Trinh Tu, Research Director, Ipsos MORI Social Research Institute delivered this presentation on the Impact of poor skills: Employer perspective at 'Improving basic skills: An international perspective on a UK dilemma'; an Academic Conference sponsored by the Department of Business, Innovation & Skills (BIS) and Ipsos MORI’s Social Research Institute held on 14 January 2015.

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Basic Skills
Impact of Poor
The employer perspective
Trinh Tu

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To estimate…Aims Evidence
The prevalence
of poor basic skills in the
workplace and its impact
on employers
The costs
and benefits
associated with public-
funded basic skills training
£
Systematic
literature review
Quantitative
data collection
In-depth case
studies

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A minority of employers
perceive poor basic
skills to be an issue

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A minority of employers
perceive poor basic
skills to be an issue
5.5%
Literacy
gap only
3.5%
Numeracy
gap only
3%
Both
12%
Of workplaces
report a basic
skills gap

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A minority of employers perceive poor
basic skills to be an issue
94%
92%
88%
87%
86%
84%
83%
No gap
Gap
Not required
4%
4%
4%
4%
4%
2%
3%
1%
4%
6%
7%
9%
12%
11%
% of employers in England
Communicate verbally with clients,
colleagues or subcontractors
Fully understand
written procedures
Use numerical data or information
correctly in day-to-day activities
Perform simple mental
arithmetic / calculations
Complete day-to-day
paperwork without errors
Respond in writing to
queries or complaints
Spot numerical
errors

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A minority of employers
perceive poor basic
skills to be an issue
5.5%
Literacy
gap only
3.5%
Numeracy
gap only
3%
both
8%
on performance?
Material impact
12%
Of workplaces
report a basic
skills gap

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But there is evidence
of under-reporting

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But there is evidence
of under-reporting
Particular
issues for
SMEs
Absence of
HR systems
to identify
basic skills
problems and
put in place
solutions
HR
Higher level
qualifications
sometimes
used as a
proxy
Majority do
not specify
minimum
English or
maths in
recruitment
General lack
of awareness
of basic skills
requirements
for different
job roles

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But there is evidence
of under-reporting
Normal
business
processes
masking poor
basic skills
Reinforces
perception
that impact is
minimal; not
merit
investment in
training
Potential to
lock in
systematic
skills decline
among
employees
Widespread
use of
(precarious)
coping
mechanisms -
shadowing,
scaffolding
and peer
support

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There are costs to
poor basic skills

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50%
44%
38%
35%
25%
18%
Increased number
of errors
Prevented more efficient / new
processes being introduced
Additional costs
for training
Reduced product
/ output quality
Failure to comply with requirements
(e.g. H&S / quality requirements)
Higher volume of
customer complaints
43%
36%
33%
33%
26%
17%
Literacy
Numeracy
There are costs to
poor basic skills
Impact of basic literacy and numeracy gap (self-reported)

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Limited appetite among
employers for formal
basic skills training

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Limited appetite among
employers for formal
basic skills training
Basic skills training
in the last year
Nationally
15%
With a basic
skills gap
31%
Majority of
workplaces
with a basic
skills gap
have not
provided
training
… except where
that qualification
was deemed to
have an external
currency

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Implications for
public-funded basic
skills provision

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Implications for
public-funded basic
skills provision
Difficulty
identifying
impacts at
the firm
level
Not a
vehicle for
significant
changeof basic skills
provision is
as part of
apprenticeships
Employers
report a range
of business
benefits but
possibly
conflated with
apprenticeship
training
Low volume
and intensity –
an average of
2.4% of
employees
per workplace

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Conclusions
Likely under-
reporting of
basic skills
deficits in
workplaces and
associated costs
Possibility of
systematic built-
in long-term skills
decline
Need to
understand how
collaborative
workplace
practices can
develop skills as
well as
compensate for
deficits
Consider funding
alternatives to basic
skills training
activities – peer
learning schemes,
support for reading
for pleasure and
other informal, non-
credentials based
activities

17. Thank
trinh.tu@ipsos.com