Skills shortage? Employers should deal with it

Train your employees.

Most of us don’t think very hard about the basic skills we use in work each day – success in the modern workplace tends to be based on proficiencies and experience. Skills, however, are the foundation of proficiency and the OECD statistics released last week showed that the skills of the UK’s workforce are on the wane. The findings provoked furious finger-pointing in political, educational and business circles, but noticeably absent from the debate were the executives and small business owners for whom lack of skills in the workforce is not a theoretical problem, but a day-to-day issue of productivity and competitiveness.

Absent too was any sense of how the problem might be resolved. Even if we could magically conjure up the best school system in the world, it would take more than a generation for the workforce to renew itself completely. If business leaders are to ensure that our workforce has the skills to keep Britain’s companies internationally competitive, then we must accept that we cannot rely upon the schools system to turn out work-ready employees. It’s not the place of employers to teach basic literacy and numeracy skills but unwillingness to invest in the workforce will only exacerbate the problems that employers face.

The answer to a skills crisis is not to simplify jobs until they can be done by workers with no skills. That may have worked in the past, but consumer expectations and the service industries (wherein the majority of the UK’s low-skilled workers are employed) are changing, and those changes will require the opposite approach – building up workers’ skills so they can fulfil more complex roles. If business leaders respond proactively to these changes, then it may be that circumstances will bring about at least a partial solution to the UK’s skills shortage.

The first stages of such a process can already be observed taking place within large customer service operations, such as those serving banks, retailers and utilities. The way in which consumers interact with organisations like this has changed fundamentally, most obviously in their use of multiple communication channels (web, phone, social media etc). This immediately demands that staff handling enquiries have a much broader skillset, and a much greater degree of flexibility. In addition, consumers now have much higher expectations of how quickly requests ought to be resolved. In many industries, it’s no longer an option to have each step of a process carried out in different parts of the business. The only way to achieve the speed of response that consumers demand is to reduce the number of personnel involved. This means that any individual employee may handle an enquiry through any one of five or six communications channels, and then be required to collaborate with colleagues and use their own initiative to pursue and resolve the request itself.

Fulfilling multiple tasks in both customer-facing front-office and clerical back-office functions, employees with this type of mixed workload are often known as "middle office" workers, and are becoming more numerous. Their jobs are considerably more skilled than if workers were required to simply follow a call-centre script but they are not usually intended to be graduate positions. However, they do often require significant literacy, numeracy, problem solving and interpersonal skills, and it will do employers no good to wait for schools to improve their teaching of such skills. If they are to respond effectively to the expectations of today’s consumers, business leaders must invest in developing these skills amongst their employees. The good news is that modern eLearning and workforce management platforms make it economically viable to manage continuous personal development for a large number of employees.

This is a much greater level of investment than is normal in many service industries, but such investment is generally repaid in the form of lower staff turnover, fewer service glitches and much happier customers. In addition, a more skilled workforce is a more flexible workforce, better able to address fluctuating demands in different parts of a business, and a varied workstream allows mangers to spot those individuals who might have the aptitude and personality for leadership. Keeping track of the skills, capability and availability of a large number of staff calls for a sophisticated approach to workforce management, but the rewards far outweigh the costs. Millions of people are employed in clerical and customer service roles in the UK and a shift towards job roles with a greater degree of flexibility would make a significant contribution to building up the skills base of the UK’s workforce. That would be good for employees, good for companies, and good for the economy.

Photograph: Getty Images

Claire Richardson is VP at Verint

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An unmatched font of knowledge

Edinburgh’s global reputation as a knowledge economy is rooted in the performance and international outlook of its four universities.

As sociologist-turned US Senator Daniel Patrick Moynihan recognised when asked how to create a world-class city, a strong academic offering is pivotal to any forward-looking, ambitious city. “Build a university,” he said, “and wait 200 years.” He recognised the long-term return such an investment can deliver; how a renowned academic institution can help attract the world. However, in today’s increasingly globalised higher education sector, world-class universities no longer rely on the world coming to come to them – their outlook is increasingly international.

Boasting four world-class universities, Edinburgh not only attracts and retains students from around the world, but also increasingly exports its own distinctively Scottish brand of academic excellence. In fact, 53.9% of the city’s working age population is educated to degree level.

In the most recent QS World University Rankings, the University of Edinburgh was named as the 21st best university in the world, reflecting its reputation for research and teaching. It’s a fact reflected in the latest UK Research Exercise Framework (REF), conducted in 2014, which judged 96% of its academic departments to be producing world-leading research.

Innovation engine

Measured across the UK, annual Gross Value Added (GVA) by University of Edinburgh start-ups contributes more than £164m to the UK economy. In fact, of 262 companies to emerge from the university since the 1960s, 81% remain active today, employing more than 2,700 staff globally. That performance places the University of Edinburgh ahead of institutions such as MIT in terms of the number of start-ups it generates; an innovation hothouse that underlines why one in four graduates remain in Edinburgh and why blue chip brands such as Amazon, IBM and Microsoft all have R&D facilities in the city.

One such spin out making its mark is PureLiFi, founded by Professor Harald Haas to commercialise his groundbreaking research on data transmission using the visible light spectrum. With data transfer speeds 10,000 times faster than radio waves, LiFi not only enables bandwidths of 1 Gigabit/sec but is also far more secure.

Edinburgh’s universities play a pivotal role in the local economy. Through its core operations, knowledge transfer activities and world-class research the University generated £4.9bn in GVA and 44,500 jobs globally, when accounting for international alumni.

With £1.4bn earmarked for estate development over the next 10 years, the University of Edinburgh remains the city’s largest property developer. Its extensive programme of investment includes the soon-to-open Higgs Centre for Innovation. A partnership with the UK Astronomy Technology Centre, the new centre will open next year and will supply business incubation support for potential big data and space technology applications, enabling start-ups to realise the commercial potential of applied research in subjects such as particle physics.

It’s a story of innovation that is mirrored across Edinburgh’s academic landscape. Each university has carved its own areas of academic excellence and research expertise, such as the University of Edinburgh’s renowned School of Informatics, ranked among the world’s elite institutions for Computer Science. 

The future of energy

Research conducted into the economic impact of Heriot-Watt University demonstrated that it generates £278m in annual GVA for the Scottish economy and directly supports more than 6,000 jobs.

Set in 380-acres of picturesque parkland, Heriot-Watt University incorporates the Edinburgh Research Park, the first science park of its kind in the UK and now home to more than 40 companies.

Consistently ranked in the top 25% of UK universities, Heriot-Watt University enjoys an increasingly international reputation underpinned by a strong track record in research. 82% of the institution’s research is considered world-class (REF) – a fact reflected in a record breaking year for the university, attracting £40.6m in research funding in 2015. With an expanding campus in Dubai and last year’s opening of a £35m campus in Malaysia, Heriot-Watt is now among the UK’s top five universities in terms of international presence and numbers of international students.

"In 2015, Heriot-Watt University was ranked 34th overall in the QS ‘Top 50 under 50’ world rankings." 

Its established strengths in industry-related research will be further boosted with the imminent opening of the £20m Lyell Centre. It will become the Scottish headquarters of the British Geological Survey, and research will focus on global issues such as energy supply, environmental impact and climate change. As well as providing laboratory facilities, the new centre will feature a 50,000 litre climate change research aquarium, the UK Natural Environment Research Council Centre for Doctoral Training (CDT) in Oil and Gas, and the Shell Centre for Exploration Geoscience.

International appeal

An increasingly global outlook, supported by a bold international strategy, is helping to drive Edinburgh Napier University’s growth. The university now has more than 4,500 students studying its overseas programmes, through partnerships with institutions in Hong Kong, Singapore, China, Sri Lanka and India.

Edinburgh Napier has been present in Hong Kong for more than 20 years and its impact grows year-on-year. Already the UK’s largest higher education provider in the territory, more than 1,500 students graduated in 2015 alone.

In terms of world-leading research, Edinburgh Napier continues to make its mark, with the REF judging 54% of its research to be either world-class or internationally excellent in 2014. The assessment singled out particular strengths in Earth Systems and Environmental Sciences, where it was rated the top UK modern university for research impact. Taking into account research, knowledge exchange, as well as student and staff spending, Edinburgh Napier University generates in excess of £201.9m GVA and supports 2,897 jobs in the city economy.

On the south-east side of Edinburgh, Queen Margaret University is Scotland’s first university to have an on-campus Business Gateway, highlighting the emphasis placed on business creation and innovation.

QMU moved up 49 places overall in the 2014 REF, taking it to 80th place in The Times’ rankings for research excellence in the UK. The Framework scored 58% of Queen Margaret’s research as either world-leading or internationally excellent, especially in relation to Speech and Language Sciences, where the University is ranked 2nd in the UK.

In terms of its international appeal, one in five of Queen Margaret’s students now comes from outside the EU, and it is also expanding its overseas programme offer, which already sees courses delivered in Greece, India, Nepal, Saudi Arabia and Singapore.

With 820 years of collective academic excellence to export to the world, Edinburgh enjoys a truly privileged position in the evolving story of academic globalisation and the commercialisation of world-class research and innovation. If he were still around today, Senator Moynihan would no doubt agree – a world-class city indeed.

For further information www.investinedinburgh.com