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LONDON HIGHER Strategy Brochure

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LondonHighly Skilled A strategy for increasing higher education’s provision of skills to London’s workforce Contents Foreword 2 Summary 3 The case for intervention 4 The market for Higher Level Skills 5 Higher Level Skills provision to businesses 6 London’s Higher Education Institutions 7 The way forward 8 Functions and actions of the London Higher Business Development Unit (LHBDU) 9 What does success look like? 10 Staged implementation of the LHBDU 11 The partners 12 Membership of the London Higher Skills Board 13 Foreword 2 London has one of the largest and most diverse clusters The London Higher Skills Board was tasked with guiding of universities and higher education (HE) colleges in the the project.The Board brought together a group of senior world, employing over 55,000 staff and teaching nearly business people and heads of universities and HE colleges, 400,000 students from around the world. Its global alongside representatives from the Sector Skills Councils reputation is second to none, with more international and Lifelong Learning Networks, and observers from students coming to London to study (86,000) than to any HEFCE and the Greater London Authority.The main aims other world city. Its research base attracts £700 million of the project were to research the market for HLS per year of funding of which £90 million comes from provision to employees in London, to identify the key outside the UK. barriers to fulfilling market potential, and to propose a strategy for increasing the share that London’s HE Yet the HE sector’s substantial intellectual and capital institutions (HEIs) currently extract from this market. resources have so far played only a small role in raising the skills of London’s workforce. Employers in London currently This publication highlights the key findings from the invest £2.3 billion per year on Higher Level Skills (HLS) research, which was delivered for the London Higher Skills training and professional development for their staff, but Board by independent consultants Grant Thornton.The only about £64 million (less than 3%) of this is spent with conclusions and recommendations, in particular for the the capital’s universities and HE colleges. formation of a new and dedicated Business Development Unit, are fully supported by the Board. London Higher, London First and the Learning and Skills Network (LSN) decided to explore the potential to expand the role of London’s universities and HE colleges in this Anthony Salz market. To do so would bring clear and substantial Chair, London Higher benefits to employers and employees alike, as well as to Skills Board the institutions themselves.This would in turn make a May 2008 major contribution towards providing the HLS that London’s workforce needs if the capital is to remain competitive in a truly global economy. Using funding support granted by the Higher Education Funding Council for England (HEFCE), the three partner organisations initiated a major research project in the autumn of 2007. £2.3 billion the amount employers in London currently invest per year on HLS training and professional development for their staff 3 Summary Higher Level Skills (HLS) - the skills associated with higher education - benefit the individuals who achieve them, the businesses they work in and the UK economy as a whole. They facilitate innovation, prosperity and regeneration, driving forward the competitive position of the UK. Our mission The LHBDU will help build the capability and capacity of In order for the UK to be able to compete effectively in the London’s HEIs, so that they can increase the level of global economy, it is imperative that the percentage of the transactions with business. It will undertake the existing workforce with HLS increases. following activities: A) identification and understanding of the market: London’s universities and HE colleges have a major part to play in helping to achieve this critical goal by increasing • identification of supply – understanding which HEIs their provision of HLS to the workforce. supply the professional development market, and identifying those HEIs who want to participate in The market for HLS in London is estimated to be £2.3 the LHBDU and understand their current market billion. However, HEIs have a less than 3% share of this offering, including an employer facing website to and developing these institutions’ provision is a challenge: promote the registered HEIs and signpost providing HLS to the workforce has not been a traditional employers to named points of contact area of focus for most HEIs and therefore there are barriers • identification of demand – understanding the to overcome. demands of London’s business sectors, identifying market gaps and identifying early adopters willing Based on original research, and taking into account to engage with HEIs through the LHBDU developing policies in London and elsewhere, the strategy explained in the remainder of this publication will help to B) marketing activities to provide a consistent message of overcome those barriers. It will also enable the many the benefits of HEI provision and long term marketing positive examples of good practice to be exchanged and support for HEIs lessons learned elsewhere to be shared. C) provision of employer engagement information and guidance to HEIs to assist in delivery The strategy D) facilitation of collaboration to support HEIs to enhance The centrepiece of the strategy is to set up a business their offering to employers.The LHBDU will facilitate development service for London’s universities and HE collaborative working between HEIs with other HEIs, colleges - the London Higher Business Development Unit Further Education Colleges (FECs), Lifelong Learning (LHBDU). This structural intervention will bring clarity and Networks (LLNs) and commercial providers as well as focus to the London HEI provision of HLS, supporting HEIs collaborative ventures with employers or groups of to increase the quality and quantity of transactions with employers employers, and promoting the institutions to employers. E) source and disseminate examples of good practice to ensure that lessons are learned and that success stories are shared with employers and HEIs to encourage participation in the market. The case for intervention 4 The Leitch Review of Skills identified that over 70% of the UK's 2020 workforce have already completed their compulsory education and called for an increase in the number of adults qualified to Level 4 and above from 29% in 2005 to 40% by 2020. The importance of Higher Level Skills The Department for Innovation, Universities and Skills HLS are the skills associated with higher education, for (DIUS) reinforced the Leitch Review with the publication example training at degree level, equivalent or above, and of two papers, (one in July 20072 and one most recently in executive and professional development courses, including April 20083), both highlighting the Government’s short courses. commitment to the HLS agenda. Skills development has moved up the Government’s Employer Engagement agenda in recent years with two White Papers on Skills In addition to the supply of top quality graduates and published in 2003 and 20051. postgraduates, London’s HEIs already have strong links to business and industry. Activities such as contract research, The Leitch Review of Skills, commissioned by the consultancy and intellectual property exploitation provide Government in 2004, highlighted the need to increase the the foundation on which HEIs can build their workforce percentage of the UK workforce with HLS if the UK is to development offer. compete effectively in the global economy, particularly as competition grows from emerging economies such as Now is the time to build upon this strong foundation and India and China. further extend the links between business and HEIs to the training and development field. Whilst many HEIs already It concluded that the growth of skills at Level 4 and provide HLS to the workforce, there is now the opportunity the skills needs of employers could only be achieved to increase this provision dramatically. through rebalancing HE priorities to become more flexible and responsive. 1 DFES (2003), 21st Century Skills: Realising our potential. DFES (2005), Skills: Getting on in business, getting on at work. 2 DIUS (2007),World Class Skills: Implementing the Leitch Review of Skills in England. 3 DIUS (2008), Higher Education at Work – High Skills: High Value. The universities and higher education colleges in London are a world class cluster and can play a major role in ensuring that ‘‘the skills challenges described by Lord Leitch are met in London. Professor David Latchman ’’ Master of Birkbeck, University of London and elected Chair of London Higher Over of the UK’s 2020 workforce 70%have already completed their compulsory education 5 The market for Higher Level Skills London HEIs’ income from HLS training to employers represents about 3% of the identified market.There is, however, a large potential market for employer-led skills development and scope for the HE sector. The market for Higher Level Skills Consequently, there will inevitably be competition in the The market for HLS in London is estimated to be £2.3 supply of graduates to the London market that is not billion. Yet income to London HEIs from HLS training to restricted to London based institutions, but encompasses employers is estimated to be, very approximately, only HEIs nationally and internationally. £64 million - a market share of less than 3%. HEIs in London may well need to adopt different market Although this strategy is aimed at London’s universities entry strategies from their counterparts elsewhere in the and HE colleges, it is recognised that these HEIs should country, differentiating themselves on quality and value and will aim to access more than the London training and (as against in-house/private provision) rather than development market. meeting an incipient demand.
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