Employer collective measures review

At first glance, the UK seems to have relatively positive levels of employer provided training, with, in the run up to the recent economic downturn, around two thirds of employers providing training to their staff and international surveys suggesting the proportion of establishments which provide training is higher than in other EU nations.

However, almost a quarter of establishments have never funded or arranged training for their staff; less of this training is certified when compared to other EU nations and training also accounts for a lower proportion of labour costs compared to the EU average.

Businesses that employ few people and establishments in certain sectors are least likely to fund or arrange training and these patterns have been true for a number of years. Whilst there are a range of reasons why some businesses do not train their staff, there is evidence that those which do, enjoy considerable benefits relating to survival, productivity, employee job satisfaction and lower absentee rates.

It was in this context that in 2008 the UK Commission for Employment and Skills was asked to review the range of policy levers designed to encourage employers to train on a collective basis (Collective Measures), such as levies and Licenses to Practice. We undertook extensive literature reviews, on-line consultations, policy prioritisation events with stakeholders and initial economic appraisals, to inform the develop our conclusions. A total of 5 reports were produced in the Review of Employer Collective Measures series:

• A conceptual review (PDF, 2.1 Mb) , examining the theoretical literature on optimal investment in training;
• An empirical review (PDF, 1.1 Mb)  which explores the nature and extent of investment in skills by employers, the evidence of the magnitude of the barriers suggested by the theoretical review and motivating factors;
• A policy review (PDF, 1.9 Mb) , which examined the available international evidence on the effectiveness of existing policy interventions;
• A report on a policy prioritisation (PDF, 1.1 Mb)  exercise undertaken at events across the UK in summer 2008;
• A final report (PDF, 892 Kb)  which drew all the evidence together and set down conclusions and advice.

Subsequently, this research has informed much of the work of the UK Commission, including underpinning our Skills, Jobs, Growth paper and further developments of policy, for example, Best Market Solutions within the Growth and Innovation Fund. We continue to use the research as a comprehensive exploration of the factors that enable or deter optimal investment in skills

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