For the first time, research has been undertaken to establish from an employers perspective how they are supporting individuals back to work in Scotland. Through its Employability Leadership Groups, Scottish Business in the Community (SBC) in conjunction with the Napier University Business School and The Scottish Centre for Healthy Working Lives has commissioned a study to investigate how, and why, Scottish businesses engage with hard-to-reach job seekers, and the associated business benefits.

John Swinney, Cabinet Secretary for Finance and Sustainable Growth, said:

“Key to increasing sustainable economic growth is helping the large number of individuals who are currently economically unproductive back into work. Businesses have a key role to play in upskilling people at a distance from the labour market and increasing their capacity and competency to gain employment. I am delighted to support this research and the findings will help employers wanting to make a contribution to Scotland’s economic prosperity and growth.”

Key findings of the research are that:

·         Companies support this agenda in two main ways by providing opportunities and support for people out of work and partnering directly with schools to help disengaged young people.

·         There are real business benefits including increased productivity, staff motivation, personal development opportunities for current staff and enhanced reputation.

·         Scottish companies are keen to access the widest pool of talent possible and to help upskill disadvantaged groups but at present there are too many local agencies dealing with the same employers so that the current process is confusing, and creates a barrier to doing so;

·         Good practice is in action in Scotland, and that by listening to and working in partnership with businesses, the Scottish Government can help to improve opportunities for job seekers.

The research took the form of in-depth interviews with a number of leading businesses operating in Scotland, including Enterprise Rent a Car, Marks & Spencer, Royal Mail, Standard Life, KPMG and Scottish and Southern Energy.  In total, the research gathered data from employers responsible for over 70,000 Scottish jobs.

Companies that seek to support disadvantaged groups and disengaged young people into work experience a number of benefits, including:

Workforce: Development of specific training, management and mentoring skills among existing staff who have been involved with supporting and training people, often with benefits that go beyond traditional training courses. As well as engendering a ‘feel good’ factor amongst the existing workforce;

Reputation:  An opportunity to gain reputation benefits and respond to an increasing interest in CSR among customers, existing staff and potential recruits.

Recruitment: Access to a wider pool of talent, allowing employers to reach highly motivated and committed staff.  In some cases those employed through employability programmes fared better than those coming through traditional recruitment routes, with increased commitment and motivation leading to faster promotion;

Society: Greater wellbeing for disadvantaged groups, helping people to become more economically productive members of society.

However, those employers that wish to tap into the wider labour pool experience barriers, including the large number of different agencies competing for the attention of employers, and the lack of support networks for individuals genuinely wanting to make a go of work, such as childcare, personal support and financial advice.

Professor Ron McQuaid of the Employment Research Institute at Napier University Business School said: “For employers already engaged in employability, many of the benefits are clear.  However, Business, Government and specialist agencies need to work in partnership to break down the barriers that may be stopping other employers becoming engaged. 

Our research concluded that there is a need for greater use of best practice among some agencies supporting disadvantaged job seekers. To avoid confusion the current process needs to be simplified, perhaps by creating single points of contact, which would go a long way to helping people back into work, and meeting the needs of Scottish employers.”

John McElwee, Chair of the SBC Leadership Group on Employability, comments: “There remains considerable untapped potential among Scotland’s unemployed and employers have a key role to play in tapping the skills of these people.  Our research will now be taken forward to start discussions with Government and partner agencies, to identify positive action that will take forward this important policy agenda.”

As well as using the research to inform the Government of the barriers companies face in supporting disadvantaged groups back into work, Scottish Business in the Community will focus on using the findings to raise awareness of the benefits of employability to businesses.