## Employer Skills Survey 2015 Uk Slide Pack Contents

Background
Employers' experiences of skill shortages
Retention difficulties
The internal skills challenge Under-utilisation of skills
Employer investment in training and skills
High Performance Working Practices and Product Market Strategies
Conclusions
3 8
19
24
37
43
59
65

## Ess 2015 - Overview

•
ESS 2015 is the third time the survey has been run 
at UK-level 
•
The 2015 survey covers establishments with 2 or more people working at them
•
The 2011 survey included establishments with one employee - these were not covered in 2013 or 2015. 
•
Where comparisons are made with 2011 or 2013 findings, these are based on re-weighted 2011 data (configured to represent the 2+ employment business population used in 2013 and 2015).

## Achieved Interviews / Confidence Intervals

'For a question asked of all respondents where the survey result is 50%, we are 95% 
confident that the true figure lies within the range 49.68% to 50.32%'

Population
Number of 
interviews
(Maximum) 
Sampling 
Error
UK
1,766,838
91,210
+/-0.32
By country England 
1,488,171
75,129
+/-0.36
Northern Ireland 
54,518
4,019
+/-1.55
Scotland 
142,947
6,035
+/-1.26
Wales 
81,202
6,027
+/-1.26
By size of establishment 2-4 
907,944
20,527
+/-0.68
5-24
668,618
49,584
+/-0.44
25-49 
101,082
11,657
+/-0.91
50-99
50,432
5,836
+/-1.28
100-249
26,900
2,689
+/-1.89
250+ 
11,812
917
+/-3.24
Population
Number of 
interviews
(Maximum) 
Sampling 
Error
By sector Agriculture
97,359
3,632
+/-1.63
Manufacturing
100,262
6,998
+/-1.17
Electricity, Gas and Water
10,151
1,041
+/-3.04
Construction
158,790
7,474
+/-1.13
Wholesale and Retail
371,231
16,126
+/-0.77
Hotels & Restaurants
159,893
8,920
+/-1.04
Transport and Communications
128,789
8,936
+/-1.04
Financial Services
38,259
2,549
+/-1.94
Business Services
363,790
13,143
+/-0.85
Public Administration
19,814
947
+/-3.18
Education
58,124
5,515
+/-1.32
Health and Social Work
132,505
8,556
+/-1.06
Arts and Other Services 
127,871
7,373
+/-1.14

## Profile Of Survey Population Establishments Vs. Employment - Uk Wide* Profile Of Survey Population Establishments Vs. Employment - By Country

Base: All establishments: England (75,129), Northern Ireland (4,019), Scotland (6,035), Wales (6,027)

## Key Definitions Section 1: Employers' Experiences Of Skill Shortages Incidence And Density Of Vacancies By Country Incidence And Density Of Vacancies By Sector

Social Work
Restaurants 
Services
Gas & Water  
Services 
2013:
(5,796)
(942)
(8,460)
(8,888)
(7,358)
(1,148)
(7,560)
(3,407)
(14,011)
(6,890)
(2,330)
(17,287)
(7,202)
(5,515)
2015:
(947)
(8,556)
(8,920)
(7,373)
(1,041)
(6,998)
(3,632)
(13,143)
(8,936)
(2,549)
(16,126)
(7,474)
Transport & 
Comms  
Financial 
Services 
Wholesale & 
Retail  

## Incidence And Density Of Skill-Shortage Vacancies By Country Density Of Skill-Shortage Vacancies By Sector Density Of Skill-Shortage Vacancies By Occupation

| Managers       | Professionals   | Associate   |
|----------------|-----------------|-------------|
| Professionals  |                 |             |
| Admin and      |                 |             |
| Clerical       |                 |             |
| Skilled trades | Caring, leisure |             |
| et al          |                 |             |
| 2011:          |                 |             |
| (987)          | (3,025)         | (3,179)     |
| (2,844)        |                 |             |
| (1,168)        | (3,594)         | (3,406)     |
| (3,171)        |                 |             |
| (1,335)        | 2015:           |             |
| 2013:          |                 |             |
| (4,047)        | (4,010)         | (3,231)     |
| (4,491)        |                 |             |
| Elementary   |
|--------------|
| Service      |
| Machine      |
| Operatives   |

Base: All establishments with vacancies in each occupation (as shown)

## Density Of Skills-Shortage Vacancies By Occupation And Sector

Base: All establishments with vacancies within each occupation by sector

## Technical And Practical Skills Lacking Among Applicants People And Personal Skills Lacking Among Applicants Impact Of Skill-Shortage Vacancies

Base (2013/2015): All establishments with hard-to-fill vacancies that are all as a result of skill shortages  (4,675 / 6,469)

## Action Taken To Fill Skill-Shortage Vacancies Section 2: Retention Difficulties Incidence Of Retention Difficulties - By Country And Size 8% Incidence Of Retention Difficulties By Sector Occupation Most Affected By Retention Difficulties Reasons Why It Is Difficult To Retain Staff Section 3: The Internal Skills Challenge Incidence And Density Of Skills Gaps By Country Incidence And Density Of Skills Gaps By Establishment Size

| 2011 2013 2015                   | 2011 2013                                              | 205      | 2011 2013 2015   | 2011 2013 2015   | 2011 2013 2015   | 2011 2013 2015   |
|----------------------------------|--------------------------------------------------------|----------|------------------|------------------|------------------|------------------|
| 2 to 4                           | 5 to 24                                                | 25 to 49 | 50 to 99         | 100 to 249       | 250+             |                  |
| 2011:                            | (17,905)                                               | (47,770) | (10,239)         | (5,712)          | (3,270)          | (1,626)          |
| 2013:                   (19,058) | (51,565)                                               | (10,947) | (5,584)          | (2,938)          | (1,187)          |                  |
| 2015:                   (20,527) | (49,584)                                      (11,657) | (5,836)  | (2,689)          | (917)            |                  |                  |

## Incidence And Density Of Skills Gaps By Sector

| Manufacturing   | Public Admin   | Wholesale &    |
|-----------------|----------------|----------------|
| Retail          |                |                |
| Hotels &        |                |                |
| Restaurants     |                |                |
| Education       | Construction   | Transport &    |
| Comms           |                |                |
| Financial       |                |                |
| Services        |                |                |
| Agriculture     | Health &       |                |
| Social Work     |                |                |
| (8,888)         | (5,796)        | (7,560)        |
| 2015:           |                |                |
| (947)           | (8,920)        | (5,515)        |
Electricity, Gas 
& Water
Business 
Services 
Arts & Other 
Services

## Skills Gaps Density By Occupation

102,100
88,300
| UK Overall    | Managers   | Professionals   | Associate   |
|---------------|------------|-----------------|-------------|
| Professionals |            |                 |             |
| Admin and     |            |                 |             |
| Clerical      |            |                 |             |
| (87,946)      | (17,407)   | (12,577)        | (53,759)    |
| 2015:         |            |                 |             |
| (91,210)      | (87,590)   | (17,483)        | (13,309)    |
| Elementary      |
|-----------------|
| al              |
| Sales and Cust. |
| Service         |
| Machine         |
| Operatives      |
| (14,059)        |
| (14,105)        |

Base: All establishments with staff in each occupation (as shown)

## Main Causes Of Skills Gaps Impact Of Skills Gaps By Establishment Size Impact Of Skills Gaps

Base: All establishments with skills gaps (18,265)     

## Technical And Practical Skills That Need Improving Among Staff With Skills Gaps People And Personal Skills That Need Improving Among Staff With Skills Gaps Action Taken To Overcome Skills Gaps Changes In Density Of Ssvs And Skills Gaps Over Time

(7,202)
(2,330)
(942)
(7,358)
(8,888)
(1,148)
(5,796)
(17,287)
(6,890)
(7,474)
(2,549)
(947)
(7,373)
(13,143)
(6,998)
(8,556)
(3,632)
(8,920)
(1,041)
(5,515)
(16,126)
(8,936)
2013: 2015:

## Section 4: Under-Utilisation Incidence And Density Of Skills Under-Utilisation By Country And Size Incidence And Density Of Skills Under-Utilisation By Establishment Size Incidence And Density Of Skills Under-Utilisation By Sector Occupations Where Under-Utilisation Is Most Prevalent Reasons Why Staff Are Working In Roles For Which They Have Excess Qualifications And Skills Section 5: Employer Investment In Training And Skills Training Equilibrium: Employers' Interest In Providing More Training Than They Were Able To

*Note training employers responding 'Don't know' have been included in the group 'Wanted to undertake more training' on final measure

## Types Of Training And Workforce Development Provided

| (91,279)   | (72,255)   | (4,014)   | (6,014)   | (5,996)   |
|------------|------------|-----------|-----------|-----------|
| (91,210)   | (75,129)   | (4,019)   | (6,035)   | (6,027)   |
| 2015:      |            |           |           |           |
|                               | 2-4                                                      | 5-24     | 25-49    | 50-99   | 100-249   | 250+    |
|-------------------------------|----------------------------------------------------------|----------|----------|---------|-----------|---------|
| 2011:                         | (17,905)                                                 | (47,770) | (10,239) | (5,712) | (3,270)   | (1,626) |
| 2013:                (19,058) | (51,565)                                                 | (10,947) | (5,584)  | (2,938) | (1,187)   |         |
| 2015:                (20,527) | (49,584)                                        (11,657) | (5,836)  | (2,689)  | (917)   |           |         |

## Staff Trained By Sector

| Agriculture   | Manufacturing Electricity, Gas   |
|---------------|----------------------------------|
| & Water       |                                  |
| Construction  | Wholesale &                      |
| Retail        |                                  |
| Hotels &      |                                  |
| Restaurants   |                                  |
| Transport &   |                                  |
| Comms         |                                  |
| (3,407)       | (7,560)                          |
| (939)         | (7,892)                          |
| 2011:         |                                  |
| 2013:         |                                  |
| 2015:         |                                  |
| (3,632)       |                                  |
| (6,998)       |                                  |
| (1,041)       | (7,474)                          |
Financial
Services
Business
Services
Public Admin
Education
Health &
Social Work
Arts & Other
Services

## Proportion Of Staff Trained By Occupation

| Managers         | Professionals   | Assoc.           |
|------------------|-----------------|------------------|
| Professionals    |                 |                  |
| Admin / clerical | Skilled Trades  | Caring, Leisure, |
| Other services   |                 |                  |
| (87,946)         | (17,407)        | (12,577)         |
| (83,138)         | (16,360)        | (13,753)         |
| 2013:            |                 |                  |
| 2015:            | (87,590)        | (17,483)         |
| Machine operatives                                                |
|-------------------------------------------------------------------|
| service                                                           |
| Base: All establishments with staff in each occupation (as shown) |

## Training Days

|                  |      |      |       |   Days per person trained |   Total training days |
|------------------|------|------|-------|---------------------------|-----------------------|
| 2011             | 2013 | 2015 | 2011  |                      2013 |                  2015 |
| 2015 as a % of   |      |      |       |                           |                       |
| 2013             |      |      |       |                           |                       |
| UK               |      |      |       |                           |                       |
| 7.8              |      |      |       |                           |                       |
| (66,916)         |      |      |       |                           |                       |
| 6.7              |      |      |       |                           |                       |
| (69,842)         |      |      |       |                           |                       |
| 6.8              |      |      |       |                           |                       |
| (69,541)         |      |      |       |                           |                       |
| 115m             | 113m | 118m | +4.1% |                           |                       |
| England          |      |      |       |                           |                       |
| 7.9              |      |      |       |                           |                       |
| (57,117)         |      |      |       |                           |                       |
| 6.7              |      |      |       |                           |                       |
| (57,787)         |      |      |       |                           |                       |
| 6.8              |      |      |       |                           |                       |
| (57,422)         |      |      |       |                           |                       |
| 97m              | 95m  | 100m | +5.2% |                           |                       |
| Northern Ireland |      |      |       |                           |                       |
| 6.3              |      |      |       |                           |                       |
| (2,941)          |      |      |       |                           |                       |
| 6.3              |      |      |       |                           |                       |
| (2,894)          |      |      |       |                           |                       |
| 5.6              |      |      |       |                           |                       |
| (2,869)          |      |      |       |                           |                       |
| 3m               | 3m   | 3m   | -3.7% |                           |                       |
| Scotland         |      |      |       |                           |                       |
| 7.3              |      |      |       |                           |                       |
| (2,177)          |      |      |       |                           |                       |
| 6.7              |      |      |       |                           |                       |
| (4,884)          |      |      |       |                           |                       |
| 6.7              |      |      |       |                           |                       |
| (4,894)          |      |      |       |                           |                       |
| 10m              | 10m  | 10m  | -1.5% |                           |                       |
| Wales            |      |      |       |                           |                       |
| 7.5              |      |      |       |                           |                       |
| (4,681)          |      |      |       |                           |                       |
| 7.7              |      |      |       |                           |                       |
| (4,277)          |      |      |       |                           |                       |
| 7.2              |      |      |       |                           |                       |
| (4,356)          |      |      |       |                           |                       |
| 5m               | 6m   | 5m   | -2.3% |                           |                       |

## Reasons For Not Providing Any Training

of employers report barriers relating to (perceived) low demand

## Reasons For Not Providing Further Training Training And Workforce Development - Summary

| UK figures                                 | 2011     | 2013             | 2015     |
|--------------------------------------------|----------|------------------|----------|
| % of employers that train                  | 65%      | 66%              | 66%      |
| % of employers that train off-the-job      | 47%      | 49%              | 49%      |
| % that                                     | only     | train on-the-job | 19%      |
| % of staff trained over the last 12 months | 55%      | 62%              | 63%      |
| Days training per person trained           | 7.8 days | 6.7 days         | 6.8 days |
| Total training days provided               | 115m     | 113m             | 118m     |

Base (2011/2013/2015): All establishments (86,522 / 91,279 / 91,210)

## Investment In Training

| 2011                                                          | 2013     |
|---------------------------------------------------------------|----------|
| 2015                                                          |          |
| Unweighted Base:                                              |          |
| (11,027)                                                      | (12,522) |
| (12,614)                                                      |          |
| £bn                                                           |          |
| %                                                             |          |
| £bn                                                           |          |
| %                                                             |          |
| £bn                                                           |          |
| %                                                             |          |
| Total training expenditure                                    |          |
| £43.8bn                                                       | 100      |
| £45.4bn                                                       | 100      |
| Off-the-job training: total                                   |          |
| £21.1bn                                                       | 48       |
| £22.9bn                                                       | 50       |
| Off-the-job training: Course-related: total                   |          |
| £17.6bn                                                       | 40       |
| £19.7bn                                                       | 43       |
| Trainee labour costs                                          |          |
| £4.7bn                                                        | 11       |
| £5.4bn                                                        | 12       |
| Fees to external providers                                    |          |
| £2.7bn                                                        | 6        |
| £2.2bn                                                        | 5        |
| On-site training centre                                       |          |
| £2.9bn                                                        | 7        |
| £3.0bn                                                        | 7        |
| Off-site training centre (in the same company)                |          |
| £0.6bn                                                        | 1        |
| £0.7bn                                                        | 2        |
| Training management                                           |          |
| £6.1bn                                                        | 14       |
| £7.7bn                                                        | 17       |
| Non-training centre equipment and materials                   |          |
| £0.4bn                                                        | 1        |
| £0.4bn                                                        | 1        |
| Travel and subsistence                                        |          |
| £0.4bn                                                        | 1        |
| £0.4bn                                                        | 1        |
| Levies minus grants                                           |          |
| -£0.3bn                                                       | -1       |
| -£0.2bn                                                       | -*       |
| Off-the-job training: other (seminars, workshops etc.): total |          |
| £3.5bn                                                        | 8        |
| £3.2bn                                                        | 7        |
| Trainee labour costs                                          |          |
| £2.5bn                                                        | 6        |
| £2.3bn                                                        | 5        |
| Fees to external providers                                    |          |
| £1.0bn                                                        | 2        |
| £0.8bn                                                        | 2        |
| On-the-job training: Total                                    |          |
| £22.7bn                                                       | 52       |
| £22.6bn                                                       | 50       |
| Trainee labour costs                                          |          |
| £14.2bn                                                       | 32       |
| £13.9bn                                                       |          |
| 31                                                            |          |
| Trainers' labour costs                                        |          |
| £8.6bn                                                        | 20       |
| £8.7bn                                                        | 19       |

Base: All establishments that train (Investment in Training follow up survey, as shown)

## Training Expenditure By Size

| 2011:   | (11,027)   | (1,774)   | (6,542)   |
|---------|------------|-----------|-----------|
| 2013:   | (12,522)   | (2,317)   | (6,953)   |
| 2015:   | (12,614)   | (1,963)   | (7,661)   |
| (1,452)   | (708)   | (551)   |
|-----------|---------|---------|
| (1,722)   | (928)   | (602)   |
| (1,779)   | (782)   | (429)   |

## Section 6: High Performance Working Practices And Product Market Strategies Overlap Between High Performance Working Employers And Those That Adopt High/Very High Product Market Strategies Characteristics Of Hpw Employers

…yet are more likely to have skills gaps among their workforce…
HPW employers are more active in the recruitment market and find it easier to fill their vacancies…
…and are much **more likely to train** their staff…

## Product Market Strategy

| Low (8 to 10)        |   13 |   9 |
|----------------------|------|-----|
| Medium (11 to 13)    |   25 |  22 |
| High (14 to 16)      |   29 |  31 |
| Very high (17 to 20) |   16 |  22 |

## Characteristics Of High Pms Employers Characteristics Of High Pms Employers Section 7: Conclusions Developments In The Uk Economy And The Changing Nature Of Work

•
The UK has witnessed job creation at a faster rate than any other EU country over the last 2 years. Reflecting this growth, there has been a **steep rise in vacancy levels** among employers - from 
655,000 vacancies at the time of the survey in 2013 to 927,000 in 2015.
•
Approaching a quarter (23 per cent) of these vacancies were due to applicants lacking the requisite skills.
•
However, this growth has been accompanied by stalling productivity levels - the number of skills gaps 
among existing staff has remained relatively stable, at 1.4 million employees (5.0% of the total workforce).
•
The **nature of work** is evolving at a rapid rate - **new technology** is driving change in the workplace, with **complex analytical skills** and **basic IT skills** lacking in a number of applicants and existing staff. 
•
The survey also highlights the ongoing challenge of **soft, people and personal skills**, in particular 
time management and **prioritisation of tasks**. This points to the **growing complexity of job roles**, 
across all occupations, requiring individuals to juggle multiple strands of work and responsibility.
•
Employers are responding through training, with **increased use of e-learning**, but there is clear demand for training that is geared more specifically to the requirements of an evolving workplace.

## Leadership And Management

•
Just over a third of training employers (37%) were investing in the skills of their Managers
through the provision of management training.
•
Businesses do not face particular difficulties in retaining management talent but it is the occupational grouping whose skills are **most likely to be under-used**.
•
The survey provides a number of further indications that improving management practice 
should be a priority for UK business.
•
Management and leadership type skills (managing and motivating other staff, setting 
objectives/planning resources) accounted for **over half of all skills gaps** (58%) 
identified
•
Good leadership could in particular serve to support growth among **small businesses**, 
where the presence of poor managerial practices is more common. 
•
Only one in eight of all businesses with fewer than 5 employees had arranged management training in the last 12 months. There is clearly more work to be done to ensure that small businesses have the support they need improve their managerial practices.

## Skills For A Productive Workforce

•
Two in five establishments with skill-shortage vacancies reported a delay in developing new 
products or services and 35% reported **difficulties in innovating working practices**. 
•
These impacts were reported less frequently for **skills gaps** (though were still cited by 
17% and 24% respectively of establishments with skills gaps), perhaps reflecting the occupations in which skill-shortage vacancies and skills gaps are most likely to arise.
•
Skills that are required to drive forward innovation within businesses often appear to be lacking: 
•
Two in five of all skill-shortage vacancies and skills gaps were attributed to individuals 
lacking the ability to solve complex problems. Within existing staff, this was 
particularly apparent for those in high-skill occupations, such as Managers and 
Professionals.
•
Just over one in ten employers (12%) were operating **HPW practices** and identified a clear 
benefit associated with the adoption of HPW, in that these employers were better able to fill their vacancies.
For more information contact UKCES Employer Surveys
0207 227 7800 Employer.surveys@ukces.org.uk @ukces