Automotivate The Sector Skills Agreement for the Downstream Motor Industry Sector Skills Agreement – Stage 3 Gap Analysis and Market Testing Scotland Report November 2006 Institute of the Motor Industry Fanshaws Brickendon Hertford SG13 8PQ 01992 511521 www.motor.org.uk Scotland Stage 3 – Gap Analysis & Market Testing Page 1 of 71 November 2006 Contents Page PREFACE ...................................................................................................................................... 4 1 INTRODUCTION..................................................................................................................... 5 2 EXECUTIVE SUMMARY ........................................................................................................ 6 3 THE EVIDENCE.................................................................................................................... 10 3.1 SKILLS NEEDS .................................................................................................................. 10 3.1.1 The Sector .............................................................................................................. 10 3.1.2 Geodemographics .................................................................................................. 11 3.1.3 Workforce Profile .................................................................................................... 11 3.1.4 Skills Categories ..................................................................................................... 11 3.1.4.1 3.1.4.2 3.1.4.3 3.1.4.4 3.1.4.5 3.1.5 3.1.5.1 3.1.5.2 3.1.5.3 3.1.5.4 Employability Skills ........................................................................................................... 12 Basic Skills ....................................................................................................................... 12 Generic Skills.................................................................................................................... 12 Technical Skills................................................................................................................. 12 Management and Leadership Skills.................................................................................. 12 Approach to Employer Engagement....................................................................... 13 Published Reports ............................................................................................................ 13 Roadshow Debates .......................................................................................................... 13 Bi-lateral Discussions ....................................................................................................... 13 Employer Depth Engagement .......................................................................................... 13 3.1.6 Employer Depth Engagement................................................................................. 14 3.1.7 Engagement Strategy for Stages 4 and 5 .............................................................. 15 3.1.8 Approach to Communication, Discussion and Evaluation...................................... 15 3.2 SUPPLY-SIDE EVALUATION ............................................................................................... 17 3.2.1 SWOT Analysis – Scotland..................................................................................... 17 3.2.2 Geographic Context................................................................................................ 18 3.2.3 Changes to Provision by Skills Category................................................................ 19 3.2.3.1 3.2.3.2 3.2.3.3 3.2.3.4 3.2.3.5 3.2.4 3.2.5 4 Employability Skills ........................................................................................................... 19 Basic Skills ....................................................................................................................... 20 Generic Skills.................................................................................................................... 21 Technical Skills................................................................................................................. 21 Management and Leadership Skills.................................................................................. 22 Approach to Supply-Side Consultation................................................................... 22 Balance of Evidence – the Learner Input ............................................................... 23 PROPOSED COLLABORATIVE SOLUTIONS.................................................................... 24 4.1 MANAGEMENT &LEADERSHIP ............................................................................................ 24 4.1.1 First-Line Management Skills ................................................................................. 24 4.1.2 Higher Level Management Skills ............................................................................ 26 4.2 TECHNICAL SKILLS ........................................................................................................... 28 4.2.1 Raising technical skills capacity and capability ...................................................... 28 4.3 GENERIC SKILLS .............................................................................................................. 31 4.3.1 Generic Skills.......................................................................................................... 31 4.3.2 Generic Skills – Customer Service ......................................................................... 33 4.3.3 Legislation............................................................................................................... 35 4.3.4 Basic Skills.............................................................................................................. 36 4.3.5 Core Skills............................................................................................................... 37 4.4 BALANCED WORKFORCE................................................................................................... 38 4.4.1 Sector Attractiveness – Bringing a wider range of people into the sector .............. 38 4.4.2 Career Pathways to be more clearly identified and promoted................................ 41 4.4.3 Achieving a Balanced Workforce............................................................................ 43 4.4.4 High Calibre and Extra-Sector Recruitment ........................................................... 45 4.4.5 Employability........................................................................................................... 47 4.5 STRATEGIC OVER-ARCHING SOLUTIONS ............................................................................ 49 Scotland Stage 3 – Gap Analysis & Market Testing Page 2 of 71 November 2006 4.5.1 Developing Quality Education and Training Provision (1) - Quality Improvement Strategy ................................................................................................................................ 49 4.5.2 Developing Quality Education and Training Provision (2) – Centres of Excellence51 4.5.3 Skills Passport ........................................................................................................ 53 5 OVERALL REVIEWING & MONITORING ARRANGEMENTS ........................................... 55 5.1 5.2 5.3 GENERAL ......................................................................................................................... 55 CHECKPOINT REVIEW ....................................................................................................... 55 SPECIFIC REVIEWING AND MONITORING ............................................................................ 56 APPENDICES .............................................................................................................................. 57 APPENDIX 1: GAPS IN PROVISION ................................................................................................. 57 Work Based Learning Enrolments: Scotland ........................................................................ 57 Further Education Enrolments: Scotland .............................................................................. 57 5.3.1 Higher Education .................................................................................................... 58 APPENDIX 2: UNITED KINGDOM SWOT ANALYSIS ......................................................................... 60 Strengths ............................................................................................................................... 60 Weaknesses.......................................................................................................................... 61 Opportunities ......................................................................................................................... 63 Threats .................................................................................................................................. 65 Solutions Mapped to Scottish National Priorities .................................................................. 67 APPENDIX 3: SCOTTISH STAKEHOLDERS ENGAGED DURING THE SSA PROCESS ............................ 68 REFERENCES ............................................................................................................................. 69 Table of Figures FIGURE 1: ENTERPRISE TURNOVER ................................................................................................. 10 FIGURE 2: ENTERPRISE SKILLS FOCUS TYPOLOGY ........................................................................... 14 FIGURE 3: SWOT ANALYSIS SCOTLAND .......................................................................................... 17 FIGURE 4: EMPLOYMENT VOLUMES.................................................................................................. 19 FIGURE 5: WORK BASED LEARNING ENROLMENTS: SCOTLAND ......................................................... 57 FIGURE 6: FURTHER EDUCATION ENROLMENTS: SCOTLAND.............................................................. 57 FIGURE 7: HIGHER EDUCATION ........................................................................................................ 58 FIGURE 8: STAKEHOLDERS ENGAGED DURING THE SSA PROCESS .................................................... 68 Scotland Stage 3 – Gap Analysis & Market Testing Page 3 of 71 November 2006 PREFACE This report is one of a suite of reports prepared as part of the sector skills agreement (SSA) negotiated between stakeholders in the retail automotive sector. The SSA process commenced in 2004 and most reports present a view of the sector in 2006. The SSA represents a milestone in the development of processes that will ensure the United Kingdom has sufficient numbers of appropriately skilled people to meet the future needs of the retail automotive industry and in particular to meet the targets identified by Lord Sandy Leitch in his 2006 report, a Prosperity for all in the global economy - world class skills. This report reflects the work of Automotive Skills Ltd (ASL), which was the original sector skills council (SSC) for the retail automotive sector. Readers should be aware that in July 2007 ASL merged with the Institute of the Motor Industry IMI, the industry’s professional body since 1920, and in September 2007, the Sector Skills Development Agency (SSDA) issued IMI with a licence to be the SSC for the sector. The name ‘Automotive Skills’ is still used by IMI in relation to its role in developing national occupational standards and qualification frameworks. The nature of the retail automotive sector means that research and policy development is ongoing. Also, there are ongoing changes to the sector’s footprint. Details of current research, the wide range of policy issues being addressed in the sector and the most recent definition of the sector’s footprint can to be found on the IMI’s website, www.motor.org.uk. Sarah Sillars Chief Executive Officer The Institute of the Motor Industry Scotland Stage 3 – Gap Analysis & Market Testing Page 4 of 71 November 2006 1 Introduction This report forms part of the third group of reports produced from the development and moderation of Stage 3 of the Sector Skills Agreement (SSA) for the motor industry downstream of the factory gate. This publication covers the whole of Scotland and there are reports for each of the other home nations and the UK as a whole published separately. Stage 3 of the SSA has drawn on the outputs and analyses from Stages 1 and 2, which have been discussed, refined and agreed with employers, providers and stakeholders across Scotland. This report outlines the agreement of what the skills needs of the sector are and provides a series of solutions that form the basis of the draft action plans contained herein. Priorities for action have been agreed and set and at the time of writing negotiations with some employers and key partners are already underway as the SSA moves into Stages 4 and 5. The draft action plans flag up indications of where contributions to the SSA can be expected to be derived from prior to the firmer commitments to action that will be negotiated through Stages 4 and 5. The contents of this report also include the results of the gap analysis and market testing activities carried out as part of Stage 3. The fundamental purpose of this report is to stimulate discussion between interested parties to ensure that the negotiation phases are informed and productive with a mutually beneficial and synergistic outcome. For this reason this report is designed as a consultation document setting out the key issues and priorities for the sector, what the solutions may be and what contributions employers, providers, stakeholders and other partners may be able to make to the successful implementation of the final agreements. Automotive Skills hopes readers will find this report illuminating and stimulating and looks forward to working with all interested parties to deliver action plans for the benefit of all. Scotland Stage 3 – Gap Analysis & Market Testing Page 5 of 71 November 2006 2 Executive Summary The automotive sector downstream of the factory gate, with its annual turnover of £8.1bn and a GVA of £1.4bn, is a far more significant contributor to the Scottish economy than is generally realized. Around 43,000 employees depend directly on the sector and its 5,000 enterprises are inextricably linked along the supply chain to major global automotive manufacturing businesses. The sector enjoys low profitability, pay levels are subdued, the business outlook is often shortterm in the light of which workforce development is a challenge for a great many employers. Progressive consolidation and concentration has been a feature of the sector since the 1960s and continues at a pace as product technological complexity increases demand for capital expenditure. Employers with predominantly urban or predominantly rural market environments face differing employee and customer dynamics that impact on recruitment and retention as well as pay and training. Although there has been a long standing focus on technical occupations within the sector they actually account for only about a quarter of all positions. There are many widely differing roles across the footprint, which are equally requiring development. When looking at skills gaps and shortages five main categories have been identified from Stages 1 and 2 through the gap analysis: • Management & Leaderships Skills • Employability Skills • Basic Skills • Generic Skills • Technical Skills As part of Stage 3, Automotive Skills has employed a wide range of engagement techniques with employers to review the outputs of the first two stages, the gaps between needs and provision and the potential solutions. The draft action plan solutions need to be seen in the context of a dichotomy of broadly aligned employers who can be categorised as “Survivors” or “Aspirers” according to a range of Scotland Stage 3 – Gap Analysis & Market Testing Page 6 of 71 November 2006 characteristics. Differing solutions will have differing applications to these two main groups of employers depending on their needs. The SWOT analysis identified some key issues for the sector, which are summarised below: • Strengths (internal) include; • Significant contribution of sector to the economy • Relatively immune from (cheap) foreign competition • Strong supply chain supports training and development • Continuing consolidation supports increased professionalism and workforce development opportunities • Significant existing training in technical skills to be built on • Widespread sector employer recognition of benefits of improved skills • Wide variety of success project initiatives support skills • Improving IAG support for sector • Weaknesses (internal) include; • • • Depressed profitability • High capital investment requirements • Constant pressure on training budgets • Non-aspirational sector image and reputation • Gender imbalance • Internalised recruitment tendency • Low managerial qualification penetration • Widespread concerns about the quality of training Opportunities (external) include; • Sector Skills Agreement • 14-19 agenda initiatives will help encourage higher calibre to join sector • Changes to Block Exemption Regulation • Wide range of potential employees with transferable skills • Increasing volumes of HE qualified leavers • Increasingly responsive delivery of training and development • Engaged public sectors skills and workforce development organisations and institutions Threats (external) include; • Sector not a priority in any home nation or English region Scotland Stage 3 – Gap Analysis & Market Testing Page 7 of 71 November 2006 • Supply chain pressures (including acquisition and/or control) • Changes to Block Exemption Regulation • Pace/type of product technological change • Ever increasing consumer/customer expectations • Increasing legislative controls • Political response to climate change (CO2 issues) • Social changes to purchase behaviour (sales and aftersales) • Economic downturn (especially falling house prices) • New types of competition • Declining volumes of school leavers • Increasing volume of HE qualified leavers • Increasing volumes of skilled workers retiring • structural changes to provision and its funding • public sector unresponsive to employer needs Main areas contained within the proposed collaborative solutions outlines in the draft action plans are grouped under the following headings: • Developing First Line Management Skills • Developing Higher Level Management Skills • Raising Technical Skills Capacity and Capability • Developing Generic Skills • Increasing Legislative Awareness • Developing Basic Skills • Developing Key/Essential Skills • Improving the attractiveness of the Sector • Developing Career Pathways • Balancing the Workforce • High Calibre & Extra Sector Recruitment • Developing Employability Skills • Developing Quality Development Programmes • Quality Improvement Strategy (QIS) • Centres of Excellence • Skills Passport • Development of the downstream automotive Sector Qualifications Strategy (SQS) will drive from the SSA action plans. Scotland Stage 3 – Gap Analysis & Market Testing Page 8 of 71 November 2006 Automotive Skills looks forward to engaging with employers, stakeholders and other partners in negotiation focusing on the development and delivery of solutions for the greater benefit of the sector. Scotland Stage 3 – Gap Analysis & Market Testing Page 9 of 71 November 2006 3 The Evidence - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -- 3.1 Skills Needs 3.1.1 The Sector The sector in Scotland comprises thirteen industry-defined sub-activities across a range of business types downstream of the vehicle factory gate. In 5,000 businesses across Scotland turning over £8.1bn annually it employs 43,000, of whom 75% are male, producing a total GVA of £1.4bn each year. It is dominated by a few very large employers and the 80% that are microbusinesses. Sector profitability is relatively poor, with 1½% net profit ratio seen as typical. Some sub-sectors, such as body repair, suffer the poorest profitability, whilst others such as contract hire and leasing enjoy better margins. Overall this depresses pay levels, investment in training, development of skills making it short-termist, especially in the face of high capital equipment and facilities investment requirements. Business regulation and legislation as well as cash flow in the face of competition are particular concerns for Scottish employers. Historically the sector has been target driven and there is still room to improve customer focus. At the same time increasing emphasis on careers, rather than occupations, is recognised as necessary. Furthermore, the sector’s image and reputation would benefit from improvement through greater professionalism across the spectrum of enterprises since this would aid recruitment and help to attract higher quality employees. Figure 1: Enterprise Turnover Enterprise Turnover Reprofiled from SIC 50 to match Automotive Skills Footprint UK £138,635 ENGLAND £123,872 £36,111 South East Country/Region East of England £16,352 London £13,148 North West £13,014 West Midlands South West Yorkshire & the Humber East Midlands SCOTLAND WALES North East NORTHERN IRELAND £12,864 £10,303 £9,605 £8,690 £8,064 £3,917 £3,786 £2,783 £m Scotland Stage 3 – Gap Analysis & Market Testing Page 10 of 71 November 2006 3.1.2 Geodemographics Automotive Skills’ research highlighted a dichotomy between predominantly urban and predominantly rural geodemographics, with the latter more likely to suffer vacancies because of poorer communications and access, although their customer and employee base is more stable with lower turnover than in more urban areas. Training and development is easier to deliver and less disruptive to enterprises in urban areas. Annual turnover of employees averages about one in four, although this varies widely by employer and location. Poaching is a common response to skills shortages in the face of high turnover, especially in more urban areas. Recruitment from out with the sector remains modest and opportunities exist to bring a wider range of experiences into many occupations within the footprint. This applies equally to graduates. 3.1.3 Workforce Profile Although significant in terms of FE candidate volumes, technicians and related occupations account for only a quarter of all employees in the footprint. Male employees dominate the workforce, but union and staff association membership is just 9% and those employed in the public sector account for just 2½%. New recruits tend to come from school (40%) or FE (20%) with HE accounting for just 7%, well below that for other sectors. Improving human resource protocols will assist in broadening the skills pool from which the sector draws its talent, as well as helping development of employees entering and already within the sector. 3.1.4 Skills Categories Considering the skills gaps of existing employees in the sector, highlighted by 23% of employers in Scotland, and the shortages relating to recruits, highlighted by 5% of employers, five skills categories have been identified by employers as requiring action. Many of these could be said to apply across sectors. Nearly half of Scottish employers said customer service and quality standards were suffering as a result of skills gaps. Five-out-of-six employers are using training to address these problems. Automotive Skills’ research has suggested that high quality management and leadership is needed to motivate employees to succeed and develop positive can-do attitudes in a highly competitive market place. Scotland Stage 3 – Gap Analysis & Market Testing Page 11 of 71 November 2006 3.1.4.1 Employability Skills A higher proportion of employees (especially young people) need to be interested, enthusiastic, willing to learn, reliable and motivated and employers have often put the importance of these attributes above existing technical skills sets. 3.1.4.2 Basic Skills Employers believe that there are still too many school leavers joining the workforce with inadequate numeracy and literacy standards and that too much remedial action has to be taken. 3.1.4.3 Generic Skills These skills are increasingly essential for any business in the twenty-first century. Sector employers have identified four generic skills as being key gaps; planning and organising (46% of employers), problem-solving (45%), team working (41%), and customer handling (39%). Three quarters of employers agreed that such generic skills were essential for their organisations to remain competitive. 3.1.4.4 Technical Skills Sixty-nine percent of sector employers in Scotland identified a lack of proficiency in sectorspecific technical skills among their workforces. The phenomenal pace of technical change in the products sold, serviced, and repaired by the sector is requiring a corresponding increase in technical capabilities of those carrying out the work. Nine out of ten employers definitely agree that there is a considerable need for new training and up-skilling as a result of these manufacturer-driven changes, which will continue at an increasing pace. 3.1.4.5 Management and Leadership Skills Employers have argued that management and leadership is key to achieving success in this sector, as in others, and that this category is in many ways the most important set of skills to improve. Considering that just 14% of managers in the sector have a level S/NVQ 4+ (SCQF Level 8+) qualification, it could be said that there is room to increase the proportion of managers so qualified. Leadership skills in particular are in need of development with 73% of employers definitely agreed this is required. If enterprises are to become less bureaucratic and more like learning organisations significant change will be required in this area. Scotland Stage 3 – Gap Analysis & Market Testing Page 12 of 71 November 2006 3.1.5 Approach to Employer Engagement Through Stage 3 the findings from Stages 1 and 2 have been communicated to employers, providers and stakeholders through a series of channels primarily including the following: 3.1.5.1 Published Reports Five reports have been published for the UK and each of the home nations for Stages 1 and 2 of the Sector Skills Agreement. These have been available on both the websites of the Sector Skills Development Agency (SSDA) and that of Automotive Skills, with invitations to comment and to provide feedback. 3.1.5.2 Roadshow Debates Automotive Skills has held a series of Roadshow Debates across the whole of the UK beginning in September 2006 with the last one held at the end of October 2006. Employers, providers and stakeholders were invited by personal contact and through our website. At each of the half-day debating sessions the findings of Stages 1 and 2 were presented together with outline solutions followed by a discussion to 'market test' these to address the gap analysis. These were informal open debates without assumptions or preconceptions designed to identify the priorities for the sector. 3.1.5.3 Bi-lateral Discussions In addition to the roadshow debates, key and interested employers unable to attend the debates were met to discuss the same issues in a one-to-one setting. 3.1.5.4 Employer Depth Engagement In addition Automotive Skills commissioned a research agency to conduct a series of 26 depth interviews with employers to explore, in a confidential and objective manner, the issues arising out of Stages 1 and 2. This activity supplemented the output of Stages 1 and 2 as well as contributing to Stage 3. The output of this activity has been fed back into this report, is summarized below and more details can be found in the annex. This report forms part of the consultation and negotiation process with employers, providers, stakeholders and other interested parties through Stages 4 and 5 right up to sign off of the SSA. Scotland Stage 3 – Gap Analysis & Market Testing Page 13 of 71 November 2006 3.1.6 Employer Depth Engagement As part of Stage 3 twenty six face-to-face depth interviews were carried out with employers across the UK, of which six were conducted in Scotland. The interviews were spread around the footprint’s sub activities. The interviews showed that employer engagement and response to potential solutions varied according to the structure of the organisation and fundamentally reflects profitability. It is worth noting that vehicle dealer profitability fell to just 0.6% net profit on sales in August 2006 (Source: Motortrader , 23rd October 2006, p 10). What is clear is that a one size fits all solution will not address the issues sufficiently. Figure 2: Enterprise Skills Focus Typology “Survivors” “Aspirers” Type of Business Often smaller, independent, long established, family run. Medium/large independents, franchised, larger retailers, groups Sites Often single site Often multi-site, also single site Employees Typically micro-businesses; <5 employees Micro- and larger businesses; >5 employees Business Imperative Survival Looking for opportunities to grow Skills Focus Often can’t (or don’t want) to cope with the rigours of training and development. Lead by progressive attitudes or external influences (e.g. manufacturers, CSI). Skills Gap/Shortage Categories recognised Larger problem with: Smaller problem with: Employability skills Basic skills (esp <25s) Generic skills Technical skills Management and leadership needs not often recognised. Impact of skills gaps/shortages more significant on smaller workforce. Generic skills (esp. customer handling) Technical skills Management and Leadership Skills The less employable without minimum requirements have been screened out already. Technical needs More likely to want more ‘old school’ mechanics (which are hard to find) to work on older cars. Tend to replace rather than repair – on newer vehicles. Pace of technological change causing some difficulties. Approach to Employees Less likely to have the time to look after apprentices, etc. Few have basic standards for entry. More likely to have HR function, pay tends to be better. Easier to attract better staff. Scotland Stage 3 – Gap Analysis & Market Testing Page 14 of 71 November 2006 Approach to Training “Survivors” “Aspirers” Little training infrastructure to support micro-businesses (too little practical application in college courses these days). Often organise or use own or manufacturer facilities/courses; e.g. academies, reflecting the xyz way of doing things. An underlying theme has crystallised through the first three stages of the SSA; that too many young people have a poor attitude and lack of motivation to fulfil even the most basic of employer requirements. A widespread lack of discipline combined with a feckless approach to work is a common experience for employers. Employer dissatisfaction with such experiences in part explains the rapid move to employ workers from EU accession states. Employees from Eastern Europe are seen as being reliable, conscientious, diligent and attentive, and this encourages employers to overcome any language difficulties that may exist. The need for better skilled, better qualified managers and leaders is recognised, especially by the more progressive and sophisticated enterprises. Promotion through the ranks is a common theme in the sector, but skills development to support changing requirements has been lacking. Even those who may be good managers may not be good leaders. 3.1.7 Engagement Strategy for Stages 4 and 5 Throughout Stages 4 and 5 Automotive Skills will continue to build on the excellent working relationship it has developed over a number of years with employers across Scotland. This will include the Scottish Employers Forum and many ad-hoc meetings, events, roadshows, focus groups and other engagement activities. These regular meetings are continuing and on-going and have so far been very productive. In Stages 4 and 5 Automotive Skills will be engaging and negotiating with employers, providers, stakeholders and other partners to develop the final action plans for the SSA. Such negotiations are likely to take place at a number of levels over a wide range of issues. This will draw on the priorities set in Stage 3 and contained within this report, which will form a starting point for negotiations. 3.1.8 Approach to Communication, Discussion and Evaluation The gap analysis carried out in Stage 3 derived from an internal review of the outputs from Stages 1 and 2 of the SSA and one carried out by consultants heavily involved in Stages 1 and 2 of the project. Scotland Stage 3 – Gap Analysis & Market Testing Page 15 of 71 November 2006 Automotive Skills drew together the strands of these pieces of work through internal reviews and workshops designed to develop a series of possible or proposed solutions grounded in the findings of the first two stages and the gap analysis. The possible or proposed solutions were initially presented to standing employer fora around the UK for consideration and comment. These were used to validate the initial gaps and ideas for resolving these gaps. From the response to these meetings the solutions were refined and at subsequent roadshow debates a series of more defined solutions was put forward for discussion. Whilst Automotive Skills has always played the role of an impartial honest broker during the SSA, some employers expressed a desire that it should lead employers in a specific direction of change, rather than simply asking employers to decide on the validity of and priorities for action. In the very first full roadshow debate employers expressed a clear wish that Automotive Skills should not only present solution option scenarios, but also clearly recommend the solution options that it would recommend to deliver the improvements desired. These views were taken into account and the scenarios re-presented at subsequent roadshow debates to sign post the way ahead. The focus of solution presentation, discussions and evaluation at the roadshows became more aligned to a proposed direction of travel as demanded by our employers. Consequently, Automotive Skills presented a series of solution scenarios ‘recommended’ through the feedback. Employers and other partners attending the roadshows were invited to comment on, agree or disagree with the proposed solutions by degree. The responses to the proposals were captured and synthesised for later use. In parallel with this activity Automotive Skills commissioned an independent research agency to undertake 26 face-to-face depth interviews with employers across the UK to reaffirm the priorities for action. The outputs from this exercise fed into the evaluation of the priorities for action, defined as long, medium or short-term. Automotive Skills then held an internal workshop involving all research, policy, regional and national staff to discuss and debate the outcomes of the employer engagement activities undertaken. This drew together the gap analysis, responses to the roadshow debate proposal scenarios presentations, and the employer depth interviews, to create a set of draft action plans to act as the basis for negotiations in Stages 4 and 5. Scotland Stage 3 – Gap Analysis & Market Testing Page 16 of 71 November 2006 3.2 Supply-Side Evaluation The following sections examine the supply side issues impact on the Sector Skills Agreement. As part of this process is a SWOT analysis for the sector; the Strengths and Weaknesses being internal and the Opportunities and Threats being external. 3.2.1 SWOT Analysis – Scotland Figure 3: SWOT Analysis Scotland SPECIFIC STRENGTHS SPECIFIC WEAKNESSES Sector Characteristics Scotland has a lower proportion (84%) of small businesses (1-10 employees) than the UK sector average (88%); smaller businesses are less likely to train their staff Workforce Sector employment in Scotland is expected to fall at a slightly faster rate than at the UK level Training According to research carried out for Stage 2 Scottish employers in the sector are more likely to provide training for their staff, with 70% of employers having done so compared to the UK average of 54% According to data the greatest level of provision in Scotland is at Level 3; the level believed to be in greatest demand amongst employers Further Education: North Lanarkshire is a major centre of retail automotive sector FE Work Based Learning: Enrolments in Modern Apprenticeships have been increasing steadily in recent years Qualifications and Provision Official inspectorates have found that colleges and training providers in Scotland serving the Retail Automotive sector are performing well; no serious problems have been highlighted Compared to the UK average for the sector there is a relatively low proportion of employment in management and senior official positions and in sales and customer service occupations in Scotland Compared to the UK average, the sector in Scotland has a lower proportion of employees with Level 3 and Level 4 qualifications Scotland has a proportionately high number of employees in the sector with no qualifications The UK Retail Automotive Sector has a much lower proportion of female workers than the all sector average (78% male versus 53% male across all sectors); in Scotland this situation is a little more pronounced (81% of the workforce being male) Training Work Based Learning: Skillseekers enrolments in the sector have decreased by more than 50% since 2001/02 Work Based Learning: the number of females taking part in Modern Apprenticeships in the sector is very low (1.0%), although not as low as for Skillseekers courses (0.2%) Higher Education: very few HE courses took place in Scotland Higher Education: the number of females taking part in HE courses was low Qualifications and Provision According to data, Scotland has the fewest number of retail automotive courses in the UK Scotland Stage 3 – Gap Analysis & Market Testing Page 17 of 71 November 2006 In terms of the levels of qualifications offered, Scotland appears to have significant gaps from Level 4 upwards According to official inspectorates, the main shortcomings identified in publicly funded provision in Scotland tend to be around internal quality assurance SPECIFIC OPPORTUNITIES SPECIFIC THREATS Workforce Marked increases in the expected levels of qualifications required amongst those employed in each occupation are projected, particularly at Level 3; creating increased demand for qualifications and training. Although the demands for all levels of qualifications in the sector in Scotland are projected to be relatively low compared to the sector at UK level Workforce 24% of the Automotive Skills sector workforce in Scotland will need to be replaced during the period 2004-2014, creating the danger of further and more extensive skills gaps. Although this is below the UK average (30%) Training The Scottish Executive have a priority of improving the skills base of Scotland Highland and Islands Enterprise put a distinct emphasis on the need for provision for the over 25s Funding in Scotland is allocated on a market failure or potential growth basis which may make it more difficult for the Retail Automotive Sector to access funds in the future There is a threat that the Retail Automotive Sector is not perceived as a priority by funders and policy makers and that their actions do not meet the sector’s specific requirements Larger employers who operate across the UK have voiced frustration about the different funding and eligibility criteria across the four home countries – there is a danger that they will distance themselves further from public provision 3.2.2 Geographic Context The Scottish policy context is both distinctive and produces the greatest levels of success for young people in the footprint. The skills, training and development issues facing employers and providers in Scotland are very similar to those faced by those groups in other areas of the UK, with only marginal differences in scale or importance. The 43,000 employees in the footprint in Scotland total fewer than in any English region apart from the North East (23,000), although the proportion of the working population is similar to the UK average at about 2%. Where there is a difference however is in the dichotomy between businesses with predominantly urban and those with predominantly rural employee and customer territories. Those employers in more rural areas tend to find it more difficult to hire suitable staff, but retain them for longer, and have a more loyal customer base than those in more urban areas where communities are more transient and fragmented and alternative employment is greater. Scotland Stage 3 – Gap Analysis & Market Testing Page 18 of 71 November 2006 Futureskills Scotland data suggests that rural employers are more likely to have vacancies and hard-to-fill vacancies and over twice as many businesses in rural areas cite geographic location as a reason for lack of applicants for hard-to-fill vacancies compared to those in urban areas. The data also show that technical and generic skills (such as customer-handling and problemsolving) are particularly lacking in applicants for skills shortage vacancies in rural areas. Figure 4: Employment Volumes Employment Volumes South East 85,960 West Midlands 74,177 East of England 62,988 Country/Region South West 58,668 57,672 North West Yorkshire & Humber 53,973 47,646 East Midlands Greater London 43,571 SCOTLAND 36,458 29,860 WALES North East NORTHERN IRELAND 23,044 14,693 Employees in Automotive Skills Footprint 3.2.3 Changes to Provision by Skills Category In the next sections we outline by skills category in table format and a narrative of the requirements for change that forms the basis for the proposed collaborative solutions. These are expressed in the draft Action Plans which follow in section 4. 3.2.3.1 Employability Skills Employability Skills Persons possessing the right attitudes and motivations for work, including willingness to learn, reliability, dependability, thoroughness, aptitude, good timekeeping, appropriate appearance and such like. Desired changes to current provision Improvements to the school curriculum More advice on the content of learning programmes Standardised initial assessments Skills for Work courses Pre-apprenticeships Scotland Stage 3 – Gap Analysis & Market Testing Page 19 of 71 November 2006 Inter-personal skills development Learning programmes to include a range of technical, basic, generic and employability skills Desired changes to provider structure For negotiation to meet the goals for change Demographic groups to be targeted Primarily: 14-16 Age Groups 16-19 Age Groups Targeted industry sub-activities Flexible, appropriate qualifications frameworks Specific skills Qualification Frameworks Work with the SfBN cross sector activities to address needs Levels Volumes/Proportions Workforce of Desired Modes of Delivery For negotiation to meet the goals for change Desired Provider Capacity For negotiation to meet the goals for change Other Information (including examples of good practice) Work with the SfBN and Scottish Executive policies to effect long term change i.e. Determined to Succeed etc. 3.2.3.2 Basic Skills Basic Skills Desired changes to current provision Comprising in the main: • Literacy • Numeracy • Improvements to the school curriculum • Learning programmes to include a range of technical, basic, generic and employability skills Desired changes to provider structure For negotiation to meet the goals for change Demographic groups to be targeted • 14-16 • School Leavers • Apprentices • Targeted industry sub-activities • Specific skills • Qualification Frameworks • Levels • Volumes/Proportions of Workforce Scotland Stage 3 – Gap Analysis & Market Testing New entrants to the sector and existing employees across all sub-activities Page 20 of 71 November 2006 Desired Modes of Delivery For negotiation to meet the goals for change Desired Provider Capacity For negotiation to meet the goals for change Other Information (including examples of good practice) Continue to work with SQA and lds4b. 3.2.3.3 Generic Skills Generic Skills Planning and organizing Problem-solving Team working Customer handling Desired changes to current provision Learning programmes to include a range of technical, basic, generic and employability skills Desired changes to provider structure For negotiation to meet the goals for change Demographic groups to be targeted All employees in the footprint. Targeted industry sub-activities Specific skills Qualification Frameworks Levels Volumes/Proportions Workforce Relevant to all occupations, especially customeroriented roles, in all sub-sectors and activities. of Desired Modes of Delivery For negotiation to meet the goals for change Desired Provider Capacity For negotiation to meet the goals for change Other Information (including examples of good practice) Continue to develop MA Frameworks to address these skills for new entrants to the sector and develop HR toolkits for employers 3.2.3.4 Technical Skills Technical Skills Particular emphasis on keeping pace with changing product technology Desired changes to current provision Learning programmes to include a range of technical, basic, generic and employability skills Desired changes to provider structure For negotiation to meet the goals for change – develop and establish a centre of excellence model Demographic groups to be targeted Targeted industry sub-activities Specific skills Qualification Frameworks Levels Scotland Stage 3 – Gap Analysis & Market Testing Likely to impact all technicians and technical roles across Scotland. Page 21 of 71 November 2006 Volumes/Proportions of Workforce Desired Modes of Delivery For negotiation to meet the goals for change Desired Provider Capacity For negotiation to meet the goals for change Other Information (including examples of good practice) Link to UK wide activities to develop a ‘future’ model for provision in the sector. 3.2.3.5 Management and Leadership Skills Management & Leadership Skills Desired changes to current provision More focus on CPD, building blocks, bitesize learning Step into ARMS Roll out ARMS more widely Desired changes to provider structure Develop the delivery infrastructure and links with employers Demographic groups to be targeted All managers and supervisors Targeted industry sub-activities Specific skills Qualification Frameworks Levels Volumes/Proportions of Workforce Likely to impact all mangers from first-line supervisory level upwards across the entire footprint. There is a need to address the more formal management and informal leadership skills issues. Desired Modes of Delivery For negotiation to meet the goals for change Desired Provider Capacity For negotiation to meet the goals for change Other Information (including examples of good practice) Work with existing providers to establish the delivery infrastructure and promote to employers. 3.2.4 Approach to Supply-Side Consultation Since the Scottish Showcasing Event in August 2006, Automotive Skills has been undertaking regular engagement with stakeholders in Scotland through Project Board meetings, our Quality Improvement Groups, ad-hoc group sessions and bi-lateral meetings. These are continuing and on-going and have so far been very productive. Throughout Stages 4 and 5 Automotive Skills will be engaging and negotiating with employers, providers, stakeholders and other partners to develop the final action plans for the SSA. Such negotiations are likely to take place at a number of levels over a wide range of issues. This will draw on the priorities set in Stage 3 and contained within this report, which will form a starting point for negotiations. Automotive Skills will continue to work with stakeholders and partners to align solutions with the Scottish policy agenda to enable positive benefits and synergistic outcomes to be developed. Scotland Stage 3 – Gap Analysis & Market Testing Page 22 of 71 November 2006 3.2.5 Balance of Evidence – the Learner Input From the very beginning of the SSA process Automotive Skills has recognised the importance of the individual employee at the heart of change in the sector. Without the commitment, diligence and application of the individual learner skills development cannot be embedded in the workplace. Although the development process of the SSA as defined does not specifically incorporate evidence from individual employees, Automotive Skills has carried out research with employees. Specifically, this work has helped to identify roadblocks in the way of personal development. Work/life balance-related issues in particular were identified as a significant restraint on workforce development – often driven by a combination of operational and supply-chain pressures – that impact significantly on an individual’s capacity and capability to develop professionally. As part of the drive to inform and advise employers about the benefits of training and development to their businesses Automotive Skills aims to help remove such obstacles to new learning and up-skilling. The role that trades unions can play in supporting development of the shared skills agenda is widely recognised, although penetration of trade unions and staff association membership in the sector is very low. Wherever practical and appropriate Automotive Skills will work with trades unions to ensure the SSA reflects the collective needs of their members as well as the sector’s workforce as a whole. Automotive Skills will continue to work with all partners to ensure the needs of individuals are reflected in the solutions and action plans to be agreed. Scotland Stage 3 – Gap Analysis & Market Testing Page 23 of 71 November 2006 4 Proposed Collaborative Solutions 4.1 Management &Leadership 4.1.1 First-Line Management Skills First-Line and supervisory management skills are critical to enhancing performance in the retail motor industry, Although work on management capability has to date focussed on higher level skills through the Automotive Retail Management Standards (ARMS) Level 5 qualification, it has been recognised by employers that greater benefits for the sector can be achieved through development of national occupational standards at Level 3. However, for this to be an effective solution for the sector there is also a requirement for a more flexible approach to training delivery, accreditation and funding support to maximise uptake, encourage more managers to progress to higher level qualifications and to leverage benefits for employers, employees and customers. Evidence (demand supply) and Employers have noted that first-line management needs better development. Focus at first-line level offers an opportunity to redress the relatively poor level of management qualification across the sector (Only 14% of managers in sector have Sub-sectors & Occupations Likely to be Affected Applies to all subsectors and specifically to managers in most (but not all) firstline or supervisory positions. (NB Not appropriate for sole proprietor operations) Also important as an element to develop succession planning for these first-line managers Desired Impact of Change, Improvement or Activity Long term change in culture of sector is needed to increase perceived value of management qualification to enhance personal and business performance – to achieve better profitability through more effective processes. In the short term, this can be stimulated through Scotland Stage 3 – Gap Analysis & Market Testing Employers Involved and Actions to be Taken Manufacturer (National Sales Organisations), their retailer networks, large / medium dealer groups, fast-fit operators, independent dealers, bodyshops, trade associations (e.g. SMTA). Employers with existing Level 3 programmes to map & align Stakeholder Involved and Actions to be Taken Scottish Enterprise, Highlands & Islands Enterprise, Scottish Funding Council, SQA, learndirect Scotland Funding support to map existing employer programmes across to ‘Step Timescales Forecast Short / Medium / Long-term Outputs Outcomes Short-term Existing employer training provision for first-line management roles aligned to Step into ARMS – working closely with major employers in Scotland (top 5 dealer and fast fit employers) Focus for activity to stimulate employer awareness of Step into ARMS and encourage uptake of Level 3 qualification. Manufacturers to visibly change existing programmes to profile of ‘Step into ARMS’ to show ‘Quick Win’ Page 24 of 71 / Funding Costings & To be defined through discussion with employers, providers and stakeholders Reviewing Monitoring Arrangements & To be defined through discussion with employers, providers and stakeholders Year 15 manufacturer franchise networks across the UK. November 2006 Evidence (demand supply) and S/NVQ level4 + or equivalent (SCQF Level 8+), and 16% have no qualification at all) Sub-sectors & Occupations Likely to be Affected to progress to more senior levels. Desired Impact of Change, Improvement or Activity work with aspiring new managers to encourage a learning culture and develop best practice activity. Create ‘Learning Champions’ Develop higher quality managers to enable succession planning – and contribute to reduced staff turnover (and associated costs) Broaden the vision of management as a catalyst to address limitations of ‘silo mentality’ Scotland Stage 3 – Gap Analysis & Market Testing Employers Involved and Actions to be Taken management training delivery with ‘Step into ARMS’ (Level 3) with support of awarding bodies & providers. Establish ‘Fast Track’ pilot schemes - key influencer employers to develop case studies to illustrate clear benefits for the individual and business needs of employer. Endorsement and promotion of ‘Step into ARMS’ by Trade Associations to influence member networksAssess role for an HR Toolkit to enhance practical support for Step into ARMS Stakeholder Involved and Actions to be Taken into ARMS’ Funding to promote employer uptake of management and leadership development at Level 3 – both in terms of pilot schemes but also longer term funding initiatives Close collaboration between awarding bodies and providers to facilitate ‘Fast Track’ groups of employees with leading employers to achieve Level 3 qualification. Timescales Forecast Short / Medium / Long-term Outputs Outcomes Funding to support mapping and promotion in place within first year. Year 2 1 independent network accredited (This will need to be sustained through Medium/Long term promotion through trade association and manufacturer networks -as the foundation to underpin longer term sustainability of culture change) Page 25 of 71 / Funding Costings & Reviewing Monitoring Arrangements Use of HR Toolkit to provide practical support for learners on Step into ARMS programmes Case studies illustrating practical benefits of addressing business needs for employers [Targets for number of Step into ARMS qualification achievements to be developed??] Clear link to Skills Passport solution – Level 3 ‘Step into ARMS’ as a ‘selling benefit’ November 2006 & 4.1.2 Higher Level Management Skills Although the issue of raising management capability has been recognised by the sector as fundamental to developing higher level performance - with the launch of industry-specific Automotive Retail Management Standards (ARMS) in 2004, as a Level 5 qualification - it has not been fully embraced by the sector to date. A more practical approach, based on addressing employers’ business needs (which are driven by competence rather than qualification), is required to improve senior management effectiveness. This will need to be achieved through flexible delivery provision, accreditation of ‘bite-size’ training and funding that encourages engagement with learning at a senior level. Evidence (demand supply) and Research has highlighted a relatively poor level of management qualification across the sector (Only 14% of managers in sector have S/NVQ Level 4+ or equivalent (SCQF Level 8+), and 16% have no qualification at all) Employers have identified that lack of succession planning and formal development of staff prior to assuming management roles undermines employer Sub-sectors & Occupations Likely to be Affected Applies to all subsectors, line and senior management positions. ARMS is likely to be more relevant to larger employer organisations (e.g. dealer groups). Management and leadership skills issues for Micro businesses more likely to be addressed through Step into ARMS and practical modular delivery (e.g. HR and Health & Safety) Desired Impact of Change, Improvement or Activity Formal management training, based around ARMS standards will facilitate development of cultural change towards learning organisations. ARMS accepted as the established cross-sector benchmark for managers – and encourage high calibre recruits into management roles. Employers Involved and Actions to be Taken Manufacturer (National Sales Organisations) and their retailer networks, large / medium dealer groups, fast fit operators, independent dealers, bodyshops, trade associations (e.g. SMTA). Create ‘Learning Champions’ to encourage wider participation. Employers with existing management programmes to map & align management training delivery with ARMS –with support of awarding bodies & providers. Develop Establish Scotland Stage 3 – Gap Analysis & Market Testing higher ‘Fast Stakeholder Involved and Actions to be Taken Scottish Enterprise, Highlands & Islands Enterprise, Scottish Funding Council, SQA learndirect Scotland Funding to support mapping of existing employer programmes across to ARMS Funding to promote employer uptake of management development through stakeholder funding initiatives – both in terms of pilot schemes and funding standalone modules, not Timescales Forecast Short / Medium / Long-term Outputs Outcomes Short and Medium term focus for activity to stimulate employer awareness of business benefits to be derived from wider uptake of formal management development. Existing employer management training provision – working closely with major employers in Scotland (top 5 dealer and fast fit employers) and manufacturer franchise networks across the UK. Short term activity around case studies and employer awareness raising Manufacturers to visibly change existing programmes to profile of ARMS to show ‘Quick Win’ Endorsement and promotional Page 26 of 71 / Funding Costings & To be defined through discussion with employers, providers and stakeholders Reviewing Monitoring Arrangements & To be defined through discussion with employers, providers and stakeholders Case studies illustrating practical benefits and success stories from developing management skills in addressing business needs for employers Clear link to Skills Passport solution – recognition of November 2006 Evidence (demand supply) and capability to exploit Strengths and Opportunities, and respond to Threats and Weaknesses identified in SWOT analysis Sub-sectors Occupations Likely to Affected & be Desired Impact of Change, Improvement or Activity quality managers to enable succession planning – and contribute to reduced staff turnover (and associated costs) at all levels in business Employers Involved and Actions to be Taken Track’ pilot schemes – key influencer employers to develop case studies to illustrate clear benefits for the individual and business needs of employer. Recognition of achievement of stand-alone modules to support individual progression Endorsement and promotion of ARMS by Trade Associations to influence member networks Broaden the vision of management as a catalyst to address limitations of ‘silo mentality’ Scotland Stage 3 – Gap Analysis & Market Testing Stakeholder Involved and Actions to be Taken just end qualification. Close collaboration between awarding bodies and providers to facilitate ‘Fast Track’ groups of employees with leading employers to achieve qualification. Timescales Forecast Short / Medium / Long-term Outputs Outcomes support from Trade Associations achieving ARMS modules (partqualification) as a ‘selling benefit’ for individual progression and to help prospective employers identify aspiring managers. / Funding Costings & Reviewing Monitoring Arrangements Funding support for development of provider capacity for ARMS – work with existing management & leadership providers to contextualise delivery to ARMS Page 27 of 71 November 2006 & 4.2 Technical Skills 4.2.1 Raising technical skills capacity and capability The phenomenal pace of change in vehicle technology is putting pressure on employers and employees alike. A high proportion of employers find it difficult to keep the skills of their technical staff up to date - despite being at the core of apprenticeship programmes in the sector for many years. Combined with ongoing developments in IT diagnostic equipment and materials used in vehicle construction mean that there is a fundamental requirement for continuous upskilling of the existing workforce as well as for new entrants. Equally, there is a need for new adult entrants to be attracted into the industry and their skills need to be developed so they can be economically active. Evidence (demand supply) and Qualifications and or courses being offered do not reflect employer and industry needs limiting employer engagement. Limited correlation between national and regional/local recruitment of apprenticeship opportunities result in applicants being lost to the sector. 69% of sector employers in Scotland have identified a lack of proficiency in sector-specific Sub-sectors & Occupations Likely to be Affected Applies to all subsectors and specifically technical occupations that account for about one in four of all positions in the sector. Primarily these include technicians and associated trades. Desired Impact of Change, Improvement or Activity Development of local ‘Employer Friendly Learning Providers’ that provide information, advice and guidance to employer. Greater engagement by micro/small businesses with the training provision at local levels. Employers are better informed about funded and non-funded training solutions and as a result Scotland Stage 3 – Gap Analysis & Market Testing Employers Involved and Actions to be Taken Manufacturer (National Sales Organisations) and their retailer networks, large / medium dealer groups, fast fit operators, independent dealers, bodyshops, trade associations (e.g. SMTA). Micro, small and medium size businesses that specialise in the servicing, repair and fault diagnosis of vehicles. Trade Association (SMTA) Stakeholder Involved and Actions to be Taken Scottish Enterprise, Highlands & Islands Enterprise, Scottish Funding Council, SQA, Learndirect Scotland, Careers Scotland, JC+,SFEU FE Colleges and private providers. Develop “Employer Friendly Learning Providers with the capacity to deliver a range of training, information and services designed to help employers Timescales Forecast Short / Medium / Long-term Outputs Outcomes Short to Medium Term Pilot ‘Employer Friendly Learning Providers’ in partnership with local government agencies- Potential outcomes include: Medium to long term - Establish protocol for national apprenticeship applicants to receive information on local employment opportunities Long Term Establish national coverage of Page 28 of 71 / Increased number of micro, small and medium size businesses engaging in Government funded initiatives. Funding Costings & To be defined through discussion with employers, providers and stakeholders Reviewing Monitoring Arrangements & To be defined through discussion with employers, providers and stakeholders Skill and qualification levels within the Retail Motor Industry increase. Training at a local level reflects industry need and funding is channelled to those needs November 2006 Evidence (demand supply) technical among workforces. and skills their Concerns over the technical capability of staff working in the sector are also reflected in the National Consumer Council’s threatened ‘Supercomplaint’ Employers not actively supporting the local training provision Sub-sectors Occupations Likely to Affected & be Desired Impact of Change, Improvement or Activity participation in apprenticeships, and other training increases. Local training provision delivery reflects employer needs across technical and non technical areas Local training adheres to Automotive Skills Quality Improvement Strategy (see 5.2) Employers Involved and Actions to be Taken endorsement Development of ‘Employer Friendly Learning Providers’ with the capability to delivery the full range of Automotive Skills qualifications, short courses and frameworks Development of ‘Employer Friendly Learning Providers’ with the capability to provide IAG to employers. Reduce employer confusion surrounding training and funding resulting in improved engagement. Enable employers to select better informed suitable young people for apprenticeships by providing links between national and local recruitment Scotland Stage 3 – Gap Analysis & Market Testing Establish links between national employer apprenticeship programmes that have surplus applicants and local provision with surplus vacancies/training Stakeholder Involved and Actions to be Taken build capacity and satisfy business needs. Work with key partners at both national and local levels to maximise recruitment and promotional opportunities for Apprenticeships. Develop training delivery to meet industry needs encourage learning providers to commit teaching staff CPD and investment in capital equipment Timescales Forecast Short / Medium / Long-term Outputs Outcomes ‘Employer Friendly Learning Providers’ supporting business development and employee professionalism. Long Term Establish methodology to support/fund local training provision to meet employer needs (via collaborative working). Skills level of training delivery staff increases as a direct result of Train the Trainer programmes keeping pace with employer needs. / Funding Costings & Reviewing Monitoring Arrangements Using bite-size technical training employers are provided with opportunity to meet emerging industry “Codes of Practice”. Integrate all above initiatives with Skills Passport solution Review available qualifications and full time courses as to their suitability to meet employer and industry needs Funding bodies to Medium Term Establishment Page 29 of 71 of November 2006 & Evidence (demand supply) and Sub-sectors Occupations Likely to Affected & be Desired Impact of Change, Improvement or Activity More flexible qualifications made available Employers Involved and Actions to be Taken opportunities. Employers run CPD programmes for employees – linked to roll out of Skills Passport Work with UK Skills and SkillAuto to raise profile and build infrastructure for skills competitions in the run-up to London 2011. Scotland Stage 3 – Gap Analysis & Market Testing Stakeholder Involved and Actions to be Taken fund short courses Timescales Forecast Short / Medium / Long-term Outputs Outcomes Centre(s) Technical Excellence Scotland Collaborate with sector employers on development of Centre(s) of Technical Excellence for Scotland / Funding Costings & Reviewing Monitoring Arrangements of for Establishment Centre(s) Technical Excellence Scotland of of for Infrastructure for automotive competitions in place; profile raised of technical skills in the motor industry. Page 30 of 71 November 2006 & 4.3 Generic Skills 4.3.1 Generic Skills In common with possibly all sectors of the economy, there is an ever-increasing demand for generic skills. These are demanded from almost all employers across the footprint’s sub-sectors because they are critical at all occupational levels in ensuring business success – particularly customer service skills. Such generic skills are often seen as cutting across all job roles and as a pre-requisite to underpin more specific skills sets noted elsewhere in this report. Evidence (demand supply) and Employers have highlighted that generic skills (such as customer handling, team working, communications and problemsolving) are in short supply amongst both existing employees and new recruits. However, the employer focus is on addressing employees’ practical expertise and specific business needs not on qualifications. Sub-sectors & Occupations Likely to be Affected Applies to all subsectors and all occupations across the sector, but has particular significance for customer-facing roles. Desired Impact of Change, Improvement or Activity Improved access to flexible and modular bite-size provision to delivery solutions for practical business needs. Provide a mechanism for employers and individuals to be able to access training through innovative delivery mechanisms Clear advice for employers on availability and access to training and funding. – especially SME & Micro businesses – to address current confusion experienced by Scotland Stage 3 – Gap Analysis & Market Testing Employers Involved and Actions to be Taken Dealer groups, independent dealers, roadside recovery operators, fast fit outlets, bodyshops, and trade associations (e.g. SMTA) – focus on Micro and SME business employers. Establish pilot schemes with SME employers (also through collaboration with “soft franchises”, such as Bosch Car Care Centres) to raise profile of bite-size modular solutions. Develop case studies to widen participation Stakeholder Involved and Actions to be Taken Scottish Enterprise, Highlands & Islands Enterprise, Scottish Funding Council, Learndirect Scotland, Scottish Executive. Timescales Forecast Short / Medium / Long-term Outputs Outcomes Short term Case study examples of SME & Micro employers gaining business benefit from generic skills enhancement. Work with Learndirect Scotland to enhance employer access to generic skills training – information, marketing and accessible delivery for SME/Micro employers. (Inc. measures of training quality that enable employers to make informed purchase Develop database of provision for the automotive sector Page 31 of 71 / Funding Costings & To be defined through discussion with employers, providers and stakeholders Reviewing Monitoring Arrangements & To be defined through discussion with employers, providers and stakeholders Enhanced awareness of and accessibility to generic skills training provision – inc. solutions for rural areas — increase employers’ awareness of local learning centres Training for SME employers to improve business planning – training budgets Reduced employer confusion about November 2006 Evidence (demand supply) and Sub-sectors Occupations Likely to Affected & be Desired Impact of Change, Improvement or Activity employers Employers Involved and Actions to be Taken – inc. Business Improvement Techniques (BIT) and team working Develop a toolkit with employers to promote use of Training Plan and Budget within context of improved business planning. Scotland Stage 3 – Gap Analysis & Market Testing Stakeholder Involved and Actions to be Taken decisions) Timescales Forecast Short / Medium / Long-term Outputs Outcomes provision funding Funding support for modular courses which do not directly lead to qualifications – address employer need for business solution not for qualifications. Funding to develop Training Plan toolkit to develop SME capability for business planning for Training Plans and budgeting / Funding Costings & Reviewing Monitoring Arrangements and Mechanism to support employers in making effective decisions about purchasing training (e.g. provider quality and training outputs) Medium Page 32 of 71 Integrate generic skills training (inc. bite-size modular training that does not attract formal qualifications) into the Skills Passport solution. November 2006 & 4.3.2 Generic Skills – Customer Service Development of stronger customer service skills, across all occupations and sub-sectors, are fundamental to the future development of the sector – and there I san opportunity for this to be supported through the effective use of a Customer Service Toolkit Evidence (demand supply) and Sub-sectors & Occupations Likely to be Affected All sub-sectors and employer groups – large and small Desired Impact of Change, Improvement or Activity Greater recognition for customer service throughout the sector Skills Passport accepted by majority of employers across the sector – entry point to CPD and ‘learning organisations’ through generic skills Employers Involved and Actions to be Taken Employers to use Customer Service Toolkit as best practice for all customer-facing staff Commitment to standards development to contextualise existing Customer Service units to ensure fit for purpose in sector Employers to implement incentive bonus schemes based on customer service measures (not sales volumes) Employers to recognise Skills Passport as meeting a minimum requirement of employment (and Scotland Stage 3 – Gap Analysis & Market Testing Stakeholder Involved and Actions to be Taken Funding for development and accreditation of the Customer Service Toolkit – especially where delivered in bite-size modules (which may not currently be recognised by formal qualifications) Support for the accreditation of customer service standards/qualificati ons Timescales Forecast Short / Medium / Long-term Outputs Outcomes Short to Medium term (up to 2 years) Customer service standards that are accepted by employers as being contextualised and fully fit for purpose Year 1 New Customer Service standards for sector Target number of employers using Toolkit application – e.g. 2 independent repairer networks Awarding body ‘buyin’ to Skills Passport Review / Funding Costings & Reviewing & Monitoring Arrangements Better customer service levels, as seen in reduced complaints to Trading Standards from the sector and NCC removal of threat of the ‘Supercomplaint’ Industry recognises the requirement for a Skills Passport experience Page 33 of 71 November 2006 Evidence (demand supply) and Sub-sectors Occupations Likely to Affected & be Desired Impact of Change, Improvement or Activity Employers Involved and Actions to be Taken an accepted measure for customer handling skills) Work with larger dealer groups and “soft franchises” that have experience of emerging Train to Gain solutions in England to identify any relevant learning for Scotland Scotland Stage 3 – Gap Analysis & Market Testing Stakeholder Involved and Actions to be Taken of Train to Gain in England and identify any learning points that could add value for Scotland Timescales Forecast Short / Medium / Long-term Outputs Outcomes Page 34 of 71 / Funding Costings & Reviewing & Monitoring Arrangements November 2006 4.3.3 Legislation Trading Standards Project in Highlands & Islands Enterprise has identified shortfalls in employer knowledge of consumer and employment law which need to be addressed in parallel with customer service skills Evidence (demand supply) and Too many employers in the sector are unaware of legislative requirements – both consumer and employment law. (Issue highlighted by work with Trading Standards Project in Highlands & Islands Enterprise) Sub-sectors & Occupations Likely to be Affected Applies to all subsectors – technical, sales and all customerfacing occupations. An issue particularly for Micro businesses, but also for customer facing and first-line management staff in larger (and SME) employers Desired Impact of Change, Improvement or Activity Increase employer and employees knowledge of legal responsibilities with regard to consumer and employment law Enhanced customer complaint handling procedures, reduced number of complaints to Trading Standards, improve Health & Safety records, and improve staff retention. Employers Involved and Actions to be Taken Dealer groups, independent dealers, fast fit outlets, bodyshops, and trade associations (e.g. SMTA) – focus on Micro and SME business employers. Establish working groups of stakeholders and employers to create mechanism to disseminate information about legal responsibilities. Identify case studies where training on legal obligations has brought business benefits (e.g. reduced customer complaints through better procedures) Scotland Stage 3 – Gap Analysis & Market Testing Stakeholder Involved and Actions to be Taken Scottish Enterprise, Highlands & Islands Enterprise, Scottish Funding Council, Learndirect Scotland, Timescales Forecast Short / Medium / Long-term Outputs Outcomes Short Term Programme of employer workshops held jointly with stakeholder partners to provide employers with enhanced knowledge of legal requirements. Explore funding opportunities and work collaboratively with Trading Standards and other bodies to develop a programme that enhances employers’ knowledge of current legislation. Reduction number consumer complaints Improved customer satisfaction measures businesses sector / Funding Costings & To be defined through discussion with employers, providers and stakeholders Reviewing Monitoring Arrangements To be defined through discussion with employers, providers and stakeholders in of for in Legislation update support facility developed Page 35 of 71 & November 2006 4.3.4 Basic Skills The standard of literacy and numeracy found by employers in too many school leavers is described by many as inadequate for even the most basic requirements of business. This is a major drag on the productivity of businesses and requires remedial action by employers to raise skills to an acceptable standard. Equally issues surrounding literacy and numeracy have been identified for existing staff progressing to supervisory or first-line management. Although fundamental long term solutions are needed through the school education system, there is potential for training solutions to support those individuals already working in the sector Evidence (demand supply) and Employers have highlighted issues around basic skills affecting new recruits and existing staff around literacy and numeracy. Sub-sectors & Occupations Likely to be Affected Applies to all subsectors and occupations – particular focus on school leavers and apprentices. Desired Impact of Change, Improvement or Activity Improvements to school curriculum at all levels Learning programmes to include a range of technical, basic, generic skills These underpin the effectiveness of recruitment, staff development and ultimately the effectiveness in their job roles. Scotland Stage 3 – Gap Analysis & Market Testing Employers Involved and Actions to be Taken Dealer groups, roadside recovery operators, fast fit outlets, independent dealers, bodyshops, and key trade associations (e.g. SMTA). Stakeholder Involved and Actions to be Taken Scottish Executive, Scottish Enterprise, Highlands & Islands Enterprise, Job Centre Plus, Careers Scotland, learndirect Scotland, SQA, LEAs Closer collaboration between employers and providers to evaluate scope of issue and remedial action Stakeholders influencing the school system to develop a collaborative approach to address employer needs Timescales Forecast Short / Medium / Long-term Outputs Outcomes Medium to Long Develop approach that integrates with SfBN solution for this cross-cutting theme Page 36 of 71 / Funding Costings & To be defined through discussion with employers, providers and stakeholders Reviewing Monitoring Arrangements & To be defined through discussion with employers, providers and stakeholders November 2006 4.3.5 Core Skills As noted in Section 2, despite technical apprenticeship programmes being fundamental to the sector for many years, the sector still suffers an above average rate of customer complaints, as typified by Trading Standards reports and the recent National Consumer Council ‘Supercomplaint’. Employers have noted that trainees appear to be lacking in core skills areas, which can undermine the effectiveness of learning through apprenticeship programmes. Evidence (demand supply) and Employers have highlighted issues around basic skills affecting new recruits and existing staff around literacy and numeracy.particularly with regard to school leavers and apprentices Sub-sectors & Occupations Likely to be Affected Applies to all subsectors and occupations – but has particular significance for customer facing roles Desired Impact of Change, Improvement or Activity Better sector image Less consumer complaints More competent and articulate workforce Employers Involved and Actions to be Taken Dealer groups, independent dealers, roadside recovery operators, fast fit outlets, bodyshops, and trade associations (e.g. SMTA) – focus on Micro and SME business employers. Recognise the need for candidates to have at least a basic proficiency in the core skills – develop an initial assessment tool Stakeholder Involved and Actions to be Taken Scottish Executive, Scottish Enterprise, Highlands & Islands Enterprise, Job Centre Plus, Careers Scotland, SQA. Timescales Forecast Short / Medium / Long-term Outputs Outcomes Medium Term Customer satisfaction improves (CSI scores rise ad number of Trading Standards complaints reduced) Work with SQA and the LEAs on curriculum development to ensure good levels of core skills ability on leaving school Short-Medium Term Work with Scottish Executive Policies to ensure solutions address core skills issues 3-5 years Influence the school curriculum development Link to the SFBN cross sector activity in Scotland Ensure full support in achievement of core skills and greater understanding through supplier consultation Scotland Stage 3 – Gap Analysis & Market Testing Page 37 of 71 / Funding Costings & To be defined through discussion with employers, providers and stakeholders Reviewing Monitoring Arrangements To be defined through discussion with employers, providers and stakeholders NCC threat of ‘Supercomplaint’ is permanently withdrawn Increase profitability & in Yong people entering employment with good levels of core skills and better prepared for work. November 2006 4.4 Balanced Workforce 4.4.1 Sector Attractiveness – Bringing a wider range of people into the sector The sector continues to suffer from an (outdated) poor image, which has a detrimental effect on recruitment at all levels from outside the sector. There are many opportunities for the sector itself to exert a strong positive influence to change these perceptions for the better, although much relies upon collaborative action among employers. Development of the Sector Qualification Strategy, together with Career Pathways and updated occupational profiles, will also play a significant part in addressing this fundamental challenge – particularly in changing perceptions of key influencer groups (including teachers, parents and career advisors) Evidence (demand supply) and Too many employers in the sector are facing skills gaps and shortages – at all levels and among different age groups (not only school leavers, but also graduates and career changers) Some employers have already sought to secure labour from EU accession states – particularly an issue for skilled trades (bodyshops, repair & maintenance) Sub-sectors & Occupations Likely to be Affected Applied to all subsectors and across all roles, but employers have specifically highlighted technical occupations (that account for about one in four of all positions in the sector). Primarily these include technicians and associated trades. Desired Impact of Change, Improvement or Activity Retail motor industry becomes no longer seen as the last port of call for individual school leavers who have not achieved through the conventional academic system. Employers to be educated and assisted in promoting the right image of the sector. A collaborative approach in promotion of the sector is desirable. Culture Scotland Stage 3 – Gap Analysis & Market Testing change Employers Involved and Actions to be Taken Manufacturer (National Sales Organisations) and their retailer networks, large / medium dealer groups, roadside recovery operators, fast fit outlets, independent dealers, bodyshops, and trade associations (e.g. SMTA). Work with employers to build on existing Automotive Skills careers resources and enhance context for Stakeholder Involved and Actions to be Taken Scottish Executive, Scottish Enterprise, Highlands & Islands Enterprise, Job Centre Plus, Careers Scotland, Learndirect Scotland, SQA, STUC, LEAs Timescales Forecast Short / Medium / Long-term Outputs Outcomes Short to Medium term activity Ongoing update and enhancement of careers material – based on robust research and user feedback. Work with Careers Scotland, Learndirect Scotland and Job Centre Plus to ensure fully updated IAG material is disseminated (inc. web and helpline mechanisms), as well as CPD for Page 38 of 71 / Funding Costings & To be defined through discussion with employers, providers and stakeholders Reviewing Monitoring Arrangements & To be defined through discussion with employers, providers and stakeholders Educational programme and toolkit for employers to help them understand how to promote careers in the industry and improve their own recruitment – facilitating outreach work. November 2006 Evidence (demand supply) and Sub-sectors Occupations Likely to Affected & be Desired Impact of Change, Improvement or Activity with key influencers of career choice (i.e. careers advisers, teachers, parents and peers) that sector has a more positive and attractive profile. Shift in culture in the sector to focus on careers in the sector, not just jobs. Employers Involved and Actions to be Taken Scotland. Work with employers to continue to raise employer awareness of PWL Develop database industry ambassadors a of Develop educational programme and toolkit for employers to help them understand how to promote careers in the industry and improve their own recruitment – facilitating outreach work. Pledge by major employers and stakeholders (e.g. trade associations, manufacturers and dealer groups) to link to and support Automotive Skills’ industry career promotion. Employer support to set up a ‘clearing house’ to Scotland Stage 3 – Gap Analysis & Market Testing Stakeholder Involved and Actions to be Taken their advisers Timescales Forecast Short / Medium / Long-term Outputs Outcomes Medium/ Long Work with Scottish Enterprise and SfBN on promoting Workplace Learning (inc. web-based approach) Facilitate collaborative project between employer(s) and JC+ & Reviewing Monitoring Arrangements Mechanism established for ongoing briefing and CPD for adviser staff with job Centre Plus, Learndirect Scotland and Careers Scotland. Continue to work with Scottish Executive on the Re-engineering Skillseekers Steering Group Work with the DTS team to develop school industry links/initiatives / Funding Costings Industry ambassador initiative developed Establish ongoing working partnerships between Job Centre Plus and larger employers (e.g. dealer groups) Medium / Long Research into the impact of IAG on influencers (short term) – measure against baseline of activity Page 39 of 71 Coherent and collaborative promotion of the sector led by Automotive Skills with the support of the major employers and industry stakeholders. Re-visit Sector and the Attitude Image November 2006 & Evidence (demand supply) and Sub-sectors Occupations Likely to Affected & be Desired Impact of Change, Improvement or Activity Employers Involved and Actions to be Taken ensure applicants rejected by popular programmes are kept in the system – and can be rerouted to less popular programmes. Stakeholder Involved and Actions to be Taken Carry out additional sector attractiveness research Timescales Forecast Short / Medium / Long-term Outputs Outcomes Facilitate collaborative project between employer(s) and JC+ Employer commitment to addressing language barriers for migrant workers (apply lessons learnt from Health & Safety for employers in the Construction industry Scotland Stage 3 – Gap Analysis & Market Testing Work with the SFBN to develop support mechanism for employers and their migrant workers Page 40 of 71 / Funding Costings & Reviewing Monitoring Arrangements research to identify whether there has been any progress in addressing the issue; identify most appropriate media and target audience for our activity. Clearing house ensures talented potential apprentices are made aware of less popular apprentice programmes and not lost to another sector. Language provision established to speakers of foreign languages. November 2006 & 4.4.2 Career Pathways to be more clearly identified and promoted With the sector being characterised by a large proportion of SME and micro employers, often with a range of often overlapping sub-activities, there is currently a lack of clarity around potential career pathways for new recruits to the sector and also around potential development routes for the existing workforce. To help people understand what opportunities exist within the industry and so they can identify what qualifications they should be doing in order to develop their skills, knowledge and occupational competence and manage their careers, a map showing career pathways needs to be developed. Guidance needs to be produced on how the different qualifications and programmes compliment each other and encourage progression. Evidence (demand supply) and Employers have identified that there are no clear career pathways for potential entrants to the sector that can be easily communicated outside the sector – a function of the diversity of sector activities, as well as the small size of many employers (87% less than 10 employees) and flat organisation structures Sub-sectors & Occupations Likely to be Affected All sub-sectors and occupations Desired Impact of Change, Improvement or Activity Improve attractiveness of sector for new recruits, and the range and quality of information available – whether for school leavers or career change entrants. Enhance employers’ retention of staff in the sector – plus support work of employers to manage staff turnover at sustainable levels Provide accurate information on careers (not just jobs) – occupational Scotland Stage 3 – Gap Analysis & Market Testing Employers Involved and Actions to be Taken Manufacturer (National Sales Organisations) and their retailer networks, large / medium dealer groups, roadside recovery operators, fast fit outlets, independent dealers, bodyshops, and trade associations (e.g. SMTA). Establish working group to build on the success of PWL to identify case study, or example, Career Pathways that can be used as basis for promotional activity Stakeholder Involved and Actions to be Taken Scottish Enterprise, Highlands & Islands Enterprise, Job Centre Plus, Careers Scotland, Learndirect Scotland, SQA, Identify collaboration opportunities with key partners to build on Work Experience Toolkit and PWL experience to promote Career Pathways, and also for development of a ‘training plan’ toolkit Work with stakeholders and Scottish employers Timescales Forecast Short / Medium / Long-term Outputs Outcomes Short Sector Qualification Strategy to consolidate and clarify potential career opportunities and progression pathways / Funding Costings & To be defined through discussion with employers, providers and stakeholders Reviewing Monitoring Arrangements To be defined through discussion with employers, providers and stakeholders Integrate SQS with Skills Passport solution Medium Short / Medium Page 41 of 71 & Career Pathway case studies to be created through work with employers as basis for collaborative marketing by a cross-section of employers for the benefit of the sector as a whole. November 2006 Evidence (demand supply) and Sub-sectors Occupations Likely to Affected & be Desired Impact of Change, Improvement or Activity profiles Employers Involved and Actions to be Taken Closely involve Scottish employers in working groups for development of Sector Qualification Strategy to ensure relevance to Scottish employers Develop a ‘Training and Retention Plan toolkit’ that can enable employers to have a more effective approach to becoming learning organisations Stakeholder Involved and Actions to be Taken to develop a robust Sector Qualification Strategy that is appropriate for Scotland. Timescales Forecast Short / Medium / Long-term Outputs Outcomes Develop occupational profiles as part of the SQS, demonstrating clearly job opportunities and career progression; profile competencies as well as qualifications. Short/Medium Employers to commit to roll out of Skills Passport to underpin CPD Scotland Stage 3 – Gap Analysis & Market Testing Page 42 of 71 / Funding Costings & Reviewing Monitoring Arrangements Occupational profiles inform career guidance (based on competency profiling) and also provide a basis for contracting for revenuegenerating activity – writing of careers materials. A toolkit to provide support for employers to develop effective training plans and budgets, and improve retention? in the context of enhanced business planning November 2006 & 4.4.3 Achieving a Balanced Workforce The sector needs to address not only an existing gender imbalance, but also issues around ethnicity, migrant workers and age profiles in order to achieve a more balanced workforce that will contribute effectively to raising productivity for employers in through the medium to long term. Evidence (demand supply) and Research has highlighted that there is a significant gender imbalance across the sector – only one fifth of employees are female. Feedback from employers and staff indicate issues around sector image and attractiveness, but there are also work place culture and attitudinal issues that can discourage female recruitment and retention. Sub-sectors & Occupations Likely to be Affected Applies to all subsectors and occupations. Desired Impact of Change, Improvement or Activity Increase participation of women across all roles in the sector workforce to enable a more representative profile of working population - and also help to address skills gaps and shortages Long term culture change towards more positive attitudes around opportunities for female entrants to the sector Scotland Stage 3 – Gap Analysis & Market Testing Employers Involved and Actions to be Taken Manufacturer (National Sales Organisations) and their retailer networks, large / medium dealer groups, bodyshops, independent dealers, vehicle rental & leasing operators, and trade associations (e.g. SMTA). Stakeholder Involved and Actions to be Taken SSDA , Scottish Executive, Scottish Enterprise, Highlands & Islands Enterprise, Careers Scotland & job Centre Plus Collaboration with employers to identify joint activities within the SSDA ‘Women into Work’ initiative Develop IAG and careers adviser information to raise profile and image of sector with potential female recruits Work with employers to identify ‘Champions’ and case studies to highlight success stories of female employees and managers Work with JobCentre Plus to encourage broader recruitment into the sector and develop more innovative solutions to skills Timescales Forecast Short / Medium / Long-term Outputs Outcomes Medium to Long term Collaboration with employers to identify joint activities within the SSDA ‘Women into Work’ initiative Page 43 of 71 / Enhanced IAG with balanced message for potential female recruits – using high profile case studies Funding Costings & To be defined through discussion with employers, providers and stakeholders Reviewing Monitoring Arrangements & To be defined through discussion with employers, providers and stakeholders Raise profile and attractiveness of sector for female entrants. More positive cultural environment for female staff reflected in Sector Attitude and Image surveys. Link to the ‘Step into ARMS’ solution – possibly for female returners to work Link to Skills Passport solution – particularly for migrant workers November 2006 Evidence (demand supply) and Sub-sectors Occupations Likely to Affected & be Desired Impact of Change, Improvement or Activity Employers Involved and Actions to be Taken Employers to adopt a more flexible approach to recruitment practices, through work with stakeholders such as JobCentre Plus to attract more diverse workforce Stakeholder Involved and Actions to be Taken shortages Timescales Forecast Short / Medium / Long-term Outputs Outcomes Support work on mapping migrant worker qualifications to UK qualifications, and integrate into the Skills Passport solution / Funding Costings & Reviewing Monitoring Arrangements Funding for older trainees (inc. apprenticeships) could support improvement in retention and completion rates over medium term (2 years) Funding for training of older workers 25+ to encourage and support career changers & returners Scotland Stage 3 – Gap Analysis & Market Testing Page 44 of 71 November 2006 & 4.4.4 High Calibre and Extra-Sector Recruitment The sector has not historically displayed a strong track record in recruiting graduates or high calibre individuals from other sectors, which is partly reflected in the management skills issues identified in Section 1 above. However, this represents an opportunity that employers in the sector should be encouraged to exploit in the short to medium term, but requires collaborative support from both employers and key stakeholders in order to leverage this more effectively. Evidence (demand supply) and Research has highlighted a relatively poor level of management qualification across the sector (Only 14% of managers in sector have S/NVQ level 4+ or equivalent (SCQF Level 8+), and 16% have no qualification at all) This suggests underrepresentation of graduates across the sector – but historically employers have shown only limited interest in recruiting graduates as existing industry experience is more Sub-sectors & Occupations Likely to be Affected Applies to all subsectors, and potentially all occupations. Desired Impact of Change, Improvement or Activity Increased number of graduates employed across the sector – with increased percentage of managers with S/NVQ level 4+ or equivalent (SCQF Level 8+), Change culture of sector to place greater value on potential contribution of graduates and those with experience outside the motor industry (for example high street retail) – widen potential sourcing of recruits for all roles (and in particular first-line management) Recognition graduates Scotland Stage 3 – Gap Analysis & Market Testing by and Employers Involved and Actions to be Taken Manufacturer (National Sales Organisations) and their retailer networks, large / medium dealer groups, fast fit operators, independent dealers, bodyshops, trade associations (e.g. SMTA). Identify potential opportunities for graduates. Promote the career routes available through case studies Employers to implement good HR practices (possible use of HR Toolkit) and graduate induction work more effective recruitment & Stakeholder Involved and Actions to be Taken Scottish Enterprise, Highlands & Islands Enterprise, Scottish Funding Council, SQA, Jobcentre Plus, Careers Scotland, learndirect Scotland, Work with Scottish Funding Council to collaborate with key FE/HE Institutions to develop provision. Identify any potential lessons that could be learned from developments elsewhere Timescales Forecast Short / Medium / Long-term Outputs Outcomes Medium to Long term work with employers and stakeholders to investigate scope for collaboration Increased recruitment of graduates and those from other sectors into the automotive sector across all subactivities and occupations – both on leaving HE and as career changers. Short-term – Year 1 – Undergraduate placement programme to be developed with commitment from 5 manufacturer (NSO) and large dealer groups Work with careers advisors in the FE/HE sector to raise profile of sector and potential career Page 45 of 71 / Funding Costings & To be defined through discussion with employers, providers and stakeholders Reviewing Monitoring Arrangements & To be defined through discussion with employers, providers and stakeholders Case studies of graduate success and career change stories to promote opportunity – both for individual and for business benefit Re-visit Sector Attitude and Image research, alongside graduate recruitment research to identify changes in attitude November 2006 Evidence (demand supply) and highly valued. It has also been noted that experienced professionals outside the industry can bring much-needed managerial and other skills to the sector. Sub-sectors Occupations Likely to Affected & be Desired Impact of Change, Improvement or Activity those outside the sector of management and executive career paths available in our sector. Scotland Stage 3 – Gap Analysis & Market Testing Employers Involved and Actions to be Taken retention of graduates and from without the sector Employers to work collaboratively with HE institutions Undergraduate placement scheme to be developed with AM Top 30 dealer groups and NSOs Stakeholder Involved and Actions to be Taken opportunities Timescales Forecast Short / Medium / Long-term Outputs Outcomes Identify FE/HE careers information sources and embed quality IAG Facilitate initiative between FE/ HE institutions to work with employers in sector – e.g. student placements / Funding Costings & Reviewing Monitoring Arrangements and effectiveness of graduate recruitment. Establish 5 Undergraduate placement programmes with manufacturer (NSO) and large dealer group commitment Identify means of attracting those outside the sector i.e. through job portals, partnership. Page 46 of 71 November 2006 & 4.4.5 Employability Research has highlighted employers’ concerns about the employability and life skills of new recruits, particularly apprentices, and they have clearly expressed the need for a higher proportion of young people to possess the right attitude and willingness to learn. Although the issue of employability needs to be addressed through the school system, there is a role for employers to play in practical support for schools in encouraging vocational learning and encourage raising levels of employability. Evidence (demand supply) and Employers have highlighted issues around life skills affecting new recruits – attitude, consistency, motivation, reliability and willingness to learn. These underpin the effectiveness of recruitment – and many employers now focus on the individual’s attitude (rather than experience or qualifications) as the latter can be taught. Sub-sectors & Occupations Likely to be Affected All sub-sectors and occupations – but especially occupations that are conventional entry points for school leavers Desired Impact of Change, Improvement or Activity Improve the life skills of new recruits to the sector, such that employers can focus on developing the work-based vocational skills of individuals rather than having to supplement life skills that have been inadequately delivered by fulltime 14-19 education system Address employer misconceptions of SNVQ – raise perceived value of vocational qualifications for employment with employers (and encourage more Scotland Stage 3 – Gap Analysis & Market Testing Employers Involved and Actions to be Taken Dealer groups, roadside recovery operators, fast fit outlets, independent dealers, bodyshops, and key trade associations (e.g. SMTA). Building on the Work Experience Toolkit work with employers to develop a toolkit for schools to make practical linkage with school curriculum Facilitate collaborative project between employer(s) and JC+ Stakeholder Involved and Actions to be Taken Scottish Executive, Scottish Enterprise, Highlands & Islands Enterprise, Job Centre Plus, Careers Scotland, SQA, LEAs Timescales Forecast Short / Medium / Long-term Outputs Outcomes Short term Review of Young Apprenticeship and Specialised Diploma initiatives in England and identify if there are any opportunities for enhanced vocational learning for the sector in Scotland (e.g. formal preapprenticeships) Building on the Work Experience Toolkit facilitate collaborative project between employers in the sector and schools to enhance 14-19 pre-employment work experience for young learners Continued development of Modern Apprenticeships for sector context – work with Page 47 of 71 / Funding Costings & To be defined through discussion with employers, providers and stakeholders Reviewing Monitoring Arrangements & To be defined through discussion with employers, providers and stakeholders Building on the Work Experience Toolkit for employers and schools to facilitate collaborative work between employers and the 14-19 education sector (schools) – linking work experience and November 2006 Evidence (demand supply) and Sub-sectors Occupations Likely to Affected & be Desired Impact of Change, Improvement or Activity positive perceptions from parents, peers and teachers) Employers Involved and Actions to be Taken Identify opportunities with supportive employers for preapprenticeships – inc. identify potential learning from Young Apprenticeships and Specialised Diplomas in England, and examine feasibility for developments in Scotland Research employer attitudes to S/NVQs – identify what employers really want (Link to ‘Clearing House’ solution on section 4.1 above) Scotland Stage 3 – Gap Analysis & Market Testing Stakeholder Involved and Actions to be Taken employers to research what they value from vocational qualifications Timescales Forecast Short / Medium / Long-term Outputs Outcomes / Funding Costings & Reviewing Monitoring Arrangements curriculum Long Term Identify opportunities for formal 14-19 preapprenticeship schemes in Scotland – inc. identify potential learning from Young Apprenticeships and Specialised Diplomas in England, and examine feasibility for any such developments in Scotland Page 48 of 71 Research report on employer attitudes to vocational qualifications and potential opportunities for future development November 2006 & 4.5 Strategic Over-arching Solutions 4.5.1 Developing Quality Education and Training Provision (1) - Quality Improvement Strategy Solution to address widely expressed employer concerns around whether quality of existing training provision is consistently ‘fit for purpose’ to address the employers’ business needs – with closer collaboration between employers and providers to deliver more effective training and skills development at all levels across the UK. Evidence (demand supply) and Employers have expressed concerns around flexibility, consistency and quality of training delivered across the complete range of provision - FE colleges, HE institutions, private providers and manufacturer provision. Sub-sectors & Occupations Likely to be Affected Applies to all subsectors and occupations but specifically technical occupations that account for about one in four of all positions in the sector. Desired Impact of Change, Improvement or Activity Develop world class learning provision - improve the overall quality and effectiveness of education and training delivered to the sector by driving up standards, setting benchmarks, developing guidance and enabling the sharing of best practice across the provider network. Deliver eight strands of the Quality Improvement Strategy (QIS): Strand 1 - setting Scotland Stage 3 – Gap Analysis & Market Testing Employers Involved and Actions to be Taken Dealer groups, roadside recovery operators, fast fit outlets, independent dealers, bodyshops, professional bodies and key trade associations (e.g. SMTA). Stakeholder Involved and Actions to be Taken Scottish Enterprise, Highlands and Islands Enterprise, SFC,FE colleges, HE institutions, private providers and manufacturer provision across the UK and QA authorities Work with the Workforce Development Committee and Employer Forums to: Government agencies - (quality improvement and funding and planning bodies), awarding bodies and statutory inspection bodies across the UK. Oversee quality content training methods the and of and of Work stakeholders Timescales Forecast Short / Medium / Long-term Outputs Outcomes Medium to long term Overarching Improvement in the quality of education and training provision across the sector. with to Page 49 of 71 / Funding Costings & To be defined through discussion with employers, providers and stakeholders Reviewing Monitoring Arrangements & To be defined through discussion with employers, providers and stakeholders Improved provider performance in terms of learner experience, achievement and retention, statutory inspection outcomes and meeting the requirements of funding bodies. Provision meets employer demands for quality training better meeting November 2006 Evidence (demand supply) and Sub-sectors Occupations Likely to Affected & be Desired Impact of Change, Improvement or Activity targets and measurements Strand 2 Apprenticeship programme review Strand 3 Improving assessment QA practice and Strand 4 – Quality improvement groups Strand 5 – Quality Driven quality improvement guide Strand 6 Professional development programme – Strand 7 – Teaching & learning products Strand 8 Automotive Skills Quality Award Scotland Stage 3 – Gap Analysis & Market Testing Employers Involved and Actions to be Taken assessment so they have a positive impact on business needs Produce an action plan to further develop the strands of the QIS and support quality improvement for the benefit of employers in the sector. Communicate with employers to inform them of Automotive Skills accredited providers. Stakeholder Involved and Actions to be Taken enable them to contribute to delivering and further developing the QIS - driving up standards, setting benchmarks, developing guidance and enabling the sharing of best practice across the provider network. Timescales Forecast Short / Medium / Long-term Outputs Outcomes Make the products and services available through the QIS to provider network. Communicate with the provider network the benefits of the products and services available through the strands of the QIS Page 50 of 71 their needs. / Funding Costings & Reviewing Monitoring Arrangements business Employers know where to go for quality training. Improved employer productivity through a better trained, skilled and employable workforce. Improved partnership working between providers and employers. Providers responsive needs employers. more to of Link to Skills Passport solution November 2006 & 4.5.2 Developing Quality Education and Training Provision (2) – Centres of Excellence This solution is designed to complement and support the development of the Quality Improvement Strategy in Section 5.1, to enhance the existing networks of provision through sharing of best practice and enabling employers to have effective access to the provision that is of the highest benchmarked quality and ‘fit for purpose’ against their business needs. Evidence (demand supply) and Employers have expressed concerns around flexibility, consistency and quality of training delivered across the complete range of provision FE college, private providers and manufacturer provision. Sub-sectors & Occupations Likely to be Affected Applies to all subsectors and activities. Desired Impact of Change, Improvement or Activity Develop world class learning provision across the UK to improve the overall quality and effectiveness of education and training delivered to the sector for the benefit of employers by: Developing employer friendly Centres of Excellence – Scotland, Northern Ireland and Wales. Employers Involved and Actions to be Taken Manufacturers and large / medium dealer groups, roadside recovery operators, fast fit outlets, independent dealers, bodyshops, and trade associations. Work on a broad scale with employers and specifically with Employer Forums and the Workforce Development Committee to: Scotland Stage 3 – Gap Analysis & Market Testing Gain support from employers to drive the development of Centres of Excellence Develop a project plan for Centres of Stakeholder Involved and Actions to be Taken FE colleges, HE institutions, private providers and manufacturer provision across the UK. Government agencies - (quality improvement and funding and planning bodies), awarding bodies and statutory inspection bodies across the UK. Timescales Forecast Short / Medium / Long-term Outputs Outcomes Medium Implement project plan to establish Centres of Excellence Long term Work with stakeholders to: Develop a feasibility study for Centres of Excellence. Develop an Expression of Interest for a national ‘Academy for Page 51 of 71 / Develop sustainable business plan for the national ‘Academy for Automotive Skills. Funding Costings & To be defined through discussion with employers, providers and stakeholders Reviewing Monitoring Arrangements & To be defined through discussion with employers, providers and stakeholders Establish Centres of Excellence. Establish a national ‘Academy for Automotive Skills. Integrate Centres of Excellence with the National Skills Academy to form an ‘Academy for Automotive Skills’ for the whole sector UK wide. Improved access to quality and specialist training November 2006 Evidence (demand supply) and Sub-sectors Occupations Likely to Affected & be Desired Impact of Change, Improvement or Activity Scotland Stage 3 – Gap Analysis & Market Testing Employers Involved and Actions to be Taken Excellence Stakeholder Involved and Actions to be Taken Automotive Skills. Timescales Forecast Short / Medium / Long-term Outputs Outcomes Page 52 of 71 / Funding Costings & Reviewing Monitoring Arrangements for more remote and rural employers November 2006 & 4.5.3 Skills Passport Along with many other sectors a clear need has been identified by the industry to consistently record and recognise the achievements and ‘currency’ of competencies for individual employees. This is a significant long term initiative to support effective staff recruitment, motivation and retention to underpin improvements in productivity and effective delivery of higher levels of customer service. Evidence (demand supply) and Employers have identified that there are some concerns over the ‘currency’ of individuals’ qualifications and their experience / expertise – with no real objective mechanism for recording or verifying this. Lack of recognition for individual achievement at present – could contribute to image of sector. Sub-sectors & Occupations Likely to be Affected Applies to all subsectors and occupations. Desired Impact of Change, Improvement or Activity Skills Passport will be the ‘industry standard’ document for recognition of an individual’s qualifications, training record, skills and expertise (inc. where not linked to formal qualification) – seen as a requirement of employment Skills Passport accepted by majority of employers across the sector – entry point to CPD This will contribute to raising professionalism in the sector and contribute to initiatives that Scotland Stage 3 – Gap Analysis & Market Testing Employers Involved and Actions to be Taken Manufacturer (National Sales Organisations) and their retailer networks, large / medium dealer groups, bodyshops, independent dealers, vehicle rental & leasing operators, and trade associations (e.g. SMTA). Agree scope for Skills passport and links with existing employer (and manufacturer) training records Develop feasibility and business plan for implementation Employers to recognise Skills Passport as a minimum Stakeholder Involved and Actions to be Taken SSDA, Scottish Executive, Scottish Enterprise, Highlands & Islands Enterprise, Scottish Funding Council, SQA, Providers, Learndirect Scotland, awarding bodies Timescales Forecast Short / Medium / Long-term Outputs Outcomes Short – Medium term Complete industrywide feasibility study and agree implementation plan. (1 – 2 years) Commitment from awarding bodies to recognise Skills Passport and link to accredited courses Agree scope for access to individual learner accounts and qualification records to ensure that Skills Passport has current record of an individual’s achievements. Page 53 of 71 / Funding Costings & To be defined through discussion with employers, providers and stakeholders Reviewing Monitoring Arrangements & To be defined through discussion with employers, providers and stakeholders Launch Skills Passport for sector Industry recognises the requirement for a Skills Passport. All new recruits to have a Skills Passport – linked to all accredited training (which is trackable through a central database) November 2006 Evidence (demand supply) and Sub-sectors Occupations Likely to Affected & be Desired Impact of Change, Improvement or Activity address issues raised in the National Consumer Council’s threatened ‘Supercomplaint Employers Involved and Actions to be Taken requirement of employment Stakeholder Involved and Actions to be Taken Develop feasibility and business plan for implementation – work with SSDA and other SSCs to ensure cost effective solution is developed (and which build on best practice experience form other SSCs) Timescales Forecast Short / Medium / Long-term Outputs Outcomes / Funding Costings & Reviewing Monitoring Arrangements Funding to evaluate links between online learning (inc. Learndirect) and Skills Passport Awarding bodies to ensure linkage with Credit and Qualification frameworks Scotland Stage 3 – Gap Analysis & Market Testing Page 54 of 71 November 2006 & 5 Overall Reviewing & Monitoring Arrangements - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -- 5.1 General The SSDA has declared that Sector Skills Agreements in their published versions will become the basis for SSCs’ business plans going forward. Automotive Skills will use the SSA as the focus of its activities going forward in parallel with the over 14-19 age group agenda and the Sector Qualifications Strategy that will be developed from the SSA. When finalised at the end of Stage 5 the action plans will include specific arrangements to evaluate the expected outcomes and out-turns of each part of the overall SSA, including the timetables envisaged and how progress towards success targets, set out in the action plans, will be measured. 5.2 Checkpoint Review The SSDA has been consulting with Sector Skills Councils (SSCs), partners and stakeholders represented on the Scottish Project Board on their Checkpoint Review (CR) initiative. Given the lessons learned from the Pathfinder SSCs the aim of the CR is to ensure the outcomes and outturns of the SSA are embedded in all relevant activities as agreed in the SSA. At the time of writing (November 2006) the consultation with partners is still ongoing and the specification of the CR is not confirmed, although its operation will vary according to the arrangements agreed in each nation. In outline terms the CR will include: An annual Ministerial meeting with CEOs of SSCs in implementation mode (i.e. post Stage 5) and delivery partners to update on progress; highlight achievements and good partnership practice and in addition indicate any barriers to joint delivery of action plans. The meeting would be informed by a short report from each partner and the SSC, using the existing monitoring and evaluation mechanisms established through the Action Plans, to demonstrate delivery and impact and provide a ‘litmus test’ ensuring that SSAs are providing a response to changing business needs. There will also be an interactive question and answer-type session led by the Minister. Scotland Stage 3 – Gap Analysis & Market Testing Page 55 of 71 November 2006 It is envisaged that the CR will make extensive use of the monitoring and evaluation methodologies agreed as part of the Action Plan development leading to the final publication and launch of the SSA at the end of Stage 5. 5.3 Specific Reviewing and Monitoring All specified activities laid out in the final versions of the Action Plans will require baseline measurement, on-going monitoring and evaluation to ensure a comprehensive understanding of the impacts of the Action Plans themselves can be established. At this stage the precise nature of the measurements will require finalisation, but the broad nature of these – with any detail already envisaged – are included in the tables shown in section 4 Proposed Collaborative Solutions. Further details will be devised in Stage 5 and finalised in the published SSA. Scotland Stage 3 – Gap Analysis & Market Testing Page 56 of 71 November 2006 Appendices Appendix 1: Gaps in Provision Work Based Learning Enrolments: Scotland Figure 5: Work Based Learning Enrolments: Scotland Region WBL Enrolments Retail Automotive Sector Sites Enrolments 100 sites Scotland 1,857 4,934 37.6 per Populatio n Enrolments per 100,000 population 5,062,011 36.7 Sources: WBL Enrolments: Scottish Enterprise: Work Based Learning Statistics 2003/04 Automotive Sites: Automotive Skills / Simpson and Carpenter: Automotive Sector Research Database 2005 Population Figures: Census 2001 In Scotland the WBL figure was produced by combining Scottish Enterprise’s ‘Skillseeker’ and Modern Apprenticeship enrolment statistics. It is important to note that this figure will not include all WBL; for example unsubsidised WBL being carried out by private training providers. There are also differences in the classification of courses which fall into the retail automotive sector between Scotland and other areas of the UK which prevent comparative analysis. With this in mind, in Scotland there were a total of 37.6 WBL enrolments per 100 retail automotive sites and 36.7 per 100,000 people; these figures are both higher than the English equivalents, although care needs to be taken when interpreting these findings as a consequence of the issues mentioned previously. Further Education Enrolments: Scotland Figure 6: Further Education Enrolments: Scotland st Region Scotland FE 1 Year Students 3,555 Retail Automotive Sector Sites 4,934 st st 1 Year Students per 100 sites 72.1 Population 5,062,011 1 Year Students per 100,000 population 70.2 Sources: FE Enrolments (Scotland): Scottish Funding Council Infact Database, 2004/05 data Automotive Sites: Automotive Skills / Simpson and Carpenter: Automotive Sector Research Database 2005 Population Figures: Census 2001 Scottish enrolment data was not available; the nearest equivalent is a headcount of first year students. The subject classifications are also different in Scotland, with the figures reported only relating to Vehicle Maintenance / Repair and Road Vehicle Engineering courses. In addition, the Gap Analysis & Market Testing Page 57 of 71 November 2006 data is for the period 2004/05 rather than 2003/04. With this in mind, the analysis gives a first year student headcount of 72.1 per 100 retail automotive sites and 70.2 per 100,000 people. 5.3.1 Higher Education The table below shows the varied availability of Higher Education (HE) courses across the UK. The fact that the regions and nations vary in terms of both physical area and size of the retail automotive sector means that it is appropriate to include these factors in the gap analysis. Figure 7: Higher Education Courses per 100 sites Area (km ) Courses per 2 1000 km 328 Retail Automotive Sector Sites 5,151 6.4 15,627 21.0 455 8,036 5.7 19,126 23.8 132.8 Region Courses East Midlands East of England 2 London 209 4,934 4.2 1,574 North East 0 2,631 0.0 8,592 0.0 North West 167 8,194 2.0 14,163 11.8 Northern Ireland 0 1,822 0.0 14,150 0.0 Scotland 18 4,934 0.4 78,807 0.2 South East 320 10,988 2.9 19,086 16.8 South West 30 6,712 0.4 23,851 1.3 Wales 116 3,580 3.2 20,778 5.6 West Midlands 601 6,958 8.6 13,004 46.2 Yorkshire and the Humber 271 6,234 4.3 15,411 17.6 UK Sources: 2,497 65,240 3.8 244,169 10.3 HE Courses: UCAS, Courses containing automotive module only Automotive Sites: Automotive Skills / Simpson and Carpenter: Automotive Sector Research Database 2005 Area Data: Office for National Statistics UK Standard Area Measurements The number of courses available per 100 retail automotive sites gives a guide to the comparative choice of course provision available to employers in each region/country. It is important to note that because the potential number of learners that could be accommodated on each course is not considered, since no such data is available, this is not a measure of the actual capacity of the sector in each region in terms of number of HE learners. The West Midlands had proportionately the widest choice of HE courses available, with 8.6 courses for every 100 retail automotive sites. The next largest choice of HE courses per 100 automotive sites was found in the East Midlands (6.4), followed by the East of England (5.7) and Yorkshire and the Humber (4.3). Scotland and the South West were both noticeably below average in terms of the number of courses available, with just 0.4 HE courses for every 100 sites in both regions. Gap Analysis & Market Testing Page 58 of 71 November 2006 The number of courses per 1000km2 provides a measure, in relative terms, of how far individuals/employees in a region might have to travel to access HE training provision. A lower figure indicates that individuals/employees would have to travel a longer distance. Gap Analysis & Market Testing Page 59 of 71 November 2006 Appendix 2: United Kingdom SWOT Analysis Strengths Sector Characteristics: • The Retail Automotive Sector is important, employing approximately 2% of the working population • The potential is significant; the UK new car market is second only to Germany in size and approximately 30 million vehicles use the UK’s roads • Productivity in the vehicle maintenance and repair sector is strong compared to European comparator countries Workforce • Established workforce with strong identity • A clearly defined footprint and occupational structure • Need for employment spread across the country • Rural employers operating in the sector tend to have workforce stability Training • Manufacturers and franchise dealers have a strong emphasis on training and updating skills to match new products • Apprenticeships are a common and valued route within the sector, with an increase in the uptake in the number of apprenticeships being taken in the sector evident • Employees in the 16-24 age range working in the Retail Automotive Sector are more likely to receive training than the all sector average, therefore this generation of employees will be accustomed to accessing training as part of the their working life • Training spend per employee receiving training in the Retail Automotive Sector is above the all sector average • Over 88% of employers in the sector are able to articulate their strategy for identifying training needs • Over 94% of employers in the sector who provide training for their employees are either satisfied or very satisfied with its impact on performance • Only 6.4% of employers feel that there is no link between training and business performance Gap Analysis & Market Testing Page 60 of 71 November 2006 Qualifications and Provision • Automotive Skills support 14 NVQs/SVQs over three levels covering each sub-sector of the industry, some of which are broken down to accommodate specialities • Training in Key or Core Skills is also offered to aid individual improvement, self learning and performance in education, training and work • A range of technical certificates have also been developed for apprenticeship programmes • The Automotive Retail Management Standard (ARMS) has been developed for managers and potential managers to improve productivity in the sector, and is due to be expanded in the near future • There are a high number of Level 3 qualifications serving the sector across the UK • The range of technical courses available is believed to be adequate to meet the needs of the sector, with a particular concentration in vehicle maintenance, repair and servicing • Employer input into private sector course design is felt to be significant amongst larger employers • According to official inspectorates (Ofsted, ALI, ETI, HMIe), public funded training provision serving the sector in the UK is good, with relatively few establishments criticised on any major issues Weaknesses Sector Characteristics • Average net margins/profitability in the sector are low (1½%), particularly in sub-sectors such as paint and body repair • Many sub-sectors require very high levels of capital investment, resulting from technology, supply chain and customer demands. As such, staff training and development is not always a priority • There is a tendency within the sector to focus on jobs rather than careers, especially within small businesses • Although there are some highly paid roles, remuneration levels in most occupations are depressed • There are a proportionately low number of sector businesses located in rural areas Recruitment • The image and reputation of certain Retail Automotive sub-sectors is not positive • Poor image and reputation has a negative impact on recruitment, with the sector too often acting as a repository for less able school leavers • The positive aspects of the sector are not promoted adequately by careers advisers • The level of graduate recruitment within the sector is low Gap Analysis & Market Testing Page 61 of 71 November 2006 • The employment of individuals from other sectors who have transferable skills is limited • The sector has a distinct gender imbalance, only one other UK sector has a lower proportion of female workers • As a result of the above a significant proportion of UK Automotive Sector employers report having hard to fill vacancies; rural employers in particular find it difficult to recruit • Employers report particular difficulties in recruiting technicians and mechanics Workforce • The Retail Automotive Sector has a high level of staff turnover, typically 25% per annum. Urban employers have a particularly high workforce turnover • Management & Leadership: the sector has the lowest proportion of Level 4 qualified managers of any sector; 16% of managers have no qualifications • Management & Leadership: management and leadership skills within the sector are believed to be weak, with promotion to these roles from technical or sales occupations often not being accompanied by the training required • Management & Leadership: there is a predominance of a ‘blame culture’ in many enterprises • Technical Skills: employers find it difficult to recruit individuals with the required level of technical skills, indeed technical skills gaps are a major issue for the sector • Generic Skills: generic skills (i.e. customer handling, team working) are in short supply amongst existing employees and new recruits • Basic Skills: the standard of literacy and numeracy of recruits is often poor • Employability & Life Skills: attitudes, consistency, motivation, reliability and willingness to learn are issues within the sector’s workforce • With regards to occupations, internal skills gaps are most common amongst those in skilled trades occupations, followed by sales and customer service staff Training • Only 27.6% of employers in the sector have a Business Plan or Strategy, only 12% have a Training Plan and just 7.2% have a specific budget for training; with smaller employers much less likely to have any of these • Retail Automotive Sector employees as a whole receive less job related training, with 10% fewer businesses in the sector (54%) providing training for their employees than the UK average • Employers find it difficult to access training in a manner which is not disruptive to their business, particularly rural employers who often have greater transportation challenges. Indeed, the location of training is a key barrier to uptake • The direct and indirect costs of training also act as a barrier to uptake Gap Analysis & Market Testing Page 62 of 71 November 2006 • NVQs/SVQs are perceived negatively by some employers, with trainees often not being sufficiently experienced in practical skills to enable them to undertake the activities their qualifications say they can • There is an identified need for a closer partnership between training providers and employers • Engagement is made difficult by a lack of interest amongst many employers • Intense competition and fear of ‘staff poaching’ means that employers are reluctant to use the same training provider as a rival firm Qualifications and Provision • The provision of qualifications above Level 3 is comparatively sparse • There is a gap in vocational training funding for the over 19s • Training providers are concerned about declining levels of funding for FE • The structure of provision and funding of courses is felt to be confusing for employers • Given the resource intensive nature of some forms of training there is concern that some providers do not have the up-to-date equipment required • Internal Quality Assurance was an area identified as a slight weakness by official inspectorates of provision • The level of cooperation between training providers has been reduced by the introduction of competition between colleges in the FE sector Opportunities Sector Characteristics • Larger businesses are acquiring smaller counterparts within the sector; larger businesses are more likely to interact with Automotive Skills and offer training • Consolidation of the number of businesses in the sector may increase the reliance of manufacturers on larger dealer groups – increasing the power of employers in the downstream automotive sector Recruitment • In the main the poor/negative image of the sector is unfounded and can therefore be addressed, perhaps by the creation of Industry Ambassadors and by the activities of Automotive Skills • A number of opportunities exist to improve the image amongst and enhance recruitment from within the 14-16 age category, including: o Activities to inform the school curriculum (i.e. guest speakers from within the sector, both employers and employees, site visits to successful organisations within the sector etc) Gap Analysis & Market Testing Page 63 of 71 November 2006 o The targeting of formal influencers, such as Careers Advisors, with promotional material and opportunities to experience the different occupations within the sector o The targeting of informal influencers, such as parents, guardians and relatives, with promotional material o Improved provision for the able and the motivated, with options including enhanced work experience activities and pre-apprenticeships • Skills gaps can also be addressed by a wider sourcing of employees, including: o The recruitment of individuals from other sectors with highly developed transferable skills o Actions to address the gender imbalance and the removal of barriers to women working in the sector. This would also help to address the poor image of the sector amongst female customers • Linked to all of the above, there is a need to create career pathways within the Retail Automotive Sector to enable new entrants and the existing workforce to gain a vision of how their career can develop • Socio-demographic changes – more older workers who may be more suitable to roles within the sector (i.e. sales) Workforce • The creation of a Skills Passport would enable the qualifications and, more importantly the competencies of individuals to be recorded. This would ensure that employers could be certain that individuals are competent at the tasks their qualifications indicated they can do before employing them Training • There is a opportunity to make training more attractive for employers by offering modular, building block and bite-sized delivery of courses which reduce the disruption to day-to-day activity • New methods of learning could be adopted to enable employers in remote areas to access training, for example e-learning or mobile training centres • The value of training and qualifications could be more effectively communicated to employers • On-the-job up-skilling could be improved by promoting ‘train-the-trainer’ courses • There is an opportunity to promote FSA accreditation to ensure financial consistency within the sector Gap Analysis & Market Testing Page 64 of 71 November 2006 Qualifications and Provision • Actions to address inadequacies in management and leadership within the sector are underway with the establishment of Automotive Retail Management Standards (ARMS) Level 3 (‘Step Into ARMS’) and Level 4. The impact will depend on the success of marketing and delivery • The creation of a Sector Qualifications Strategy will offer the opportunity to only retain support for courses which meet the needs of employers in the Retail Automotive Sector and to outline clear career and training pathways • There is an identified need for a single authoritative information point and recognised approval system for the provision and funding of courses to reduce employer confusion • The proposed formation of a virtual Skills Academy could offer the opportunity to disseminate best practice in training between employers and training providers operating in the sector Threats Sector Characteristics • Levels of investment required to operate in the Retail Automotive Sector are increasing; this could lead to a further decrease in the number of businesses operating in the sector • There is a potential that low net margins in the sector could continue to have a negative impact on investment in training • Manufacturers putting pressure on the downside supply chain (dealerships/repair/distribution) to cut costs; this could impact on training as it is often one of the first activities to be cut • Rapid technological changes could create skills demands which the sector is unable to meet in the short term (i.e. high level problem solving and technical diagnostic skills to cope with complex vehicle systems) • The potential introduction of National ‘Super-Complaints’ could result in mandatory legislation which will impact on skills and training requirements • Some of the major employers within the Retail Automotive Sector are multinationals and therefore the sector is subject to influences from outside the UK • The servicing and repair sector is showing signs of a small decline, given the longer service intervals and increased reliability of new vehicles this trend may. • The skills required in the serving and repair this sub-sector may change rapidly, with the potential that there will only be a demand for a smaller number of more highly qualified/training workers Gap Analysis & Market Testing Page 65 of 71 November 2006 • The diversity of the sector means that solutions to skills and training problems need to be tailored to meet the needs of all business types; as such, if a singular approach were adopted it is likely to be unsuccessful Recruitment • The activities of a small number of ‘rogue’ employers and the highlighting of these by the media could continue to tarnish the image/reputation of the whole sector • Increased numbers of young people being guided towards Higher Education could continue to reduce the pool of potential recruits • There is a danger that low pay and poor working conditions could continue to hamper the sector’s ability to attract high quality employees • Competition from other sectors • Employers may have to pay more to recruit, which could reduce budgets for training and investment even further Workforce • It is projected that approximately 30% of the workforce will need to be replaced during the period 2004-2014, including a high proportion of the more highly skilled individuals within the sector, creating the danger of further and more extensive skills gaps • Management and Leadership: there is a danger that management culture within the sector will remain function orientated and short-termist • Technical Skills: there is a danger that employers, especially SMEs, will be unable to keep up with the pace of technological change and its associated training demands • Generic, Basic and Employability Skills: there is a danger that the school educational system will continue to fail to equip young people with the core skills required; a threat outside of the control of the sector • Generic, Basic and Employability Skills: there is a danger that the sector will continue to only attract individuals with lower level core skills Training • As a result of the retirement of many of the more highly skilled individuals in the sector the ability to offer on-the-job training internally within the sector may decrease • Limited number of providers with up-to-date training equipment • Less investment on training as employers concerned about poaching or staff moving for career development Qualifications and Provision • There is an expectation that the number of training providers will decline over the next 5-10 years; this could impact negatively on the ability to satisfy employer needs Gap Analysis & Market Testing Page 66 of 71 November 2006 • There is a danger that the cost of providing training for certain sub-sectors will become prohibitively expensive (i.e. heavy vehicle) and that the training courses required will not be available • There is a threat that employers continue to be sceptical of the value of NVQs/SVQs and that new qualifications (i.e. ARMS) are not embraced • Lack of transferability amongst manufactures may become more pronounced as a means of them trying to retain staff Solutions Mapped to Scottish National Priorities The outline draft solutions suggested in this Stage 3 report will be mapped to the Scottish priorities detailed in the Lifelong Learning Strategy. This will be detailed in the final Stage 5 reports in conjunction with the final agreed action plans. Gap Analysis & Market Testing Page 67 of 71 November 2006 Appendix 3: Scottish Stakeholders Engaged During the SSA Process The following table lists partner organisations that Automotive Skills has already engaged with during Stage 3 of the SSA. Group and bi-lateral discussions and negotiations will develop through to the end of Stage 5 and beyond to ensure the SSA aligns with the Scottish policy agenda to create synergistic outcomes. Automotive Skills looks forward to continuing to work closely with all our partners and stakeholders in Scotland. Figure 8: Stakeholders Engaged during the SSA process 1 Careers Scotland 2 Futureskills Scotland 3 Highlands and Islands Enterprise 4 Jobcentre Plus 5 Learndirect Scotland 6 Scottish Enterprise 7 Scottish Executive 8 10 Scottish Executive Education Department Scottish Executive Enterprise, Transport and Lifelong Learning Department Scottish Further Education Unit 11 Scottish Funding Council 12 Scottish Trades Union Congress 13 SSDA Scotland 14 SQA Accreditation Unit 15 SQA Awarding Body 9 Gap Analysis & Market Testing Page 68 of 71 November 2006 References Automotivate – Sector Skills Agreement – Stage 1 – Skills Needs Assessment – UK Report, Automotive Skills Limited 2006 Automotivate – Sector Skills Agreement – Stage 1 – Skills Needs Assessment – Scotland Report, Automotive Skills Limited 2006 Automotivate – Sector Skills Agreement – Stage 2 – Assessment of Provision – UK Report, Automotive Skills Limited 2006 Automotivate – Sector Skills Agreement – Stage 2 – Assessment of Provision – Scotland Report, Automotive Skills Limited 2006 ‘August profitability levels set the scene for final quarter’ Motortrader, p10, 23rd October 2006 A.M. 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