Equipping Milton Keynes with the skills required for sustained growth

Abstract

Milton Keynes was designated as a New Town in 1967 with a population of around 60,000 (Milton Keynes Council, 2011), and was originally allocated for housing and employment. For the last 30 years it has been one of the fastest growing United Kingdom cities in terms of economic output and employment, resulting in labour productivity being higher than the national average and with more growth forecast ahead. The global and United Kingdom economy will be changing, and many of these changes and disruptors cannot be anticipated. The purpose of this research study is to make sure Milton Keynes is equipped for current and changing needs through exploring, in a real-world setting, interpretations by senior managers of the links between investment in skills and the contribution to enhanced organisational and macro-economic performance. With a particular focus on Milton Keynes, employer attitudes and behaviour towards developing a skilled workforce will be investigated in order to enhance understanding and knowledge of the skills element of human capital and understand better the correlation between these interdependent components. In order to do this, the study focuses on answering four key questions: 1. To what extent is there a problem in Milton Keynes businesses with recruitment related to skills and training? 2. Do employers in Milton Keynes understand the links between investing in skills and training with business performance? 3. What are the attitudes and behaviours of employers in developing a skilled workforce? 4. What role does human capital play alongside technology for employers? This was achieved through assessing current local, national, and international reports and literature. In addition, real-time insight provided a summation of what is actually happening on the ground, through primary data collected through a business survey; methodologies employed include a questionnaire (sample size 1428 Milton Keynes organisations), as well as focus group methods using quantitative and qualitative approaches. Also included were 15 one-to-one interviews with businesses in Milton Keynes. All three methods provided a rich amount of data and insight from direct sources. This research was carried out as there was not enough evidence or reports in existence which looked at Milton Keynes in isolation, how it is performing and why. The contribution made to knowledge through the undertaking of this study has exposed a lot of direct information and findings from Milton Keynes businesses using different methods. A study in this detail over this period of time has never been undertaken before and therefore provides a unique insight, with rich information upon which to make recommendations and form conclusions directly relevant to Milton Keynes. This work provides a unique contribution to policy development and challenges theories such as that of Becker (1964) and Jacob’s (1961, 1969), suggesting that they should be revised to encapsulate other factors that play just as significant a role in business performance as education and skills development. This thesis reveals that factors such as macro-regional location, entrepreneurial activity and local infrastructure play a significant role in attracting highly skilled individuals, as opposed to the mere presence of a higher education institution. Therefore, a revised theory may wish to revisit the link between higher education institutions in a town or city and their link with business performance and productivity. Interestingly, employers in Milton Keynes do appear to acknowledge skills gaps. However, while those skills gaps may prevent businesses from reaching their full potential, it does not appear to hinder productivity. One of the most prominent findings of this thesis is that employers seem to only seek to take action to rectify a skills gap once the problem does look to affect productivity, otherwise employers were previously aware of this issue but not taking action. Another interesting finding is that in the focus group many employers often spoke about the need to attract skilled professionals, as opposed to investing in training and development or education. Through a combination of the literature and the results produced by primary research, one could argue that the construction of a higher education institution in Milton Keynes may not be necessary to equip Milton Keynes with sustainable skills, nor will it improve business performance. However, with employers dissatisfied with the local skills base and frequently considering the problem to stem from individuals “not having the right skills”, as well as a large number of employers who do not have any formal links with education institutions in Milton Keynes – it would be wise for employers to consider building closer partnerships with schools and education institutions. That way, they could have more of an influence on the skills being taught in schools as well as growing the local skills base that are equipped with the “right” skills to succeed in and contribute to the local economy. This rich source and analysis of data provides insights into a roadmap and strategic direction that policy makers in Milton Keynes could exploit in order to identify better the issues highlighted in this thesis work. This presents the opportunity for Milton Keynes to lead the way in terms of strategic planning in relation to the skills agenda, and create a future plan, based on this work which can be an exemplar of best practice. It is planned that this report will be circulated to several organisations with direct influence on the ability of Milton Keynes to deliver solutions which will help businesses to grow and flourish and resolve the skills gaps emerging from the research. One of these will be the central Government departments responsible for funding of skills, education and for helping businesses