Procurement Efficiencies: Monitoring and Evaluation of Devanha Phase 2

11 Training and Employment

Introduction

11.1 Part 9 of the Offer of Grant set a condition that Devanha would use the financial investment as "a catalyst to help train and provide additional employment opportunities for local people." (p31) Devanha was set specific targets relating to process and outcomes. The key target was to deliver up to 150 additional Modern Apprenticeships and other employment and training opportunities over the period of the approved projects.

11.2 Devanha set up an initiative known as "Devanha Train" and employed a consultant, Engage Consulting, to co-ordinate this initiative. In the early stages of Devanha, the three framework contractors were involved in setting up these processes and opportunities for extending into the supply chain were explored.

11.3 As Devanha developed, it concentrated on the key targets of cost and grant efficiencies and other targets including training and employment received less attention. In the summer of 2008, Devanha decided not to continue to employ Engage Consulting.

11.4 The changed economic circumstances from 2008 called the attainment of targets for recruitment and training into question. Although a positive approach to training and employment was one of the selection criteria for appointing framework contractors, the main concern had became retention of qualified staff at a time of widespread redundancies elsewhere in the construction industry.

Setting Targets and Measuring Performance against Targets

11.5 Nevertheless, Devanha Train adopted a model developed by the Glasgow Housing Association based on the value of labour content in a contract as a whole and designed to give the necessary flexibility to account for the situation where an individual only spends part of their time on any one project. The results of this model are expressed in person weeks. Heriot-Watt University adopted this approach in gathering data for the M&E study and also sought data on 'additionality', i.e. the number of people who would not have been employed without the Devanha programme.

11.6 For each project data was sought on the total employment and training opportunities and this was divided into three subgroups based on Devanha's priorities:

• New entrant trainees
• Targeted recruitment
• Unwaged work experience placements

11.7 It is perhaps indicative of the lower priority given to the training and employment objectives that Devanha was never able to complete monitoring forms for all of the projects. Also, despite initial attempts by Engage Consulting to involve the section 75 developers, no returns were ever received from these. It is not possible to use the terms of the section 75 agreement itself to encourage involvement in training and employment initiatives as these are non-planning matters such. To achieve closer involvement of these developers would therefore require specific agreement between each developer and Devanha.

Performance against Targets

11.8 Summary data for the whole programme was available for the three framework contractors and detailed data was available from 23 projects, 21 of which had reached Practical Completion and two of which were still on site. All data was from framework schemes, none from Section 75 schemes.

11.9 Framework contractors provided summary figures for all apprentices taken on between the start of the programme and March 2012. At that time all but three small projects (all nearing completion) and the large Donside project were complete. Figures can be taken as close to the final number for the Devanha project as a whole. Data related to apprentices taken on since the start of the programme as a direct result of Devanha, some of whom may have subsequently completed their apprenticeships and not all were necessarily currently employed by the contractors.

Table 11.1 Apprentices

Firm	Apprentices
Bancon	12
CHAP	14
Robertsons	11
All Framework Contractors	37

Source: Devanha monitoring returns

11.10 Table 11.1 shows the total number of apprentices taken on by all contractors as a result of Devanha. This is just under a quarter of the original target of 150. However, it is likely that apprentices were also taken on by section 75 developers and it would be unfair to judge the contractors against the original target given the economic circumstances. In interviews in March 2012 contractors suggested they were taking on 3 or 4 apprentices per year which was a continuation of their existing policy. One noted that they had a continuing policy of recruiting school leavers and new trainees.

11.11 Targets were set for three categories of recruitment as shown in table 11.2: new entrant trainees^[5], targeted employment (which includes those identified through social enterprises) and a small number of unwaged placements for individuals. Targets were expressed in terms of the percentage of hours worked by each category of employee compared with the total number of hours worked on site by all employees.

Table 11.2: Targeted Recruitment (Person Weeks as Percentage of Total Weeks Worked by All Employees)

	Target (Percent)	Main Contractor Actual (Percent)	Sub Contractors Actual (Percent)	Total Actual (Percent)
New Entrant Trainee	10	7	1	4
Targeted Recruits	20	4	1	2
Unwaged Placements	3	0.4	0	0.2

Data from sample of 23 projects for which detailed data was available.

11.12 Table 11.2 shows that the projects performed less well than original targets in relation to all three identified recruitment groups. Contractors were able to come closer to targets for direct employees but had very little impact on subcontractors. Although limited, most success was gained in bringing in new entrant trainees. Targeted recruits were those such as long term unemployed or people with specific barriers to employment identified as difficult to place by social enterprise organisations. The absence of a dedicated employment consultant providing support may have impacted on recruitment from this group but they will also have found employment harder to get in the recession. There were very few unwaged placements, none with sub contractors.

Table 11.3 Number of separate individuals employed in each category

	Actual Number	Actual Percent
All employees	2881	100
New Entrant Trainee	55	1.9
Targeted Recruits	35	1.2
Unwaged Placements	26	0.9

Data from sample of 23 projects for which detailed data was available.

11.13 Table 11.3 expresses recruitment of target groups in terms of the total number of the cumulative number of people employed in each group throughout the whole programme. The 23 projects can be seen to have provided employment for a large number of people at some point during their execution^[6]. The numbers of new employees in the target groups who gained access to employment was small.

11.14 A large programme such as Devanha provides opportunities for employment beyond the contractors and subcontractors working directly on the sites. Data collected in March 2011 shows Devanha's impact on other employment.

Table 11.4 Non-Contracting New Staff Employed as a Direct Result of Devanha (persons)

Type of Firm	Number of staff taken on since start of Devanha1	Number (from previous column) Currently Employed2
RSL	0	0
Devanha	1	0
Architects	2	1
Surveyors	12	7
Engineers	8	6
Other Consulting firms	0	0
Suppliers	11	11
Others	0	0
Total	34	25

1. Taken on since start - means taken on as a result of Devanha work.
2. Currently employed refers to anyone in category 1 who is still working for the firm (Devanha employee not included as he was about to be made redundant).

11.15 From the data supplied, it appears that 34 people gained at least temporary employment as a result of Devanha and 25 of these are currently retained despite Devanha's programme coming to an end. Most of these jobs are in professional firms but there is no information on the nature of the jobs. The number of supplier jobs is an estimate and the basis of this figure is not known.

Conclusions

11.16 The recruitment and training targets set for Devanha have not been achieved but this is against a background of largescale redundancies in the construction industry as a whole. The continuity of work represented by Devanha has been beneficial to the firms involved and the emphasis has been on retaining staff, including apprentices rather than creating new positions.

11.17 Nevertheless, framework contractors have taken on 37 apprentices as a result of Devanha work and also over 100 new recruits and trainees, although not necessarily on a permanent basis. In addition, data suggests that 25 additional posts have been created amongst consultants, suppliers and other employers as a result of Devanha.