Oireachtas Joint and Select Committees

Tuesday, 26 March 2013

Joint Oireachtas Committee on Jobs, Enterprise and Innovation

Skills Development: Discussion with Skillnets

1:45 pm

Mr. Alan Nuzum:

To take Deputy Calleary's first question about ManagementWorks as to whether it is a departure from our core mission, the answer is "No". It is a complementary expansion of what we have been doing since 1999. Over the years the vast majority of our networks have engaged in some form of management development support and training but it tended to be of the short, sharp intervention variety and quite subject specific. For example, in recent years there has been significant demand for programmes on matters such as credit control, seeking finance and greater efficiency in business. We have always been active in the management development space, particularly with SMEs. As I stated earlier, over 95% of the companies involved are SMEs. We would see this as a further expansion, a more deep and meaningful engagement and support for companies.

It is interesting to note that the attrition rate of those starting the programmes has been virtually nil. This involves employers having to take a full day each month away from their business. That is encouraging for us.

In terms of promotion, we decided to create a separate brand, ManagementWorks, but to leverage the Skillnets brand as well because we would be well known within the SME community already. We have engaged in a fair amount of traditional promotion of it - press, radio, etc. Perhaps it has passed Deputy Calleary by. It is difficult to get one's message across to SMEs because they are being assailed with a constant barrage of the latest tools that will help their business. There are two areas where we found most traction. Social media has been successful for us, in particular, Facebook, where one can profile and hone one's message a little more specifically to the audience one wants to reach. Probably, the most effective promotional tool of any new initiative that we have ever launched is a slow burner, that is, the word-of-mouth promotional piece. It uses the early movers as champions and advocates to widen it in an almost viral form. For example, and partly to answer one of Deputy Calleary's questions, none of the programmes have completely finished yet because, starting in September, they are typically between six and eight months long. It is a proper in-depth engagement. The earlier groups that started in September are, in the next month or so, nearing completion. We have 320 participants. By mid-May, we hope to have reached the 600 mark in terms of participants. We wanted to try to answer the question in terms of proof of demand as to whether there is a genuine demand. It involves a cash investment but, probably more importantly, a time and energy investment by the SMEs. With a very low attrition rate, we are confident that we have got the formula just about right.

The €500,000 Deputy Calleary mentioned is the funding that has been set aside for the creation of brand new networks. This has been a feature of our development over the year. Between one thing and another, we have probably funded over 300 networks since 1999. Some networks have a natural life. Many of our current networks comprise old networks coming together to form a new single entity to generate greater economies of scale.

Border and midlands were identified as areas, not where we did not have a representation but where the number of companies active in those counties was low compared to the number of companies that we had logged as member companies in other parts of the country. Deputy Calleary might be interested to know that the highest concentration of both Skillnets networks and member companies is in the west. They seem to get clearly the networking piece. We have over the years had a number of networks active in those areas.

One of the barriers in the Border areas, although it has reduced significantly over the years, was that the level of subsidy available for support for matters such as training was very high for all sorts of EU and structural reasons. Basically, we operate on a 50:50 model which involves a serious commitment in cash terms from companies, but the playing field is now much more level. We have generated a good deal of interest. We specifically went to both Cavan and Tullamore with our road show to drum up local interest in it and I think we will have some success in that regard.

In terms of sectors about which Deputy Calleary asked, these are more sub-sectors than whole sectors. For example, within the ICT area where we would be active in general hardware and software, we were completely under-represented in gaming and animation. I am a member of the Expert Group on Future Skills Needs and the gaming and animation sector is one that is a little fragmented. They do not tend to join the trade associations or whatever. They tend to do their own thing. That was one sector that we have actively gone after.

Also, there are parts of the green economy that we support, for example, we have a wind skillnet. One interesting area includes green finance, such as carbon trading, in which there is much activity in and around the IFSC at present. We are trying to leverage the potential growth of a sector like that in terms of teaming it up with other parts of the green value chain in terms of the funding, for example, of green projects worldwide where Ireland has great potential for being a hub for the management of that kind of activity. As well as what is going on in the economy, we are talking about a potential global reach there.

In the food and agri-space, we have some active networks. When one looks at the size of the sector, there is plenty of room for sub-sectors to be developed. I hope I answered all of Deputy Calleary's questions.