DEVELOPING THE NEXT GENERATION - Learning to Work June 2015

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DEVELOPING THE NEXT GENERATION - Learning to Work June 2015
Learning
             to Work

Research report
June 2015

 DEVELOPING
 THE NEXT
 GENERATION

      TODAY’S YOUNG PEOPLE, TOMORROW’S WORKFORCE
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 more than 135,000 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.
Developing the next generation
Research report

Contents
Foreword                                                                                                 2

Introduction                                                                                             3

1 What does existing research tell us?                                                                   6

2 Building the business case for investing in development                                                9

3 Workplace skills                                                                                      14

4 Development methods                                                                                   19

5 Generational learning preferences                                                                     23

Conclusion                                                                                              27

References                                                                                             28

Acknowledgements
This report was written by Ruth Stuart, Research Adviser at the CIPD. The research was supported by
Katerina Rüdiger, Katherine Garrett and Stella Martorana at the CIPD. We are indebted to all of the
individuals in the case study organisations who took part in the research through interviews and focus groups.

In particular we would like to thank:
Temi Akinmoladun – Apprentice, Barclays                 Graham Salisbury – Head of Human Resources, ActionAid
Shajjad Ali – Apprentice, ActionAid                     Susithaa Sathiyamoorthy – Apprentice, ActionAid
Sarah Bampton – Talent Programme Manager, Fujitsu       Dan Snowdon – Industrial placement, Fujitsu
Joe Calvert – Apprentice, Barclays                      Nigel Spencer – Global Director of Learning &
Demi Cameron-Smith – Apprentice, Fujitsu                Development, Reed Smith
Mike Hill – Community Leader, Barclays                  Irha Syed – Apprentice, Barclays
Thomas McCumiskey – Apprentice, Capgemini               Claire Theijssen – Graduate, Fujitsu
Osmond McNellie – Apprentice, Barclays                  Mike Thompson – Director, Early Careers, Barclays
James Millar – Apprentice, Capgemini                    Dylan Valentine – Apprentice graduate, Fujitsu
Rebecca Plant – Head of Graduate and Apprentice         Philip Wampamba – Apprentice, ActionAid
Programmes, Capgemini                                   Nick White – Graduate Programme Manager, Fujitsu

                                       1    Developing the next generation
Foreword

Tackling youth unemployment is           and learning and development              they design and implement a new
now recognised as a major issue          (L&D) practitioner is key and why         programme.
by policy-makers, charities and          we have drawn on best practice
many employers. It is clear that         case studies of the programmes            There are many prevailing myths
too many young people are being          used to develop young people in           and generalisations about what the
overlooked for opportunities,            more detail in this latest research       youngest generation is like, such
despite businesses’ concerns             report. The research is designed          as they are more networked, less
about where their future talent          to help anyone working on, or             competitive and less loyal, meaning
is coming from. Employers play           considering introducing, their own        they more likely to move between
a central role when it comes to          programme.                                organisations. Exploring the
improving young people’s access                                                    differences between the key broad
to the labour market, and it is vital    A recurring challenge for those           generational groups estimated to
that organisations bring in young        seeking to bring in young people          represent today’s workforce was a
people if they are to build the skills   into their organisation is often          key starting point for this research,
they need for future success.            establishing the business case,           as it helps to bust these myths and
                                         which is why when we originally           provides a useful starting point for
Getting employers involved in            launched the Learning to Work             HR and L&D professionals exploring
helping to prepare young people          programme we explored this in             the needs of young people in their
for work and making their own            some detail and why we look at this       organisation.
organisations more ‘youth friendly’      further in this latest report. It is no
is something the CIPD has been           good introducing a new programme          While it is important to avoid
leading on since we launched our         for young people without first            generalisations, gaining an
Learning to Work programme               considering the wider business            appreciation for some of the key
back in 2012. Over the past three        case and ensuring it fits in with         strengths and development areas
years we have seen an increase           future resourcing needs. For many,        for the younger generation can
in the number of employers               including Barclays and Capgemini,         help to ensure that programmes
who are interested in increasing         who both feature in this report, it       are designed in a way that gets
engagement with young people,            is about attracting and retaining         the most from young talent.
including by offering more access        non-graduate talent, providing an         Organisations such as Fujitsu and
routes into their organisations, such    attractive alternative to university      ActionAid, for example, share how
as Apprenticeships and graduate          while also plugging skills gaps.          they are taking advantage of the
schemes.                                                                           energy and enthusiasm that their
                                         In recent years we have seen              apprentices have. Implementing
However, offering and recruiting         substantial debate around the topic       well-thought-out programmes
for these roles is only one half of      of skills gaps, with the education        that both draw out strengths and
the equation. It is also crucial that    sector, and even young people             address weaknesses is key to
when a young worker begins their         themselves, facing public criticism       getting the development of the
career, the experience sets them up      for not developing the right skills       younger generation right. These
for a long and successful working        needed in the workplace. The role         individuals have enormous potential
future. Line managers have a             of the employer in plugging these         to contribute to an organisation’s
crucial role to play here, a topic we    gaps has been disputed by some            success and it’s important that as
covered in our Managing Future           but we know the tide is changing,         a profession we recognise this and
Talent guide. But, also fundamental      with skills development playing a         play our part in making this happen.
to ensuring future success are the       central role in the design of many
programmes themselves, their             programmes targeted at young              Katerina Rüdiger
content, structure and how they are      people. However, it’s important           Head of Volunteering and
integrated into the wider business.      that employers do not oversimplify        Employability Campaigns
Here is where the role of the HR         the younger generation when               CIPD

                                         2     Developing the next generation
Introduction

Background to the research
During the last few years
                                      Our purpose is to help
                                      organisations understand how
                                                                             ‘We explore methods
we have seen a widespread             they can build the business            of developing
recognition of the challenge of       case, not just for broadening
youth unemployment, and a             access to employment, but for          16–24-year-olds in
corresponding rise in alternative     investment in development to
entry-level development               drive organisational performance.
                                                                             the workplace, and
programmes – such as innovative
graduate schemes, new
                                      It is relevant for anyone working in
                                      HR, L&D or a line management role
                                                                             identify what works
apprenticeships and work-based        seeking to understand how they         and why.’
degrees. Through our Learning         can best meet the development
to Work programme we have             needs of the next generation.
worked with young people and
organisations to promote and          Throughout the report we refer
drive good practice, highlighting     to what leading organisations
the benefits of broadening access     in this space are doing, and the
to work and the importance of         challenges they are overcoming,
employer action.                      so that others can learn from
                                      examples of great practice. The
In this report we turn to consider    findings build on our guide for
what happens in the workplace         line managers, Managing Future
post-recruitment. We explore          Talent (Peate and Taylor 2014). We
methods of developing 16–24-year-     also connect the research to wider
olds in the workplace, and identify   changes in the L&D profession
what works and why; which             (which we explore in Stuart and
skills do young people enter the      Overton 2015) and share the
workplace with and what’s the         implications for HR and L&D
most effective way of building        practitioners.
their capability? We also consider
learning preferences of young
people, and how these align to
interpretations of ‘Generation Y’
behaviours.

 Learning to Work

 The Learning to Work programme is led by the CIPD to promote the role of employers in reducing youth
 unemployment. The CIPD’s purpose is to champion better work and working lives, which starts with young
 people being able to access the labour market.
 The overall aim of the programme is to promote the business case for investing in the future workforce.
 We encourage HR professionals to offer a wide range of access routes into their organisations and ensure
 their recruitment and management practices are youth-friendly. We also promote direct contact with young
 people via two youth volunteering programmes, Steps Ahead Mentoring and Inspiring the Future.

                                      3     Developing the next generation
Overview of programmes for              the basis of their use of innovative    the business case for developing
young people                            programmes and learning methods.        people at the start of their
Only a few years ago the graduate       We have researched a range of           careers. In Section 3 we reflect
programme was typically the main        programmes with different target        on the skills young people have
source of structured entry-level        audiences, ranging from those           and common skill gaps. Next, we
development for young people.           leaving school at 16 to graduates.      share key learning methods used
But this is now changing. Seventy-      We have specifically explored:          by organisations. In Section 5 we
six per cent of HR professionals                                                then consider how young people’s
report that their organisation offers   •   apprenticeship schemes in           preferences may influence learning
at least one programme aimed at             ActionAid, Barclays, Capgemini      methods deployed.
young people (CIPD 2015). Many of           and Fujitsu
these programmes help to broaden        •   the industrial placement and
access, through schemes such                graduate scheme in Fujitsu
as apprenticeships, work-based          •   the work-based degree
degrees and industrial placements           programmes in Barclays and
(Table 1). And others have sought           Capgemini
to evolve their existing graduate       •   the LPC/MA course in Reed
programmes to ensure they meet              Smith.
both business and learner needs.
                                        The research also draws on both
Research methodology                    findings and unpublished survey
The research was conducted              data from the CIPD Learning to
between January and February            Work survey report (2015). In
2015 with five case study               addition we have conducted a
organisations (Table 2). Interviews     literature review to explore existing
were held with senior HR and            research.
L&D professionals. Focus groups
and interviews were also held           Report overview
with young people currently on          The report is organised into five
graduate programmes, industrial         sections. Following the introduction
placements or apprenticeships.          we share the findings of our
Each organisation was selected on       literature review. We then explore

Table 1: Key programmes

 Apprenticeships       An apprenticeship is a combination of employment and training, culminating in the
                       apprentice receiving a national recognised qualification. Employers train individuals in
                       the context of their organisation, so apprentices develop their skills while contributing to
                       the organisation. Find out more in Apprenticeships that Work (CIPD 2014).

 Industrial            Industrial placements typically involve a sandwich year in between the student’s second
 placements            and third years of their degree. Placements typically last for 12 months and the purpose
                       is to enable the young person to gain real-life work experience and apply the learning
                       back in their degree programme.

 Work-based            Work-based degrees are often the product of collaborations between employers and
 degrees               universities. They enable employees to study for a degree, while remaining in their job
                       and are often at undergraduate or postgraduate level.

 Graduate              Graduate programmes typically last one to two years and involve a structured
 programmes            programme of development. A common feature of many schemes is rotation across a
                       number of business areas.

                                        4      Developing the next generation
Table 2: Case study organisations

    ActionAid is a leading international               ActionAid have recruited three apprentices to work in the HR,
    charity which supports women and                   fundraising and campaigning departments. The initiative is based
    children in extreme poverty, fighting              on a partnership with Christian Aid, Plan UK and the City and
    for their rights and for lasting change.           Islington College. The apprentices have gone into genuine roles and
    Their 180 employees and network of                 attend college on Friday to complete their formal learning as part
    volunteers work across 45 countries                of the business administration apprenticeship framework.
    in partnership with 15 million of the
    world’s poorest and excluded people.

    Barclays is a major global financial               The Barclays apprenticeship programme employs up to 2,000
    services provider who move, lend,                  young people, and specifically targets those in the NEET category.1
    invest and protect money for                       It includes both an intermediate and higher apprentice route,
    48 million customers and clients                   and apprentices can join in a range of business areas, including
    worldwide. They have over 300                      investment banking. 120 people each year also go through the
    years of banking history and employ                Barclays degree programme (a three-year work-based degree).
    140,000 people.                                    Barclays also have an established graduate programme and there
                                                       are progression routes between each of the schemes.

    Capgemini is a key provider                        Alongside a graduate programme, Capgemini have broadened
    of consulting, technology and                      access to include a higher apprenticeship programme and work-
    outsourcing services. They work with               based degree at Aston University. They currently have 254 people
    clients to create and deliver business             completing the higher apprenticeship in software engineering,
    and technology solutions. Their                    which takes two years. At the end of the apprenticeship they have
    145,000 employees work in over 40                  the option to move onto the three-year degree programme.
    countries worldwide.

    Fujitsu is the world’s third largest IT            There are three key access routes for young people at Fujitsu: an
    services company. Headquartered                    apprenticeship programme (recruiting 90 people each year), an
    in Japan, they offer a range of                    industrial placement scheme (recruiting 30 each year), and a graduate
    technology products and services.                  programme (recruiting 80 each year). The apprenticeship lasts for
    Approximately 162,000 Fujitsu people               two years, and recruits go into a real job from day one. The industrial
    support customers in more than 100                 placement scheme recruits students in the third year of their degree
    countries.                                         for one year of paid work experience. The graduate programme
                                                       involves two years of structured development and role rotations.

    Reed Smith is a global law firm,                   The programme we have focused on in Reed Smith is a little
    supporting many of the world’s                     different from the others, as the process of becoming a solicitor
    leading companies in complex                       is regulated by the Law Society. The most common route is for
    transactional work, litigation and                 individuals to complete a qualifying undergraduate law degree
    disputes. The firm’s history stretches             or conversion course. They then must gain a trainee position with
    back to 1877, and they now employ                  a law firm (typically applied for in the second or third year of
    more than 1,800 lawyers in 25 offices.             their degree) and complete a Legal Practice Course (LPC). This is
                                                       followed by two years as a trainee solicitor within the firm.
                                                       Reed Smith have developed a programme which adapts the
                                                       mandatory year-long LPC course for new legal trainees into an
                                                       MBA-style master’s, incorporating business learning and practical
                                                       skills application to build commercial and client awareness, while
                                                       maintaining the regulated content. Each year approximately 25
                                                       trainees join after completing their undergraduate and graduate
                                                       degrees. The course combines formal learning at BPP University,
                                                       alongside client-based project work and upward mentoring with
                                                       senior leaders.

1
    Those not in employment, education or training.

                                                   5     Developing the next generation
1 What does existing research tell us?

‘Diversity within      Overview of the different
                       generations
                                                               Three-quarters of employers
                                                               now offer programmes aimed at
each generation can    Four generations are estimated          young people, the most popular
                       to represent today’s workforce:         of which are work experience
be as different as     Veterans, Baby Boomers,                 and apprenticeships. Graduate
                       Generation X and Generation Y           schemes, apprenticeships and
across generations.’   (Penna and CIPD 2008), with             school-leaver programmes are
                       Generation Z due to join the            considered the most effective
                       workforce soon (Table 3). Below         pathways to work (See Table 1).
                       we draw out common themes
                       from existing literature regarding      Generation Y and Z attributes
                       Generation Y and Z, but it is worth     Technology is perceived to be
                       underlining that diversity within       so significant within the lives
                       each generation can be as different     of Generation Y and Z that
                       as across generations (Penna            researchers have labelled new
                       and CIPD 2008). The attributes          generations on the basis of their
                       outlined below will therefore           familiarity with digital devices.
                       not apply to everyone and so            Prensky (2012) coined the term
                       understanding specific needs and        ‘digital natives’ to describe
                       drivers is still critical.              a generation of tech-savvy
                                                               individuals with a positive attitude
                       Generation Y and Z                      to technology, accustomed to the
                       employment                              speed of the Internet and to multi-
                       According to the latest ONS figures     tasking. The ‘net generation’ is goal
                       (2014), over 3 million young people     and achievement oriented, with a
                       (aged 16 to 24) are part of the UK      preference for active learning and
                       workforce, compared with 733,000        social activities (Brown 2005).
                       unemployed. There are also 2.72
                       million young people economically       One study defines Generation Y as
                       inactive, mostly full-time students     intelligent, ambitious, questioning
                       who will join the workforce soon.       individuals accustomed to

                       Table 3: Generations in the workforce

                        Veterans                 Born between 1939 and 1947
                                                 Also known as traditionalists

                        Baby Boomers             Born between 1948 and 1963

                        Generation X             Born between 1964 and 1978

                        Generation Y             Born between 1979 and 1999
                                                 Also known as Millennials

                        Generation Z             Born after 2000
                                                 Often grouped with Generation Y

                       6     Developing the next generation
networking, multi-tasking, always      opportunities for upward               Some studies indicate that
connected and often more               communication and guidance on          Generation Y looks for
academically qualified than their      which skills they can develop or are   information when it is needed,
managers, who are expected to be       developing on the job.                 and therefore does not prioritise
mentors and coaches (Honoré and                                               the memorisation of knowledge
Paine Schofield 2012).                 Further, they need a strong support    in their mind (Honoré and Paine
                                       network, according to most             Schofield 2012, Tapscott 2008).
Some have suggested that               employers. Suggestions include         Consequently, they need help
Generation Y seeks personal            mentoring and coaching support         to understand which sources of
fulfilment, a meaningful job in a      from an effective line manager         information are reliable and how
friendly organisation, work–life       (Peate and Taylor 2014). Buddies       to verify information (Honoré
balance and is also strongly           or other peer support can also         and Paine Schofield 2012). The
motivated by career advancement        be particularly helpful for young      latter conclusion is not shared by
(Meier and Crocker 2010, Honoré        people, who may feel less at ease      Tapscott (2008), who surveyed
and Paine Schofield 2012).             with their manager initially.          11,000 young people in the US,
Although, they conceive their career                                          finding that the ‘Net Generation’
as a ‘scramble net’ and not a ladder   A range of learning and                scrutinises any information
(Penna and CIPD 2008) and 57%          development methods are used           encountered. These differing views
expect to leave their organisation     to support ongoing development.        suggest that further research is
in the next two years (Honoré and      For example, individual and group      required.
Paine Schofield 2012). According to    teaching, guided study and social
research by PwC (Finn and Donovan      learning are frequently adopted in     Learning preferences
2013), unlike Generation X, they       apprenticeship programmes (Peate       There is a limited research body
prioritise support, appreciation and   and Taylor 2014). Collaborations       on the work-based learning
flexibility over salary.               are often formed to offer young        preferences of young people.
                                       people the chance to work and          However, while the literature is far
Learning and development               gain formal qualifications. For        from conclusive, it does indicate
for Generation Y and Z                 example, there has been an             that the traditional classroom
When young people enter an             increase in joint partnerships         training model may not always be
organisation it is important to        between private companies and          the most effective.
provide an induction programme         universities to deliver work-based
tailored to their specific needs,      degrees (UKCES and UUK 2014).          Some argue that young people
instead of a generic one                                                      have a short attention span
(Oxenbridge and Evesson 2012,          Skill gaps                             (Honoré and Paine Schofield
Culliney and Broughton 2013). The      According to research carried          2012, Tapscott 2008); therefore
induction is an opportunity to meet    out by Ashridge Business School        content needs to be broken down
colleagues, familiarise themselves     (Paine Schofield and Honoré            and constant feedback provided
with the new environment,              2010), young people need to            to keep them engaged. For this
alongside being introduced to both     develop writing skills, deeper and     reason a bite-sized model of
the company and their specific         analytical thinking, self-awareness,   learning may be appropriate;
role (Culliney and Broughton           acceptance of criticism and            however, this may also be true of
2013). While this is applicable        emotional intelligence. These skill    other generations.
for all employees, it is especially    gaps were apparent in both home
relevant for young people, as          life, school and university.           While some espouse the benefits
the transition from education to                                              of technology in engaging young
employment might be ‘traumatic         While often defined as the ‘tech-      people in learning, one study
and disorienting’ and many lack        savvy’ generation, some highlight      published in 2005 (though still
confidence (Smith 2003, p17, in        that the IT skills of young people     capturing the views of Generation
Oxenbridge and Evesson 2012).          cannot be assumed, as they vary        Y) has a different conclusion. It
                                       widely in the population (Honoré       finds that young people have a
According to the CIPD Managing         and Paine Schofield 2012) – perhaps    strong preference for face-to-face
Future Talent guide (Peate and         suggesting that young people’s         interaction, whereas older learners
Taylor 2014), young people also        relationship with technology may       are more satisfied with courses
specifically benefit from clear        be more complicated than it might      fully delivered online (Oblinger and
objectives, regular feedback,          first appear.                          Oblinger 2005).

                                       7     Developing the next generation
‘Generation Y are   However, it’s important to consider
                    that learning technology has
                                                           Moreover, Generation Z needs more
                                                           dedicated research, as the literature
a group of smart,   advanced significantly in the last     largely focuses on Generation Y
                    ten years.                             at present. There is also a greater
ambitious and                                              need for research exploring
                    Summary                                young people’s relationship with
questioning fast-   Our review of the literature           technology and their learning
thinkers, able to   indicates that Generation Y are
                    a group of smart, ambitious and
                                                           preferences, particularly using a
                                                           behavioural science lens.
multi-task.’        questioning fast-thinkers, able to
                    multi-task. Their familiarity with     In essence, the themes identified
                    digital devices and social platforms   in this section provide a useful
                    does not necessarily imply a           starting point for HR and L&D
                    preference for learning technology;    professionals to explore the
                    the literature suggests technology     needs of young people in their
                    should instead be conceived as a       organisation. In this report we
                    tool to complement the learning        build on the literature by delving
                    experience.                            deeper into the skills, development
                                                           methods and learning preferences
                    We should, however, bear in mind       young people exhibit in our case
                    the limitations of existing studies.   study organisations. First, we look
                    There are often differences in         in more detail at the business case
                    sample groups, such as young           for investment.
                    people active in the labour market
                    and those in higher education,
                    who are often studied together.
                    One must also take into account
                    whether the ‘life stage’ of those
                    participating in research may
                    influence their motivations and
                    attributes.

                    8     Developing the next generation
2B
  uilding the business case for
 investing in development

In this section we explore the
business imperatives for the
                                        non-graduate talent, high-potential
                                        young people who we felt wanted
                                                                                  ‘One of our biggest
various programmes introduced in        an alternative to university. It          challenges actually
our case study organisations, and       meant we could begin to tap
identify the impact they’ve had.        into, and identify, talent earlier        is finding good
We also outline considerations          than graduates.’ Mike Thompson,
for identifying the right roles and     Barclays
                                                                                  technical graduates
business areas for young people to
go into.                                Addressing skills shortages
                                                                                  coming out of
                                        For Capgemini the need to attract         university. There’s
Business imperatives                    non-graduate talent has a link to
                                        wider skills shortages in the industry:   a gap in what’s
Meeting business needs
All of the case study organisations     ‘If you looked at the software            coming out onto
recognise that investing in young
people has a connection to ‘giving
                                        engineering pipeline it was forecast
                                        to be something like 150,000 jobs
                                                                                  the market and the
back’ and the wider corporate           that were going to go unfilled. And       demand that we
social responsibility (CSR) agenda.     that’s only going to grow year on
For example, Graham Salisbury,          year. The pool we were fishing from       have for them.’
ActionAid, explains that the            had got so small, we had to decide
decision to recruit apprentices was     to do something else.’ Rebecca
partly based on a connection to         Plant, Capgemini
the organisation’s core purpose
and commitment to practise what         Fujitsu have experienced similar
they preach:                            shortages, and have introduced
                                        apprenticeships and industrial
‘If you are campaigning on policies     placements to help overcome this
in Bangladesh, you can’t ignore it in   issue:
Basingstoke or Bermondsey.’
                                        ‘One of our biggest challenges
However, a CSR perspective or           actually is finding good technical
desire to ‘give back’ was not the       graduates coming out of university.
primary motivational factor in          There’s a gap in what’s coming out
the decision to widen access.           onto the market and the demand
Instead, it was frequently driven by    that we have for them.’ Sarah
business need. As Sarah Bampton         Bampton, Fujitsu
(Fujitsu) recognises, ‘this is about
long-term talent management, and        In Reed Smith the requirement in
reducing youth unemployment is          the graduate pool was to enhance
a great secondary benefit. So, we       commercial awareness, and this
want to make sure the business is       necessitated a different approach:
in it for the right reasons.’
                                        ‘Legal graduates, often with a
This link to talent management is a     largely technical legal education,
common connection:                      enter an environment where
                                        our customers are saying, “We
‘The Barclays Degree Programme          want people who are commercial
was designed to grow our own            business people who will add

                                        9      Developing the next generation
value not just from their technical     ‘One of the things that encouraged      the rest of the organisation.’ Nick
(legal) knowledge but also from         us to go down the apprenticeship        White, Fujitsu
their commercial, industry sector       path was that a lot of the roles
awareness. Yes who are lawyers,         that we have people in, where the       While ActionAid is a much smaller
but actually we want them to think      people are graduates or have MAs        organisation than our other case
of themselves as business people        or MScs, they don’t actually need       studies, Graham Salisbury agrees
first and foremost.”’ Nigel Spencer,    that qualification. … We’ve just        that this does not detract from the
Reed Smith                              had a junior-level administration/      overall impact:
                                        research post which we’ve been
Rebalancing the organisation            trying to fill – we’ve had 272          ‘There is no reason why a smaller
Addressing organisational               applications. All of our shortlisted    organisation couldn’t benefit.
demographics is also a common           people had either master’s degrees      … When you spend the time
imperative for widening access          or PhDs.’ Graham Salisbury,             developing them, giving them
routes:                                 ActionAid                               information and knowledge,
                                                                                coaching them, then you see
‘One [driver] was the demographic       Building the business case              the benefits. That spin-off has a
issue within our workforce, where       All of the case study organisations     knock-on to you personally. You
we were hiring a lot of graduates       agreed that, no matter what             start thinking, “If we invested in
to fill some non-graduate positions     business imperative, getting            everybody and they all grew in
and seeing a high turnover, but         line manager buy-in and senior          that particular fashion, wouldn’t it
also, seeing an older age profile       sponsorship is an essential factor      be a good thing?” It creates a very
than we maybe would have liked          of successful implementation.           positive environment within the
to have seen. So, by bringing our       While many organisations have           business.’
apprenticeship programme entry          similar business needs, we know
age down to 16, it meant that we        it can be challenging to build the      In Reed Smith, Nigel Spencer has
brought in a lot of younger people,     business case for why investing in      seen a clear difference in trainee
four or five years younger than         development is important. So, here      behaviour before and after they
typically we were bringing in.’ Mike    we share examples of the impact         have attended the year-long MBA-
Thompson, Barclays                      the various programmes have had         style course, and is therefore able
                                        in the case study organisations,        to pinpoint the clear business
‘Ultimately the main demographic        to help give you the evidence and       impact:
of our organisation is a white          insight you need to make the case
male in their forties, and upwards.     for change.                             ‘One difference now is that they
Our president in Japan then                                                     enter the business having been out
said, “Actually we are here as an       Broad business benefits                 at a client over the past summer,
organisation to create the human-       In Barclays the schemes have been       having known and spoken to lots
centric society.” We then needed        a resounding success:                   of the partners, having sat in the
to ask, “Does the demographic                                                   commercial side of the client,
of our organisation really align to     ‘The business benefits have been        not just the legal side, so they
that vision? Can they make that         very broad. Retention has been          can actually add that experience
happen?” I think we took a long,        great amongst young people, and         and learning into conversations.
hard look at ourselves and said,        diversity has been great.’ Mike         The graduates self-assessed that
“probably no.”’ Nick White, Fujitsu     Thompson, Barclays                      they were much more confident
                                                                                in holding commercial, client
Interestingly, ActionAid found that     Likewise, Fujitsu are starting to see   conversations – not surprisingly as
stringent educational requirements,     the demographic shift they were         they had practised this over the
prevalent across the industry,          aiming for:                             summer on the placement. … So
were actually leading to a lack of                                              you’re fast-forwarding the “speed
diversity in the organisation and       ‘We’re quite proud that in attracting   to capability” and value delivery
an unnecessary over-qualification       young talented individuals to the       from when they walk in the door
of the workforce. They recognised       organisation, we are starting to        on day one. Given that in a law
that increasing diversity was           change the demographic of the           firm model it’s two years since you
critical to the charity’s success and   organisation. For instance, we have     recruited them and you’ve paid for
therefore altered their course:         a more favourable gender diversity      their courses, you want that ROI
                                        in young talent than we do with         back as quickly as possible.’

                                        10     Developing the next generation
Shajjad Ali, Apprentice at ActionAid,           ‘The positive engagement they                 ‘There are plenty of negative
agrees that companies should                    bring, the attitude and loyalty rub           things that are said about banking,
actively invest in young people:                off on other colleagues. … In the             but actually on apprentices, it’s
                                                contact centres they make a big               something we are really proud of.’
‘Companies need the sort of person              difference, they really do change             Mike Hill, Barclays
that is hungry to learn, because                the dynamic.’ Mike Thompson,
they are going to give back a lot.              Barclays                                      Impact on young people
Okay, they have to invest some                                                                Alongside these broad business
time training them, but what they               Future talent                                 benefits, the young people
are going to see by the end of it               For Fujitsu there are also two                interviewed also identified the
is someone who is better trained,               additional benefits: recruitment              tangible impact the programmes
better prepared in life and more                costs have gone down and they                 are having on their lives and their
capable to do a great job.’                     are creating a pipeline of future             perception of work:
                                                leaders:
Wider team impact                                                                             ‘There’s not even one day that I
Sarah Bampton, Fujitsu, has also                ‘Bringing young talent in means               have thought “I don’t want to go to
noticed that the impact of young                that we don’t have to spend a                 work”. There is everyone there to
people has spread across the                    lot of money on recruiting more               support me, and it’s been a great
organisation:                                   expensive experienced hires. Our              journey so far.’ Irha Syed, Barclays
                                                ratio has gone down dramatically
‘It makes a real difference to how              and therefore our costs have.’ Sarah          ‘It has helped us become more
people feel about who they work for,            Bampton, Fujitsu                              independent and given us more
and therefore how they do their job.                                                          of a feeling of being responsible
You’ve got that intangible stuff, but           ‘We can see real value in the                 for our own actions. Personally it’s
you’ve also got the tangible bottom-            programmes and investing time,                also made us more open-minded
line impact as well. Those two things           effort and money into making the              about the world because we see the
together mean it’s just a no-brainer            programmes work. When you strip               sort of changes the company are
for us. I think, if we decided to               it all back it’s about making sure            making, and how a little bit of input
turn graduates and apprentices off              we have future leaders, and that              can make a massive difference.’
tomorrow, there would be uproar. It             is actually happening. Thirty per             Shajjad Ali, ActionAid
would have such a massive impact                cent of those on our Future Leaders
on how people view the business                 Programme2 started as graduates               ‘With the background that I’ve
and our ability to provide great                in the organisation.’ Nick White,             come from, I’ve bounced from
service to our customers, and be a              Fujitsu                                       job to job and sometimes been
diverse and responsible employer                                                              unemployed. So it feels like “Wow,
that people want to work for.’                  Brand and reputation                          I’ve got such a great opportunity
                                                A number of the organisations                 in front of me. I never would have
Rebecca Plant, Capgemini, has also              also feel that there has been an              thought that I would be in this
identified a broader team impact:               added benefit to their brand and              position over a year ago.” I didn’t
                                                reputation:                                   have many qualifications and I
‘It almost switches something else                                                            didn’t know where I was going,
on in existing employees, that they             ‘It’s given us a massive amount               but coming onto this programme
can help and mentor and support,                of positive publicity, especially             I think is the best career move
which is fabulous. … Everybody’s                our decision to pay them all the              I’ve made in my whole life. The
game has been pushed up one, so                 London Living Wage. We can show               opportunities are endless here
in effect the productivity has gone             a child being taken out of poverty            as long as I do my job.’ Osmond
up throughout the organisation.’                overseas, but now we can also say,            McNellie, Barclays
                                                “Look at the lives of these three
Others also reflect that recruiting             people who have benefited from
more young people helps to foster               us doing this.”’ Graham Salisbury,
positivity:                                     ActionAid

2
    The Fujitsu Future Leaders Programme is a leadership development programme for junior to middle managers.

                                                 11     Developing the next generation
Considerations for identifying                        primary consideration is reported                      This often means reviewing each
the right roles and business                          to be having the right support                         business area on a case-by-case
areas                                                 network in place.                                      basis:
Alongside using insight to highlight
potential benefits, a key part                        The findings from our case study                       ‘I think some areas of the business
of building the business case is                      research reflect this data, particularly               are better suited to the type
identifying which areas of the                        the need to ensure there is robust                     of on-the-job learning that an
business are suitable for young                       line management capability, and the                    apprenticeship brings with it. We
people to go into, and subsequently                   right development opportunities. As                    did try some apprenticeships in
which roles. This entails being clear                 Sarah Bampton, Fujitsu, explains:                      some of the more specialist areas
about the enablers or barriers in                                                                            and had less success. I think it’s a
your organisation, and assessing                      ‘There is a lot of due diligence                       little bit horses for courses. We do
line management capability.                           that goes on before we open up                         look at each area, we think about
                                                      a vacancy. … We need to make                           the environment, we think about
The Learning to Work survey (CIPD                     sure the business has a supportive                     the learning journey for a young
2015) explores HR professionals’                      environment for an apprentice, that                    person, whether an apprenticeship
views on which factors are                            vocational on-the-job learning is                      is the right fit.’ Mike Thompson,
important in designing roles for                      appropriate and that this is the way                   Barclays
young people (Figure 1).3 The                         to support the learning.’

Figure 1: Important factors in designing roles for young people, by organisation sector (%) (CIPD 2015)

        Having the right support network in place                                                                                72
        alongside the role (that is, mentor, buddy,                                                                              72
                                                                                                                                 71
                                      line manager)                                                                                             88

                                                                                                              49
       Opportunities for growth and development                                                              48
                                  within the role                                                               52
                                                                                                             49

                                                                                                  40
            Allowing time for the young person to                                                 39
                     transition into the workplace                                                      45
                                                                                                   40

                                                                                                   39
           Ensuring the young person has time to                                                   39
             complete their training/qualifications                                               38
                                                                                                        44

                                                                                        29
    Opportunities to learn about the organisation                                      27
                                   within the role                                           34
                                                                                                  38

                                                                                20
                The need to minimise business risk                                23
                                                                          12
                                                                        10

                                                             0                 20             40                     60               80               100

                                                                  All               Private sector               Public sector             Voluntary sector

       Base: All HR professionals who currently employ young people (n=553)

3
    On behalf of the CIPD, YouGov undertook a survey looking into views of HR professionals in relation to employing young people. The survey
    was carried out between 7 November and 30 November 2014 and findings are based on responses from 868 HR professionals and employers.

                                                      12         Developing the next generation
A number of the organisations            team. This in turn necessitates         It’s clear that making sure you
spoke about the importance of the        great people management:                have the right support in place
business taking responsibility for                                               is a key consideration in thinking
identifying the right roles:             ‘We make sure, particularly for         through which roles and teams are
                                         apprentices and graduates, that         right for young people. It’s also
‘We ask the business 12 months in        the hiring manager is a really good     apparent that for a programme
advance to forecast their need for       people manager. We have an internal     to be successful, investment must
graduate roles. They are funded          accreditation that we use as evidence   be made in the capability of both
by the business. They have to be         of that.’ Nick White, Fujitsu           line managers and young people.
responsible for saying, “Actually,                                               Building the business case isn’t just
this is a role that is suitable for a    The CIPD guide Managing Future          about demonstrating the tangible
graduate. The graduate will add          Talent (Peate and Taylor 2014)          benefits, but also about outlining
value back to the organisation.”         provides more insight on the            how the wider organisation can
We then go about recruiting those        importance of line management           help a programme to flourish.
numbers.’ Nick White, Fujitsu            capability, in particular providing
                                         the robust structure and good
This helps to ensure that ownership      communication, alongside
is firmly within the line of business,   personalised development and
rather than with the HR or L&D           support.

 Managing future talent

 The CIPD guide Managing Future Talent (Peate and Taylor 2014) is designed to help line managers
 understand how best to support young people in the transition from education to the workplace. It provides
 an overview of good practice and suggestions for how to provide the right level of support and help
 inexperienced workers adapt to the workplace. For example:
 •   managing colleagues’ expectations when a young person joins the workforce
 •   how to build trust and create space for regular one-to-one discussions
 •   how to help a young person prioritise and manage their time
 •   facilitating open discussion about the challenges of managing an age-diverse workforce.

 You may find it helpful to share this guide with line managers in your organisation.

 Top five recommendations for HR and L&D practitioners

 1 Gain senior sponsorship and a figure-head who can really drive the importance of recruiting and
   developing young people in the organisation. Create a narrative which outlines the business benefits and
   use line manager champions to share success stories.
 2 Get clear on your business drivers and check that they are consistent across the organisation – make sure
   business leaders are in it for the right reasons.
 3 Find a good partner who can meet the needs of your organisation and help you establish and set up
   programmes.
 4 Think about your broader HR policies and how conducive they are to recruiting and developing young
   people, for example questioning your requirements for particular academic qualifications or ensuring you
   have the right line manager capability in place.
 5 Make sure you’re prepared for high demand from the business – the benefits of investing in young people
   are so apparent that the biggest challenge is often the need to expand programmes at pace.

                                         13     Developing the next generation
3 Workplace skills

‘Young people are     There has been substantial public
                      debate about skills gaps between
                                                              ‘The benefit of an apprentice is
                                                              that they’re so engaged. They’re
often maligned        education and employment. Young         grateful for the opportunity. The
                      people are often maligned for not       world’s their oyster in that respect,
for not having the    having the right skills needed in       because they just come in with
                      the workplace and the role of the       the right attitude.’ Rebecca Plant,
right skills needed   employer in plugging these gaps         Capgemini
in the workplace      is often disputed. In this section
                      we get underneath the surface           ‘Because of their different approach
and the role of       of these debates to understand,         to work, a fresh pair of eyes
                      based on the interviews with            and their energy, they’re really
the employer in       programme participants and              delivering greater efficiency.’ Sarah
                      leaders, the skills young people        Bampton, Fujitsu
plugging these gaps   bring to the workplace and the
is often disputed.’   common skill gaps.                      This perspective was also reflected in
                                                              our discussions with young people:
                      Bringing skills to the
                      workplace                               ‘Youth unemployment is massive.
                      As we noted in Section 1, there         But taking these energetic and
                      is substantial diversity within         fresh minds into a workplace is also
                      generations, and therefore              a massive, massive bonus for the
                      caution is advised in making            company.’ Shajjad Ali, ActionAid
                      generalisations. The young people
                      interviewed all have different levels   2 New ideas and innovative thinking
                      of experience and educational           Organisations have also seen young
                      attainment (some are 16 and have        people bring new perspective and
                      just left school, while others are      ideas:
                      22–24 and have graduated from
                      university). Each individual will       ‘We’ve had a lot of great ideas
                      bring a certain set of skills and       and innovations come from our
                      strengths to the workplace, and         apprentices. They have been
                      therefore particular skills are not     building apps for us, they’ve been
                      the domain of any one generation        coming up with better ways of doing
                      or will be uniform across the age       things, new processes, because
                      group. However, our interviews          they bring that inquisitive mindset,
                      with young people and programme         asking “Why do we do this?” “Why
                      leaders do point towards a number       can’t we do it differently?” “Why
                      of skills and strengths that young      don’t we do it this way?” All the good
                      people typically bring to the           things that young people bring.’ Mike
                      workplace. These are represented        Thompson, Barclays
                      here in three themes:
                                                              Claire Theijssen, graduate at
                      1 Enthusiasm, energy and drive          Fujitsu, has a similar perspective:
                      Many of our case study
                      organisations spoke about               ‘We bring creativity and fresh
                      apprentices having enthusiasm and       thinking. When you’re in a company
                      energy for work:                        for a few years you get used to the
                                                              process and you just roll with it.

                      14     Developing the next generation
Whereas someone coming from the                        skills and a confidence with digital.              online video, but never have used
 outside and having to experience                       As a bank that’s turning very digital              programmes such as Microsoft Excel
 it is like, “Why are we doing that?”                   we need young people who can                       before. What’s helpful in this scenario
 I find that pretty much every week                     come in and be comfortable with                    is their general confidence in
 I’m questioning one process we                         digital technology. They’ve really                 technology and ability to adapt what
 have in the company and I think                        helped upskill some of our more                    they know to different platforms.
 people listen.’                                        experienced staff.’
                                                                                                           Skill gaps
 Interestingly this perhaps contradicts                 The apprentices in Barclays share                  In our review of the literature we
 the suggestion in our literature                       Mike’s views:                                      shared a short overview of the skill
 review that young people may lack                                                                         gaps that have been identified for
 analytical or critical thinking skills.                ‘Everything is going digital.                      Generation Y, for example self-
                                                        Definitely I feel that because we                  awareness, analytical thinking and
 3 Technological understanding                          are young and savvy to it, it’s been               acceptance of criticism.
 Mike Thompson, Barclays, feels                         easy to adapt to the new systems
 that technological capability is one                   and just making lives easier in                    In our recent Learning to Work
 of the primary skills young people                     terms of telling customers they can                survey (CIPD 2015) we explore
 bring to the workplace:                                do certain things online.’ Osmond                  HR and L&D professionals’ views
                                                        McNellie, Barclays                                 on the key skills to help young
 ‘They pick up technology very                                                                             people build during their first
 quickly. In a contact centre                           It is important to note that young                 year in the job. The top three
 environment they’re able to work                       people may not all have the same                   responses were communication
 with multiple systems really quickly.                  level of skill. For example they                   skills (64%), teamworking (60%)
 … They’ve also brought in digital                      may be experts in how to edit an                   and confidence (45%) (Figure 2).

 Figure 2: The top three skills to develop during the first year in work and the most challenging skill to develop (%)

                                                                                                                          64
                        Communication skills
                                                                                    19

                                                                                                                     60
                                     Teamworking
                                                             5

                                                                                                      45
                                      Confidence
                                                                               14

                                                                                               37
          Time management/prioritisation
                                                                                    18

                                                                                          26
          Commercial/business awareness
                                                                              13

                                                                                     20
                              Problem-solving
                                                                 6

                                                                              13
                                       Resilience
                                                                 7

                               Analytical skills                         11
                                                                 6

                                                                     8
                            Presentation skills
                                                             4

                             Creative thinking                   7
                                                                 7

                                           Other         2
                                                         2

                                                    0                               20         40                  60               80

Base: All HR professionals (n=868)                       Key focus for development                  Most challenging to develop

                                                        15           Developing the next generation
Both communication skills and              ‘I didn’t know what to expect when       ‘We always talk about learning and
confidence were considered the             I came here. I didn’t know what I        developing yourself on three levels:
most challenging to build, alongside       was going to do. I didn’t have an        manage yourself; manage your
time management/prioritisation.            idea.’ Susithaa Sathiyamoorthy,          team; manage the firm. You have to
Interestingly, analytical skills did not   ActionAid                                start with good self-awareness, as
feature particularly highly.                                                        it’s the bedrock for so many things.’
                                           Self-awareness and confidence            Nigel Spencer, Reed Smith
We also explored this topic with           A lack of confidence is often a
our case study organisations.              key challenge for young people           Communication
They identified four key areas of          to overcome, and can often be            Communication and relationship-
skills gaps, reflecting many of the        influenced by life circumstances:        building was highlighted as a
challenges identified through our                                                   challenge more by the young
survey data.                               ‘I’d say confidence is something         people interviewed than
                                           that is often lacking, particularly      programme leaders (who tended
‘Working life’ skills                      if you have been in long-term            to associate this area more broadly
A number of our interviewees               unemployment. Every corner you’ve        with general work skills and
highlighted that initial development       turned around somebody’s said,           confidence).
of young people is typically               “No you’re not good enough.”
focused around work-readiness and          It’s not necessarily about skills        For example, as Thomas
professional behaviour:                    gaps, there are confidence gaps          McCumiskey, Capgemini, shares:
                                           and that’s a big issue, because
‘A big part is “life growing-up”           then we’ve got to rebuild that           ‘Learning how to talk to people
skills. Without being patronising,         confidence.’ Mike Thompson,              who don’t have your technical
that bridge from education to              Barclays                                 expertise and trying to convey
work is massive. It’s understanding                                                 that information is challenging.
what being a working professional          Many of the young people                 You need a reasonable amount of
means.’ Rebecca Plant, Capgemini           we spoke to also highlighted             patience and resilience to not say
                                           confidence as a challenge, but           anything you shouldn’t.’
‘Some of the kids come from very           recognised how far they had come
tough backgrounds, they struggle           through experience:                      Dylan Valentine, Fujitsu, has
to leave the street behind on                                                       experienced a similar challenge:
occasions and we have to work              ‘In my first couple of weeks I’d be
with them to help them.’ Mike              scared about picking up the phone.       ‘The amount of times I would speak
Thompson, Barclays                         But now it doesn’t faze me; I just       to someone and say something
                                           pick up the phone and approach           completely inappropriate and not
‘I think the biggest challenge is          people around me. It’s definitely a      have an absolute clue about what
professionalism. It’s not everybody,       confidence thing.’ Dan Snowdon,          I did wrong at the time. I’ve really
and once they understand it they           Fujitsu                                  learned leadership skills about how
get it really quickly. But it is things                                             you should actually talk to people in
like turning up to meetings on time,       ‘I wasn’t very confident at first, but   the last year.’
getting to work on time, putting           now I approach customers rather
a tie on. How to word an email             than them coming to me. That’s           Commercial skills
correctly. Just what it means to           something I’ve learned over the last     For Nigel Spencer, Reed Smith,
work in an 11,000-strong business in       few weeks.’ Irha Syed, Barclays          the skill gaps in those leaving
the UK and everything that comes                                                    university were in commercial
with that.’ Sarah Bampton, Fujitsu         This perhaps highlights that while       capability, especially due to a lack
                                           confidence may be difficult to           of previous opportunities to ‘learn
The graduates and apprentices also         actively build, work experience          by doing’ outside the classroom. He
reflected on this challenge, and in        has a significant role to play. Our      wanted to ensure that new trainees
particular not always being clear on       interviewees also suggest that           at the law firm were thinking from
what to expect in advance:                 building self-awareness is a helpful     the client’s perspective, and this
                                           base for developing confidence,          led him to develop new learning
‘Coming into an office was quite           and this resonates with the findings     methods to help build these skills
a scary thing to learn.’ Demi              of our literature review:                at an early stage (see Section 4).
Cameron-Smith, Fujitsu

                                           16     Developing the next generation
Nigel assessed trainees’ perception       ‘What the data shows is that they’ve           prioritisation did not feature
of what the role is about, to             re-framed what their career is about.          significantly as a problem, though
see whether the gap had been              They thought initially that it was             many apprentices spoke about the
plugged. Figure 3 outlines the data       about being a technician and you’ve            challenge of combining work with
Nigel has collected. We can see           recalibrated their mindsets, right at          study. They also highlighted the
that, before attending the firm’s         the beginning of their careers, into           importance, and yet difficulty, of
innovative graduate course with           being people who realise that they             building a strong network.
the enhanced business learning            will add value and develop best by
and client placement, graduates           being more commercial and more                 Ultimately, while there are inevitably
thought that being a City lawyer          business focused.’                             skill gaps and areas that need focus,
was primarily about having                                                               young people also bring a variety
technical skill. But following Reed       Other skills                                   of skills and capabilities to the
Smith’s change in emphasis on             Resilience is identified as a key              workplace. The trick is to leverage
their new graduate programme,             capability to build, often in                  the individual’s existing skill base
the graduates appreciate the              connection with confidence-building.           and strengths to then address key
commercial aspects of the role:           Interestingly, time management/                development areas.

Figure 3: Phrases graduates associated with being a lawyer, before and after the first term of the Reed
Smith master’s course (McMullan 2013)

When you were at university, which words and phrases did you associate with being a lawyer at a City firm? (%)

                      Technical analyst                18.2

              International perspective                                                           72.7

                 Market understanding                                      45.5

                      Business advisor                              36.4

                 Industry sector expert                                            54.4

                 Legal problem-solver                                                                               100.0

                        Business savvy                                             54.5

                Giving a legal opinion                                                                              100.0

               Financial understanding                              36.4

                             Specialist                                           54.5

                  Economic awareness                                       45.5

                     Case law research                                                     63.6

                Regulatory knowledge                                                       63.6

              Business problem-solver                               36.4

                          Legal expert                                                                   81.8

  Understanding business performance            9.1

                              Strategic         9.1

                                          17      Developing the next generation
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