Automotivate The Sector Skills Agreement for the Downstream Motor Industry Sector Skills Agreement – Stage 3 Gap Analysis and Market Testing Wales Report November 2006 Institute of the Motor Industry Fanshaws Brickendon Hertford SG13 8PQ 01992 511521 www.motor.org.uk Stage 3 – Gap Analysis & Market Testing Page 1 of 70 November 2006 Contents PREFACE ...................................................................................................................................... 5 1 INTRODUCTION..................................................................................................................... 6 2 EXECUTIVE SUMMARY ........................................................................................................ 7 3 THE EVIDENCE.................................................................................................................... 11 3.1 SKILLS NEEDS .................................................................................................................. 11 3.1.1 The Sector .............................................................................................................. 11 3.1.2 Geodemographics .................................................................................................. 11 3.1.3 Workforce Profile .................................................................................................... 12 3.1.4 Skills Categories ..................................................................................................... 12 3.1.4.1 3.1.4.2 3.1.4.3 3.1.4.4 3.1.4.5 Employability Skills ........................................................................................................... 12 Basic Skills ....................................................................................................................... 12 Generic Skills.................................................................................................................... 12 Technical Skills................................................................................................................. 13 Management and Leadership Skills.................................................................................. 13 3.1.5 Approach to Employer Engagement....................................................................... 13 3.1.6 Employer Depth Engagement................................................................................. 14 3.1.7 Engagement Strategy for Stages 4 and 5 .............................................................. 16 3.1.8 Approach to Communication, Discussion and Evaluation...................................... 16 3.2 SUPPLY-SIDE EVALUATION ............................................................................................... 18 3.2.1 SWOT Analysis – Wales......................................................................................... 18 3.2.2 Geographic Context................................................................................................ 19 3.2.3 Changes to Provision by Skills Category................................................................ 20 3.2.4 Approach to Supply-Side Consultation................................................................... 22 3.2.5 Balance of Evidence – the Learner Input ............................................................... 22 4 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 capability............................................................................ 28 4.3 GENERIC SKILLS .............................................................................................................. 31 4.3.1 Generic Skills.......................................................................................................... 31 4.3.2 Generic Skills - Customer Service.......................................................................... 32 4.3.3 Legislation............................................................................................................... 34 4.3.4 Basic Skills.............................................................................................................. 35 4.3.5 Re-implement key skill areas in Apprenticeship Framework.................................. 36 4.3.6 Implement functional / key skills within Work Focussed Learning Pathways......... 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............................................................................ 42 4.4.4 High Calibre and Extra-Sector Recruitment ........................................................... 44 4.4.5 Employability........................................................................................................... 45 4.5 STRATEGIC OVER-ARCHING SOLUTIONS ............................................................................ 47 4.5.1 Developing Quality Education and Training Provision (1) - Quality Improvement Strategy 47 4.5.2 Developing Quality Education and Training Provision (2) – Centres of Excellence48 4.5.3 Skills Passport ........................................................................................................ 50 5 OVERALL REVIEW & MONITORING ARRANGEMENTS.................................................. 52 5.1 5.2 5.3 GENERAL ......................................................................................................................... 52 CHECKPOINT REVIEW ....................................................................................................... 52 SPECIFIC REVIEWING AND MONITORING ............................................................................ 53 Stage 3 – Gap Analysis & Market Testing Page 2 of 70 November 2006 APPENDICES .............................................................................................................................. 54 APPENDIX 1: GAPS IN PROVISION ................................................................................................. 54 Work Based Learning Enrolments: Wales ............................................................................ 54 Further Education Enrolments: Wales .................................................................................. 54 Higher Education................................................................................................................... 55 APPENDIX 2: UNITED KINGDOM SWOT ANALYSIS ......................................................................... 56 Strengths ............................................................................................................................... 56 Weaknesses.......................................................................................................................... 57 Opportunities ......................................................................................................................... 59 Threats .................................................................................................................................. 61 APPENDIX 3: SWOT ANALYSIS – OVERVIEW ................................................................................ 63 Solutions Mapped to Welsh National Priorities ..................................................................... 66 APPENDIX 4: WELSH STAKEHOLDERS ENGAGED DURING THE SSA PROCESS ................................ 67 REFERENCES ............................................................................................................................. 68 Stage 3 – Gap Analysis & Market Testing Page 3 of 70 November 2006 List of figures FIGURE 1: ENTERPRISE SKILLS FOCUS TYPOLOGY .......................................................................... 15 FIGURE 2: SWOT ANALYSIS - WALES ............................................................................................. 18 FIGURE 3: EMPLOYABILITY SKILLS .................................................................................................. 20 FIGURE 4: BASIC SKILLS ................................................................................................................. 20 FIGURE 5: GENERIC SKILLS ............................................................................................................ 21 FIGURE 6: TECHNICAL SKILLS ......................................................................................................... 21 FIGURE 7: MANAGEMENT AND LEADERSHIP SKILLS .......................................................................... 22 FIGURE 8: WORK BASED LEARNING ENROLLMENTS - WALES ............................................................ 54 FIGURE 9: FURTHER EDUCATION ENROLMENTS - WALES ................................................................. 54 FIGURE 10: HIGHER EDUCATION COURSES ..................................................................................... 55 FIGURE 11: SWOT ANALYSIS - OVERVIEW...................................................................................... 63 FIGURE 12: STAKEHOLDERS ENGAGED DURING THE SSA PROCESS .................................................. 67 Stage 3 – Gap Analysis & Market Testing Page 4 of 70 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 Stage 3 – Gap Analysis & Market Testing Page 5 of 70 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 Wales and there are reports for each of 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 Wales. This report outlines the agreement of what are the skills needs of the sector 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. Stage 3 – Gap Analysis & Market Testing Page 6 of 70 November 2006 2 Executive Summary The automotive sector downstream of the factory gate, with its GVA of £677m and total turnover of £3.9bn, is a far more significant contributor to the Welsh economy than is generally realised. Approximately 30,000 employees directly depend on the sector and its 3,800 enterprises in Wales 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 employees 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 about a quarter of all positions only. 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 categorized as “Survivors” or “Aspirers” according to a range of Stage 3 – Gap Analysis & Market Testing Page 7 of 70 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 summarized 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 (eg Work Focussed Learning Pathways) • 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 • Internalized recruitment tendency • Low managerial qualification penetration • Widespread concerns about the quality of training Opportunities (external) include; • Sector Skills Agreement • 14-19 Learning Pathways initiatives will help encourage higher caliber 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 organisation and institutions • Increased availability of training through the medium of welsh may attract a more diverse workforce Stage 3 – Gap Analysis & Market Testing Page 8 of 70 November 2006 Threats (external) include; • Sector not a priority in any of the Welsh regions • 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 skills workers retiring, structural changes to provision and its funding, public sector unresponsive to employer needs, etc. 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 • Developing Generic Skills • Increasing Legislative Awareness • Developing Basic Skills • Developing Core Skills • Improving the attractiveness of the Sector • Developing Career Pathways • Balancing the Workforce • Including High Calibre & Extra Sector Recruitment • Developing Employability Skills • Developing Quality Development Programmes o Quality Improvement Strategy (QIS) o Development of Centres of Excellence or similar in Wales o Skills Passport Development of the downstream automotive Sector Qualifications Strategy (SQS) will drive from the SSA action plans. Stage 3 – Gap Analysis & Market Testing Page 9 of 70 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. Stage 3 – Gap Analysis & Market Testing Page 10 of 70 November 2006 3 The Evidence 3.1 Skills Needs 3.1.1 The Sector The sector in Wales comprises thirteen industry-defined sub-activities across a range of business types downstream of the vehicle factory gate. There are 3,855 businesses across Wales with a combined turnover of £3.9bn annually, producing a total GVA of £677 million each year. The sector in Wales employs 30,000 people, of whom 5 out of every 6 are male. The sector is dominated by a few very large employers and the 80% that are micro-businesses. Sector profitability is relatively poor, with 1% net profit ratio in Wales being typical. Some sector activities, such as body repair, suffer the poorest profitability, whilst others, such as contract hire and leasing, enjoy better margins. Overall, this depresses pay levels and reduces investment in training as well as in development and skills. This makes the sector 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 Welsh employers. Historically the sector has been driven by targets and there is still room to improve customer focus. At the same time, increasing emphasis on careers, rather than occupations, is recognized 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. 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 without 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. Stage 3 – Gap Analysis & Market Testing Page 11 of 70 November 2006 3.1.3 Workforce Profile Although significant in terms of FE provision, technicians and related occupations account for only a quarter of all employees in the footprint across the U.K. The male employees dominate the workforce, but union membership is just 2%. Those employed in the public sector account for just 2¼%. New recruits tend to come from school (40%) or F.E. (20%), with H.E. accounting for just 7%. This is 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 18% of employers in Wales, and the shortages relating to recruits, highlighted by 4% of employers, five skills categories have been identified by employers as requiring action. Many of these could be said to apply across sectors. Across the UK, the Automotive Skills Validation Survey has shown that 3 out of 4 people responding to the research agreed that proficiency in generic skills like communications, teamworking and problem solving will need to increase significantly for businesses to stay competitive. Automotive Skills’ research has also 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. 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 too many school leavers are joining the workforce with inadequate numeracy and literacy standards and they have to take too much remedial action 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; communication skills (44% of employers), problem-solving (61%), team working (46%), and customer handling (63%). Three quarters of employers agreed that such generic skills were essential for their organizations to remain competitive. Stage 3 – Gap Analysis & Market Testing Page 12 of 70 November 2006 3.1.4.4 Technical Skills Seventy-three percent of sector establishments in Wales 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 responding to research across the UK 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 across the UK have a level NVQ 4 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 asked in the validation survey definitely agreeing that this is required. If enterprises are to become less bureaucratic and more like learning organizations significant change will be required in this area. 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: 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. 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 Stage 3 – Gap Analysis & Market Testing Page 13 of 70 November 2006 gap analysis. These were informal open debates without assumptions or preconceptions designed to identify the priorities for the sector. 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. 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. 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 four were conducted in Wales. 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 organization 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. Stage 3 – Gap Analysis & Market Testing Page 14 of 70 November 2006 Figure 1: Enterprise Skills Focus Typology Type of Business “Survivors” Often smaller, independent, long established, family run. Sites Often single site Employees Typically micro-businesses; <5 employees Survival Business Imperative Skills Focus Skills Gap/Shortage Categories recognised Technical needs Approach to Employees Approach to Training Often cannot (or don’t want) to cope with the rigours of training and development. Larger problem with: Employability skills Basic skills (esp <25s) Generic skills Technical skills Management and leadership needs not often recognized. Impact of skills gaps/shortages more significant on smaller workforce. More likely to want more ‘old school’ mechanics (which are hard to find) to work on older cars. Less likely to have the time to look after apprentices, etc. Few have basic standards for entry. Little training infrastructure to support micro-businesses (too little practical application in college courses these days). “Aspirers” Medium/large independents, franchised, larger retailers, groups Often multi-site, also single site Micro- and larger businesses; >5 employees Looking for opportunities to grow Lead by progressive attitudes or external influences (eg manufacturers, CSI). Smaller problem with: Generic skills (esp. customer handling) Technical skills Management and Leadership Skills The less employable without minimum requirements have been screened out already. Tend to replace rather than repair – on newer vehicles. Pace of technological change causing some difficulties. More likely to have HR function, pay tends to be better. Easier to attract better staff. Often organize or use own or manufacturer facilities/courses; eg academies, reflecting the xyz way of doing things. An underlying theme has crystallized through the first three stages of the SSA; too many young people have a poor attitude and lack of motivation to fulfill 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 recognized, especially by the more progressive and sophisticated enterprises. Promotion through the ranks is a common Stage 3 – Gap Analysis & Market Testing Page 15 of 70 November 2006 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 Wales. This will include the Welsh 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. 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 responses 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 Stage 3 – Gap Analysis & Market Testing Page 16 of 70 November 2006 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. Stage 3 – Gap Analysis & Market Testing Page 17 of 70 November 2006 3.2 Supply-Side Evaluation 3.2.1 SWOT Analysis – Wales Figure 2: SWOT Analysis - Wales SPECIFIC STRENGTHS SPECIFIC WEAKNESSES Workforce Sector Characteristics Overall sector employment is forecast to increase Wales has a higher proportion (92%) of small in Wales, compared with a fall at the UK level businesses Compared to the UK average, the sector in Wales average (88%); smaller businesses are less likely to has a marginally higher proportion of employees train their staff with Level 3 and Level 4 qualifications Workforce Training Wales there is a relatively low proportion of Welsh employers in the sector are more likely to employment in professional and associate provide training for their staff, with over 66% of professional and technical occupations in employers having done so in the last 12 months the Retail Automotive Sector The UK Retail Automotive Sector has a much lower proportion of female workers Qualifications and Provision Compared to the UK sector average, in According to research carried out for Stage 2 compared to the UK average of 54% (1-10 employees) that the UK sector According to UFI data the greatest level of than the all sector average (77% male provision in Wales is at Level 3; the level believed versus 53% male); in Wales this situation is to be in greatest demand amongst employers much According to official inspectorates colleges and training providers serving the sector in Wales are more pronounced (85% of the workforce being male) Training performing well; no serious problems have been Further Education: the number of females enrolled on courses in the sector is low highlighted Work Based Learning: the number of females taking part in courses in the sector was very low Higher Education: the number of females taking part in HE courses was low Qualifications and Provision According UFI (2005), the number of Retail Automotive Sector courses running in Wales is low in comparison to most English regions Gaps in provision are evident at Entry Level in Wales (UFI) The main shortcomings identified by official inspectorates of training provision serving the sector in Wales tended to be around internal quality assurance Stage 3 – Gap Analysis & Market Testing Page 18 of 70 November 2006 SPECIFIC OPPORTUNITIES SPECIFIC THREATS Workforce Workforce Marked increases in the expected levels of 37% of the workforce in Wales will need to qualifications required amongst those employed in be replaced during the period 2004-2014, each occupation are projected, particularly at Level creating the danger of further and more 3; creating increased demand for qualifications and extensive skills gaps. This figure is above training the UK average of 30% Training DELLS has established a National There is a threat that the Retail Automotive Planning Sector is not perceived as a priority by Framework and Funding System which will create funders and policy makers and that their opportunities for providers servicing the Retail actions do not meet the sector’s specific Automotive Sector requirements The Welsh Assembly’s Skills and Employment Larger employers who operate across the Action Plan (SEAP2) outlines specific objectives to UK have voiced frustration about the assist employers and raise skills levels 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 Broadly speaking the skills issues identified in Wales are of a similar nature and significance as those found elsewhere with differences being largely at the margins. Essentially the same kinds of education, skills and training problems affect employers right across the UK. Where there is a difference it is in the dichotomy between businesses with predominantly urban and predominantly rural employee and customer territories. Qualitative research has highlighted that the dynamics of urban and rural employers differ significantly both in terms of the labour market and customer base. Rural employers tend to have more stable workforces with less staff turnover and more loyal customer bases. They do find it harder to recruit, however, and harder to access training in a way that does not disrupt their businesses. Proximity and access to colleges, institutes, academies and places of work, coupled with relatively higher costs can cause significant disruption and difficulty due to extended travel time and logistical difficulties. Urban-based employers tend to face a workforce with a high turnover of staff, (enjoying a wider range of alternative employment opportunities), set in a more transient societal environment. The customer base is often less stable and poaching of staff is a greater problem. Access to training and skills development is better and less disruptive, with a greater choice of delivery. There are also perceived differences in quality of delivery. Stage 3 – Gap Analysis & Market Testing Page 19 of 70 November 2006 3.2.3 Changes to Provision by Skills Category In the next sections we outline in table format by skills category a narrative of the requirements for change that forms the basis for the proposed collaborative solutions. Figure 3: Employability Skills Employability Skills Desired changes to current provision Desired changes to provider structure Demographic groups to be targeted Targeted industry sub-activities Specific skills Qualification Frameworks Levels Volumes/Proportions of Workforce Desired Modes of Delivery Desired Provider Capacity Other Information (including examples of good practice) Improvements to the school curriculum More advice on the content of learning programmes Standardised initial assessments Skills for Work courses Inter-personal skills development Learning programmes to include a range of technical, basic, generic and employability skills Flexible, appropriate qualifications frameworks Figure 4: Basic Skills Basic Skills Desired changes to current provision Desired changes to provider structure Demographic groups to be targeted Literacy Numeracy Improvements to the school curriculum Learning programmes to include a range of technical, basic, generic and employability skills 14-16 School Leavers Apprentices Targeted industry sub-activities Specific skills Qualification Frameworks Levels Volumes/Proportions of Workforce Desired Modes of Delivery Desired Provider Capacity Other Information (including examples of good practice) Stage 3 – Gap Analysis & Market Testing Page 20 of 70 November 2006 Figure 5: Generic Skills Generic Skills Desired changes to current provision Desired changes to provider structure Demographic groups to be targeted Targeted industry sub-activities Specific skills Qualification Frameworks Levels Volumes/Proportions of Workforce Desired Modes of Delivery Desired Provider Capacity Other Information (including examples of good practice) Planning and organizing Problem-solving Team working Customer handling Learning programmes to include a range of technical, basic, generic and employability skills All employees in the footprint. Figure 6: Technical Skills Technical Skills Desired changes to current provision Desired changes to provider structure Demographic groups to be targeted Targeted industry sub-activities Specific skills Qualification Frameworks Levels Volumes/Proportions of Workforce Desired Modes of Delivery Desired Provider Capacity Other Information (including examples of good practice) Stage 3 – Gap Analysis & Market Testing Particular emphasis on keep pace with changing product technology Learning programmes to include a range of technical, basic, generic and employability skills Likely to impact on technicians employed in Wales Page 21 of 70 November 2006 Figure 7: 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 Demographic groups to be targeted Targeted industry sub-activities Specific skills Qualification Frameworks Levels Volumes/Proportions of Workforce Desired Modes of Delivery Desired Provider Capacity Other Information (including examples of good practice) 3.2.4 Approach to Supply-Side Consultation The Welsh Showcasing Event took place in November 2006. From this point, Automotive Skills will continue to undertake regular engagement with stakeholders in Wales through the Project Board meeting, ad-hoc group sessions and bi-lateral meetings. These are continuing and ongoing. 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 Welsh policy agenda to enable positive benefits and synergistic outcomes to be developed. 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. Stage 3 – Gap Analysis & Market Testing Page 22 of 70 November 2006 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 trades union 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. Stage 3 – Gap Analysis & Market Testing Page 23 of 70 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 and supply) 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 NVQ Level 4+, and 16% have no qualification at all) 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 to progress to more senior levels. Stage 3 – Gap Analysis & Market Testing 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. 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 Stakeholder Involved and Actions to be Taken Welsh Assembly Government including DELLS, DEIN, and the Quals department. HEFCW. Wales Management Council. Performance Engineering Training Consortium. In the short term, this can be stimulated through work with aspiring new managers to encourage a learning culture and develop best practice activity. Employers with existing Level 3 programmes to map & align management training delivery with ‘Step into ARMS’ (Level 3) with support of awarding bodies & providers. Awarding bodies & providers to offer new qualification. Create ‘Learning Champions’ Establish ‘Fast Track’ pilot schemes - key Funding support to map existing employer programmes across to ‘Step into ARMS’ 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 Wales (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’ Funding to support mapping and promotion in place within first year. Close collaboration between awarding bodies and Page 24 of 70 Funding & Costings Reviewing & Monitoring Arrangements To be defined through discussion with employers, providers and stakeholders To be defined through discussion with employers, providers and stakeholders Case studies illustrating practical benefits of addressing business needs for employers Year 15 manufacturer franchise networks across the UK. November 2006 Evidence (demand and supply) Sub-sectors & Occupations Likely to be Affected Desired Impact of Change, Improvement or Activity 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’ Employers Involved and Actions to be Taken influencer employers to develop case studies to illustrate clear benefits for the individual and business needs of employer. Stakeholder Involved and Actions to be Taken providers to facilitate ‘Fast Track’ groups of employees with leading employers to achieve Level 3 qualification. Endorsement and promotion of ‘Step into ARMS’ by Trade Associations to influence member networks 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. Assess role for an HR Toolkit to enhance practical support for Level 3 qualification Stage 3 – Gap Analysis & Market Testing Timescales Forecast Short / Medium / Long-term Outputs / Outcomes Funding & Costings Reviewing & Monitoring Arrangements 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 70 Use of HR Toolkit to provide practical support for learners on Step into ARMS programmes 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 and supply) Research has highlighted a relatively poor level of management qualification across the sector (Only 14% of managers in sector have NVQ Level 4, 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 capability to exploit Strengths and Opportunities, and respond to Threats and Weaknesses identified in SWOT 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) Stage 3 – Gap Analysis & Market Testing 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. Create ‘Learning Champions’ to encourage wider participation. Develop higher quality managers to enable succession planning – and contribute to 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 Employers with existing Level 5 training programmes to use the level 5 qualification to assess the competence of their level three managers. Establish ‘Fast Track’ pilot schemes - key influencer employers to develop case studies to illustrate clear benefits for Stakeholder Involved and Actions to be Taken Welsh Assembly Government Departments: DELLS. DEIN, Quals, HEFCW and Wales Management Council. Cardiff Business School as potential pilot partner Timescales Forecast Short / Medium / Long-term Outputs / Outcomes Short term activity around case studies and employer awareness raising Existing employer management training provision – working closely with major employers in Wales (top 5 dealer and fast fit employers) and manufacturer franchise networks across the UK. Manufacturers to visibly change existing programmes to profile of ARMS to show ‘Quick Win’ Funding to support employer use of level 5 qualifications and map existing programmes 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 just end Short and Medium term focus for activity to stimulate employer awareness of business benefits to be derived from wider uptake of formal management development. Funding & Costings Reviewing & Monitoring Arrangements To be defined through discussion with employers, providers and stakeholders 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 Endorsement and promotional support from Trade Associations Page 26 of 70 November 2006 Evidence (demand and supply) Sub-sectors & Occupations Likely to be Affected analysis Desired Impact of Change, Improvement or Activity reduced staff turnover (and associated costs) at all levels in business Recognition of achievement of stand-alone modules to support individual progression Broaden the vision of management as a catalyst to address limitations of ‘silo mentality’ Stage 3 – Gap Analysis & Market Testing Employers Involved and Actions to be Taken the individual and business needs of employer. Endorsement and promotion of ARMS by Trade Associations to influence member networks Stakeholder Involved and Actions to be Taken 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 Medium Term Funding support for development of provider capacity for ARMS – work with existing management & leadership providers to contextualise delivery to ARMS Page 27 of 70 Funding & Costings Reviewing & Monitoring Arrangements Clear link to Skills Passport solution – recognition of achieving ARMS modules (partqualification) as a ‘selling benefit’ for individual progression and to help prospective employers identify aspiring managers. November 2006 4.2 Technical Skills 4.2.1 Raising technical skills 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 and supply) 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. 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. Employers have identified a lack of proficiency in sector-specific technical skills among their workforces. Concerns over the technical capability of staff working in the sector are also Stage 3 – Gap Analysis & Market Testing 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 participation in apprenticeships, and other training increases. Local training Employers Involved and Actions to be Taken Micro, small and medium size businesses that specialise in the servicing, repair and fault diagnosis of vehicles. Trade Association endorsement Development of “Employer Friendly Learning Providers” with the capability to delivery the full range of Automotive Skills qualifications, short courses and programme frameworks Development of “Employer Friendly Learning Providers” who have the capability to deliver training Stakeholder Involved and Actions to be Taken Welsh Assembly Government Departments: DELLS. DEIN, Quals and CareersWales. Performance Engineering Technium and Performance Engineering Training Consortium. Timescales Forecast Short / Medium / Long-term Outputs / Outcomes Short to Medium Term - Pilot “Employer Friendly Learning Providers” Employer Friendly Learning Providers” in partnership with local government agencies- Increased number of micro, small and medium size businesses engaging in Government funded initiatives. FE Colleges and private providers. Funding & Costings Reviewing & Monitoring Arrangements To be defined through discussion with employers, providers and stakeholders To be defined through discussion with employers, providers and stakeholders Using bite-size technical training employers are provided with opportunity to meet emerging industry “Codes of Practice”. Skill and qualification levels within the Retail Motor Industry increase. Develop “Employer Friendly Learning Providers with the capacity to deliver a range of training, information and services designed to help employers build capacity and satisfy business Page 28 of 70 November 2006 Evidence (demand and supply) Sub-sectors & Occupations Likely to be Affected reflected in the National Consumer Council’s threatened ‘Supercomplaint’ Employers not actively supporting the local training provision Desired Impact of Change, Improvement or Activity provision delivery reflects employer needs across technical and non technical areas Local training provision adheres to Automotive Skills Quality Improvement Strategy Employers Involved and Actions to be Taken and assessment programmes that meet the needs of employers and employees – and also capability to provide information, advice and guidance to employers Stakeholder Involved and Actions to be Taken needs. Reduce employer confusion surrounding training and funding resulting in improved engagement. Work with key partners at both national and local levels to maximise recruitment and promotional opportunities for Apprenticeships. Employers engage with apprenticeship programmes Enable employers to select better informed suitable young people for apprenticeships by providing links between national and local recruitment More flexible qualifications made available Establish links between national employer apprenticeship programmes that have surplus applicants and local provision with surplus vacancies/training opportunities. Employers run CPD programmes for employees – linked to roll out of Skills Passport Implement Stage 3 – Gap Analysis & Market Testing Timescales Forecast Short / Medium / Long-term Outputs / Outcomes Medium to long term - Establish protocol for national apprenticeship applicants to receive information on local employment opportunities Training at a local level reflects industry need and funding is channelled to those needs supporting business development and employee professionalism. Funding & Costings Reviewing & Monitoring Arrangements Review available qualifications and full time courses as to their suitability to meet employer and industry needs Funding bodies to fund short courses for established employees to help them keep their skills up to dates Develop training delivery to meet industry needs. Encourage Learning Providers to commit teaching staff CPD and investment in capital equipment Skills level of training delivery staff increases as a direct result of Train the Trainer programmes keeping pace with employer needs. Funding bodies to fund short courses for adults Integrate all above initiatives with Skills Passport solution Review available qualifications and full time courses Page 29 of 70 November 2006 Evidence (demand and supply) Sub-sectors & Occupations Likely to be Affected Desired Impact of Change, Improvement or Activity Employers Involved and Actions to be Taken apprenticeship programmes for adults to attract adults into the industry. Work with UK Skills and SkillAuto to raise profile and build infrastructure for skills competitions in the run-up to London 2011. Stage 3 – Gap Analysis & Market Testing Stakeholder Involved and Actions to be Taken as to their suitability to meet employer and industry needs Timescales Forecast Short / Medium / Long-term Outputs / Outcomes Collaborate with sector employers on development of Centre(s) of Excellence or similar quality model – working with Performance Engineering Training Consortium Long Term Establish national coverage of “Employer Friendly Learning Providers” Long Term Establish methodology to support/fund local training provision to meet employer needs (via collaborative working). Page 30 of 70 Funding & Costings Reviewing & Monitoring Arrangements Establishment of Centre(s) of Technical Excellence for Wales (or similar model) Infrastructure for automotive competitions in place; profile raised of technical skills in the motor industry. 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 prerequisite to underpin more specific skills sets noted elsewhere in this report. Evidence (demand and supply) 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. 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. However, the employer focus is on addressing employees’ practical expertise and specific business needs not on qualifications. Stage 3 – Gap Analysis & Market Testing Desired Impact of Change, Improvement or Activity Improved access to flexible and modular bite-size provision for practical training 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 employers Employers Involved and Actions to be Taken Dealer groups, independent dealers, roadside recovery operators, fast fit outlets, bodyshops, and trade associations – 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 – inc. Business Improvement Techniques (BIT) Stakeholder Involved and Actions to be Taken Welsh Assembly Government Departments: DELLS. DEIN, Quals, Learndirect Timescales Forecast Short / Medium / Long-term Outputs / Outcomes Short term Work with Learndirect 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 decisions) Case study examples of SME & Micro employers gaining business benefit from generic skills enhancement. Funding & Costings Reviewing & Monitoring Arrangements To be defined through discussion with employers, providers and stakeholders 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 (HIE project??) Training for SME employers to improve business planning – training budgets Streamlined delivery and marketing of generic skills provision to reduce employer confusion about provision and Funding support for modular courses which do not directly lead to qualifications – address employer need for business solution not for Page 31 of 70 November 2006 Evidence (demand and supply) Sub-sectors & Occupations Likely to be Affected Desired Impact of Change, Improvement or Activity Employers Involved and Actions to be Taken and team working Develop a toolkit with employers to promote use of Training Plan and Budget within context of improved business planning. 4.3.2 Stakeholder Involved and Actions to be Taken qualifications. Timescales Forecast Short / Medium / Long-term Outputs / Outcomes Funding & Costings Reviewing & Monitoring Arrangements funding Funding to develop Training Plan toolkit to develop SME capability for business planning for Training Plans and budgeting Medium Mechanism to support employers in making effective decisions about purchasing training ) Integrate generic skills training (inc. bite-size modular training that does not attract formal qualifications) into Skills Passport solution. 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 is an opportunity for this to be supported through the effective use of a Customer Service Toolkit Evidence (demand and supply) 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 Stage 3 – Gap Analysis & Market Testing Employers Involved and Actions to be Taken Employers to use Customer Service Toolkit as best practice for all customer-facing staff Commitment to standards 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 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 Page 32 of 70 Funding & Costings Reviewing & Monitoring Arrangements November 2006 Evidence (demand and supply) Sub-sectors & Occupations Likely to be Affected Desired Impact of Change, Improvement or Activity employers across the sector – entry point to CPD and ‘learning organisations’ through generic skills Employers Involved and Actions to be Taken development to contextualise existing Customer Service units to ensure fit for purpose in sector Stakeholder Involved and Actions to be Taken recognised by formal qualifications) Funding for the accreditation of customer service Work with larger dealer groups and “soft franchises” Timescales Forecast Short / Medium / Long-term Outputs / Outcomes Funding & Costings Reviewing & Monitoring Arrangements Target number of employers using Toolkit application – e.g. 2 independent repairer networks Employers to implement incentive bonus schemes based on customer service measures (not sales volumes) Stage 3 – Gap Analysis & Market Testing Improved assessment techniques used in the industry. Learning providers develop their skills of assessment. Employers to recognise Skills Passport as a minimum requirement of employment (and an accepted measure for customer handling skills) Employers implement CPD programmes for women employees. More women join the industry. Career ladder put in place for women. Develop competencebased forms of assessment that can be used by employees to help them develop their problem solving and customer service skills by reflecting on how their actions impact on the Awarding bodies to develop units that can be credit rated so they can be used in qualifications. Medium Awarding bodies to develop innovative forms of assessment that assesses occupational competence. 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 Awarding body ‘buy-in’ to Skills Passport Assess effectiveness of Women into Work project with SSDA. Page 33 of 70 November 2006 Evidence (demand and supply) 4.3.3 Sub-sectors & Occupations Likely to be Affected Desired Impact of Change, Improvement or Activity Employers Involved and Actions to be Taken workplace. Stakeholder Involved and Actions to be Taken Timescales Forecast Short / Medium / Long-term Outputs / Outcomes Funding & Costings Reviewing & Monitoring Arrangements Legislation Trading Standards have identified shortfalls in employer knowledge of consumer and employment law which need to be addressed in parallel with customer service skills Evidence (demand and supply) 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. Creation of website that offers advice and guidance on legislative issues. Stage 3 – Gap Analysis & Market Testing Employers Involved and Actions to be Taken Dealer groups, independent dealers, fast fit outlets, bodyshops, and trade associations – focus on Micro and SME business employers. Establish working groups with SME & Micro 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) Stakeholder Involved and Actions to be Taken Welsh Assembly Government Departments: DELLS. DEIN, Quals, and Trading Standards Timescales Forecast Short / Medium / Long-term Outputs / Outcomes Short Term Explore funding and collaborative work with Trading Standards to develop a programme that enhances employers’ knowledge of consumer legislation to deliver enhanced customer service and reduce number of complaints from customers in the sector. Programme of employer workshops held jointly with Trading Standards to provide employers with enhanced knowledge of legal requirements. Funding & Costings Reviewing & Monitoring Arrangements To be defined through discussion with employers, providers and stakeholders To be defined through discussion with employers, providers and stakeholders Reduction in number of consumer complaints to H&I Trading Standards Improved customer satisfaction measures for businesses in sector Work with and seek advice from the Federation of Small Businesses Page 34 of 70 November 2006 Evidence (demand and supply) Sub-sectors & Occupations Likely to be Affected Desired Impact of Change, Improvement or Activity Employers Involved and Actions to be Taken Stakeholder Involved and Actions to be Taken on strategic approach. Timescales Forecast Short / Medium / Long-term Outputs / Outcomes Funding & Costings Reviewing & Monitoring Arrangements Provide links to websites with FSBs and FDA. 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 and supply) 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. These underpin the effectiveness of recruitment, staff development and ultimately the effectiveness in their job roles. Desired Impact of Change, Improvement or Activity Improvements to school curriculum at all levels (not just 14-19?) Learning programmes to include a range of technical, basic, generic skills 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). Closer collaboration between employers and providers to evaluate scope of issue and remedial action Employers to assess the basic Stage 3 – Gap Analysis & Market Testing Stakeholder Involved and Actions to be Taken Welsh Assembly Government Departments: DELLS. DEIN, Quals, Learndirect, Job Centre Plus Timescales Forecast Short / Medium / Long-term Outputs / Outcomes Medium to Long Develop approach that integrates with SfBN solution for this cross-cutting theme Funding & Costings Reviewing & Monitoring Arrangements To be defined through discussion with employers, providers and stakeholders To be defined through discussion with employers, providers and stakeholders Stakeholders influencing the school system to develop a collaborative approach to address employer needs Learning providers develop basic skills training packages for employees. Page 35 of 70 November 2006 Evidence (demand and supply) 4.3.5 Sub-sectors & Occupations Likely to be Affected Desired Impact of Change, Improvement or Activity Employers Involved and Actions to be Taken skills of their staff and offer support Stakeholder Involved and Actions to be Taken Timescales Forecast Short / Medium / Long-term Outputs / Outcomes Funding & Costings Reviewing & Monitoring Arrangements Re-implement key skill areas in Apprenticeship Framework 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 key skills areas, which can undermine the effectiveness of learning through apprenticeship programmes – and there is therefore a proposal to re-implement the six key skill areas in the apprenticeship programme. Evidence (demand and supply) 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 All apprentices do Key Skills even if they already have GCSEs Employers understand the purpose of Key Skills and how they can impact on their businesses Stage 3 – Gap Analysis & Market Testing Employers Involved and Actions to be Taken Manufacturers, dealer groups and trade associations Ensure full support in achievement of key skills and greater understanding through supplier consultation Closer collaboration and working relationships with providers Employers develop an understanding of the role of Functional Skills Stakeholder Involved and Actions to be Taken Welsh Assembly Government Departments: DELLS. DEIN, Quals, Learndirect, JCP and Careers Wales Timescales Forecast Short / Medium / Long-term Outputs / Outcomes Medium Term Customer satisfaction improves (CSI scores rise ad number of Trading Standards complaints reduced) 3-5 years Diversion of funding to support mandatory units Funding & Costings Reviewing & Monitoring Arrangements To be defined through discussion with employers, providers and stakeholders To be defined through discussion with employers, providers and stakeholders NCC threat of ‘Supercomplaint’ is permanently withdrawn Providers to lose funding if performance does not reach acceptable levels Increase in profitability Awarding Bodies develop assessment systems that are fit for purpose. Page 36 of 70 November 2006 4.3.6 Implement functional / key skills within Work Focussed Learning Pathways. As noted in Section 3.5 above, employers have noted that trainees appear to be lacking in key skills areas, which can undermine the effectiveness of learning through apprenticeship programmes – and there is therefore a proposal to implement the six key skill areas in the Work Focussed Learning Pathway programme. Evidence (demand and supply) 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 technical occupations Desired Impact of Change, Improvement or Activity WFLP learners to have greater employability skills Employers Involved and Actions to be Taken Manufacturers, dealer groups and trade associations Stakeholder Involved and Actions to be Taken DELLS, 14-19 networks and schools. Ensure full support of WFLP in achievement of key skills and greater understanding through supplier consultation WFLP entrants to fully recognise the importance of “applied” key skills Closer collaboration and working relationships with providers Stage 3 – Gap Analysis & Market Testing Timescales Forecast Short / Medium / Long-term Outputs / Outcomes Short Term Greater employability skills – increasing the pool of talent to enter industry. 1-2 years Funding & Costings Reviewing & Monitoring Arrangements To be defined through discussion with employers, providers and stakeholders To be defined through discussion with employers, providers and stakeholders Raise calibre of new recruits and address negative perceptions of sector image Partnerships offer a range of Key Skills to Young Apprentices Page 37 of 70 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 and supply) 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. Stage 3 – Gap Analysis & Market Testing 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. Employers Involved and Actions to be Taken Manufacturer (and their retailer networks, large / medium dealer groups, roadside recovery operators, fast fit outlets, independent dealers, bodyshops, and trade associations Stakeholder Involved and Actions to be Taken Welsh Assembly Government Departments: DELLS. DEIN, Quals, Learndirect, Careers Wales and JCP, PETC Work with employers to build on existing Automotive Skills careers resources and enhance context for Wales. Work with Careers Wales, Learndirect and Job Centre Plus to ensure fully updated IAG material is disseminated (inc. web and helpline mechanisms), as well as CPD for their advisers Continue to raise employer awareness of Promoting Workplace Learning – and work with Work with Welsh Assembly and SfBN on promoting Workplace Learning (inc. web-based approach) Timescales Forecast Short / Medium / Long-term Outputs / Outcomes Short to Medium term activity Page 38 of 70 Ongoing update and enhancement of careers material – based on robust research and user feedback. Funding & Costings Reviewing & Monitoring Arrangements To be defined through discussion with employers, providers and stakeholders 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 and supply) Sub-sectors & Occupations Likely to be Affected Desired Impact of Change, Improvement or Activity Culture change 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 employers across Wales Facilitate collaborative project between employer(s) and JC+ Stakeholder Involved and Actions to be Taken HEIs to work with industry to offer work placements Timescales Forecast Short / Medium / Long-term Outputs / Outcomes Employers to visit schools, colleges and Universities to explain how the industry works and what opportunities exist within it. Mechanism established for ongoing briefing and CPD for adviser staff with job Centre Plus, Learndirect and Careers Wales. Facilitate collaborative project between employer(s) and JC+ Medium / Long Establish ongoing working partnerships between Job Centre Plus and larger employers (e.g. dealer groups) Coherent and collaborative promotion of the sector led by Automotive Skills with the support of the major employers and industry Pledge by major employers and stakeholders (e.g. trade associations, and dealer groups) to link to and Stage 3 – Gap Analysis & Market Testing Reviewing & Monitoring Arrangements Medium/ Long Employer commitment to 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. Employers to offer University students work experience placements. Funding & Costings Page 39 of 70 November 2006 Evidence (demand and supply) Sub-sectors & Occupations Likely to be Affected Desired Impact of Change, Improvement or Activity Employers Involved and Actions to be Taken support Automotive Skills’ industry career promotion. Employer support to set up a ‘clearing house’ to ensure applicants rejected by popular programmes are kept in the system – and can be rerouted to less popular programmes. Facilitate collaborative project between employer(s) and JC+ Stakeholder Involved and Actions to be Taken Timescales Forecast Short / Medium / Long-term Outputs / Outcomes Reviewing & Monitoring Arrangements stakeholders. Medium / Long Funding (DfES and/or WAG for research into the impact of IAG on influencers (short term) – measure against baseline of activity Re-visit the Sector Attitude and Image research to identify whether there has been any progress in addressing the issue; identify most appropriate media and target audience for our activity. Funding from SSDA for additional sector attractiveness research Clearing house ensures talented potential apprentices are made aware of less popular apprentice programmes and not lost to another sector. Employer commitment to implement template for addressing language barriers for migrant workers (apply lessons learnt from Health & Safety for employers in the Construction industry) Stage 3 – Gap Analysis & Market Testing Funding & Costings Page 40 of 70 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 and supply) 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 profiles Stage 3 – Gap Analysis & Market Testing Employers Involved and Actions to be Taken Manufacturer and their retailer networks, large / medium dealer groups, roadside recovery operators, fast fit outlets, independent dealers, bodyshops, and trade associations. Stakeholder Involved and Actions to be Taken Welsh Assembly Government Departments: DELLS. DEIN, Quals, Learndirect, Careers Wales, JCP, PETC. Establish working group to build on the success of Promoting Workplace Learning to identify case study, or example, Career Pathways that can be used as basis for promotional activity (e.g. DVD or web-based) Identify funding and collaboration with key partners to build on WFLP and other extended work experience to promote Career Pathways, working within 14-19 learning pathways development and also for development of a ‘training plan toolkit’ Closely involve Welsh employers in working groups for development of Sector Qualification Work with DELLS – alongside Welsh employers - to develop a robust Sector Timescales Forecast Short / Medium / Long-term Outputs / Outcomes Short Medium Short / Medium Sector Qualification Strategy to consolidate and clarify potential career opportunities and progression pathways Funding & Costings Reviewing & Monitoring Arrangements To be defined through discussion with employers, providers and stakeholders To be defined through discussion with employers, providers and stakeholders Integrate SQS with Skills Passport solution 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. Occupational profiles inform career guidance (based on competency Page 41 of 70 November 2006 Evidence (demand and supply) Sub-sectors & Occupations Likely to be Affected Desired Impact of Change, Improvement or Activity Employers Involved and Actions to be Taken Strategy to ensure relevance to Welsh employers Develop a ‘Training and Retention Plan toolkit’ that can enable employers to have a more effective approach to becoming learning organisations Employers to commit to roll out of Skills Passport to underpin CPD 4.4.3 Stakeholder Involved and Actions to be Taken Qualification Strategy that is appropriate for Wales Timescales Forecast Short / Medium / Long-term Outputs / Outcomes Funding & Costings Reviewing & Monitoring Arrangements profiling) and also provide a basis for contracting for revenuegenerating activity – writing of careers materials. Develop occupational profiles as part of the SQS, demonstrating clearly job opportunities and career progression; profile competencies as well as qualifications. A toolkit to provide support for employers to develop effective training plans and budgets 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 and supply) Research has highlighted that there is a significant gender imbalance across the sector – only one fifth of employees are female. Sub-sectors & Occupations Likely to be Affected Applies to all subsectors and occupations. Feedback from employers and Stage 3 – Gap Analysis & Market Testing 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 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 Stakeholder Involved and Actions to be Taken Welsh Assembly Government Departments: DELLS. DEIN, Quals, Learndirect, Careers Wales, SSDA and JCP Timescales Forecast Short / Medium / Long-term Outputs / Outcomes Medium to Long term Collaboration with employers to identify joint activities within the Enhanced IAG with balanced message for potential female recruits – using high profile case studies Funding & Costings Reviewing & Monitoring Arrangements To be defined through discussion with employers, providers and stakeholders To be defined through discussion with employers, providers and stakeholders Raise profile and attractiveness of sector for female Page 42 of 70 November 2006 Evidence (demand and supply) Sub-sectors & Occupations Likely to be Affected 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. Desired Impact of Change, Improvement or Activity and shortages Long term culture change towards more positive attitudes around opportunities for female entrants to the sector Employers Involved and Actions to be Taken operators, and trade associations. Stakeholder Involved and Actions to be Taken SSDA ‘Women into Work’ initiative 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 Employers to adopt a more flexible approach to recruitment practices, through work with stakeholders such as JobCentre Plus in order to attract a more diverse workforce Encourage employers to take part in the Women into Work Project Stage 3 – Gap Analysis & Market Testing Timescales Forecast Short / Medium / Long-term Outputs / Outcomes Funding & Costings Reviewing & Monitoring Arrangements entrants. More positive cultural environment for female staff reflected in Sector Attitude and Image surveys. Work with JobCentre Plus to encourage broader recruitment into the sector and develop more innovative solutions to skills shortages Link to the ‘Step into ARMS’ solution – possibly for female returners to work Link to Skills Passport solution – particularly for migrant workers Funding for older trainees (inc. apprenticeships) could support improvement in retention and completion rates over medium term (2 years) Funding for awarding bodies to support work on mapping migrant worker qualifications to UK qualifications, and integrate into the Skills Passport solution Funding for training of older worker above current threshold of 25 – need to encourage and support career ‘changers’ & ‘returners’ Page 43 of 70 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 and supply) Research has highlighted a relatively poor level of management qualification across the sector (Only 14% of managers in sector have NVQ Level 4+, and 16% have no qualification at all) Sub-sectors & Occupations Likely to be Affected Applies to all subsectors, and potentially all occupations. 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 highly valued. It has also been noted that experienced professionals Stage 3 – Gap Analysis & Market Testing Desired Impact of Change, Improvement or Activity Increased number of graduates employed across the sector – with increased percentage of managers with NVQ Level 4 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 by graduates and those outside the sector of management and executive career paths available in Employers Involved and Actions to be Taken Manufacturer and their retailer networks, large / medium dealer groups, fast fit operators, independent dealers, bodyshops, trade associations Employers to identify potential opportunities for graduates. Promote the career routes available through ‘success stories’ case studies (from both employer’s and individual’s perspective) Employers to implement HR Toolkit and graduate induction work - more effective recruitment & retention of Stakeholder Involved and Actions to be Taken Welsh Assembly Government Departments: ELLS. DEIN, Qual HEFCW Wales Management Council, CareersWales. Work with DELLS and HEFCW and HE Institutions to develop industrycontext provision. Timescales Forecast Short / Medium / Long-term Outputs / Outcomes Short-term – Year 1 – Undergraduate placement programme to be developed with commitment from 5 manufacturer (NSO) and large dealer groups Increased recruitment of graduates into the sector across all sub-activities and occupations – both on leaving HE and as career changers. Medium to Long Re-visit Sector Identify any potential lessons that could be learned from development of Foundation Degrees in England Funding & Costings Reviewing & Monitoring Arrangements To be defined through discussion with employers, providers and stakeholders To be defined through discussion with employers, providers and stakeholders Case studies of graduate success stories to promote opportunity – both for individual and for business benefit Work with HEFCW to develop FD through Wales Work with careers advisors in the HE sector via Quals (through CPD and seminars) to raise profile of sector Page 44 of 70 November 2006 Evidence (demand and supply) Sub-sectors & Occupations Likely to be Affected outside the industry can bring much-needed managerial and other skills to the sector. 4.4.5 Desired Impact of Change, Improvement or Activity our sector. Employers Involved and Actions to be Taken graduates Stakeholder Involved and Actions to be Taken and potential career opportunities Employers to work collaboratively with HE institutions – e.g., project work with Business Schools Identify HE careers information sources and embed quality IAG about sector. Undergraduate placement scheme to be developed with AM Top 30 dealer groups and NSOs – Working with GOWales and HEIs Work with GOWALES and HEIs to encourage employers to take student placements Timescales Forecast Short / Medium / Long-term Outputs / Outcomes term work with employers and stakeholders Attitude and Image research, alongside graduate recruitment research to identify changes in attitude and effectiveness of graduate recruitment. Funding & Costings Reviewing & Monitoring Arrangements 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. 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 and supply) Employers have highlighted issues around life skills affecting new recruits – attitude, consistency, motivation, reliability and Sub-sectors & Occupations Likely to be Affected All sub-sectors and occupations – but especially occupations that are conventional entry points for school leavers Stage 3 – Gap Analysis & Market Testing 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 Employers Involved and Actions to be Taken Dealer groups, roadside recovery operators, fast fit outlets, independent dealers, bodyshops, and key trade Stakeholder Involved and Actions to be Taken Welsh Assembly Government Departments: DELLS. DEIN, Quals, , JCP, Careers Wales Learndirect, 14-19 Timescales Forecast Short / Medium / Long-term Outputs / Outcomes Short term Page 45 of 70 Roll out of WFLP from pilot stage. Continue developed of pathways within 14-19 Learning Pathways . Funding & Costings Reviewing & Monitoring Arrangements To be defined through discussion with employers, providers and stakeholders To be defined through discussion with employers, providers and stakeholders November 2006 Evidence (demand and supply) Sub-sectors & Occupations Likely to be Affected 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. Desired Impact of Change, Improvement or Activity 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 NVQ – raise perceived value of vocational qualifications for employment with employers (and encourage more positive perceptions from parents, peers and teachers) Employers Involved and Actions to be Taken associations (e.g. SMTA). Work with employers to develop a toolkit for schools to make practical linkage with school curriculum Facilitate collaborative project between employer(s) and JC+ Identify opportunities with supportive WFLPs – inc. to identify potential learning from WFLP pilots and Specialised Diplomas in England. Research employer attitudes to NVQ – identify what employers really want (Link to ‘Clearing House’ solution on section 4.1 above) Stage 3 – Gap Analysis & Market Testing Stakeholder Involved and Actions to be Taken networks. Timescales Forecast Short / Medium / Long-term Outputs / Outcomes Funding & Costings Reviewing & Monitoring Arrangements Toolkit for employers and schools to facilitate collaborative work between employers and the 14-19 education sector (schools) – linking work experience and curriculum Facilitate project collaboration between employers in the sector and schools to build on 14-19 Learning Pathways for sector. Continued development of Modern Apprenticeships and WFLP for sector context – work with employers to research what they value from vocational qualifications Medium/Long Term Develop capacity of learning providers to deliver applied learning and work based learning through apprenticeships. Awarding bodies to improve the effectiveness of their external verifiers and issue guidance on assessment and gathering evidence that demonstrates occupational competence. Page 46 of 70 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 and supply) 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): Employers Involved and Actions to be Taken Dealer groups, roadside recovery operators, fast fit outlets, independent dealers, bodyshops, professional bodies and key trade associations Work with the Workforce Development Committee and Employer Forums to: Strand 1 - setting targets and measurements Strand 2 Apprenticeship programme review Strand 3 Improving Stage 3 – Gap Analysis & Market Testing Oversee the quality and content of training and methods of assessment so they have a positive impact on business needs Produce an Stakeholder Involved and Actions to be Taken FE colleges, HE institutions, private providers and manufacturer provision Timescales Forecast Short / Medium / Long-term Outputs / Outcomes Medium to long term Government agencies - (quality improvement and funding and planning bodies), awarding bodies and statutory inspection bodies across the UK. Overarching Improvement in the quality of education and training provision across the sector. Funding & Costings Reviewing & Monitoring Arrangements To be defined through discussion with employers, providers and stakeholders 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. Work with stakeholders to 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 Provision meets employer demands for quality training better meeting their business needs. Employers know where to go for quality training. Improved Page 47 of 70 November 2006 Evidence (demand and supply) Sub-sectors & Occupations Likely to be Affected Desired Impact of Change, Improvement or Activity assessment and QA practice Strand 4 – Quality improvement groups Strand 5 – Quality Driven quality improvement guide Strand 6 – Professional development programme Strand 7 – Teaching & learning products Employers Involved and Actions to be Taken 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 provider network. Timescales Forecast Short / Medium / Long-term Outputs / Outcomes Reviewing & Monitoring Arrangements employer productivity through a better trained, skilled and employable workforce. Make the products and services available through the QIS to provider network. Improved partnership working between providers and employers. Communicate with the provider network the benefits of the products and services available through the strands of the QIS Providers more responsive to needs of employers. Link to Skills Passport solution Strand 8 Automotive Skills Quality Award 4.5.2 Funding & Costings 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 and supply) Employers have expressed concerns around flexibility, consistency and quality of training delivered across the complete range of provision Sub-sectors & Occupations Likely to be Affected Applies to all subsectors and activities. Stage 3 – Gap Analysis & Market Testing 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 Employers Involved and Actions to be Taken Manufacturers and large / medium dealer groups, roadside recovery operators, fast fit outlets, independent dealers, bodyshops, and Stakeholder Involved and Actions to be Taken FE colleges, HE institutions, private providers and manufacturer provision across the UK. Timescales Forecast Short / Medium / Long-term Outputs / Outcomes Medium Implement project plan to establish Centres of Excellence Develop sustainable business plan for the national Government agencies - (quality Page 48 of 70 Funding & Costings Reviewing & Monitoring Arrangements To be defined through discussion with employers, providers and stakeholders To be defined through discussion with employers, providers and stakeholders November 2006 Evidence (demand and supply) Sub-sectors & Occupations Likely to be Affected - FE college, private providers and manufacturer provision. Desired Impact of Change, Improvement or Activity the benefit of employers by: Stage 3 – Gap Analysis & Market Testing Developing employer friendly Centres of Excellence – Wales. Developing a UK-wide ‘Academy for Automotive Skills Employers Involved and Actions to be Taken trade associations. Work on a broad scale with employers and specifically with Employer Forums and the Workforce Development Committee to: Gain support from employers to drive the development of Centres of Excellence Develop a project plan for Centres of Excellence Develop an Expression of Interest for a national ‘Academy for Automotive Skills Stakeholder Involved and Actions to be Taken improvement and funding and planning bodies), awarding bodies and statutory inspection bodies across the UK. Work with stakeholders to: Develop a feasibility study for Centres of Excellence. Develop an Expression of Interest for a national ‘Academy for Automotive Skills. Timescales Forecast Short / Medium / Long-term Outputs / Outcomes Funding & Costings Reviewing & Monitoring Arrangements ‘Academy for Automotive Skills. Long term 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 for more remote and rural employers Page 49 of 70 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 and supply) 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. Sub-sectors & Occupations Likely to be Affected Applies to all subsectors and occupations. Lack of recognition for individual achievement at present – could contribute to image of sector. 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 address issues raised in the National Consumer Council’s 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 Stakeholder Involved and Actions to be Taken Welsh Assembly Government Departments: DELLS. DEIN, Quals, Learndirect, Careers Wales, JCP Agree scope for Skills passport and links with existing employer (and manufacturer) training records Agree scope for access to individual learner accounts and qualification records to ensure that Skills Passport has current record of an individual’s achievements. Develop feasibility and business plan for implementation Employers to recognise Skills Passport as a minimum requirement of employment Employers pay for a Skills Passport for their Timescales Forecast Short / Medium / Long-term Outputs / Outcomes Short – Medium term (1 – 2 years) Commitment from awarding bodies to recognise Skills Passport and link to accredited courses Complete industrywide feasibility study and agree implementation plan. Funding & Costings Reviewing & Monitoring Arrangements To be defined through discussion with employers, providers and stakeholders 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) Develop feasibility and business plan for implementation – work with SSDA and other SSCs to ensure cost effective solution is developed (and Page 50 of 70 November 2006 Evidence (demand and supply) Sub-sectors & Occupations Likely to be Affected Desired Impact of Change, Improvement or Activity threatened ‘Supercomplaint Employers Involved and Actions to be Taken apprentices. Stakeholder Involved and Actions to be Taken 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 Stage 3 – Gap Analysis & Market Testing Page 51 of 70 November 2006 5 5.1 Overall Review & Monitoring Arrangements 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 finalized 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 Welsh 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. 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. Stage 3 – Gap Analysis & Market Testing Page 52 of 70 November 2006 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 finalized in the published SSA. Stage 3 – Gap Analysis & Market Testing Page 53 of 70 November 2006 Appendices Appendix 1: Gaps in Provision Work Based Learning Enrolments: Wales Figure 8: Work based Learning Enrollments - Wales Region WBL Retail Automotive Enrolments per Enrolments Sector Sites 100 sites Wales 1,262 3,580 35.3 Population Enrolments per 100,000 population 2,903,085 43.5 Sources: WBL Enrolments: ELWa: WBL Enrolments Statistics 2003/04 Automotive Sites: Automotive Skills / Simpson and Carpenter: Automotive Sector Research Database 2005 Population Figures: Census 2001 In Wales, a wider range of qualifications are included in the WBL statistics than in the other home nations, including distance and online learning. This needs to be considered when assessing the statistics. In total there were an average of 35.3 WBL enrolments per 100 retail automotive sites and 43.5 per 100,000 people in Wales. As with the Scottish data, these figures are notably higher than those for England. Further Education Enrolments: Wales Figure 9: Further Education Enrolments - Wales Country FE Retail Automotive Enrolments per Sector Sites 100 sites Enrolments Wales 4,439 3,580 124.0 Population Enrolments per 100,000 population 2,903,085 152.9 Sources: FE Enrolments (Wales): ELWa, FE New Starts, 2003/04 Automotive Sites: Automotive Skills / Simpson and Carpenter: Automotive Sector Research Database 2005 Population Figures: Census 2001 In Wales, a wider range of courses are included in the Further Education statistics, including distance and online learning. This again leads to high comparative ratios in relation to both the number of retail automotive sector sites and per head of population; 124.0 and 152.9 respectively. Gap Analysis & Market Testing Page 54 of 70 November 2006 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 10: Higher Education Courses Retail Region Courses Automotive Sector Sites Courses per 100 sites 2 Area (km ) Courses per 1000 km 2 East Midlands 328 5,151 6.4 15,627 21.0 East of England 455 8,036 5.7 19,126 23.8 London 209 4,934 4.2 1,574 132.8 North East 0 2,631 0.0 8,592 0.0 North West 167 8,194 2.0 14,163 11.8 0 1,822 0.0 14,150 0.0 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 2,497 65,240 3.8 244,169 10.3 Northern Ireland Scotland UK Sources: 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 H.E. courses available, with 8.6 courses for every 100 retail automotive sites. The next largest choice of H.E. 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. 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 H.E. training provision. A lower figure indicates that individuals/employees would have to travel a longer distance. Gap Analysis & Market Testing Page 55 of 70 November 2006 Appendix 2: United Kingdom SWOT Analysis This section of the report is divided into five separate SWOT analyses. Firstly, an overall SWOT for the United Kingdom as a whole, followed by a specific SWOT for each of the home nations. These individual country reports should be read in conjunction with the UK summary as the overall strengths, weakness, opportunities and threats may still exist within each country. 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 56 of 70 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 ( ESTYN, 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 • The employment of individuals from other sectors who have transferable skills is limited Gap Analysis & Market Testing Page 57 of 70 November 2006 • 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 • 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 Gap Analysis & Market Testing Page 58 of 70 November 2006 • 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) 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 o Improved provision for the able and the motivated, with options including enhanced work promotional material experience activities and pre-apprenticeships Gap Analysis & Market Testing Page 59 of 70 November 2006 • 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 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 Gap Analysis & Market Testing Page 60 of 70 November 2006 • 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 • 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 Gap Analysis & Market Testing Page 61 of 70 November 2006 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 • 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 Gap Analysis & Market Testing Page 62 of 70 November 2006 Appendix 3: SWOT Analysis – Overview Figure 11: SWOT Analysis - Overview STRENGTHS WEAKNESSES Sector Characteristics Sector Characteristics Sector employs approximately 2% of the working Net margins/profitability in the sector are low population Many sub-sectors require very high levels of capital Significant potential and strong productivity in investment; training not always a priority comparison to European comparator counties Tendency to focus on jobs rather than careers Remuneration Workforce Stability in the rural workforce Apprenticeships are a common and valued route Poor image and reputation of certain sub-sectors Positive aspects not promoted by careers advisers Limited recruitment of individuals from other sectors Sector has a distinct gender imbalance Over 88% of employers able to articulate strategy Significant proportion of employers report hard to fill for identifying training needs vacancies; rural employers in particular Over 94% of employers either satisfied or very Particular satisfied with impact of training on performance technicians/mechanics Only 6.4% of employers feel that there is no link Workforce between training and business performance High level of staff turnover, typically 25% per annum Qualifications and Provision are Low level of graduate recruitment Training spend per employee receiving training above the all sector average occupations leavers Employees aged 16-24 are more likely to receive training than the all sector average most Sector often acts as a repository for less able school within the sector in Recruitment Training levels depressed difficulties in recruiting Lowest proportion of Level 4 qualified managers of 14 NVQs/SVQs over three levels covering each any sector; 16% of managers have no qualifications sub-sector of the industry Promotion to management and leadership roles not Training in Key or Core Skills also offered accompanied by training Technical certificates developed for Predominance apprenticeships ARMS has been developed for managers and ‘blame culture’ in many Difficult to recruit individuals with required level of Generic skills in short supply amongst existing A high number of Level 3 qualifications Range of technical courses is believed to be employees and new recruits adequate to meet the needs of the sector a technical skills potential managers of enterprises Standard of literacy and numeracy is often poor Employability/life skills lacking within the sector’s Large employer input into course design is felt to workforce be significant Internal skills gaps most common amongst skilled Public funded training provision within the UK has trades occupations, followed by sales and customer received good inspection grades service staff Training Comparatively small proportion of employers have a Business Plan or Strategy, a Training Plan and a specific budget for training; with smaller employers much less likely to have any of these Gap Analysis & Market Testing Page 63 of 70 November 2006 10% fewer businesses in the sector (54%) provide training for their employees than the UK average Female employees significantly less likely to receive training Employers find it difficult to access training in a manner which is not disruptive to their business Direct and indirect costs of training act as a barrier to uptake NVQs/SVQs are perceived negatively by some employers A need for a closer partnership between training providers and employers Engagement is made difficult by a lack of interest among many employers Employers are often reluctant to use the same training provider as a rival firm Qualifications and Provision Provision of qualifications above Level 3 is comparatively sparse Gap in vocational training funding for the over 19s Concerns about declining levels of funding for FE Structure of provision and funding of courses is confusing for employers Concern that some training 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 introduction of been reduced competition by the between colleges in the FE sector OPPORTUNITIES THREATS Sector Characteristics Larger businesses Sector Characteristics are acquiring smaller counterparts; more likely to interact with Automotive Levels of investment required to operate in the sector are increasing Skills and offer training investment in training sector may increase the power of employers in the sector Gap Analysis & Market Testing Page 64 of 70 Potential that low net margins could continue to have a negative impact on Consolidation of the number of businesses in the Manufacturers putting pressure on the November 2006 Recruitment downside supply chain to cut costs Poor/negative image of the sector can be addressed, perhaps by the creation of Industry skills demands which the sector is unable Ambassadors and by the activities of Automotive to meet Skills Opportunities exist to improve the image amongst Multination ownership of major employers Longer service intervals and increased o The targeting of formal influencers such reliability of new vehicles may impact upon as Careers Advisors the servicing and repair sector The targeting of informal influencers such types; a singular approach is likely to be Improved work experience activities and o pre-apprenticeships unsuccessful Recruitment Skills gaps can also be addressed by a wider sourcing of employees, including: Actions to address the gender imbalance delivery of courses to reduce disruption extensive skills gaps A danger that management culture will remain function orientated and short-termist New methods of learning to enable employers in A danger that employers will be unable to keep up remote areas to access training, i.e. e-learning with the pace of technological change and its More effective communication of value to associated training demands employers A danger that the school educational system On the job up-skilling could be improved by continues to fail to equip young people with the core promoting ‘train-the-trainer’ courses skills required Qualifications and Provision 30% of the workforce will need to be creating the danger of further and more Make training more attractive for employers by offering modular, building block and bite-sized Low pay and poor working conditions could replaced during the period 2004-2014, Training Increased numbers of young people being Workforce A Skills Passport would enable the qualifications and competencies of individuals to be recorded. could attract high quality employees Workforce employers continue to hamper the sector’s ability to their career within the sector can develop ‘rogue’ guided towards Higher Education Create career pathways to enable new entrants and the existing workforce to gain a vision of how of the whole sector sectors o Activities continue to tarnish the image/reputation of The recruitment of individuals from other o Solutions to skills deficiencies need to be tailored to meet the needs of all business as parents, guardians and relatives National Activities to inform the school curriculum introduction of o o The potential ‘Super-Complaints’ the 14-16 age group, including: Rapid technological changes could create A danger that the sector will continue to only attract Actions to address inadequacies in management individuals with lower level core skills and leadership (ARMS Level 3 (‘Step Into ARMS’) Training and Level 4 As a result of the retirement of many of the more The creation of a Sector Qualifications Strategy will highly skilled individuals the ability to offer on-the-job offer the opportunity to only retain support for training internally may decrease courses which meet the needs of employers Qualifications and Provision Need for a single authoritative information point Expectation that the number of training and recognised approval system for training providers will decline over the next 5-10 provision years Formation of a virtual Skills Academy could offer the opportunity to disseminate best practice Gap Analysis & Market Testing Page 65 of 70 A danger that the cost of providing training for certain sub-sectors becomes November 2006 prohibitively expensive Employers continue to be sceptical of the value of NVQs/SVQ and new qualifications are not embraced Solutions Mapped to Welsh National Priorities The outline draft solutions suggested in this Stage 3 report will be mapped to national Welsh priorities outlined in relevant policy documents. This will be detailed in the final Stage 5 reports in conjunction with the final agreed action plans. Gap Analysis & Market Testing Page 66 of 70 November 2006 Appendix 4: Welsh Stakeholders Engaged During the SSA process The following table lists partner organizations 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 Welsh policy agenda to create synergistic outcomes. Automotive Skills looks forward to continuing to work closely with all our partners and stakeholders in Wales. Figure 12: Stakeholders engaged during the SSA process Welsh Assembly Government – Department for Education, Lifelong Learning, and 1 Skills 2 Welsh Assembly Government – Skills and Employability Division 3 Careers Wales Gap Analysis & Market Testing Page 67 of 70 November 2006 References ‘August profitability levels set the scene for final quarter’ Motortrader, p10, 23rd October 2006 A.M. Top 100, December 2005. AM Magazine, 2006. ‘Fairer deals for women workers’. AM Online, 17th March 2006. Rising land values and rent costs hit retailers. AM Online, December 2005. Dealers hit by troubled consumer finances. AM Online, May 2006. Location Clause is no more. Did the earth move for anyone? AM Online, October 2005. Automotive Skills Needs Survey, Automotive Skills, 2005. Automotive Skills Employer Validation Survey. Automotive Skills, 2005. Bodyshop Sub-Sector Research. Automotive Skills Ltd, July 2005 Graduate and Extra-Sector Experience Research, Automotive Skills, January 2005. 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