The transition from school to work for 14-24 year olds
Submission to the House of Lords Social Mobility Committee’s call for evidence
Chartered Institute of Personnel and Development (CIPD)
September 2015
Executive summary:
Recommendations:
Background
The CIPD is the professional body for HR and people development. The not-for-profit organisation champions better work and working lives and has been setting the benchmark for excellence in people and organisation development for more than 100 years. It has 140,000 members across the world, provides thought leadership through independent research on the world of work, and offers professional training and accreditation for those working in HR and learning and development.
Our membership base is wide, with 60% of our members working in private sector services and manufacturing, 33% working in the public sector and 7% in the not-for-profit sector. In addition, 76% of the FTSE 100 companies have CIPD members at director level.
This submission has been produced by the CIPD’s Learning to Work programme. Learning to Work was launched in 2012 to promote the role of employers in reducing youth unemployment by encouraging employers to increase the number of access routes into their organisations and to make their workplaces and practices more ‘youth-friendly’. Through the Learning to Work programme, the CIPD encourages employers to play an active role in preparing young people for the workplace by promoting direct contact with young people via two youth volunteering programmes; Steps Ahead Mentoring and Inspiring the Future.
General Comments
There are a number of factors that affect social mobility and employment outcomes of young people aged 14-24 in the transition from school into the workplace – particularly for young people who are not, who do not intend to follow, or who did not follow the A-Level to Higher Education pathway. Despite increased demand from employers to take advantage of the diverse range of talent available, there continues to be a range of supply and demand-side challenges that are limiting employers’ ability to access the talents and skills they need, as well as impeding young people’s successful transition into employment. This response will examine each of these challenges in turn:
Response
1.1. One of the most enduring factors that affects social mobility and employment outcomes of young people who do not follow the traditional A-Level to Higher Education pathway is certain employers’ attitudes towards vocational education.
1.2. On the one hand, we’ve witnessed a significant growth in interest from employers in vocational routes into work – apprenticeships in particular. Indeed, the National Apprenticeship Service has found that, in 2013/14, more than 850,000 people undertook apprenticeships in 240,000 workplace locations in England; what’s more, apprenticeships are now available in over 170 industries, covering 1,500 job roles in most occupations and sectors, from engineering to accountancy, public relations, business administration and HR.
1.3. However, for some, the view persists that vocational education is the ‘poor relation’ of a university degree. Indeed, in a CIPD Employee Outlook survey conducted in spring 2013 less than a fifth of respondents said that they felt apprenticeships had the “same status” as a university education. What’s more, it is not enough to simply convince employers that apprenticeships are a good idea; there is also a need to increase the number of young people choosing vocational education as a pathway to work, and to provide information to parents – as key influencers on their child’s education and career decision making - that demonstrates that apprenticeships can offer a viable route into skilled jobs and alternative to university. Parents and guardians are key influencers when it comes to young people’s perceptions of vocational education and training pathways. Indeed, the same survey found that less than a fifth of working parents believe that apprenticeships are more appropriate for manual or blue collar jobs.
1.4. These findings have worrying implications. Firstly, that despite clear and significant interest from many employers in apprenticeships, some organisations still view vocational qualifications as unsuitable for their industry or organisation. A consequence of this is that candidates with relevant vocational qualifications that demonstrate a high level of skill and a significant amount of experience are at risk of being overlooked in favour of a candidate who attended university. Our research not only highlights, therefore, that there is still much work to be done to reach parity of esteem between vocational qualifications and university, but that employers could benefit from more information about the way in which vocational qualifications help prepare young people for the workplace, as well as the skills and experience individuals with this background can bring to the workplace. Our research also shows that that there is a need to get young people and their parents to understand the exciting opportunities that are available across all occupations and sectors through vocational qualifications.
1.5. By driving-up interest and understanding of the various vocational routes into work and tackling stereotypes that might influence the number of young people with vocational qualifications being recruited into organisations, we can improve the employment prospects and social mobility outcomes of young people aged 14-24 who are not, who do not intend to follow, or who did not follow the A-Level to Higher Education pathway.
2.1. Another factor affecting the social mobility and employment outcomes of young people who are not, who do not intend to follow, or who did not follow the A-Level to Higher Education pathway is employers’ recruitment practices and policies; in particular, employers specifying the need for a candidate to possess a degree qualification for a role which is suitable for those with vocational qualifications. Indeed, the CIPD Learning to Work survey 2015 found that two-thirds of HR professionals said their organisation uses formal qualifications and academic achievement during the first stage of the recruitment process to filter candidates for entry-level roles, with university being one of the most popular ways to sort applicants. As a recent CIPD report, Overqualification and skills mismatch in the graduate labour market, has found, having a degree is becoming a necessity for getting an ever-larger proportion of jobs, leading to a phenomenon known as occupational filtering down – graduates entering jobs that were once done by their non-graduate mothers and fathers, and having a degree has replaced vocational training-based routes into occupations.
2.2. To address this, the Learning to Work programme highlights to employers the need to regularly review eligibility and selection criteria, particularly for entry level roles (in order to avoid instances where degree qualifications are requested but may not be necessary) and to be more flexible when considering qualifying criteria, including grades, training and educational background, as focusing on these formal requirements can create unfair barriers. The CIPD also encourages and supports employers to actively identify opportunities where an apprentice, school leaver or individual with suitable vocational qualifications could be recruited; however, in order to support this activity, employers require further information on less recognised pathways and qualifications (such as NVQs, HNCs, HNDs, BTECs, tech levels, applied general qualifications, or diplomas) if they are to gain an increased understanding of the skills, attributes and experience a young person could bring to a role.
2.3. However, there are other recruitment practices which can disadvantage young people more generally. In order to open up opportunities to all young people and help improve social mobility and employment outcomes for those individuals who may not have pursued a traditional pathway into work, the CIPD has produced extensive guidance for organisations on how employers can adapt recruitment practices and policies so that they are ‘youth-friendly’ and do not disadvantage individuals from certain backgrounds, including:
2.4 The CIPD is encouraged to see that, in recent years, employers have taken steps to address barriers which prevent entry to young people who are not, who do not intend to follow, or who did not follow the A-Level to Higher Education pathway, to both their organisation and profession. For these employers, attracting a diverse range of talent is key to achieving enhanced customer insight, innovation and productivity, and, in the longer-term, future business growth. For example, in May, professional services network PwC announced their intention to remove UCAS scores as entry criteria for graduate jobs to help drive-up social mobility and widen the pool of talent available. Furthermore, CIPD research shows that employers are making a substantial investment in attracting and developing school leavers, with 45% of employers increasing their offering of talent development programmes aimed specifically at this group.
2.5 Furthermore, our Learning to Work survey 2015 uncovered a discernable interest and willingness on the part of employers to find new ways to tap into new talent. Our survey found that 63 per cent of HR professionals who use formal qualifications in recruitment are interested in finding alternatives; a further quarter (23 per cent) do not at all consider formal qualifications and academic achievements to be the best indicator of the suitability of a candidate.
2.6 In fact, our research has uncovered that employability, or ‘soft’ skills, are becoming an increasingly influential factor for many employers. Indeed, our Learning to Work survey 2015 found that the top three skills employers look for in young candidates are communication (64 per cent), teamwork (60 per cent) and confidence (45%). This is good news for many young people, as there are a range of activities they can undertake to help improve their employment prospects and social mobility.
2.7 The CIPD believes volunteering can help young people gain the employability skills employers are looking for. Indeed, when we asked HR professionals what the top three skills entry-level candidates with volunteering experience demonstrate, they said teamwork (82%), communication (80%) and understanding of the local community (45%), which closely correlate to the skills identified as most desirable by employers, listed in the above section. With the difficulties that many young people also face in terms of securing good-quality work experience, volunteering or social action has a clear role to play in terms of the skills development of the future workforce. Furthermore, given that volunteering activities can take place over extended periods of time, this can often be more beneficial in terms of developing employability skills than a shorter spell of work experience. However, a key challenge is that candidates often fail to draw on their volunteering and social experience during the recruitment process unless prompted, and employers can neglect to uncover it, meaning they are at risk of missing out on enthusiastic individuals who have the types of employability skills organisations say they need, yet struggle to find. To address this, the CIPD, in partnership with the #iwill campaign - which aims to make social action the norm among 10-20 year-olds, irrespective of background – recently launched a new guide for recruiters and line managers on how to integrate social action into recruitment practices. It is our hope that, by drawing on best practice from some of the UK’s leading employers, HR can unlock access to a wide new pool of talent, whilst also helping to improve employment and social mobility outcomes for young people.
3.1. Another factor that affects the social mobility and employment outcomes of young people in the transition from school into the workplace is their ability to access to high-quality independent and impartial careers advice and guidance, which equips them with the knowledge, information and skills they need in order to make informed decisions about their future. For some young people, effective careers advice and guidance can open their eyes to careers they never knew existed. This issue is particularly apparent when examining young people’s awareness of non-university routes, most notably apprenticeships. For some young people, information about vocational education and training options as alternatives to university is scant, as this submission has already highlighted. Indeed, when we asked HR professionals who are parents whether they are satisfied with the amount of information available about apprenticeship opportunities in their local areas, only a quarter (29%) said they were. Previous CIPD research has also found that just 15% of parents feel that teachers provided them with sufficient information on alternatives to university, including apprenticeships.
3.2. The CIPD believes that part of improving the quality, independence and impartiality of careers advice and guidance – and to help young people to improve their social mobility and employment outcomes – is identifying opportunities for employers, schools and colleges to work together at a local level in order to provide careers education. It is for this reason that the CIPD welcomes the newly established Careers & Enterprise Company, which has been created to strengthen links between schools and colleges, between employers and careers, to expose young people to the world of work, as well as to help them to make more informed decisions about their future.
3.3. However, we also believe that employers can play a key role in helping prepare young people for the working world, thereby improving employment outcomes and social mobility for young people – in particular, those who are not on and who do not intend to follow the A Level to Higher Education route. Increased interaction with employers offering vocational schemes, attending careers fairs where employers are present, being invited for tours of a local employer’s workplace and benefitting from opportunities to hear from employers and employees at career insight days can all help young people to understand the breadth of routes and opportunities available to them, and see first-hand how their skills and expertise might be put to use.
3.4. Providing work experience placements to young people plays a critical role in helping individuals to understand the world of work. Indeed, our Learning to Work survey 2015 found that over half of employers (54 per cent) offer work experience placements; however, to further increase this number, the CIPD provides guidance for employers and our members on implementing high-quality work experience placements aimed at helping more young people benefit from direct experience of the workplace.
3.5. Finally, the CIPD has been working the Education and Employers Taskforce on a free initiative called Inspiring the Future, to get HR professionals to volunteer in schools in order to help young people become more work ready. The CIPD has signed-up over 2000 CIPD member volunteers who help students understand the world of work and how to prepare for it, provide career insight talks and CV and interview workshops in order to educate, raise aspirations and provide visible role models.
3.6. The CIPD’s Learning to Work programme believes this level of engagement between employers and education is key to helping young people prepare for working life and improve their employment outcomes and their social mobility; this is particularly true for young people who decide not to pursue the traditional university route to work.
4.1. An important part of improving the social mobility and employment outcomes of young people is by ensuring there are a diverse range of access routes open to them – particularly for those who opt to pursue a vocational pathway into employment. A key aim of the CIPD’s Learning to Work programme, therefore, is to encourage HR professionals to increase the number of access routes into their organisation. To achieve this, we have produced practical, step-by-step guidance on introducing apprenticeships, offering high-quality, paid internship opportunities and work experience placements - in addition to providing entry-level roles aimed at young people who are just starting out in their career. Our survey report from May 2013, Improving Social Mobility: Inside the HR profession and beyond, has also shown that not only do many organisations understand that there is a business case for diversity in terms of who they recruit, but more than nine out of ten HR professionals agree that they have a role to play in promoting social mobility.
4.2. Since the Learning to Work programme began in 2012, we have witnessed significant steps being taken by employers to offer opportunities to younger workers, with our Learning to Work survey 2015 finding that the percentage of organisations that currently employ young people (aged 16–24) has risen is the last 12 months, with four in every five (79 per cent) reporting that they do, up from three-quarters (73 per cent) in 2013. Perhaps more encouraging is the progress that’s being made around engaging with vocational education and training – in particular apprenticeships – with our survey finding that over two-thirds (70 per cent) of HR professionals think that apprenticeships are effective at developing the employability skills of young people in the workplace. What’s more, apprenticeships came out as the well-regarded option in terms of developing employability skills, even above graduate schemes, which 66per cent of employers rated as ‘effective’ or ‘very effective’.
4.3. Finally, the CIPD believes there is a clear role for the professions to attract young people aged 14-24 who are not, who do not intend to follow, or who did not follow the A Level to Higher Education pathway. Significant steps have been taken to address the perception that, to be a member of a profession, one needs a degree or similar qualification. In order to open up the profession to new and diverse talent, the CIPD, working in conjunction with Skills CFA, has introduced the new Higher Apprenticeship in Human Resource Management, which enables apprentices to develop knowledge and skills in human resource management, while being employed and earning a salary.
4.4. Furthermore, the CIPD is involved in Access to the Professions – a group of leading professional bodies who aim to increase awareness for the range and variety of potential employment options the professions have to offer, and helping like-minded organisations recruit people from a diverse range of disciplines and backgrounds. In our guide, Social Mobility: Top tips for HR professionals, the CIPD make a series of recommendations to the professions on helping build aspirations and highlight pathways, including:
4.5 Improving the transition from school to work for all young people, particularly for those who do not go on to study A Levels and Higher Education, requires a co-ordinated response from a number of actors. Namely: