Industry Skills Plan for the UK Construction Sector 2021 2025
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Industry Skills Plan for the UK Construction Sector 2021 – 2025 CLC Industry Skills Plan for the UK Construction Sector 2021 – 2025 1
Foreword We have all experienced exceptional times, and the COVID-19 pandemic has drastically changed the world we live in. But we need to keep the focus on what matters also used CLC’s Future Skills research 1 to understand what needs to be done to prepare the industry for new ways of working. At the same time, we have increased the reach most – retaining talent and building a solid foundation for of the Construction Ambassadors scheme by aligning it the future of the construction industry. with STEM Learning to help ensure we are nurturing the future pipeline of talent. The growing awareness of Fairness, In order to deliver what industry needs now and into the Inclusion and Respect also means we are making the future, we need skilled individuals. The Built Environment industry a better place to work, for those currently has a wide reach of sectors, so how can we ensure we have in it and those who will join in the coming years. a skilled and competent workforce across such a breadth of occupations? This is the considerable challenge we This plan will be developed into a co-ordinated group of need to break down into smaller pieces and tackle, activities that will be delivered through CLC workstreams as it is the key to unlocking improved productivity and and working groups. We will measure and report progress enabling construction to thrive and to maintain and deliver against this plan for at least the next four years. To the UK’s build pipeline. provide a short-term focus, we are tackling four priority challenges in 2021. These priorities centre around the This Industry Skills Plan is developed by industry, culture and careers within the industry, particularly how for industry. It complements our existing CLC Industry we can improve routes into the industry, as well as the Recovery Plan and moves us towards addressing the individual competence and skills required for a modern ever-growing skills gap. How our industry has adapted construction sector. However, major uncertainty still to the challenges of the COVID-19 pandemic shows what remains over the period covered by this plan so it will need we can achieve when working together. to adapt as it is delivered. The pandemic crisis is playing out in an industry already cast into uncertainty with The plan also highlights how skills challenges play out Britain’s departure from the European Union. across our very wide and varied industry. For example, the net zero agenda challenges us to change the game in Each year we will update on progress through the plan so how we build new buildings, but also offers a significant that bit by bit we can deliver these challenges. As ever, opportunity to the smaller firms that power the Repair, continued collaboration from all stakeholders will be required Maintenance and Improvement (RMI) sector as we gear to achieve the ambitious goals we have set out. We have up to retrofit millions of homes to meet higher made this easier by outlining clear owners and actions environmental standards. Similarly, the digital skill needs against each challenge, so everyone understands how will create totally new ways of doing things, as well as the they can contribute. Positive engagement and sector-wide potential for collectively massive efficiency gains through adoption of this plan will ensure we are able to reinvent small improvements. One example of this is equipping and transform the skills base of the construction industry. hundreds of thousands of small and micro firms in our industry with the knowledge and skills required to adopt digitalised processes and management tools. For SMEs, cloud and mobile-based Enterprise Resource Planning (ERP) software streamlines the control of workers, materials, logistics, tools and equipment – in turn driving efficiency, quality and productivity. We will build upon some of the great work we’ve achieved Sarah Beale Mark Reynolds to date. Our Talent Retention Scheme (TRS) is just one Chief Executive, Group Chief Executive, example of how we’re mitigating the skills loss within CITB and Chair, Mace and CLC, Steering construction following the COVID-19 pandemic. We have CLC Skills Network Co-ordination Group 1 CLC Future Skills Report 2019 CLC Industry Skills Plan for the UK Construction Sector 2021 – 2025 2
Contents 04 Executive Summary 05 Addressing our Skill Needs 06 Addressing our Skill Needs – Actions 08 Opportunities and Challenges 09 Introduction 10 Industry Overview 11 The Broader Opportunity 12 Future Demand 13 The Need to Address the Skills Challenge Now 14 The Core Skills Challenges 15 Post-16 Routes Into Construction 16 Attracting and Retaining Diverse Talent and Helping People to Join 17 The Skills Plan 18 Addressing Our Skills Needs 19 And Progress is Already in Motion 20 Challenge 1.1: Access for All 21 Case Study: How Ardmore Recruits and Retains a Diverse Workforce 22 Challenge 1.2: Attractiveness of Careers 23 Case Study: Building a Strong Pool of Talent for Construction 24 Challenge 1.3: Direct Employment 25 Case Study: ECA Loan Labour Scheme 26 Challenge 2.1: Routes into Industry – Apprenticeships 27 Challenge 2.2: Routes into Industry – Further Education 28 Challenge 2.3: Routes into Industry – Higher Education 29 Case Study: T Levels 30 Challenge 3: Competence of Individuals 31 Case Study: TESP Experienced Worker Assessment 32 Challenge 4: Skills for a Modernised Industry 34 Case Study: Investment in New Skills Will Ensure UK Construction Continues to Innovate 35 We Must All Play Our Part 36 What Happens Now? 37 Case Study: Supply Chain Sustainability School 38 Acknowledgements CLCIndustry CLC IndustrySkills SkillsPlan Planfor forthe theUK UKConstruction ConstructionSector Sector2021 2021––2025 2025 3
Executive This plan outlines how we will work together to solve core skills needs by ensuring we have the necessary high-quality training and development to build an industry that is a great place to work, Summary with clear routes of entry and progression to attract and retain talented people. Industry Overview Employment: Planned Investment: Gross Value Added (2018): and Forecast Demand 2,745,550 1 £850bn+ £200bn For more information see page 10. Standards and Training, Education Culture and Working Careers Qualifications and Development Environment Core Skills Challenges For more information Together we can create an Together we can create the Together we can enable Together we can create an industry that is attractive to underpinning foundations for high-quality routes into industry whose culture and see page 14. talent and bring those skills high-quality, transferable skills industry and development operations make it a great in through multiple routes and pathways for learning in industry to provide the place to work that retains skills needed now and talented individuals in the future Routes into Construction For more information see page 15. Study Work + study/training Employment + study Sustainable employment 1 F or construction contracting and building professional services as core plan focus. Component of full built environment statistics outlined in page 10 CLC Industry Skills Plan for the UK Construction Sector 2021 – 2025 4
Executive Summary Addressing Our 1. Improve access to opportunities for all and 2. Boosting all routes into industry, including 3. Competence: Shift to focus on competence 4. Skills for a modernised industry: Skills Needs attractiveness of careers enhanced work experience through the development Up-skilling and re-skilling provision for those in of sector-specific in the skills that are full-time FE and HE competency frameworks. required to transform Ensuring both “point in the industry. This will time”, ongoing continuous incorporate focus on professional development both new technologies (CPD) and revalidation / methods, (e.g. off- of competence site), and the requisite For the first year of this plan’s lifetime behaviours, (e.g. we want to focus on the four key creativity, sustainability, and inclusion) areas outlined here. Enables Enables Enables Enables The following pages set out, for each challenge, the details of key 1.1 Support access for 2.1 Grow the number of Develop higher technical Skills to deliver actions that need to be achieved to all industry to operate a apprentices and enhance qualifications to support net zero carbon targets meet them. Case studies have been more inclusive culture to the routes to and through progression through retrofit, new build included to demonstrate the work that encourage new entrants at apprenticeships, and construction operations every stage of their career including the role of the Health and Safety: is already underway and the progress and retain skilled workers Apprenticeships Levy (AL) Improve and embed higher Deliver skills to embed that industry is already making. standards of safety practices emerging innovations within the industry and digital technologies 1.2 Make construction an to improve efficiency, 2.2 Improve the links attractive career sector Modernise standards and productivity, sustainability between FE and employers, of choice through better qualifications to deliver the and building safety and the pathways from FE development, delivery and skills our industry needs in into apprenticeships and showcasing of the career the future (e.g. digital employment. Support the development opportunities and behavioural) T Levels route our varied industry offers 2.3 Improve the links 1.3 Strengthen support for between HE and employers, direct employment as an and the pathways from HE enabler of apprenticeships, into employment upskilling and attractiveness of careers CLC Industry Skills Plan for the UK Construction Sector 2021 – 2025 5
Executive Summary Addressing Our Skills Needs – actions Plan to support well-being Diversity measuring, monitoring Challenge 1.1 Roll out FIR Programme 1,700 active Ambassadors and mental health services and target setting Access for all Deadline: June 2022 Deadline: January 2024 Deadline: June 2021 Deadline: December 2022 Agree standard for work Clear career paths Support Kickstart and Construction Talent Retention Challenge 1.2 experience and increase Implement Work Place Promise info and portal Skills Bootcamps Scheme 1% redeployment Attractiveness of Careers quantity of placements Deadline: September 2021 Deadline: Ongoing Deadline: September 2021 Deadline: 2025 Deadline: June 2021 Engage with Gov Support Gov to mandate Embed procurement to Collate direct employment CLC-hosted evidence base on Employment Status Team Challenge 1.3 direct employment demand direct employment good practice benefits of direct employment Deadline: April 2022 with Direct Employment through procurement in supply chains Deadline: October 2021 Deadline: April 2022 commitment in place Deadline: April 2022 Deadline: December 2024 by December 2022 Extend current Gov COVID-19 All apprenticeships Support Gov AL Develop fast track from Develop Kickstart brokerage Challenge 2.1 incentives for employers for new on .gov site transfer reform FE to apprenticeship service for SMEs Routes into Industry – Apprenticeships apprentices to end of year Deadline: May 2021 Deadline: August 2021 Deadline: August 2021 Deadline: 2021-2024 Deadline: September 2021 Develop construction Industry/FE increase Develop employer Employer incentives, Guidance to increase Increase quality of Challenge 2.2 traineeships accuracy of skills forecasting engagement with FE resources for colleges, provider and employer technical education, Routes into Industry – FE Deadline: Bricklaying by location and role work experience brokerage for traineeships engagement streamline L2/3 traineeship launch 2021 Deadline: April 2021 Deadline: Spring 2021 Deadline: 2021 Deadline: Autumn 2021 Deadline: Summer 2023 CLC Industry Skills Plan for the UK Construction Sector 2021 – 2025 6
Addressing Our Skills Needs – actions (continued) Link employers, providers and Assess accreditation routes into HE providers to embed FIR Collaborate for curricula design/delivery Challenge 2.3 schools to improve availability of professions for single discipline in recruitment criteria for skills needs Routes into Industry – HE work experience opportunities courses to produce hybrid managers Deadline: June 2022 Deadline: June 2022 Deadline: June 2021 Deadline: June 2023 As part of these preparations, ensure Support pilot groups in developing first wave Assist Working Group 2 preparations for effective dialogue with priority sectors of sector-specific competence frameworks, in Roll out competence frameworks Challenge 3 sector competence framework pilots and support wider industry and line with Working Group 2 recommendations across occupations Competence Deadline: June 2021 stakeholder engagement and BSI Overarching Framework Deadline: December 2024 Deadline: June 2021 Deadline: December 2021 Use future skills research for Smart Construction Define career pathways to Gov procurement to encourage and Net Zero to influence standards and training support modernised skills Smart Construction Deadline: April 2021 Deadline: 2021 Deadline: 2021 Update routes to entry and new entrant Develop Smart Construction training Develop training for skills to enhance Review and update apprenticeship Challenge 4 standards and qualifications for for existing and new industry roles, and traditional delivery roles with digital, standards and technical Skills for a Modernised Industry Smart Construction and Net Zero embed into standards and qualifications technical and collaborative practices qualifications to meet Net Zero Deadline: 2021 Deadline: 2022 Deadline: 2022 Deadline: 2022 Support and fund innovation for flexible Support development of Construction CLC Centres of Excellence to develop learning (inc. immersive and online) Higher Technical Qualifications L4/5 relationships and integrate tech upskilling Deadline: 2022 Deadline: 2023 Deadline: April 2024 CLC Industry Skills Plan for the UK Construction Sector 2021 – 2025 7
Opportunities and Challenges CLCIndustry CLC IndustrySkills SkillsPlan Planfor forthe theUK UKConstruction ConstructionSector Sector2021 2021––2025 2025 8
Opportunities and Challenges Introduction This plan will be developed into a co-ordinated group of activities that will achieve the outcome set out in both this plan and the CLC Industry Recovery Plan, through CLC workstreams and working groups. Despite the upheaval over the last year, the pandemic has driven an impressive collaborative approach between our industry and Government, evidenced by the CLC Industry Task Force and its regular engagement with the Department for Business, Energy and Industrial Strategy (BEIS). The development of the CLC Industry Recovery Plan is the result of a stronger level of co-operation and support with Government. This can really enable better progress with addressing what seemed to be entrenched skills challenges in the past, such as the poor conversion rates from FE, the insufficient levels of direct employment and low levels of diversity in the industry. CLCIndustry CLC IndustrySkills SkillsPlan Planfor forthe theUK UKConstruction ConstructionSector Sector2021 2021––2025 2025 9
Opportunities and Challenges Industry Overview Quarrying of construction materials 550 enterprises 19,700 workforce 90 apprenticeship starts £1,383 GVA (£million) Broad and Narrow Industry Structures 509,210 £200,251 enterprises GVA (£million) This plan is by industry, for industry. 3,540,950 £366bn Manufacture of The narrow definition of the industry conforms to the definition used in official statistics, covering those who Professional services workforce economic output (2018) construction products, construct, repair and maintain buildings. However, 137,320 enterprises materials and assemblies the built environment has a significantly wider reach 641,830 workforce 35,390 £850bn+ 22,685 enterprises 1 across other sectors and the supply chain, all requiring 5,250 apprenticeship starts apprenticeship starts planned investment 365,400 workforce the skills needed now and for the future to deliver and £42,506 GVA (£million) 2,500 apprenticeship starts maintain the UK’s build pipeline. £23,891 GVA (£million) A broader sector can be seen to include the supply chain for construction materials, products and assemblies, and professional services such as management, architecture, engineering, and surveying. We believe the industry should increasingly be viewed in terms of its wider definition as the current and future On-site assembly Contracting and Building Sale and repair of fortunes of these activities are critically intertwined. by non-contractors Engineering Services: buildings, construction products, 2,905 enterprises infrastructure and RMI materials, and assemblies 89,000 workforce 355,005 enterprises 22,890 enterprises 2,050 apprenticeship starts 2,291,250 workforce 321,300 workforce £1,584 GVA (£million) 24,700 apprenticeship starts 800 apprenticeship starts £108,738 GVA (£million) £21,694 GVA (£million) 1 Number of apprenticeship starts by sector of employer and subject of learning aim for 2018/19. Covers England only. Source: Workforce, CITB estimate based on Labour Force Survey (2019) and Business Register and Employment Survey (2019) Enterprises, UK Business Counts - enterprises by industry and employment band size (2019) GVA, Annual Business Survey 2018 (Release Date 15 May 2020) CLC Industry Skills Plan for the UK Construction Sector 2021 – 2025 10 Apprenticeships, Skills Funding Agency (Academic year 2018/19)
Opportunities and Challenges The Broader Opportunity Construction is a core sector of the economy. If we can improve its Improving the Social ─ Providing sustainable, satisfying careers that are open to all ─ Delivering a built environment that meets the needs of society through improved productivity, through improving its people’s skills and the retention of effectiveness infrastructure, public services and housing and in this way contribute to social value and help tackle economic inequality of 2.7m people ─ Technical education reforms can help to unlock attitudes to and participation in the sector those skills, there is a massive benefit to be gained. There is also the opportunity for powering Political and Economic ─ Impact of effective infrastructure and construction to support a growing economy ─ Continuing/growing UK construction skills as a significant export industry construction to make the most effective contribution to society and 11.2% of GVA ─ Effective delivery of major projects increases public Return on Investment (ROI) ─ Government can help reform employment status for tax and employment rights purposes the environment through the skills of its people. Technical ─ Embrace digital tools and processes to drive productivity ─ Improve construction’s ability to drive out the benefits of technology at all stages – stop the historical ‘lag’ of construction behind other sectors and embrace new ways of working Environmental ─ More than almost any industry, construction can transform the way the built environment works with the environment ─ The UK is legally bound to reduce emissions to net zero by 2050, and around half of all UK emissions can be influenced by construction ─ Drive waste management elimination from design to delivery (whole life considerations) ─ Reform building safety and competence to keep the built environment safe ─ Reduce construction impact on the built environment in terms of increasing biodiversity and decreasing pollution CLC Industry Skills Plan for the UK Construction Sector 2021 – 2025 11
Opportunities and Challenges INDUSTRY INSIGHTS UK 2019-2023 • Construction Skills Network • Labour Market Intelligence 7 Future Demand C M ANNUAL RECRUITMENT REQUIREMENT (ARR) BY OCCUPATION Y K PMS ??? PMS ??? NON-MANUAL OCCUPATIONS TOTAL 2019 ARR PMS ??? EMPLOYMENT 2023 CITB RESEARCH PMS ??? Non-construction professional, technical, IT, and Non-printing other office-based staff 388,320 410,890 4,860 CONSTRUCTION Colours COLOUR Other construction process managers 208,050 3,420 222,150 COLOUR Senior, executive, and business process 184,750 1,400 JOB LOCATION: PRINERGY 3 managers 191,620 Construction trades supervisors 49,840 850 Our industry is wide and varied; the 54,250 SKILLS NETWORK Construction project managers 49,330 580 52,670 skills and occupations we need to MANUAL OCCUPATIONS support reflect this. The Construction Wood trades and interior fit-out 263,530 259,450 2,380 Skills Network (CSN)1 is a core source Electrical trades and installation 188,760 178,840 1,570 166,720 1,900 of data that drives our understanding Plumbing and HVAC Trades 162,670 130,010 1,770 Labourers nec* of the demand for skills and we use 134,010 Painters and decorators 112,800 960 110,920 this to focus our efforts on both the Building envelope specialists 108,290 105,480 560 skills needed in the short-term, and Bricklayers 72,240 71,540 810 the skills we believe we need to start Specialist building operatives nec* 58,440 55,950 820 52,100 250 developing now for the future. Plasterers 49,230 Roofers 46,930 750 45,600 Plant mechanics/fitters 42,740 580 41,310 Plant operatives 41,600 980 43,680 INDUSTRY INSIGHTS: Glaziers 30,840 29,850 280 LABOUR MARKET INTELLIGENCE Floorers 26,150 24,960 290 Steel erectors/structural fabrication 24,430 430 24,150 UK Logistics 24,240 25,710 620 2019-2023 720 Scaffolders 23,040 24,730 Civil engineering operatives nec* 22,000 180 23,000 Non–construction operatives 36,930 – 39,290 PROFESSIONAL OCCUPATIONS Other construction professionals and 208,050 3,260 technical staff 224,480 Surveyors 71,920 1,420 77,900 Civil engineers 56,480 1,190 60,980 Architects 43,630 870 48,530 SOURCE: ONS, CSN, EXPERIAN. REF: CSN EXPLAINED CSK-CSN-National-2019.indd 1 21/02/2019 12:17 CSK-CSN-National-2019.indd 7 21/02/2019 12:17 1 CSN covers contracting and professional services CLC Industry Skills Plan for the UK Construction Sector 2021 – 2025 12
Opportunities and Challenges The Need to Address the Skills Challenge Now Technology and modern methods of construction are –C onsequently industry continues to modernise very rapidly evolving the skill sets we require to keep pace, slowly and does not make the efficiency, productivity and the Government’s renewed commitment to evolving or quality improvements that the Government (through the nation’s infrastructure will require focus and energy the sector deal) is looking for from the sector to deliver. Regulation, particularly in response to the Grenfell tragedy, is placing greater This plan recognises that the skills system going forwards focus on businesses delivering to the highest will be employer-led. To have impact we need to influence possible standards. employer behaviours to balance individual employer ‘wants’ and broader industry-wide ‘needs’. All of us are keenly aware of the responsibility we have to Co-ordinated action with employers, government, other ensure the built environment vastly reduces its impact on key clients and the education sector through this Skills the natural environment – the UK Government has been Plan is therefore required. unequivocal on the contribution of construction in moving towards a zero-carbon society with the establishment of This plan is a plan for industry, by industry. It is the the Green Jobs Task Force. The net zero agenda presents product of collaboration between the CLC, CITB, ECITB, both a major challenge in terms of updating skills across FE, HE, BEIS and voices from across the industry to the sector, but also a massive opportunity for smaller develop an approach to tackling the skills gap head on, firms in the retrofit work that will be created. once and for all. It provides an actionable, measurable blueprint for recruiting the right talent, training them to However, there are some ongoing, entrenched skills have the right skills, and ensuring that the sector as a challenges in modernising the skill set of construction whole is supported to develop and maintain the highest that need to be tackled: levels of competence. –E mployers are largely not recruiting and training the It is a plan that attempts to balance what businesses workforce with the skills they will need in the future in the sector want with what the industry needs as a as the industry modernises. This is due to inadequate whole, now and in the future. And it is a plan we need levels of direct employment and short-termism related individuals, employers and representative organisations, to lack of visibility of the pipeline of work, small and groups in Construction and the Built Environment margins and clients buying on cost not value sector to rally round. –M ost clients (perhaps due to lack of awareness) do not demand modernised techniques such as offsite manufacture, digitisation etc., or they assume it is part of embedded business innovation within the supply chain CLC Industry Skills Plan for the UK Construction Sector 2021 – 2025 13
Opportunities and Challenges The Core Skills Challenges Standards and Training, Education Culture and Working Careers Qualifications and Development Environment Together we can create an Together we can create the Together we can enable Together we can create an industry that is attractive to underpinning foundations high-quality training and industry whose culture and talent and bring those skills for high-quality, transferable development when and operations make it a great In order to improve the productivity in through multiple routes skills and pathways for where needed that equips place to work that retains of the construction industry and learning the workforce in current talented individuals and emerging skills seize the opportunity for its wider contribution to the UK, it needs In the next four years we need In the next four years we need to: In the next four years we need to: In the next four years we need to: to improve the productivity of its to tackle the causes of hard-to-fill ─ Standardise the approach to ─ Grow the number of apprentices ─ Drive a culture of innovation vacancies, where applicants lack main asset – its people. This means the skills required and not enough developing sector-wide skills and enhance the routes to and including the use of and knowledge to increase through apprenticeships technology to drive attracting talent by offering careers people are being trained. mobility across the industry productivity improvement ─ Improve the progression of choice and being a positive and ─ Shift to focus on competence. of FE learners into workers ─ Increase the levels of direct We need to: fulfilling place to work and effectively Consider both “point in in the industry employment to improve the ─ Change to take a long-term time” and ongoing need for attractiveness of the sector upskilling, re-skilling and cross-skilling view of workforce skills, ─ Demand training and education development in all roles in the skills that are needed to and as a fundamental enabler the workforce to work effectively and planning and embracing of apprenticeships, career ─ Tackle variation in training deliver differently in the future, safely. In order to overcome these multiple skills supply routes standards and qualifications – for example new technologies progression, upskilling, (i.e. adults, job changers, skills challenges, action across the industry changers) ensure training and education and methods (e.g. offsite). reskilling, competence is to an agreed standard and Create new jobs and the need and innovation sector, Government, education and ─ Make construction a sector of available where needed to re-skill existing workers ─ Reform structural and others is required. choice for young people through ─ Ensure that work-ready skills ─ Demand innovation in the ways contractual arrangements that better career path information lead to detrimental culture, such as team working and in which learning is delivered and more direct employment which impacts on health time management are flexibly (time, place, pace and ─ Enable access to the industry embedded into training platform) including immersive, and wellbeing for all groups to improve online and location diversity, this includes access to work experience opportunities CLC Industry Skills Plan for the UK Construction Sector 2021 – 2025 14
Post-16 KEY Study Work + study/training Employment + study Routes Into No qualifications Exam retakes – resit A levels, BTECs, GCSEs. HE qualifications – courses taught in universities, colleges, specialist institutions. Quals. include diplomas, bachelor degrees, foundation degrees, post-graduate degrees, Construction A Levels – academic classroom learning. Sector based work academies Technical and vocational qualifications – qualifications related specifically to the industry and role in which the learner wants to find employment, e.g. BTECs. – 6-week intensive courses, classroom based, route to CSCS / Applied T Level Transition CCNSG card. qualifications – Programme – study classroom learning w. programme for 16-19 practical skills ear olds to prepare element. students for progression to T CITB onsite Levels. Expected to training hubs – T Levels – 80% last up to 1 year. physical facilities provider setting theory which enables with practical skills, potential entrants 20% industry Traineeships – courses between 6 weeks and a year in to become site placements (average duration for 16-24 yo (25 with EHCP), not in employment, and employment of 350 hours and with no higher than L3 qualification. 70 hours minimum ready. workplace work experience – intention to prepare young people for an experience). apprenticeship or a job. L3 Adult Offer – for adults without full ECITB pre- qualification at L3. employment programme – 2- week programme covering CCNSG Advanced Safety Passport apprenticeship – Supported and basic skills Intermediate for school leavers internships – for areas. apprenticeship – with some young people with Higher apprenticeships – employment-based path to Degree apprenticeships apprenticeship – give learners a typically for younger academic learning difficulties or progression. 80% in the workplace, 20% off-the-job training. higher education degree while employed. Typically longer in school leavers in background. learning disabilities, Training delivered in universities, colleges, specialist duration than other apprenticeships but maintain the balance practical or vocational Qualification who need extra institutions. Can span to L6/7 if no degree qual. included. of 80% in the workplace, 20% off-the-job training. trades. 80% in the equivalent to 2 A support to get a job. workplace, 20% off- levels. 80% in the Minimum 6 months the-job training. workplace, 20% off- duration. the-job training. ECITB scholarship – 2-years craft or technician training (potential 1 year jump-off point from craft stream). Construction bootcamps – up to 16-week courses to build sector-specific skills, supporting individuals to re-skill/up-skill, formalise existing skills. Kickstart – job placements for 16- to 24-year-olds on Universal Credit and at risk of long-term unemployment. Higher technical skills, degree qualifications, professional titles – employees entering the labour market with L3 qualifications are eligible for Entry level employment à skilled employment – L1-2 qualifications are typically used as introductory jobs at technician level and have the option to train for higher or degree level apprenticeships, at their employer’s discretion. Degree level routes into jobs in the construction sector; these qualifications make people eligible for the CSCS card. apprenticeships provide a route into the sector for HE graduates in specific subjects. Courses at L3+ also provide a route to professional titles. Diagram developed in collaboration with HMG through the Construction Skills Delivery Group. Used with the permission and with thanks to DfE and BEIS. CLC Industry Skills Plan for the UK Construction Sector 2021 – 2025 15
Opportunities and Challenges STEM Ambassadors Go Construct Attracting and Retaining Diverse Talent and Helping People to Join For entrants – A single, focussed programme to build understanding of construction careers. For entrants – A single place for accurate and timely careers advice and guidance. For employers – Increasing awareness amongst new entrants. If we all For employers – Increasing awareness amongst new entrants and their collaborate and use it, it can become the place for construction careers influencers to attract the next generation to the sector as a career of information and signposting. choice. The more we join, the greater our reach to the next generation. A lot of the key programmes are in place. If we all get behind these Fairness, Inclusion and Respect (FIR) Programme Talent Retention Scheme and do our part, we can make great progress towards attracting and retaining the skills and talent the industry needs. Please support these key construction initiatives as we develop them further through this Skills Plan. For entrants and workers – Helping to create an industry you want to join For workers – A place to find new opportunities or find support in your current role. and remain a part of. For employers – If we all support it, this can become the clear and easily For employers – This provides a common toolset for increasing understanding of accessible place to find opportunities and promote talent. It provides a central the business benefits of Fairness, Inclusion and Respect, as well as how to embed site for opportunities of redeployment for workers already in construction, as well effective working practices within organisations and their supply chains. If we all as to upskill and reskill people from other sectors. support it, this in turn leads to an industry better equipped to attract and retain a diverse workforce at all levels. CLC Industry Skills Plan for the UK Construction Sector 2021 – 2025 16
The Skills Plan CLCIndustry CLC IndustrySkills SkillsPlan Planfor forthe theUK UKConstruction ConstructionSector Sector2021 2021––2025 2025 17
The Skills Plan Addressing Our 1. Improve access to opportunities for all and 2. Boosting all routes into industry, including 3. Competence: Shift to focus on competence 4. Skills for a modernised industry: Skills Needs attractiveness of careers enhanced work experience through the development Up-skilling and re-skilling provision for those in of sector-specific in the skills that are full-time FE and HE competency frameworks. required to transform Ensuring both “point in the industry. This will time”, ongoing continuous incorporate focus on professional development both new technologies (CPD) and revalidation / methods, (e.g. off- of competence site), and the requisite For the first year of this plan’s lifetime behaviours, (e.g. we want to focus on the four key creativity, sustainability, and inclusion) areas outlined here. Enables Enables Enables Enables The following pages set out, for each challenge, the details of key 1.1 Support access for 2.1 Grow the number of Develop higher technical Skills to deliver net zero actions that need to be achieved to all industry to operate a apprentices and enhance qualifications to support carbon targets through meet them. Case studies have been more inclusive culture to the routes to and through progression retrofit, new build and included to demonstrate the work that encourage new entrants at apprenticeships, construction operations every stage of their career including the role of the Health and Safety: is already underway and the progress and retain skilled workers Apprenticeships Levy (AL) Improve and embed higher Deliver skills to embed that industry is already making. standards of safety practices emerging innovations within the industry and digital technologies 1.2 Make construction an to improve efficiency, 2.2 Improve the links attractive career sector Modernise standards and productivity, sustainability between FE and employers, of choice through better qualifications to deliver the and building safety and the pathways from FE development, delivery and skills our industry needs in into apprenticeships and showcasing of the career the future (e.g. digital employment. Support the development opportunities and behavioural) T Levels route our varied industry offers 2.3 Improve the links 1.3 Strengthen support for between HE and employers, direct employment as an and the pathways from HE enabler of apprenticeships, into employment upskilling and attractiveness of careers CLC Industry Skills Plan for the UK Construction Sector 2021 – 2025 18
The Skills Plan And Progress is Already in Motion – Improved careers information about how to join and progress through construction on the industry portal, Go Construct – Started to align construction with the STEM Ambassador programme to broaden reach of influence in schools – Updated apprenticeship standards to reflect the needs of employers – Collaborated to influence the roll out of T Levels in Construction and Building Services Engineering – Used key migration research to influence Government on post-Brexit migration rules to better meet the needs of the construction industry – Published Future Skills research to spread understanding about what skills construction will need in the coming years However, there is much more that now needs to be done to build on this progress. CLCIndustry CLC IndustrySkills SkillsPlan Planfor forthe theUK UKConstruction ConstructionSector Sector2021 2021––2025 2025 19
The Skills Plan Challenge 1.1: Path to Solving This Challenge Outcomes and Benefits Access for All In order to make industry inclusive and attractive a number of steps ─ Improved diversity enables both attraction and retention through are needed: a more inclusive culture and a more attractive sector to work in ─ Improved retention saves unnecessary recruitment costs. With the ─ Improve perceptions of potential new entrants and those average recruitment cost of £4,000* and a general average UK who influence them in their career choices, e.g. friends, parents, cost of replacing an employee and the resulting loss of productivity Support the whole industry to peers and teachers calculated at £30,000** we need to retain talent rather than letting operate a more inclusive culture ─ Provide clear information about the career opportunities it flow out of construction ─ Innovation: when people feel included they feel more comfortable to encourage new entrants at in construction and how to access, participate and progress to share their ideas. Deloitte research identifies an 83% uplift in innovation when people feel included and that their employer is every stage of their career ─ Make the reality of working in construction inclusive committed to diversity. and retain skilled workers and a sector of choice, to both attract and retain talent * Talent Retention Scheme work CLC ** ACAS, 2014 Before the pandemic, CITB forecast the need for an extra 40,000 workers per year in construction to address the known pipeline of work up to 2025. Actions and Owners This need is partly generated by the rising age profile of the construction workforce. In addition, reduced access Improve perceptions of potential new entrants and those who influence them 3. Commit to a common Owner to EU migrant labour from January 2021 is expected to further diversity measuring and CLC increase industry’s domestic recruitment requirement. 1. Join STEM Ambassadors to provide Owner monitoring system and set practical input in schools, colleges CLC aspirational targets at all levels Deadline The impact of the pandemic and resulting recession has and workplaces about the reality of for recruitment, retention and December 2022 construction and how to join, as well as Deadline progression of under-represented significantly reduced skills demand across industry. However, showcasing the variety of construction Target: Access to 7,000 STEM groups that reflects the there will still be a 210,000+ recruitment requirement between roles. Ensure they are equipped with Ambassadors (targets for number 2021–2025. demographic of the UK inspiring messaging, new careers of engagements to be set) by working population materials and activities to help bring September 2021. Convert 1,700 into Women, ethnic minorities and people with disabilities are still construction careers to life supported, active Ambassadors by 2024 underrepresented in nearly all occupations in the Construction 4. Support wellbeing and Owner and Built Environment sector. There are challenges around mental health services CLC to promote and Make the reality of working in construction inclusive and through the creation and support coordinate action equality of pay and progression, diversity in leadership as well a sector of choice, to both attract and retain talent of industry services, such as the as a lack of diverse role models for new entrants to aspire to. Lighthouse Charity Deadline This is at least in part due to the recruitment practices of the 2. Implement the Fairness, Inclusion Owner Engagement industry, which repeat the process of direct recruitment from and Respect programme through CLC, supported by CITB plan operating by the supply chain to help construction June 2021 known sources, compounding the issue. This, together with operate within a more inclusive culture Deadline a fragmented company-by-company approach to recruitment, to encourage new entrants and retain Roll out FIR programme by June 2022. makes it exceptionally difficult to reach a more diverse set skilled staff An additional 3,000 construction companies of applicants. to engage with the FIR programme, 1,500 active FIR Ambassadors and 5,000 new learners by 2025 Key sources: https://www2.deloitte.com/content/dam/Deloitte/au/Documents/human-capital/ deloitte-au-hc-diversity-inclusion-soup-0513.pdf CLC Industry Skills Plan for the UK Construction Sector 2021 – 2025 20
The Skills Plan Case Study: How Ardmore Recruits and Retains a Diverse Workforce Ardmore, a privately owned building contractor, believe Ardmore believe that the business benefits too, as that it is essential to recruit from the communities they their inclusive and collaborative culture refreshes the are working in, especially when that is in the middle of knowledge and skills of their mentors and retains a housing estate – giving back by employing the people valuable talent. most affected by their work. For more information visit the Supply Chain Eilish Kwai, Employment Skills Manager, visits colleges Sustainability School website. and careers fairs to talk to people about construction and the opportunities for apprentices and graduates with Ardmore Group. If people are interested, she tells them “if you are serious, email me” and if they do, she finds them a work experience placement. If they work hard and have the right attitude she finds them a role and supports them. This approach has brought fresh new talent into Ardmore and – as a result – its diversity profile is significantly Ardmore believe that it is more diverse than industry averages. Its profile is younger, more female and more BAME. essential to recruit from the communities they are These impressive diversity statistics are achieved by: working in – as a result ─ Accessible recruitment processes ─ Local recruitment – its diversity profile is ─ Outreach to colleges and job fairs significantly more diverse ─ Four-week work placements than industry averages. ─ A culture of mentoring CLC Industry Skills Plan for the UK Construction Sector 2021 – 2025 21
The Skills Plan Challenge 1.2: Path to Solving This Challenge Outcomes and Benefits Attractiveness We need to recognise the diverse routes into our industry and the variety of career options available to people within our industry. This means we need to: ─ Improved career visibility attracts talent ─ Improved careers opportunity retains talent of Careers ─ Provide clear information on the routes to join and to progress (for example, see p.15) ─ Provide mechanisms for people to use their skills in one area ─ Improved retention of talent saves unnecessary recruitment costs and productivity dips to build upon and move through or across to other areas through Make construction a sector a modular approach ─ Ensure that the vast array of opportunities are made clear to of choice through better potential new entrants but also to those in other sectors to attract development, delivery and talent of all ages showcasing of the career development opportunities Actions and Owners our varied industry offers Provide clear information about the career opportunities in 3. Clear information about Owner The breadth of career opportunities in our industry construction and how to join and progress career paths and how to DfE/CLC is massive and we need all of our roles filled from join and move through careers 1. Implement the national Owner in construction provided on Deadline groundworkers to architects to ground source engineers Talent Retention Scheme CLC industry portal. To help new Ongoing to deliver the built environment. to retain talent within the entrants, career changers and industry through shared Deadline returners into jobs in the industry, Latest data from ONS shows construction vacancies vacancy approach The Construction TRS target with the support to upskill or at 29,000 1 and this is on top of an Annual Recruitment to redeploy 6,900 workers retrain if necessary over a five year period (1% Requirement (ARR) of over 40,000 per year 2. redeployment rate). 2,500 supported jobs in 2024/25 4. Supporting Kickstart and Owner There are opportunities for people to join our sector Skills Bootcamps to provide work CITB/DfE placements for entrants to gain as new entrants, to re-join or to join from other 2. Implement the Work Place Owner skills and opportunities to Deadline industries. We need to make the opportunities clear enter industry September 2021 Promise of ongoing career ACE and visible and provide the necessary bridges in development and support through some cases through work experience or placement Consultancy and then into other Deadline 5. Agree a standard for work Owner opportunities to give people the opportunity to start areas too ACE to develop and roll out experience for industry to CITB their career in construction. by September 2021 operate to. Increase the quantity and accessibility of high-quality Deadline work experience placements June 2021 1 Reference: ONS January 2021 2 Reference: CSN CLC Industry Skills Plan for the UK Construction Sector 2021 – 2025 22
The Skills Plan Case Study: Building a Strong Pool of Talent for Construction Recognising the critical importance of retaining a Paul Thornton, Head of Talent Acquisition, buoyant pool of talent across the construction industry, Kier Group: Kier Group was one of the first companies to join the Construction Talent Retention Scheme (CTRS) shortly Kier have been involved with advertising vacancies after its launch in July 2020. since the inception of the Construction Talent Retention Scheme and have found it to be a vital platform in Supported by powerful technology, the CTRS enhances attracting new talent. Availability of skills will be the range of recruitment tools that Kier uses to fill a increasingly important to the sector as we continue to large number of vacancies every year. Since joining the adapt to challenges including COVID-19 and Brexit over scheme, Kier has advertised vacancies via the portal and the coming months. Ensuring we keep talent within the received almost 100 applications for roles as diverse as industry will be critical to delivery, particularly in light of quantity surveyors to site managers and planners. the increased investment by UK Government through the With the portal’s direct interface to Kier’s own National Infrastructure Strategy and the CTRS should be recruitment software, it is easy to both upload jobs at the heart of our planning for the industry as a whole. and to process applications. The CTRS supports the whole construction industry and plays an important role in attracting new talent into the The Construction Talent sector. In addition, as a collaborative platform that is free for all businesses and candidates to use, it serves Retention Scheme supports to unite the construction sector in its collective aim to the whole construction recruit and retain the best talent. industry and plays an important role in attracting new talent into the sector. CLC Industry Skills Plan for the UK Construction Sector 2021 – 2025 23
The Skills Plan Challenge 1.3: Path to Solving This Challenge Outcomes and Benefits Direct Employment There is no simple or quick solution given the wide range of factors influencing the entrenched industry structure. A long-term, multifaceted approach is required: ─ ─ ─ Increased proportion of directly employed construction workforce Increased investment in apprenticeships Improved safety, wellbeing, quality, productivity and innovation ─ Supportive Government regulation concerning procurement, ─ Improved perception of construction careers Strengthen support for direct taxation and employment status employment to improve ─ Widespread use of value procurement models ─ Raising industry awareness of the benefits of direct employment opportunity, culture and and helping employers and individuals overcome challenges skills investment CLC’s Industry Recovery Plan recognises direct employment as Actions and Owners ‘an enabler of apprenticeships, digital upskilling and competence’. Use of value procurement models that Supporting businesses to transform their Self-employment has rapidly increased since 2008 and is over 35% reward direct employment employment models of the whole construction workforce, heavily concentrated on site. Research correlates the decline in trade apprenticeships with the 1. Work with Government to Owner 3. Liaise with Government’s Owner growth in labour-only subcontracting and agency work. CLC/Government employment status team to obtain CLC amend procurement policies to incorporate a mandate for greater visibility of future policy Self-employed workers have more accidents and poorer occupational and Deadline intention. Build industry awareness Deadline direct employment, supporting April 2022 with commitment mental health outcomes. Secure employment is vital to attracting diverse April 2022 and develop resources to support the implementation of the in place by December 2022 talent, creating an inclusive culture and supporting social mobility. Construction Playbook businesses of all sizes Direct employment delivers a highly-engaged, competent workforce, 4. Collate direct employment Owner increased productivity and higher value. It is reported to overcome skills 2. Change procurement Owner good practice including related CLC shortages, spiralling labour costs, poor productivity and quality, avoiding practices to demand direct CLC procurement policies, contractual low uptake of new work processes and technology. It is mandated on employment within supply Deadline Deadline requirements and monitoring major infrastructure projects, reducing risks around delivery certainty, chains through pre-qualification October 2021 December 2024 and enforcement mechanisms reputation and quality. questionnaires and tender criteria. Develop model wording Raising industry awareness of the benefits of direct employment 5. Engage widely with industry Owner to build an evidence base CLC focused on realising the benefits of direct employment and Deadline April 2022 overcoming challenges CLC Industry Skills Plan for the UK Construction Sector 2021 – 2025 24
The Skills Plan Case Study: ECA Loan Labour Scheme The suspension of almost all electrical work at Gatwick Delron’s Technical Manager Ben Scofield was also very Airport during lockdown presented a major challenge for happy with Sandra’s electricians: ‘‘They all got on with Leading Electrical Services Ltd., most of whose work is the job straight away. Everything went in quickly and Gatwick related. well”. After some bad experiences with employment agencies, he sees real advantages in using direct Company director Sandra Rumbold-Koch feared for employees on a loan arrangement: “The fact that their the future, but then spotted an email from her trade employer wants to keep hold of them – you know you association, Electrical Contractors’ Association (ECA), are getting decent guys.” explaining that another member firm in the region was looking for short-term ‘top-up’ workers under ECA’s Further information about the ECA Loan Labour Scheme long-established Loan Labour Scheme. ECA put her can be found on the ECA website. in touch with Delron Services Ltd. and the two firms agreed to the loan of four electricians for a ten-day period over the October half-term break – enabling Delron to complete an accelerated installation contract at a school in Croydon. For Sandra, this and four other loan arrangements organised through ECA have helped the firm After some bad experiences ‘battle our way through’ – with work prospects with employment agencies, now, at last, looking up. Delron’s Technical Manager sees real advantages in using direct employees on a loan arrangement CLC Industry Skills Plan for the UK Construction Sector 2021 – 2025 25
The Skills Plan Challenge 2.1: Path to Solving This Challenge Outcomes and Benefits Routes into ─ Promote accelerated routes into apprenticeships through FE ─ Increase construction apprenticeship retention, attainment and completion ─ Recovery of apprenticeship starts in 2021 ─ Increasing numbers of annual apprenticeship starts in future Industry – ─ Reform the Apprenticeship Levy (AL) to support the post-pandemic recovery of construction apprenticeships as a critical pipeline to meet the ─ Reformed Apprenticeship Levy transfer system, enabling construction employers to pool Levy funds to strategically Apprenticeships skills needs of industry address industry skills needs Actions and Owners Boosting all routes into industry, including enhanced Reform the Apprenticeship Levy Increase construction apprenticeship retention, work experience provision attainment and completion for those in full-time FE 1. Recommend that Government extends the existing incentive Owner Government scheme to end of 2021 4. Support provision of pre- Owner Deadline apprenticeship experiences to CITB Grow the number of apprentices and enhance the develop a brokerage service, as routes to and through construction apprenticeships. September 2021 well as best practice to support Deadline The sector employs 2.7m people (about 9% of the construction SMEs to offer job 2021-2024 UK workforce) and has a number of challenges, one experience placements through being that 32% of the workforce are over 50, only 10% 2. Support Government Owner the Kickstart scheme’s are under 25. We need to continue to deliver 25,000 proposals to create pledge Government/CITB/AoC/BACH Gateway Providers new apprenticeships every year, whilst also improving function and matching service for Apprenticeship Levy Deadline diversity in the sector. August 2021 (to be implemented 5. Make all apprenticeship Owner as part of Project Speed work) opportunities available on Industry In order to continue to strengthen and support this apprenticeships.gov (which key route of entry, CLC will work on behalf of industry will be supported by the TRS) Deadline to create a sustained partnership between the DfE Promote accelerated routes May 2021 and the construction sector to set annual and multi- year targets for increasing apprenticeship numbers, 3. Develop an accelerated route Owner from FE into construction Government/CITB/AoC/BACH increasing the number of higher level apprenticeships, apprenticeships through to overcome barriers to take-up and to increase quality recognition of prior learning Deadline and completion rates. By continued work together we August 2021 can build the future skills base. Key sources: 1. CLC Apprenticeships sprint group asks paper (2020) CLC Industry Skills Plan for the UK Construction Sector 2021 – 2025 26
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