People & Skills 

20 November 2024

How Employers Can Shape the Skills Agenda in Wales

GUEST COLUMN:

Richard Spear
Managing Director of ACT Training
Chair of ALS Training

The skills landscape in Wales is changing rapidly, and the demand from employers is stronger than ever.

At ACT Training and ALS Training, part of the Cardiff and Vale College Group, we’re seeing encouraging signs of growth in employer engagement following the uncertainty of the pandemic and cost-of-living crisis. However, to truly harness the potential of our workforce, employers, government, and the tertiary education and training sector must collaborate more effectively. 

Employers are at the sharp end of the skills challenge, and their insight is crucial in shaping training programmes that reflect real-world needs. From professional qualifications in leadership and management to cutting-edge green economy and digital transformation skills, businesses are signalling clear priorities. Health and social care remains a critical area where demand is outstripping supply, underlining the need for more skilled workers to support one of Wales’ most strained sectors. 

Training must have a clear purpose, addressing both immediate workforce needs and future challenges. Employers need flexible, tailored programmes that address immediate challenges while preparing for the future. Wales’ apprenticeship programme, for example, offers a fantastic opportunity to develop skills, but awareness remains a barrier. Many employers still see apprenticeships as being exclusively for young entrants to the workforce, missing out on the opportunity to upskill existing staff through higher-level frameworks. Employers who embrace apprenticeships as a tool for upskilling their workforce, rather than just as a pathway for new entrants, stand to gain significant advantages in adapting to industry shifts. 

The skills system in Wales has made strides in recent years, but there’s still a gap between the pace of industry change and the speed at which new qualifications are developed. Employers can play a pivotal role by working closely with training providers and policymakers to ensure qualifications remain relevant, especially in fast-evolving areas like AI and green technologies. 

Medr, the arm’s-length body established this year which funds and regulates tertiary education and research in Wales, offers a chance to create a more joined-up approach. By fostering collaboration between colleges, universities, and other providers, we can reduce duplication and ensure public resources are used efficiently. But employers must be part of this conversation. They bring real-world insights that can help shape an agile, responsive system capable of addressing Wales’ economic and social priorities. 

An effective skills system shouldn’t just serve the economy – it should contribute to the health and wellbeing of the nation. Skills development can play a vital role in tackling Wales’ high levels of economic inactivity, much of which is linked to health-related issues.  By aligning skills development with health interventions, we can tackle barriers to work more holistically, reducing economic inactivity while addressing skills shortages and improving health and wellbeing.  

Health and social care offer a clear example of how interconnected these agendas are. The sector faces high turnover rates and a pressing need for qualified staff. Addressing these challenges requires more than just training; we need to make these roles attractive through better conditions and opportunities for professional growth. 

The Welsh Government faces tough decisions as it balances priorities within a constrained budget. While I will always advocate for greater investment in programmes like apprenticeships, we must also think creatively about how to stretch existing resources. Short, flexible training options can complement more comprehensive frameworks, offering employers targeted solutions without undermining the gold standard of apprenticeships. 

Employers, too, must step up. By engaging in partnerships with government and training providers, they can help shape a skills system that meets their needs while contributing to broader societal goals. Businesses that invest in skills not only enhance their own productivity but also play a role in building a healthier, more inclusive Wales. 

There is also a great opportunity for employers to engage with the Welsh Government’s flagship Jobs Growth Wales+ programme, which supports 16–19-year-olds in their journey toward employment. By offering work placements and clear pathways to long-term careers, businesses can not only contribute to the development of young talent but also invest in securing their future workforce.  

The challenges we face – economic inactivity, health sector strain, and the fast pace of technological change – aren’t going away. Tackling them requires collaboration, innovation, and a commitment to aligning resources with areas of greatest need. Employers must take their place at the table, not just as beneficiaries of the skills system but as active partners in its development. 

In doing so, we can create a system that not only drives economic growth but also enriches the lives of individuals and strengthens communities across Wales. Together, we can build a workforce ready to meet the demands of today and the challenges of tomorrow. 

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