Select Committee on Education and Skills Minutes of Evidence


Annex A

KEY YOUGOV SURVEY RESULTS

Which three of the following do you look for MOST when recruiting a new graduate?

  1.  Relevant work experience—46% (public sector—57%; private sector—40%).

  2.  Degree subject (vocational relevance, type, range of modules studied)—41% (public sector—47%; private sector—40%).

  3.  Good "work ethic" attitude—43% (Public sector—25%; Private sector—50%).

Which of the following best describes your reasons for recruiting new graduates?

  1.  They bring a fresh outlook and innovation into my workforce—34% (public sector—33%; private sector—35%).

  2.  They have a proven level of intelligence—34% (public sector—25%; private sector—39%).

  3.  They have a proven ability to learn quickly—31% (public sector—25%; private sector—37%).

Do you think graduates who have undertaken a work placement as part of their degree, or have relevant work experience, adjust to work life more or less easily than those without such experience?

  1.  Yes—75 % (public sector—86%; private sector—71%).

What do you think graduates without relevant work experience mainly struggle with?

  2.  Having unrealistic expectations—52%.

  3.  Professional behaviour—29.

  4.  Office politics—29%.

On average how long does it take for new graduates who have done work placements or have other relevant experience to settle down into their first jobs

  Up to 3 months—41% as opposed to 12% without work experience.

Does the organisation offer work experience for undergraduate students

  1.  Yes—60% (Public Sector—78%; Private—53%).

  2.  We would consider doing it—19% (Public Sector—33%; Private—35%).

  3.  No—12%.

How important is the relationship between your organisation and the local university?

  1.  Very/Fairly important—31%.

  2.  Do not have any relationship—29%.

  3.  Not very/ not at all important—24%.

Do you expect to have a more important relationship with your university?

  1.  Yes—25%.

  2.  No—50%.

Do you think your organisation should have an important relationship with you local university?

  1.  Yes—46%.

  2.  No- 37%.

EXTRACT FROM THE UNIVERSITY OF HERTFORDSHIRE'S ECONOMIC AND SOCIAL IMPACT STUDY 2005—RELATIONSHIPS WITH BUSINESS AND OTHER ORGANISATIONS

Introduction

  In line with government policy (Lambert Review), the University is emerging as an important stakeholder in the local economy with an increasing commitment to local economic development. A key way in which this happens is through the links with business and other organisations. This chapter examines these links based on interviews with University staff, other organisations closely associated with the University and a survey of local businesses.

Key issues and questions

    —  How does the University interact with business—what are the links?

    —  What is the impact of University and business interaction?

    —  How important or useful are these links to businesses?

    —  What are the links between the University and the health sector?

University activity

  The University engages with local businesses in many different ways.

  Interactions with industry are many and varied including:

    —  Some 300 full time professional placement students in industry;

    —  An extensive programme of short courses and training;

    —  Consultancy and exchange of knowledge and research through programmes such as the KTP (Knowledge Transfer Programme);

    —  Student projects undertaken for business; and

    —  University staff and students working with and for local business such as the local film industry—for example making sets and models for Bond and Harry Potter films.

  Links with business take place in all Faculties and subject areas, including less obvious areas. For example, the School of Art and Design works with the car industry and the School of Psychology works with a range of companies assisting with recruitment profiling and stress management.

The University's formal mechanisms for business links:

Business Partnership Office:

  This acts as a gateway for businesses to approach the University, referring, business enquiries to relevant Schools. In 2004, it received 980 enquiries.

    —  Almost 50% were from Hertfordshire business.

    —  These come from all sectors but with business services (24%) and computer services (15%) being the main ones.

Innovation Centre:

  Set up in 2003, as an incubation centre for fledgling knowledge based companies, this now has 12 tenants with 40 employees.

Polyfield Services:

  Set up in 1984, it provides quality assurance, health/safety and environmental consultancy. In 2003-4 it had 150 clients of which 45% were in Hertfordshire. Most are small and medium sized enterprises (SMEs) and long term clients. Since its creation, it has worked for 600 businesses and run over 400 training courses.

Cimtech:

  This grew out of university research and now provides electronic documentation consultancy.

Software Development Services

  This is a commercial operation within the School of Computer Science.

  The University has formed a number of other wholly owned subsidiaries, which are listed in Section 1.1, Figure 2.

Major strategic initiatives to enhance links and services available to SMEs

  In the summer of 2005 The University of Hertfordshire became the first University to merge its business services with its local Business Link, which is operated by Exemplas Ltd. This is a major strategic initiative by the University. It is designed to enhance the links and services available to SMEs and to benefit local industry, addressing the issues raised in the McPherson and Lambert reports.

LINKS WITH INDUSTRY

Data sources

  This section is based largely on the survey of 303 Hertfordshire businesses supported by interviews with 20 local firms. The survey results have been weighted to reflect the size and structure of the area's 49,300 businesses. These businesses account for 40% of the County's employment.

10,600 businesses say they have had links with the University in the last three years.

  22% of businesses in Hertfordshire say they have had links with the University in the last three years.

Table 1

BUSINESSES WITH LINKS WITH THE UNIVERSITY IN THE LAST 3 YEARS


% of businesses with Links
% of County's linked businesses

Welwyn Hatfield
24
9
Rest of Hertfordshire
21
91
Total
22
100


  Source: PACEC business survey, March-June 2005.

  A further 5,400 businesses have had links with other universities but not with the University of Hertfordshire.

While larger firms are more likely to have links, the majority of links (95%) are with small firms.

Table 2

FIRM SIZE AND LINKS WITH THE UNIVERSITY


Employment
% of Group with University Links
% of All Linked Businesses

Less than 50
21
95
Over 50
31
5


  Source: PACEC business survey, March-June 2005.

  Of those firms that had links with the University, 65% of have under 5 employees.

REASON FOR LINKS

  The main objectives of businesses for developing their relationships with the University vary.

Recruitment, skills and technology are the main reasons given by firms who use the University.

Figure 1

MAJOR OBJECTIVES FOR USING THE UNIVERSITY

Recruitment, skills and technology are the main reasons given by firms who use the University

PERCENTAGE OF HERTFORDSHIRE BUSINESSES


  Source: PACEC business survey, March-June 2005.

  The business survey clearly indicates that firms value the University as a source of graduates and the role it plays in improving workforce skills and training. The role of the University in enhancing the technology of business, product development and business strategy/marketing was of less importance overall to businesses but found to be important to the smaller firms interviewed.

NATURE OF LINKS

  Businesses were asked in the survey to define how they sought and made links with the University

University links are many and varied

  Informal contacts with staff are the most widely quoted university link. The business interviews show these can lead to more "productive" links.

Figure 2

THE NATURE OF LINKS WITH THE UNIVERSITY

PERCENTAGE OF HERTFORDSHIRE BUSINESSES


  Source: PACEC business survey, March-June 2005 .

  The survey also identified links are via training courses (7%), attending seminars/conferences (6%) and recruitment are also common. This shows that the facilities and other training and learning resources that the University provides are important to local business. Other than facilities and training courses, businesses have used the academic capability through sponsored research, academics or KTPs but to a lesser degree.

Figure 3

INDIVIDUALS' LINKS WITH THE UNIVERSITY

14% of Hertfordshire business people say they have had some links with the University in the last three years

PERCENTAGE OF INTERVIEWEES


  Source: PACEC business survey, March-June 2005.

IMPACT OF LINKS

  Businesses were asked in the survey to define how links with the University impacted their business performance.

29% of local businesses with University links have experienced a positive impact on business performance

Table 3

IMPACT OF LINKS ON BUSINESS PERFORMANCE:


% of Hertfordshire Businesses

Increased Sales
19
Increased Employment
12
Improved Profitability
6
Other beneficial effects
7
No beneficial effects
71


  Source: PACEC business survey, March-June 2005.

  Of all Hertfordshire businesses, 7% describe their links with the University are either "critical" or "very important". This is particularly true for small firms. Our interviews confirmed that the University's assistance can have a significant impact on SME development.

Businesses employ 1,300 additional staff as a result of links with the University (other than as suppliers)

  1,300 businesses note that their links in the last three years have helped increase employment. This is in addition to employment impacts on the 700 businesses which supply goods and services to either to the University, students or staff.

  The business survey identified 2,200 businesses which state that the University had some influence on their decision to locate all or part of the business.

Most businesses without any links to the University have not considered the opportunity

  Of the 38,600 Hertfordshire businesses with no links with the University in the last three years:

    —  89% describe that they have never considered using a university;

    —  2% have considered or used other universities, but have never considered the University of Hertfordshire; and

    —  A few businesses noted that they tried and failed to make contact with the University.

BUSINESSES WITHOUT LINKS

  Extrapolating the data, 4,500 businesses currently do not have any links with the University but would consider using the University in the future.

4,500 businesses with no links with the University say they would consider using the University

  Of these businesses 90% have fewer than 50 employees and 90% are in the part of Hertfordshire outside Welwyn Hatfield.

  Their three main requirements are advice (28% of businesses), recruitment (14%) and student placements (10%).

BUSINESSES PARTNERSHIP OFFICE

  All businesses were asked about the University's Business Partnership Office:

Just 13% of local firms say they know what the University has to offer

  Of the companies willing to express a view, 7% said they were aware of the Business Partnership Office. Almost all (92%) of these businesses who had heard of the Business Partnership Office have links with the University.

  Of businesses aware of the BPO, 18% say they understand its purpose and 6% say it has a good image.

IMPORTANCE OF THE UNIVERSITY TO BUSINESS

  Nearly half of all businesses consider that the university plays a key role in local economic development and that it enhances the range and attractiveness of the area.

Figure 4

VIEWS OF HERTFORDSHIRE BUSINESS

Businesses generally consider that the University has contributed positively to local economic development

PERCENTAGE OF HERTFORDSHIRE BUSINESS


  Source: PACEC business survey, March-June 2005.

  Note that the survey indicated some bias: Businesses in Welwyn Hatfield and those with university links are more likely than those in the rest of the county and those without university links to perceive positive impacts.

FUTURE IMPACTS

The impact of the University on local businesses will increase in the future.

  The University is doing much to further develop its links with local industry including the design of new foundation degrees more aligned to the needs of their employees, academic structures better integrating with industry and marketing via, for example, sector champions.

  Almost all businesses interviewed realised the potential business benefits of closer links and were keen to develop them.

To establish more widespread links, companies believe ongoing change is required

  Businesses noted that the University needed to:

    —  Better understand the financial pressures on business and see them more as a customer;

    —  Ensure top level commitment is translated into action throughout the University;

    —  More explicitly recognise the two-way nature of knowledge transfer; and

    —  Make it easier to access the University.

  At the same time, businesses recognise they need to adapt and work harder to get the most out of links with the University.

Companies believe student placements could be more widely used

  Most (90%) of our interviewees had used and appreciated year long student placements.

    —  They were seen as a good means of tackling longer term recruitment;

    —  Most use placements to undertake a specific tasks;

    —  For young businesses and SMEs, placements are a valuable low cost/risk means of achieving flexible growth; and

    —  Most SMEs see them as more useful than formal mechanism eg KTPs.

  However, to increase uptake in placements businesses also believe:

    —  Mechanisms need to be found for making placements more accessible to SMEs;

    —  The University needs a more systematic means of making placements which depends less on personal contacts into specific Faculties; and

    —  The administrative workload imposed on businesses in order to take placements on needs to be reduced.

December 2006






 
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