BoostingSkills and Productivity

Enterprise-led approaches to skill development, training andnew qualifications: the Irish experience.

Alan Nuzum

Acting CEO, Skillnets Ltd.

Purpose

• Explore the Irish context of public/private approaches to enterprise development

• Show an example of stakeholder collaboration which is tackling skill development, training and qualification needs.

• Explain how the network delivery model functions as a collaborative investment initiative

• Give examples of how the network model can add value to existing provision and drive innovation and development

Irish Economic Context and Success Factors

• Youthful population and rapidly expanding labour supply

• Substantial inward investment inflows

• The strategic deployment of EU Structural and Cohesion Funds

• Pursuit of pragmatic and innovative government policies

• A Social Partnership approach to economic development

• An openness to international trade in goods and services, and to new ideas

• An emphasis on education and technological innovation

Education and Training

• Vital component of Ireland’s knowledge economy• Priority investment under the National Development Plan €12.6 billion

covering early education, third level access, skills development and apprentices.

• Public expenditure increased by 150% since 1985• Participation in tertiary education increased from 11% in 1965 to 37% in

2003• 66% of 25-34 year olds have completed secondary education• By 2020 half of the working population will be over 40 years old• This will be comprised of individuals currently in the workforce• Education and training employees receive during working life crucial for

national competitiveness and individual career prospects• Skillnets was formed in response to the critical need for upskilling the

workforce

Introduction to Skillnets

• Formed in 1999

• Independent body – Industry Board (IBEC/ICTU/Chambers Ireland/CIF/SFA)

• Established to facilitate training and development in Irish enterprises

• Training Networks Programme funded through the National Training Fund

– People in employment

– Broad cross section of sectors, regions & companies

– Particular focus on small/medium businesses

– Private sector firms

Skillnets Vision

To improve learning activity in enterprises leading to enhanced skills, employability and competitiveness

Key Features of the Skillnets Model

Mobilisation of groups of enterprises in networks Private sector firms (particularly SMEs) Enterprise-led approach Upskilling existing employees Strategic/sustainable approaches Training and Development aligned to business needs Best training practice & Innovation Professional network facilitation Co-investment (Skillnets/companies) Support infrastructures and advisory mechanisms

A Skillnet Training Network

Why Training Networks Work

Training is:• More suited to Enterprise Needs

• More Cost Efficient• More Relevant & Useful• More Flexible & Accessible • More Informed & Beneficial• Better Facilitated

Key Outputs 1999-2005

• 114 networks operational

• 6,122 companies participating

• 35,315 workers receiving training

• €24.24m grants committed to networks

• €12.76m invested by companies

Enterprise-led approach and network focus

• Enterprises provide direction on the training process

•Business ethos - designed to meet business needs

•Flexible - minimal constraints on enterprises allowing firms to identify their own needs

•Co-funded - enterprises invest in delivery of objectives

•Innovative - trying new concepts and ideas

•Wide range of potential partners and stakeholders

• Large companies transferring knowledge to SMEs

•Professional inputs from trainers, academia and other advisors

Training Networks Programme Strategic Pillars

Pillar 1Sector

Skills

Strategies

Pillar 2Growing the Skills

Base

Pillar 3Local Learning

Responses

Pillar 4Building learning & development

Best Practice

• Agriculture/Farming

• Construction• Design• Digital Media• Engineering• Financial services• Food producers• Greyhound industry• Information Technology

• Retail / Wholesale

• Services • Security• Software Development• Space Technology• Tourism• Wireless Technology

•Hotels & Catering•Manufacturing•Media / Local Radio•Pharmaceutical/Biomedical•Plastics•Printing & Publishing•Private Healthcare

Pillar 1 2006-7: Driving skills strategies through sectors & partnerships

Facilitating Access and Adaptability SLM Skillnet Diverse Cultural Skillnet Northside Business Skillnet

Adopting Advanced Business Practices

IBEC Alternative Dispute Resolution Skillnet

Positive2Work Skillnet Business Excellence Skillnet Design Shannon Skillnet

Increasing Adaptability of Workers to the Knowledge Economy

National Engineering Training Skillnet

Building Management Capacity in SME’s

ISME Skillnet Hotbed Skillnet Creative Industry Skillnet Galway Executive Skillnet South East Micro Skillnet

Pillar 2 2006-7: Growing the Skills Base

Border, Midlands & East Carlow/ Kilkenny Clare Connemara Gaeltacht Cork city & county Fingal Galway city

Killarney Limerick Roscommon / Leitrim South Dublin / Kildare Waterford Wicklow

Pillar 3 2006-7: Developing Local Learning Responses

Certification / AccreditationChamber Learning Skillnet

Networks developing modules, diplomas, degrees

Some Networks will become registered centres

Impact MeasurementImpact Measurement Skillnet

Many networks introducing ROI

Other AreasBenchmarking systems

Capacity-building among internal & external training providers

Awareness building and needs analysis

Pillar 4: Building learning & development best practice

Best-practice and areas of special need

• Certification partnerships

• Measuring the impact of training

• Low basic skills and literacy

• New Possibilities for Small Business Training

Certification partnerships

Networks engaged in many innovative approaches to certification, including:

• Networks becoming registered centres• Networks developing new training modules and National Certificates• Contributing to framework development – quality assurance, APL.• Inter-network collaboration

Effective approaches to certification and qualifications

• The involvement of companies, sector experts, education and training providers and certifying bodies working in partnerships.

• Competence standards and models which are developed by companies together in strategic groups.

• Qualifications and training systems that recognise the needs of the industry as whole rather than individual companies.

• Qualifications that are overseen, monitored and updated by industry/education partnerships.

• Qualifications that follow competence identification and assume that workers may change company, location, function but the industry as a whole can capture the returns from training investment.

• Progression routes which span traditional separation of further and higher education allowing progression through awards from foundation certificate to masters degree levels.

• Training processes that are varied, incremental and multi-faceted so that each company and individual can access new learning when and how appropriate i.e. all learners do not have to go through the same courses or learning methods.

• Systems, which recognise and certify prior learning and experience developed during the working lives of individuals in the relevant industry

Measuring the impact of training

•Pilot project to test impact measurement methods, •9 Networks and 18 companies participated• Project included training and support for participants• Primary findings were that these methods can be applied effectively in an Irish context• Full report and case studies available

Low basic skills and literacy

• Poor literacy and numeracy skills have adverse effects on the earnings and employment prospects of individuals.

•25% of Irish adults have literacy problems

•Low basic skills is a thematic priority for Skillnets

Low basic skills and literacy

• 9% of all trainees were in the unskilled/semi-skilled occupational category•14 in-company undertook trainer training in LBS•DVD documentary produced•“Everybody’s business: Literacy, Numeracy and Language in the Workplace” guidelines produced.• Lessons learnt around the complexities of the challenge for companies and trainers.

New Possibilities for Small Business Training

• SMEs critical in building and sustaining national competitiveness.

• Training vital to SME development• Traditional inhibitors to SME training include funding and a

knowledge gap in approaches to SME training.• 82% of companies participating in 2002-2005 TNP were

small or micro• Skillnets is assisting small business access training more

easily, more quickly and more cost effectively.

Key Learning

• The enterprise-led approach is an effective means of addressing workplace learning• When engaged, enterprises are in a strong position to determine and satisfy their own training needs• Training networks require strong facilitation and support, both internally and externally