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CHAPTER FIVE LEARNDIRECT SCOTLAND FOR BUSINESS

INTRODUCTION

5.1 learndirect scotland for business was launched in Summer 2002 from within the existing budget, with a remit to encourage and support SMEs to undertake training for staff. Whilst the brand operates under the umbrella of learndirect scotland, it is seen as an important addendum, focusing some resources on business. Information and advice is provided initially via the National Business Training Advice Line ( NBTAL). Businesses can then request a visit from a Training Partner to conduct a bespoke training needs assessment. A report is provided with recommendations regarding the best training solutions for the company. The Training Partner acts objectively in identifying the best solution for a business, and will not necessarily recommend the services of a Branded Learning Centre.

5.2 It was apparent from the stakeholder consultations that other SME-focused activities were also being taken forward. These include increasing engagement with Sector Skills Councils, in order to: a) ensure alignment of provider databases, and b) guide SUfI in its increasingly sector-driven approach to business assistance.

5.3 This review of learndirect scotland for business is derived from three sources. First, a review was undertaken of previous research and surveys which had been conducted on learndirect scotland for business. This was then used to inform a telephone survey (undertaken by FMR Research) of 200 SMEs which had had some contact with learndirect scotland for business. Following the survey, a sample of SMEs were invited to a focus group meeting held over breakfast in Glasgow.

5.4 The data from employers cannot be portrayed as being representative of employers generally, given that some contact was a pre-requisite for inclusion in the survey. Importantly, however, it provides indicative findings which enable a number of issues to be identified and explored.

REVIEW OF EXISTING RESEARCH

5.5 As part of SUfI's recognition of the fact that research is required to understand the impact of employers' contact with learndirect scotland for business and satisfaction with the service, surveys have been conducted with employers bi-annually since March 2003. The most recent wave of research (at the time of this evaluation) was undertaken in October 2005.

5.6 The following section highlights some of the key findings flowing from this research.

Awareness levels of learndirect scotland for business

5.7 A tracking study was initiated by SUfI in March 2002 to monitor levels of awareness of the learndirect scotland for business brand among employers and their recall of the campaign. For the purposes of this report, the findings of the March 2005 survey were the most recently available.

5.8 The 2005 study suggested that there were very low levels of awareness of learndirect scotland for business among enterprises, the . Indeed, when compared to the findings from previous years, the study indicated a continuing decline in knowledge about the brand, which was down to 15 per cent - although awareness was higher within the tourism sector, at 23 per cent, where specific marketing efforts had been undertaken. This is a somewhat curious finding, given that the expectation would normally be of a gradual increase in awareness over time.

5.9 We note that more recent research, in 2006, however, indicates a higher levels of awareness following work by SUfI.

5.10 The main conclusions from the 2005 study were that:

• there was evidence of a healthy interest in training amongst SMEs, with around half of the sample believing that training was increasing in importance
• increasing numbers of employers were using external training organisations, alongside informal training methods
• there appeared to be great potential for the provision of relevant training advice/resource
• little concern was expressed about sourcing courses: only 9per cent considered this difficult
• in contrast, issues were raised about identifying funding and sourcing types of training to suit individual business needs. This would appear to offer opportunities in terms of what the Training Partners can offer
• learndirect scotland for business has very low spontaneous brand awareness among SMEs
• in particular, recall of mailings was very low amongst an audience known to have been mailed. This may call into question the effectiveness of mass market mailings: it should be noted that SUfI has acted on these findings by introducing more sectorally relevant campaigns, based on a segmentation model - a perceived success has been achieved in the Tourism sector
• in the tourism sector, whose employers had been specifically targeted, awareness and understanding was higher, thereby lending support for the idea of a sector targeting approach
• few respondents appeared to understand the role of learndirect scotland for business or how it could be of help to their business.

5.11 As indicated earlier, the findings from the survey can be viewed as disappointing, certainly in relation to awareness. However, in response SUfI has instigated a comprehensive review of its approach to marketing to SMEs and the 2006 results demonstrate improvements.

learndirect scotland for business: Service Evaluation Results

5.12 In contrast to the relatively downbeat findings about awareness of learndirect scotland for business, other external research (Progressive Partnership, December 2005) highlighted the impressive levels of service being provided to callers. This was notably well-received at two levels, database/information provision and Training Partner involvement.

5.13 The quality of the service which is provided for employers is fundamental to the successful development of the learndirect scotland for business offering and provides a sound foundation on which the policy of awareness-raising can be based.

5.14 The findings of the learndirect scotland for business service evaluation are extremely pertinent given the diversity of the SME market and the variability of employers' requirements for training. The evaluation found that the highest satisfaction levels were achieved when both database and Training Partner services were performing well. It could be deduced from this that effective provision of both aspects are needed to meet the needs of the market. Latest data point to the database service being well-regarded by employers, with the proviso that it could benefit from continued updating to ensure that the information is accurate and covers as many industry-specific courses as possible. One area where monitoring is required is in the follow-up: it is considered to be important that callers receive all the information they have been promised.

5.15 The Training Partner service continues to deliver high satisfaction levels and is regarded as being extremely valuable by the majority of respondents. It would be easy to suggest that this should be rolled out more widely, in order to address the needs of greater numbers of employers. However, a note of caution needs to be introduced: should a roll-out be attempted, it will be important that the current levels of individual service/attention are maintained. At the same time, in terms of communication there is an identified need to ensure that greater clarity and reassurance over the specifics of what learndirect scotland for business offers is provided. The consultations suggest that this is in hand already. Therefore, the main challenge will be to maintain and improve service levels in the face of the increasing expectations of SMEs which are driven by new communications (see Progressive Partnership, 2005).

Training Partner service: internal review conducted by SUfI

5.16 Another source of evidence about the operations of learndirect scotland is the internal reviews of its Training Partner service which have been conducted by SUfI. The main findings of the study which reported in August 2005, in terms of its Training Partner ( TP) achievements between May 2002 and March 2005 were as follows:

• 2,562 'new' SMEs were visited by a Training Partner
• 1,983 'new' SMEs adopted a planned approach to learning as a result of TP intervention (77per cent of SMEs who engaged with TP)
• A further 1788 'new' SMEs received non 'face to face' advice from a Training Partner
• 980 SMEs engaged in our 'online for success' e-learning project
• 90 per cent of surveyed SME learners who engaged in e-learning stated that this learning would improve their work performance
• 1,523 SMEs received at least one follow up Training Partner visit
• 1,132 engagements with partner organisations were undertaken
• Training Partners assisted in the delivery of over 150 Business Learning Accounts
• 87 per cent of SMEs rated the service to be valuable or very valuable.

5.17 SUfI's internal review refers to the independent research conducted by Progressive Partnership, which concluded 'The experience of those who have used the Training Partner service appears to be universally positive. They see clear value in the work completed by the Training Partners, driven to a large degree by the bespoke and tailored approach taken.' This clearly identifies the Training Partner service as a key component of learndirect scotland for business' offering, which was confirmed by the other data-gathering strands of the study.

5.18 The internal review ( SUfI, 2005) concluded that:

• each Training Partner spent almost 50 per cent of their time undertaking research and performing administrative tasks. With additional central support, the geographic Training Partners can increase client engagement activity by 33 per cent
• with the introduction of enhanced materials and review cycles, the Training Partner will now be better equipped to monitor client progress and measure learning outcomes, linking this directly to improved business performance
• it could be argued that we are limited only by the finite resource available to us and that we could scale up our activity (and the resultant impact in terms of economic growth) by introducing further Training Partners
• the research projects conducted by Progressive for learndirect scotland for business have resulted in the emergence of a number of consistent themes. One of these is the importance and value placed on the Training Partner service amongst those who have experienced it, and the positive attitudes to the concept amongst those who were unaware of the existence of this service
• there is a clear need for a service such as that provided by Training Partners, highlighted in the mostly ad-hoc approach taken by many SMEs towards identification of training needs, and fulfilment of these. In addition, the lack of a specific training manager in many of the smaller companies means that any form of support in this area is welcome
• the one major factor holding back the development of the Training Partner service is lack of awareness, not just of this service specifically, but of learndirect scotland for business in general. This is in part due to resource limits preventing widespread promotion of the Training Partner service, but is also partly due to the fact that much of the awareness about learndirect scotland for business that does exist is being driven by the core learndirect scotland brand, which can cause confusion.'

5.19 The Training Partner service is clearly successful, effective and well-regarded by those using the service. The potential for doing even more, through the expansion and further roll-out of the service, was recognised in SUfI's internal report. At the same time, however, the resource-intensity of the service was acknowledged as a constraint on its immediate extension. Recommendations were made for reducing the research and administrative responsibilities of the Training Partners, in order that they could increase their employer contact time, and thus their effectiveness. This has now been implemented.

5.20 A fundamental issue which was identified in the report was the lack of awareness of the Training Partner service among employers, and particularly SMEs. In seeking to rectify this, however, care needs to be taken to avoid creating a demand which may be well in excess of the capacity of the current cadres of Training Partners to satisfy. Furthermore, as discussed earlier, increasing the capacity of the Training Partner service is not necessarily straightforward.

TELEPHONE SURVEY OF 200 SMEs

5.21 In order to learn more about the perceptions, attitudes and experiences of employers in relation to learndirect scotland for business, a survey of 200 SMEs was conducted (by FMR Research) as part of the SQW study.

Profile of SME respondents

5.22 Respondents were asked to indicate how many people were employed by their company. As Figure 5.1 shows, a significant proportion (28per cent) of the 200 SMEs in the survey were micro-companies employing fewer than 5 people, and over half of the companies who took part in the survey employed fewer than 10 staff. This is in line with the twice-yearly studies carried out since 2002, which consistently report that the size of companies calling the national advice line is skewed towards the lower end of the scale.

Figure 5.1 Survey response by company size

Source: SQW/ FMR 2006

5.23 In terms of the distribution of the sample by industrial sector (Figure 5.2), Health and Social Work and Other Community, Social and Personal Service Activities were significantly over-represented in the sample. Indeed, the prevalence of service industries is striking, especially given the acknowledged skills and training needs of firms in manufacturing. This certainly suggests that a concentrated effort is required to increase the penetration of learndirect scotland for business among firms in those sectors where current representation is low.

Figure 5.2 Survey response by Standard Industrial Classification

5.24 The respondents to the survey were invariably senior managers or owners of the companies concerned.

Motivation for calling learndirect scotland for business

5.25 When asked about their motivation for calling learndirect scotland for business, the most frequently cited reasons were 'to request further information' (mentioned by 52per cent of respondents) and 'to enquire about a general field of learning' (mentioned by half the respondents). It should be noted that respondents were allowed to give more than one response. Thirty five per cent had a specific course for which they required further information. Almost a fifth were seeking information or advice on funding options, and18 per cent were enquiring generally about the training options which may be appropriate for their organisation.

5.26 These findings are interesting, because they indicate that there is a considerable degree of need for the input of Training Partners in working alongside employers to identify needs and discuss appropriate means of addressing them.

5.27 Certainly, this type of input may be greater than that which is anticipated by the majority of callers to the service. As Table 5.1 highlights, the majority of callers initially envisaged a relatively low key input from the service, involving the provision of information on courses and funding rather than provision of support.

Table 5.1: Perceptions of learndirect scotland for business role prior to contacting helpline

Base: 200 (multiple response allowed)
Source: SQW/ FMR 2006

Outcome of call to learndirect scotland for business

5.28 In terms of the impact of the contact which was instigated with learndirect scotland for business, the survey findings reveal a substantial amount of activity having taken place in the wake of the contacts. Sixty per cent of respondents stated that they had received written information in the post following their call to the business helpline. The second most frequently mentioned response was that of having received a visit from a Training Partner, which was the case over a fifth (22per cent) of the sample. Given that it could be expected that many of the queries and contacts could be satisfied without recourse to a visit from a Training Partner, this represents a considerable degree of in-depth input from the service. It may also point to a very large potential demand for this type of service, with the opportunity to generate significant longer-term impact on employers' attitudes to training and staff development.

5.29 Fifteen per cent of the sample claimed that as well as being visited by a Training Partner they had received a report from them. At the time of the interview, a much smaller proportion (7.5per cent of the sample) had acted upon the advice received from the Training Partner.

5.30 Thirty respondents (15 per cent of the sample) stated that nothing had happened since their contact with learndirect scotland for business. While this is a significant minority, it is likely that a substantial proportion of these respondents had gained what they required from the service without need for further input - for example, through being referred to appropriate training providers at the time of the initial call. It is also the case that the interview may have taken place relatively soon after their contact with learndirect scotland for business, and therefore there may not have been time for agreed actions to have been instigated.

5.31 Overall, it can be concluded that the results of the survey point to there being a more than satisfactory level of post-contact activity emanating from employers calling learndirect scotland for business.

Training Partner Service

5.32 Of the total of 44 respondents who had received a visit from a Training Partner since calling learndirect scotland for business, 37 went on to report that the TP service had had a positive impact upon their business. This is an impressive figure, and again suggests that, where awareness can be generated, there is enormous potential for Training Partners to influence employers' attitudes to, and subsequent participation in, training.

5.33 Furthermore, it became apparent from other responses to the survey that many of those who initially reported 'no impact' had in fact benefited in various ways from the TP service, e.g:

• 'Has motivated staff'
• 'Helped to show me how to find staff.'

5.34 Also, as stated earlier, an absence of activity does not necessarily reflect a lack of intention or motivation to instigate some activity in the future:

• 'Didn't follow it up with further courses - not through fault of learndirect scotland for business'
• 'Didn't go ahead with it, staff were going through in house training'
• 'Have not yet acted on advice, also looked at other options.'

5.35 Table 5.2 presents the responses to a specific question about the impact of the Training Partner service. While it may appear that relatively modest proportions of the sample were able to report identifiable impact emanating from their contact with a Training Partner, it should be emphasised that as far as many of the types of change are concerned - such as attitudinal shifts, enhanced morale, and productivity gains - these are often gradual changes which can only be positively identified after a lengthy period has elapsed. Indeed, it is significant that the most frequently mentioned impact, that of an improvement in the skill levels of employees, is perhaps one of the most readily measurable changes which can be expected to emerge as a direct and immediate result of training activity.

Table 5.2: Impact of Training Partner Service

Base: 200
Multiple responses allowed
Source: SQW/ FMR 2006

5.36 Among the comments from respondents who expanded upon their answer were:

• 'Gave us information on what we need for the future'
• 'Helped to show me how to find staff'
• 'Lady who came out was excellent. I can now use computer to benefit business'
• 'Made it easier to get into and to add further skills to staff'
• 'Range of courses very good and have taken up some'
• 'Some staff were able to get funding through ILAs'
• 'Staff did not take up opportunities'.

Training undertaken since calling learndirect scotland for business

5.37 A total of 99 SMEs reported that employees within their organisation had undertaken training in the period since they first called the training advice line. Of these, 41 said that this was 'wholly' as a result of information or advice provided by learndirect scotland for business, and a further 22 said that it was 'partly' as a result of this.

5.38 To gain an impression of additionality, these respondents were asked whether this training would have happened anyway, even if they had not called the national advice line. Of these 99 respondents, 69 per cent said that the training was 'very likely' or 'likely' to have happened anyway, and 9 per cent were unsure. Absolute additionality, therefore, is limited to around 21 per cent.

5.39 However, several respondents expanded upon their answer by pointing out that it would have taken them longer to find the information that they needed, or that it would have been more expensive. The fact that some of the training activity would have taken place at some time, even without the involvement of learndirect scotland for business, should not be interpreted as an indication that it is not in these circumstances performing a useful service. By speeding up the process or making it more cost-effective to employers, learndirect scotland for business is essentially contributing to greater productivity, profitability and efficiency among employers. This in itself is a justifiable aim of SUfI, which is thereby providing value for money. It can be concluded, therefore, that additionality at a more general level may be considerably higher than 21 per cent.

BENEFITS ARISING FROM CONTACT WITH LEARNDIRECT SCOTLAND FOR BUSINESS

5.40 SME respondents were invited to identify what benefits, if any, had arisen for them or their employees as a result of learndirect scotland for business intervention. A range of tangible and less tangible benefits were discussed.

5.41 Table 5.3, below, represents an attempt to quantify some the tangible benefits accruing to SME employees as a result of learndirect scotland for business. Respondents were able to select more than one answer.

Table 5.3: Which of the following benefits has your firm seen since calling learndirect scotland for business, and to what extent can they be attributed to the intervention? (Tangible or 'hard' benefits)

Base: 200
Source: SQW/ FMR 2006

5.42 As can be clearly seen, the financial benefits accruing to individual SME employees as a direct result of learndirect scotland for business are limited. Of the 19 respondents who reported that they or their employees had received a pay rise, only one felt that this could be attributed in any way to learndirect scotland for business. Furthermore, the number reporting receipt of a financial bonus is too small to be statistically significant.

5.43 By contrast, tangible benefits in the form of the acquisition of skills and qualifications can be much more clearly seen. Of the 65 SMEs who reported increases in existing skills, more than three quarters (78 per cent) said that this was directly attributable to learndirect scotland for business. That is, 26 per cent of the entire survey sample reported not only that existing skills had improved, but that this was directly attributable to the support.

5.44 The fact that a high proportion of SME employees had gained new skills was also apparent. Taken together, these findings lend weight to the argument that once SMEs become aware of learndirect scotland for business, substantial and measurable benefits can accrue, with a significant impact being made on workforce skills.

5.45 As discussed earlier in relation to the responses and experiences of individuals who called, difficulties arise when attempting to quantify less tangible or 'softer' benefits, largely because of the subjective nature of the assessments made. Table 5.4, below, summarises some of the 'softer' benefits arising. Again, respondents were able to select more than one answer.

Table 5.4: Benefits derived since calling learndirect scotland for business and attribution

Base: 200 (multiple response allowed)
Source: SQW/ FMR 2006

5.46 Notwithstanding the aforementioned issues relating to measuring 'soft' benefits, these responses provide powerful evidence of the positive impact of learndirect scotland for business. A quarter of the whole sample asserted that, following the contact made, they or their employees felt more confident generally, and happier at work.

5.47 There was also a contention on the part of one fifth of the sample that as a result of the intervention they had developed higher expectations or aspirations in life. One of the critical limitations of surveys or evaluations which seek to identify the impact of measures whose objectives are to effect longer-term attitudinal and cultural change is the timescale over which such processes of change need to be tracked. That such change can be identified in the relatively short period since the intervention occurred suggests that, over time, learndirect scotland for business has immense potential to inculcate a greater attachment to learning and training in companies in Scotland.

5.48 At the same time, the results offer exciting evidence of the possibility of measuring such change over shorter periods than had appeared likely. This presents a great opportunity for initiating studies of the impact on individual companies. The product of such research could be compelling case studies, which can be used to persuade sceptical employers of the benefits, both 'hard' and 'soft', of investing in the training and development of their employees.

Satisfaction with learndirect scotland for business service

5.49 As well as seeking indications of the impact of employers' contact with learndirect scotland for business, the survey attempted to gain an impression of SMEs' satisfaction with the general level of service provided. Figure 5.3 illustrates the distribution of the responses.

Figure 5.3 To what extent did the service you received from learndirect scotland for business meet your expectations

Source: SQW/ FMR 2006
Base: 200

5.50 Overall, 64 per cent of respondents said that the service provided by learndirect scotland for business either met or exceeded their expectations. This is lower than the findings from the wider evaluation carried out by Progressive Partnership, 2005, which reported to SUfI in December. The elapsed time between the service provision and the survey may have some bearing on this, as the perceptions of SMEs who phoned the helpline very recently may vary from those who called over a year ago. Nonetheless, this still represents a high degree of satisfaction with the service.

5.51 In line with the wider evaluation, perceptions of the quality of learndirect scotland for business service were more favourable amongst those who had received the Training Partner service: 16 out of 44 of those who received a visit from a Training Partner said that the service exceeded their expectations. Amongst those who had gone a stage further - acting on the advice given by the Training Partner - 40 per cent reported that the service had exceeded their expectations.

5.52 In commenting on the benefits deriving from their contact with learndirect scotland for business, those aspects which were prominent were:

• the facilitation role - ' Facilitation is an important element - we would have got there without learndirect scotland for business, but it would have taken us a lot longer.'
• the efficiency of the service provided - 'Got a speedy response from learndirect scotland for business, top notch service!'
• the support provided - 'If [learndirect scotland for business] hadn't been there, there would be no motivation'
• the helpfulness of the staff - 'learndirect scotland for business were delightful to work with. Some staff have gone on to do further advantageous things. learndirect scotland for business very supportive. Most changes are due to courses & help from learndirect scotland for business.'
• the information provided - 'Information from learndirect scotland for business courses 100 per cent responsible [for benefits gained].'

5.53 It is apparent from the comments that once employers can be persuaded to make the initial contact, the responsiveness of the staff - in particular, the input from the Training Partners - makes a highly favourable impression. This is a real strength, which can form the basis of a concerted effort to attract more SMEs to engage with the service.

SME FOCUS GROUP

5.54 Although the small number of SME representatives who attended the breakfast focus group did not encompass the range of sectors which might have been hoped for, they were able to offer different perspectives and provided some very useful insight into SMEs' engagement with learndirect scotland for business.

5.55 The key findings emanating from the focus group are described below.

Awareness of learndirect scotland for business services

5.56 General awareness of the service was high, as might be expected from SMEs that had already engaged with learndirect scotland for business, but how it could specifically help SMEs was less clear. The question arose: how can business benefits be demonstrated to enhance the message delivered, highlighting that training is an investment not a cost? It was also highlighted that it is hard to keep track of the range of services and initiatives on offer ('quite confusing'). Television and press advertisements maintain strong general awareness.

Service visibility

5.57 Once engaged with learndirect scotland for business, the potential benefits of its offering were readily apparent. However, initially it was difficult to identify what the benefits might be, thus highlighting a barrier to engagement with the service. There was acknowledgement of the difficulty of selling lots of different messages at the same time and it was felt that perhaps the message is skewed towards SMEs which are in the business planning phase.

Service experience

5.58 In some cases learndirect scotland for business was used as a referral point to seek general information on the different initiatives, whilst others had a specific interest or question in mind. Contact with learndirect scotland for business was viewed as a long-term relationship. External training was considered more credible than internal courses, highlighting to employees that they are valued within the organisation.

Individual Learning Accounts Scotland

5.59 ILAs are not targeted at business employees, but at individuals, although they could be used by low-paid employees acting on their own cognisance. Awareness of ILAs is high, but some barriers in take-up were cited. It was suggested that individuals tend not to make use of ILAs as they have to spend time registering and completing all the paperwork: a suggestion was made that perhaps this could be done collectively, in businesses, through Training Partners, but this would be contrary to the ILA Scotland scheme rules. It was also suggested that people might think there is a catch in applying for an ILA. It was perceived to be about changing the mentality, so that training is regarded as an investment and not as a cost. The point was made that training is particularly important for those who have been out of education for a long time, as it gently helps them to get back into learning.

5.60 The following suggestions for service improvements were made:

• Training Partners could be allocated responsibility for specific Sector Skills Councils
• there is a need for more financial assistance for SMEs, and Training Partners could have a role to play in lobbying the case for SMEs
• there is a real need to target those individuals within SMEs who lack numeracy and literacy skills - perhaps by linking with guidance and support mechanisms. Under current arrangements, this would be a role for SUfI in partnership with Communities Scotland.
• a clear demand for networking opportunities and maybe a forum to exchange ideas would also help to spread the word about learndirect scotland forbusiness
• it was considered vital that Training Partners take the initiative by visiting SMEs to stay in touch, rather than SMEs instigating the contact, in order to sustain an effective long-term relationship. This would require more staff resource.

5.61 The feedback from such a small focus group cannot be regarded as representative of all SMEs. Nevertheless, some of the group's suggestions are in line with the way in which SUfI is moving (such as interaction between Training Partners and the Sector Skills Councils), and can be taken as validation of SUfI's approach.

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