The benefits to employers of raising workforce basic skills levels: a review of the literature
Katerina Ananiadou, Andrew Jenkins and Alison Wolf, Institute of Education, University of London, National Research and Development Centre for adult literacy and numeracy, 2003

This paper summarises the evidence from the UK (and internationally where possible) on the benefits employers derive from raising the basic skills levels of the workforce. A number of large-scale UK surveys have shown that people with good literacy and numeracy skills tend to have higher wages and better chances of being at work than people who lack basic skills. This suggests that if you improve the basic skills among adults, their earnings should increase but there is little direct evidence of this. However, labour market studies indicate that very few jobs could be performed without basic skills, and that skills requirements will increase in the future.

There is some international evidence that employer-provided literacy and numeracy courses may raise productivity, improve the use of new technology in the workplace, contribute to enhanced customer satisfaction, save time and reduce costs, but the research base is very small. There is an absence of UK data on rates of return to training of any kind, not just basic skills training.

Those employers who have sponsored basic skills training are generally positive about the experience and there is some evidence that employers do not see it as either burdensome or an unnecessary expense.

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Basic skills in the workplace: a research review
John Payne, Learning and Skills Development Agency, March 2003

This review, prepared in July 2002, pulls together existing research on workplace basic skills and draws conclusions for future policy, practice and research. While highlighting a relative lack of interest in the area by academic researchers, the review also uncovers evidence from successful good practice of what works and what does not in workplace basic skills which it says should not be ignored.

There are a number of factors which determine the effectiveness of programmes, including working with the grain of the overall political climate; conducting a learning needs analysis; considering basic skills as a part of the firm's overall training and development programme; provision which is free to the worker and is offered in working time; clear visible support for the programme from senior management; and evaluation linked to the planning of ongoing learning opportunities. It is not suggested that any single scheme would necessarily demonstrate all these features: successful schemes succeed precisely because they mould themselves to local circumstances.

Download the full report from: www.lsneducation.org.uk

The Fresh Start in the Workplace programme was developed and managed by the Basic Skills Agency with funding from the DfES Adult Basic Skills Strategy Unit. It comprised four areas of activity: a brokerage scheme, training brokers and providers to stimulate employer demand for adult basic skills provision; a brokerage scheme in very small firms; work with national training organisations (NTOs) to map basic skills standards to national occupational standards; and support for human resource managers to implement basic skills training in the workplace. 

The evaluation found positive feedback from the majority of participants in the brokerage schemes and the NTO project achieved its aims of mapping over 100 national occupational standards against the basic skills curriculum. As NTOs are replaced by sector skills councils there is a need to ensure that the considerable momentum generated by the programme is not lost, and the role that they can play in the delivery of the Government's Skills for Life strategy is made clear and promoted.

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In demand: adult skills for the 21st Century
Cabinet Office Performance and Innovation Unit, November 2001

This report to the Government recommends a radically different strategy for improving the skills of the British workforce: one that is driven by the skills demands of employers and employees. A key priority are the 7 million adults with poor basic skills. A higher standard of basic skills in the workforce benefits not only individuals, in terms of career development and increased pay, but also contributes to the country's economic performance. The overall vision is to be able to develop, by 2010, a society where Government, employers and individuals actively engage in skills development to deliver sustainable economic success. Current workforce skills development tends to ignore those at the lower end of the skills spectrum. Poor basic skills are a substantial barrier to taking up further development opportunities so addressing this area of need is a significant step towards meeting skills demands throughout the workforce.

This report reviews the available evidence on the demand for, and supply of, skills in England. In terms of basic skills, the report focuses on demand for basic skills by UK employers rather than the level of basic skills possessed by employees. It concludes that although there is limited evidence on the changing demand for basic skills, changes in the job market have meant a reduction in the proportion of jobs held by people with poor basic skills. In particular, the decline in the number of people working in manual occupations has meant an increase in the relative demand for people with at least a minimum level of basic skills. Regardless of sectoral changes, research has shown that 45% of employers feel literacy and numeracy have increased in importance. However, evidence also exists to suggest that the basic skills gaps within the current workforce are less significant to employers than gaps in, for example, IT skills. Other research indicates that many employees make little or no use of reading and writing skills in the workplace, suggesting that, in some areas or occupations at least, people with relatively low basic skills may be able to undertake jobs without difficulty.

Available free from DfES Publications on 0845 60 222 60 or by visiting www.dfes.gov.uk/research, reference SIE01. A summary document is also available, reference SIE01S.