Sheffield City Region Event Report 2016 by We Are UMi

EVENT REPORT 2016

welcome

SUMMIT IS THE START OF YOUR JOURNEY The BBC’s Home Editor Mark Easton set the scene before expertly chairing an absorbing and challenging debate at the first Sheffield City Region Skills Summit Our focus is on the skills that can improve the productivity, the wealth and the well-being of Sheffield City Region (SCR). We know that business can only grow with the right skills available. If you haven’t got the right skills productivity suffers and here in Yorkshire, let’s be honest, there is plenty of room for improvement. Output is the lowest in England, growth has been slower than anywhere in Britain, the SCR has the third lowest output per head than any Local Enterprise Partnership (LEP) area, less than half as productive per worker than say the Thames Valley/Berkshire LEP. Productivity is improving but not fast enough – that is the challenge for all of us. So it’s hard to think of a more important commodity for this region than skills. The creation of the new SCR combined authority with its elected mayor next year

means that far greater responsibility for skills is coming to this area. And the Government’s commitment to a Northern Powerhouse is an exciting prospect for this region and others across the North of England in growing and supporting a highly skilled workforce able to compete around the world. At this historic event, here at the home of the Millers (Rotherham United FC), is more than entitled to call itself a summit. This event is genuinely important and timely. It brings together individuals at the pinnacle of understanding on this critical issue. We have a government minister, experts and practitioners from local government, education, the skills and training sector employers and employees and apprentices. A Skills summit is what we need and a Skills summit is what we have.

In association with

BUSINESS QUARTER

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Business Quarter, Spectrum 6, Spectrum Business Park, Seaham, SR7 7TT. www.bqlive.co.uk. Business Quarter (BQ) is a leading national business brand recognised for celebrating and inspiring entrepreneurship. The multi-platform brand currently reaches entrepreneurs and senior business executives across the North East and Cumbria, Scotland, the North West ,Yorkshire and the West Midlands. BQ has established a UK wide regional approach to business engagement reaching a highly targeted audience of entrepreneurs and senior executives in high growth businesses both in-print, online and through branded events. All contents copyright © 2016 Business Quarter. All rights reserved. While every effort is made to ensure accuracy, no responsibility can be accepted for inaccuracies, howsoever caused. No liability can be accepted for illustrations, photographs, artwork or advertising materials while in transmission or with the publisher or their agents. All information is correct at time of going to print, July 2016.

2016

overview

DYNAMIC AND MOTIVATIONAL The future of the economy is dependent on skills. It is imperative our workforce is equipped to cope with the pace of technological change and able to compete on a global stage - not just within the confines of the Sheffield City Region and the UK. Devolution can play a major part in delivering this aspiration as can innovations such as the Skills Bank, launched at this summit, to support the growth of business. But perhaps the biggest message to come from the inaugural Skills Summit was the need to build strong, effective partnerships to grasp the opportunities and ensure the Sheffield City Region prospers. Of course there will be many challenges – not least dealing with the aftermath of the vote on European Union membership and electing

a mayor – but there was a real confidence and energy among those who spoke and those in attendance at Rotherham’s New York Stadium. This report highlights some of the issues in most urgent need of addressing and what is being done to support the growth of businesses. It is a starting point for further debate to help shape policy going forward. The feedback from the day, attended by 250 representatives of a wide range of businesses from the private and public sector - was very positive. Sandra Gabriel of Rotherham MBC described it as “Informative, interesting and motivational. If we work together we can make a difference.” Arshid Najib of Faithstar said the summit showcased some of the great work being

“The first Skills Summit was dynamic, motivational with excellent contributions from speakers, panelists and the audience members. It will be interesting to see what further progress has been achieved by the time the next summit is held”

done. “Now we need to build and expand to involve our competitors in the area and region.” Robert Landman of Spencers Solicitors said it was a “very good session, great to gain a better understanding of the work going on behind the scenes to improve the economic position of the region.” Bridget Kelly Shift Media was also impressed saying the event was “energising and positive and the apprentice panel was fantastic!” while Christine Lowe of DC Training & Development services said: “It was an interesting event and very well attended - a bigger venue may be required going forward!” The first Skills Summit was dynamic, motivational with excellent contributions from speakers, panelists and the audience members. It will be interesting to see what further progress has been achieved by the time the next summit is held but if this event is anything to go by it is a region which is up to the challenge. Paul Robertson, editor of BQ2 SCR event report. 03

2016

interview

AN EXCITING TIME FOR OUR REGION Sir Nigel Knowles, chair of the Sheffield City Region Local Enterprise Partnership, outlines the vision being developed to help drive economic growth through skills and to take full advantage of the devolution deal. Paul Robertson reports The vision at the heart of the Sheffield City Region’s Economic Plan is a simple one: to create a bigger and stronger private sector. Simple maybe, delivering it not so easy. But it is a challenge Sir Nigel Knowles and his team are determined to rise to and grasp the full opportunity afforded by devolution. “I can’t possibly capture the scale of opportunity – or the pace of change underway in the Sheffield City Region (SCR),” said Sir Nigel. “The SCR was built by SMEs who were focused on doing business in a straightforward way, to get the job done without any nonsense or false promise. “This strong business culture has been supported in recent years by a real strength of partnership between business and local government. The result is a simple local regulatory system that other parts of the country envy. “Businesses can move quickly and this allows them to gain the competitive advantage you need to compete around the world. “All of this is happening alongside the urban renaissance of our town and city centres, surrounded by some of the most breath-taking natural landscapes, which boosts our local tourism economy and helps to retain top talent in the region. This is particularly important when you have invested so much in their skills

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development.” The focus in 2016 is on refreshing the region’s economic plan, including skills, employment and education, in preparation for the £1.25bn of funding coming from central government as part of the devolution deal, once an elected mayor is in place. “We need to ensure we maximise the benefits of new powers devolved from Whitehall,” said Sir Nigel. “We’ve set really ambitious targets for growth in our economic plan. Delivering these will be, without a shadow of a doubt, challenging – but this is a challenge that I’m thrilled to be involved in.” The City Region is located at the strategic heart of the country. It is comprised of the nine local authority areas of Barnsley, Bassetlaw, Bolsover, Chesterfield, Derbyshire Dales, Doncaster, North East Derbyshire, Rotherham and Sheffield and Sir Nigel has been hugely impressed with what he has seen. “The people working in the LEP are very good indeed,” he said. “I don’t think we have had

an effective programme of communication with everyone in the SCR and we need to improve it – that includes listening, we need to do a lot of listening and we need to polish up our implementation plans and tell everyone what they are. “It is fantastic that the region can set itself a new foundation through devolution from which it can build and grow. We have a combined authority – Sir Stephen Houghton is an excellent chairman and we don’t disagree on anything – we support each other. “Next year it is all change – we are going to have a mayor – so the LEP has to make sure it continues to be relevant in the world of a combined authority and a mayor working for the benefit of the private sector.” In the SCR Sir Nigel says there are three big work streams underway requiring leadership and taking businesses with them. The first is taking control of the City Region’s vocational education system. “For too long local employers haven’t had a strong voice >>

“We’ve set really ambitious targets for growth in our economic plan. Delivering these will be, without a shadow of a doubt, challenging – but this is a challenge that I’m thrilled to be involved in”

interview

2016

interview

2016

interview

in the design of the system,” argues Sir Nigel. “With the SCR being the first area in the country to secure full devolution of the Adult Education Budget we can change that. “The second is ensuring national employment programmes deliver better outcomes for our residents. We’re working with the Department for Work and Pensions on a major employment pilot scheme and on the co-design of the new Work and Health Programme. “If we get this right we can reduce the blight that health and unemployment has on the lives of many of our residents and enable us to support more individuals into work. “And thirdly we are making sure that we invest in the physical learning environments to inspire learners and meet employer need”. He said the fact Doncaster had secured the National College for High Speed Rail was testament, not simply to the hard work and commitment of all involved, but to a powerful collaboration between industry with a passion to raise skill levels in their sector. “This new college will deliver training of national significance and provide career paths for young people in the city region,” he said. “We will use this as our model for commissioning further capital investment and promoting our ambition for the SCR to develop the reputation of being a leader in aspects of specialist training with collaboration with business at the heart.” Sir Nigel is also proud of the creation of a Skills Bank. If an employer commits to putting money on the table, then the public sector will invest alongside them – which he says is a genuine deal which will be based on business needs. “It can be a hard message for businesses to hear but many UK firms do not invest enough in workforce development. And yet human capital is our single biggest asset. If we don’t invest in it, like we do in new technology or business processes, we won’t thrive,” he says. “Skills are vital. If we are going to attract companies from around the world to invest in the region we have got to make sure that we have a workforce that is going to be fit for purpose, meaning fit for the needs of those we want to attract to the region. “It is a virtuous circle. We have to make sure the infrastructure is right and we have to make

Who is Sir Nigel Knowles Sir Nigel Knowles was global co-chairman at DLA Piper, one of the world’s largest global business law firms, before stepping down earlier this year. He will continue to work with the firm on a consultancy basis. Sir Nigel joined Broomheads, the firm that became DLA Piper, in 1978 and was appointed managing partner in 1996. His leadership was instrumental in effecting the single largest transatlantic law firm merger in recent history, when DLA integrated with US-based Piper Rudnick and Gray Cary Ware & Freidenrich LLP in 2005. In the same year Sir Nigel was named Partner of the Year by Legal Week and DLA Piper was named Global Law Firm of the Year at The Lawyer Awards as well as Law Firm of the Year at the Legal Business Awards. In 2015, Legal Business awarded Sir Nigel an exclusive “Lifetime Achievement Award”. Sir Nigel was Global Co-CEO from 1996 to December 2014, becoming global co-chairman in January 2015. On stepping down, a commentator in The Times newspaper said it as the end of an era, describing Sir Nigel as Alex Ferguson of the legal world having created a team through a series of mergers which now sees DLA Piper with 4,000 lawyers working from 80 offices in 30 countries. In 2009 Sir Nigel received a knighthood in recognition of his services to the legal industry. He is a respected legal commentator, writing regular business blogs for The Lawyer. Born in Stocksbridge, he studied law at the University of Sheffield, where he is now a visiting professor. Although now based in London, he has family in the Sheffield area and remains a passionate advocate for the region. Married with three children, Sir Nigel became chair of the Sheffield City Region Local Enterprise Partnership on January 1 2016 for three years and is working toward finalising a £1.25bn devolution deal with central government.

sure we have the right people with the right skills – it is all inter-dependent but skills are crucial. “This summit is a very major step of the many we need to take to deliver the long term strategic economic plan which is to stimulate employment of about 70,000, create lots of new businesses and I am also mindful of the need to encourage and help SMEs. “We have 52,000 SMEs in the region. Most very large employers on a global competitive stage are still looking to do more with less but if just one third of SMEs hire one more person look what that can do – there is a lot to be achieved and we need to be the facilitator, to set the agenda and help stimulate that discussion. “We also want to focus on apprenticeships and the undeniable benefits to the whole of the SCR of developing the talents of our workforce, in a business specified curriculum.” With the Skills Summit set to become an annual event, Sir Nigel said he was delighted

with the turn out and the trust placed in him to play a key role. Having lived and been educated in the area before moving away he feels the decision to appoint from without the region will only help bring fresh thinking. “Building a global law firm and all the experience that brings with it and the people you meet as a consequence of that gives you a broader perspective,” he said. “I believe it was quite inspired by the combined authority and LEP that it was not about choosing me but choosing someone outside the area to promote and sell it rather than someone from inside selling an area they already know. “At the LEP we are doing all we can to make it even easier to do business here by bringing together leadership from the public and private sectors to drive economic growth, ease regulation and to help create jobs. “This will only be achieved if companies are able to grow and prosper. To help you do this we need to listen, so I hope businesses will make their voice heard.”

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2016

skills bank

THE SKILLS BANK: INVESTING IN FUTURE GENERATIONS A new initiative to drive business growth in the Sheffield City Region was officially launched at the summit. Paul Robertson asks who can benefit from the Skills Bank and how does it work? With a shortfall of 30,000 highly skilled people required to power the Sheffield City Region’s economy something innovative was required. The solution? A Skills Bank – the first of its kind in the UK - which could help find and fund the training required. It will support employers who have staff based in the Sheffield City Region, helping them to access high quality skills training with over 1,100 courses on offer. The man charged with running it is Peter Norriss. “It is seeking to get maximum value out training and learning to help the region increase its productivity and its competitiveness, both domestically and internationally.” “Any business that has the potential for growth – we are looking to unlock that potential, big or small, from any sector. If there is a company looking to grow through training, we are there to support them. We have no restrictions in terms of the kind of people we want to work with. “Each company will have different needs and we need to put a deal together that is right for the employer rather than aiming at an artificial average. “There are a number of courses – but it is not about us selling employers courses. It is about talking to businesses, having a strategic conversation with them and understanding what they need. Whilst we have a lot of

2016

things already on offer, if an employer needs something that is different to what is on offer, we are able to go out and source it for them, even if it means developing something completely new for the market. “Don’t think of it as a sale from a catalogue, it is about what you need, not what you have. We have a number of deals approved and are speaking to 200 employers across the SCR. “The Skills Bank is an employer-led system. We are not here to replace mainstream as there is some great provision in this area but we are here to use the devolution on offer to deliver more than mainstream.” Key features of the Skills Bank fund include: • Customer service team to support employers throughout the Skills Deal process • Model to assess the potential economic impact of a Skills Deal on the SCR • Network of brokers and a skills assessment tool to support employers in defining their skills needs • Choice of training providers from the Skills Bank Framework that helps employers to choose quality and value for money • Facility to create bespoke and aggregated training requests • Business feedback tool which shows the training other businesses have rated most highly. For Noriss it is more than just a profession –

his role is personal. “I have been brought up in Sheffield and lived in various parts of the region all my life, so for me it is brilliant to be involved and help bring the value of PwC into the region I call home,” he says. “Everything I do here helps make the region better, where I live better so I am absolutely passionate about making it work as the best possible way that we can.” Contact Skills Bank on 0800 328 1844 or email skillsbank@pwc.com

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Question time During the presentation there was some interactive voting on three questions. Do you think the current skills market place meets your future business requirements? Yes 17% No 83% Do you have a good understanding of the future skills your business needs to grow? Yes 69% No 31% Are you interested in a skills deal? Yes 97% No 3%

skills bank

2016

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keynote address

Skills Minister Nick Boles spoke at the inaugural Sheffield City Region Skills Summit and said the commitment shown by those present would help transform its future

YOU CAN BE TOP OF THE LEAGUE Devolution, led by an elected mayor, will create the environment to help the Sheffield City Region transform its position from one of the poorer performers in terms of productivity to one of the highest. Skills Minister Nick Boles MP, told more than 250 delegates at the first Sheffield City Region Skills summit they had an opportunity to set the agenda and make the area stronger. “It is clear from this huge turnout that there is a clear commitment from local business and local colleges to work together to improve the productivity and competitiveness of local businesses and to offer more young people better life chances,” said Mr Boles. “Ultimately, the deal for local communities is this: we are going to ask you to do more but we are going to give you control over the money. “We are asking you to invest in better facilities, more specialised facilities, facilities with better teaching staff and better equipment. We are

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keynote address

going to give you not just the skills capital funding that you have had now for a couple of years, but this area is the first in the country to have full control of the adult education budget so you can commission from your colleges the programmes that actually serve you and help you compete and succeed as businesses. “Today is just the start of a journey for you but it is I think a good start as we see the level of commitment and enthusiasm in this room for the challenge that lies ahead. “We have heard some rather gloomy statistics about the level of productivity in this region compared to other regions. I have no doubt at all that you have within you the capacity and you have among you the leaders to take Sheffield City Region right to the top of the league of competitiveness in the UK economy.” Mr Boles said the economic change was also a moral test. While the UK’s productivity was lower than competitors, employment was stronger and that was not necessarily a bad thing but improvement in skills was vital. “For 50, maybe 100 years, we have focused too much on the opportunities of those who go to university and too little on the life chances of the 50% of citizens who are not going to go to university,” he said. “They have been treated as the poor relations and we have failed them.” He said the government had maintained adult education funding for 16-19 year olds for this very reason and had protected the overall adult education budget. It had also extended advanced learner loans to anyone studying over the age of 19 and to a wider range of courses. Mr Boles said £1bn was spent on apprentices in 2010, and £1.5bn in 2015 despite other budgets being cut to get the deficit down. By 2020, £2.5bn will be spent on apprentice training thanks to the introduction of the Apprenticeship Levy and he pointed out no other government programme is enjoying as large an increase in funding as apprenticeships. “Now some of you will think it is a bit rich of me to claim credit for the Apprenticeship Levy when ultimately it is you, many of you, who are going to be paying for it,” he said. “It is one of the chief ways that we are asking employers to step up and do their bit to increase the productivity of our nation.

“I accept it is a substantial intervention. Conservative governments don’t like much introducing new taxes and they certainly don’t like introducing new taxes on business. “But the reason why we have decided to do this is because we have observed a problem in the system. Many employers do the right thing, step up, hire the apprentices but their competitors don’t. “Their competitors take a free ride on the whole system and just poach people once others have made the investment in making them the skilled professionals that they are. “Through the Apprenticeship Levy we will be requiring all companies over a certain size with a payroll bill of more than £3m to make that investment or lose it to somebody else who will. “We are going to ask business to make this investment, but in exchange we are giving businesses the control of the money. You can spend it on the apprenticeship training that you want for the apprentices at the level and the standards you want. “We are giving employers control of developing new apprenticeship standards, so when there is a new occupation and an

existing apprenticeship standard doesn’t fit, then you are actively encouraged to go out and develop a new standard. “Through the new Institute of Apprenticeships, which will be controlled by employers, we are giving employers quality control as well. “Now we are asking local communities and local government to step up just as boldly and just as substantially as we are asking employers to do.” Mr Boles paid tribute to those who set up the Sheffield City Region and to those now leading the delivery of the devolution deal. “I want to thank everyone involved in setting up the SCR. I want to thank Sir Nigel Knowles, who through his work at DLA Piper shows how Sheffield can be the source of business ideas and energy which rule not just SCR but go on to rule the industry throughout the country and around the world. “Nigel’s is an example that I know many want to follow and I also want to thank Nigel Brewster for putting in the hard graft to chair the area review of the region’s FE colleges and to develop a plan to deliver the skills identified by you through a summit like this so this city region can thrive.”

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“Today is just the start of a journey for you but it is I think a good start as we see the level of commitment and enthusiasm in this room for the challenge that lies ahead.”

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Q&A

Question & Answer session with Mark Easton, BBC (chair), Sir Nigel Knowles, chair of the Sheffield City Region LEP, Nick Boles MP, Minister of State for Skills and Nigel Brewster Sheffield City Region LEP vice chair

Mark Easton: This must be a critical time for the region – you have to get it right. Sir Nigel Knowles: The devolution deal allows the region to rebase itself. A lot of water has to go under the bridge but, with an energetic and enthusiastic LEP board, we can make decisions from within region rather than London so that has to be a positive outcome. Mark Easton: How do you see SCR working with the other partners in the Northern Powerhouse from the likes of Greater Manchester, Merseyside and the North East? Sir Nigel Knowles: The Northern Powerhouse is made up of five cities and the concept behind it is you’ve got five super-charged economies that will be connected to match the size and abilities of the London region. Added together we are only slightly larger than London. It is all about connectivity and the five cities will work together in a complementary rather than competitive way. In my view, if it’s going to work, you have got to get from Manchester to Sheffield or Leeds to Sheffield in the same time it might take you 14

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to get from Heathrow to Canary Wharf. We are still finding our feet but I think good things will occur. Mark Easton: Nick Boles – you have talked about the importance of this agenda in terms of losing out to global markets. That is the real point is it not? This region can either improve its performance, be a real player fighting for those contracts or there is a lot to lose. Nick Boles: Sitting in SCR thinking about your competitors you’re not thinking so much about London but about Munich, Lille or cities in China that we have never heard of – that is who the competition is. Thinking of the elected mayor, why not get a local business person to stand? It doesn’t have to be all about politicians. Put someone forward who has a vision for your region, who has experience of running a successful business. The leadership you get through a mayoralty could be transformative. Mark Easton: Nigel Brewster, what have you seen change in the five years you have been at the LEP? How much progress have you made?

Nigel Brewster: LEPs were set up in reaction to Government policies but with devolution deals it enables us to take the agenda, work out what we want to do and what the levers are that we need to have control or have influence over to drive our economy. Our LEP has been successful in the first five years but I would urge everyone to judge us over the next three years because we now have a level of power that we can really use. Mark Easton: How do businesses here feel about the Apprenticeship Levy? Are they in favour? Nigel Brewster: If you look at the 53,000 businesses in our city region 52,000 are SMEs who won’t be subject to the levy. The feedback we are getting from the large businesses is that many see it as an opportunity to get the maximum bang for their buck in terms of skills development but a lot of them already do a lot of skills development, so it’s suck it and see. Mark Easton: Nick Boles, if a big company already spends a lot on skills training and

Q&A

Some of the questions and comments from the floor:

apprentices will they have to spend more with the levy or move what they are spending and make it their levy? Nick Boles: To be very clear, it will have to be spent on apprenticeship training, but we are very keen that people come together and identify new apprenticeship standards if there isn’t one meeting their needs. We are insisting on spending it this way because an apprenticeship enables us to guarantee that there is not just private value but public value in the training being provided. It is giving people a skillset which will be recognised broadly across the labour market. Apprenticeships are not just for young people. If you have a 53-year-old who has potential to develop and grow, put them on an apprenticeship and the levy can fund it. Sir Nigel Knowles: If you hire people and invest in their future, giving them the skills that they need to prosper and they stay for a long time, it is a source of competitive advantage for that employer to have people embedded in their business. It’s a no-brainer.

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Jackie Freeborn, co-founder and senior associate of the Work-Wise Foundation: “How are we going to align this vision for vocational training when we have an education system that purely measures academic performance and teachers in schools have absolutely no idea about apprenticeships and place no value on vocational training? We don’t have that pipeline of young people coming through. They are all geared up to going to university and higher education. We are letting the young people and industry down.” Brian Reece, MD of Sheffield Precision Medical said he asked one of his apprentices what was his experience and he told him. ‘Great as my secondary school was, I felt the only way to succeed was to go to Sixth Form and do A Levels. No talk of an apprenticeship or anything about industry.’ Mr Rees said: “Three years ago I offered my time to go into schools, that’s still an offer, we now have peer-to-peer broadband, we can get in there and share the message.” Jo North, executive director In-touch care: “I am an employer and national chair of apprenticeship reform in education and training. Within this region we have an opportunity for all large employers to build their own education and training and I will help them to do that.” Nick Boles: “I don’t want to blame teachers because we all tend to tell people what we know and validate our own choices. Teachers know the system where they get A levels, go to college and university, get degrees and become teachers, but know nothing about apprenticeships. It is our responsibility to make sure that those who do know about that route have equal access to young people. We are legislating to require schools to get experts to come into school during the day to talk the young people about other opportunities available post 16. We have set up a new careers and enterprise company, working with LEPs. The first priority is to appoint an enterprise adviser attached to every school to bring people in for better career advice. I want the apprenticeship contract to have a commitment for the apprentice to go back to their school and talk to the young people about what they got out of their apprenticeship. They are more likely to listen to them, someone who is from their school and just three years or so older.”

2016

skills debate

Skills 20:20 expert panel discussion looks at the challenges and opportunities for the Sheffield City Region

OUR FUTURE IS IN OUR HANDS Harnessing the talent of young people to cope with an aging workforce is critical to the future of Sheffield City Region. Experts from across the public and private sector identified taking positive collective steps to ensure the workforce is fit-forpurpose had to be a major outcome from the summit. They wanted to see effective partnerships, bringing business and education closer

Panel Mark Easton, BBC (Chair) David Hughes, chief executive of the Learning and Work Institute. Michael Davis UK managing director of Ecorys David Cragg, deputy chairman of WorldSkills UK Jo Miller chief executive of Doncaster Borough Council

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together to develop strategies and change the culture when it comes to developing skills. Jo Miller, chief executive of Doncaster Borough Council said: “Our young people are no less clever, no less bright than any other young people anywhere else in the country. Our challenge is to make sure we harness all of that talent to take part in our growing economy. The other challenge is with an aging workforce, if we don’t crack skills then we could face a skills-led recession or skills-led immigration and it is our collective job to sort it out.” David Cragg is deputy chair of WorldSkills UK, which champions world class apprenticeships and technical skills. He argued much more needs to be done to open up business to young people so they can experience work. “I have had the privilege of overseeing the National Skills Show for the last five years with 80,000 visitors to Birmingham’s NEC,” he said. “What we demonstrate is that if you open young people’s eyes to the opportunities it fundamentally transforms their attitudes.

I challenge every employer to open their doors to allow young people to have a go at something for half a day or a day and you will start to shift attitudes. “This area has a workforce profile in all the critical industries which is going in the wrong direction. The most highly skilled are in manufacturing and construction – 45% of them are over 50. There is a fantastic opportunity for this city region with a key role for employers to establish long-term education, business partnerships and to underpin that with a campaign everyone can get behind for the jobs and skills you want for this area. You need a single focal point around which all these activities can take place which looks not at work experience but experience of work. We also need to upskill those already in the workplace.” Michael Davis, managing director of Ecorys, which provides research, consultancy and management services, warned a combination of government policies could impact on growing the workforce as businesses cope

skills debate

with managing change. “The combined effect of the National Living Wage, the Apprenticeship Levy and auto enrolment of pension – each impacting on costs, varying dependent on size – are things which employers are having to absorb and will make employment growth pretty challenging,” he said. “Most businesses have figured out how to absorb it for the next year but not the next five. It is going to change job roles. The digitisation of businesses is also creating different business models serving a greater audience than South Yorkshire. The businesses which will succeed are the ones which are most agile, able best to adapt and the challenge to the sub region is to come up with the services to cope with such significant changes.” David Hughes, chief executive of the Learning and Work Institute, turned to a theme which came up time and again throughout the summit – the need to work together. He said: “The real opportunity is long-term partnership between employers, colleges and the learning and training providers, making sure we can retrain people as work changes, as the digital revolution continues and people have to work longer. We need a partnership around influencing young people and adults about investing in themselves, helping them understand the jobs that will be available in the next 5 to10 years, the generic broadbased skills needed to navigate the labour market, rather than just job-specific skills, required for a working life of 50 years or so. We need people to think of learning as something you have to do at various stages of life and not just the transition from childhood to adult.” Anne Peat recently retired Pro-vice chancellor for learning and teaching at Sheffield University, now an Enterprise Advisor told the panel one of the main issues is convincing young people that you don’t go into an apprenticeship because you are not clever enough to go to university. “We have some very clever, highly intelligent apprentices,” she said. “The culture change has to come from what communities and parents talk about. If we can tackle that we are part way there. We need to get everyone

involved to pull all the strands together.” Jo Miller agreed. “ All the apprentices here are earning and learning. I don’t know if I would have gone to university, the first person in my family, the first person on my estate, if I had known I owed them £25,000 when I left. We were taught to live within your means. We have young people doing an apprenticeship, who will go on to get degrees with no debt and well paid jobs straight after. We need to make sure those apprentices are not just the children of the dads working in the businesses but are available to everyone. There is a huge job to educate parents and for businesses to open their doors.” Cllr John Burrows vice chair of the SCR combined authority remarked: “I despair sometimes when I hear ministers treating apprentices as second-class citizens. What about the fact apprenticeships can become graduate apprentices? We have to stop

complicating the process.” David Hughes said there was much prejudice and misinformation and said, when given the chance young people shine. “In the Humber we had 200 employers in the STEM sector facing skills shortages of technicians and not knowing where to turn,” he said, “so we put them in contact with colleges dealing with young NEETS (Not in Employment, Education or Training). These young people would normally not be considered by employers as they were seen as feckless, wouldn’t turn up on time, wouldn’t look people in the eye, wouldn’t interview well etc. Give them the opportunity and it worked and has transformed that traineeship pathway, something we hope to repeat in Doncaster for the HS2 academy.” Phil Hayes, Operations Director at Groundworks said they delivered programmes for people who have been unemployed for 12 months or more and left school with low attainment levels. Quite a lot of the apprenticeships that are available and accessible have a minimum attainment level. The young people are often interested and would like to get involved but employers won’t touch them because of their attainment level. Jo Miller said: “One of the things I would be asking about apprenticeships is the obsession with Level 2 equalling Maths and English GCSE. It is a travesty that a young man I spoke to recently was not able to complete his plastering apprenticeship because he couldn’t get the right grades, trying three times, but he was a very good plasterer. We must be able to equate Level 2 with functional skills, not just for those people but for those who find themselves made redundant in the future. They all have a valuable contribution to make to the economy and I don’t really care if they can’t get GCSE level C Maths.”

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“I challenge every employer to open their doors to allow young people to have a go at something for half a day or a day and you will start to shift attitudes.”

2016

interview

TODAY’S APPRENTICES, TOMORROW’S BUSINESS LEADERS Jo Miller, chief executive of Doncaster Metropolitan Borough Council and the skills lead for the Sheffield City Region, explains why apprenticeships are critical. Paul Robertson reports 18

2016

interview

Busting myths and ensuring apprenticeships are not seen as a second class alternative are mantras which are close to Jo Miller’s heart. The chief executive of Doncaster Metropolitan Borough Council and Sheffield City Region chief executive for skills, employment and education earned strong applause and praise on social media for her contributions at the skills summit. During the expert panel discussion, she spoke of her frustration at the focus on English and Maths qualifications rather than abilities and in a debate to showcase apprenticeships, she drew on her own personal experiences to highlight just how valuable the vocational route can be. “Every person who is under-employed or not working to the best of their potential is a real gap and a lag on UKplc,” she said. “My grandad was a street cleaner for Liverpool Corporation and it is not a bad thing that his grand-daughter has gone on to be chief executive of a different council. “That mobility needs to exist for all of our people. In my case it was about an apprenticeship, through an employer taking me on halfway through my journey, paying for some of the bits I did at university. “In this city region you can be an apprentice in anything from A-Z, from accountancy to zoo keeping with some things in the middle such as equine dentistry.” Mrs Miller had already told the audience of employers from the public and private sector, training providers, educators and apprentices, how she had dropped a future apprentice (her seven-year-old son) at school that morning while his former apprentice dad was carrying out work training. “Today’s apprentices are tomorrow’s business leaders – at some point the apprentices in this room will be running the companies which make this city region a successful place,” she said. Mrs Miller pointed out some of the area’s most successful business leaders had left school with few qualifications but had gone on to build great companies creating jobs and wealth for the economy. “It is not just about English and Maths – it is about functional skills and starting somewhere, so what are we going to do to make sure that apprenticeships are better?

“The first thing we need to do is make sure they are seen as prestige and not seen as a second class, non-clever route into employment. We need to reclaim that ground for apprentices, parents and everyone else.” Mrs Miller said last year there were the equivalent of five Wembley Stadiums or 32 Doncaster KeepMoat Stadiums or 11 Anfields – in other words 500,000 apprenticeship starts in England. While apprenticeships remain a key cornerstone of Sheffield City Region’s economy, Mrs Miller said other issues raised throughout the summit would be addressed by the LEP and combined authority. “We are listening and we are going to take forward proposals from pre-apprenticeship and in-work training as part of our next set of devolution asks – that is the power of getting together,” she said. “As an employer, my challenge to my staff is around when I recruit accountants, planners, lawyers and social workers I need to be thinking of recruiting people at entry level jobs and taking them through the apprenticeship system. “We need to make sure we have the best facilities – the Advanced Manufacture and Resource Centre in Rotherham is a fantastic example of that as is the National High Speed Rail college in Doncaster. Just in putting the bid together to bring the rail college here, we know that’s what businesses need. The people who helped us were the industry leaders and almost all of them started their job as apprentices and are training today’s apprentices.

“Through Skills Made Easy, quality courses are available for a range of new sectors and we have helped ensure 40% of SMEs are now engaged with the apprenticeship system simply because they didn’t know how to do so before. “We need to bust the myths – apprenticeships are not just for big business. They are not expensive, grants are available and we have the levy to make it even better. “We can and have done a lot around the City Region about getting people into employment, not just young people, but those falling out of employment who still have a valuable contribution to make but we need to do more. Through partnerships and events like this is one way we can do that.”

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Question time Jo asked a series of questions to which the audience responded via a voting keypad. What is the total financial net gain to employers in England who have an apprentice? 85% correctly guessed £1.4bn as opposed to £1.4m or £140,000. How many have taken on an apprentice in the last 12 months? 81% (still more to do). How many of you know how to sign up an apprentice? 90% yes.

2016

apprenticeships

STAR PERFORMERS Mark Easton talks to probably the most important people in the room, people going through apprenticeships now and who are at the sharp end of managing that process

NEIL FOWKES APPRENTICE MANAGER JCB

“We have around 200 apprentices on our programme at the moment. We will be looking to bring in 80-100 in September in a huge variety of roles from engineering and manufacturing but also events management, sales, marketing and so on. Some of the most senior managers and directors in our organisation have come through the apprenticeship route. Most started in engineering but they have gone on to a real variety of roles. When I started as an apprentice machinist, I never thought I would be leading some of the learning and development functions within Rolls Royce and then as JCB apprentice manager. It gives you such solid foundations for the rest of your career. It is a great way to start. There have been questions around the education system but what we see year-on-year is superb talent who go on to add great value to us. We are extremely proud of them. They add value within days of joining and are a significant part of our 20

2016

business, whether it is as ambassadors for JCB, going back into schools to talk STEM, which will hopefully attract the future talent to us, as well as the projects they are involved with in the workplace. I did my A levels at sixth form college in Maths, Physics and Economics. I knew that I wanted to do mechanical engineering but I also knew university wasn’t for me. I applied to the five Russell Group universities, got all my offers but it was a back-up because what I really wanted to do was a Higher Apprenticeship. I applied to JCB because it seemed the right apprenticeship for me. I get a NVQ Level 4 in engineering manufacture and a foundation degree in mechanical engineering as part of my apprenticeship but JCB also offer a top up degree and I will be completing a BEng in mechanical engineering next year.”

ADAM VARLEY, HIGHER APPRENTICE, JCB

“MY ROLE is a hydraulic engineer which I do four days a week and I usually attend university one day a week. I work as part of a team of five on projects, which involves working with

colleagues in India, China and Brazil. The first two to three months was really hard coming from A levels into a fully engaged role but now I am fully integrated with my team. I have been with JCB for three years and I am the go-to guy for a particular product range. I can safely say if I had gone to university and come out I would definitely not be able to do the job role I can do today and it would take me a long time to get to the position I am at the moment.

SAMANTHA LAWSON NESTLE, CHARTERED MANAGEMENT DEGREE PROGRAMME

“I STARTED in supply chain for six months and I am now working in HR. Following that I will do six months in marketing and sales. I also go to Sheffield Hallam university to do a business management degree and we get chartered management recognition at the end of three years. We then get to choose where we want to specialise. In terms of university, there are skills you can learn in education but the skills you need for the workplace, no amount of education can teach you, so getting out there as soon as possible to learn those skills is really important.

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apprenticeships

AMONG MANY OTHER APPRENTICES AT THE CONFERENCE Emma Goddard, 25, a technical apprentice at Tata Steel, currently at Sheffield Hallam University studying Materials Engineering. “My apprenticeship is for three years and having completed my NVQ I am now on a Higher Apprenticeship. I went through a traditional route, finished my GCSEs got good grades, I went to do A levels got good grades again, applied for university got in but then decided I didn’t want to do that. I started doing a childcare apprenticeship working in schools but on finishing there I decided that wasn’t for me either. I wanted to do something I was more interested in so I applied to Tata Steel and I am very happy. I do six months rotation, so I get to see so many different aspects of the work. I am earning while learning and I have been exposed to professionals who have been in the business for 20 to 30 years. They can really help and guide you. Having someone there to say ‘I think you are best suited for this or that’ and level of support is really good. Doing the degree now is better – though as a

part-time student we have the same modules and deadlines as the full-time students – but I don’t have the debt and I do have the experience gained through work to help meet that challenge.” Emily Kerr, 19, Signs Express: “There was nothing I really wanted to do at university after leaving school so I went on to work at Meadowhall, saw the office side of things and decided it was what I wanted to get into. I am now doing a business administration apprenticeship which includes an accounts course. The support I get from the members of staff I work with - they have the experience to help you through – that’s the best part of it. I would encourage anyone to give an apprenticeship a go – the training you receive is better than any lecture. You are learning on the job.” Daniel Shepherd, 18, SVM Global: “I did my A levels in computing, maths and economics. I

was tempted to go down the university route, but it would have taken three or four years, got me into debt and I didn’t enjoy the theory behind computing so I ended up doing a work development apprenticeship at SVM Global. I wanted to go straight into being hands-on in a working environment. If you don’t enjoy classroom work this a great way of learning. I develop websites and software, working with people I want and hope to end up working with them in a full-time role once my apprenticeship is complete.” Tyler Hopkinson, works for her family firm Elphius Flux as marketing director: “As there are only three of us, I do take on a lot of other roles. I also work part-time in making the furniture from all the reclaimed salvaged parts. We make reclaimed furniture, we do shop fits, home décor, bar fits – it is a fantastic company. I was so in love with what we actually do if I didn’t work for my family I would definitely want to work for them.

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2016

facts & figures

GREAT PLACE TO LIVE AND DO BUSINESS Over £30m in economic output per year

40 rail stations in the SCR

Number of miles of road - 6,553

52,000 SMEs

SCR is Britain’s most concentrated and popular higher education destination outside London, with 12 universities less than an hour away providing more than 313,000 students and 92,000 graduates per year.

80% broadband coverage as of end-2014, but plans to increase to 98% of homes and businesses by end-2017

21,379 of apprenticeships undertaken annually - 4.3% of national total of apprenticeships

The Sheffield City Region has a diverse economy comprising a dynamic core city, important towns and market towns, fabulous countryside and a significant rural economy. The City Region encompasses more than 1.8 million people and approximately 700,000 jobs. The City Region is located at the strategic heart of the country. It is comprised of the nine local authority areas of Barnsley, Bassetlaw, Bolsover, Chesterfield, Derbyshire Dales, Doncaster, North East Derbyshire, Rotherham and Sheffield.

AND FINALLY...

The organisers of the inaugural Sheffield City Region Skills summit would like to thank all the delegates and speakers for giving their time. We will now be working with all our partners to draw up and deliver a revised skills strategy for the region. We will update you on progress at next year’s summit. We would also like to thank the following organisations for taking stands at the event:

Louise Bermingham - SCR Growth Hub louise.bermingham@sheffieldcityregion.org.uk Mike Garnock-Jones - Lifelong Learning, mike.garnock-jones@sheffield.gov.uk Sam Morwood - Sheffield Hallam S.Moorwood@shu.ac.uk Steve Fox - HS2 steve.fox@ipbcommunications.co.uk Peter Norriss - Skills Bank / PwC peter.norriss@strategyand.uk.pwc.com Eve Waite - Skills Made Easy 22

2016

Eve.Waite@sheffield.gov.uk Elizabeth Smith - Barnsley College E.Smith@barnsley.ac.uk Tim Gladman - RNN Group TGladman@nnc.ac.uk Amy Newton - Doncaster College amy.newton@don.ac.uk Holly Anderson - Sheffield College Holly.Anderson@sheffcol.ac.uk Jessica Darcey - Dearne Valley College jdarcy@dearne-coll.ac.uk

Delegates certainly got into the swing of things on the day as #scrskillssummit was trending on Twitter along with Daniel Craig's future as James Bond and the first day's play at Headingley in the England Sri Lanka Test Match. Jo and Craig were at the #scrskillssummit thinking ‘outside the box’ of how best to engage more employers in the Skills Bank Opportunities - @intouchcare Delighted to be an employer in the SCR that can maximise the opportunities available to overcome barriers and difficulties #scrskillssummit - @JoNorth8 JCB apprentices. Well done. You are an inspiration with tremendous work ethic. We need more like you! #scrskillssummit - @CoachFor_Change It’s a deal.. A skills deal! Resounding 97% yes to today’s launch of @SCRSkillsBank #SCRSkillsSummit @JilltyWhite Purpose of @SCRSkillsBank to “invest in things with most impact and unlock growth potential” #scrskillssummit @JackRCrane “We want to understand the things that added value from a training course.” @NorrissPeter @SCRSkillsBank #SCRSkillsSummit - @joshuablack

“SKILLS ARE VITAL. IF WE ARE GOING TO ATTRACT COMPANIES FROM AROUND THE WORLD TO INVEST IN THE REGION WE HAVE GOT TO MAKE SURE THAT WE HAVE A WORKFORCE THAT IS GOING TO BE FIT FOR PURPOSE.”

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