Using LMI to support successful business and curriculum strategy

RCU, 3 Tustin Court, Port Way, Preston, PR2 2YQ
Tel: 01772 734855 email: clee@rcu.co.uk
How LMI is used in the sector to support
successful business and curriculum strategy
AoC Business Development Conference
25th February 2016

1. Using Labour Market Intelligence
2. LMI Sources - Where can you find it?
3. Case Study – Salford City College
4. Overview of the MiDES LMI Tool
Session Overview

1. Using Labour Market Intelligence (LMI)
Strategic decision making needs to
be supported by good quality labour
market intelligence...
...and then related to your specific
context.

• How should the college change its current curriculum offer?
• How should the college best market it’s offer to employers?
• What are the key characteristics of our competitors and how
has this changed in recent years?
• Which industrial sectors are likely to have the greatest scope
for increasing our volume of apprenticeships?
• Should the college be investing in more staff to deliver STEM
courses and advanced manufacturing?
• What areas provide the most opportunities for generating
commercial income?
• What would be the value in developing strategic partnerships?
Example Questions

1. Specialisation and development of Institutes of Technology;
2. Mergers/partnerships;
3. Localism – meeting the needs of the local economy;
4. Quality – particularly in terms of ‘outcomes’ rather than
‘outputs’;
5. Financial sustainability – including long term business
model.
Colleges require access to accurate quantitative and qualitative
data to support these issues.
Local Area Review Issues

Local Profile
• Claimant Count
• Current population
education level
• Industry profile
• Deprivation
• GDP/GVA per head
• Age profile
• Ethnicity Profile
• Transport
infrastructure
Skills Demand
• Job vacancies
• Skill shortage
vacancies
• Wage rates
• FT/PT vacancies
• Gender profile
• Local insight
• Occupations and
industries (SOC
and SIC)
Skills Supply
• Government
funded courses
• Learner profile
• HE courses
• Full cost provision
• Competitor
analysis
• Gap analysis
Skills Need
• Skill needs
projections
• Local skills
priorities
• Growth sectors
• Local strategic
plans
Labour Market Intelligence Categories

2. Labour Market Intelligence Sources
Where do you get good quality LMI data?

• National published surveys e.g. Employer Skills Survey,
ASHE, Labour Force Survey, Working Futures;
• Government statistics e.g. Census 2011, unemployment
data (NOMIS, annual population survey, business register,
Neighbourhood Statistics);
• Learner data;
• Job vacancy data e.g. Job Centre Plus, Websites etc;
• Local intelligence e.g. Regional Skills Partnerships reports,
regional observatories, local authority data, local news;
• Primary research e.g. College surveys, feedback from
business development managers, Heads of Department.
LMI Sources

FE Data Hub Website: mides.rcu.co.uk
• MiDES is now built within the new
FE Data Hub website.
• Logins available to all AoC member
colleges.
• FE Data Hub includes some of the
most important and useful data
about the FE sector.
• Sections include:
• Recruitment and Participation
• Performance
• Employers and Apprenticeships
• Socio-Demographics

FE Data Hub Website: mides.rcu.co.uk
• Careers of the Future
• Occupations Summary Dashboard
• Level 3 Performance
• Success Rates

1. Strategic
Commitment
2. Define
Responsibilities
3. Create Single
Access Point
4. Agree
Questions
5. Develop Plan
6. Carry out
Analysis
7. Internal
Report
8. Embed 9. Review
10. External
Communication

• Which computer based analysis tools are you currently
using and who is responsible for carrying out this analysis?
Is additional training required?
• What are the costs and benefits of using commercial
packages and consultancy support?
• Are you using intelligence data with strategic analysis tools
in order to inform strategic decisions and priorities?
Using Analysis Tools

• Who in your organisation is responsible for producing
intelligence reports?
• Do you collect feedback from the target audience on how
easy the reports are to use and whether they meet user
expectations?
• What does the institution need to do in order to improve the
quality of its reports?
Create Simple Reports

3. Case Study – Salford City College
Using Vector and LMI data in Planning and
Decision Making

• Salford City College has 5 centres created from merger in 2009;
• Over 5,000 16-18 year old students;
• Over 10,000 students in total;
• Whole range of curriculum offered;
• Learner numbers have declined over the past three years;
• Falling demographics (fewer school leavers) and new UTC nearby has
made recruitment more difficult;
• Pays around £800,000 per year to advertise on 18 different bus routes;
• Plans to significantly reduce this cost in 2016.
• Uses Vector alongside LMI and internal college data to inform decision
making and curriculum development.
Introduction

• Look at market share and learner volumes;
• To inform marketing strategy;
• Investigate new provision, changes to offer or reduction;
• To inform other planning – transport and other areas for investment;
• Not just used in marketing team – used at top level and by each
curriculum area;
• See if campaigns and investments have paid off / provided results;
• “Was invaluable for the Area Wide Reviews” – Becky Wilkins
How Salford City College uses the Vector tool

• Curriculum numbers and market share (classroom learning and
apprenticeships);
• Student numbers – locality of learners and distance travelled;
• Changes in recruitment patterns;
• Understanding the competition;
• School leaver projections – by school and by location.
Information the College uses:

Where does the College recruit from?
• College learner
volumes and market
share down in
highlighted areas.
• Majority of learners live
within 7 mile radius of
central campuses.
• Learner volumes and
market share fall
quickly in the central
Manchester area and in
northern recruitment
areas around Bolton
and Bury.

Where do learners study?
• Salford City College is the largest recruiter in this area however learner volumes at the College declined
over the past 3 years.
• Other FE Colleges collectively have seen a decline in learner numbers. Down 510 between 2012/13 and
2014/15.
• Sixth Form Colleges and School Sixth Forms have benefitted from growth during the past 3 years.
• Competitor analysis used to identify strengths, curriculum offer of local Schools and Sixth Form Colleges.
4,040
2,910
550
1,580
1,310
0
0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500
Salford City College
Other FE Colleges
Private Training Providers
Sixth Form Colleges
School Sixth Forms
Other Providers
Numberof Learners
All Subjects (16-18 ClassroomLearning)
0
500
1000
1500
2000
2500
3000
3500
4000
4500
5000
2012/13 2013/14 2014/15
All Subjects (12/13 to 14/15)
Salford City College Other FE Colleges
Private Training Providers Sixth Form Colleges
School Sixth Forms Other Providers

What do learners study and how has demand changed?
2012/13 2014/15 Change 2012/13 2014/15 Change 2012/13 2014/15 Change
Health Nursing & Social Care 510 550 40 1,060 1,020 -40 48% 54% 6
Public Services 150 100 -50 250 200 -50 60% 49% -11
Child Development 160 100 -60 380 280 -100 42% 35% -7
Science & Mathematics 930 1,280 350 2,970 3,830 860 31% 33% 2
Agri Hort & Animal Care 140 160 20 200 230 30 69% 68% -1
Engineering 170 40 -130 420 250 -170 41% 18% -23
Motor Vehicle & Transport 80 0 -80 230 200 -30 32% 0% -32
Construction 370 380 10 590 710 120 63% 53% -10
ICT 420 380 -40 1,270 920 -350 33% 41% 8
Retail Wholesale Dist etc.. 10 0 -10 60 60 0 19% 0% -19
Hair & Beauty 240 170 -70 470 390 -80 50% 44% -6
Hospitality & Catering 90 100 10 200 210 10 46% 49% 3
Sport Leisure & Recreation 340 320 -20 970 860 -110 35% 37% 2
Leisure Travel & Tourism 130 90 -40 260 190 -70 50% 49% -1
Performing Arts 360 260 -100 750 590 -160 48% 45% -3
Media & Communication 550 390 -160 1,070 820 -250 52% 47% -5
Art & Design 430 400 -30 1,000 970 -30 43% 41% -2
Humanities Langs Soc Scie 1,000 1,430 430 3,220 3,940 720 31% 36% 5
Preparation for Life & Work 3,150 1,060 -2090 6,480 3,650 -2830 49% 29% -20
Business Admin & Law 460 520 60 1,440 1,540 100 32% 34% 2
Subject Area (16-18 Classroom Learners) -
Core Recruitment Area
Havering College:
16-18 Classroom Learners
All Providers:
16-18 Classroom Learners
Market Share

• Based on demand the College has added new provision including
Computing and Motor Vehicle;
• They are aware of certain areas where they do not achieve a share of
the market they expected;
• College transport is being reduced and reorganised to save costs,
taking into account where the service will be of greatest benefit;
• Reduce curriculum offer duplicated across multiple campuses, e.g.
Media & Communications which was delivered in 5 campuses in
2013/14.
Information used for decision making:

Media & Communications – Learner volumes by Campus?
• Using the Vector data Salford City College have decided to cut delivery of
Media & Communications which was being delivered at multiple centres
in 2013/14.
• The curriculum based mapping helped to identify where the relevant
learners lived and how they might be affected by this rationalisation.
0
30
60
340
120
0 50 100 150 200 250 300 350 400
City Sixth Form College
Walkden Sixth Form Centre
Eccles Sixth Form Centre
Pendleton Sixth Form Centre
Trinity Business Training
Numberof 16-18 ClassroomLearners
Media & Communication - Level 3

• Salford City College also produce individual reports for each curriculum
area to show learner volumes, market share, trends, popular
qualifications etc..
• LMI data is combined to show relevance to the labour market with a
focus on:
• Key Sector Priorities
• Growth Sectors
• Skills Shortages
• This has supported the College in ensuring their curriculum
development not only takes into account learner demand by skills
demanded by local employers.
Combining LMI to Vector data:

• In recent years, the College’s market share with the local 16-18
apprenticeship market has grown from 7% - 10%.
• The 16-18 classroom learner market has also increased in market
share by 1 percentage point over the past 3 years.
• The College has identified which bus routes to keep and which to lose
by reviewing learner numbers, demographics and travel patterns
displayed with the Vector maps.
• Salford City College has rationalised delivery of Media from 5 separate
campuses which they felt was inefficient, down to 2.
• Motor Vehicle studies has been introduced based on local demand
and Animal Care, Equine and Performing Arts are also being
considered as new areas for investment.
Outcomes

4. Overview of the MiDES LMI Tool
Matching Skills Supply with Demand using
LMI and Learner Data

• Uses appropriate LMI data and detailed learner data (ILR);
• Shows occupations identified as being priorities in your local area
(LEP).
• Helps to identify whether there is an adequate local supply of
apprenticeships within skill shortage areas?
• Subject and Framework level analysis to show college’s current
expertise / market share in identified apprenticeship frameworks?
• Helps you answer:
– What apprenticeship frameworks should the college seek to develop
to address local skill needs?
– What is the potential size of the market and what investment would
be required?

Local Area Summary
LMI and Apprenticeships

Mapping LMI and Apprenticeships

LMI - Occupations

Apprenticeships Analysis

250
1,860
3,440
330
0 500 1,000 1,500 2,000 2,500 3,000 3,500
Example College
Other Colleges
Private Training Providers
Other Providers
Number of Apprenticeships by Provider Type
53.6%
45.1%
1.4%
Apprenticeships by Level
Intermediate
Advanced
Higher
Local Area Analysis of Apprenticeship Volumes
• What is your share of the local apprenticeship market? How does this
compare to other providers?
• What are the most in demand apprenticeship frameworks in your area?
• Does your college have the capacity to invest in these frameworks?

Apprenticeships by Subject Area (All Providers) Number Number Market Share
01.3 Health and Social Care 12,880 650 5%
15.2 Administration 12,860 240 2%
01.4 Public Services 7,540 220 3%
04.2 Manufacturing Technologies 6,250 20 0%
15.3 Business Management 6,060 120 2%
07.3 Service Enterprises 4,300 200 5%
07.4 Hospitality and Catering 4,250 20 0%
07.1 Retailing and Wholesaling 3,420 0 0%
01.5 Child Development and Well Being 3,360 200 6%
04.3 Transportation Operations and Maintenance 3,080 0 0%
Apprenticeships by Framework (All Providers) Number Number Market Share
444 Health and Social Care 10,920 320 3%
490 Business and Administration 7,000 180 3%
537 HMForces 6,720 0 0%
487 Management 6,000 160 3%
488 Customer Service 5,640 80 1%
443 Retail 3,380 20 1%
445 Children and Young People's Workforce 3,330 100 3%
504 Improving Operational Performance 2,420 0 0%
508 Hairdressing 2,370 80 3%
583 Hospitality 1,960 0 0%
LEP Area Example College
LEP Area Example College
Top 10 Subject Areas and Frameworks in the LEP area

Skills Demand & Supply

• Digital Creative, Science and Technology
is identified as a LEP priority in London;
• Within this area there are 380 apprentices
being trained on Framework 418;
• Identified as an opportunity for the College
who are currently not in this market;
• Other Colleges currently have 16% of the
apprenticeship market;
• Despite being a priority skills area the
proportion of overall apprentices in Inner
London is lower than the regional and
national average;
• Data presents an opportunity for the
College.

• Programmers and Software Development
Professionals identified as a growth area
within Inner London;
• Forecast 7% growth in jobs by 2020;
• 26% of employers report Skills Shortage
Vacancies;
• Concentration of overall jobs in Inner
London slightly above the national
average;
• Opportunity for further Skills development.

Helps inform strategic decisions, e.g.
“Should we invest in this area?”
Analysis should also consider level of
skills required to identify whether skills
need can be met by apprentices.
Matching Skills Demand to Skills Supply
Skills Equilibrium Matrix

Apprenticeship Analyser
(New in April)

Using LMI to support successful business and curriculum strategy

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