If you speak to any employer about the skills challenges they face, one message comes through clearly: we have a great opportunity to improve the current system to better serve both employers and learners.
In our latest report, Skills for All: Ten Key Insights from Employers, The St Martin’s Group (SMG) in partnership with Ipsos gathered the views of more than 800 employers from two surveys across England.
The insights are impossible to ignore. Employers want an inclusive skills system that works across all ages, levels and sectors, which reflects the realities they face and supports growth.
It chimes with the recently published Skills England report Sector evidence on the growth and skills offer, which looked at employers’ experiences of the apprenticeship system. Both reports found small and medium enterprises (SMEs) face challenges in delivering apprenticeships and content, and delivery frameworks can be too restrictive. They often don’t help address the skills gaps that employers suffer.
When confronted with a skills gap, most employers (52 per cent Ipsos; 54 per cent SMG) don’t default to recruitment. They upskill existing staff. Skills policy that ignores the existing workforce risks missing the point entirely.
That’s why nearly half of employers (47 per cent Ipsos; 59 per cent SMG) say a national skills policy that trains all ages and all levels would most benefit their business.
Employers are not asking for special treatment; they’re asking for a system that reflects how they operate. And with 55 per cent (SMG) and 49 per cent (Ipsos) of employers struggling to recruit for higher-level roles, the case for lifelong learning and upskilling is undeniable.
Equally important is the call for flexibility. Whether it’s the structure of apprenticeship programmes or access to levy funds, employers want greater control. Most surveyed (53 per cent Ipsos, 70 per cent SMG) chose flexibility over the content and structure of programmes – a strong signal that a one-size-fits-all approach is not fit for purpose.
The growth and skills levy is a step in the right direction. With 62 per cent of Ipsos respondents (70 per cent SMG) supporting its use to fund vocational and higher technical qualifications and management and soft skills training, the appetite is there. But any reform must ensure levy flexibility does not come at the cost of apprenticeship volume or quality.
That balance matters. Apprenticeships remain a vital pathway into skilled employment. 80 per cent (SMG) and 79 per cent (Ipsos) of employers surveyed said they are likely to hire apprentices in the future.
But we must not force every skills solution through the apprenticeship route. Employers want high-quality short courses, pre-employment soft skills programmes and modular training that reflects real-world needs.
That need is especially acute for young people. Only one third (33 per cent) of large employers responding to SMG find it easy to develop young people’s soft skills, compared to 58 per cent of those who feel confident developing technical ones.
So we must invest in access-to-work initiatives, career-readiness programmes and interventions that bridge the gap between education and employment.
We need a system that works for SMEs and large employers alike. Our polling shows marked differences between them in their government engagement, the training they value and their likelihood to adopt new programmes such as foundation or shorter apprenticeships. A responsive skills system cannot be centrally prescribed and locally irrelevant.
That’s why more than 62 per cent of employers surveyed by Ipsos and 74 per cent by SMG want skills policy coordinated at both the national and local level. Employers understand their local labour markets and know what works. Government’s role should be to enable and incentivise.
The creation of Skills England, the evolution of the levy and a growing employer appetite for training all create fertile ground for reform. But for reform to be effective it must be rooted in employer reality.
We must back a system that supports inclusive growth – one that helps young people move into work, enables adults to reskill and upskill throughout their careers and gives employers the tools they need to invest in their workforce.
Your thoughts