SEMLEP Arts, Heritage, Sports, Visitor Economy, Cultural and

Research Study
SEMLEP Arts, Heritage, Sports,
Visitor Economy, Cultural and Creative Sector.
Prepared by:
FireDog Research
www.firedogresearch.com
JULY 2015
Draft Final Version
Contents
1
Introduction.............................................................................................................................................1
2
Methodology...........................................................................................................................................1
3
Arts, Heritage, Sports, Visitor Economy, Cultural and Creative industries.................................................2
4
Workforce and diversity...........................................................................................................................3
4.1
National picture.......................................................................................................................................3
4.2
South East Midlands Businesses and Jobs.............................................................................................3
4.3
Workforce Diversity..................................................................................................................................4
4.4
Jobs........................................................................................................................................................5
5
Education and skills development............................................................................................................6
5.1
Information, Advice and Guidance...........................................................................................................6
5.1.1
Business and education..........................................................................................................................7
5.2
Educational Provision..............................................................................................................................8
5.2.1
FE and HE...............................................................................................................................................8
5.2.2 Apprenticeships.......................................................................................................................................9
5.3
Training and development........................................................................................................................9
6
Business challenges..............................................................................................................................10
6.1
Recruitment...........................................................................................................................................10
6.2
Retention...............................................................................................................................................11
6.3
Growth..................................................................................................................................................11
6.4
Access to finance..................................................................................................................................12
6.5
Business planning.................................................................................................................................12
7
Recommendations................................................................................................................................13
7.1
Information, Advice and Guidance led by employers..............................................................................13
7.2
Sector networks....................................................................................................................................13
7.3
Sector Specific Job Board.....................................................................................................................14
7.4
Funding/Finance Support......................................................................................................................14
7.5
Skills to Grow........................................................................................................................................14
8
Glossary of the industries......................................................................................................................15
9
Bibliography..........................................................................................................................................16
1Introduction
2Methodology
The South East Midlands is a functional economic
area, consisting of 11 local authorities. These are
Aylesbury Vale, Bedford, Central Bedfordshire,
Cherwell, Corby, Daventry, Kettering, Luton, Milton
Keynes, Northampton and South Northamptonshire.
In developing this report, a combination of methods
to collect the evidence required to understand the
skills needs were used. We combined data analysis,
literature review, 40 interviews with employers and
an online employer survey to provide a detailed
analysis. Interim findings were presented to the
SEMLEP Cultural and Creative Industries group, which
stimulated further discussions and insight. This report
concludes with a number of recommendations to
support continued growth in the sector.
South East Midlands Local Enterprise Partnership
(SEMLEP) is an economic development partnership led
by the private sector with the aim of enabling growth.
SEMLEP’s Strategic Economic Plan, published in
2014, set out strategic objectives for the future. These
focused on delivering jobs and growth by providing
the enabling infrastructure to encourage new business
start-ups, helping existing businesses to grow and
stimulate inward investment.
Four key sectors with the greatest potential for growth
were identified. One of these is the Arts, Heritage,
Sports, Visitor Economy, Cultural and Creative Sector
(AHSVEC&C). In 2014 a Strategic Plan for this sector
was published.
The high level objectives outlined in this strategy for the
sector were:
1. To identify and quantify the direct and indirect
economic benefits of the industries to the South
East Midlands area
2. To assess the qualitative impact of the industries
on decisions by people and businesses to locate in
this area via Business Survey and other research.
3. To join up businesses, local authorities and
representative organisations with an interest in the
industries to enable them to operate collaboratively
across the area to increase the economic potential.
4. To work closely with national organisations such
as Arts Council England, Sport England and
VisitEngland to identify funding opportunities
(including European Funding) in this area to support
business ambition, training and growth.
The following report aims to improve the evidence base
of the skills needs within the Arts, Heritage, Sports,
Visitor Economy, Cultural and Creative Sector.
1
3 Arts, Heritage, Sports, Visitor Economy,
Cultural and Creative industries
The Cultural and Creative sector is made up of
‘those industries which have their origin in individual
creativity, skill and talent and which have a potential
for wealth and job creation through the generation and
exploitation of intellectual property’ (DCMS, 2011).
This broad grouping means that the sector represents
a diverse mix of nine industries which play a crucial
role in supporting both local and national economies
(DCMS, 2015).
The South East Midland Local Enterprise Partnership
(SEMLEP) incorporates four additional industries food & beverage service, accommodation, sports
and amusement & recreation activities - to define
the Arts, Heritage, Sports, Visitor Economy, Cultural
and Creative (AHSVEC&C) sector. Together the 13
industries that comprise the sector make the country
an attractive place to do business, visit, study and live
(SEMLEP, 2015).
SEMLEPs rationale for focusing on all these industries
together is because they represent a collective offer
to the economy. For example, the Arts, Heritage
and sports industries make a vital contribution to the
Visitor Economy as well as providing a platform for
the creative sector to grow and collaborate with these
sectors.
“The Digital and Creative Industries have the
potential to drive significant growth in the UK.
Their exports are third only to advanced
engineering and planning and financial services”
Department for Business, Innovation and Skills
(BIS) and HM Treasury, The Plan for Growth 2011
The sector:
Advertising and Marketing
Architecture
Crafts
Design: product, graphic and fashion design
Film, TV, video, radio and photography
Digital
Publishing
Museums, galleries and libraries
Music, performing and visual arts
Sports
Accommodation
Food and Drink
Amusement and recreation activities
Building on a strong base, the sector is considered
to be in an excellent position to grow (CIC, 2014).
However the increasingly competitive marketplace
means that the current position cannot be taken for
granted. Action is required to ensure that the next
generation of talent is inspired and equipped and that
creative businesses receive help to start-up and grow
(The Univeristy of Warwick, 2015).
2
4 Workforce and Diversity
4.1National Picture
• Northampton employs one third of those within
museums, galleries and libraries.
In 2013 (the most recent figures available), there were
over 3.3 million people employed in the sector, across
England, accounting for 13% of total employment
(ONS, 2014). Employment in the sector has increased
7% since 2009. The top 3 industries, in terms of
employees in 2013 were Food and Drink (39%), Digital
(16%) and Accommodation (10%).
• Milton Keynes is a key employment location for
music, performing and visual arts and publishing
industries.
Employment levels have increased to 6% since 2009 this is twice the rate of the wider South East Midlands
economy (ONS, 2014).
4.2South East Midlands Businesses and Jobs
South East Midlands is home to 13,000 AHSVEC&C
enterprises, with over 90,000 people working across
the sector – accounting for 11% of jobs in the area
(ONS, 2014).
Greatest employment growth has been across the
accommodation industry, which saw a 26% growth in
employment levels, digital (22%) as well as amusement
and recreational activities (22%) (ONS, 2014).
• Food and beverage service (40,000), Digital
(19,700) and Sports (10,300) industries employ the
greatest number of people.
These higher levels of growth experienced in the
previous decade shows the resilience of businesses
to the economic downturn, but also that the skills and
abilities used in these roles are at the forefront of the
UK’s and SEMLEP’s economy.
• Milton Keynes (7,800), Northampton (2,000) and
Central Bedfordshire (1,900) have the greatest
number of people employed in the digital industry.
• Nearly half (48%) of all advertising and marketing
employment is within Aylesbury Vale, suggesting a
strong business cluster in this area.
Figure 1 Employment by industry, South East Midlands
Food
Food &
Drink
Food
&& Drink
Drink
36,000
36,000
36,000
Digital
Digital
Digital
19,700
19,700
19,700
Sport
Sport
Sport
10,300
10,300
10,300
Amusement
Activities
Amusement &
Recreation Activities
Amusement
& Recreation
Recreation
Activities
6,900
6,9006,900
Accommodation
Accommodation
Accommodation
6,800
6,8006,800
Advertising
& Marketing
Marketing
Advertising &
Advertising
Marketing
3,300
3,3003,300
Publishing
Publishing
Publishing
1,900
1,9001,900
Film,
Photography
Film,
TV,
Radio,
Photography
Film, TV,
TV, Radio,
Radio, Photography
1,900
1,9001,900
Museums,
libraries
Museums,
galleries,
libraries
Museums, galleries,
galleries, libraries
1,500
1,5001,500
Music,
visual
arts
Music,
performing
& visual
visualarts
arts
Music, performing
performing &&
1,500
1,5001,500
Architecture
Architecture
Architecture
1,200
1,2001,200
Design
Design
Design
900
900 900
Crafts
Crafts
Crafts
<100
<100 <100
Source: ONS, Business Register Employment Survey 2013
0
0
10,000
10,000
20,000
20,000
30,000
30,000
40,000
40,000
3
4.3Workforce Diversity
Whilst the data at local level does not allow for industry
analysis, national data does reveal some striking
difference in workforce diversity:
% of workforce
With degree
or equivalent
qualification
%
Workforce Male
Advertising and marketing
63
58
42
10
Architecture
74
73
27
6
*
38
62
13
Design: product, graphic and fashion design
43
57
43
10
Film, TV, video, radio and photography
54
65
35
9
Digital
65
80
20
17
Museums, galleries and libraries
57
39
61
8
Music, performing and visual arts
61
49
51
6
Publishing
58
46
54
8
Sports, Amusement and Recreation
27
46
54
5
Food and Beverages
16
47
53
19
Accommodation
21
44
56
11
UK Economy
32
53
54
11
Crafts
%
Female
%
BAME
Source (DCMS, 2015) (Galbraith & Bankhead, 2012)
There are variations in the gender balance of
employment by occupation within industries:
• In the sport industry occupational areas of yoga,
pilates, keep fit teachers and group exercise
instructors are female dominated, while the
male workforce has stronger representation in
management roles.
• In accommodation, housekeepers are
predominately female, while hotel porters are male.
• In the food and beverage industry, four in five chefs
are male, with waitress accounting for nearly three
quarters of serving staff.
The sector attracts a highly skilled workforce due
to the professional and technical skills required for
most of the occupations within the sector. But there
are some marked differences in the industries. For
example, within the foods and beverages industry over
half (52%) work in elementary occupations and across
accommodation the figure is 37%. While within the
digital sector 29% are managers and a further 47%
are professional occupations, such as programmers
and software development professionals and web
designers (ONS, 2013).
• In design, graphic designers are mainly males,
while two in five product and clothing designers
are female.
4
4.4Jobs
Key occupations in each of the industries are
highlighted below:
Industry
Occupation
Advertising and marketing
Marketing and sales directors
Advertising and public relations directors
Public relations professionals
Advertising accounts managers and creative directors
Marketing associate professionals
Architecture
Architects
Town planning officers
Chartered architectural technologists
Architectural and town planning technicians
Crafts
Weavers and knitters
Glass and ceramics makers, decorators and finishers
Furniture makers and other craft woodworkers
Design: product, graphic and fashion design
Graphic designers
Product, clothing and related designers
Film, TV, video, radio and photography
Arts officers, producers and directors
Photographers, audio-visual and broadcasting equipment operators
IT, software and computer services
Information technology and telecommunications directors
IT business analysts, architects and systems designers
Programmers and software development professionals
Web design and development professionals
Publishing
Journalists, newspaper and periodical editors
Authors, writers and translators
Museums, galleries and libraries
Librarians
Archivists and curators
Music, performing and visual arts
Artists
Actors, entertainers and presenters
Dancers and choreographers
Musicians
Sports, Amusement and Recreation
Sports coaches, instructors and officials
Fitness instructors
Sports and leisure assistants
Leisure and theme park attendants
Food and Beverages
Chefs & Cooks
Catering and bar managers
Accommodation
Hotel manager
Caravan Park owner
5
5 Education and Skills Development
Education and skills, along with talent development,
are crucial factors if the sector is to establish a more
diverse and representative sector, which evidence
shows can have a significant link to enhanced
innovation and growth.
Therefore it is imperative to the growth of the sector
that there is a comprehensive system of talent
development, skills training, apprenticeships and
careers advice that supports entry and progression
within the industries.
There are concerns however that the educational
system is not focusing on the future needs of
the sector. The Warwick Commission, Enriching
Britain: Culture, Creativity and Growth, reports that
there is a general agreement within the sector that
the Government’s focus on Science, Technology,
Engineering and Maths (STEM) should include the Arts
(STEAM). But there should not necessarily be a silo
subject-based curriculum and early specialisation in
Arts or Science. The sector needs creative scientists
as well as artists who understand the property of
materials and the affordances of new technology (The
Univeristy of Warwick, 2015). However, only 8.4% of
students combined Arts and Science disciplines in their
AS / A levels in 2012-13 (Sutch, 2014).
Nationally there has been a decline in the numbers
of ‘A’ levels for many cultural and creative subjects.
Design and Technology has experienced a 34%
decline between 2007 and 2014, Media/Film/Television
Studies has seen a 16% decline and Drama has fallen
by 21%. Art and Design conversely has seen a slight
increase (7%) (DfE, 2015).
But the supply of future talent starts even earlier than
‘AS /A’ levels. Nationally GCSE trends reveal a decline
of 35% in Design and Technology subjects and 24%
in Drama between 2007 and 2014 (DfE, 2015). This
links with the decline in the number of state schools
offering such subjects taught by specialist teachers.
For example since 2010 the number of Design and
Technology teachers in schools has fallen by 11%
(DfE, 2014).
If individuals are not considering or offered such
subjects at a young age, it will inevitably have an
impact on their future career aspirations and in turn
the supply of talent in the future. There are already
concerns that the career aspirations of young people
do not match the demands of the future labour market
(Mann, et al., 2013).
5.1Information, Advice and Guidance
Employers and stakeholders felt that more information
needs to be given at schools to advise students of the
career options available in the sector.
Knowledge of what the labour market looks like and
how it operates has escaped many young people.
Young people’s aspirations do not necessarily reflect
the local labour market. A report published by the
Education and Employers Taskforce showcases this
mismatch between career expectation and the reality
of jobs available (Mann, et al., 2013).
Large numbers will be aiming for jobs that are in short
supply (Mann, et al., 2013). For instance, there are ten
times as many people aiming for jobs in the culture,
media and sports sector than there are jobs likely to be
available. Whilst in the hotel and restaurant category,
where almost a quarter of jobs exist, only about one
in forty youngsters are considering careers (Mann, et
al., 2013). This misalignment could mean long-term
problems for young people, because they are making
decisions about qualifications and subjects with little
awareness of the jobs market ahead of them.
Professional careers advice can be beneficial if it is
high-quality (Hooley, et al., 2011), however young
people do not get enough. Responsibility for face-toface careers advice in England shifted to schools in
2012 but there are concerns that they are not able
to provide the advice and guidance to the necessary
quality or with sufficient impartiality (ACEVO, 2012).
This was echoed by the SEMLEP Cultural and Creative
Group meeting held in July 2015.
Ofsted (2010) found that ‘in all the authorities visited,
inspectors found examples of carers, residential
staff, teachers and tutors who were providing advice
and guidance to young people but who had too little
knowledge and understanding of the full range of
options to do this effectively’.
Many young people rely on their family for information
and advice about careers. This intergenerational
careers advice is not without challenge. Art and design
courses can lead to fulfilling careers but the perception
of parents has not necessarily evolved in-line with
changes. There is a need to change the perception of
parents as well as young people.
6
5.1.1
Business and Education
Achieving a greater focus on work awareness among
young people at school depends on a high level
of business involvement. Schools, colleges and
businesses need to work together as partners with the
shared aim of raising ambition and levels of attainment
for all. By providing work experience and becoming
involved in other ways, employers can spell out the
value of the skills and knowledge developed at school
and open pupils’ eyes to career opportunities.
Businesswillbenefitthroughtheopportunitiesof
findingnewtalent,recruitingapprenticesandthe
opportunitytoupskillstaff.Thoseemployerswespoke
to who have undertaken schools engagement reported
findingindividualswhoarehighlyengaged,with
positive attitudes that make for great recruits – either
asapprenticesortofillsummervacancies.
However,fewfirmsinsectorwithinSouthEast
Midlands area we spoke to engage with schools,
colleges and universities. Connections are greatest
with schools. 36% of those interviewed engage with
schools, but this proportion declines with colleges and
universities where only 27% and 25% of businesses
had engagement. This is substantially lower than the
CBIGatewaytoGrowthfindings,inwhicheightinten
businesses had links with at least one school or college
(CBI, 2014).
This indicates that there is a strong case for
strengthening and expanding the scale of links
between businesses in the sector and educational
establishments.
CASE STuDY - Connecting industry and Education
The Creative Skillset Tick is a quality mark. It connects creative
courses and institutions with industry, which ultimately equips
their students with the understanding of what it really means to
embark on a creative career.
It is awarded by industry professionals to those degree courses
that provide the best preparation for a career in the Creative Industries.
Onlycoursesandapprenticeshipsthathavethestrongestlinkswithindustryreceivethe
Tick. It ensures that the courses keep up with the rapid pace of creative change, and
studentsbenefitfromusingthelatesttechnologiesandworkingwithindustrythroughout
their studies.
The Tick is an invaluable tool for employers as well as potential students and apprentices,
highlightingtheHEcoursesandapprenticeshipsofferingthehighestlevelofteachingand
facilities and with the greatest links with industry. It is those industry partnerships, mixed
with dedicated and innovative tutors and course leaders that are so key in supporting the
next generation of work-ready, talented creative industries professionals who have the
skills and creativity that industry is looking for.
While none of SEMLEPs universities have ‘Tick’ courses, the National Film and Television
School(NFTS),locatedinBeaconsfield,BuckinghamshirehasanumberofTick
postgraduate courses.
7
5.2Educational Provision
5.2.1 FE and HE
Tresham
X
X
X
X
X
X
X
X
X
X
XG
XG
G
XG
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
G
Design: product, graphic and fashion design
X
Film, TV, video, radio and photography
Digital
Luton
Milton
Keynes
G
G
Moulton
X
Central Beds
G
Bedford
XG
Barnfield
Advertising and marketing
Banbury and
Bicester
G = generic business course that contains
marketing and/or advertising
Aylesbury
Table 1 FE Provision by industries
Northampton
It is the pathways by which young people can directly
engage and interact with the role they wish to enter
that are seen to be of value by employers. Having the
theoretical knowledge is not sufficient; employers seek
recruits who can demonstrate practical ability.
The Further and Higher Education establishments
in the South East Midlands area offer a range of
education and skills development programmes which
support the Cultural and Creative Sector
(see table 1 & 2).
Architecture
Crafts
X
X
Publishing
X
Music, performing and visual arts
X
X
X
X
X
X
Food and Drink
X
X
X
X
X
Sports
X
X
X
X
X
Amusement and Recreation
Accommodation
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
University of
Buckingham
University of
Northampton
Buckinghamshire
New University
X
Architecture
University of
Bedfordshire
X
The Open
University
Cranfield
Table 2 HE Provision by industries
Advertising and marketing
X
X
X
X
X
Crafts
X
X
Design: product, graphic and fashion design
X
Film, TV, video, radio and photography
Digital
X
Publishing
Museums, galleries and libraries
X
Music, performing and visual arts
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
Food and Drink
X
X
X
X
X
Sports
X
X
X
X
X
X
X
X
Amusement and Recreation
Accommodation
X
X
University
Campus MK
Museums, galleries and libraries
X
X
X
X
X
X
X
X
X
X
X
8
5.2.2Apprenticeships
Apprenticeships would be once such pathway.
Firms we spoke to professed their support for them,
yet they then revealed that their company did not have
any or as many as they would want. When pressed
about the reasons behind this, many reported that
as a SME the ‘hassle factor’ is simply too great. They
reported that they’d rather employ a young person and
train them on-the-job rather than undertake a formal
apprenticeship, believing that formal apprenticeships
meant unwanted additional bureaucracy.
Those employers in the research which did have
apprentices tended to be from the advertising and
marketing industry and digital / IT sector.
This indicates that apprenticeships may not be suitable
for all the industries within the sector. For example,
those industries which are generally project based may
not have worked long enough to sustain an apprentice
for the minimum time.
This is reflected in apprenticeship starts. Nationally less
than 1% of all starts are in Arts, Media and Publishing
(1,410), 3% are in Leisure, Travel and Tourism (11,350),
and 3% in ICT (13,060). While 29% of all starts are
Business and Administration frameworks (125,900)
(SFA & BIS, 2015).
Employers need help around how to be better
prepared to support and commit to recruiting a trainee
or apprenticeship. How to mentor individuals on such
programmes is key to ensuring that apprenticeship
experience, retention rate and outcomes are optimal.
5.3Training and development
The continued need to keep pace with technology and
other innovations in the drive to remain competitive,
whilst at the same time meeting consumers’
expectations is a challenge for the sector (Williams, et
al., 2012).
Firms will need to invest in the quality of consumers
experience, take advantage of technological change
and exploit the synergies between digital technology
and creative content. But at the same time business
will need to protect their copy right and intellectual
property rights. To do this the workforce needs to
adapt but also develop.
Employer provided training not only contributes
to the supply of skills in the labour market, but is
often undertaken as a response to skills gaps and
mismatches in the workforce as well as upskilling.
Training is strongly linked to firm survival, job
satisfaction and staff retention (Garrett, et al., 2010).
The sector is investing in its workforce, with two in five
firms in this research having funded or arranged training
in the previous 12 months, but this is lower than seen
across the South East Midlands economy, where three
in five train (SEMLEP Business Survey 2014).
The most common reasons employers, we spoke to,
gave for not providing training is that they were small
firms and their staff are fully proficient/there is no need
for training.
Helping Individuals find training
and qualifications
SkillsActive
www.skillsactive.com
The SkillsActive Quality Training Portal (QTP) is a
one-stop-shop for essential training that has been
independently quality assured by the industry.
For those interested in a career in sport, fitness,
outdoors, playwork, hair or beauty, the QTP is
the place to look. The portal hosts Continuing
Professional Development (CPD) training and
qualifications from SkillsActive Endorsed Training
Providers. The QTP currently houses over 3,000
pieces of quality assured training, all of which
offer CPD points to members of SkillsActive’s
professional registers.
Creative & Cultural Skills
http://ccskills.org.uk/careers
Creative Choices provides online help and advice
for those seeking a creative career.
Creative Skillset
http://courses.creativeskillset.org/
A directory of over 10,000 courses relevant to
the creative industries. This ranges from short
courses, apprenticeships to degree courses.
Hospitality Guild
www.hospitalityguild.co.uk/Training-Development
Their training guide gives you an overview of
the courses and qualifications in hospitality and
tourism, while the provider guide will lead you to a
college or private training provider that can deliver
the training.
9
6 Business Challenges
The sector is growing at twice the rate of South East
Midlands economy, with rapid upturn in employment
numbers across many of the industries (ONS, 2014).
Nearly half of South East Midlands AHSVEC&C
employers involved in this project had vacancies in the
previous 12 months.
Nationally, research has shown that the digital
technology sector often favours workers with previous
business experience over younger workers straight
from education (Williams, et al., 2012), whilst the sports
and hospitality industries attract a younger workforce.
To meet demand for labour, the hospitality sector in
particular seems likely to continue to rely on migrant
workers (Galbraith & Bankhead, 2012).
6.1Recruitment
At an individual business level there can be a number
of reasons for having vacancies. These can either be
a positive indicator of growth or more negative if they
signify a loss of key personnel or high staff turnover
levels. But the key question is whether the labour
market is able to meet employer requirements.
Our research found that employers are experiencing
difficulties in filling positions. Two in five reported
they had trouble filling vacancies. The main causes
of theses recruitment difficulties are most frequently
attributed to a fact that applicants lack the skills
required, particularly technical, practical or job specific
skills and in addition, applicants lack the right attitude
or motivation.
Third sector organisations, which account for 3% of
all AHSVEC&C workplaces in the South East Midlands
face their own recruitment challenges (ONS, 2014).
Many rely on volunteers and a recurrent theme found
in this research is difficulties in recruiting them. These
firms also reported struggles recruiting fundraisers,
which echoes national findings (FSI, 2013).
The Cultural and Creative showcase group highlighted
that the recruitment and engagement methods
employed by firms can affect their experience of finding
the right individual.
Employers need to be clear about what they expect
from recruits – do they have clear job descriptions,
detailing expectations? In a digital environment, are
employers using the correct methods to advertise?
The right person will help your business flourish,
while making a wrong choice can cost you time and
money. Hiring is not just about having the people with
the technical abilities; it is about finding those who
will enable your business to succeed. Our research
validates existing literature which suggests that hiring
for attitude and values is essential, particularly in small
businesses where one person can have a significant
impact on culture (CIPD, 2014). This illustrates that
there is a skill to recruiting the right individual and firms’
will need assistance or support in this area to ensure
that they find individuals who can enable firms to grow
and succeed.
But many micro and small firms do not have dedicated
HR support specialising in recruitment activities. More
than two thirds of businesses considered access to
improved business support as important to the longterm business growth.
If current recruitment difficulties are not overcome, the
issue will only become greater in the future where the
sector is anticipated to grow further.
10
6.2Retention
With increased recruitment activities across the sector,
also comes the need for retention. High levels of
staff turnover are costly to firms. A report by Oxford
Economics reveals that replacing members of staff
incurs significant costs for employers. A major cost
implication for firms replacing staff is the lost output
a company experiences during the period of time the
new worker is getting up to speed.
On average across Media and Advertising it takes 20
weeks for a new worker to get up to speed which
has an attached cost of £25,787 per employee. This
increases to £31,808 for the IT and Technology sector
(HR Review, 2014).
In the hospitality industries (food & beverages and
accommodation) employers experience high staff
turnover. Nationally People 1st report a turnover rate
of 20%. Many of the roles are part-time (nearly half
of the workforce are employed on a part-time basis)
and those traditionally filling these roles are largely
transient. Consequently employers in the sector spend
a substantial amount of money on training due to the
sheer volume of staff that need to be trained in an ongoing cycle of replacement.
Without strong HR and people development skills,
firms are at risk of losing high quality staff. This is an
area of concern, with nine in ten employers in this
research considering it to be an important employment
issue to their business moving forwards.
6.3Growth
Predications show that the sector will grow primarily
in the skilled jobs (UKCES, 2014). The key features
expected are:
• Rising employment levels and shares for higher
level, white-collar groups (Managers, Professional,
and Associate Professional & Technical
occupations) across the arts and entertainment,
digital and accommodation and food industries
• Increasing employment levels for elementary
occupations across the accommodation and food
industry
• Decline in employment for skilled trades
Cultural and Creative anticipated
occupational growth
Managers and
Senior Officials
Sector Growth:
Industry Employment Growth
between now and 2022
3%
Media
5%
Arts & Entertainment
11%
Accommodation & Food
14%
Digital
South East Midlands
All Industries
14%
Professional Occupations
Associate Professional and
Technical Occupations
Administrative, Clerical and
Secretarial Occupations
-2%
Skilled Trades Occupations
-8%
13%
Personal Service
Occupations
Sales and Customer
Service Occupations
Transport and Machine
Operatives
20%
11%
-2%
10%
Elementary Occupations
-10%
Looking forward further growth is anticipated, but also
the sector will require resources to meet replacement
demand. Approximately 43,000 additional people will
be required between now and 2022 across the South
East Midland area.
17%
-5%
0%
5%
10%
15%
20%
Source (Working Futures V)
To fulfil this growth potential, today’s managers need
the strategic skills to plan growth. However, the
management and leadership skills of firms in the South
East Midlands area are a concern. According to our
survey with employers, nearly 7 in 10 businesses
consider management and leadership skills are
important or very important to their business going
forward. The usual journey of turning an experienced
person into a future leader or senior manager provided
a clear succession route up to senior levels. However
the uniqueness of the recent economic climate meant
that this progression stalled, resulting in strategic
management skills gaps.
5%
0%
4%
7%
11%
14%
(UKCES, 2014)
11
6.4Access to Finance
Access to finance has been identified as one of the
major challenges to future growth and maturity in the
UK creative industries (CIC, 2014) and was a similar
concern with the firms in our research across South
East Midlands.
A large proportion of the sector (84%) is made up of
small businesses (ONS, 2015). Small businesses make
a huge contribution to the economy and account for
half of the UK jobs (HM Government , 2013). Therefore
it is crucial that the business environment supports
established businesses looking to take the next step
and upscale their operations.
Businesses tend to face challenges in accessing
the finance that they need to grow. First, information
on available funding and financing options is
often fragmented and hard to navigate, but also
management teams lack experience in how to position
themselves appropriately.
Capital funding is crucial in our culture to enable us
to motivate and encourage repeat visits by changing
the design/planning of our multi - park venue. This is
how we ultimately sustained our business. We have
many other areas within the buildings and land we
could develop in the future but find it very hard to
secure capital funding to plan ahead in line with
the changing trends in our sporting cultures.
Sports Employer in Corby
6.5Business Planning
Business plans are important to firms. They help
businesses clarify their business idea, spot potential
problems, set out the firm’s goals and enable the
measurement of progress (GOV.UK, 2014). Business
plans are also used to help secure investment or loans
if needed and can also help to convince suppliers and
potential employees for support. Yet one in five firms
we spoke to did not have one. Evidence shows owner/
managers with a business plan are more likely to run
an SME that has experienced growth in turnover over
the past three years. This suggests that firms which
plan to grow are more likely to achieve growth. (BIS,
2012).
But firms are facing increasing challenges around
business leadership and management skills.
Organisations are beginning to grow faster than
they can sustain, due to a lack of management and
leadership skills. Managers and leaders are becoming
more involved in the operations and managing down
rather that looking up and out in terms of strategy and
vision. Better management processes and behaviours
(i.e. as High Performance Working Practices) are
being recognised as needed across firms, to ensure
high quality goods and services and an engaged and
empowered workforce. However, today’s leaders,
particularly in SMEs, need assistance in implementing
the HPWP and further support as they grow and
develop their business.
Managers and leaders have expert knowledge of their
industry and own business. Where they need support
is in relation to the changes which will come as they
grow and expand their business. This is a very distinct
set of skills and is one that we have identified as being
a key area moving forward.
12
7Recommendations
7.1Information, Advice and Guidance led by
employers
Ensuring there is adequate, easily accessible careers
advice available to those interested in pursuing a
career in the sector is vital.
Teachers and career advisors providing guidance
and inspiration to young people need to work with
employers and individuals in the sector to ensure there
is consistent messaging.
Students need to be aware of the labour market. With
ten times as many people aiming for jobs in the culture,
media and sports sector than there are jobs likely to be
available, individuals need to ensure that the pathways
they take into the industries meet with employer
expectations (Mann, et al., 2013). Competition will
be fierce and individuals will need to be able to
demonstrate their capabilities.
Conversely the accommodation and food and
beverage industries need to raise their profile. With
only about one in forty youngsters considering careers,
the sector could experience significant difficulties in the
future (Mann, et al., 2013).
The sector could benefit from looking into programmes
such as the STEMNET (http://www.stemnet.org.uk/).
Ambassadors from industry can use their enthusiasm
and commitment to encourage young people into
the sector. While school clubs could allow pupils to
explore, investigate and discover cultural and creative
subjects in a fun and stimulating learning environment.
7.2Sector Networks
Networks represent an important potential lever for
harnessing and increasing employer investment in
skills through overcoming common barriers such as
lack of awareness of skills needs, difficulty in accessing
learning provision and problems related to costs of
training staff.
While there are a number of business support groups,
the sector is particularly keen for sector specific
support. There are some groups available to some
industries already, such as Creative Bedfordshire
who provide support for creative businesses (www.
bedfordcreativearts.org.uk) but awareness of these
could be increased.
In particular it is apparent that networks which
increase the take up of Apprenticeships are likely to
be extremely desirable moving forward. Recent policy
announcements and changes to adult skills funding
make it clear that there will be a drive to increase
Apprenticeship numbers. Take up is not high in the
sector and particularly for small and micro businesses,
support networks aimed at making it easier to take
on and train an Apprentice are likely to be desirable.
Traditionally solutions such as Group Training
Associations and Apprentice Training Associations
have been used, but these solutions have had mixed
impacts (IOE & LLAKES, 2012). SEMLEP may wish
to devise updated networks designed to support
employers as they recruit and retain Apprentices.
In particular it is clear that the opportunities within the
sector need to be made apparent to groups who are
currently underrepresented within the sub sectors in
particular females and people from Black and Minority
Ethnic background. Data presented in section 4.3
makes its own case for tapping into talent pools who
have thus far largely eschewed the creative sector of
the economy.
13
7.3Sector Specific Job Board
We have also identified challenges around recruitment
and retention. The cost of recruiting a new member
of staff is not insignificant and many employers will
be familiar with the even greater implications of
hiring someone who is neither right for the role or
the company. Consequently, solutions which match
experienced, motivated and skilled individuals with
vacancies are likely to be extremely attractive as well
as sustainable in the long run. We have investigated
the impact of sector specific job boards and see that
they increase the likelihood of finding an appropriate
match as well as being effective in reducing staff churn. We are aware of several LEPs who are considering
electronic job boards, and at least one who has signed
off the funding and who will develop their own portal.
7.4Funding/Finance Support
It is clear that recent changes to public funding as
well as restrictions to private finance have had an
impact on employers. Changes to solutions (such as
qualifications) as well as the means by which they are
paid for have had an impact on employers and are part
of the so called ‘hassle factor’ that we have identified
when talking to employers. Consequently, employers
who are committed to training in principle have actually
turned their back on it because the practice has been
too difficult. In the past there used to be a network
of skills brokers who accompanied previous skills
initiatives. It maybe possible to use lessons learned
from that experience. We are also aware of initiatives
such as the creation of Credit Unions whereby a
means for lending for training has been created.
7.5Skills to Grow
In the course of this study we have identified a skills
issue that was unexpected, namely the gap that
exists around ‘skills to grow’. As businesses start
to grow the leaders need to change their way of
working. Individuals need to lead the company rather
than manage it. As we emerge from the economic
recession, it is clear that owners and managers are
faced with a new set of challenges. In the past few
years, management has largely been concerned with
keeping heads above water. Consequently, there has
been little if any thought spent on growth strategies or
associated work. In this sense, a significant set of skills
has not been used for some time, and we wonder
the extent to which this has had a detrimental impact.
Now seems to be an opportune moment to reflect on
factors needed to ensure sustainable growth and to
consider how best to support local employers as they
move out of survival mode and into a phase of growth.
14
8 Glossary of the industries
1. Advertising and Marketing
This covers the creation of advertising campaigns
and placement of such advertising in periodicals,
newspapers, radio and television, or other media as
well as the design of display structures and sites and
media representation.
2.Architecture
This includes architectural consulting activities, town
and city planning and landscape architecture.
3.Crafts
Crafts includes the manufacture of jewellery and
imitation jewellery articles.
4. Design: product, graphic and fashion design
This includes fashion design related to clothing,
apparel, shoes, jewellery, furniture and other interior
decoration and other fashion; industrial design, graphic
design and interior design.
5. Film, TV, video, radio and photography
This includes production of theatrical and nontheatrical motion pictures, projection in theatres,
cinemas or for broadcasting on television; supporting
activities, distribution of motion pictures and other
film productions and projection. This also includes
the activities of creating a complete television channel
programme, radio broadcasting studios and facilities
for the transmission of aural programming.
6.Digital
This includes computer programming and computer
consultancy activities in particular the development,
production, supply and documentation of ready-made
interactive leisure and entertainment software. It also
includes the planning and designing of computer
systems which integrate computer hardware, software
and communication technologies.
8. Museums, galleries and libraries
This includes the activities of libraries and archives;
the operation of museums of all kinds, botanical
and zoological gardens; the operation of historical
sites; nature reserves activities. It also includes the
preservation and exhibition of objects, sites and natural
wonders of historical, cultural or educational interest
(e.g. world heritage sites, etc.)
9. Music, performing and visual arts
This includes activities in the creative and performing
arts and related activities. This includes operation of
arts facilities.
10.Sports
This includes the operation of sports facilities, activities
of sport clubs, fitness facilities and other sports
activities.
11.Accommodation
This includes hotels and similar accommodation,
holiday and other short stay accommodation, camping
grounds, recreational vehicle parks and trailer parks
and other accommodation.
12.Food and Drink
This includes restaurants, cafes, mobile food services,
public houses, event catering and the operation of
food concessions, such as at sports or similar facilities.
13.Amusement and recreation activities
This includes a wide range of units that operate
facilities or provide services to meet the recreational
needs of a broad range of customers. It includes
the operation of a variety of attractions, such as
mechanical rides, water rides, games, shows, theme
exhibits and picnic grounds.
7.Publishing
This includes activities of publishing books,
newspapers, magazines and other periodicals,
directories and mailing lists, and other works such
as photos, engravings, postcards, timetables, forms,
posters and reproductions of works of art. This also
includes translation and interpretation activities and
electronic versions such as online or tablet.
15
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