Skills shortages still loom large

Employers across the construction and engineering sectors see skills shortages as a greater threat to business performance than factors such as rising oil prices, according to a new poll.

Employers across the construction and engineering sectors see skills' shortages as a greater threat to business performance than highly publicised threats such as rising oil prices, according to a new business poll.

The poll into Foundation Degrees reveals that a staggering nine out of ten employers (92%) predict that their business will be threatened in 2006 by a lack of skilled personnel to fill recruitment needs.

Furthermore, four out of five employers (82%) believe that they may suffer from a lack of skills amongst their existing workforce.

However, despite recognising the enormity of the skills' threat, still only 9% have actually been involved to date in designing courses to help combat the skills issues that their business faces.

Given that one of the greatest threats to business in 2006 is judged to be increased competition in the marketplace (97%), employers in the construction and engineering sectors are proving slow to take action to seize the skills' initiative and increase their competitive edge.

With one in four employers in across these sectors (23%) doubting that they will meet business targets in the next financial year, this research serves as a call-to-action to employers to take control of their own business' success.

The poll also identifies that the two sectors do back vocational qualifications as a concept, with 60% supporting vocational training provision.

91% believe that there is a clear link between training and profitability and 88% agree that encouraging staff to increase their skills helps to increase employee satisfaction and retention.

93% state that the combination of academic knowledge and work-based experience - offered by Foundation Degrees - provides the best preparation for graduates entering the workforce.

However, in spite of this, employers are still not going far enough: more than one in three (40%) are not involved with any kind of vocational training for their workforce, let alone committed to the design of courses to help meet their specific business needs.

Bill Rammell, Minister for Lifelong Learning, Further and Higher Education, said: "I am pleased to see employers in the construction and engineering sectors continue to back vocational qualifications".

"I want more UK business leaders to come on board and commit to the design and delivery of Foundation Degrees".

"Foundation Degrees were introduced in 2001, designed in conjunction with business so that they are specifically tailored to individual employers' needs and can help bridge sector-specific skills gaps".

"Feedback from early adopters such as JCB and Jarvis show that these qualifications have real, quantifiable benefits to the bottom line".

"We'd like to see more employers seizing the skills initiative - and reaping the benefits".

A series of interviews undertaken amongst employers currently involved in the design and delivery of Foundation Degree courses across a number of sectors bear witness to the real benefits employers garner by tailoring courses to their business needs.

The HR and company directors interviewed urge their industry peers to commit to the design of relevant vocational training provision and testify to the tangible benefits their business has realised.

JCB, the worldwide construction, agricultural and materials handling equipment engineer, prides itself on its reputation for great ideas, brilliant engineering solutions and superb service that make up its worldwide performance standard.

To date, 24 JCB employees are taking part in the Foundation Degree in applied technology.

Since the inception of the course in 2004, they have maintained a continuing dialogue with the local further education institute to receive updates from tutors and feedback on changing needs and requirements.

Lee Jankovskis, Learning and Development Advisor (Engineering) at JCB comments: "We became involved with Foundation Degrees since they offered the opportunity for us to develop modules that were directly beneficial to our business needs".

He is a firm advocate of the benefits that the qualification can offer to other businesses and says of his own experience with the qualification: "Foundation Degrees are a great opportunity for employees to develop themselves and push the business forwards".

"The Foundation Degree is helping bridge the theoretical gap in those people who have tremendous practical skills but may need to consolidate in other areas".

Jarvis, the rail, plant and road infrastructure support services group, has been involved with the design and delivery of Foundation Degrees since their inception.

In co-operation with Sheffield Hallam, Jarvis has helped put together a qualification that meets its specific skills needs.

So far 25 existing employees (fees paid) have taken the part time route, and 22 on the full time route (bursary to cover course fees - 7 months at Sheffield Hallam, then 5 months with one of the industry partners).

In the second year the intake was over 100.

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