 40 • 41 – 50 • 51 – 60 • 61 – 65 • Over 65 ©2008 CfA Page 77 7. Which region do you live in? PROMPT LIST. SINGLE CODE. • England – North • England – Midlands • England – South West • England – South East • England – Greater London • Scotland • Wales • Northern Ireland 8. What skills are currently required in your role? RECORD 1ST, 2ND, 3RD, ALL OTHERS. Skill answering queries banking/dealing with money change management diary management financial understanding/budgets handling mail information management IT/databases/spreadsheets legislation/regulation knowledge literacy non verbal communication numeracy organising and planning organising travel and accommodation organising meetings and events people management presentations problem-solving procuring services/contracts project management promotion of company/products supervising an office team working telephone systems text processing using office equipment verbal communication welcoming visitors written communication ©2008 CfA Priority Page 78 9. What additional skills do you think will be needed in the future for your role? RECORD 1ST, 2ND, 3RD, ALL OTHERS. Skill answering queries banking/dealing with money change management diary management financial understanding/budgets handling mail information management IT/databases/spreadsheets legislation/regulation knowledge literacy non verbal communication numeracy organising and planning organising travel and accommodation organising meetings and events people management presentations problem-solving procuring services/contracts project management promotion of company/products supervising an office team working telephone systems text processing using office equipment verbal communication welcoming visitors written communication Priority 10. Which of the following duties and tasks do you undertake as part of your role? READ LIST. MULTIPLE CODE. • Welcome visitors • Handle mail • Store and retrieve information • Make and receive telephone calls • Use office equipment • Maintain customer relations • Manage diary systems • Organise business travel and accommodation • Deal with visitors • Store, retrieve and archive information • Research and report information • Organise and support meetings • Use a telephone system • Operate office equipment • Prepare text from notes • Prepare text from shorthand • Prepared text from recorded audio instructions • Produce documents ©2008 CfA Page 79 • • • • • • • • • • • • • • • • • • • • • • • Work effectively with other people Supervise an office facility Procure products and services Manage and evaluate customer relations Monitor information systems Plan and run projects Research, analyse and report information Plan, organise and support meetings Make a presentation Organise and coordinate events Design and produce documents Plan and implement innovation and change Manage an office facility Manage contracts Negotiate and agree budgets Monitor and review the implementation of corporate objectives, strategies and policies Inform and facilitate corporate decision-making Evaluate internal and external factors and promote partnership working Manage risk Create and manage information systems Manage projects Chair meetings Promote innovation and change 11. Do you know of any administrators that have changed career? READ LIST. SINGLE CODE • Yes • No 12. If Q11 = YES. If so, what kind of role have they moved into? WRITE IN. 13. How long have you been in your present role? WRITE IN. 14. What was your previous job title? WRITE IN. 15. How long were you in this role? WRITE IN. (REPEAT Q14 and 15 UNTIL NONE) 16. Do you plan to stay working in administration for the rest of your career? READ LIST. SINGLE CODE. o Yes o No o Don’t know ©2008 CfA Page 80 17. What is your highest level of qualification gained? READ LIST. MULTIPLE CODE. • Level 1 e.g. GCSEs grades D-G • Level 2 e.g. GCSEs grades A*-C/NVQ Level 2 • Level 3 e.g. A Levels or NVQ Level 3 • Level 4 e.g. 1st year of a degree • Level 5 e.g. 2nd year of a degree • Level 6 e.g. full 3 year degree • Level 7 e.g. Masters degree • Level 8 e.g. Doctorate 18. Have you heard of the following administration qualifications? READ LIST. MULTIPLE CODE. • NVQ/SVQ • Apprenticeship • Foundation Degree 19. IF HEARD OF NVQ/SVQ AT Q16, ASK: how effective are NVQ/SVQs in terms of providing the skills that you would need in order to work effectively in business and administration? READ LIST. SINGLE CODE. • Very effective • Effective • Not very effective • Not at all effective • Don’t know 20. IF HEARD OF APPRENTICESHIP AT Q16, ASK: how effective are apprenticeships in terms of providing the skills that you would need in order to work effectively in business and administration? READ LIST. SINGLE CODE. • Very effective • Effective • Not very effective • Not at all effective • Don’t know 21. IF HEARD OF FOUNDATION DEGREES AT Q16, ASK: how effective are foundation degrees in terms of providing the skills that you would need in order to work effectively in business and administration? READ LIST. SINGLE CODE. • Very effective • Effective • Not very effective • Not at all effective • Don’t know 22. What training has been offered to you in your current role over the last 12 months? PROMPT LIST. MULTIPLE CODE. • Customer service • Finance • Time management • Information management • IT • Literacy ©2008 CfA Page 81 • • • • • • • • • • • • • Non verbal communication/body language Numeracy Organisation/planning Organising meetings and events People/line management Presentations Problem-solving Project management Sales or marketing Team working Verbal communication Written communication none 23. What are the top three most important things you want from your job? READ LIST. WRITE IN. • effective line manager • a good salary • incremental salary increases • interesting work • to be valued • a good working atmosphere • good work colleagues • a manageable workload • good promotion/progression prospects • training and development • performance and target related bonuses • regular appraisals and target setting • management responsibilities 24. Do you agree or disagree with the following statements: READ LIST. SINGLE CODE. • my job is challenging • my job is pressurised • my job is enjoyable • my job is boring • my role is valued by others • my role is supported by others • my role is important to the success of the business • my role is something to be proud of ©2008 CfA Page 82 Appendix 3: 2008 Senior Administrators’ Questionnaire The CfA is carrying out research into the skills required within an administrative role and are looking to learn more about some of the tasks that you and administrative colleagues carry out on a daily basis and the skills that are required of you and your administrators. Section 1: Level 1 Administrators The CfA would like to learn a little more about the administrative tasks typically carried out at level 1. A level 1 administrator includes positions such as an office junior and post-room worker. 1a) Are there any level 1 administrators working in your organisation? Yes/No 1b) If Yes: What tasks do level 1 administrators in your organisation carry out on a daily basis? (Initially ask unprompted and afterwards prompt from the following list) Use office equipment (e.g. fax, photocopier, franking machine) Handle mail Store and retrieve information (filing) Use email Use word processing software Use spreadsheets software Use database software Welcome visitors Make and receive telephone calls Manage diary systems Organise and support meetings Organise business travel and accommodation Other (please specify) 1c) If No: What tasks would you expect a level 1 administrator to carry out? Section 2: Using IT The CfA is interested to explore further how required IT skills vary for administrators at different levels. 2) Please state what level of competency (basic, intermediate, advanced or none) you would expect a level 1 administrator to have for the following types of IT software: ©2008 CfA Page 83 Repeat question for level 2, 3 and 4 administrators. Basic (B), Intermediate (I), Advanced (A), None (N) Level 1 Level 2 Level 3 Level 4 Word processing Spreadsheets Information exchange/email Presentation software Internet browser Database Website design Artwork/imaging software Specialist/bespoke software Section 3: People management skills 3a) Do you believe that people management skills are required at Level 2? Yes/No 3b) If Yes: How many people would a level 2 administrator be expected to manage? 3 c) If No: At what level do you believe an administrator first requires skills in people management? Section 4: Information management I now wish to ask you about information management. 4a) At which level are administrators expected to manage information? (allowing for multiple responses, e.g. levels 1, 2 and 3). 4b) At which level is this task carried out most? 4c) Which of the following skills are required for level 1 administrators to manage information? Repeat question for levels 2, 3 and 4. (at the levels stated by respondents in previous question) Level 1 Level 2 Level 3 Level 4 Literacy Keen attention to detail Creativity Research Knowledge of regulations and legislation Verbal communication ©2008 CfA Page 84 Written communication Using IT Planning Initiative Ability to quickly learn Monitoring Numeracy Personal organisation Problem-solving Other (please specify) Section 5: Answering queries I now wish to ask you about answering queries. 5a) Which level are administrators expected to answer customer queries? (allowing for multiple responses, e.g. levels 1, 2, 3 and 4). 5b) At which level is this task carried out most? 5c) Which of the following skills are required for level 1 administrators to answer customer queries? Repeat question for levels 2, 3 and 4. (at the levels stated by respondents in previous question) Level 1 Level 2 Level 3 Level 4 Literacy Keen attention to detail Creativity Research Knowledge of regulations and legislation Verbal communication Written communication Using IT Planning Initiative Ability to quickly learn Monitoring Numeracy Personal organisation Problem-solving Other (please specify) ©2008 CfA Page 85 Section 6: Organising and planning The CfA is interested to explore further how the organisation and planning skills required of administrators vary at different levels. 6) What tasks do a level 1 administrator carry out that require organising and planning skills? Repeat question for levels 2, 3 and 4 Level 1 Level 2 Level 3 level 4 Information management Diary management Organising business travel and accommodation Researching information Organising meetings and events Producing documents Working effectively with others Supervising an office Payroll Processing financial transactions Operating credit control Running projects Producing a presentation Delivering a presentation Implementing change Managing and office Managing contracts Negotiating and agreeing budgets Managing projects Other (Please specify) ©2008 CfA Page 86