Disconnect in education system threatening business

Disconnect in education system threatening business viability, says Chamber CEO

Business sustainability and job prospects for communities are being threatened by a disconnect between the education pipeline and the workforce, Wellington Chamber of Commerce Chief Executive John Milford told the Higher Education Summit in Wellington today.

He said finding the right staff was a real struggle for business, “so much so that they are telling me that they cannot find fit-for-purpose employees and this is leaving gaps in their business skillset, and jeopardising the sustainability of their business.

“Despite a highly educated population, the business community struggles to find fit-for-purpose employees. Feedback informs us that skill shortages are a consistent and significant barrier to successful business.

“On the other side of the fence, I’m told graduates are struggling to find fit-for-purpose employment.

“There is some disconnect between the education pipeline and its recipient workforce. We believe work needs to be done by businesses, education providers and policy-makers to adapt the education pipeline to better respond to workforce requirements.

“This issue threatens business sustainability and employment prospects for communities and must form a high priority on the agendas of policy-makers and education providers. It’s definitely on ours.”

Mr Milford questioned how it could be that the most highly educated city in the country still suffers from skills shortages as a predominant issue. “I can only put it down to one thing: the dots don’t join up.”

He questioned why such importance was put on higher education qualifications. “I believe there is this underlying fear that without a formal qualification, there is no room for you in the workforce. This is made somewhat true by the fact that so many people are obtaining formal qualifications.

“While data suggests that prospects of success are greater with tertiary education, we must be careful not force everyone down this pathway.

“One concern I have about higher education, particularly the apparent need to have a university degree, is that while everyone runs towards the universities, other areas are neglected, primarily our basic trades. My members’ businesses range in size and sector, and some look to other forms of higher education as a pool for talent. They tell us that the pipeline appears to be running dry when it comes to fuelling trades sectors.

“I imagine there are many cases of dissatisfied graduates and businesses lacking skills elsewhere because the education provider is not syncing with demand.

“We need to work on helping students realise that university isn’t the be-all end-all, but is one of a range of options to help students reach their potential and contribute to solving issues around skill shortages.

“Tertiary providers need to be more proactive about preparing students for employability, rather than pushing them to keep studying. The reality is, if students are prepared for employment, then most will see the value in continued education, and will eventually return to educational institutions to further their knowledge.

“In order to achieve the best results for the economy, we need to be proactive in working out a coordinated approach to address the skill shortages and assist the economy to grow where it needs to.

“Tertiary providers need the economy to thrive, and the economy needs tertiary providers to thrive – the trick is finding the balance that allows all parties to benefit and achieve what needs to be achieved.”

ENDS

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