Automotivate The Sector Skills Agreement for the Downstream Motor Industry Sector Skills Agreement – Stage 3 Gap Analysis and Market Testing Northern Ireland 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 73 November 2006 Contents PREFACE ...................................................................................................................................... 4 1 INTRODUCTION..................................................................................................................... 5 2 EXECUTIVE SUMMARY ........................................................................................................ 6 3 THE EVIDENCE.................................................................................................................... 10 3.1 SKILLS NEEDS .................................................................................................................. 10 3.1.1 The Sector .............................................................................................................. 10 3.1.2 Geodemographics .................................................................................................. 10 3.1.3 Workforce Profile .................................................................................................... 11 3.1.4 Skills Categories ..................................................................................................... 11 3.1.4.1 3.1.4.2 3.1.4.3 3.1.4.4 3.1.5 3.1.5.1 3.1.5.2 3.1.5.3 3.1.5.4 Employability Skills ........................................................................................................... 11 Basic Skills ....................................................................................................................... 11 Generic Skills.................................................................................................................... 12 Technical Skills................................................................................................................. 12 Approach to Employer Engagement....................................................................... 13 Published Reports ............................................................................................................ 13 Roadshow Debates .......................................................................................................... 13 Bi-lateral Discussions ....................................................................................................... 13 Employer Depth Engagement .......................................................................................... 13 3.1.6 Employer Depth Engagement................................................................................. 14 3.1.7 Engagement Strategy for Stages 4 and 5 .............................................................. 15 3.1.8 Approach to Communication, Discussion and Evaluation...................................... 15 3.2 SUPPLY-SIDE EVALUATION ............................................................................................... 17 3.2.1 SWOT Analysis – Northern Ireland ........................................................................ 17 3.2.2 Geographic Context................................................................................................ 18 3.2.3 Changes to Provision by Skills Category................................................................ 19 3.2.3.1 3.2.3.2 3.2.3.3 3.2.3.4 3.2.3.5 3.2.4 3.2.5 4 Employability Skills ........................................................................................................... 19 Basic Skills ....................................................................................................................... 19 Generic Skills.................................................................................................................... 20 Technical Skills................................................................................................................. 20 Management and Leadership Skills.................................................................................. 21 Approach to Supply-Side Consultation................................................................... 21 Balance of Evidence – the Learner Input ............................................................... 21 PROPOSED COLLABORATIVE SOLUTIONS.................................................................... 23 4.1 MANAGEMENT & LEADERSHIP ........................................................................................... 23 4.1.1 First-line Management Skills................................................................................... 23 4.1.2 Higher Level Management Skills ............................................................................ 25 4.1 TECHNICAL SKILLS ........................................................................................................... 27 4.1.3 Raising Technical Skills Capacity and Capability ................................................... 27 4.2 GENERIC SKILLS .............................................................................................................. 31 4.2.1 Generic Skills.......................................................................................................... 31 4.2.2 Generic Skills - customer service ........................................................................... 33 4.2.3 Legislation............................................................................................................... 35 4.2.4 Basic skills .............................................................................................................. 37 4.2.5 Key Skills/Essential Skills ....................................................................................... 38 4.3 BALANCED WORKFORCE................................................................................................... 39 4.3.1 Sector Attractiveness – Bringing a wider range of people into the sector.............. 39 4.3.2 Career Pathways to be more clearly identified and promoted................................ 43 4.3.3 Achieving a Balanced Workforce............................................................................ 45 4.3.4 High Calibre and Extra-Sector Recruitment ........................................................... 47 4.3.5 Employability........................................................................................................... 49 4.4 STRATEGIC OVER-ARCHING SOLUTIONS ............................................................................ 51 4.4.1 Developing Quality Education and Training Provision (1) - Quality Improvement Strategy 51 Stage 3 – Gap Analysis & Market Testing Page 2 of 73 November 2006 4.4.2 4.4.3 5 Developing Quality Education and Training Provision (2) –Centres of Excellence 53 Skills Passport ........................................................................................................ 54 OVERALL REVIEWING & MONITORING ARRANGEMENTS ........................................... 56 5.1 5.2 5.3 GENERAL ......................................................................................................................... 56 CHECKPOINT REVIEW ....................................................................................................... 56 SPECIFIC REVIEWING AND MONITORING ............................................................................ 57 APPENDICES .............................................................................................................................. 58 APPENDIX 1: GAPS IN PROVISION ................................................................................................. 58 Work Based Learning Enrolments: Northern Ireland ............................................................ 58 Further Education Enrolments: Northern Ireland .................................................................. 58 Higher Education................................................................................................................... 58 APPENDIX 2: UNITED KINGDOM SWOT ANALYSIS ......................................................................... 60 Strengths ............................................................................................................................... 60 Weaknesses.......................................................................................................................... 61 Opportunities ......................................................................................................................... 63 Threats .................................................................................................................................. 65 Solutions Mapped to Northern Irish National Priorities ......................................................... 66 APPENDIX 4: NORTHERN IRELAND SECTOR SKILLS AGREEMENT STAGES 1, 2 AND 3 REPORTS BACKGROUND TO EVIDENCE GATHERING IN NORTHERN IRELAND .................................................. 67 METHODOLOGICAL OVERVIEW ..................................................................................................... 67 Stage 1 .................................................................................................................................. 67 Stage 2 .................................................................................................................................. 67 Stage 3 .................................................................................................................................. 68 EMPLOYERS FORUM .................................................................................................................... 68 EMPLOYER CENSUS .................................................................................................................... 68 STAGES 4 AND 5 AND BEYOND ..................................................................................................... 69 APPENDIX 5: NORTHERN IRISH STAKEHOLDERS ENGAGED DURING THE SSA PROCESS .................. 70 REFERENCES ............................................................................................................................. 71 List of figures FIGURE 1: ENTERPRISE SKILLS FOCUS TYPOLOGY ........................................................................... 14 FIGURE 2: SWOT ANALYSIS ........................................................................................................... 17 FIGURE 3: FURTHER EDUCATION ENROLMENTS ............................................................................... 58 FIGURE 4: HIGHER EDUCATION COURSES ACROSS THE UK.............................................................. 59 FIGURE 5: STAKEHOLDERS ENGAGED DURING SSA PROCESS ......................................................... 70 Stage 3 – Gap Analysis & Market Testing Page 3 of 73 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 4 of 73 November 2006 1 Introduction This report forms part of the 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 Northern Ireland and there are separate reports for each of the other home nations and the UK as a whole. 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 Northern Ireland. This report outlines the agreement of what the skills needs of the sector are and provides a series of solutions that form the basis of the draft action plans contained herein. Priorities for action have been agreed and set, and at the time of writing negotiations with some employers and key partners are already underway as the SSA moves into Stages 4 and 5. The draft action plans flag up indications of where contributions to the SSA can be expected to be derived from prior to the firmer commitments to action that will be negotiated through Stages 4 and 5. The contents of this report also include the results of the gap analysis and market testing activities carried out as part of Stage 3. The fundamental purpose of this report is to stimulate discussion between interested parties to ensure that the negotiation phases are informed and productive with a mutually beneficial and synergistic outcome. For this reason, the 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 5 of 73 November 2006 2 Executive Summary The automotive sector downstream of the factory gate, with its annual turnover of £3.19bn and a GVA of £478m, is a far more significant contributor to the Northern Irish economy than is generally realised. Just over 17,000 employees directly depend on the sector and its 2,000 enterprises in Northern Ireland are inextricably linked along the supply chain to major global automotive manufacturing businesses. The sector enjoys low profitability, pay levels are subdued, the business outlook is often shortterm in the light of which workforce development is a challenge for a great many employers. Progressive consolidation and concentration has been a feature of the sector since the 1960s and continues at a pace as product technological complexity increases demand for capital expenditure. Employers with predominantly urban or predominantly rural market environments face differing employee and customer dynamics that impact on recruitment and retention as well as pay and training. Although there has been a long standing focus on technical occupations within the sector they actually account for only about a quarter of all positions. There are many widely differing roles across the footprint, which are equally requiring development. When looking at skills gaps and shortages five main categories have been identified from Stages 1 and 2 through the gap analysis: • Management & Leaderships Skills • Employability Skills • Basic Skills • Generic Skills • Technical Skills As part of Stage 3, Automotive Skills has employed a wide range of engagement techniques with employers to review the outputs of the first two stages, the gaps between needs and provision and the potential solutions. The draft action plan solutions need to be seen in the context of a dichotomy of broadly aligned employers who can be categorised as “Survivors” or “Aspirers” according to a range of Stage 3 – Gap Analysis & Market Testing Page 6 of 73 November 2006 characteristics. Differing solutions will have differing applications to these two main groups of employers depending on their needs. The SWOT analysis identified some key issues for the sector, which are summarised below: • Strengths (internal) include; • Significant contribution of sector to the economy • Relatively immune from (cheap) foreign competition • Strong supply chain supports training and development • Continuing consolidation supports increased professionalism and workforce development opportunities • • • • Significant existing training in technical skills to be built on • Widespread sector employer recognition of benefits of improved skills • Wide variety of success project initiatives support skills • Improving IAG support for sector Weaknesses (internal) include; • Depressed profitability • High capital investment requirements • Constant pressure on training budgets • Non-aspirational sector image and reputation • Gender imbalance • Internalised recruitment tendency • Low managerial qualification penetration • Widespread concerns about the quality of training Opportunities (external) include; • Sector Skills Agreement • 14-19 agenda initiatives will help encourage higher calibre to join sector • Changes to Block Exemption Regulation • Wide range of potential employees with transferable skills • Increasing volumes of HE qualified leavers • Increasingly responsive delivery of training and development • Engaged public sectors skills and workforce development organisations and institutions Threats (external) include; • Sector not a priority in any home nation or English region • Supply chain pressures (including acquisition and/or control) Stage 3 – Gap Analysis & Market Testing Page 7 of 73 November 2006 • Changes to Block Exemption Regulation • Pace/type of product technological change • Ever increasing consumer/customer expectations • Increasing legislative controls • Political response to climate change (CO2 issues) • Social changes to purchase behaviour (sales and aftersales) • Economic downturn (especially falling house prices) • New types of competition • Declining volumes of school leavers • Increasing volume of HE qualified leavers • Increasing volumes of skilled workers retiring • structural changes to provision and its funding • public sector unresponsive to employer needs Main areas contained within the proposed collaborative solutions outlines in the draft action plans are grouped under the following headings: • Developing First Line Management Skills • Developing Higher Level Management Skills • Raising Technical Skills Capacity and Capability • Developing Generic Skills • Increasing Legislative Awareness • Developing Basic Skills • Developing Key/Essential Skills • Improving the attractiveness of the Sector • Developing Career Pathways • Balancing the Workforce • High Calibre & Extra Sector Recruitment • Developing Employability Skills • Developing Quality Development Programmes • Quality Improvement Strategy (QIS) • Centres of Excellence • Skills Passport • Development of the downstream automotive Sector Qualifications Strategy (SQS) will drive from the SSA action plans. Stage 3 – Gap Analysis & Market Testing Page 8 of 73 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 9 of 73 November 2006 3 The Evidence 3.1 Skills Needs 3.1.1 The Sector The sector in Northern Ireland comprises thirteen industry-defined sub-activities across a range of business types downstream of the vehicle factory gate. There are 2,023 businesses across Northern Ireland with a combined turnover of £3.19bn annually, producing a total GVA of £478 million each year. The sector in Northern Ireland employs 17,297 people, of whom 4 out of every 5 are male. The sector is dominated by a few very large employers and the approximately 80% that are micro-businesses. Sector profitability is relatively poor, with 1% net profit ratio in Northern Ireland 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 Northern Irish employers. Historically the sector has been target driven and there is still room to improve customer focus. At the same time, increasing emphasis on careers, rather than occupations, is recognised as necessary. Furthermore, the sector’s image and reputation would benefit from improvement through greater professionalism across the spectrum of enterprises since this would aid recruitment and help to attract higher quality employees. 3.1.2 Geodemographics Automotive Skills’ research highlighted a dichotomy between predominantly urban and predominantly rural geodemographics. The latter are 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 Stage 3 – Gap Analysis & Market Testing Page 10 of 73 November 2006 and opportunities exist to bring a wider range of experiences into many occupations within the footprint. This applies equally to graduates. 3.1.3 Workforce Profile Although significant in terms of F.E., technicians and related occupations account for only a quarter of all employees in the footprint. Male employees dominate the workforce, but union and staff association membership is just 9%. Those employed in the public sector account for just 2½%. 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 11% of employers in Northern Ireland, 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 in generic skills like communications, team-working and problem solving, proficiency 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 The Automotive Skills Employer Validation Survey shows that the basic skills of young people coming into the sector are sometimes less than adequate. Over half of employers across the UK Stage 3 – Gap Analysis & Market Testing Page 11 of 73 November 2006 (56%) definitely agreed that to gain successful entry into the sector, school leavers will need to have far better literacy, numeracy and life skills than today’s school leavers. A massive 94% either definitely agree or tend to agree. 3.1.4.3 Generic Skills The Skills Monitoring Survey in Northern Ireland lists the 25 detailed occupational groups where skills shortage vacancies were most prevalent. This list includes some occupations broadly categorised as involving customer handling skills, such as sales and retail assistants (3rd most frequently reported), and sales representatives (8th most frequently reported). In terms of skills gaps amongst the existing cross-sector workforce in Northern Ireland, the sales and customer service occupational group was the one with the largest skills deficit, with 55% of employees here regarded as ‘not fully proficient’. There are obvious implications for the automotive industry. The need for generic skills is also confirmed by the Automotive Skills Employer Validation Survey. When asked if capabilities in generic skills like communications, team working and problem solving will need to increase significantly if businesses want to stay competitive, just fewer than 75% said that they definitely agreed that they would. 3.1.4.4 Technical Skills The Automotive Skills Employer Validation Survey across the UK confirms that technical skills are a real requirement in the sector at present. When asked if ever increasing technology and complexity of vehicles will result in a considerably increased need for new training and upskilling, a huge majority of 89% definitely agreed. A further 10% tended to agree, with only 1% tending to disagree. 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 or equivalent 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 organisations significant change will be required in this area. Stage 3 – Gap Analysis & Market Testing Page 12 of 73 November 2006 3.1.5 Approach to Employer Engagement Through Stage 3 the findings from Stages 1 and 2 have been communicated to employers, providers and stakeholders through a series of channels primarily including the following: 3.1.5.1 Published Reports Reports have been published for the UK and each of the home nations for Stages 1 and 2 of the Sector Skills Agreement. These have been available on both the websites of the Sector Skills Development Agency (SSDA) and that of Automotive Skills, with invitations to comment and to provide feedback. 3.1.5.2 Roadshow Debates Automotive Skills has held a series of Roadshow Debates across the whole of the UK beginning in September 2006 with the last one held at the end of October 2006. Employers, providers and stakeholders were invited by personal contact and through our website. At each of the half-day debating sessions the findings of Stages 1 and 2 were presented together with outline solutions followed by a discussion to 'market test' these to address the gap analysis. These were informal open debates without assumptions or preconceptions designed to identify the priorities for the sector. 3.1.5.3 Bi-lateral Discussions In addition to the Roadshow debates, key and interested employers unable to attend the debates were met to discuss the same issues in a one-to-one setting. 3.1.5.4 Employer Depth Engagement In addition, Automotive Skills commissioned a research agency to conduct a series of 26 depth interviews with employers to explore in a confidential and objective manner the issues arising out of Stages 1 and 2. This activity supplemented the output of Stages 1 and 2 as well as contributing to Stage 3. The output of this activity has been fed back into this report, is summarised 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. Stage 3 – Gap Analysis & Market Testing Page 13 of 73 November 2006 3.1.6 Employer Depth Engagement As part of Stage 3, twenty six face-to-face depth interviews were carried out with employers across the UK, of which four were conducted in Northern Ireland. The interviews were spread around the footprint’s sub activities. The interviews showed that employer engagement and response to potential solutions varied according to the structure of the organisation and fundamentally reflects profitability. It is worth noting that vehicle dealer profitability fell to just 0.6% net profit on sales in August 2006 (Source: Motortrader, 23rd October 2006, p 10). What is clear is that a one size fits all solution will not address the issues sufficiently. Figure 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 Stage 3 – Gap Analysis & Market Testing 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 recognised. 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). Page 14 of 73 “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 (e.g. 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 organise or use own or manufacturer facilities/courses; e.g. academies, reflecting the xyz way of doing things. November 2006 An underlying theme has crystallised through the first three stages of the SSA; too many young people have a poor attitude and lack of motivation to fulfil even the most basic of employer requirements. A widespread lack of discipline combined with a feckless approach to work is a common experience for employers. Employer dissatisfaction with such experiences in part explains the rapid move to employ workers from EU accession states. Employees from Eastern Europe are seen as being reliable, conscientious, diligent and attentive, and this encourages employers to overcome any language difficulties that may exist. The need for better skilled, better qualified managers and leaders is recognised, especially by the more progressive and sophisticated enterprises. Promotion through the ranks is a common theme in the sector, but skills development to support changing requirements has been lacking. Even those who may be good managers may not be good leaders. 3.1.7 Engagement Strategy for Stages 4 and 5 Throughout Stages 4 and 5 Automotive Skills will continue to build on the excellent working relationship it has developed over a number of years with employers across Northern Ireland. This will include the Northern Ireland 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. Stage 3 – Gap Analysis & Market Testing Page 15 of 73 November 2006 The possible or proposed solutions were initially presented to standing employer fora around the UK for consideration and comment. These were used to validate the initial gaps and ideas for resolving these gaps. From the response to these meetings the solutions were refined and at subsequent roadshow debates a series of more defined solutions was put forward for discussion. Whilst Automotive Skills has always played the role of 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 desired improvements. These views were taken into account and the scenarios re-presented at subsequent roadshow debates to sign post the way ahead. The focus of solution presentation, discussions and evaluation at the roadshows became more aligned to a proposed direction of travel as demanded by our employers. Consequently, Automotive Skills presented a series of solution scenarios ‘recommended’ through the feedback. Employers and other partners attending the roadshows were invited to comment on, agree or disagree with the proposed solutions by degree. The responses to the proposals were captured and synthesised for later use. In parallel with this activity Automotive Skills commissioned an independent research agency to undertake 26 face-to-face depth interviews with employers across the UK to reaffirm the priorities for action. The outputs from this exercise fed into the evaluation of the priorities for action, defined as long, medium or short-term. Automotive Skills then held an internal workshop involving all research, policy, regional and national staff to discuss and debate the outcomes of the employer engagement activities undertaken. This drew together the gap analysis, responses to the roadshow debate proposal scenarios presentations, and the employer depth interviews, to create a set of draft action plans to act as the basis for negotiations in Stages 4 and 5. Stage 3 – Gap Analysis & Market Testing Page 16 of 73 November 2006 3.2 Supply-Side Evaluation 3.2.1 SWOT Analysis – Northern Ireland Figure 2: SWOT analysis SPECIFIC STRENGTHS SPECIFIC WEAKNESSES Workforce Workforce Overall sector employment is forecast to increase in Compared to the UK average for the sector there is a Northern Ireland, compared with a fall at the UK level relatively low proportion of employment in management and Training senior official positions and in machine and transport Further Education: The proportion of females taking part in operatives occupations in Northern Ireland courses in the sector was much higher than elsewhere in the UK Compared to the UK average, the sector in Northern Ireland Qualifications and Provision has a marginally lower proportion of employees with Level 3 According to data the greatest level of provision in Northern and Level 4 qualifications Ireland is at Level 3; the level believed to be in greatest demand amongst employers Northern Ireland has a proportionately higher number of employees in the sector with no qualifications According to official inspectorates FE colleges in Northern Ireland serving the Retail Automotive Sector could be said to The UK Retail Automotive Sector has a much lower be performing well proportion of female workers than the all sector average (77% male versus 53% male). In Northern Ireland this situation is much more pronounced (84% of the workforce being male) Training DELNI does not currently fund training for the over 25s According to research carried out for Stage 2, Northern Irish employers in the sector are less likely to provide training for their staff, with only two-in-five employers having done so in the last 12 months compared to the UK average of 54% Further Education: FE enrolments in related subject areas declined during the period 2002 to 2004 Higher Education: there was no HE provision serving the Retail Automotive Sector in Northern Ireland in 2006 Qualifications and Provision According to data, the number of Retail Automotive Sector courses running in Northern Ireland is low in comparison to most English region Gaps in provision are evident at Level 1 in Northern Ireland Stage 3 – Gap Analysis & Market Testing Page 17 of 73 November 2006 (UFI) All FE colleges which have been classed by official inspectorates as performing less successfully are clustered around Belfast The main shortcomings in provision identified tend to be around the provision of key/essential skills and internal quality assurance and monitoring activities SPECIFIC OPPORTUNITIES SPECIFIC THREATS Workforce Workforce Marked increases in the expected levels of qualifications 35% of the Automotive Skills workforce in Northern Ireland required amongst those employed in each occupation are will need to be replaced during the period 2004-2014, projected, particularly at Level 3; creating increased demand creating the danger of further and more extensive skills for qualifications and training. gaps. This figure is above the UK average of 30% Training DELNI are seeking to bring more vocational training into the There is a threat that the Retail Automotive Sector is not school environment perceived as a priority by funders and policy makers and that their actions do not meet the sector’s specific requirements Essential skills, employability skills and work based skills are Larger employers who operate across the UK have voiced a priority for DELNI frustration about the different funding and eligibility criteria across the four home countries – there is a danger that they will distance themselves further from public provision 3.2.2 Geographic Context Broadly speaking the skills issues identified in Northern Ireland 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 those with 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 Stage 3 – Gap Analysis & Market Testing Page 18 of 73 November 2006 training and skills development is better and less disruptive, with a greater choice of delivery. There are also perceived differences in quality of delivery. 3.2.3 Changes to Provision by Skills Category In the next sections we outline in table format by skills category the requirements for change that form the basis for the proposed collaborative solutions. 3.2.3.1 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 Pre-apprenticeships Inter-personal skills development Learning programmes to include a range of technical, basic, generic and employability skills Flexible, appropriate qualifications frameworks Work with the SfBN cross sector activities to address needs Work with SfBN and Department for Employment and Learning policies to effect long term change 3.2.3.2 Basic Skills Basic 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 Literacy Numeracy Improvements to the school curriculum Learning programmes to include a range of technical, basic, generic and employability skills 14-16, new entrants and existing employees School Leavers Apprentices New entrants to the sector and existing employees across all sub-activities Continue to work with QCA and CCEA Page 19 of 73 November 2006 3.2.3.3 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 organising Problem-solving Team working Customer handling Communications Learning programmes to include a range of technical, basic, generic and employability skills All employees in the footprint. Continue to develop MA Frameworks to address these skills for new entrants to the sector and develop HR toolkits for employers 3.2.3.4 Technical Skills Technical Skills 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 For negotiation to meet the goals for change – develop and establish a centre of excellence model Likely to impact on technicians employed in the sector Link to UK wide activities to develop a ‘future’ model for provision in the sector Page 20 of 73 November 2006 3.2.3.5 Management and Leadership Skills Management & Leadership 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) 3.2.4 More focus on CPD, building blocks, bitesize learning Step into ARMS Roll out ARMS more widely Develop the delivery infrastructure and links with employers For negotiation to meet the goals for change but needs to be flexible For negotiation to meet the goals for change Work with existing providers to establish the delivery infrastructure and promote to employers. Approach to Supply-Side Consultation The Northern Ireland Showcasing Event took place in September 2006. From this point, Automotive Skills will continue to undertake regular engagement with stakeholders in Northern Ireland through Project Board meetings, our Quality Improvement Group, ad-hoc group sessions and bi-lateral meetings. These are continuing and on-going. 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 Northern Ireland 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 Stage 3 – Gap Analysis & Market Testing Page 21 of 73 November 2006 employees. Specifically, this work has helped to identify roadblocks in the way of personal development. Work/life balance-related issues in particular were identified as a significant restraint on workforce development – often driven by a combination of operational and supply-chain pressures – that impact significantly on an individual’s capacity and capability to develop professionally. As part of the drive to inform and advise employers about the benefits of training and development to their businesses Automotive Skills aims to help remove such obstacles to new learning and up-skilling. The role that trades unions can play in supporting development of the shared skills agenda is widely recognised, although penetration of 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 22 of 73 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 possible funding opportunities that may be available to 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 firstline 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 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 Timescales Short / Medium / Long-term Applies to all sub-sectors and specifically to managers in most (but not all) first-line 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 Long term change in culture of sector is needed to increase perceived value of management qualification to enhance personal and business performance – to achieve better profitability through more effective processes. In the short term, this can be stimulated through work Manufacturer (National Sales Organisations), their retailer networks, large / medium dealer groups, fast-fit operators, independent dealers, bodyshops, trade associations (e.g. RMIF). Employers with existing Level 3 training programmes to use the new level 3 qualification to Department for Employment and Learning, (consultation), Management and Leadership Network Awarding bodies & providers to offer new qualification. Look at how support can be given for level three and level five management qualifications designed for existing and new employers. Short-term 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 Wins’ to support mapping and promotion in place within first year. Stage 3 – Gap Analysis & Market Testing Page 23 of 73 Forecast Outputs / Outcomes Funding & Reviewing & Costings Monitoring Arrangements Existing employer training provision for first-line management roles aligned to Step into ARMS – working closely with major employers (AM top 20 dealer and fast fit employers) Case studies illustrating practical benefits of addressing business needs for employers Year 1- 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) no qualification at all) 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 levels. Management and leadership skills issues for Micro businesses more likely to be practical modular delivery (e.g. HR and Health & Safety) with aspiring new managers to encourage a learning culture and develop best practice activity. Create ‘Learning Champions’ Develop higher quality managers to enable succession planning – and contribute to reduced staff turnover (and associated costs) Broaden the vision of management as a catalyst to address limitations of ‘silo mentality’ assess competence of their managers. Establish ‘Fast Track’ pilot schemes to influence employers through case studies that illustrate the benefits for the manager and business needs of employer. Close collaboration between awarding bodies and providers to facilitate ‘Fast Track’ groups of employees with leading employers to achieve Level 3 qualification. Look at how to encourage employer uptake of management and leadership development at Level 3 – both in terms of pilot schemes but also any possible longerterm funding initiatives that may arise. Stage 3 – Gap Analysis & Market Testing Endorsement and promotion of level three qualification by Trade Associations to influence member networks Assess role for an HR Toolkit to enhance practical support for level three qualifications. Page 24 of 73 Timescales Short / Medium / Long-term Forecast Outputs / Outcomes Funding & Reviewing & Costings Monitoring Arrangements 5 manufacturer franchise networks across the UK. (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) Year 2 1 independent network accredited 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 industryspecific 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 support 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 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 Timescales Short / Medium / Long-term Applies to all sub-sectors, 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 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 Manufacturer (National Sales Organisations) and their retailer networks, large / medium dealer groups, fast fit operators, independent dealers, bodyshops, trade associations (e.g. SMTA). Employers with existing Level 5 training programmes to use the level 5 qualification to assess the competence of their level three managers. Department for Employment and Learning,, Management and Leadership Network, ETI, ANIC Short term activity around case studies and employer awareness raising Manufacturers to visibly change existing programmes to profile of ARMS to show ‘Quick Win’ Short and Medium term focus for activity to stimulate employer awareness of business benefits to be derived from wider uptake of formal Stage 3 – Gap Analysis & Market Testing DEL to consider what support may be available to encourage level five qualifications and mapping of existing employer programmes across to ARMS. Support to promote employer uptake of management development Page 25 of 73 Forecast Outputs / Outcomes Funding & Reviewing & Costings Monitoring Arrangements Existing employer management training provision – working closely with major employers (AM top 20 dealer and fast fit employers) and manufacturer franchise networks across the UK. Case studies illustrating practical benefits and success stories from developing management skills in addressing 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) management roles undermines employer capability to exploit Strengths and Opportunities, and respond to Threats and Weaknesses identified in SWOT analysis 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 Timescales Short / Medium / Long-term Health & Safety) participation. Develop higher quality managers to enable succession planning – and contribute to 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’ Establish ‘Fast Track’ pilot schemes - key influencer employers to develop case studies to illustrate clear benefits for the individual and business needs of employer. Endorsement and promotion of ARMS by Trade Associations to influence member networks through stakeholders – e.g. pilot schemes and stand-alone modules, not just end qualification. Close collaboration between awarding bodies and providers to facilitate ‘Fast Track’ groups of employees with leading employers to achieve qualification. Development of provider capacity for ARMS – work with existing management & leadership providers to contextualise delivery to ARMS management development. Endorsement and promotional support from Trade Associations Stage 3 – Gap Analysis & Market Testing Page 26 of 73 Forecast Outputs / Outcomes Funding & Reviewing & Costings Monitoring Arrangements Medium Term business needs for employers 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 4.1 Technical Skills 4.1.3 Raising Technical Skills Capacity and Capability The phenomenal pace of change in vehicle technology is putting pressure on employers and employees alike. A high proportion of employers find it difficult to keep the skills of their technical staff up to date - despite being at the core of apprenticeship programmes in the sector for many years. Combined with ongoing developments in IT diagnostic equipment and materials used in vehicle construction mean that there is a fundamental requirement for continuous upskilling of the existing workforce as well as for new entrants. Equally, there is a need for new adult entrants to be attracted into the industry and their skills need to be developed so they can be economically active. Evidence (demand 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. Employers have identified a lack of proficiency in sector-specific Sub-sectors & Occupations Likely to be Affected Applies to all sub-sectors and specifically technical occupations that account for about one in four of all positions in the sector. Primarily these include technicians and associated trades. Desired Impact of Change, Improvement or Activity Development of local ‘Employer Friendly Learning Providers’ that provide information, advice and guidance to employer. Greater engagement by micro/small businesses with the training provision at local levels. Employers are better informed about funded and non-funded training solutions and as a result participation in apprenticeships, Stage 3 – Gap Analysis & Market Testing 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 (RMIF) 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 Stakeholder Involved and Actions to be Taken Department for Employment and Learning, QCA, CCEA Education and Training Inspectorate, LSDA, ANIC, FE Colleges and private learning providers. 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 27 of 73 Timescales Short / Medium / Long-term Short to Medium Term Pilot ‘Employer Friendly Learning Providers’ Employer Friendly Learning Providers” in partnership with local government agencies- Forecast Outputs / Outcomes Funding & Costings Reviewing & Monitoring Arrangements Increased number of micro, small and medium size businesses engaging in Government funded initiatives. 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. 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) technical skills among their workforces. Concerns over the technical capability of staff working in the sector are also reflected in the National Consumer Council’s threatened ‘Supercomplaint’ Employers not actively supporting the local training provision Sub-sectors & Occupations Likely to be Affected Desired Impact of Change, Improvement or Activity and other training increases. Local training provision delivery reflects employer needs across technical and non technical areas Local training adheres to Automotive Skills Quality Improvement Strategy. Employers engage with apprenticeship programmes. Employers Involved and Actions to be Taken Friendly Learning Providers’ who have the capability to deliver training 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. SFBN: share lessons with other SSCs through the Skills for Business network. Review available qualifications and full time courses as to their suitability to meet employer and industry needs Consideration of how short courses for established employees may be supported to help them keep their skills up to dates Timescales Short / Medium / Long-term Forecast Outputs / Outcomes Less learners on full time learning programmes Learning providers offer robust apprenticeship programmes in partnership with employers. Reduce employer confusion surrounding training and funding resulting in improved engagement. Establish links between national employer Work with key partners at both national and local levels to maximise recruitment and promotional opportunities for Apprenticeships. Develop training Medium to long term - Establish protocol for national apprenticeship applicants to receive information on local employment Training at a local level reflects industry need and funding is channelled to those needs supporting business development Stage 3 – Gap Analysis & Market Testing Page 28 of 73 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 More flexible qualifications made available Enable employers to select better informed suitable young people for apprenticeships by providing links between national and local recruitment Other SSCs learn from our experience. Employers Involved and Actions to be Taken 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 Employers agree to take on apprentices and take part in the recruitment and selection process. Implement apprenticeship programmes for adults to attract adults into the industry. Stage 3 – Gap Analysis & Market Testing Stakeholder Involved and Actions to be Taken delivery to meet industry needs. Encourage learning providers to commit to teaching staff CPD and investment in capital equipment Collaborate with the Department for Employment and Learning to develop centre(s) of excellence. Work with ETI to identify customer focused learning providers. Work with DEL and any emerging Apprenticeship Approvals Group to approve apprenticeship programmes for use with adults. Work with DEL and ETI to assess impact of apprenticeships Page 29 of 73 Timescales Short / Medium / Long-term Forecast Outputs / Outcomes opportunities and employee professionalism. Skills level of training delivery staff increases as a direct result of Train the Trainer programmes keeping pace with employer needs. Infrastructure for automotive competitions in place; profile raised of technical skills in the motor industry. Funding & Costings Reviewing & Monitoring Arrangements Integrate all above initiatives with Skills Passport solution 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 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 for adults. Learning providers develop effective programme led apprenticeship programmes that lead learners onto employer lead programmes. Page 30 of 73 Timescales Short / Medium / Long-term Forecast Outputs / Outcomes 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). Infrastructure for automotive competitions in place; profile raised of technical skills in the motor industry. Funding & Costings Reviewing & Monitoring Arrangements November 2006 4.2 Generic Skills 4.2.1 Generic Skills In common with possibly all sectors of the economy, there is an ever-increasing demand for generic skills. These are demanded from almost all employers across the footprint’s sub-sectors because they are critical at all occupational levels in ensuring business success – particularly customer service skills. Such generic skills are often seen as cutting across all job roles and as a pre-requisite to underpin more specific skills sets noted elsewhere in this report. Evidence (demand 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. However, the employer focus is on addressing employees’ practical expertise and specific business needs not on qualifications. Sub-sectors & Occupations Likely to be Affected Applies to all sub-sectors and all occupations across the sector, but has particular significance for customer-facing roles. Stage 3 – Gap Analysis & Market Testing Desired Impact of Change, Improvement or Activity Improved access to flexible and modular bitesize 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 Employers Involved and Actions to be Taken Dealer groups, independent dealers, roadside recovery operators, fast fit outlets, bodyshops, and trade associations (e.g. RMIF) – 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 Stakeholder Involved and Actions to be Taken Department for Employment and Learning,, QCA, CCEA, Education and Training Inspectorate, LSDA,, ANIC Work with DEL 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) Page 31 of 73 Timescales Short / Medium / Long-term Short term Medium Forecast Outputs / Outcomes Funding & Costings Reviewing & Monitoring Arrangements Case study examples of SME & Micro employers gaining business benefit from generic skills enhancement. 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 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 Stage 3 – Gap Analysis & Market Testing Desired Impact of Change, Improvement or Activity & Micro businesses – to address current confusion experienced by employers Employers Involved and Actions to be Taken profile of bitesize modular solutions. Develop case studies to widen participation – inc. Business Improvement Techniques (BIT) and team working Stakeholder Involved and Actions to be Taken Support for modular courses that do not directly lead to qualifications – address employer need for business solution not for qualifications. Develop a toolkit with employers to promote use of Training Plan and Budget within context of improved business planning. Consideration of possible support for development of Training Plan toolkit to develop SME capability for business planning for Training Plans and budgeting Page 32 of 73 Timescales Short / Medium / Long-term Forecast Outputs / Outcomes Funding & Costings Reviewing & Monitoring Arrangements generic skills provision to reduce employer confusion about provision and funding Mechanism to support employers in making effective decisions about purchasing training (e.g. provider quality and training outputs) Integrate generic skills training (inc. bite-size modular training that does not attract formal qualifications) into the Skills Passport solution. November 2006 4.2.2 Generic Skills - customer service Development of stronger customer service skills, across all occupations and sub-sectors, are fundamental to the future development of the sector – and there is an opportunity for this to be supported through the effective use of a Customer Service Toolkit Evidence (demand and supply) Customer complaints to Trading Standards and threat of NCC ’Supercompl aint’ indicate substantial issues for employers around levels of customer service capability Sub-sectors & Occupations Likely to be Affected All sub-sectors and employer groups – large and small Desired Impact of Change, Improvement or Activity Greater recognition for customer service throughout the sector Skills Passport accepted by majority of employers across the sector – entry point to CPD and ‘learning organisations’ through generic skills Improved assessment techniques used in the industry. Stage 3 – Gap Analysis & Market Testing Employers Involved and Actions to be Taken Employers to use Customer Service Toolkit as best practice for all customerfacing staff Commitment to standards development to contextualise existing Customer Service units to ensure fit for purpose in sector Work with larger dealer groups and “soft franchises” Employers to implement incentive bonus schemes based on customer service measures (not Stakeholder Involved and Actions to be Taken Department for Employment and Learning,, QCA,, ANIC, MLN Consideration of possible support for development and accreditation of the Customer Service Toolkit – especially where delivered in bitesize modules (which may not currently be recognised by formal qualifications) Consideration of possible support for the accreditation of customer service linked to Train to Page 33 of 73 Timescales Short / Medium / Long-term Forecast 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 Using bite-size customer service training, employers are provided with opportunity to meet emerging industry “Codes of Practice”. Year 1 New Customer Service standards for sector Target number of employers using Toolkit application – e.g. 2 independent repairer networks Funding & Costings Reviewing & Monitoring Arrangements Medium Better customer service levels, as seen in reduced November 2006 Evidence (demand and supply) Sub-sectors & Occupations Likely to be Affected Desired Impact of Change, Improvement or Activity Learning providers develop their skills of assessment. Employers implement CPD programmes for women employees. More women join the industry. Career ladder put in place for women. Stage 3 – Gap Analysis & Market Testing Employers Involved and Actions to be Taken sales volumes) Employers to recognise Skills Passport as a minimum requirement of employment (and an accepted measure for customer handling skills) 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 workplace. Stakeholder Involved and Actions to be Taken Consideration of possible support for across regions. Awarding bodies to develop units that can be credit rated so they can be used in qualifications. Awarding bodies to develop innovative forms of assessment that assesses occupational competence. Awarding body ‘buy-in’ to Skills Passport Timescales Short / Medium / Long-term Forecast Outputs / Outcomes Funding & Costings Reviewing & Monitoring Arrangements complaints to Trading Standards from the sector and NCC removal of threat of the ‘Supercomplaint’ Industry recognises the requirement for a Skills Passport Assess effectiveness of Women into Work project with SSDA. Page 34 of 73 November 2006 4.2.3 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. 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 Applies to all sub-sectors – technical, sales and all customer-facing occupations. An issue particularly for Micro businesses, but also for customer facing and first-line management staff in larger (and SME) employers 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. Dealer groups, independent dealers, fast fit outlets, bodyshops, and trade associations (e.g. RMIF) – 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 Department for Employment and Learning,, Management and Leadership Network Trading Standards, FSB Explore support 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. Work with and Stage 3 – Gap Analysis & Market Testing Page 35 of 73 Timescales Short / Medium / Long-term Short Term Forecast Outputs / Outcomes Funding & Costings Reviewing & Monitoring Arrangements Programme of employer workshops held jointly with Trading Standards to provide employers with enhanced knowledge of legal requirements. Reduction in number of consumer complaints to Trading Standards Improved customer satisfaction measures for businesses in sector 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 Stage 3 – Gap Analysis & Market Testing Desired Impact of Change, Improvement or Activity Employers Involved and Actions to be Taken Stakeholder Involved and Actions to be Taken customer complaints through better procedures) seek advice from the Federation of Small Businesses on strategic approach. Page 36 of 73 Timescales Short / Medium / Long-term Forecast Outputs / Outcomes Funding & Costings Reviewing & Monitoring Arrangements November 2006 4.2.4 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. Poor literacy and numeracy skills affect the efficiency of businesses. Sub-sectors & Occupations Likely to be Affected Applies to all sub-sectors 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. RMIF). Closer collaboration between employers and providers to evaluate scope of issue and remedial action. Employers to assess the basic skills of their staff and offer support. Stage 3 – Gap Analysis & Market Testing Stakeholder Involved and Actions to be Taken DEL, QCA, CCEA, LSDA, Job Centre, Careers Service Stakeholders influencing the school system to develop a collaborative approach to address employer needs. Timescales Short / Medium / Long-term Forecast Outputs / Outcomes Funding & Costings Reviewing & Monitoring Arrangements Medium to Long Develop approach that integrates with SfBN solution for this cross-cutting theme To be defined through discussion with employers, providers and stakeholders To be defined through discussion with employers, providers and stakeholders Learning providers develop basic skills training packages for employees. Look at possible support for Essential Skills. Page 37 of 73 November 2006 4.2.5 Key Skills/Essential Skills As noted in Section 2, despite technical apprenticeship programmes being fundamental to the sector for many years, the sector still suffers an above average rate of customer complaints, as typified by Trading Standards reports and the recent National Consumer Council ‘Supercomplaint’. Employers have noted that trainees appear to be lacking in key skills areas, which can undermine the effectiveness of learning through apprenticeship programmes.. 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 sub-sectors and occupations – but has particular significance for customer facing roles Stage 3 – Gap Analysis & Market Testing 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 Employers Involved and Actions to be Taken Manufacturers, dealer groups and trade associations Ensure full support in achievement of Key Skills/ Essential 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 DEL, Job Centre, Careers Service, QCA, CCEA, ANIC Timescales Short / Medium / Long-term Forecast Outputs / Outcomes Funding & Costings Reviewing & Monitoring Arrangements Medium Term 3-5 years Customer satisfaction improves (CSI scores rise ad number of Trading Standards complaints reduced) NCC threat of ‘Supercomplaint’ is permanently withdrawn Increase in profitability To be defined through discussion with employers, providers and stakeholders To be defined through discussion with employers, providers and stakeholders Short Term Employer/learnin g friendly delivery models and modes established i.e. Essential Skills integrated into NVQ delivery. Awarding Bodies develop assessment systems that are fit for purpose. Page 38 of 73 November 2006 4.3 Balanced Workforce 4.3.1 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 & Sub-sectors & Occupations Likely to be Affected Applied to all sub-sectors 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 Employers Involved and Actions to be Taken Manufacturer (National Sales Organisations) and their retailer networks, large / medium dealer groups, roadside recovery operators, fast fit outlets, independent dealers, bodyshops, and trade associations (e.g. RMIF). Work with employers to build on existing Automotive Skills careers resources. Continue to Stakeholder Involved and Actions to be Taken DEL, Careers Service, Job Centre, FE/HE Institutions Work with Careers Service and Job Centre to ensure fully updated IAG material is disseminated (inc. web and helpline mechanisms), as well as CPD for their advisers HEIs to work with industry to offer work placements Page 39 of 73 Timescales Short / Medium / Long-term Forecast Outputs / Outcomes Funding & Costings Reviewing & Monitoring Arrangements Short to Medium term activity Ongoing update and enhancement of careers material – based on robust research and user feedback. To be defined through discussion with employers, providers and stakeholders To be defined through discussion with employers, providers and stakeholders Medium/ Long 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 maintenance) Desired Impact of Change, Improvement or Activity desirable. 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. Stage 3 – Gap Analysis & Market Testing Employers Involved and Actions to be Taken raise employer awareness of Promoting Workplace Learning – and work with employers across England Facilitate collaborative project between employer(s) and JC+ 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. Employers to visit schools, Stakeholder Involved and Actions to be Taken Timescales Short / Medium / Long-term Forecast Outputs / Outcomes Funding & Costings Reviewing & Monitoring Arrangements Mechanism established for ongoing briefing and CPD for adviser staff with job Centre Plus, Learndirect etc Facilitate collaborative project between employer(s) and Job Centre Page 40 of 73 Medium / Long Establish ongoing working partnerships between Job Centre Plus and larger employers (e.g. dealer 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 colleges and Universities to explain how the industry works and what opportunities exist within it. Pledge by major employers and stakeholders (e.g. trade associations, manufacturers and dealer groups) to link to and support Automotive Skills’ industry career promotion. Employer support to set up a ‘clearing house’ to ensure applicants rejected by popular programmes are kept in the system – and can be re-routed to less popular programmes. Employer commitment to Stage 3 – Gap Analysis & Market Testing Stakeholder Involved and Actions to be Taken Timescales Short / Medium / Long-term Medium / Long Consideration of possible support to research the impact of IAG on influencers Funding from SSDA for additional sector attractiveness research Page 41 of 73 Forecast Outputs / Outcomes Funding & Costings Reviewing & Monitoring Arrangements groups) Coherent and collaborative promotion of the sector led by Automotive Skills with the support of the major employers and industry stakeholders. 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. Clearing house ensures talented potential apprentices are made aware of less popular apprentice November 2006 Evidence (demand and supply) Sub-sectors & Occupations Likely to be Affected Stage 3 – Gap Analysis & Market Testing Desired Impact of Change, Improvement or Activity Employers Involved and Actions to be Taken implement template for addressing language barriers for migrant workers (apply lessons learnt from Health & Safety for employers in the Construction industry Stakeholder Involved and Actions to be Taken Page 42 of 73 Timescales Short / Medium / Long-term Forecast Outputs / Outcomes Funding & Costings Reviewing & Monitoring Arrangements programmes and not lost to another sector. November 2006 4.3.2 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 Stage 3 – Gap Analysis & Market Testing 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 Employers Involved and Actions to be Taken Manufacturers and their retailer networks, large / medium dealer groups, roadside recovery operators, fast fit outlets, independent dealers, bodyshops, and trade associations (e.g. RMIF). Establish working group to build on the success of Promoting Workplace Learning to identify case study, or example, Career Pathways that Stakeholder Involved and Actions to be Taken DEL, Careers Service, Job Centre,, QCA, CCEA Identify possible support for and collaboration with key partners to promote Career Pathways, and also for development of a ‘training plan toolkit’ Work with QCA, CCEA and awarding bodies to develop a Page 43 of 73 Timescales Short / Medium / Long-term Short Medium Short / Medium Forecast Outputs / Outcomes Funding & Costings Reviewing & Monitoring Arrangements Sector Qualification Strategy to consolidate and clarify potential career opportunities and progression pathways 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 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 Stage 3 – Gap Analysis & Market Testing Desired Impact of Change, Improvement or Activity careers (not just jobs) – occupational profiles Employers Involved and Actions to be Taken can be used as basis for promotional activity (e.g. DVD or webbased) Closely involve employers and trade associations in working groups for development of Sector Qualification Strategy to ensure employer relevance 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 Stakeholder Involved and Actions to be Taken robust Sector Qualification Strategy that is appropriate for Northern Ireland Develop occupational profiles as part of the SQS, demonstrating clearly job opportunities and career progression; profile competencies as well as qualifications. Page 44 of 73 Timescales Short / Medium / Long-term Forecast Outputs / Outcomes Funding & Costings Reviewing & Monitoring Arrangements whole. Occupational profiles inform career guidance (based on competency profiling) and also provide a basis for contracting for revenuegenerating activity – writing of careers materials. Toolkit to support employers to develop effective training plans and budgets, November 2006 4.3.3 Achieving a Balanced Workforce The sector needs to address not only a 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 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. Feedback from employers and staff indicate issues around sector image and attractiveness, but there are also work place culture and attitudinal issues that can discourage female recruitment and retention. Sub-sectors & Occupations Likely to be Affected Applies to all sub-sectors and occupations. 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 and shortages Long term culture change towards more positive attitudes around opportunities for female entrants to the sector Older workers take part in training programmes in order to help them keep their Employers Involved and Actions to be Taken Manufacturer (National Sales Organisations) and their retailer networks, large / medium dealer groups, bodyshops, independent dealers, vehicle rental & leasing operators, and trade associations (e.g. RMIF). Collaboration with employers to identify joint activities within the SSDA ‘Women into Work’ initiative Work with employers to identify ‘Champions’ and case studies to highlight Stakeholder Involved and Actions to be Taken DEL, SSDA , Careers Service and JobCentre Develop guidance with stakeholders on how to attract girls into the Young Apprenticeship programme. Develop IAG and careers adviser information to raise profile and image of sector with potential female recruits and people from different ethnic backgrounds Work with Job Centres to encourage broader recruitment into the sector and Page 45 of 73 Timescales Short / Medium / Long-term Medium to Long term Forecast Outputs / Outcomes Funding & Costings Reviewing & Monitoring Arrangements Enhanced IAG with balanced message for potential female recruits – using high profile case studies Raise profile and attractiveness of sector for female entrants. Assess feasibility of an initiative such as Computer Clubs for Girls More positive cultural environment for female staff reflected in Sector Attitude and Image surveys. Link to the ‘Step into ARMS’ solution – possibly for 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 Stage 3 – Gap Analysis & Market Testing Desired Impact of Change, Improvement or Activity skills up to date. Employers Involved and Actions to be Taken 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 Stakeholder Involved and Actions to be Taken develop more innovative solutions to skills shortages Consideration of possible support for awarding bodies to support work on mapping migrant worker qualifications to UK qualifications, and integrate into the Skills Passport solution Consideration of possible support for training of older worker above current threshold of 25 – need to encourage and support career ‘changers’ & ‘returners’ Page 46 of 73 Timescales Short / Medium / Long-term Forecast Outputs / Outcomes Funding & Costings Reviewing & Monitoring Arrangements female returners to work Link to Skills Passport solution – particularly for migrant workers Possible support for older trainees (inc. apprenticeships) could support improvement in retention and completion rates over medium term (2 years) November 2006 4.3.4 High Calibre and Extra-Sector Recruitment The sector has not historically displayed a strong track record in recruiting and retaining new graduates or attracting high calibre individuals already employed in 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, by putting in place graduate recruitment programmes, career development programmes designed to attract managers from other sectors and Foundation Degrees designed to help existing employees develop skills needed for the future success of the sector. But this requires support 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 8+, and 16% have no qualification at all) This suggest underrepresentation of graduates across the sector – but historically employers have shown only 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 Timescales Forecast Funding & Reviewing & Short / Medium Outputs / Costings Monitoring / Long-term Outcomes Applies to all sub-sectors, and potentially all occupations. 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 Manufacturer (National Sales Organisations) and their retailer networks, large / medium dealer groups, fast fit operators, independent dealers, bodyshops, trade associations (e.g. RMIF). Employers to identify potential opportunities for graduates. Promote the career routes available through ‘success stories’ case studies (from DEL, Careers Service,, FE/HE Institutions to develop industry-context provision and links Work with Foundation Degree Forward and DEL to produce a framework for Foundation Degrees and put in place a quality enhancement programme for HEIs to help implement Foundation Degrees. Work with careers advisors 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 subactivities and occupations – both on leaving HE and as career changers. Case studies of graduate success stories to promote opportunity – both for individual and for business benefit Stage 3 – Gap Analysis & Market Testing Page 47 of 73 Arrangements To be defined through discussion with employers, providers and stakeholders To be defined through discussion with employers, providers and stakeholders Medium to Long term work with employers and stakeholders November 2006 Evidence (demand and supply) Sub-sectors & Occupations Likely to be Affected limited interest in recruiting graduates as existing industry experience is more highly valued. It has also been noted that experienced professionals outside the industry can bring muchneeded managerial and other skills to the sector. Stage 3 – Gap Analysis & Market Testing Desired Impact of Change, Improvement or Activity Employers Involved and Actions to be Taken Stakeholder Involved and Actions to be Taken sourcing of recruits for all roles (and in particular firstline management) Recognition by graduates and those outside the sector of management and executive career paths available in our sector. both employer’s and individual’s perspective) Employers to implement HR Toolkit and graduate induction work more effective recruitment & retention of graduates Employers to work collaboratively with HE institutions – e.g., project work with Business Schools Undergraduate placement scheme to be developed with AM Top 30 dealer groups and NSOs. in the HE sector to raise profile of sector and potential career opportunities Identify HE careers information sources and embed quality IAG about sector. Encourage HE institutions to work with employers offering student placements Identify means of attracting those outside the sector i.e. through job portals, partnership. Work with learning providers to put in place a CPD programme for high calibre employees joining the industry. Page 48 of 73 Timescales Forecast Funding & Reviewing & Short / Medium Outputs / Costings Monitoring / Long-term Outcomes Arrangements Re-visit Sector Attitude and Image research, alongside graduate recruitment research to identify changes in attitude and effectiveness of graduate recruitment. Establish 5 Undergraduate placement programmes with manufacturer (NSO) and large dealer group commitment November 2006 4.3.5 Employability Research has highlighted employers’ concerns about the employability and life skills of new recruits, particularly apprentices, and they have clearly expressed the need for a higher proportion of young people to possess the right attitude and willingness to learn. Although the issue of employability needs to be addressed through the school system, there is a role for employers to play in practical support for schools in encouraging vocational learning and encourage raising levels of employability. Evidence (demand and supply) Employers have highlighted issues around life skills affecting new recruits – attitude, consistency, motivation, reliability and willingness to learn. These underpin the effectiveness of recruitment – and many employers now focus on the individual’s attitude (rather than experience or qualifications) as the latter can be taught. Sub-sectors & Occupations Likely to be Affected Desired Impact of Change, Improvement or Activity Employers Involved and Actions to be Taken Stakeholder Involved and Actions to be Taken All sub-sectors and occupations – but especially occupations that are conventional entry points for school leavers Improve the life skills of new recruits to the sector, such that employers can focus on developing the work-based vocational skills of individuals rather than having to supplement life skills that have been inadequately delivered by fulltime 14-19 education system Address employer misconceptions of NVQ – raise perceived value of vocational Dealer groups, roadside recovery operators, fast fit outlets, independent dealers, bodyshops, and key trade associations (e.g. RMIF). 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 DEL, ETI, Job Centres, QCA, CCEA and awarding bodies Facilitate collaborative project between employers in the sector and schools to enhance 14-19 work experience placements for young learners Continued development of Apprenticeship programmes for sector context – work with employers to research what they value from vocational qualifications Develop Stage 3 – Gap Analysis & Market Testing Page 49 of 73 Timescales Short / Medium / Long-term Forecast Outputs / Outcomes Funding & Reviewing & Costings Monitoring Arrangements Short term Medium / Long Term Review of Young Apprenticeship and Specialised Diploma initiatives in England and identify if there are any opportunities for enhanced vocational learning for the sector. Toolkit for employers and schools to facilitate collaborative work between employers and the 14-19 education sector (schools) – linking work experience and curriculum 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 Stage 3 – Gap Analysis & Market Testing Desired Impact of Change, Improvement or Activity Employers Involved and Actions to be Taken Stakeholder Involved and Actions to be Taken qualifications for employment with employers (and encourage more positive perceptions from parents, peers and teachers) with supportive employers for preapprenticeships – inc. identify potential learning from Young Apprenticeships and Specialised Diplomas in England, Research employer attitudes to NVQs to identify why they do not like them – (Link to ‘Clearing House’ solution on section 4.1 above) Develop fit for purpose assessment and quality assurance systems for NVQs. capacity of learning providers to deliver applied learning through Diplomas and work based learning through apprenticeships. Awarding bodies to improve the effectiveness of their external verifiers. Awarding bodies to issue guidance on assessment and gathering evidence that demonstrates occupational competence. Page 50 of 73 Timescales Short / Medium / Long-term Forecast Outputs / Outcomes Funding & Reviewing & Costings Monitoring Arrangements Research report on employer attitudes to vocational qualifications and potential opportunities for future development November 2006 4.4 Strategic Over-arching Solutions 4.4.1 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 sub-sectors and occupations but specifically technical occupations that account for about one in four of all positions in the sector. Stage 3 – Gap Analysis & Market Testing Desired Impact of Change, Improvement or Activity Develop world class learning provision improve the overall quality and effectiveness of education and training delivered to the sector by driving up standards, setting benchmarks, developing guidance and enabling the sharing of best practice across the provider network. Deliver eight strands of the Quality Improvement Strategy (QIS): Strand 1 - Employers Involved and Actions to be Taken Dealer groups, roadside recovery operators, fast fit outlets, independent dealers, bodyshops, professional bodies and key trade associations (e.g. RMIF). Work with the Workforce Development Committee and Employer Forums to: Oversee the quality and content of training and methods of assessment Stakeholder Involved and Actions to be Taken DEL, ETI, MLN, ANIC, QCA, CCEA, FE / HE institutions, private providers and manufacturer provision across the UK. 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 provider Page 51 of 73 Timescales Short / Medium / Long-term Medium to long term Forecast Outputs / Outcomes Funding & Costings Reviewing & Monitoring Arrangements Overarching Improvement in the quality of education and training provision across the sector. Improved provider performance in terms of learner experience, achievement and retention, statutory inspection outcomes and meeting the requirements of funding bodies. Provision meets employer demands for quality training better meeting their business needs. 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 Stage 3 – Gap Analysis & Market Testing Desired Impact of Change, Improvement or Activity setting targets and measurements Strand 2 Apprenticeship programme review Strand 3 Improving 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 Strand 8 Automotive Skills Quality Award Employers Involved and Actions to be Taken so they have a positive impact on business needs Produce an action plan to further develop the strands of the QIS and support quality improvement for the benefit of employers in the sector. Communicate with employers to inform them of Automotive Skills accredited providers. Stakeholder Involved and Actions to be Taken network. Make the products and services available through the QIS to provider network. Communicate with the provider network the benefits of the products and services available through the strands of the QIS Page 52 of 73 Timescales Short / Medium / Long-term Forecast Outputs / Outcomes Funding & Costings Reviewing & Monitoring Arrangements Employers know where to go for quality training. Improved employer productivity through a better trained, skilled and employable workforce. Improved partnership working between providers and employers. Providers more responsive to needs of employers. Link to Skills Passport solution November 2006 4.4.2 Developing Quality Education and Training Provision (2) –Centres of Excellence This solution is designed to complement and support the development of the Quality Improvement Strategy in Section 5.1, to enhance the existing networks of provision through sharing of best practice and enabling employers to have effective access to the provision that is of the highest benchmarked quality and ‘fit for purpose’ against their business needs. Evidence (demand and supply) Employers have expressed concerns around flexibility, consistency and quality of training delivered across the complete range of provision - FE college, private providers and manufacturer provision. Sub-sectors & Occupations Likely to be Affected Applies to all sub-sectors 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 the benefit of employers by: Developing employer friendly Centres of Excellence – Scotland, Northern Ireland and Wales. Developing a national ‘Academy for Automotive Skills - Employers Involved and Actions to be Taken Manufacturers and large / medium dealer groups, roadside recovery operators, fast fit outlets, independent dealers, bodyshops, and trade associations. Work on a broad scale with employers and specifically with Employer Forums and the Workforce Development Committee to: Gain support from employers to drive the Stakeholder Involved and Actions to be Taken DEL, ETI, ANIC, F/HE institutions, private providers and manufacturer provision across the UK. Work with stakeholders to: Develop a feasibility study for Centres of Excellence. Work with DEL to develop a Centre of Excellence model Page 53 of 73 Timescales Short / Medium / Long-term Medium Forecast Outputs / Outcomes Funding & Costings Reviewing & Monitoring Arrangements Implement project plan to establish Centres of Excellence Develop sustainable business plan for the national ‘Academy for Automotive Skills. To be defined through discussion with employers, providers and stakeholders To be defined through discussion with employers, providers and stakeholders Long term Establish Centres of Excellence. Establish a national ‘Academy for Automotive Skills. Improved November 2006 Evidence (demand and supply) 4.4.3 Sub-sectors & Occupations Likely to be Affected Desired Impact of Change, Improvement or Activity England Employers Involved and Actions to be Taken development of Centres of Excellence Develop a project plan for Centres of Excellence Stakeholder Involved and Actions to be Taken Timescales Short / Medium / Long-term Forecast Outputs / Outcomes Funding & Costings Reviewing & Monitoring Arrangements access to quality and specialist training for more remote and rural employers 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. Lack of Sub-sectors & Occupations Likely to be Affected Applies to all sub-sectors and occupations. Stage 3 – Gap Analysis & Market Testing 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 Employers Involved and Actions to be Taken Manufacturer (National Sales Organisations) and their retailer networks, large / medium dealer groups, bodyshops, independent dealers, vehicle rental & leasing operators, and trade associations (e.g. RMIF). Stakeholder Involved and Actions to be Taken DEL, SSDA, learning providers, awarding bodies Commitment from awarding bodies to recognise Skills Passport and link to accredited courses Agree scope for access to individual learner accounts Page 54 of 73 Timescales Short / Medium / Long-term Forecast Outputs / Outcomes Funding & Costings Reviewing & Monitoring Arrangements Short – Medium term (1 – 2 years) Complete industry-wide feasibility study and agree implementation plan. Launch Skills Passport for sector Industry recognises the requirement for a Skills Passport. All new recruits 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 recognition for individual achievement at present – could contribute to image of sector. Stage 3 – Gap Analysis & Market Testing Desired Impact of Change, Improvement or Activity 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 threatened ‘Supercomplaint Employers Involved and Actions to be Taken Agree scope for Skills passport and links with existing employer (and manufacturer) training records Develop feasibility and business plan for implementation Employers to recognise Skills Passport as a minimum requirement of employment Employers pay for a Skills Passport for their apprentices. Stakeholder Involved and Actions to be Taken and qualification records to ensure that Skills Passport has current record of an individual’s achievements. Develop feasibility and business plan for implementation – work with SSDA and other SSCs to ensure cost effective solution is developed (and which build on best practice experience form other SSCs) Consideration of possible support to evaluate links between online learning (inc. Learndirect) and Skills Passport Awarding bodies to ensure linkage with Credit and Qualification frameworks Page 55 of 73 Timescales Short / Medium / Long-term Forecast Outputs / Outcomes Funding & Costings Reviewing & Monitoring Arrangements to have a Skills Passport – linked to all accredited training (which is ‘trackable’ through a central database) November 2006 5 Overall Reviewing & Monitoring Arrangements 5.1 General The SSDA has declared that Sector Skills Agreements in their published versions will become the basis for SSCs’ business plans going forward. Automotive Skills will use the SSA as the focus of its activities going forward in parallel with the over 14-19 age group agenda and the Sector Qualifications Strategy that will be developed from the SSA. When finalised at the end of Stage 5 the action plans will include specific arrangements to evaluate the expected outcomes and out-turns of each part of the overall SSA, including the timetables envisaged and how progress towards success targets, set out in the action plans, will be measured. 5.2 Checkpoint Review The SSDA has been consulting with Sector Skills Councils (SSCs), partners and stakeholders represented on the Northern Ireland 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 out-turns 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. Gap Analysis & Market Testing Page 56 of 73 November 2006 It is envisaged that the CR will make extensive use of the monitoring and evaluation methodologies agreed as part of the Action Plan development leading to the final publication and launch of the SSA at the end of Stage 5. 5.3 Specific Reviewing and Monitoring All specified activities laid out in the final versions of the Action Plans will require baseline measurement, on-going monitoring and evaluation to ensure a comprehensive understanding of the impacts of the Action Plans themselves can be established. At this stage the precise nature of the measurements will require finalisation, but the broad nature of these – with any detail already envisaged – are included in the tables shown in section 4 Proposed Collaborative Solutions. Further details will be devised in Stage 5 and finalised in the published SSA. Gap Analysis & Market Testing Page 57 of 73 November 2006 Appendices Appendix 1: Gaps in Provision Work Based Learning Enrolments: Northern Ireland Unfortunately, no WBL data is available for Northern Ireland. Further Education Enrolments: Northern Ireland Figure 3: Further Education Enrolments Country Northern Ireland FE Retail Automotive Enrolments per Enrolments Sector Sites 100 sites 1,418 1,822 77.8 Population 1,685,267 Enrolments per 100,000 population 84.1 Sources: FE Enrolments (Northern Ireland): DELNI Enrolments Data 2003/04, automotive sector (except First Aid and Yachting) Automotive Sites: Automotive Skills / Simpson and Carpenter: Automotive Sector Research Database 2005 Population Figures: Census 2001 In Northern Ireland, enrolment data contains all of the courses that are enrolled upon by students. This means that, unlike in England, individual students may be counted more than once within the data. As a result, there were 77.8 enrolments per 100 sites in Northern Ireland and 84.1 enrolments per 100,000 people, both significantly higher than English averages. 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. Gap Analysis & Market Testing Page 58 of 73 November 2006 Figure 4: Higher Education Courses across the UK Retail Region Courses Automotive Sector Sites Courses per 100 sites 2 Area (km ) Courses per 1000 km 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 Northern Ireland 0 1,822 0.0 14,150 0.0 Scotland 18 4,934 0.4 78,807 0.2 South East 320 10,988 2.9 19,086 16.8 South West 30 6,712 0.4 23,851 1.3 Wales 116 3,580 3.2 20,778 5.6 West Midlands 601 6,958 8.6 13,004 46.2 Yorkshire and the Humber 271 6,234 4.3 15,411 17.6 UK 2,497 65,240 3.8 244,169 10.3 2 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 HE courses available, with 8.6 courses for every 100 retail automotive sites. The next largest choice of HE courses per 100 automotive sites was found in the East Midlands (6.4), followed by the East of England (5.7) and Yorkshire and the Humber (4.3). Scotland and the South West were both noticeably below average in terms of the number of courses available, with just 0.4 HE courses for every 100 sites in both regions. The number of courses per 1000km2 provides a measure, in relative terms, of how far individuals/employees in a region might have to travel to access HE training provision. A lower figure indicates that individuals/employees would have to travel a longer distance. Gap Analysis & Market Testing Page 59 of 73 November 2006 Appendix 2: United Kingdom SWOT Analysis This section of the report contains an overall SWOT for the United Kingdom as a whole, a specific SWOT analysis for Northern Ireland can be found in section 3.2.1 of this document. Strengths Sector Characteristics: • The Retail Automotive Sector is important, employing approximately 2% of the working population • The potential is significant; the UK new car market is second only to Germany in size and approximately 30 million vehicles use the UK’s roads • Productivity in the vehicle maintenance and repair sector is strong compared to European comparator countries Workforce • Established workforce with strong identity • A clearly defined footprint and occupational structure • Need for employment spread across the country • Rural employers operating in the sector tend to have workforce stability Training • Manufacturers and franchise dealers have a strong emphasis on training and updating skills to match new products • Apprenticeships are a common and valued route within the sector, with an increase in the uptake in the number of apprenticeships being taken in the sector evident • Employees in the 16-24 age range working in the Retail Automotive Sector are more likely to receive training than the all sector average, therefore this generation of employees will be accustomed to accessing training as part of the their working life • Training spend per employee receiving training in the Retail Automotive Sector is above the all sector average • Over 88% of employers in the sector are able to articulate their strategy for identifying training needs • Over 94% of employers in the sector who provide training for their employees are either satisfied or very satisfied with its impact on performance • Only 6.4% of employers feel that there is no link between training and business performance Gap Analysis & Market Testing Page 60 of 73 November 2006 Qualifications and Provision • Automotive Skills support 14 NVQs/SVQs over three levels covering each sub-sector of the industry, some of which are broken down to accommodate specialities • Training in Key or Core Skills is also offered to aid individual improvement, self learning and performance in education, training and work • A range of technical certificates have also been developed for apprenticeship programmes • The Automotive Retail Management Standard (ARMS) has been developed for managers and potential managers to improve productivity in the sector, and is due to be expanded in the near future • There are a high number of Level 3 qualifications serving the sector across the UK • The range of technical courses available is believed to be adequate to meet the needs of the sector, with a particular concentration in vehicle maintenance, repair and servicing • Employer input into private sector course design is felt to be significant amongst larger employers • According to official inspectorates (Ofsted, ALI, ETI, HMIe), public funded training provision serving the sector in the UK is good, with relatively few establishments criticised on any major issues Weaknesses Sector Characteristics • Average net margins/profitability in the sector are low (1½%), particularly in sub-sectors such as paint and body repair • Many sub-sectors require very high levels of capital investment, resulting from technology, supply chain and customer demands. As such, staff training and development is not always a priority • There is a tendency within the sector to focus on jobs rather than careers, especially within small businesses • Although there are some highly paid roles, remuneration levels in most occupations are depressed • There are a proportionately low number of sector businesses located in rural areas Recruitment • The image and reputation of certain Retail Automotive sub-sectors is not positive • Poor image and reputation has a negative impact on recruitment, with the sector too often acting as a repository for less able school leavers • The positive aspects of the sector are not promoted adequately by careers advisers • The level of graduate recruitment within the sector is low • The employment of individuals from other sectors who have transferable skills is limited Gap Analysis & Market Testing Page 61 of 73 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 that 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 62 of 73 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 co-operation 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 63 of 73 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 64 of 73 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 65 of 73 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 Solutions Mapped to Northern Irish National Priorities The outline draft solutions suggested in this Stage 3 report will be mapped to national Northern Irish 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 73 November 2006 Appendix 4: Northern Ireland Sector Skills Agreement Stages 1, 2 and 3 Reports Background to Evidence Gathering in Northern Ireland Methodological Overview This short paper outlines the methodological approaches taken by Automotive Skills to develop the evidence base in the first three stages of the Sector Skills Agreement (SSA) process in Northern Ireland. As the smallest constituent nation or region in the UK, Northern Ireland presents special challenges for the research of the downstream automotive sector, which is often difficult to engage with. These testing circumstances are accentuated by the overwhelming micro-business nature of the footprint. The following describes how Automotive Skills has attempted to address these issues. Stage 1 Extensive use was made of a range of secondary published data sources, including the SMS, ABI and LFS, to provide basic background quantitative and qualitative analysis and indicators for the sector in Northern Ireland. In addition Automotive Skills carried out a series of qualitative focus groups in Northern Ireland drawing on a range of individuals representing employers. These began in the late summer of 2005 and three were held in total. Extensive use was made of Automotive Skills’ Northern Ireland Employers Forum, which meets on a quarterly basis (see below). Furthermore a research organisation conducted 29 quantitative interviews to provide some topline additional data for use in Stage 1, which provided some useful comparative data across the UK. Lastly a short web-enabled, self-completion quantitative questionnaire was presented and interviews were invited from those who registered for Automotivate. Stage 2 Automotive Skills made extensive use of data supplied by DELNI in the construction of the Stage 2 analysis and reporting, as well as drawing on its own qualitative and quantitative research, which was carried out on its behalf by Ci Research. This additional primary qualitative (focus group) and quantitative research included 17 quantitative interviews. Gap Analysis & Market Testing Page 67 of 73 November 2006 Stage 3 Automotive Skills decided to carry out additional primary research as input to Stage 3 market testing. As part of this a programme of 26 independently moderated depth face-to-face interviews with employers was carried out across the UK in October 2006. Of these four additional qualitative depth interviews were carried out in Northern Ireland to explore further the interface between skills needs and potential solutions in the context of provision, ranking needs and priorities to develop the most appropriate approaches to solutions. Employers Forum Throughout the SSA process Automotive Skills has worked very closely with its Northern Ireland Employers Forum (NIEF). This NIEF has been established for more than two years and currently comprises 10 employers, a trade association – the IMI (professional body) and two stakeholders as its regular membership. Employers are drawn from a wide range of sub-sectors – both franchised and independent – including not only the largest employers in Northern Ireland, but also micro businesses. The NIEF meetings are held every quarter, usually in the Belfast area and are usually chaired by the forum Chairman, Nick Lindsay, including Automotive Skills’ CEO and the Scotland & Northern Ireland Manager. Other head office staff, such as Automotive Skills’ Head of Research, are also regular attendees and a range of other employers, providers and stakeholders are invited to specific meetings. The NIEF has been instrumental in formulating an understanding of the skills needs in Northern Ireland. Automotive Skills began involving the NIEF in the summer of 2005 when an independent moderator was used for a research focus group. Automotive Skills has consulted the NIEF on the SSA at every meeting since. Employer Census Because Automotive Skills recognises the need to better understand the detail of the employers in Northern Ireland, it is about to submit a Funding Application for Sectoral Development Support for the conduct of a census of the 2,000 or so employers in Automotive Skills’ footprint in Northern Ireland. This census would provide improved universe data that would facilitate more accurate grossingup of sample survey data to be representative of the universe of employers in Northern Ireland. Gap Analysis & Market Testing Page 68 of 73 November 2006 In addition it will provide more detailed employment information pertinent to the sector, especially in terms of occupations, turnover, recruitment and workforce development. Such information will assist greatly in the definition of baselines and reviews of change generated by the SSA implementation phase in Northern Ireland. Stages 4 and 5 and Beyond Automotive Skills will continue to develop the supporting evidence base through the Stage 4 employer negotiations and ensure that this is reflected through Stage 5 and the final SSA collaborative action plans for Northern Ireland. Automotive Skills looks forward to working will are partners to ensure a mutually beneficial implementation of the SSA. Gap Analysis & Market Testing Page 69 of 73 November 2006 Appendix 5: Northern Irish Stakeholders Engaged During the SSA process The following table lists partner organisations that Automotive Skills has already engaged with during Stage 3 of the SSA. Group and bi-lateral discussions and negotiations will develop through to the end of Stage 5 and beyond to ensure the SSA aligns with the Northern Irish policy agenda to create synergistic outcomes. Automotive Skills looks forward to continuing to work closely with all our partners and stakeholders in Northern Ireland. Figure 5: Stakeholders Engaged During SSA process 1 Invest Northern Ireland 2 Qualifications & Curriculum Authority Northern Ireland 3 Department for Employment & Learning 4 Department for Employment & Learning Sectoral Development 5 Learning & Skills Development Agency 6 Education and Training Inspectorate 7 Association of Northern Ireland Colleges 8 Council for the Curriculum Examinations and Assessment 9 Department of Enterprise Trade and Investment Northern Ireland 1 0 ICTU-NIC Gap Analysis & Market Testing Page 70 of 73 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. 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