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Tomorrowā€™s Leaders
March 2011




Patrick Woodman and Paul Hutchings
1. Introduction
                   This paper presents the results of CMIā€™s Tomorrowā€™s Leaders survey in which we set out
                   to examine managersā€™ perceptions about young people and the education system.

                   Managersā€™ concerns about young peopleā€™s education are not new. Seventy-nine per
                   cent of managers surveyed by CMI in 2000 agreed that failures in the education
                   system are contributing to a skills crisis in the UK. A decade later, we wanted to revisit
                   some of those issues.

                   The research was conducted in early 2011 in a period of rising youth unemployment.
                   Nearly a million people aged between 16 to 24 years old are currently unemployed,
                   equating to 20.5 per cent of the total.2 Amid widespread concern about their futures,
                   it was timely to ask managers how they feel education could better prepare young
                   people to enter the world of work.

                   With the forthcoming launch of ā€˜Campus CMIā€™, our new programme giving young people
                   the opportunity to take accredited team leading and management qualifications alongside
                     their studies, this survey presented an opportunity to put a number of questions to
                       our members. How do managers rate young peopleā€™s education today? What do
                        managers look for when recruiting young people? What are the drivers and
                         barriers affecting employersā€™ involvement in young peopleā€™s education?

                         The findings suggest that managers in early 2011 still have major concerns.
                          Sixty nine per cent believe that failures in the education system are damaging the
                          UKā€™s economic performance, with 73 per cent believing they are contributing
                          to a skills crisis. Nine out of ten managers feel that young people often
                          need training in basic skills when they enter the world of work, and while
                         communications skills are seen as the most important skills for young people
                        when they start work, current levels are viewed as poor or very poor by
                       51 per cent.

                     However, the report also identifies some areas where action could help improve
                      young peopleā€™s employability ā€“ whether, for example, through the expansion of
                      Apprenticeships or through greater involvement of employers with schools. Initiatives
                      which provide a platform for employers to support the local community, providing a
                     straightforward platform for involvement and minimising bureaucracy,
                     are likely to be well received.

                   By helping young people gain qualifications, CMI will help improve employment prospects
                   and close the gap between entry-level skills and employment needs; and, in the end,
                   build a stronger, better performing base of UK managers.



     Methodology   Twenty thousand CMI members were invited to take the survey in late January and
                   early February 2011. In total 585 responses were received coming from all over the
                   UK and all levels of management, a relatively low response rate for CMI surveys.
                   Throughout the survey and this report ā€˜young peopleā€™ are classified as those between
                   16 and 21 years old.




                   1. Known then as the Institute of Management
                   2. Office for National Statistics. February 2011. Labour market statistics ā€“ Statistical Bulletin. Available
                      at: http://www.statistics.gov.uk/pdfdir/lmsuk0211.pdf



                                                                                                                                  2
2. Managersā€™ perspectives on the education system
2.1 Are failures in the               A majority of the managers surveyed appear to have concerns about the education
    education system                  system. Only one in five managers agree that the education system develops young
          harming the                 peopleā€™s skills to a satisfactory level, while 58 per cent disagree. Even more alarmingly,
            economy?                  nearly three quarters agree that failures in the education system are contributing to a
                                      skills crisis in this country and 69 per cent that failures are harming the UKā€™s economic
                                      performance.


                      Failures in the education system
                     are contributing to a skills crisis                                    3 9             16                      42            31
                     in this country

                    Failures in the education system
                    are damaging the UKā€™s economic                                         3 10             19                          41        28
                    performance

                    Overall, the education system
                    develops young peopleā€™s skill          11                   47                          22                19        1
                    to a satisfactory level
                                                                                                Negative %       Positive %

                          Strongly                         Neither agree                     Strongly
                                            Disagree                             Agree
                          disagree                         nor disagree                      agree



                                      Figure 1 Managersā€™ attitudes about the education system

       2.2 How can                    Overall only 12 per cent of managers agree that the education system is responsive to
employersā€™ needs be                   employersā€™ needs with 65 per cent disagreeing. In terms of priorities for the education
     better served?                   system, managers firmly believe that giving young people the skills they need at work
                                      should be the top priority. Managers support offering opportunities to develop
                                      management and team leading skills as well as basic employment skills such as
                                      customer care to young people whilst at school, as shown in Figure 2 below.




   Giving young people the skills they will need at work
   should be the top priority for the education system
                                                                                           2 7        8                 42                   40


   Young people should be given opportunities to develop
   management and team-leading skills at school
                                                                                           15       13                             53             28


   Young people should receive basic employment skills such
   as customer care and team work, before they leave school
                                                                                         1 10       12                         50             27


   The education system is responsive
   to employersā€™ needs                        11                        54                          23             11 1
                                                                                         Negative %       Positive %

        Strongly                         Neither agree                       Strongly
                        Disagree                                Agree
        disagree                         nor disagree                        agree



                                      Figure 2 Responding to employersā€™ needs




                                                                                                                                                       3
With 91 per cent of managers agreeing that employers have a duty to develop the
skills of young people, it is clear that they do not have unrealistically high expectations
of the education system and they recognise their responsibilities. Yet 81 per cent feel
that young people often need training in basic skills when entering the world of work.
Managersā€™ views on the relative strengths and weaknesses of young peopleā€™s skills are
explored further in Section 4.



Employers have a duty to develop                    12 6                     50         41
the skills of young employees


Young people often need training in basic
skills when they enter the world of work
                                                    2 8                            59        31
                                            Negative %     Positive %

     Strongly                       Neither agree                       Strongly
                     Disagree                            Agree
     disagree                       nor disagree                        agree



Figure 3 Developing the skills of young people

When asked to compare young people
today to their counterparts ten years ago
only 9 per cent of managers agree that
people leaving education today are more
employable ā€“ with 55 per cent
disagreeing. Similarly, just 15 per cent
feel that young people today have
better knowledge of the world of
work than their counterparts ten
years ago. Employability and
understanding may not have got
worse ā€“ but it has not improved as
much as might have been hoped.




                                                                                                  4
3. Managersā€™ perspectives on recruiting young people
3.1 What do managers                 With rising youth unemployment figures highlighting the difficulties faced by young
        look for when                people in finding work, our survey asked managers to pick the three factors which have
     recruiting young                the biggest impact on their decision-making when recruiting young people. In two thirds
              people?                of cases managers highlight a candidateā€™s personal presentation, whilst three out of five
                                     point to academic qualifications and half focus on an individualā€™s ambition. This suggests
                                     that managers are often looking at characteristics that demonstrate an individualā€™s
        100%                         potential, rather than fully fledged skills themselves. Young people need careers advice
                                     that highlights the importance of factors such as personal presentation and displaying
        90%
                                     enthusiasm for work when applying for jobs.
        80%


        70%
                    66
                                     61
        60%

                                                        50
        50%


        40%                                                                  36
                                                                                               32
        30%
                                                                                                                29

        20%
                                                                                                                                  13                 11
        10%


         0%

                  Personal       Academic             Ambition              Wider           Vocational      Knowledge of       References       Knowledge of
                presentation    qualifications                        ā€˜non-professionalā€™   qualifications    the industry                      the organisation
                                                                         experience                             sector




                                     Figure 4 Factors with the biggest impact on recruitment decisions about young people

    3.2 What problems                As Figure 5 below shows, managers often have concerns when recruiting young
         do managers                 people. Attitude and ambition were the top concerns, with discipline and punctuality
 100%   associate with               also common concerns. Meanwhile, a lack of workplace skills such as communication
        young people?                is another major problem. Again, basic skills appear to be a potential problem area,
  90%
                                     with substantial concerns about levels of literacy and numeracy.
  80%


  70%
               66
                               63                61
  60%                                                              58

  50%                                                                               48

  40%                                                                                                  38
                                                                                                                     33
                                                                                                                                       30
  30%


  20%
                                                                                                                                                          15
  10%


  0%

          Attitude    Workplace skills Discipline and            Levels of        Levels of         Level of       Decision        Technical          Turnover
        and ambition eg communication punctuality                 literacy        numeracy         commercial      making            skills
                                                                                                   awareness       abilities



                                     Figure 5 Problems faced when recruiting young people




                                                                                                                                                                  5
3.3 What initiatives will           The survey asked managers to pick three initiatives which they felt could do most to
improve the employability             improve the employability of young people. Respondents highlighted better access to
        of young people?              Apprenticeships as the number one factor. This suggests that managers will be receptive
                                      to the Governmentā€™s plans to improve take-up of Apprenticeships ā€“ although, of course,
                                      access to Apprenticeships will only be improved if employers themselves decide to
                                      offer more places.
         100%
                                      Around half of managers feel that greater involvement from employers in the education
          90%
                                      process would help and 44 per cent would like to see an extension of work experience
          80%                         placements, suggesting that measures to build closer alignment between employers
                                      and educators could reap rewards.
          70%


          60%
                    55
                                      51
          50%                                          46                     44
          40%                                                                                        36
                                                                                                                              32
          30%
                                                                                                                                               29

          20%                                                                                                                                                  17
          10%


           0%

                Better access       Involving       A renewed              More work           Better provision of      Improved             More         Better access
             to Apprenticeships    businesses/    focus on core            experience            extra-curricular         careers          vocational   to Higher/Further
                                   employers in     academic               placements          activities focussed       guidance           training        education
                                  the education      subjects                                 on practical learning
                                     process                                                (i.e. Young Enterprise)



                                      Figure 6 Initiatives to improve employability

     3.4 What difference              Managers were also asked specifically how far they agree that a management
    would a management                qualification would benefit a young person. The most commonly agreed benefit was
     qualification make?              that the person would be more likely to get a job interview or offer. A similar, though
                                      slightly lower number, felt it would help as preparation for working life. While the
                                      question does not compare the benefits of a management qualification to other
                                      qualifications or alternatives, it certainly suggests that managers recognise the
                                      potential benefits of management qualifications which help improve young peoplesā€™
                                      practical skills.


                                                    More likely to get a
                                                                                       15         21                                  63                      10
                                                   job interview/offer


                                                  Better prepared for
                                                                                       9          21                                57                   12
                                                  working life


                                                  Sets them apart
                                                  from their peers
                                                                                 16               26                                57                   10


                                                  Potential to start work
                                                  on a better salary
                                                                                 6                34                                 51                  9
                                                                                       Negative %      Positive %

                                                        Strongly                               Neither agree                        Strongly
                                                                            Disagree                                  Agree
                                                        disagree                               nor disagree                         agree



                                      Figure 7 Benefits of a management qualificiation




                                                                                                                                                                            6
4. Assessing young peopleā€™s skills levels
       4.1 How do     To help give an assessment of the level of different workplace skills amongst young
     managers rate    people, the survey asked managers to assess young peopleā€™s skill levels, in general,
    young peopleā€™s    across a range of different areas. Perhaps unsurprisingly, computer/IT literacy came
            skills?   out top, rated as adequate, good or very good by 97 per cent of respondents.
                      In over 50 per cent of cases managers also rate young peopleā€™s creativity, basic skills
                      (literacy/numeracy) and team working skills as either adequate, good or very good ā€“
                      notwithstanding the concerns about basic skills identified in previous questions.

                      Communication skills ā€“ which managers view as very important, as discussed in
                      Section 4.2 below ā€“ are ranked as poor or very poor in 51 per cent of cases. Young
                      peopleā€™s commercial awareness and management skills are ranked as particularly poor.




                                        Computer / IT literacy [base 550]                                          4.03

                                        Creativity / innovation [base 535]                               3.03

                             Basic skills (literacy / numeracy) [base 547]                          2.72

                           Team working / interpersonal skills [base 545]                          2.68

                                 Reasoning / comprehension [base 545]                              2.67

                          Problem solving / analytical thinking [base 539]                        2.59

                                        Communication skills [base 548]                           2.55

                                      Commercial awareness [base 533]                      2.11

                                           Management skills [base 526]                    2.06
                                                                            1        2           3               4            5
                                                                        Very poor   Poor      Adequate          Good      Very good



                      Figure 8 Assessment of young peopleā€™s skills ā€“ mean score




                                                                                                                                      7
4.2 What skills should          As well as identifying areas of strength and weakness in young peopleā€™s skills, we also
   young people have            wanted to better understand which skills managers would most like young people to
when they start work?           have when they start work ā€“ with particular reference to management and leadership
                                skills. The survey asked managers to pick the top three factors from a list related to
                                the skills developed by entry level management qualifications.

                                The results suggest managers are emphatic about the importance of communication
                                skills, with nine out of ten identifying them as the skills they most want young people to
                                have when starting work. Planning and organisation skills and customer service skills
                                ā€“ which are likely to relate to communications skills ā€“ also stand out as desirable.



      100%
                  92
       90%


       80%


       70%
                                 62
       60%
                                              56
       50%


       40%


       30%                                                  29

       20%                                                                    17               15            13            11
       10%


       0%

             Communication   Planning and   Customer   Decision-making   Quality control   Team leading   Performance    Resource
                             organisation    service                                                       monitoring   management



                                Figure 9 Skills that managers most want young
                                         people to have when they start work




                                                                                                                                     8
5. Employer involvement in education
5.1 How are employers     Respondents to the survey are already involved with education in a variety of ways,
      getting involved?   although there remains significant room for growth. Forty-five per cent report that they
                          work with schools, 43 per cent with sixth forms or further education colleges, and
                          46 per cent work with higher education institutions. There were clear sector differences,
                          with private sector organisations the least likely to be involved with education ā€“ only
                          36 per cent work with schools.

                          When those organisations that are involved with education were asked how, the top
                          three responses given were Apprenticeship programmes, lecturing or contributing to
                          lessons and providing careers advice.


                           Area of involvement                                                                 %
                           Apprenticeship programmes                                                           43
                           Lecturing or contributing to lessons                                                34
                           Provision of career advice and guidance                                             34
                           Mentoring scheme (between employees and pupils)                                     30
                           Hosting seminars/conferences                                                        27
                           Developing curriculum/course content                                                23
                           Social initiatives (e.g. volunteer reading help)                                    18
                           Sponsorship arrangements                                                            14
                           Mentoring scheme (between employees and teachers)                                    8
                           Sponsoring an Academy School                                                         6


                          Table 1 Areas of employer involvement in the education system

            5.2 Drivers   All respondents were asked what the main drivers would be for getting their organisation
           of employer    involved in the education sector. The top driver, selected by just over half, is to support
        involvement in    the local community, with 44 per cent similarly describing it as part of their corporate
            education?    social responsibility. This suggests that those employer/education initiatives that are
                          locally embedded are likely to receive more buy-in from employers.

                          Access to a future talent pool is also an important driver ā€“ particularly in the private
                          sector where it comes out as the top driver with 53 per cent. A substantial number,
                          42 per cent, highlight the benefits to them in terms of promoting employee engagement.
                          Again this is higher in the private sector. Perhaps surprisingly, fewer managers across
                          the sample are focused on ensuring that course content is relevant and up to date,
                          which may reflect the importance of behaviour and attitudes as well as skills, indicated
                          earlier in the report. Only a small number viewed education initiatives as a way of
                          increasing profit ā€“ a number that remained low in the private sector.




                                                                                                                     9
100%


                                   90%


                                   80%


                                   70%


                                   60%
                                             52
                                   50%
                                                              49
                                                                                44                  42
                                   40%


                                   30%                                                                                    26
                                   20%
                                                                                                                                            13
                                   10%


                                    0%

                                          Supporting       Access to      Corporate social      Promoting            Ensuring course     Increasing
                                            local         future talent    responsibility       employee                content is          profit
                                          community           pool            (CSR)            engagement          relevant/up-to-date




                           Figure 10 Drivers for organisations becoming involved in education

5.3 Barriers to better     With half of managers suggesting that employer involvement in education will help
engagement with the        improve the employability of young people, it is also important to understand what
    education sector       barriers might be preventing more widespread engagement. From an employersā€™
                           perspective, half of managers suggest that the staff time commitment is a problem.
                           This factor is likely to be difficult to escape from; but it may be partially addressed if
                           the second most common response can be tackled, that of the bureaucracy required
              100%         to become involved. A substantial number, 37 per cent, also feel that there is a lack
               90%
                           of established platforms for allowing employers to get involved, which may suggest a
                           need for new platforms, whether led by Government or others, including professional
               80%         bodies. Indeed, our new programme, Campus CMI, may help address this issue.
               70%


               60%

                         52
               50%
                                          45
               40%                                         37                36
               30%
                                                                                                 24                    23                22
               20%


               10%


                0%

                      Staff time      Bureaucracy       Lack of an           Cost       Legal complications           Lack of            Lack of
                     commitment                         established                    (e.g. fear of litigation/     business      internal support
                                                       platform for                    background checks)             benefit       for involvement
                                                       engagement                                                                   with education



                           Figure 11 Barriers to employer involvement in education




                                                                                                                                                      10
6. Developing tomorrowā€™s leaders: CMIā€™s role
                 Equipping the next generation with the right skills and attributes for the world of work
                 is a challenge for all of society. It will lay the foundations of a successful and competitive
                 economy ā€“ and the urgency of the task is only heightened by present levels of youth
                 unemployment.

                 The findings of this survey offer a snapshot of some of the views held by managers
                 about this challenge. Clearly, there are widespread and important concerns about
                 the impact of shortcomings in the education system ā€“ whether upon individual young
                 peopleā€™s skills, or upon economic performance as a whole. Too many managers rate
                 young peopleā€™s skills as poor and too many have concerns about the attitudes or
                 behaviours of younger people. But as the findings also suggest, managers recognise
                 their responsibility for skills development and identify important drivers of closer
                 employer involvement in young peopleā€™s education.


    Campus CMI   As the UKā€™s only chartered professional body for management and leadership, CMI
                 has a duty to play a key role in tackling this issue. Driven by the need for change,
                 our new programme ā€“ Campus CMI ā€“ was officially launched in March 2011. We are
                 working with people aged 14-21, delivering qualifications in team leading and line
                 management in schools and FE colleges across the UK. Campus CMI sets out three
                 main visions for its training; to help young people achieve professional management
                 qualities, to ensure that school leavers are ready for work and to build relationships
                 between employers and schools.

                 The Campus CMI programme has delivered 1,500 CMI qualifications in 115 schools
                 across England and Wales during a pilot phase. It focuses on the practical workplace
                 skills that employers want to see from young people and to ensure that it answers
                 employersā€™ concerns, Campus CMI is led by a board of employers including Centrica,
                 Waitrose and National Grid.

                 Already, it has had a real impact in helping young peopleā€™s development. Forty students
                 have participated at Archbishop Tenisonā€™s School in Croydon. Head of Sixth Form Jim
                 Parrish says that Campus CMI ā€œgives students an insight into the real world of work
                 and the things that will be expected of themā€. Working with a local recruitment agency,
                 students are given ā€œa view of themselves from the perspective of a potential employeeā€.
                 As a result, students are not only gaining desirable skills but are learning about themselves
                 and building new confidence.

                 At Bathā€™s Writhlington School, 190 students have decided to undertake the programme.
                 Teacher Marie Getheridge says that some students lack the ā€œreal world experienceā€
                 needed to hit the ground running when they enter the working world. However, Campus
                 CMI ā€œprepares them in a way they wouldnā€™t have ordinarily been taught. It gives them a
                 thirst for work and the inspiration and knowledge to try and take their career as far as
                 they can.ā€ She also views it as critical that students are taught ā€œthe necessityā€ of having
                 management and leadership qualities. ā€œItā€™s important for students to grasp any opportunity
                 they can to develop their skills and confidence and recognise the importance of
                 leadership and how they can manage themselves and others.ā€

                 We aim to increase uptake of the Campus CMI programme to approximately 3,000
                 in 300 schools by the end of 2011 ā€“ and to widen the programme to deliver 10,000
                 qualifications within five years. For more information on Campus CMI and on how your
                 organisation can become involved, please visit www.managers.org.uk/CampusCMI




                                                                                                              11
Chartered Management Institute
The Chartered Management Institute is the only
chartered professional body in the UK dedicated to
promoting the highest standards of management
and leadership excellence. CMI sets the standard
that others follow.

As a membership organisation, CMI has been
providing forward-thinking advice and support
to individuals and businesses for more than
50 years, and continues to give managers and
leaders, and the organisations they work in, the
tools they need to improve their performance and
make an impact. As well as equipping individuals
with the skills, knowledge and experience to be
excellent managers and leaders, CMIā€™s products
and services support the development of
management and leadership excellence across
both public and private sector organisations.

Through in-depth research and policy surveys of
its 90,000 individual and 450 corporate members,
CMI maintains its position as the premier authority
on key management and leadership issues.


For more information please contact
the Policy and Research Department on:
Tel: 020 7421 2721
Fax: 020 7497 0463
Email: research@managers.org.uk
Website: www.managers.org.uk
or write to us at the address below.




Chartered Management Institute
2 Savoy Court, Strand,
London, WC2R 0EZ
Registered charity number 1091035
Incorporated by Royal Charter

Copyright Chartered Management Institute Ā©
First published 2011
All rights reserved. Except for the quotation of short passages for the purposes
of criticism and review, no part of this publication may be reproduced, stored in a
retrieval system, or transmitted, in any form or by any means, electronic, mechanical,
photocopying, recording or otherwise, without prior permission of the publisher.
Published as an online report only.                                                      4104 03/11

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CMI Tomorrow's Leaders

  • 1. Tomorrowā€™s Leaders March 2011 Patrick Woodman and Paul Hutchings
  • 2. 1. Introduction This paper presents the results of CMIā€™s Tomorrowā€™s Leaders survey in which we set out to examine managersā€™ perceptions about young people and the education system. Managersā€™ concerns about young peopleā€™s education are not new. Seventy-nine per cent of managers surveyed by CMI in 2000 agreed that failures in the education system are contributing to a skills crisis in the UK. A decade later, we wanted to revisit some of those issues. The research was conducted in early 2011 in a period of rising youth unemployment. Nearly a million people aged between 16 to 24 years old are currently unemployed, equating to 20.5 per cent of the total.2 Amid widespread concern about their futures, it was timely to ask managers how they feel education could better prepare young people to enter the world of work. With the forthcoming launch of ā€˜Campus CMIā€™, our new programme giving young people the opportunity to take accredited team leading and management qualifications alongside their studies, this survey presented an opportunity to put a number of questions to our members. How do managers rate young peopleā€™s education today? What do managers look for when recruiting young people? What are the drivers and barriers affecting employersā€™ involvement in young peopleā€™s education? The findings suggest that managers in early 2011 still have major concerns. Sixty nine per cent believe that failures in the education system are damaging the UKā€™s economic performance, with 73 per cent believing they are contributing to a skills crisis. Nine out of ten managers feel that young people often need training in basic skills when they enter the world of work, and while communications skills are seen as the most important skills for young people when they start work, current levels are viewed as poor or very poor by 51 per cent. However, the report also identifies some areas where action could help improve young peopleā€™s employability ā€“ whether, for example, through the expansion of Apprenticeships or through greater involvement of employers with schools. Initiatives which provide a platform for employers to support the local community, providing a straightforward platform for involvement and minimising bureaucracy, are likely to be well received. By helping young people gain qualifications, CMI will help improve employment prospects and close the gap between entry-level skills and employment needs; and, in the end, build a stronger, better performing base of UK managers. Methodology Twenty thousand CMI members were invited to take the survey in late January and early February 2011. In total 585 responses were received coming from all over the UK and all levels of management, a relatively low response rate for CMI surveys. Throughout the survey and this report ā€˜young peopleā€™ are classified as those between 16 and 21 years old. 1. Known then as the Institute of Management 2. Office for National Statistics. February 2011. Labour market statistics ā€“ Statistical Bulletin. Available at: http://www.statistics.gov.uk/pdfdir/lmsuk0211.pdf 2
  • 3. 2. Managersā€™ perspectives on the education system 2.1 Are failures in the A majority of the managers surveyed appear to have concerns about the education education system system. Only one in five managers agree that the education system develops young harming the peopleā€™s skills to a satisfactory level, while 58 per cent disagree. Even more alarmingly, economy? nearly three quarters agree that failures in the education system are contributing to a skills crisis in this country and 69 per cent that failures are harming the UKā€™s economic performance. Failures in the education system are contributing to a skills crisis 3 9 16 42 31 in this country Failures in the education system are damaging the UKā€™s economic 3 10 19 41 28 performance Overall, the education system develops young peopleā€™s skill 11 47 22 19 1 to a satisfactory level Negative % Positive % Strongly Neither agree Strongly Disagree Agree disagree nor disagree agree Figure 1 Managersā€™ attitudes about the education system 2.2 How can Overall only 12 per cent of managers agree that the education system is responsive to employersā€™ needs be employersā€™ needs with 65 per cent disagreeing. In terms of priorities for the education better served? system, managers firmly believe that giving young people the skills they need at work should be the top priority. Managers support offering opportunities to develop management and team leading skills as well as basic employment skills such as customer care to young people whilst at school, as shown in Figure 2 below. Giving young people the skills they will need at work should be the top priority for the education system 2 7 8 42 40 Young people should be given opportunities to develop management and team-leading skills at school 15 13 53 28 Young people should receive basic employment skills such as customer care and team work, before they leave school 1 10 12 50 27 The education system is responsive to employersā€™ needs 11 54 23 11 1 Negative % Positive % Strongly Neither agree Strongly Disagree Agree disagree nor disagree agree Figure 2 Responding to employersā€™ needs 3
  • 4. With 91 per cent of managers agreeing that employers have a duty to develop the skills of young people, it is clear that they do not have unrealistically high expectations of the education system and they recognise their responsibilities. Yet 81 per cent feel that young people often need training in basic skills when entering the world of work. Managersā€™ views on the relative strengths and weaknesses of young peopleā€™s skills are explored further in Section 4. Employers have a duty to develop 12 6 50 41 the skills of young employees Young people often need training in basic skills when they enter the world of work 2 8 59 31 Negative % Positive % Strongly Neither agree Strongly Disagree Agree disagree nor disagree agree Figure 3 Developing the skills of young people When asked to compare young people today to their counterparts ten years ago only 9 per cent of managers agree that people leaving education today are more employable ā€“ with 55 per cent disagreeing. Similarly, just 15 per cent feel that young people today have better knowledge of the world of work than their counterparts ten years ago. Employability and understanding may not have got worse ā€“ but it has not improved as much as might have been hoped. 4
  • 5. 3. Managersā€™ perspectives on recruiting young people 3.1 What do managers With rising youth unemployment figures highlighting the difficulties faced by young look for when people in finding work, our survey asked managers to pick the three factors which have recruiting young the biggest impact on their decision-making when recruiting young people. In two thirds people? of cases managers highlight a candidateā€™s personal presentation, whilst three out of five point to academic qualifications and half focus on an individualā€™s ambition. This suggests that managers are often looking at characteristics that demonstrate an individualā€™s 100% potential, rather than fully fledged skills themselves. Young people need careers advice that highlights the importance of factors such as personal presentation and displaying 90% enthusiasm for work when applying for jobs. 80% 70% 66 61 60% 50 50% 40% 36 32 30% 29 20% 13 11 10% 0% Personal Academic Ambition Wider Vocational Knowledge of References Knowledge of presentation qualifications ā€˜non-professionalā€™ qualifications the industry the organisation experience sector Figure 4 Factors with the biggest impact on recruitment decisions about young people 3.2 What problems As Figure 5 below shows, managers often have concerns when recruiting young do managers people. Attitude and ambition were the top concerns, with discipline and punctuality 100% associate with also common concerns. Meanwhile, a lack of workplace skills such as communication young people? is another major problem. Again, basic skills appear to be a potential problem area, 90% with substantial concerns about levels of literacy and numeracy. 80% 70% 66 63 61 60% 58 50% 48 40% 38 33 30 30% 20% 15 10% 0% Attitude Workplace skills Discipline and Levels of Levels of Level of Decision Technical Turnover and ambition eg communication punctuality literacy numeracy commercial making skills awareness abilities Figure 5 Problems faced when recruiting young people 5
  • 6. 3.3 What initiatives will The survey asked managers to pick three initiatives which they felt could do most to improve the employability improve the employability of young people. Respondents highlighted better access to of young people? Apprenticeships as the number one factor. This suggests that managers will be receptive to the Governmentā€™s plans to improve take-up of Apprenticeships ā€“ although, of course, access to Apprenticeships will only be improved if employers themselves decide to offer more places. 100% Around half of managers feel that greater involvement from employers in the education 90% process would help and 44 per cent would like to see an extension of work experience 80% placements, suggesting that measures to build closer alignment between employers and educators could reap rewards. 70% 60% 55 51 50% 46 44 40% 36 32 30% 29 20% 17 10% 0% Better access Involving A renewed More work Better provision of Improved More Better access to Apprenticeships businesses/ focus on core experience extra-curricular careers vocational to Higher/Further employers in academic placements activities focussed guidance training education the education subjects on practical learning process (i.e. Young Enterprise) Figure 6 Initiatives to improve employability 3.4 What difference Managers were also asked specifically how far they agree that a management would a management qualification would benefit a young person. The most commonly agreed benefit was qualification make? that the person would be more likely to get a job interview or offer. A similar, though slightly lower number, felt it would help as preparation for working life. While the question does not compare the benefits of a management qualification to other qualifications or alternatives, it certainly suggests that managers recognise the potential benefits of management qualifications which help improve young peoplesā€™ practical skills. More likely to get a 15 21 63 10 job interview/offer Better prepared for 9 21 57 12 working life Sets them apart from their peers 16 26 57 10 Potential to start work on a better salary 6 34 51 9 Negative % Positive % Strongly Neither agree Strongly Disagree Agree disagree nor disagree agree Figure 7 Benefits of a management qualificiation 6
  • 7. 4. Assessing young peopleā€™s skills levels 4.1 How do To help give an assessment of the level of different workplace skills amongst young managers rate people, the survey asked managers to assess young peopleā€™s skill levels, in general, young peopleā€™s across a range of different areas. Perhaps unsurprisingly, computer/IT literacy came skills? out top, rated as adequate, good or very good by 97 per cent of respondents. In over 50 per cent of cases managers also rate young peopleā€™s creativity, basic skills (literacy/numeracy) and team working skills as either adequate, good or very good ā€“ notwithstanding the concerns about basic skills identified in previous questions. Communication skills ā€“ which managers view as very important, as discussed in Section 4.2 below ā€“ are ranked as poor or very poor in 51 per cent of cases. Young peopleā€™s commercial awareness and management skills are ranked as particularly poor. Computer / IT literacy [base 550] 4.03 Creativity / innovation [base 535] 3.03 Basic skills (literacy / numeracy) [base 547] 2.72 Team working / interpersonal skills [base 545] 2.68 Reasoning / comprehension [base 545] 2.67 Problem solving / analytical thinking [base 539] 2.59 Communication skills [base 548] 2.55 Commercial awareness [base 533] 2.11 Management skills [base 526] 2.06 1 2 3 4 5 Very poor Poor Adequate Good Very good Figure 8 Assessment of young peopleā€™s skills ā€“ mean score 7
  • 8. 4.2 What skills should As well as identifying areas of strength and weakness in young peopleā€™s skills, we also young people have wanted to better understand which skills managers would most like young people to when they start work? have when they start work ā€“ with particular reference to management and leadership skills. The survey asked managers to pick the top three factors from a list related to the skills developed by entry level management qualifications. The results suggest managers are emphatic about the importance of communication skills, with nine out of ten identifying them as the skills they most want young people to have when starting work. Planning and organisation skills and customer service skills ā€“ which are likely to relate to communications skills ā€“ also stand out as desirable. 100% 92 90% 80% 70% 62 60% 56 50% 40% 30% 29 20% 17 15 13 11 10% 0% Communication Planning and Customer Decision-making Quality control Team leading Performance Resource organisation service monitoring management Figure 9 Skills that managers most want young people to have when they start work 8
  • 9. 5. Employer involvement in education 5.1 How are employers Respondents to the survey are already involved with education in a variety of ways, getting involved? although there remains significant room for growth. Forty-five per cent report that they work with schools, 43 per cent with sixth forms or further education colleges, and 46 per cent work with higher education institutions. There were clear sector differences, with private sector organisations the least likely to be involved with education ā€“ only 36 per cent work with schools. When those organisations that are involved with education were asked how, the top three responses given were Apprenticeship programmes, lecturing or contributing to lessons and providing careers advice. Area of involvement % Apprenticeship programmes 43 Lecturing or contributing to lessons 34 Provision of career advice and guidance 34 Mentoring scheme (between employees and pupils) 30 Hosting seminars/conferences 27 Developing curriculum/course content 23 Social initiatives (e.g. volunteer reading help) 18 Sponsorship arrangements 14 Mentoring scheme (between employees and teachers) 8 Sponsoring an Academy School 6 Table 1 Areas of employer involvement in the education system 5.2 Drivers All respondents were asked what the main drivers would be for getting their organisation of employer involved in the education sector. The top driver, selected by just over half, is to support involvement in the local community, with 44 per cent similarly describing it as part of their corporate education? social responsibility. This suggests that those employer/education initiatives that are locally embedded are likely to receive more buy-in from employers. Access to a future talent pool is also an important driver ā€“ particularly in the private sector where it comes out as the top driver with 53 per cent. A substantial number, 42 per cent, highlight the benefits to them in terms of promoting employee engagement. Again this is higher in the private sector. Perhaps surprisingly, fewer managers across the sample are focused on ensuring that course content is relevant and up to date, which may reflect the importance of behaviour and attitudes as well as skills, indicated earlier in the report. Only a small number viewed education initiatives as a way of increasing profit ā€“ a number that remained low in the private sector. 9
  • 10. 100% 90% 80% 70% 60% 52 50% 49 44 42 40% 30% 26 20% 13 10% 0% Supporting Access to Corporate social Promoting Ensuring course Increasing local future talent responsibility employee content is profit community pool (CSR) engagement relevant/up-to-date Figure 10 Drivers for organisations becoming involved in education 5.3 Barriers to better With half of managers suggesting that employer involvement in education will help engagement with the improve the employability of young people, it is also important to understand what education sector barriers might be preventing more widespread engagement. From an employersā€™ perspective, half of managers suggest that the staff time commitment is a problem. This factor is likely to be difficult to escape from; but it may be partially addressed if the second most common response can be tackled, that of the bureaucracy required 100% to become involved. A substantial number, 37 per cent, also feel that there is a lack 90% of established platforms for allowing employers to get involved, which may suggest a need for new platforms, whether led by Government or others, including professional 80% bodies. Indeed, our new programme, Campus CMI, may help address this issue. 70% 60% 52 50% 45 40% 37 36 30% 24 23 22 20% 10% 0% Staff time Bureaucracy Lack of an Cost Legal complications Lack of Lack of commitment established (e.g. fear of litigation/ business internal support platform for background checks) benefit for involvement engagement with education Figure 11 Barriers to employer involvement in education 10
  • 11. 6. Developing tomorrowā€™s leaders: CMIā€™s role Equipping the next generation with the right skills and attributes for the world of work is a challenge for all of society. It will lay the foundations of a successful and competitive economy ā€“ and the urgency of the task is only heightened by present levels of youth unemployment. The findings of this survey offer a snapshot of some of the views held by managers about this challenge. Clearly, there are widespread and important concerns about the impact of shortcomings in the education system ā€“ whether upon individual young peopleā€™s skills, or upon economic performance as a whole. Too many managers rate young peopleā€™s skills as poor and too many have concerns about the attitudes or behaviours of younger people. But as the findings also suggest, managers recognise their responsibility for skills development and identify important drivers of closer employer involvement in young peopleā€™s education. Campus CMI As the UKā€™s only chartered professional body for management and leadership, CMI has a duty to play a key role in tackling this issue. Driven by the need for change, our new programme ā€“ Campus CMI ā€“ was officially launched in March 2011. We are working with people aged 14-21, delivering qualifications in team leading and line management in schools and FE colleges across the UK. Campus CMI sets out three main visions for its training; to help young people achieve professional management qualities, to ensure that school leavers are ready for work and to build relationships between employers and schools. The Campus CMI programme has delivered 1,500 CMI qualifications in 115 schools across England and Wales during a pilot phase. It focuses on the practical workplace skills that employers want to see from young people and to ensure that it answers employersā€™ concerns, Campus CMI is led by a board of employers including Centrica, Waitrose and National Grid. Already, it has had a real impact in helping young peopleā€™s development. Forty students have participated at Archbishop Tenisonā€™s School in Croydon. Head of Sixth Form Jim Parrish says that Campus CMI ā€œgives students an insight into the real world of work and the things that will be expected of themā€. Working with a local recruitment agency, students are given ā€œa view of themselves from the perspective of a potential employeeā€. As a result, students are not only gaining desirable skills but are learning about themselves and building new confidence. At Bathā€™s Writhlington School, 190 students have decided to undertake the programme. Teacher Marie Getheridge says that some students lack the ā€œreal world experienceā€ needed to hit the ground running when they enter the working world. However, Campus CMI ā€œprepares them in a way they wouldnā€™t have ordinarily been taught. It gives them a thirst for work and the inspiration and knowledge to try and take their career as far as they can.ā€ She also views it as critical that students are taught ā€œthe necessityā€ of having management and leadership qualities. ā€œItā€™s important for students to grasp any opportunity they can to develop their skills and confidence and recognise the importance of leadership and how they can manage themselves and others.ā€ We aim to increase uptake of the Campus CMI programme to approximately 3,000 in 300 schools by the end of 2011 ā€“ and to widen the programme to deliver 10,000 qualifications within five years. For more information on Campus CMI and on how your organisation can become involved, please visit www.managers.org.uk/CampusCMI 11
  • 12. Chartered Management Institute The Chartered Management Institute is the only chartered professional body in the UK dedicated to promoting the highest standards of management and leadership excellence. CMI sets the standard that others follow. As a membership organisation, CMI has been providing forward-thinking advice and support to individuals and businesses for more than 50 years, and continues to give managers and leaders, and the organisations they work in, the tools they need to improve their performance and make an impact. As well as equipping individuals with the skills, knowledge and experience to be excellent managers and leaders, CMIā€™s products and services support the development of management and leadership excellence across both public and private sector organisations. Through in-depth research and policy surveys of its 90,000 individual and 450 corporate members, CMI maintains its position as the premier authority on key management and leadership issues. For more information please contact the Policy and Research Department on: Tel: 020 7421 2721 Fax: 020 7497 0463 Email: research@managers.org.uk Website: www.managers.org.uk or write to us at the address below. Chartered Management Institute 2 Savoy Court, Strand, London, WC2R 0EZ Registered charity number 1091035 Incorporated by Royal Charter Copyright Chartered Management Institute Ā© First published 2011 All rights reserved. Except for the quotation of short passages for the purposes of criticism and review, no part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without prior permission of the publisher. Published as an online report only. 4104 03/11