Organisation and Policy: Influencing Public Policy: Archive
"In search of employability"
A response by NIACE to the CBI discussion document
Published: September 1998
NIACE welcomes the opportunity to comment upon this document which is an important and useful exploration to clarify an increasingly important term. "Employability" is both a fluid and a contested concept and while NIACE does not share all the details of the CBI analysis, we support the attempt to outline some of the policy implications of the term and believe that there is substantial common ground between differing understandings of it.
The Definition
2. Central to the whole CBI approach is the belief that employability is "specifically a quality of individuals". Without denying the centrality of individuals, NIACE believes that employability is better appreciated as a social construct. To see it too simply as an individual issue misses important dimensions of the concept. NIACE believes that employability is a responsibility shared more equally between:
individuals who must be responsible for accepting the consequences of choices they make;
businesses which, in employing a workforce and serving customers, inculcate particular values and attitudes as well as shaping behaviours. (In many senses what makes "employability" is determined by employers). Employers have a particular responsibility to develop the employability of their staff - for business reasons more than altruistic ones;
public bodies (schools, colleges, universities, the benefits agency, local and national government agencies) which have a duty to secure the employability of all citizens.
3. The following examples illustrate our notion of employability as being more than an individual quality. While these are acknowledged on page 26 of the document, we would hope that the broader picture is considered in more detail in any revised paper. Examples are:
The decline of employment in coal mining in the 1980s which demonstrated that the withdrawal of a dominant local employer could depress local economies to the extent that whole communities could become less employable, regardless of the qualities and competencies of individuals;
The "employability" of people in Merseyside in the 1980s was hampered by the area’s reputation for inefficient public services and labour militancy. In as much as these discouraged inward investment, the employability of the local workforce was reduced;
In inner cities there is a widespread belief that employers practice "post-code prejudice" to filter-out job applications from residents of certain estates;
Similarly in isolated rural areas, highly "employable" people may be out of work simply because the local economy is based on agriculture.
4. We welcome the report’s recognition that "employability" is a broad concept extending beyond paid employment but are concerned that the CBI document may take insufficient account of the relative nature of the concept of employability. By this we mean that if there is an absolute "employability threshold", it is likely to be less significant than relative employability - which becomes easier in times of labour shortage and which tightens in times of labour surplus. Effectively, people on the margins (for example those with disabilities, ex-offenders, those with limited basic skills) become more employable in a sellers’ market and less employable in a buyers’ market - a factor which reinforces our belief that the concept is not simply a quality of individuals.
5. From this it follows that NIACE does not share the belief that "a policy emphasis on employability needs to focus on everyone developing their qualities and competencies to meet the needs of the labour market. But this needs to be achieved on an individual basis…" For us, the individual is only one of three foci.
6. We welcome the paper’s recognition that employability for individuals is not limited to skills and knowledge and that values and attitudes may be just as significant. As an organisation concerned with learning in its broadest sense, we believe that the acknowledgement of such qualities by the CBI is important.
Measuring "Employability"
7. It follows that if "employability" is more than an individual construct, those aspects of it which are measured should not be limited to individuals. The amount of investment in human resource development by businesses may, for example, be significant in raising the employability of particular communities as may the degree of security which a workforce enjoys.
8. While it is important that any attempt to measure employability takes account of the appropriateness of skills and qualities to the requirements of labour market, we believe that it is important to recognise that particular attitudes and values may be highly contextual. What are appropriate values in foreign exchange dealing may be less so in healthcare for example. At present it is not clear how useful and sensitive measures might be developed.
Promoting Employability
9. We welcome the CBI analysis that employability should be promoted in an holistic way which will involve an examination of the implications of tax, benefit and pensions policy. The concept needs to be introduced prior to individuals’ entry into the labour market and extend beyond retirement from paid work.
10. We welcome the paper’s challenge to providers of education and training and share the implied analysis that responsiveness to labour market needs has often been interpreted in a narrow way. We also welcome the emphasis on careers education and guidance and would suggest that the role of supervisors and line managers be highlighted in action planning alongside the role of specialist services. NIACE’s involvement in the management of the government’s Adult and Community Learning Fund means also that we will be in a position to promote the collective and community dimensions of employability and we look forward to working with the CBI in the future.
11. As a small employer (62 staff), NIACE combines a commitment to the Investors in People standard with its own employee development scheme, an in-house learning centre and personnel practices which seek to evaluate and reflect upon all forms of learning in the workplace. In seeking to be a "learning organisation" we are aware of the balance that is needed between the actual and future needs of the business and personal development agendas. We would be happy to share this experience with other employers.
12. In the future it is likely that "employability" will be an important component of what has been described as a new "psychological contract" between employers and employees. Our view is that it is also an important public responsibility of the state towards all its citizens, in and out of paid employment.
September 1998
