Tag Archives: Unemployment

Report launch: how do we engage more employers in employability and skills programmes?

Jo IngoldDr Jo Ingold, Lecturer in Human Resource Management and Public Policy, CERIC, Leeds University Business School.

3 December 2017, at an event in Westminster for policymakers, practitioners and academics, we’ll be launching our final report from a four-year ESRC-funded research project about employer engagement in employability and skills programmes.

Employers are critical to the success of employment activation and employability programmes, yet there’s been surprisingly little research about employers’ perspectives on them. In the first phase of our research, we surveyed over 1,500 employers in the UK and Denmark. In the second phase, we undertook more than 100 in-depth interviews with employers and providers delivering employability and skills programmes in both countries, to provide a ‘two-sided’ perspective on employer engagement.

Employers’ perspectives on employability programmes

Employers were generally positive about employing unemployed candidates, but less so about employability programmes, particularly in the UK. A critical difference between the countries was that, while every Danish employer we interviewed had taken part in at least one programme (and often more), among UK employers participation was more sporadic. UK employers were most familiar with apprenticeships above other provision. A key reason for not engaging in programmes was that employers thought they were inappropriate to their needs. They were put off by the large number of programmes and providers, lacked knowledge about them and about how to access programmes, and were unsure about their value. The most popular reasons for engaging were to access an alternative recruitment channel, to develop talent and to ‘give people a chance’.

Critically, employers felt that the benefit conditionality system and employability programmes themselves could ‘tarnish’ candidates. Employers were particularly dissatisfied about receiving large numbers of job applications as a result of conditionality and entitlement conditions. The lack of a tailored service from providers could also result in employers being sent candidates who were of ‘poor quality’, unsuitable, or ill-prepared.

Employers were generally positive about employing disabled people, although only a small number of UK employers had done so, and not necessarily through employability programmes. In Denmark the Flexjobs scheme for disabled people (offering subsidized jobs under special conditions, in-work support and reduced working hours) was popular with employers. Importantly, in both countries very few employers had made changes to their recruitment and selection processes to encourage candidates from disadvantaged groups, despite recognising the shortcomings of the standard application and interview method.

Our survey data found two distinct groups of employers in terms of engagement in employability and skills programmes. Firstly, those who were ‘instrumentally engaged’ on an ad hoc basis in specific initiatives but not that ‘committed’ to them. Secondly, those who were ‘relationally engaged’ and were more committed and involved in a broader range of programmes on a repeated and sustained basis. This distinction was supported by the interview data. The survey and interview data showed that relational engagement was higher in Denmark than the UK. Crucially, UK employers did not feel that employability programmes were designed with their needs in mind and, compared with Danish employers, had very low trust in public policies.

Providers’ perspectives

The data from providers in both countries showed striking similarities with the employer data, in terms of barriers to engagement and reasons for engaging, as well as in their perspectives about what relational (or in-depth) employer engagement meant. However, the fact that UK employers had less ‘institutional’ trust in government policy and programmes critically left more ‘gaps’ to be filled by providers. They tended to achieve this through the development of ‘inter-personal’ relationships with employers, based on trust. So these relationships were largely between individuals from provider organisations and from businesses, rather than based on relations between organisations. But, although these relationships were critical to employer engagement, they were also fragile and trust could be easily lost. This wasn’t helped by changes to programmes, regulations and contracts in localities.

UK providers also expressed concern about employers’ fluctuating demands for labour, which were difficult to meet. Additionally, there was a gap between employer demands and the individuals that providers’ held on their caseloads, who were possible candidates for vacancies. Providers felt that this gap could not be filled by programmes in their current form. One way of providing a good ‘offer’ to employers was by being able to provide a ‘spectrum’ of services (ranging from pre-employment training to in-work support and training). But providers could only really do this successfully if they’d won a range of employment and skills contracts (from different government departments), or merged with or acquired organisations that had. Alternatively, providing a range of services to employers required working with other organisations, sometimes competitors (what is often referred to as ‘co-opetition’).

This research reveals the extremely fragmented landscape of employment and skills provision in the UK, as well as the remoteness of employers from them (notably the situation was slightly different in Scotland, where these policies are devolved responsibilities). The current formulation of employment and skills policy assumes that employers will engage and will provide opportunities for unemployed individuals. But this research (and the previous research we conducted about the UK Work Programme) suggest that employers are not beating the door down to take part in these programmes, despite them being a potential avenue for increasing workforce diversity. If the government wants to seriously address labour market disadvantage and in particular to halve the disability employment gap, an urgent re-think is needed about the current direction of policy.

Policy recommendations

  • In their current form, programmes are not working effectively for employers. Employers still lack knowledge about programmes, don’t recognise their potential benefits and consider them inappropriate to their needs.
  • A smaller number of programmes, with more continuity and stability but less complexity and fragmentation would make it easier for employers to engage.
  • Changes need to be urgently made to avoid employers receiving large numbers of job applications from benefit claimants in order to fulfil conditionality requirements, as this is damaging to employers’ views of initiatives. A critical aspect of this is better targeting of applications to employers.
  • Devolution is an important opportunity to improve employer engagement in the design and implementation of initiatives and to devise programmes that are responsive to local needs.
  • Merging different government departmental funding streams for employability and skills provision would be helpful, especially as the government looks to replacement European Social Fund provision.
  • More employers need to be equipped with information about ways to make their recruitment and selection processes more inclusive and effective.
  • To maximise resources and to provide a better service to employers, we need more mechanisms for sharing evidence-based good practice across different providers, programmes, cohorts and areas, which currently the competitive contracting frameworks mitigate against.

This research was funded by the Economic and Social Research Council and followed on from ‘Seedcorn’ research funded by CERIC and Leeds University Business School. More information about the research can be found here.

 

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Out of work and low on enthusiasm: young Germans are tuning out of politics

Vera - TheConversationBlog Header

Every third German between 18 and 30 years old considers themselves to be in a “precarious” position, engaged in temporary, unstable or non-standard employment. This is happening against the backdrop of the glorious reputation of the German training and education system, low unemployment rate and comparatively generous welfare state.

And with an election just days away, question marks remain over this group. Will they radicalise, and support populist parties? Will they stay away from the polls altogether?

Economic uncertainty has disproportionately affected young workers, who are far more likely to find themselves in unstable employment than their older counterparts. Overall, 54% of employees between 15 and 24 work in atypical employment – 53% are on temporary contracts while a further 4% are self-employed.

We surveyed 1,000 Germans between the ages of 18 and 30, and found that economically insecure young people are more at risk of feeling estranged from politics. People in insecure employment are significantly more likely to be an undecided voter or to not vote at all.

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Question: How interested would you say you are in politics? Author provided

They are almost twice as likely to be uninterested in politics as young people in secure employment. And they are more frustrated: up to 40% of them say they can’t change anything with their vote – compared to only 16% of young people in secure work.

Support for Angela Merkel’s CDU is lower among young people in insecure work than among the general German population. However, 26.8% said they still intended to vote for her. That compares to the national estimate of 37%.

The social-democratic SPD is still the second strongest party. Yet its support is on the wane thanks to its “Agenda 2010” – a policy introduced when it was in government that launched labour market reforms enabling precarious forms of work in Germany. Only 14% of our group of young insecure workers would vote for SPD compared with the 20% projected share among the general population.

Not into smaller parties

The German election system is representative. Parties with more than 5% of the vote get seats in the lower house of parliament. This year, four additional parties are likely to make it into parliament.

Alternative for Germany (AfD), a right-wing nationalist party is expected to secure 12% of the vote. Our survey shows AfD enjoys only a modest 4.3% support among young Germans, a share that does not increase among those out of stable work. The Liberals (FDP), who were absent from the lower house during the last legislative period, may get 9% of the youth vote, matching the predictions of the general vote – though we see much less support among young people in precarious work.

Left parties like the DieLinke or Greens get slightly higher shares of votes among young people in precarious work compared to people in stable work. Together, the smaller parties do get 5% of votes among young people but none attracts enough support to make it into parliament alone.

Reluctantly backing the status quo

Young Germans in precarious positions can’t seem to find a political party that represents their interests so they are likely to stay away from politics and elections. Surprisingly, if they do vote, they do as a majority support centre-right parties.

Politically, Angela Merkel has attracted a lot of support and respect for her open borders policy towards refugees. She is also credited with modernising the CDU, enabling the right to same sex marriage and making it legal for same-sex couples to adopt. Merkel’s CDU is a less conservative party than that of Helmut Kohl, which may be why it appeals to our group when they do vote.

At the same time, the Social Democrats have moved towards the middle and lost their distinct profile as a workers’ party committed to social justice.

A sociological explanation for this situation would be that precarity has already become part of an accepted new normality that the young generation does not rebel against. Rather than trying to change their lot with their vote, they turn their back on politics. They may come to change their minds on this point, but it doesn’t seem likely for this election.

Authors: Dr Vera Trappmann, University of Leeds; Dr Danat Valizade, University of Leeds
Originally published on The Conversion, 21st September, 2017

Government rhetoric is likely to turn off business and undermine a flagship policy

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Dr Jo Ingold

Everyone knows someone who has experienced, or is currently experiencing, job insecurity, unemployment or underemployment. In the past, it was largely those at the lower end of the labour market with low, or no, skills or qualifications who were most likely to find themselves without work. But in the current recession, anyone can be unemployed – whatever their skill or qualification level, whatever job or industry they’re in.

The Government repeatedly claims that they want to help people into work. They argue that their combination of tax and benefits reforms and the expansion of welfare to work programmes are the best ways to do this. They also make little secret of the faith they place in enterprise and the private sector to get the economy moving and to tackle unemployment. As Iain Duncan Smith said in a speech in Madrid in July, 2011: “Government cannot do it all. As we work hard to break welfare dependency and get young people ready for the labour market, we need businesses to give them a chance”.

There can be no doubt that employers are fundamental to the success (or failure) of welfare to work initiatives, such as the Work Programme, introduced in 2011. The Work Programme is the cornerstone of the Coalition Government’s employment policy. Central to its design is a network of mainly private providers, contracted to deliver tailored assistance to get the long-term unemployed back into work.

As the CBI has highlighted, the Work Programme can offer a range of benefits to employers looking to hire, including tailored packages which reduce recruitment costs and on-going support. Recently, here at CERIC, I’ve been researching (1) whether and why employers do or do not recruit from the Work Programme, and (2) how providers can persuade employers to give more job opportunities to the long-term unemployed. In the past year I’ve surveyed employers and interviewed providers and other key stakeholders. This research has highlighted two important barriers to persuading employers to recruit unemployed people. These are employers’ negative perceptions about unemployed people, and their portrayal in the media.

The first barrier is relatively well-known: for example, in a survey by the Institute of Leadership and Management a quarter of employers said that they were less likely to recruit people who were long-term unemployed.

Also well-known are the views put forward by some of the media about people claiming benefit. However, the Government itself is also increasingly talking about shirkers, scroungers, welfare dependency and benefits as a ‘lifestyle choice’. Government ministers present erroneous statistics about unemployment, worklessness and benefit receipt. They also focus on specific, individual and unrepresentative cases. This not only presents an extremely misleading picture. It is potentially sabotaging the delivery of a key government policy, hindering both those searching for work and those at the coalface who are actively involved in assisting them. Kayleigh Garthwaite  highlighted this recently in relation to long-term sick and disabled people.

Those who took part in my research, as well as employer organisations such as the CBI have suggested that the Government should do more to promote the benefits of the Work Programme to employers. Painting those who are unemployed, lone parents or disabled as shirkers is unlikely to address employers’ concerns about hiring people who have been out of work for a long time. On the contrary, it is far more likely to lead to the cementing of any existing perceptions that employers may have: that people on benefit lack motivation, self-discipline or that they are never going to be the most promising candidates for jobs. At a time when finding any work is difficult enough – let alone sufficient, regular work that pays the bills – this seems perverse.

The Government says that they want to move people off benefit and into work. To this end, Ministers and MPs need to be ambassadors for unemployed people. A myriad of evidence over the years makes it clear that very few people actually want to live on benefit. Most people who are unemployed want to work. One thing that is unlikely to be effective in helping them into work is portraying unemployed people as somehow ‘deficient’, reinforcing stereotypes based on prejudice, rather than evidence. This is doing unemployed people – and businesses – a severe disservice. Through its rhetoric around benefit receipt and unemployment, the Government is not only kicking people when they’re down. They’re undermining their own policy and potentially wasting large amounts of public money in the process.

Dr Jo Ingold is a Post-doctoral Research Fellow at CERIC.