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47
Education and Skills Committee
The future sustainability of the higher education sector: purpose, funding and structures
University of Hertfordshire
December 2006
1. Introduction
1.1. The University of Hertfordshire (UH) welcomes the opportunity to respond to the Education Committee's inquiry into Higher Education: The future sustainability of the higher education sector: purpose, funding and structures. In response to the inquiry's terms of references, our submission will focus on the crucial link between employers and higher education.
2. Setting the scene - The need for a "new model of a university"
2.1 The UK has a wide mix of higher education establishments. It hosts a leading group of research universities, and an important group of universities focused on increasing access to higher education. The missing ingredient is a group of universities focussed on the needs of business - breaking down barriers between commerce and academia.
2.2 The vision of UH is to help fill this gap by leading on the development of a new model of business-facing universities. Forging stronger links between universities and businesses will not only provide significant benefits for both sectors but will help drive up UK productivity and competitiveness.
2.3 Whilst our primary mission is the provision of high quality learning and research opportunities for students, UH's second mission is employer engagement and employability - in one dimension, equipping students with professional skills they need for employment and in another dimension, supporting innovation in business through applied research. In the delivery of this second mission, UH is one of only five universities nationwide selected by HEFCE to deliver a unique £4million project aimed at driving employer engagement activity. The innovations being driven by UH through this project will be replicable nationwide.
2.4 In recent years UH has developed groundbreaking links with business, giving those businesses - especially SMEs - access to the university's expertise and services. In return, this has given UH access to business-owned resources, insights and internships for students. Examples of recent collaboration with business include:
Ø Huge growth in UH's incubator clusters: - BioPark Hertfordshire - our new state-of-the-art biotech incubator at Welwyn Garden City - The Building Hub - our sustainable construction incubator in collaboration with the Buildings Research Establishment Ø Merger with Exemplas (Hertfordshire's Business Link) - the merger has connected the University with 500,000 businesses across the East of England and London regions. Ø Establishment of a Community Based Law Clinic - UH has worked with local legal firms to establish a law clinic that provides pro bono legal advice to those in need. Students have derived substantial value from the real world experience gained through working with legal professionals and clients. Consultancy services across all subject areas - drawing upon the expertise of our staff students and graduates.
3. Listening to business: research on what employers want from graduates
3.1 Clearly, any policy aimed at fostering sustainable and two-way links between business and universities must be based on solid research. In line with UH's mission to maximise the employability of its students, it recently commissioned a survey by YouGov to establish what UK employers look for when hiring graduates.
3.2 A full summary of this research is included in Annex A. Key highlights include:
Ø A significant proportion of employers considered relevant work experience as "crucially important" when hiring graduates; 46 per cent of employers regarded it as one of the three most important factors when hiring graduates. This was followed by having a "good work ethic" (43 per cent) and having the "right degree subject" (41 per cent). Only 3 per cent of employers ranked A-level results as one of the top three factors. Ø In contrast, the biggest factor putting employers off a graduate's CV was poor spelling and grammar (77 per cent). The next most significant factor scored 34 per cent. Ø In terms of building relationships with their local university, 46% of respondents considered this as important. However, the survey highlighted how in reality employers overwhelmingly failed to build such relationships. There is a gap between aspiration and reality.
3.3 Of course, engagement with employers goes well beyond the employment of graduates. The wider economic impact of Universities is a matter of significant interest. In 2005, UH published an independent research study into the University's impact on the local and regional economy.
3.4 An extract of the report is included in Annex B. Key facts include:
Ø 29% of local businesses with University links had experienced a positive impact on business performance; Ø Businesses employed 1,300 additional staff as a result of links with the University (other than as suppliers); Ø The majority of businesses considered the University to have contributed positively to local economic development Ø For young businesses and SMEs, student placements were regarded as a valuable low cost/risk means of achieving flexible growth.
4. Developing a new model of 'Business-Facing Universities'
4.1 UH recommends a mix of policy recommendations to encourage the development of a new model of 'business-facing universities'.
4.1.1 Increase work experience placements for both undergraduates and postgraduates, building a more experienced and confident graduate workforce.
Our research tells us that employers value graduates who have relevant work experience. 75% of employers believe that graduates who have undertaken a work placement as part of their degree, or have relevant work experience, adjust to work life more easily than those without work experience. However the national trend in work placements offered by UK universities and businesses is on the decline. The majority of students entering universities have had little or no experience of working within the sector they are studying in. Neither have they had experience of or developed confidence in building working relationships. At UH work placements are expanding against the national trend.
Policy recommendations:
(a) The Government should set a clear example to industry by increasing significantly the number of internships within the public sector. The central civil service, executive agencies, local government and the broader public sector should all be encouraged to offer more and varied internships - For example, two month summer placements as well as year long opportunities should be considered.
(b) Provide incentives for students to undertake internships, perhaps by modernising inclusion bursaries. By linking the provision of bursaries to a student's willingness to complete a work place internship, students from less privileged backgrounds will be encouraged to participate in training that will greatly enhance their employment prospects.
(c) Nationwide roll out of the employer/student employment and internship matching services. These services are currently being developed by UH (the UHTalent initiative) and enable students and companies to match the needs, skills and opportunities. UHTalent aims to go beyond the traditional matching service. It will provide ongoing skills development from graduates and internees, ensuring that employers have confidence in the skills of their employees.
UH believes that this scheme will be of particular importance to SMEs, who often do not have formal graduate training schemes, yet represent a sector of the economy which has the greatest potential for growth and wealth generation.
4.1.2 Bridging the cultural gap between universities and industry As Richard Lambert pointed out in his 2003 report, there is a culture gap between universities and businesses. Despite a range of successful post-Lambert initiatives, many in academia continue to demonstrate distrust for business involvement in universities. Likewise many in business still misunderstand academia. The UK's priority must be to bridge this gap. Policy recommendation: a) The Government should do its utmost to promote the recommendations of the Lambert Review, through highlighting best practice. For example UH leads the way, through actively engaging with business agencies such as CBI, IOD and Chambers of Commerce to build and ongoing dialogue across the sectors. The merger with Hertfordshire Business Link is also an initiative which could be replicated elsewhere, providing as it does a direct connection between Universities and local business. 4.1.3 Broadening the student experience The Leitch Review's findings revealed how graduates often lacked a suitable mix of both vocational and cultural skills to prepare them for the life ahead of them - a point also reflected in UH's own research (please see Annex A). Policy recommendations:
(a) Universities should link with businesses to offer 'employability workshops', providing students with advice from employers on how to prepare for working life. To support this initiative, the Civil Service could set an example by offering "working in the public sector" talks to universities. (b) Universities should do more to link with international universities and businesses abroad, offering UK students placements and experiences of overseas markets. This will become increasingly important as global competition intensifies.
4.1.4 Support employer-led and employer-funded learning
The traditional model of employer sponsored learning - part time course and day release activities has long been in decline as employers find it increasingly difficult to release valuable staff at fixed times and to a fixed curriculum. This diminishes opportunity for many - especially older students and those from less privileged backgrounds - restricting the supply of skills to UK plc.
In a 21st Century business environment, a new model of employee learning is clearly necessary. Blended learning - the combining of traditional teaching methods with on-line learning techniques - brings the flexibility and usability that businesses need to keep their employees at the top of the skills ladder.
The Government should actively seek to promote new ways of encouraging employers to engage with high level learning and skills development.
Policy recommendations:
(a) The Civil Service should set an example by actively offering employees greater opportunities and support to participate in new learning opportunities. (b) The system of work and tax credits should be reviewed to see how they can better support employers seeking to engage with Universities to up-skill their workforce.
4.1.5 Encourage innovative business start ups by supporting university-run business incubator facilities
Business incubator facilities - low commitment accommodation with shared services and the availability of business mentoring - have proved tremendously successful throughout the country. With the skills, knowledge base and ready availability of students, universities provide excellent business incubator partners. The challenge is securing the capital to build the facilities.
Policy recommendations:
(a) The Government should consider establishing a central or regional fund from which business orientated universities can access capital to build business incubators. (b) The Government should consider encouraging greater commercial provision of business incubators via the planning system.
4.1.6 Encourage greater knowledge transfer between universities and SMEs
Much progress has been made with encouraging knowledge transfer between businesses and universities, with the Knowledge Transfer Programme (KTP) leading to significant increases in engagement. However, there is a clear need to reduce the level of bureaucracy and thresholds which exist for this type of scheme to make it accessible to Sees as well as large corporate. In the Eastern region, UH has piloted the KEEP project - a mini-KTP scheme with shorter timescales, lower financial thresholds and minimal form-filling. The project has been very successful and UH believes that there is an opportunity to role it out nationally.
Policy recommendation:
(a) Review the KTP scheme to reduce bureaucracy and thresholds, in turn increasing accessibility to SMEs (b) Promote other collaborative research programmes both through the Technology Strategy Board and through regional funding agencies.
Whilst much progress has been made in recent years with enhancing links between academia and business, there is still much to be done. To maintain our competitive strength - sectorally and nationally, the University/business interface should be a strong theme shaping the future of higher education. We hope that this submission makes a useful contribution to the debate about what, in practical terms, needs to be done.
For further information, please contact Angela Martyn, University of Hertfordshire, 01707 286414, a.m.martyn@herts.ac.uk
University of Hertfordshire, December 2006
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
University activity
Links with industry
Future Impacts
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