1 The role of work-based learning in promoting productivity10th February OECD workshop Lesley Giles Deputy Director, UK Commission for Employment and Skills

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4 Are our skills programmes fit for the futureAre our skills programmes fit for the future? Are we responding to future developments at work?

5 Are our skills programmes fit for the futureAre our skills programmes fit for the future? Are we responding to future developments at work?

6 Skills matter; skills play a vital role in performance Firms in the UK that don’t invest in training, are on average... And this varies by sector... Manufacturing Construction Hotels and Restaurants Retail and Wholesale Transport and Comms Likelihood of business failure 2x 4x 9x Twice as likely to fail

7 Productivity has been stagnant since the recession Unlike previous recessions; but employment is strong Source: ONS Labour Productivity and ONS Labour Market Statistics

8 Not unique to the UK, but we have been hit hardSource: UKCES calculations from ONS International Comparisons of Productivity, First Estimates – 2014, Table 3

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10 Employers are investing in skills but is this in the right way?

11 Apprenticeships not realising full potential Take up not matching other countries

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13 Business–led initiatives encourage sharing of good practice“Some of the country’s most senior business leaders, convened by Sir Charlie Mayfield, Chairman of the John Lewis Partnership, have written to the government making the case for taking forward a business-led action group for productivity. The work will be practical and grounded, driving direct action to enhance productivity in different sectors and workplaces across the UK. The group has offered to report to the Chancellor and the Secretary of State for Business by the end of the year.” (para 2.13)

14 Thank you www.gov.uk/ukces [email protected] [email protected]

15 Work-based learning in vocational education and trainingViktória Kis (OECD) London, 10 February 2016

16 Work-based learning: bridging two worlds

17 Work-based learning in VET: the broader OECD projectWBL and productivity London, 10/02/2016 May 2016 Costs and benefits of apprenticeships Apprenticeships: incentives and implementation Bern, 27-29/04/2016 Recognition of skills acquired through WBL Baltimore, July 2016 WBL and school-to-work transition for at-risk youth Career guidance and information Scotland, September 2016 December 2016

18 Designing work-based learning schemes to increase productivityViktória Kis (OECD) London, 10 February 2016

19 Productivity gains over time: variation across occupations

20 Employers make losses first then reap benefits

21 Longer duration – increased benefits for employers, opportunity costs for trainees

22 Policy challenges and practicesEmployers Trainees Balancing the interests of employers and trainees in the design of WBL schemes Adapting WBL schemes to specific occupation, firm or learner characteristics? How are different stakeholders involved in the design of WBL schemes? Do you have any experience with recent reforms? What should be called an “apprenticeship”?

23 Work-based learning shemes in SwitzerlandSarah Daepp, 10 February 2016

24 Vocational education & trainingFully integrated in CH education system Steered by 3 equal partners 2/3 of age cohort enters VET programmes Work- & school based schemes After compulsory education – age 15 Secondary level 2 year programme Federal VET Certificate 3-4 year programme Federal VET Diploma

25 Swiss dual-track approach to VETTheory Classroom instructions at VET-school (1-2 days per week) Preparatory course for FVB Practice In-company training (3-4 days per week) Industry courses

26 Swiss education system

27 VPET: 1 mission – 3 partnersCantons Implementation and Supervision Confederation Strategic management and development Private sector Training content and apprenticeship positions

28 Thank you for your attention!

29 Supporting firms in creating strong learning environmentsViktória Kis (OECD) London, 10 February 2016

30 Case 1 : Firm achieves productivity increases slowly

31 Case 2 : Firm achieves productivity increases faster

32 Policy challenges and practicesImproving firms’ capacity to effectively increase productivity during WBL Potential wider benefits for the company? What are firms’ challenges in delivering high-quality WBL? What initiatives support firms to provide high-quality WBL? What are the wider benefits of effectively managed WBL?

33 Norwegian experience with supporting firms and training offices in the delivery of high-quality work-based learning. Training offices in VET in Norway Mr Karl Skaar Norwegian Directorate for Education and Training

34 Apprenticeships in Norway Norway’s experience with training offices QAContent Apprenticeships in Norway Norway’s experience with training offices QA

35 Norway –key figures and administrative structure

36 Norway –key figures and administrative structure5,2 million people Labour market structure: - 99 % SMEs - 83 % of enterprises have fewer than 5 employees 3 political and administrative levels: state, county, municipality Upper secondary VET

37 Upper secondary school and work-based learningYear 1 Year 2 Year 3 Year 4 VG1 VG2 VG3 General university and college admission certification 50% VG1 VG2 VG3 16 years old Work-based learning 50% Craft certificate Advanced craft certificate Journeyman's certificate School and work-based learning Work-based learning (5years)

38 Nine VET programmes Building and Construction Design, Arts and CraftsElectrical Trades Health and Social Care Media and Communication Agriculture, Fishing and Forestry Restaurant and Food Processing Service and Transport Technical and Industrial Production Year 1 VG1 16 years old There are more than 180 crafts/subjects in which one can take a trade- or journeyman’s certificate

39 The 2 + 2 model Training VG2 VG1 Productive workYear 1 Year 2 Year 3 Year 4 VG1 VG2 Training Productive work school work-based learning

40 Apprenticeship/work-based learningLegal framework describes learning outcomes The apprentices (trainee) get their training in one or several training enterprises are paid employees salary increases from 30% to 80% of a skilled worker’s salary Training enterprises use apprenticeships as a recruitment strategy receive a state grant for each apprentice (2016: around € 14,000) outsource training-related administrative tasks to umbrella organisation's: VET agencies/training offices can follow training programs for the apprentice supervisors

41 Training program for apprentice supervisorsOrganiser: The County 0,5 day - 5 days Examples of topics How the VET is organised How to instruct and guid the trainees How to improve the WBL Evaluation and feedback to the trainees National guidance for training the supervisors:

42 Training offices

43 250 training offices (register: https://nor.udir.no/ ) Average per office: 80 owners/members 120 contract of trainees Organise 80% of all trainees on the secondary school level Most established after 1990 (first around 1970) Types of training offices: Municipal (7%) Regional (include many VET programmes) (18%) Line of business (include only one VET programme) (75%)

44 Organising of the training OfficesOwnership of Training Offices Limited by shares/Private Enterprise 15% Co-operative/Foundation 13% Team/Association 72% 100% Board: Members/owners Employers' organisation County/schools/Unions Financing the training offices: 50% of the state grant for each trainee on secondary school level (main source) Member fee Course fee

45 How do the Training offices operateRole between: Close connected to the industry/trade association Close connected to the county administration Approve establishment to receive trainees Recruit trainees Approve contract with the trainee Follow up the tranee Teach the trainees Follow up the coach and the tranees Organise the the qualifying examination

46 Main reason for the industry to be a member of the training officeWhy the industries are members of the training office? Percentage Help to follow up the trainees 37 % Help with administrative duties 18% Course provision, range of courses 9 % Connection with other professionals 5 % Recruitment of apprentices 7 % Help to cover the whole curriculum Other 15% 100% N=385 Source: NIFU Report 51/2014 Tabel 5.1

47 Chellenges and strenghtsKey challenges facing firms in delivering high-quality WBL Training versus production Selection of the trainee Regulations and documentation Strengths of the services provided by training offices Independence Follow up the regulations and requests Recruit/arrange the trainee Dimensioning (number of students in each class) Contribute to the members of the examination boards Work on developing quality in VET Jointly: A voice towards the government Electronically training book for the trainees Standardizing the training What aspects could be improved? Formalizing their role within the VET system?

48 Questions?

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50 The Standard for People ManagementInvestors in People The Standard for People Management

51 Questions What is Investors in People? How do you build a sustainable initiative, communicate the value of investing in people, whilst also delivering better outcomes for individuals? How do our clients share learning and practices?

52 What is Investors in People?

53 Investors in People is the Standard for People ManagementOur standard defines what it takes to lead, support and manage people well for sustainable results.

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55 Our client base.

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60 We must empower our people to innovate, to think about the “what if…”, to give them clear visibility and direction, whilst understanding the role they play for today as well as how they can drive success in years to come.” Warren Richmond

61 Introducing the performance modelAre practices driving performance? Are your people aligned to your ambition? How do you know you are improving?

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63 Creating a value proposition for firms

64 Exploring IIP BenchmarkingData against each of the 27 themes

65 Exploring IIP BenchmarkingData against each of the 27 themes Industry and national benchmark comparison

66 Exploring IIP BenchmarkingData against each of the 27 themes Industry and national benchmark comparison Detailed analysis by team, location & role level

67 Your Assessment report

68 Plaques and Trophies

69 Factors correlated with improved efficiency:✓ Strong leadership ✓ Values guiding behaviour ✓ Recognition and reward ✓ Work is structured to enable collaboration ✓ A culture of continuous improvement ✓ Adoption of sustainable practices

70 The results: The Impact of investing in peopleEstimate an 8% efficiency premium for firms focusing on 3 or more factors A £84bn gap in UK economy as a result of poor management (1) Economy could see a potential efficiency gain of £77bn (1) (1) Based on ONS GVA calculation

71 Sharing learning. Sharing what works. Celebrating excellence.

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