It is often the UK’s largest industries that suffer from a higher level skills deficit, affecting the growth and development of both employees and employer organisations across key sectors such as retail, travel, construction, utilities, engineering and transport.


Derek Longhurst, Chief Executive of Foundation Degree Forward (fdf)

The national body that supports the development and validation of work-based Foundation degrees (Fds), explains how industry and academia are working together to create the skills and qualifications that are relevant to today’s workforce.

Industry sectors such as retail and construction provide essential services to the country as well as being an important part of the economy. There is a need for employers to invest in skills development to keep ahead of international competition and to allow workforces, and businesses, to flourish.

Skills deficit

For employers, the skills deficit has led to a lack of expertise at management and operational levels, creating an over reliance on resourcing higher level skills and qualifications from other sectors, creating a knock-on effect for the business community as a whole. For employees, who may not have had access to a higher level education, they may have found that they do not have the required skills to continue to grow their careers, despite vast experience. 

Up-skilling

It is important when developing up-skilling programmes that employers help ensure that the skills delivered are firmly imbedded in the needs of the industry and organisation. By providing qualifications and education that enables an employer to create a true asset in an employee, organisations can then be better positioned to meet future challenges and opportunities – and with staff that are focused and motivated.

Employer based training

This is the exciting ambition of Foundation degrees (Fds) and the Employer-Based Training Accreditation (EBTA).  Fds are degree-level qualifications delivered, validated and accredited by universities, which allow students to combine working and studying. EBTA, which is co-ordinated by fdf, is a new scheme that aims to raise the status of employer-based training.  Specialist fdf consultants support employers in the development of accreditation for the training they provide. This can both motivate employees through achievement of recognition of successful higher education ‘credits’ as well as enhancing the quality of the training to contribute to genuine business improvement and impact.

Employer/university partnerships

While some Fds can be studied full-time, fdf works specifically to align the qualifications with the evolving needs of industry by creating employer and university partnerships. As such, work-based Fds are developed in conjunction with higher education institutions and employers, with fdf helping to create and develop these relationships and stimulate employer demand for them, and by mediating in their validation and quality assurance.  fdf also uses its expertise to consult on issues such as employer management of learning innovation, and can advise on staff development opportunities.

The advantages of this approach include flexible methods of delivery and courses adapted to suit specific employer requirements, whilst also providing students with the opportunity for additional higher level study - including the attainment of professional qualifications. For employers, there is an excellent opportunity to fill their skills gaps and shortages.

Network Rail case study

Network Rail began offering Fds to its employees in 2003 and has found that, in today’s very expensive education world, Fds offer real value for money. The actual cost of taking somebody through a two-year programme is in the region of around £20,000, compared to the cost of hiring a graduate at approximately £10,000 a person - but with the need to fund a further two-year training programme. For Network Rail, the Fd model means that it can ensure employees can make a valuable contribution to the company earlier and at lower cost instead of having to re-train graduates.

Employers can be involved in the programme design or work with a university to adapt the framework of an existing Fd according to the organisation's skills needs. This model means that employers are involved from the outset in forming the course’s content and the way in which it will be delivered (i.e. what modules the Fd will include or how much study takes place onsite or offsite). This method is very flexible and a real advantage to employers because the Fd’s content is tailored to their own and their employees’ preference.

Microsoft case study

Another well known employer, Microsoft, is currently developing a new Fd in Collaborative Technologies, an area in which they have identified a future demand for specialist training. There is a widely acknowledged skills shortage in the IT sector, with companies finding it hard to recruit the people they need. This situation is exacerbated by the expected 10% growth of the industry over the next three years and that other high-growth industries, such as pharmaceuticals, will need to recruit from the same pool of science, technology, engineering and maths students. 

IT sector

The IT sector is not just fast-growing: it is changing quickly too.  Arguably, this is a sector that, without Fds, there could be a ten-year lag between industry recognising a need to recruit those qualified in new technologies, and the education system responding to that need.

Tesco case study

In addition, the country’s biggest employer Tesco has recently piloted an industry Fd which is now available to the rest of the sector. As the retailer was instrumental in the design of the Fd, it could ensure that it was suited to its needs through student selection, course content and delivery model. As a result of this careful preparation students are already reporting positive results about how the course is developing their careers.
 
Industry consortia are also often needed to provide leadership in the provision and overview of Fds, whether in the design of courses that can help meet the changing needs of a particular sector, or in the offer of appropriate workplace experience for those on the course. By working with all relevant agencies, institutions, organisations and interest groups, fdf ensures that the development of Fds is driven by the needs of employers and students.

Travel partnership

A recent example of this effective partnership working is where Thomson parent firm TUI, the Institute of Travel and Tourism, Tourism Society and ABTA,  all contributed to the development of an Fd for their sector,  and which is to be launched this autumn.

The travel Fd is going to be a major boost to companies that want to create a qualification for employees that allows staff to develop specifically within their sector. This in itself has obvious recruitment and retention benefits. It develops the existing pool of staff and creates a transparent progression and a higher education path for new entrants into the sector, who may be coming from a further education background. This is an attractive proposition as students can continue to support themselves financially whilst studying, and concentrate on developing their career without the need to take a break.

Work-based learning

Businesses can also benefit from offering work-based learning opportunities to students enrolled on existing Fds. This can provide a valuable source of professional, skilled people.  In addition, Fd courses that are run independently of businesses can include workplace study projects. Many organisations are already taking advantage of the Fds and have found investing in them has improved staff retention.

Recent Fds developed for the retail and travel sectors, as piloted by Tesco and TUI respectively, are both examples of where businesses wanted to be able to develop workforces from within and not pull in higher education skills from outside. To achieve this, both have developed workforce consortiums so that competing employers have worked together for the greater good of the whole industry.

Fd student

Jennifer Lyons, a Regional Sales Manager at TUI and an Fd student, is a fine example of someone who has seen her career prosper since studying for a Fd.  She started at TUI 18 years ago and has worked her way up from an in-store travel agent to her current post, which involves responsibility for 45 shops. In a recent case study produced by fdf Jennifer told how after attending numerous sales and training courses she felt it was time to gain a better understanding wider business issues rather than being limited to having a silo of sales knowledge.

Enrolling on the Fd has helped her achieve a better understanding of other aspects of business and how it works – from tour operation to economics and people motivation.  Furthermore, as Jennifer left school at the age of 16, she has discovered that the Fd is really important on a personal level for self-achievement, in addition to enhancing her professional development.

Higher education

As the UK’s economy becomes increasingly knowledge-based, higher education skills are going to be in even more demand by business, by industry bodies and individual employers working with higher education institutions to tailor courses, such as Fds, to meet their needs for new skilled employees. It means that workforces are offered excellent employment prospects, whilst benefiting the nation’s skills base.