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Delivering Work Based Learning

4. ACCREDITATION OF WORK BASED LEARNING

Purpose of Chapter

4.1 Although learning and accreditation are potentially complementary processes, a large volume of work based learning goes unaccredited. The issues addressed in this chapter are:

• the incidence of the accreditation of work based learning in Scotland, and variations in accreditation across groups, sectors, etc.
• the added value of accreditation for employers and employees.

First, however, some of the key findings of the relevant literature are summarised.

Background Literature

Overall Take-Up of Vocational Qualifications

4.2 Coleman and Keep (2001) suggest that, in the UK, there has been a sharp rise in the proportion of the workforce with academic qualifications, but a relatively small increase in the numbers with vocational qualifications.

4.3 In Scotland:

• SVQ awards rose nearly four fold between 1993-94 and 1998-1999
• but there were still only 20,000 awards during the latter year…
• and 76% were at Levels 1 and 2.

Canning and Cloonan (1999) see the key factors affecting SVQ take-up in Scotland as:

• lower levels of educational achievement compared to some regions
• competition from NVQs, as national companies prefer their employees to have the same qualification throughout the UK, and so decide on NVQs.

However, SVQs are only one of a number of vocational qualifications. Canning and Cloonan also argue that competition from traditional vocational qualifications such as HNCs and HNDs has lowered SVQ take-up. Scotland has a higher take-up of these than England, and they play a particularly significant role at Levels 4 and 5.

Variations in Take Up of Vocational Qualifications

Sectors

4.4 Significant sectoral variations are revealed in the literature. Smith (1996) found employers in financial and business sectors less likely to offer learning opportunities leading to vocational qualifications than those in wholesale, transport and communications.

Occupations

4.5 There are also variations by occupational groupings (DfEE, 2001). Clerical and secretarial employees are the group most commonly holding an N/SVQ, and employees in low skilled manual jobs are least likely to. Those in professional occupations are more likely to hold a professional or academic qualification and few hold N/SVQs.

Size of Employer

4.6 Smith (1996) found that employers with 100 or more employees are 50% more likely to offer vocational qualifications than those employing 11-24 people. DfEE (2000) figures show that N/SVQs are offered by 8% of employers with 1-4 employees compared with 77% of firms with 500 + employees.

Benefits of Vocational Qualifications

Benefits for Employers

4.7 A number of research studies (Smith, 1996; Sims and Golden, 1998; CBI, 1998b; Canning, 1999) have found positive employer perceptions of the impacts of N/SVQs. Employers perceived N/SVQs to have a significant effect upon:

• the thoroughness and quality of the learning process
• the volume of work based learning carried out
• staff development and the accessibility of qualifications to staff of different ages, experiences and skill levels
• employee sense of recognition for their work, so enhancing self-esteem and confidence
• employee loyalty towards the employer, facilitating retention
• potential customers, through increased confidence in workforce skills and competences
• company performance, quality and competitiveness.

4.8 A survey found that where SVQs are funded by employers they are well regarded and credible. Where employers allow employees work time to complete the SVQ, providing assessment practices and promoting the award within the organisation, this can lead to the fulfilment of the aims of SVQs (Canning, 1999).

Benefits for Employees

4.9 There are close associations between earnings, the risk of unemployment and vocational qualifications (NACETT, 2000). Figure 4.1 shows that 20-29 year olds with a Level 3 vocational qualification or completed apprenticeship have lower unemployment rates and higher average earnings than those with GCSEs below Grade C or no qualifications. Of course, all of the gains cannot be attributed to the qualifications per se, as a process of upskilling lies behind them.

Figure 4.1. Unemployment Rates and Earnings for 20-29 year olds

Source: Labour Force Survey, 1998.

4.10 Smith (1996) found that 62% of employers offering vocational qualifications recognise the achievement by granting employees an advance in pay or promotion opportunities. IES research (Spilsbury, Moralee and Evans, 1995) revealed that around a third of NVQ attainers receive wage rises which are generally skill or merit-based, i.e. wage rises are compensated by increased productivity.

4.11 In terms of more broadly based benefits, a study by NFER (1999) found that participants believed that undertaking an N/SVQ had increased their confidence, occupational awareness and job-related knowledge.

4.12 Employees also see a range of more specific benefits (Callendar, 1997), including:

• practical assessment in the workplace instead of examinations
• the opportunity to acquire a qualification with national recognition
• an increase in self esteem and self confidence
• the value of the qualification when seeking jobs with other employers.

Incidence of Accredited Work based learning

Employer and Employee Evidence

4.13 The Scottish employers surveyed during 2000 as part of this study were asked to indicate the percentage of their workforce engaged in work based learning who had obtained or were moving towards a vocational qualification, and their employees who had participated in work based learning in the last 12 months were asked whether this had been accredited. Table 4.2 summarises the responses broken down by occupational grouping.

• overall, 40% of employees engaged in work based learning over the previous 12 months reported this was accredited, the percentage varying significantly from 51% of craft and related workers to only 8% of the unskilled
• employers tended to report higher levels of accreditation, although the pattern of variation across occupational groups was similar.

Table 4.2: % With Accredited Work Based Learning by Occupational Group

Source: Survey of Employers and Employees

Note: Based on percentage of employers providing work based learning and percentages of employees participating in work based learning

Variations in Accredited Work Based Learning

4.14 Based on the evidence of the employee survey, some variations in the incidence of accreditation for those involved in work based learning were identified:

• across sectors, accreditation of work based learning was relatively high in business and financial services, and health services, but significantly lower in retailing, hotels and restaurants and manufacturing
• employees of IiP recognised or committed employers were more likely to have their work based learning accredited than other employees.

SVQs Versus NVQs

4.15 In measuring the extent of accreditation, the survey of employers did not distinguish between different vocational qualifications. Employers were then invited, however, to express their preference from the range of vocational qualifications. This showed that:

• 62% of employers have no preference for - and possibly cannot distinguish between - SVQs and NVQs
• 14% would prefer to offer SVQs
• 3% would prefer to offer NVQs
• 4% would rather offer another type of VQ
• 18% are not prepared to offer any VQs.

It would appear that, in the main, employers prefer to use SVQs over NVQs. Perhaps the main issue is their lack of preference, or inability to distinguish clearly between the two.

Added Value of Accreditation

4.16 Qualification systems clearly add value to training investments at the level of the national economy. For employers and employees they provide a means of assessing or demonstrating that particular skill levels have been achieved. In this way they promote labour mobility and the more effective matching of candidates and vacancies. Although these benefits should be felt by employees with the opportunity to acquire accreditation for their work based learning, it is less clear that employers will favour a process which raises the employability and reliability of their employees in the wider labour market. This section tests the responses of the Scottish employers and employees surveyed in 2000.

Benefits for Employers

4.17 The employers surveyed articulated a wide range of motivations for offering accreditation of the work based learning they provided.

• the most frequently mentioned motivation was getting their employees up to a nationally recognised qualification level. The rationales behind trying to achieve this were not made clear, but are reflected in some of the other points listed below
• around a third of employers reported principal motivations which linked directly or indirectly to the competitiveness or effectiveness of their organisation
• improvements to staff morale and higher retention rates were mentioned as the main motivations by 14% of employers
• 9% said they accredited work based learning mainly in order to access government funding to support their training effort.

Table 4.3: Employer Motivations for Accrediting Work Based Learning (%)

Source: Survey of employers

4.18 To assess whether accreditation of work based learning adds value beyond the training impacts, employers were asked to indicate the relative effectiveness of accredited and non accredited training in helping achieve a range of organisational goals. Employers appear to be divided on the relative merits of accreditation, although in the main they demonstrate a preference for it. Their responses are summarised in Table 4.4. Employers view accredited training as more valuable than non-accredited training in helping to:

• create industry wide skills (55%)
• develop core skills (53%)
• improve company image in the marketplace (51%)
• create employer specific skills (47%)
• improve staff morale (45%)
• increase staff loyalty to the company (42%).

Table 4.4: Relative Value of Accredited Versus Non Accredited Training (%)

Source: Survey of Employers

Note: Figures are row percentages, and do not always sum to 100% because some employers could not make a judgment.

4.19 Employers view non-accredited training as more valuable than accredited training in two important instances:

• raising employee productivity (44%)
• developing more flexible employees (40%).

These findings are supported to some extent by a DfEE study (Smith, 1996) which found that, for all vocational qualifications, employers were twice as likely to perceive a significant impact on staff morale as on productivity.

4.20 There were some variations by employer industry, size of employing unit and IiP status:

• only employers within the retail and hospitality industries considered that non-accredited training was more likely to increase the levels of staff loyalty than accredited training
• accredited training was considered most valuable for developing general industry skills in the workforce by primary, manufacturing and construction employers (62%) and business and finance employers (60%), compared to only 46% of retail and hospitality employers
• there were no significant differences in preferences between employers based on their IiP status.

Benefits for Employees

4.21 Before trying to ascertain the nature of any additionality for employeesin undertaking accredited work based learning, they were first asked whether they had undertaken any training associated with or supported by their employer because it led to a qualification.

• 13% said that this was the only reason that they did the training…
• ...and a further 27% considered it to be one of the reasons that they did the training
• 13% felt that the qualification was not a reason for doing the training
• 47% had either not done any training, or had not done any training leading to a qualification.

Accreditation was a contributory factor in the decision to undertake training for around 75% of the respondents who were involved in work based learning.

4.22 Employees were very positive about the value for them of accrediting their work based learning, with 87% considering that accreditation provides benefits additional to training with no qualification. Table 4.5 summarises the additional benefits that employees think that a qualification provides.

• the single most important additional benefit of undertaking a qualification is the 'currency' it provides for employees which they can 'spend' in the wider labour market. Helping obtain a better job with another employer was mentioned by 85% of employees and was seen as the most important benefit for 44%
• helping gain promotion with their existing employer was seen as the main benefit by 15%, well behind the figure for enhanced marketability in the wider labour market
• significant percentages reported increased self confidence and greater job satisfaction associated with gaining a qualification which is a recognition of a new or enhanced skill level.

Table 4.5: Additional Benefits for Employees Associated with Accreditation (%)

Source: Survey of Employees

4.23 There are some variations in response by occupational group, age and size of employer:

• just over half of clerical, and craft and related staff considered qualifications important if they wanted to change employer to get a better job
• more than a quarter of professional and technical staff wanted a qualification to help them gain internal promotion
• almost a quarter of personal and protective staff, and 1 in 5 of the managers saw a benefit in increased job satisfaction
• just over half of employees aged over 25 thought that training with a qualification would benefit them if they wanted to change employers, with 1 in 5 seeing the benefit as promotion with the same employer
• an increase in job satisfaction was reported as the main benefit by 15% of those aged over 45, who of all groups see the least benefit to them in gaining a qualification to enhance their promotion prospects
• employees with small employers were much less likely to cite improved promotion prospects as the main benefit of accreditation, with greater emphasis on enhanced employability in the wider labour market. This helps explain the lower incidence of work based learning and its accreditation in smaller employing units.

4.24 The focus group discussions tended to align with the survey results. Some of the main responses are listed below.

• a common response was that training leading to a qualification is of higher quality, goes into more depth and provides a wider knowledge base, beyond immediate job tasks
• others indicated that a qualification would allow them to carry out a wider range of tasks and to assume more responsibility at work
• the most common longer term benefit employees associated with a qualification was enhancing their CV, thus improving their prospects of getting a job with other employers. A smaller number felt they could gain promotion with their current employer.

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