Employer Perspectives Survey.

This report presents findings from the Employer Perspectives Survey which involved 1,114 interviews with senior managers in establishments where individuals from the 2001 Skills Survey were employed. The aim of the Employer Perspectives Survey was to investigate the relationship between the characteristics of the establishments where people work and the skills needed in jobs. An important focus was the relationship between skill requirements and product or service specification. Understanding the connection between product specification and skill is important for gaining a better knowledge of employers' demand for skills in Britain. The main findings are as follows: higher levels of product specification are associated both with managers' perceptions of recent changes in skill needs and with higher skill levels; 19% of jobs in 'high-specification' product establishments use degree-level qualifications, compared with only 14% of jobs elsewhere; at establishments with high levels of technical change some 42% reported that skills needs had risen significantly compared with only 25% in other establishments, this finding being consistent with the widely held assumption that the prevailing form of technological change in the modern era is 'skill-biased'. The results of this study carry a number of implications for policy making. The first is to underline the importance of considering the demand side as well as the supply side in trying to realise the high skills vision. The report suggests that an increased supply of skills is a necessary condition for realising the high skills vision but it is unlikely to be a sufficient one. The analysis of skill needs to be embedded within a broader analysis of organisational product and production strategies.