THE DIGITAL SECTOR IN GREATER MANCHESTER: EMPLOYER SURVEY
NOVEMBER 2013
1 INTRODUCTION
Greater Manchester’s Priority Sectors research has involved analysis of data on the size and composition of each priority sector and its workforce, collation of secondary literature relating to skills priorities within each sector, and a survey of college and training providers who are active within the priority sectors.
To ensure that the views of employers are represented in the research, in summer 2013 a survey of employers within each of the priority sectors was undertaken. Employers were given the opportunity to complete a survey over the phone or face-to-face with a representative from a local training provider. In total, 710 employer surveys were completed. A copy of the survey questionnaire is attached as an appendix.
2 PROFILE OF DIGITAL SECTOR EMPLOYER SURVEY RESPONSES
Total responses
37 digital sector employer questionnaires were completed. By sub-sector, the total number of responses breaks down as follows:
· Advertising agencies - 4 responses
· Broadcasting - 1 response
· Computer design, programming consultancy and related activities - 15 responses
· Information Service activities – 2 responses
· Photographic activities – 1 response
· Press and print - 12 responses
· Sound recording and music publishing activities – 2 responses
When asked to specify exactly what activity took place onsite there was a diversity of responses: Printing/packaging and web/IT solution activities were most commonly mentioned; but there was also a product design specialist, a music and arts events company, and a team specialising in construction within the advertising sector.
Given the small number of responses, both overall and by sub-sector, the following analysis should be treated with caution.
Numbers of employees
Two of the digital sector companies we surveyed only had 1 employee, whilst the largest had 55 employees. The 37 companies employed a total of 505 employees, meaning the average company size within the sample was 14 employees. In comparison, the average company size across the whole survey (n=710) was 19 employees.
Company status
The majority of respondents (33, or 89%) said that they were an independent company (i.e. not owned by/part of a larger company). Across the survey as a whole, 73% of respondents said they were an independent company.
3 SUPPLY OF SKILLS AND TRAINING TO THE SECTOR
Current level of engagement with learning and training providers
Almost half of the of the digital sector companies surveyed (41%) said that they felt engaged with training and learning providers. This compares to 79% across all nine sectors covered by the survey.
The proportion of companies working with their sector skills councils or skills academies is considerably lower compared to all-sectors (11% vs. 25%).
Those that are currently engaged with external training providers mentioned benefits including:
“[provides] us with a low-cost way to obtain individuals and tailor their skills to the requirements of the business”
“[the training provider offers] advice and support [for the company] to grow with an apprentice]”
Reasons given for not currently engaging included:
“There was no one that we could find that would be able to provide the right training”.
“The ever changing skills for the industry [make it hard for providers to keep their training up to date]”.
Despite these comments, 62% of digital sector companies surveyed said that training providers were able to respond to their business skills needs (compared to an all sectors average of 83%). In terms of making this responsiveness better, the companies suggested that training providers should:
· Develop more bespoke training options, avoiding a ‘one-size fits all’ offer;
· Ensure that their trainers are up to speed with the latest technology;
· Identify what tasks new digital sector recruits get asked to do beyond their job description and train them in these skills.
A few companies suggested that providers should invest time in developing face-to-face relationships with sector companies. Two respondents mentioned providers offering training outside of normal working hours.
The proportion of digital sector companies that have a dedicated training budget is with 16% lower than the all-sectors figure of 28%.
Prevalence of in house training
In-house training is again offered by a smaller proportion of digital sector companies surveyed (78%) compared to an all-sectors (85%). However, much of this training is procedural (inductions, health and safety) and/or carried out ad hoc or on the job:
“Any new equipment that arrives, the design manager will teach all others staff how to use it”
There were few comments suggesting a more strategic approach to staff training.
Views on the current supply and quality of recruits
Over half (54%) of the digital companies surveyed felt that the current supply and quantity of recruits met their business needs. The satisfaction rate across all-sectors was 77%.
Supplementary comments show that it is not necessarily the quantity of potential recruits that is the problem – several firms mentioned having candidates to choose from – but rather the quality of potential recruits. Some companies have found that although candidates may look good on paper and have a strong theoretical understanding, they struggle to understand and delivery the practical outputs required of them in the office.
4 GENERAL ISSUES RELATING TO SKILLS AND TRAINING
Does sector face specific skills shortages in Greater Manchester which are not faced elsewhere?
Close to half of digital sector respondents (41%) said that their sector faced specific skills shortages within Greater Manchester which were not seen elsewhere in the UK (but amongst just computer programming companies the figure was higher at 65%). These skills gaps are the same as those mentioned in the previous question (i.e. a lack of up to date programming knowledge, and poor employability skills) and they are felt to be particularly pressing in Greater Manchester because:
1. There is a relatively large number of sector employers within Greater Manchester but no correspondingly large supply of graduates/skilled workers
2. The greater attractiveness of London, or larger employers such as the BBC (the ‘BBC effect’ was mentioned by one respondent) to potential recruits.
Across all-sectors, those responding yes to this question was 26%.
Comments relating to the employability and work-readiness of young people applying to work in the sector
Several comments were received on this topic. Most commonly, these comments related to a young person’s lack of office/job experience meaning that they lacked attributes/behaviours such as confidence when dealing with clients, punctuality and being able to take the initiative to deliver a piece of work. However, the respondents did not suggest that young people’s skills in these areas where that far behind those of their slightly older peers.
“They do seem a little less fazed, more laid back, less motivated”
“There is a small difference between younger people and more experienced recruits in their attitude to work (e.g. punctuality) and their motivation to deliver excellent service to clients”
“[Young people do not] know how to behave in a busy [office] environment”
The more sector specific responses to this question focused on the high cost of some digital equipment meaning that young people cannot afford to become work ready in certain skills, and the irregular nature of working in the parts of the sector (e.g. film and broadcast) not always being conducive to a young person reliant upon public transport. Salford University was highlighted by one respondent as producing graduates who are commercially aware.
Are apprenticeships suited to the sector?
Respondents’ view (84%, same figure across all-sectors) was that apprenticeships are well suited to the digital and ICT sector (but, at 71%, computer programming and consultancy companies were less positive about apprenticeship opportunities). This ties backs to those responses to the previous question which talked about young people needing more work experience before beginning in their first job within the sector.
Digital businesses (both those already taking apprentices and those thinking about whether they should) regard apprenticeships as an ideal way for a young person to learn about the business and in the process to keep the skills up to date. As one business said:
“They will be able to learn what we do in more details, rather than being sat in a classroom learning skills that are generic and fast becoming out of date”
We found recognition from businesses that apprenticeships represent the start of a young person’s education in how the sector operates and a commitment to continue to develop the apprentice’s skills during and after their apprenticeship.
Could the sector offer work experience opportunities
A large proportion of digital sector companies (70%) answered yes to this question (compared to 65% of computer programming and consultancy companies and 70% across all sectors). Several companies said that they already offered work experience opportunities, with the Media College scheme often mentioned.
For the 9 companies who said they would struggle to offer a work experience opportunity, this was most commonly due to the company lacking the capacity to adequately support/mentor the young person during their period of work experience.
Does the sector get enough support from training providers to grow and expand?
Only 43% of digital sector respondents regarding training providers as giving enough support to help their company grow and expand, primarily by being knowledgeable about what support (and funding) was available to the business. This is noticeably lower than the all-sector rate at 70%.
In terms of further support that training providers could offer Greater Manchester digital sector firms, 2 companies made a request for more leadership and management training being offered to managers within Greater Manchester digital and ICT companies. A more general point made by several respondents was that training providers working in the sector should look to build up local networks of businesses and contacts – this will help when it comes to placing apprentices and understanding the working characteristics of the Greater Manchester sector.
5 DEMAND FOR SKILLS AND TRAINING FROM THE SECTOR
Essential or mandatory training for staff working in this sector
A lower proportion of sector companies (32%, compared to 48% across all sectors) identified training that was mandatory or essential for their staff to undertake. However, most of the training courses mentioned as being mandatory/essential did not directly relate to digital or creative skills (e.g. health and safety, CRB checks and data protection training). There were few examples given of digital or creative industries specific training that staff had to complete, suggesting that the sector is unlikely to generate much off the shelve demand for training providers.
Training that is most valued by businesses in this sector
Twelve respondents said that the training they valued most for their staff was in relation to IT software and hardware, especially in terms of staff keeping their knowledge of systems up to date.
Next most popular were design (7 mentions) and media (6 mentions) skills.
Views on whether the skills required to work in the sector will change and what will drive this change
In comparison to the all-sectors responses, Digital and Creative sector businesses were more likely to see technological change as the key driver of changes in employee skills needs – 78% of sector firms mentioned technical change as having a big impact upon skills needs vs. 55% for all-sectors.
Economic changes (e.g. the downturn and recovery, conditions in other markets etc) were seen as the next most important influence upon the sector’s skills requirements (but less important influences than reported by other sectors), with political, environmental and social changes seen as having less of an impact on future skills needs.
6 CONCLUSION
The survey reveals a sector characterised by small, independent companies who rely upon ad hoc, in-house staff training. This approach is not ideal; with a feeling amongst the companies we spoke to that new recruits are not as skilled as they need to be to work in the sector.
There is potential for greater engagement between the sector and training providers but only if these providers can respond quickly to an ever-changing technology landscape. Where these local employer-provider relationships have been formed feedback is highly positive. Boosting apprenticeship numbers seems an ideal way of building up employer-provider engagement, as it combines classroom learning with the practical, on the job approach favoured by the sector.
Appendix A: Copy of employer survey questionnaire
GREATER MANCHESTER PRIORITY SECTORS SKILLS REVIEWS
CALL FOR EVIDENCE FROM EMPLOYERS
The Greater Manchester Skills and Employment Partnership has been established by the Greater Manchester Combined Authority and Local Enterprise Partnership with the aim to maximise the contribution that skills training makes to Greater Manchester’s economy.
Key to achieving this is understanding the skills needs of the priority sectors which drive Greater Manchester’s economy. These priority sectors are:
· Financial and professional services
· Digital
· Creative industries
· Advanced manufacturing
· Education
· Health and social care
· Logistics
· Retail
· Hospitality & tourism
· Construction
On behalf of the Partnership, the Greater Manchester Learning Provider Network is undertaking consultations with businesses to understand which issues employers see as being crucial to the future growth and success of their sector in Greater Manchester.
This input will be used to inform:
· the development of education and training providers’ curriculums so that they better meet the needs of business; and
· Greater Manchester’s future skills policy and business support offer.
All responses will be treated as confidential and findings will be presented to in a way to ensure that it is not possible to identify individual respondents in the final analysis. If you would like any further information on this piece of work please email Sharon Kelly, Strategy and Partnership Manager at the Greater Manchester Skills and Employment Partnership on or phone 0161 237 4256.
PRELIMINARY INFORMATION
NAME OF BUSINESS: ______
KEY POINT OF CONTACT: ______
SECTOR(S) THE BUSINESS SITS WITHIN:
Priority Sector / % of your business / Priority Sector / % of your businessFinancial and professional services / Health and social care
Digital / Logistics
Creative industries / Retail
Advanced manufacturing / Hospitality & tourism
Education / Construction
SUBSECTOR(S) THE BUSINESS SITS WITHIN: