What drives employer and employee decisions about higher technical skills?

Higher technical skills are a critical part of the UK’s productivity and growth ambitions. This report explores the motivations and barriers to gaining those skills from employers and employees, and make recommendations about how to better align education policy with the world of work.

This research commissioned from Learning and Work Institute (L&W) sheds important light on how those already in work are enabled to gain higher level skills, advancing their careers and benefiting their employers in the process. The study provides timely evidence for policy development as England continues to reform technical education; introducing the Lifelong Learning Entitlement, and expanding devolved skills powers.

Economic and technological change – from automation to the transition to net zero – is shifting demand for skills across the labour market. Yet only one in ten adults in the UK hold a Level 4 or 5 qualification as their highest level, reinforcing the ‘missing middle’ in England’s skills system. This new research explores how employers with strong engagement in skills development are responding to these challenges, and what helps – or hinders – individuals to upskill and progress.

Drawing on in-depth interviews with employers and employees in the North East and East Midlands, the report reveals several clear messages:

Higher technical skills are essential – but can be difficult to source
Employers across both sectors described higher technical skills as critical to business operations, safety, regulatory compliance, and competitiveness. They highlighted shortages linked to an ageing workforce, insufficient local talent pipelines and the pressures created by major infrastructure projects.

Most employers prioritise developing their existing workforce
Employers overwhelmingly preferred to upskill internal staff rather than recruit externally. They used a blend of in-house training, external short courses, apprenticeships and NVQs, with accredited provision particularly important where regulation or licencing is required. However, SMEs frequently struggled with the cost of training and the time needed to release staff.

Information on training is fragmented and hard to navigate 
Larger employers rely on established networks and internal expertise to identify provision. Smaller firms often lack these networks and reported difficulty finding trusted, relevant information on higher technical training. Employers called for a central, employer-friendly hub of skills information, aligned with clear, consistent terminology.

Provision does not always meet business need
Employers identified gaps in specialist provision, limited availability in some regions and expressed concern that external courses can lag behind technological innovation. Many employers and employees saw significant value in short, modular, accredited training, which can be easier to access and more closely targeted at specific skill needs.

Training supports progression – when opportunities exist
Both employers and employees viewed higher technical skills as directly linked to career progression. Yet progression opportunities can be limited, especially in smaller organisations, and employees noted the significant time commitment required for longer courses, including apprenticeships.

Devolution offers potential – but risks increasing fragmentation
Where employers had relationships with their mayoral combined authority, they found it a valuable source of information. Stakeholders expressed optimism about the potential for strategic authorities to play a local coordination role, while warning of the need to avoid adding further complexity to an already fragmented skills landscape.

Download the report here.

To discuss this report or our wider work in Higher Technical Education, please contact ginny.page@gatsby.org.uk