Future Skills Needs of Enterprise Seminar

1. Future Skill Needs of Enterprise IITD Seminar Gerard Walker, DJEI 10th September 2015

2. The Expert Group on Future Skills Needs • The EGFSN established in 1997, is the central national resource on skills and labour supply issues for the enterprise sector. • Membership includes representatives from the Dept of Jobs, Enterprise & Innovation, Dept of Education & Skills, Dept of Finance, Business, Employer Bodies, Unions, Higher Education Authority, SOLAS, Universities, education and training providers. • The Group make recommendations to the Minister for Jobs, Enterprise and Innovation and the Minister for Education & Skills. • The Strategic Policy Division within the Department of Jobs, Enterprise and Innovation in conjunction with the Skills and Labour Market Research Unit, SOLAS, provides the EGFSN with research and analysis support

3. What does the Expert Group do? • Highlights where future skills needs are expected to arise & what sectors & occupations are likely to provide employment opportunities • Advises on competencies required by enterprises of their employees • Examines drivers of change in each sector & their potential impact on current and future skills • Estimates the additional jobs in certain sectors & replacement demand in sectors • Informs on the implications this has for education & training providers

4. EGFSN Reports

5. Global and domestic Drivers of Change impacting on skills and talent-

6. Skills Pyramid – Required for Global Competitiveness GKE Talents Occupational Skills Literacy & Basic Skills (Maths, Science, IT Literacy) Source: INSEAD

7. Sectors & Job potential ICT Data Analytics Health Life Sciences Financial Services Agri-Food Internationally Traded Services Green Technologies Creative Industries Marine & Maritime Healthcare & Education Services Building on Strengths & Convergence Emerging Opportunities & Untapped Potential Building a Strong Enterprise Mix in Sectors A Renewed Focus on Mature Sectors Competitive Locally Traded Activities Tourism & Hospitality Retail & Wholesale Transport, Logistics & Distribution Professional & Business Services Other Manufacturing Other Market Services Source: Making it Happen – Growing Competitive Enterprise for Ireland

8. Areas of Skills Demand • Pharma, medical devices, ICT services, agri-business, environmental goods and services and globally traded services. • Newer Areas of opportunity – business analytics, e-commerce, renewable energies, energy efficiency use, international education services, marine, hospitality & tourism • Renewed demand for construction skills • Particular pressure on print & packaging, primary food, retail, traditional manufacturing. • Replacement demand arising (from retirements, migration, occupational mobility) in occupations employing large numbers.

9. Changing Skills Requirements Within Occupations- Importance of Building Personal Skills Portfolio • T skills requirements - developing ones personal skills portfolio • Concentrate on development of Core Business, Engineering and ICT Skills • Rising Qualification and Technical Skill Requirements • Need for Continuing Learning- Specialism Skills – organisational and technology change • Importance of generic skills – business acumen, problem solving, maths, ICT, language fluency, innovation, creativity, communications, collaboration, customer service. Within Enterprises- Importance of Continuing Professional development • International Management, Sales and Marketing Skills- building overseas exports • Innovation & Design Skills – meeting customers needs– adding value • Technical and manufacturing excellence – ensuring quality & cost control • Collaboration – Hybrid Teams working • Project Management Skills • Foreign Language Skills& cultural awareness • Human Resource Development • Leadership / Governance / Ethics

10. Building Personal Skills Portfolio Source: EGFSN Practical workplace experience to develop competences

11. ICT Professional Skills • Research undertaken indicated that skills recruitment demand difficulties were for ICT talent – NFQ 8 & above – due to: • Decline in ICT graduates in immediate period after dot com bubble. • An increasing share of employment now comprises high-level skills • Strong global demand for high–level ICT skills, e.g. Germany • Demand from the ICT sector arising from: • An expansion of existing business operations (Irish & Foreign) • Inflow of foreign R&D investment - New Irish start-ups • Response was the Launch of Government ICT Action Plan • Double number of computing graduates by 2018 • Conversion Programmes for unemployed architect's, civil engineers etc. • Reduce programme drop-out rates • Improve alignment of programme provision

12. Big Data / Data Analytics Talent categories • The following is a broad categorisation of Big Data / data analytics roles • Deep Analytical Talent • Roles with a combination of (i) advanced statistical, analytical & machine learning skills; (ii)business skills to assess the meaning of data and derive business insights; (iii) analytical & problem solving skills, and (iv) communication skills to explain/ persuade other executives. The shortage of deep analytical talent internationally has been identified as the most acute constraint on potential business growth. • Big Data “savvy” Talent • Roles comprising “data savvy” managers, CIO’s, market research analysts, business and functional managers that require a significant understanding of the value and use of analytics to enable them to interpret and utilise the insights from the data and take appropriate decisions to advance their company strategy and performance. • IT Supporting Technology • IT Roles for the application and development of data bases, analytics and business solution software i.e. Hadoop, MySQL, MapReduce, visualisation software.

13. Relationship between Data Analytics Skills Roles

14. Key Skills for Enterprise to Trade Internationally • To ensure the supply of internationally orientated skills necessary to drive export sales performance of enterprise in the key markets and for sector opportunities as identified in the Government Strategy and Action Plan for Irish Trade, Tourism and Investment to 2015. • Ireland is one of the most open economies in the world. However, Irish trade is geographically and sectorally concentrated. Export led growth requires a ‘whole of enterprise’ approach to improve competiveness. • Foreign languages proficiency and cultural awareness is a key area – but foreign language proficiency low. • International sales professionals with foreign language proficiency are a key skillset. However, sales as a profession is held in low esteem. Lack of formal international sales training.

15. Skills for Enterprise to Trade Internationally

16. Freight Transport, Distribution & Logistics Skills • Given Ireland is an island, it is required to have expertise in facilitating a multi-modal supply chain incorporating sea, road, air freight and rail. FTDL a strategically important business function. • Technological change, market demand trends and regulatory & legal requirements main drivers of changes in skills demand within FTDL – sustainability to a lesser degree • Sector has a relatively poor image - large companies an exception • The demand forecast analysis indicate that, due to an anticipated expansion in the sector and the replacement demand arising in core FTDL occupations, that some 13,500 to 15,500 job vacancies could become available over the period 2015-2020. • Job vacancies would arise for two main reasons: the performance of the sector is expected to grow (accounting for approx. 60% of job vacancy openings) and the number of retirements/other replacement needs estimated (40% of job openings). • Heavy goods vehicle drivers would comprise approx. 45% of the total potential vacancies • Word of mouth/referrals important in recruiting in lower skilled positions. Warehousing training tends to be unstructured and informal . Need to create improved career pathways. • New apprenticeship being introduced for HGV driving and warehousing

17. Skill needs within the Green Economy - Six Sub-Sectors 'Smart Green Solutions • Housing • Environment • Transport • Industry • Consumer Products • Bio Diversity Sustainable development delivering economic, social & environmental benefits Innovative, High-Value Products & Services

18. “Green skills” Development Enhance Management Development - Export Marketing & Sales Skills, Finance , Cultural Awareness Knowledge of Environmental Regulations and Standards - especially for indigenous companies (Engineers and Scientists - Focus on the development of Core Business, Engineering and ICT Skill – offer ‘add on’ specialism modules – wind, wave, solar, geothermal, biomass energy. Meet demand for ‘power engineers, and principal researchers to translate research ideas into a business proposition. Develop Technician’s Skills Capability- electro-mechanical/enhanced ICT skills –high demand re installation and servicing of wind turbines; small scale renewable technologies, biomass installations. Develop Sales & Marketing Staff Skills - re green procurement / foreign languages-meet demand for technical staff to sell internationally Develop Skilled Workers Capability - system knowledge of lighting and heating systems. – installation of water meters. Numbers trained for Building Energy Ratings sufficient. Develop Operatives Skills Capability – retrofitting – customer service skills –anaerobic digestion

19. Hospitality Skills • Estimated that 158,000 people are employed in hospitality-related occupations (2014) • High extent of seasonal/casual and part-time employment in the hospitality sector • The replacement rates for several hospitality – related occupations is high • Main skill issues seen as being amongst chefs. Shortages of commis chefs feed into shortages at higher and specialist levels (demi chef, chef de partie, pastry chefs) . • New Chef apprenticeships are being developed • Other skill gaps identified: • Management skills (revenue management, HR, skills for business owners) • Specialised reception and front-of-house skills • Bar staff with waiting skills for food service and modern drink skills • Customer service skills • Specialist knowledge: employment law, licensing law, consumer law, minimum pricing, allergens

20. Challenges for Education and Training Providers • Developing a coherent policy response re continuing education & training. • Education and training provision (incl continuing professional development) to be flexible and responsive to needs of individuals and enterprise. • Develop mechanisms for interaction between enterprise and education providers- design and relevance of curriculum / value of internships. • Emerging skills and technologies – how to adapt within programme- importance of upskilling of teaching professionals • Increase emphasis on course accreditation and recognition of prior learning. • Emphasis on careers guidance and disseminating labour market information. • Integrate insofar as possible generic skills into existing and new programmes. • Make optimum use of existing budgets-allocate funding towards areas of greatest need.

21. Enterprise Policy 2025 • DJEI in process of finalising Enterprise Policy 2025 • Is a ten year framework for Irish enterprise policy: sets out the strategic actions needed to ensure Ireland’s enterprise policy is robust in the context of a changing competitive environment, and intensified global competition for trade, investment and people • Strategy framed by ‘Global Drivers of Change’ identified by DJEI in preliminary research for EP2025, which are expected to have implications from an enterprise policy perspective

22. Full mandate and publications available at www.egfsn.ie • Any Questions