Skills utilisation
This research project examined skills utilisation and its relationship with productivity, focusing specifically on the role of high performance working (HPW) in UK firms.
The work consisted of a number of key strands:
- A synthesis of key literature (PDF, 1.9 Mb) – this Evidence Report synthesises the key recent research evidence on the theme of High Performance Working (HPW), setting out clearly the current state of knowledge on the topic, and identifying research gaps and policy questions. The report complements a fuller literature review conducted by Scottish Government.
- The development of a high performance working survey tool (PDF, 2.4 Mb) – this is a longitudinal employer based survey tool.
- A set of case studies (PDF, 488 Kb) – this report describes the experiences of 11 organisations that have made the transition to HPW. Their experiences show what can be done and how it can be achieved. We hope that this report can stimulate discussions and the sharing good practice from one business to another.
- An analytical report (PDF, 838 Kb) – this report builds on the knowledge gained from existing research to explore the implementation of HPW through the experience of eleven case study organisations. Specifically, this research set out to: understand how decisions by employers to engage with HPW are made; how managers and leaders shape and influence practice; to explore the practices themselves and how they affect the experience of work; and to identify barriers to the take-up of HPW and how they are resolved.
- A Policy review (PDF, 1.6 Mb) – this Evidence Report presents the results of a Policy review that scopes the current field of the most relevant, core initiatives and support available to organisations in the UK, to promote and assist in the adoption of HPW practices.
The most recent edition to this suite of work explores International Approaches to High Performance Working.
This project considers policy approaches to HPW in seven countries. It covers how HPW is interpreted in different national contexts; examines the different methods used to encourage the take-up of HPW; and explores policy learning.
Background context
The concept of skills utilisation encompasses a range of high performance work practices with a focus on creating a working environment in which employee talents can be deployed for the optimal mutual benefit of themselves and their employer.
It implies a particular concern with identification of workforce talents, designing work in such a way that employee talents are optimally used and offering opportunities for employees to contribute to shaping the broader development of the organisation beyond the confines of their job descriptions.
Concerns about adequate deployment of workforce skills derive from broader concerns about the role of skills in contributing to the UK’s economic performance. The UK ‘skills problem’ is multi-faceted, well documented and has a long history.
Our stock of skills and their optimal deployment fare relatively poorly when compared internationally according to Skills Utilisation measures such as labour productivity and levels of qualifications among different workforce groups. Access to opportunities for skills acquisition is uneven as are their impacts and a number of reasons are provided for this, often deriving from Human Capital Theory (Becker, 1964).
For organisations, underinvestment in skills may appear to be a rational response in the face of risks such as poaching of trained workers and payback time on investment. Equally organisations may be keen to invest in developing workforce skills, but lack capacity or capability to manage the process, or simply find it difficult to source appropriate training or lack broader knowledge of how skills utilisation can be optimised.
Therefore a key focus of the UK Commission’s work is on understanding how organisations can be successfully run to achieve HPW.
HPW encompasses the bringing together and implementation of a number of practices in a holistic way to effectively manage an organisation. As such it provides an important means to stimulate businesses to: review their business strategies; move up the value chain raise their demand for high skills; reorganise their work; and by so doing improve skills utilisation in the workplace and, hence, firm performance.
