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10 May 2006 HEFCE logo
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Circular letter number 06/2006

For further information contact your HEFCE regional consultant

Dear Vice-Chancellor or Principal

Employer engagement in learning at HE level

1.   I am writing to invite you to contribute to the development of HEFCE's policy on employer engagement, especially if you have suggestions about an innovative approach that could be tested in pilot form at your institution. There is no deadline, but we would welcome early informal contact.

2.   HEFCE's grant letter from the Secretary of State in January this year called on HEFCE to lead radical change in higher education (HE) by incentivising and funding provision which is partly or wholly designed, funded or provided by employers. HE Minister Bill Rammell's address to the HEFCE annual conference in April emphasised the strength of the Government's interest in this agenda, in particular in encouraging growth in undergraduate student places that are co-funded by employers.

3.   HEFCE's commitment to supporting both greater engagement with employers and increased flexibility in provision to support lifelong learning is set out in our strategic plan 2006-11. Elements of the plan build on work we have been doing over the last year in exploring how workplace learning might be better supported, including a large research study which we are due to publish shortly.

Contributions to HEFCE policy development

4.   We are aware that there is already a significant dimension of employer engagement in HE. We are considering how best to support a wider approach to engaging employers in learning, and are preparing a policy for consideration by the HEFCE Board, with a view to a subsequent formal consultation in autumn 2006. This exploration is wide ranging and includes such things as:

  • involvement of HE with the sector skills agenda and regional skills infrastructure and brokerage
  • co-funding of HE provision between HEFCE and employers
  • measures to support greater flexibility in provision
  • quality assurance issues concerning customized and workplace learning
  • supporting increasing employer and workforce needs for continuing professional development at higher levels
  • the costs associated with workplace learning; and the contribution of e-learning and technology more widely.

There are a number of complex issues involved in this area which need careful attention.

5.   The recent further education (FE) White Paper announced that the 'Train to Gain' employer engagement programme, to be rolled out across all regions in relation to FE this summer, would also be extended on a trial basis to HE in three regions in 2006-07. We will offer support for the pilot projects under this programme and will include this within our strategy.

6.   We are open to comments and suggestions from both higher education institutions (HEIs) and further education colleges (FECs) on how HEFCE might best progress the broad employer engagement agenda to inform our policy. We would be interested in contributions at any stage (and a formal consultation is planned in due course), but early thoughts (if possible by early June) would be helpful. Please send comments or suggestions to Sarbani Banerjee (s.banerjee@hefce.ac.uk).

Pilot projects

7.   At the HEFCE conference a suggestion was made from the floor that institutions could contribute to the development of employer engagement by undertaking pilot projects designed to test various forms of employer engagement, especially those likely to attract employer contributions towards overall funding of provision. I can confirm our interest in exploring any such expressions of interest. The resources we have at our disposal are limited, but we would be happy to consider proposals for support from our Strategic Development Fund, including the allocation of additional student numbers, subject to proposals meeting the standard criteria for the fund. We would welcome, for example, proposals that involve FECs, developed with their HEI partners, possibly based around Lifelong Learning Networks. If successful, such pilots could be the basis of more extensive arrangements in subsequent years, following the Comprehensive Spending Review.

8.   There is no deadline for any such expression of interest, but we would welcome early informal contact to explore suggestions. Please contact your HEFCE regional consultant and/or Sarbani Banerjee (s.banerjee@hefce.ac.uk) to discuss any ideas you may have.

9.   This is clearly going to be an important agenda for the HE sector in the years ahead. I look forward to receiving your views and expressions of interest.

Yours sincerely

Steve Egan
Acting Chief Executive