HRreview Header

Skills system needs overhauling to solve labour shortages, REC advises

-

Neil Carberry, Chief Executive of the Recruitment & Employment Confederation (REC) gave evidence to the Business, Energy & Industrial Strategy (BEIS) Committee today, informing MPs that Government must undertake a “training revolution”. 

In order to solve the issues linked to supply chain delays, the REC has argued that a “revolution” is needed when it comes to offering training for work.

One vital component to this strategy is broadening the apprenticeship levy, allowing funds to be used on other accredited training at levels which will help young people get into work.

Mr. Carberry further suggested that this would be more useful than these funds being spent on graduates already in work.

 

HRreview Logo

Get our essential daily HR news and updates.

This field is for validation purposes and should be left unchanged.
Weekday HR updates. Unsubscribe anytime.
This field is hidden when viewing the form
This field is hidden when viewing the form
Optin_date
This field is hidden when viewing the form

 

 

In this arena, he also advised that MPs should engage with local leadership and training providers, who understand what skills and specialisms are needed in a particular area, and can create local skills plans which are able to harness national qualification standards and funding frameworks.

The adult skills budget could also be bolstered, he added.

Immigration was also offered as a key part of the solution when it comes to solving the current shortage and supply chain problems.

The Chief Executive of the REC explained that “immigration policy has been stuck in a Brexit-time warp” and, instead, there must be an immigration system which works for the economy and businesses alike.

In a letter penned to the Chief Secretary of the Treasury, REC also urged for increased business investment into areas such as digital technology, skills, management practices and more effective automation.

This would help increasing salaries to rise hand-in-hand with improving productivity in the UK.

Other strategies offered as part of the training revolution included:

  • The Government continuing to fund programs such as the Kickstart and Restart Scheme but improving the administration so people can get into jobs more quickly.
  • Improving the treatment of the flexible labour market.
  • Protecting the funding for enforcement bodies doing good work in support of fair treatment in vital industries – like the Employment Agencies Standards Inspectorate.
  • Reviewing the impact of this year’s IR35 changes, allowing corrections to be made where necessary.
  • Prioritising diversity and inclusion – e.g. making progress on rules around ethnic minority pay gap reporting to co-working with the REC on improving the diversity of central Government hiring.

Overall, the REC emphasised the necessity of investing in the workforce, both in the long-term and short-term, if a full recovery following the pandemic is to happen.

Monica Sharma is an English Literature graduate from the University of Warwick. As Editor for HRreview, her particular interests in HR include issues concerning diversity, employment law and wellbeing in the workplace. Alongside this, she has written for student publications in both England and Canada. Monica has also presented her academic work concerning the relationship between legal systems, sexual harassment and racism at a university conference at the University of Western Ontario, Canada.

Latest news

Middle East air disruption leaves UK staff stranded as employers weigh pay and absence decisions

Employers face complex decisions on pay, leave and remote working as travel disruption leaves British staff stranded in the Middle East.

Govt launches gender pay gap and menopause action plans to help women ‘thrive at work’

Employers are encouraged to publish action plans to reduce pay disparities and support staff experiencing menopause under new government measures.

Call for stronger professional standards to rebuild trust in jobs

Professional bodies call for stronger standards and Chartered status to improve trust, accountability and consistency across roles.

Modulr partners with HiBob to streamline payroll payments

Partnership integrates payments automation into payroll workflows to reduce manual processing and improve pay day reliability.
- Advertisement -

Jake Young: Strong workplace connections are the foundation of good leadership

Effective leaders are, understandably, viewed as key to organisational success. Good leaders are felt to improve employee engagement, productivity and retention.

AI reshapes finance jobs as entry-level roles come under pressure

Employers prioritise digital skills over traditional accounting as AI reshapes finance roles and raises concerns over entry-level opportunities.

Must read

Kim Wager (BIS): Shared parental leave and pay

What do parents currently get, and why are we...

Seb O’Connell: Hotting up: How to design talent strategy for a buoyant jobs market

It’s good news for the UK, with employment at its highest level since 1971. Whilst this is clearly a positive result for the nation, recruitment professionals need to be on top of their game if it means they are to snap up top talent in an increasingly competitive market.
- Advertisement -

You might also likeRELATED
Recommended to you