This presentation from Ms. Kristine Langenbucher from the OECD for the 12th meeting of the OECD Southeast Asia Regional Policy Network on Education and Skills shows the benefits of looking at skills utilisation for people, firms and places. It also presents some key findings from previous OECD work on this theme.

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BETTER USE OF SKILLS IN THE
WORKPLACE: WHY IT MATTERS FOR
PRODUCTIVITY AND LOCAL JOBS
Kristine Langenbucher
Head of Unit, Employment and Skills
Local Employment and Economic Development (LEED) programme
OECD Centre for Entrepreneurship, SMEs, Regions and Cities
12th Meeting of the OECD Southeast Asian Regional Policy Network on Education and Skills
30 November 2022

2. © OECD | Centre for Entrepreneurship, SMEs, Regions and Cities | @OECD_Local |
Overview – Better use of skills in the
workplace
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Some definitions
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Benefits of better using skills
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#local #skills
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Lessons learnt from across the OECD
Local case study: Leeds city region (UK)

3. © OECD | Centre for Entrepreneurship, SMEs, Regions and Cities | @OECD_Local |
What do we mean by skills utilisation?
• The way employers use the skills of employees in the workplace, and
the alignment of the competences of workers to the demands and
needs of the business.
• Technology but also innovation in terms of work organisation, job
design and human resource management.
• Include a wide range of actions such as promoting team-work and
mentoring activities, involving employees in decision making, or
implementing flexible working arrangements and investing in
training.

4. © OECD | Centre for Entrepreneurship, SMEs, Regions and Cities | @OECD_Local |
The benefits of better using skills
INDIVIDUALS
- Job-related well-being and satisfaction
- Increased job quality
- Higher wages
PLACES
- Gains in aggregate productivity
- Better investment climate
FIRMS
- Improved retention of workers
- Higher productivity and innovation
- Greater employee engagement
- Improvedrelations betweenmanagement&workers

5. © OECD | Centre for Entrepreneurship, SMEs, Regions and Cities | @OECD_Local |
Lessons learnt
1. Building awareness of the issue and recognising employers
that take the high road
2. Providing support for employers to reshape workplaces
3. Working at the level of sectors and employer networks
4. Leveraging the role of anchor institutions
5. Building on institutional changes in legislation and
regulation
6. Creating a regional brand

6. Local case study:
Leeds city region

7. © OECD | Centre for Entrepreneurship, SMEs, Regions and Cities | @OECD_Local |
Leeds City Region: what is the issue?
• Widening productivity gap with the UK average
• Higher educational attainments have not translated into
higher productivity
• Low productivity also in sectors and jobs with high
potential (ICT, professional and scientific occupations)
• Skills mismatch (both over and under qualification in firms)
SOLUTION: work closer with firms to encourage
them to use their skills better

8. © OECD | Centre for Entrepreneurship, SMEs, Regions and Cities | @OECD_Local |
Towards an OECD action plan
1. Outline a local strategy which emphasizes skills use policies with
short and long term objectives
2. Appoint a local coordinator to act as a catalyst for engagement
3. Identify businesses that can provide champions for change among
local firms
4. Encourage appropriate training programmes for businesses and
future managers
5. Development of a self-assessment tool to measure progress on
better using skills

9. Thank you!
Kristine Langenbucher
Head of Unit, Local Employment and Skills
kristine.langenbucher@oecd.org
Local Employment, Skills and Social Innovation Division,
OECD
Visit our webpage
Local Employment and Skills
https://www.oecd.org/cfe/leed/local-employment.htm