Page 1

Robert Gordon’s College Economic Impact Assessment SEPTEMBER 2017


Table of RGC’s Contents Where are pupils from?

The maps below highlights areas within Aberdeen City and Aberdeenshire where the majority of pupils 4 Executive Summary reside. Approximately 71% of pupils reside in Aberdeen and 29% live in Aberdeenshire. One in seven 1. Introduction 6 pupils at RGC secondary level attend on a means-tested bursary. About RGC 6

North East Catchment Area Location

1

7

Where are RGC’s pupils from?

8

North East Catchment Area

8

2. Employment

9

Headlines

PETERHEAD

Detailed analysis

9 9

FTE total impact (North East)

10

3. Annual expenditure impacts

11

Headlines

11

11

Detailed analysis

FTE total impact (North East)

13

GVA 4. Construction and technology

A brief explanation

The projects

Wider achievement through technology

13 BANCHORY

STONEHAVEN

15 15 15 16

5. City contributions

17

6. Public benefit and public sector savings

19

Appendix I

22

Methodology

22

Key assumptions

22

Appendix II

24

Glossary

24

26

Appendix III

Research objectives

26

Document structure

26

28

Appendix IV

About Aberdeen & Grampian Chamber of Commerce

28

About the Research Team

28

Contact

29

Robert Gordon’s College

29

Research queries 1

29

While the map above highlights RGC’s central catchment area within the North East, it should be noted that a small number of pupils also travel from outside this area (e.g. from Buckie, Banff, Aberlour, and Fraserburgh).

6 2


Where are RGC’s pupils from? Executive Summary

Themaps highlights within Aberdeen CityChamber and Aberdeenshire where the majority Thebelow Research Teamareas at Aberdeen & Grampian of Commerce (AGCC) was of pupils reside. Approximately 71% of pupils reside in Aberdeen and 29% live in Aberdeenshire. One in seven to undertake anon Economic Impact Assessment of Robert Gordon’s College (RGC) pupils atcommissioned RGC secondary level attend a means-tested bursary. 

The purpose of this report is to outline the economic impact of RGC in relation to aspects such as

North East Catchment Area1

employment, expenditure, city contributions, public benefit and public sector savings

RGC is an independent co-educational day school in Aberdeen city centre which accommodates around 1,630 pupils aged 3 – 18 through Nursery, Junior School and Senior School

Approximately 71% of pupils reside in Aberdeen and 29% live in Aberdeenshire

Key findings emerging from the research include: o

PETERHEAD

Employment: 

385 employees are directly employed by RGC, with 251 Full Time Equivalent (FTE) employees employed in the North East

98% of RGC’s salary spend is within the North East, with only 2% going outside the region BANCHORY

 o

o

In total RGC supports 313 FTE jobs across the North East

Annual expenditure impacts:

STONEHAVEN

38% of RGC’s spending is with suppliers in Aberdeen City and Aberdeenshire

Direct spend in the North East economy is £1.98m

RGC’s total economic impact in the North East is estimated at £3.3m

Construction and technology: 

Capital investment projects between 2009 and 2017 have accounted for £28,938,000 of expenditure

These projects are estimated to have supported around 430 short-term construction jobs, including indirect and induced impacts

o

City contributions: 

The College contribute more widely to others delivering for the City (e.g. Aberdeen Inspired and Aberdeen Art Gallery)

o

Public benefit and public sector savings: 

The equivalent cost of educational provision across the public sector for RGC’s 1,600 pupils would be £9.5m a year. A direct saving to Aberdeen City and Aberdeenshire education budgets each year.

1 While

49% of the 142 Bursaries provided by RGC in 2016/17 reached the most deprived

While the map above highlights RGC’s central catchment area within the North East, it should be noted that a small number areasthis in area the (e.g. region of pupils also travel from outside from Buckie, Banff, Aberlour, and Fraserburgh).

6 4


Where are RGC’s pupils from?

The maps below highlights areas within Aberdeen City and Aberdeenshire where the majority of pupils reside. Approximately 71% of pupils reside in Aberdeen and 29% live in Aberdeenshire. One in seven pupils at RGC secondary level attend on a means-tested bursary.

North East Catchment Area1

PETERHEAD

BANCHORY

STONEHAVEN

1 While

While the map above highlights RGC’s central catchment area within the North East, it should be noted that a small number of pupils also travel from outside this area (e.g. from Buckie, Banff, Aberlour, and Fraserburgh).

6


Where are RGC’s pupils from? 1. 2. Introduction Employment

1. Introduction About RGC reside. Approximately 71% of pupils reside in Aberdeen and 29% live in Aberdeenshire. One in seven Headlines Robert Gordon’s College (RGC) is an on independent co-educational About RGC pupils at RGC secondary level attend a means-tested bursary. day school in Aberdeen city centre,

The maps below highlights areas within Aberdeen City and Aberdeenshire where the majority of pupils

Robert Gordon’s College independent co-educational school in Aberdeen city centre, established in 1750 as a(RGC) result is of an a bequest by Robert Gordon, an Aberdeen businessman and established in 1750 a result of1 a bequest by Robert Gordon, Aberdeen businessman and entrepreneur. The as school comprises a Nursery, Junior Schoolan and Senior School, accommodating North East Catchment Area typically around aged 3a –Nursery, 18 through theSchool Nursery (30), Junior School (500) and Senior entrepreneur. The1,630 schoolpupils comprises Junior and Senior School, accommodating Schoolaround (1,100).1,630 pupils aged 3 – 18 through the typically Nursery (30), Junior Senior gross employment to Schoolof(500) RGCand salary in salary costs in employees School (1,100). directly 251 gross time the school spend operates in North East Remaining to the philanthropic ethos of its founder, Robertfull Gordon, as a 2016/17 employedtrue by RGC roles (£11.5m) sustainable business with a strongethos charitable Demand placesthe remains andas thea school Remaining true to the philanthropic of its ethos. founder, Robert for Gordon, schoolrobust operates continues to attract families from acharitable broad range of economic backgrounds and nationalities. The pupil sustainable business with a strong ethos. Demand for places remains robust and the school PETERHEAD community is diverse with over 37 nationalities represented. continues to attract families from a broad range of economic backgrounds and nationalities. The pupil community is diverse with over 37 nationalities represented. The Sunday Times School Guide 2017 named Robert Gordon’s College the Scottish Independent Secondary SchoolSchool of the Year. The Sunday Times Guide 2017 named Robert Gordon’s College the Scottish Independent Secondary School of the Year. In 2015 RGC completedsupported The Wood Centre for Science and Technology - the largest school in Foundation the North East through RGC’s activities for science education in Britain, along with Thefor Craig Centre forTechnology Performing -Arts a stateschool of the Incentre 2015 RGC completed The Wood Foundation Centre Science and the -largest art performance and digital recording venue. This has been one of the most significant developments centre for science education in Britain, along with The Craig Centre for Performing Arts - a state of the in history of the College is being recognised asbeen a UKone showcase school for STEAM (Science, in artthe performance and digital and recording venue. This has of the most significant developments Detailed Technology, Engineering, Arts and Mathematics). Wood Foundation Centre for Science and the history analysis of the College and is being recognised asThe a UK showcase school for STEAM (Science, Table 2.1 shows the economic contribution of RGC’s employment impact both in the North East and to BANCHORY TechnologyEngineering, has been awarded theMathematics). 2017 Education School Building and was Technology, Arts and TheBusiness Wood Foundation CentreAward for Science andjudged elsewhere. From this analysis we find that 98% of RGC’s salary spend is within the North East, with only be the most technically advanced building constructed for the purpose of teaching future Technology has been awarded the 2017 Education Business School Building Awardpresent and wasand judged to 2% outside This analysis ispeople based from on data STONEHAVEN This facilitythe hasregion. been used by young around thefor North East many of whom are not bepupils. thegoing most technically advanced building constructed forsalary the purpose of2017/18. teaching present and future pupils at RGC. pupils. facility economic has been contribution used by young people (AGCC from around the North East many of whom are not TableThis 2.1 Gross – salaries assessment) pupils at RGC. Robert Gordon’s tradition of academic strength and the high quality learning and teaching available to Location 2017/18 Salaries (actual) pupilsGordon’s was underlined byofthe highly successful 2016 report from and Her teaching Majesty’savailable Inspectors Robert tradition academic strength and theinspection high quality learning to of NE £11,504,689 Education. The inspectors "Learning andinspection teaching is of high quality and thereInspectors are examples pupils was underlined by thenoted highlythat successful 2016 report from Her Majesty’s of of Outside NE £285,199 outstanding practice. Children people learning verythere well to caring of Education. The inspectors notedand thatyoung "Learning andenjoy teaching is of and highrespond quality and arethe examples Total ethos." outstanding practice. Children and£11,789,888 young people enjoy learning and respond very well to the caring ethos." The of academic demonstrated by strong exam results year oninyear. RGCschool’s employ tradition 385 people, with 379 success based inisAberdeen City and Aberdeenshire, as shown TableIn2.2. 2016, 62RGC S5tradition pupils achieved five success or straight A passes at strong Higher. The A-B Higher rate In is at its The school’s of210 academic is demonstrated by exam results yearpass on year. In total, employ people onmore a full-time basis and 175 on a part-time basis. highest point of 85%, with 4five out or of more everystraight 5 grades being atatA Higher. or B. InThe S6 77% of Advanced Higher 2016, 62 S5 pupils achieved A passes A-B Higher pass rate is at its grades areGross at or Bwith and496% or every S6 Leavers go on to Higher mostly in Scotland, but also to highest of A 85%, out of 5 grades being at A orEducation, B. In S6 77% of Advanced Higher Table point 2.2 employment universities Oxford, Cambridge and London. grades are at in A England or B and including 96% or S6 Leavers go on to Higher Education, mostly in Scotland, but also to Locationin England including Oxford, 2017/18 jobs universities Cambridge and London. NE 379 Outside NE 6 Total 385

385

£11.8m 251 FTE

98%

313 net FTE Jobs

While it is important to know how many people are employed by the College for studies of this nature, it is important to create common or comparable metrics. For employment we create a measure of Full Time Equivalent (FTE) employment. For example: one full-time role is equivalent to 1 FTE two roles where both people work days also equivalent 1 FTE While the mappart-time above highlights RGC’s central catchment area2.5 within the per Northweek East, is it should be noted thatto a small number We have calculated the FTE employment at RGC by using average salary data, this allows us of pupils also travel from outside this area (e.g. from Buckie, Banff, Aberlour, and Fraserburgh). to calculate the corresponding number of full time equivalent employees (see Table 2.3). 

1 While 

6 76 4


Where are RGC’s pupils from? Location

2. Employment

e the majority of Gordon’s pupils The maps below College highlights areasan within Aberdeen City and Aberdeenshire where the majority ofall pupils Robert enjoys unrivalled city centre location, convenient for transport from parts enshire. One in seven reside. Approximately 71% of pupils reside in Aberdeen and 29% live in Aberdeenshire. One in seven of North East Scotland. The campus centres on the historic Auld Hoose, around which has developed Headlines pupils secondary on a means-tested bursary. a rangeatofRGC buildings fitted level out toattend the highest educational standards.

e noted

North East Catchment Area1

385

employees directly employed by RGC

£11.8m 251 FTE in salary costs in 2016/17

gross employment to 251 gross full time roles

o spe

PETERHEAD

313 net FTE Jobs

supported in the North East through RGC’s activities

Detailed analysis Table 2.1 shows theBANCHORY economic contribution of RGC’s employment impact both in Easily accessible by car, bus, trainelsewhere. and air, RGC is this centrally located in Aberdeen, situated Schoolhill. From analysis we find that 98% of RGC’son salary spend is within t 2% going outside the region. This analysis is based on salary data for 2017/18. STONEHAVEN Table 2.1 Gross economic contribution – salaries (AGCC assessment) Location NE Outside NE Total

2017/18 Salaries (actual) £11,504,689 £285,199 £11,789,888

RGC employ 385 people, with 379 based in Aberdeen City and Aberdeenshire, In total, RGC employ 210 people on a full-time basis and 175 on a part-time bas Table 2.2 Gross employment Location NE Outside NE Total

2017/18 jobs 379 6 385

While it is important to know how many people are employed by the College for is important to create common or comparable metrics. For employment we creat Time Equivalent (FTE) employment. For example:

 one full-time role is equivalent to 1 FTE  catchment two part-time roles both people week is also eq While the map above highlights RGC’s central area within the where North East, it should bework noted2.5 that days a smallper number We have calculated the FTE employment at RGC by using average salary data, of pupils also travel from outside this area (e.g. from Buckie, Banff, Aberlour, and Fraserburgh). to calculate the corresponding number of full time equivalent employees (see Ta

that1aWhile smallthe number map above

7

6

76


Where areRGC’s Robertpupils Gordon's College pupils from? Where are from? 2. Employment

Themaps mapsbelow belowhighlights highlightsareas areaswithin withinAberdeen AberdeenCity Cityand andAberdeenshire Aberdeenshirewhere wherethe themajority majorityofofpupils pupils The reside. Approximately 71% of pupils reside in Aberdeen and 29% live in Aberdeenshire. One in seven reside. Approximately 71% of pupils reside in Aberdeen and 29% live in Aberdeenshire. One in seven Headlines pupilsatatRGC RGCsecondary secondarylevel levelattend attendon onaameans-tested means-testedbursary. bursary. pupils

385

£11.8m 251 FTE

NorthEast EastCatchment CatchmentArea Area1 1 North employees directly employed by RGC

in salary costs in 2016/17

gross employment to 251 gross full time roles

98%

of RGC salary spend in North East (£11.5m)

PETERHEAD PETERHEAD

313 net FTE Jobs

supported in the North East through RGC’s activities

Detailed analysis Table 2.1 shows the economic contribution of RGC’s BANCHORY employment impact both in the North East and BANCHORY elsewhere. From this analysis we find that 98% of RGC’s salary spend is within the North East, with only 2% going outside the region. This analysis is based on salary data for 2017/18. STONEHAVEN STONEHAVEN Table 2.1 Gross economic contribution – salaries (AGCC assessment) Location NE Outside NE Total

2017/18 Salaries (actual) £11,504,689 £285,199 £11,789,888

RGC employ 385 people, with 379 based in Aberdeen City and Aberdeenshire, as shown in Table 2.2. In total, RGC employ 210 people on a full-time basis and 175 on a part-time basis. Table 2.2 Gross employment Location NE Outside NE Total

2017/18 jobs 379 6 385

While it is important to know how many people are employed by the College for studies of this nature, it is important to create common or comparable metrics. For employment we create a measure of Full Time Equivalent (FTE) employment. For example: 

one full-time role is equivalent to 1 FTE

1 1 While  the two part-time roles where both people work 2.5 days week also equivalent toa asmall 1small FTE map above RGC’s catchment area within the North East, it itshould bebenoted number While the map abovehighlights highlights RGC’scentral central catchment area within theper North East,is should notedthat that number

While the map above highlights RGC’s central catchment area within the North East, it should be noted that a small number

We have calculated the FTE employment atBuckie, RGC Banff, by using average salary data, this allows us pupils also travelfrom from outside this area(e.g. (e.g.from from Buckie, Banff, Aberlour, andFraserburgh). Fraserburgh). ofofpupils also travel outside this area Aberlour, and to calculate the corresponding number of full time equivalent employees (see Table 2.3).

7 6 88


Where are RGC’s pupils from? 2. Employment

2. Employment

e the majority of pupils The maps below highlights areas within Aberdeen City and Aberdeenshire where the majority of pupils enshire. One in seven reside. Approximately 71% of pupils reside in Aberdeen and 29% live in Aberdeenshire. One in seven Headlines Headlines pupils at RGC secondary level attend on a means-tested bursary.

e noted

385

251 FTE FTE 98% 385251 £11.8m £11.8m

North East Catchment Area1 employees directly employed by RGC

gross employment to gross employment to in salary costs in of RGC salary directly in salary employees costs in 251 gross 251 gross full time spend in North Eastfull time 2016/17 employed by RGC 2016/17 roles (£11.5m) roles

o spe

PETERHEAD

313 net FTE Jobs 313 net FTE Jobs

supported in the North East through RGC’s activities supported in the North East through RGC’s activities

Detailed analysis Detailed analysis Table 2.1 of shows theBANCHORY economic contribution employment Table 2.1 shows the economic contribution RGC’s employment impact bothofinRGC’s the North East and impact both in elsewhere. From this analysis we find that 98% of RGC’s salary spend elsewhere. From this analysis we find that 98% of RGC’s salary spend is within the North East, with only is within t goingisoutside region. Thisfor analysis is based on salary data for 2017/18. 2% going outside the region. This 2% analysis based the on salary data 2017/18. STONEHAVEN Table–2.1 Gross(AGCC economic contribution – salaries (AGCC assessment) Table 2.1 Gross economic contribution salaries assessment) Location 2017/18 Salaries (actual) NE £11,504,689 Outside NE £285,199 Total £11,789,888

Location NE Outside NE Total

2017/18 Salaries (actual) £11,504,689 £285,199 £11,789,888

employ 385 people, withAberdeenshire, 379 based in Aberdeen and Aberdeenshire, RGC employ 385 people, with 379RGC based in Aberdeen City and as shownCity in Table 2.2. In total, RGC basis employ 210 people on a full-time basis and 175 on a part-time bas In total, RGC employ 210 people on a full-time and 175 on a part-time basis. Table 2.2 Gross employment

Table 2.2 Gross employment Location 2017/18 jobs 379NE 6 Outside NE 385Total

Location NE Outside NE Total

2017/18 jobs 379 6 385

While people it is important to knowby how people are employed by the itCollege for While it is important to know how many are employed themany College for studies of this nature, is important metrics. to createFor common or comparable metrics. For employment we creat is important to create common or comparable employment we create a measure of Full Time Equivalent (FTE) employment. For example: Time Equivalent (FTE) employment. For example: 

one full-time role is equivalent to 1one FTEfull-time role is equivalent to 1 FTE

two part-time roles where both people days per week  the two part-time roles where bothpeople work days is also equivalent FTE that1aWhile small number map above highlights RGC’s central catchment area2.5 within the per Northweek East, it should bework noted2.5 thatto a1 small number

While the map above highlights RGC’s central catchment area within the North East, it should be noted that a small number is also eq calculated the FTE employment at RGC usingusaverage salary data, We have calculated FTEthisemployment RGC Banff, by using average salary data, thisby allows of pupils also travel from the outside areaWe (e.g.have fromatBuckie, Aberlour, and Fraserburgh). to calculate the corresponding number of full time equivalent employees (see Ta to calculate the corresponding number of full time equivalent employees (see Table 2.3).

9

6

96


Table Gross FTE jobs Where are RGC’s pupils from? 2.2.3 Employment The maps below highlights areas within Aberdeen City and Aberdeenshire where the majority of pupils Location FTE reside in Aberdeen and 29% live in Aberdeenshire. One in seven reside. Approximately 71% of pupils Headlines NE at RGC secondary level attend 251 on a means-tested bursary. pupils Outside NE 6 Total North East Catchment Area1 257

385

£11.8m 251 FTE

98%

The table shows that in total, once we remove jobsgross whichemployment ‘leak’ out of to the area, of 251 FTEsalary jobs are RGC in salary costs in employees directlyThe location generated by RGC. of FTE jobs indicates high retention spend withinEast the North 251agross full time of salary spend in North 2016/17 employed RGC East into the by local economy. roles (£11.5m) FTE total impact (North East) PETERHEAD Table 2.4 illustrates the total impact of RGC’s activity on employment in the North East and shows that RGC supports the full time equivalent of 313 jobs. Using the earlier glossary shows that the table includes the indirect and induced employment estimates. These are calculated using industry specific multiplier values which are published by the Scottish Government. supported in the North East through RGC’s activities Table 2.4 FTE total impact in the North East

313 net FTE Jobs

Type of employment contribution FTE NE direct 251 Detailed analysis NE indirect 24 Table 2.1 shows the economic contribution of RGC’s BANCHORY employment impact both in the North East and NE induced 38 salary spend is within the North East, with only elsewhere. From this analysis we find that 98% of RGC’s Total 313 2% going outside the region. This analysis is based on salary data for 2017/18. STONEHAVEN *Rounded Table 2.1 Gross economic contribution – salaries (AGCC assessment) Location NE Outside NE Total

2017/18 Salaries (actual) £11,504,689 £285,199 £11,789,888

RGC employ 385 people, with 379 based in Aberdeen City and Aberdeenshire, as shown in Table 2.2. In total, RGC employ 210 people on a full-time basis and 175 on a part-time basis. Table 2.2 Gross employment Location NE Outside NE Total

2017/18 jobs 379 6 385

While it is important to know how many people are employed by the College for studies of this nature, it is important to create common or comparable metrics. For employment we create a measure of Full Time Equivalent (FTE) employment. For example: one full-time role is equivalent to 1 FTE two roles where both people work days also equivalent 1 FTE While the mappart-time above highlights RGC’s central catchment area2.5 within the per Northweek East, is it should be noted thatto a small number We have calculated the FTE employment at RGC by using average salary data, this allows us of pupils also travel from outside this area (e.g. from Buckie, Banff, Aberlour, and Fraserburgh). to calculate the corresponding number of full time equivalent employees (see Table 2.3). 

1 While 

7 6 10 10


Where3. are RGC’s pupils from? 2. Employment Annual expenditure impacts

e the majority of pupils The maps below highlights areas within Aberdeen City and Aberdeenshire where the majority of pupils Headlines enshire. One in seven reside. Approximately 71% of pupils reside in Aberdeen and 29% live in Aberdeenshire. One in seven Headlines pupils at RGC secondary level attend on a means-tested bursary.

£5.29m

North East Catchment Area1 direct gross expenditure

38%

385

£1.98m 251 FTE £11.8m

gross employment to direct gross expenditure in salary costs inin North East employees directly 251 gross full time 2016/17 employed by RGC roles

of direct expenditure secured by North East based suppliers

o spe

PETERHEAD

£3.33m 313 net FTE Jobs

total net expenditure impact across supportedNorth in theEast North East through RGC’s activities

Detailed analysis

Detailed analysis The assessment of expenditure has been undertaken using both annual reports and management Table theBANCHORY economic of RGC’s employment impact both in accounts from 2015/16. This is what we 2.1 callshows our ‘typical year’ andcontribution has been used to present the elsewhere. From this analysis we find that 98% of RGC’s salary spend is within t economic impact of RGC expenditure. The data used allows us to breakdown expenditure by the type of 2% going outside the region. This analysis is based on salary data for 2017/18. STONEHAVEN service or good, that is important because spending on different things creates different economic benefits. Our analysis also assesses the2.1 percentages of expenditure which are secured by suppliers Table Gross economic contribution – salaries (AGCC assessment) within the North East, with our analysis undertaken in the same way as the staffing assessments by Location 2017/18 Salaries (actual) using postcode analysis. NE £11,504,689 Outside £285,199 Direct spending by RGC in the North East isNE estimated to be around £5.29m, based on spending during the 2015/16 financial year. Of this the gross expenditure in the North East is £1.98m. This is based on Total £11,789,888 the estimated proportion of expenditure using supplier location which also shows 38% of RGC’s spending is with suppliers in Aberdeen and385 Aberdeenshire. RGC City employ people, with 379 based in Aberdeen City and Aberdeenshire, In total, RGC employ 210 people on a full-time basis and 175 on a part-time bas Table 3.1 Economic contribution – direct expenditure in supply chain Table 2.2 Gross employment Direct gross expenditure Spatial area Gross expenditure Location NE £1,984,179 NE Outside NE £3,301,974 Outside NE Total £5,286,153 Total

2017/18 jobs 379 6 385

While it isthe important know how manyitpeople are employed While the analysis and numbers can show impactstocreated by RGC, is important to also by the College for to create common orthrough comparable understand the impact more fully. isToimportant understand the mechanisms whichmetrics. impactsFor areemployment created we we creat Time Equivalent (FTE) employment. For example: undertook interviews and present these as case studies. These case studies help demonstrate the wider impacts alongside the financial analysis.  one full-time role is equivalent to 1 FTE 1  catchment two part-time roles both people week is also eq e noted that aWhile smallthe number map above highlights RGC’s central area within the where North East, it should bework noted2.5 that days a smallper number We have calculated the FTE employment at RGC by using average salary data, of pupils also travel from outside this area (e.g. from Buckie, Banff, Aberlour, and Fraserburgh). to calculate the corresponding number of full time equivalent employees (see Ta 11

6

11 6


Where are RGC’s pupils from? 2. Employment

The maps below highlights areas within Aberdeen City and Aberdeenshire where the majority of pupils CASE STUDY – INSPIRE CATERING reside. Approximately 71% of pupils reside in Aberdeen and 29% live in Aberdeenshire. One in seven Headlines Inspire Catering have been working with RGC since 2015 as their pupils at RGC secondary level attend on a means-tested bursary. appointed service catering provider. They provide a range of services to RGC such as the lunchtime catering service for over 500 1 North Area pupilsEast and Catchment staff, provision of catering services at the RGC Countesswells sports facility at weekends and ad hoc catering for gross employment to of RGC salary RGC’s events and meetings when costs required. in salary in employees directly 251 gross full time spend in North East 2016/17 employed by RGC roles (£11.5m) How important is your business relationship with RGC? It’s very important for us and the College. RGC is within the independent schools market in Scotland, PETERHEAD RGC has a fantastic reputation and is an award winning school. Recently it won a major award so it already has a very high profile within the independent schools market in Scotland. We are a service provider to a number of schools within Scotland and we are delighted to have RGC as a client partner. It is important for us to be able to use that relationship in terms of including it in material that we may put together when we are trying to secure other contacts, it’s very important. We are very supported North through RGC’s proud of our relationship and on in thethe basis of East our reputation both atactivities RGC and in the independent schools market, we’d certainly wish to use that as a means to secure additional business.

385

£11.8m 251 FTE

98%

313 net FTE Jobs

What impact would it have on your business if RGC was not one of your customers? Detailed analysis The turnover of the contract is significant and obviously therefore there would be a financial consequence theeconomic Inspire Catering business of notBANCHORY having it, in terms bothinturnover and theand Table 2.1 showstothe contribution of RGC’s employment impactofboth the North East income that it generates for our We of currently 16 staff the school so East, obviously elsewhere. From this analysis we company. find that 98% RGC’s employ salary spend is at within the North with only there would be an implication of 16 members of staff less working for Inspire Catering, so a significant 2% going outside the region. This analysis is based on salary data for 2017/18. STONEHAVEN impact on that. Our business is growing steadily, we have very good year-on-year growth and overall Table 2.1 Gross economic contribution – salaries assessment) employee numbers and we want that to continue.(AGCC Therefore, not having the RGC contract would have quite a significant impact on our growth projections. Location 2017/18 Salaries (actual) NE £11,504,689 Are there any other organisations that benefit from your relationship with RGC? Do you use other suppliers to meet the scope of your offer to RGC? Outside NE £285,199 One of the guiding principles of Inspire Catering is to utilise as many local suppliers as we can. We Total £11,789,888 are an independent Scottish company based in Scotland, providing services to Scottish clients based in Scotland and using as many Scottish suppliers. For example, we are the only contract catering RGC employ 385 people, with 379 based in Aberdeen City and Aberdeenshire, as shown in Table 2.2. company that has the Scotch beef accreditation for all our operating sites, so therefore our butcher is Indelivering total, RGC employ 210 people on a beef full-time basisWe’re and 175 on ahaddock part-timethat’s basis. the best possible Scottish to RGC. buying landed in Peterhead. All the milk that’s used on site comes from local dairies. We use some cheese and bread from local Table 2.2 Gross employment suppliers in Aberdeen. So we have a business relationship directly with RGC but a lot of our suppliers are also benefiting from that relationship because they are then providing the goods or services that Location 2017/18 jobs they provide to the site. NE 379 Outside NE 6 Total 385 While it is important to know how many people are employed by the College for studies of this nature, it is important to create common or comparable metrics. For employment we create a measure of Full Time Equivalent (FTE) employment. For example: one full-time role is equivalent to 1 FTE two roles where both people work days also equivalent 1 FTE While the mappart-time above highlights RGC’s central catchment area2.5 within the per Northweek East, is it should be noted thatto a small number We have calculated the FTE employment at RGC by using average salary data, this allows us of pupils also travel from outside this area (e.g. from Buckie, Banff, Aberlour, and Fraserburgh). to calculate the corresponding number of full time equivalent employees (see Table 2.3). 

1 While 

12 7 6 12


The first are phase of further economic is the assessment of indirect impacts. This is the benefit Where RGC’s pupils from?analysis 2. Employment created when thehighlights College’s areas suppliers spend with their chain (indirectwhere impact ormajority Type I), of presented e the majority of pupils The maps below within Aberdeen Citysupply and Aberdeenshire the pupils enshire. One in seven reside. Approximately 71% of pupils reside in Aberdeen and 29% live in Aberdeenshire. One in seven in Table 3.2. To calculate this we Headlines use the direct gross expenditure and apply a ‘Type I’ indirect multiplier. pupils at RGC secondary level attend on a means-tested bursary. Table 3.2 Economic contribution – indirect

e noted

North East Catchment Area1 Indirect impact NE Outside NE Total indirect impact

385

£11.8m 251 FTE

£760,405 £1,265,430 in salary costs in employees directly £2,025,835 2016/17 employed by RGC

gross employment to 251 gross full time roles

o spe

The next phase of the analysis is to assess the induced impact of thePETERHEAD College. The induced impact is that which arises from household spending by employees of the supply chain. To calculate this we use a ‘Type II’ or induced multiplier. Table 3.3 Economic contribution – induced Induced impact NE Outside NE Total

313 net FTE Jobs

supported in the North East through RGC’s activities

£589,470 £980,967 £1,570,437 Detailed analysis Table 2.1 shows theBANCHORY economic contribution of RGC’s employment impact both in Table 3.4 Economic contribution –Total multiplier in Northwe East elsewhere. Fromimpact this analysis find that 98% of RGC’s salary spend is within t 2% going outside the region. This analysis is based on salary data for 2017/18. STONEHAVEN Total multiplier effect Indirect impact £760,405 Table 2.1 Gross economic contribution – salaries (AGCC assessment) Induced impact £589,470 Location £1,349,875 2017/18 Salaries (actual) Total NE £11,504,689 Outside NE £285,199 FTE total impact (North East) Table 3.5 below summarises the total direct, indirect and induced £11,789,888 impact of RGC’s spend within Total the region and we have calculated that the overall impact is approximately £3.33m. RGC employ 385 people, with 379 based in Aberdeen City and Aberdeenshire, Table 3.5 Total economic contribution – Expenditure in the North East In total, RGC employ 210 people on a full-time basis and 175 on a part-time bas Total Contribution Table 2.2 Gross employment NE direct £1,984,179 NE indirect Location £760,405 2017/18 jobs NE induced £589,470 NE 379 £3,334,054 Total Outside NE 6 Total 385 GVA Expenditure is a measure of output and itoften these reports present something called Gross Value added While is important to know how many people are employed by the College for (GVA) 2. Using a GVA effect multiplier again based on Government data we estimate that RGC is important to create common or comparable metrics. For employment we creat contributes £3.79m to the North East Timeeconomy. Equivalent (FTE) employment. For example:

 one full-time role is equivalent to 1 FTE  catchment two part-time roles both people week is also eq While the map above highlights RGC’s central area within the where North East, it should bework noted2.5 that days a smallper number We have calculated the FTE employment at RGC by using average salary data, of 2 pupils also travel from outside this area (e.g. from Buckie, Banff, Aberlour, and Fraserburgh). Gross value added (GVA) is the contribution to an economy comprised of the profits, business rates and wages a business or industry to calculate the corresponding number of full time equivalent employees (see Ta creates or pays. UK GDP is the total GVA from all businesses in the UK economy, plus net taxes and subsidies.

that1aWhile smallthe number map above

13

6

6 13


Where are RGC’s pupils from? 2. Employment

The maps below highlights areas within Aberdeen City and Aberdeenshire where the majority of pupils reside. Approximately 71% of pupils reside in Aberdeen and 29% live in Aberdeenshire. One in seven Headlines CASE STUDY BIGFOOT pupils at RGC secondary–level attend on a ADVENTURES means-tested bursary. Bigfoot Adventures are an outdoor activity company who have been working with RGC aroundArea 1993, 1 initially delivering an outdoor activity North East since Catchment programme, and now delivering the Duke of Edinburgh's Award. Bigfoot Adventures currently run around 60-70 days of planned work for RGC gross employment to per in salary costsininthe school and delivery of the Duke of RGC salary employees year throughdirectly a combination of training 251 gross full time spend in North East 2016/17 350 pupils are taken out in the field employed by RGC of Edinburgh's Award. Approximately roles (£11.5m) twice a year depending on their award level.

385

£11.8m 251 FTE

98%

PETERHEAD

313 net FTE Jobs

How important is your business relationship / contract with RGC? The lion’s share of our business is now with Robert Gordon’s. We ran an outdoor centre until just over 15 years ago and sold off the assets. We just took this (piece of) work with us. This is the only work that we do now.supported in the North East through RGC’s activities What impact would it have on your business if RGC was not one of your customers? We do about 60-70 days a year, mixed between in the field and coming into the school, and that Detailed analysis employs 4 additional people: administration/support plus three instructors. Table 2.1 shows the economic contribution of RGC’s BANCHORY employment impact both in the North East and elsewhere. From this analysis we find that 98% of RGC’s salary spendwith is within the North East, with only Is there anything else you’d like to say about your relationship RGC? 2% outside region. This informal analysisrelationship. is based on Isalary data fora2017/18. It’sgoing always beenthe a comfortable, think there’s level of trust and STONEHAVEN understanding developed over the years. It’s been great, I quite like it like that. Table 2.1 Gross economic contribution – salaries (AGCC assessment) Location NE Outside NE Total

2017/18 Salaries (actual) £11,504,689 £285,199 £11,789,888

RGC employ 385 people, with 379 based in Aberdeen City and Aberdeenshire, as shown in Table 2.2. In total, RGC employ 210 people on a full-time basis and 175 on a part-time basis. Table 2.2 Gross employment Location NE Outside NE Total

2017/18 jobs 379 6 385

While it is important to know how many people are employed by the College for studies of this nature, it is important to create common or comparable metrics. For employment we create a measure of Full Time Equivalent (FTE) employment. For example: one full-time role is equivalent to 1 FTE two roles where both people work days also equivalent 1 FTE While the mappart-time above highlights RGC’s central catchment area2.5 within the per Northweek East, is it should be noted thatto a small number We have calculated the FTE employment at RGC by using average salary data, this allows us of pupils also travel from outside this area (e.g. from Buckie, Banff, Aberlour, and Fraserburgh). to calculate the corresponding number of full time equivalent employees (see Table 2.3). 

1 While 

14 7 6 14


Where4.are RGC’s pupils from? Construction and2.technology Employment

e the majority of pupils The maps below highlights areas within Aberdeen City and Aberdeenshire where the majority of pupils enshire. One in seven reside. Approximately 71% of pupils reside in Aberdeen and 29% live in Aberdeenshire. One in seven Headlines A briefatexplanation pupils RGC secondary level attend on a means-tested bursary. Maintenance of buildings and equipment is an important part of everyday activity at RGC. The College has also invested a significant 1amount of capital expenditure in its buildings and facilities. These projects North East Catchment Area assessment because they are not ‘typical’ and if a large capital project are excluded from the economic was undertaken in the specific year it might overestimate the economic contribution in that year. gross employment to Nevertheless, investment is a major employees part of whatdirectly RGC does and this section outlines the major capital in salary costs in 251 gross full time investments made in recent years (2009-2017). 2016/17 employed by RGC roles

385

The projects

£11.8m 251 FTE

o spe

PETERHEAD

Junior School Building This project was the purchase of a building from Robert Gordon's University and a major refurbishment to house the new Junior School. The "Phase I" project was completed over the 2008/09supported and 2009/10 in the North East through RGC’s activities financial years with the retention paid in 2011/12.

313 net FTE Jobs

Total project expenditure: £11.2m

Detailed analysis Swimming Pool Upgrade Table 2.1 shows theBANCHORY economic contribution of RGC’s employment impact both in The existing swimming pool received a significant upgrade and this refurbishment project was carriedelsewhere. out from late 2012 mid-2013 From thistoanalysis wewith find that 98% of RGC’s salary spend is within t the retention paid the following year. 2% going outside the region. This analysis is based on salary data for 2017/18. STONEHAVEN

Total project expenditure: £1.1m

Table 2.1 Gross economic contribution – salaries (AGCC assessment)

Location 2017/18 Salaries (actual) College Heating System NE £11,504,689 The College heating system was upgraded over two phases in 2011/12 Outside £285,199 and then in 2013/14 to replace the boilers NE which were aging towards Total £11,789,888 end of their useful life and also to improve heating efficiency.

Total project expenditure: £1.3m

RGC employ 385 people, with 379 based in Aberdeen City and Aberdeenshire, total, RGC employ 210 people and on a full-time basis and 175 on a part-time bas The Wood Foundation CentreInfor Science and Technology The Craig Centre for Performing Arts Table 2.2 Gross RGC purchased the Technical Building fromemployment Robert Gordon University and carried out a major refurbishment project to provide Location 2017/18 jobs state of the art facilities for their Science, Technology, Computing and NE performing arts subjects. The "Phase II" project was carried out 379 from Outside NEin 2016/17. 6 late 2013 to mid-2015 with the retention paid Total 385 Total project expenditure: £15m

WhileSports it is important Countesswells New Synthetic Turf Pitch to know how many people are employed by the College for to create common or comparable metrics. For employment we creat A new first class sand-dressedis important surface was installed during the summer of 2017 for hockey and use at the employment. school. ThisFor example: Timetennis Equivalent (FTE) complements the existing water-based synthetic turf hockey pitch which is primarily used for competition elite performance.  and one full-time role is equivalent to 1 FTE Total project expenditure: £300,000 1  catchment two part-time roles both people week is also eq e noted that aWhile smallthe number map above highlights RGC’s central area within the where North East, it should bework noted2.5 that days a smallper number We have calculated the FTE employment at RGC by using average salary data, of pupils also travel from outside this area (e.g.Expenditure from Buckie, Banff, Aberlour, and Fraserburgh). Total (2009-2017) = £28.9m to calculate the corresponding number of full time equivalent employees (see Ta 15

6

15 6


Again isare possible to put these projects into some context by converting the expenditure into the volume Where RGC’s pupils from? 2.itthey Employment of jobs may have created. In projects City above account for £28,938,000 of expenditure which The maps below highlights areas total withinthe Aberdeen and Aberdeenshire where the majority of pupils have been delivered over a number of years. Using published data we also know that the average reside. Approximately 71% of pupils reside in Aberdeen and 29% live3in Aberdeenshire. One in seven Headlines construction employee generates around of output per year . pupils at RGC secondary level attend on a£124,000 means-tested bursary.

£11.8m 251 FTE

98%

In total we estimate that these 1projects have created around 230 short-term construction jobs. Most of North East Catchment Area these jobs were based with contractors in the North East and hence the total impact would be 430 shortterm jobs, including indirect and induced impacts. gross employment to of RGC salary in salary costs in employees directly 251 gross full time spend in North East employed by RGC through2016/17 Wider achievement technology roles (£11.5m)

385

CASE STUDY – DIGITAL TRANSFORMATION

PETERHEAD

RGC has undertaken a process of digital transformation to keep it at the leading edge educationally and socially. While initial plans were focused on providing new IT equipment to pupils that focus quickly changed following guidance and support given by local supported in the North East through RGC’s activities entrepreneur Graeme Gordon (MD of Internet for Business).

313 net FTE Jobs

As part of this transformation information technology was moved from being a central service to an enabler within the school. This included: Detailed analysis Table 2.1 shows the economic contribution of RGC’s BANCHORY employment impact both in the North East and 1. Allowing / freeing teachers to use digital technology to create better lessons and elsewhere. From this analysis we find that 98% of RGC’s salary spend is within the North East, with only understanding 2% going outside the region.and This analysisthem is based salary data technology for 2017/18.in a modern blended STONEHAVEN 2. Educating parents involving in theon role of digital environment Table 2.1learning Gross economic contribution – salaries (AGCC assessment) 3. Freeing up internet access protocols to allow pupils the responsibility to use digital technology fully Location 2017/18 Salaries (actual) 4. Creating strong links between new physical spaces such as The Wood Foundation Centre NE £11,504,689 for Science and Technology and new digital technology Outside NE £285,199 Total £11,789,888 The classroom environment has been transformed and at home pupils can work online and submit work to a virtual classroom and interact whilst out of school. This journey has helped attract new staffemploy and expertise has been within anAberdeen aspirationCity to share this best practice North2.2. RGC 385 people, with shared 379 based and Aberdeenshire, as across shown the in Table East. Importantly this process will evolve with continual improvement ensured with a new Digital In total, RGC employ 210 people on a full-time basis and 175 on a part-time basis. Strategy Group now in place. Table 2.2 Gross employment Location NE Outside NE Total

2017/18 jobs 379 6 385

While it is important to know how many people are employed by the College for studies of this nature, it is important to create common or comparable metrics. For employment we create a measure of Full Time Equivalent (FTE) employment. For example: 

one full-time role is equivalent to 1 FTE

1  thetwo roles where both people work days also equivalent 1 FTE While mappart-time above highlights RGC’s central catchment area2.5 within the per Northweek East, is it should be noted thatto a small number 3 The Scottish Annual Business Statistics data shows that a construction employee generated £124,294 of output in 2014.

We have calculated FTE RGC Banff, by using average salary data, this allows of pupils also travel from the outside thisemployment area (e.g. fromatBuckie, Aberlour, and Fraserburgh). This has been used as a proxy value given the projects were delivered in different years (see Table 2.3). to calculate the corresponding number of full time equivalent employees

us

16 7 6 16


5. City contributions 2. Employment

Where are RGC’s pupils from?

e the majority of Gordon's pupils The maps below highlights within Aberdeen Citylife and where the majority of pupils Robert College isareas a contributor to the wider of Aberdeenshire Aberdeen and Aberdeenshire. Of course enshire. One reside. in seven Approximately 71% of pupils reside in Aberdeen and 29% live in Aberdeenshire. One in seven in part this is demonstrated in itself through the economic contribution identified. It is further Headlines pupils at RGC secondary level attend on a means-tested bursary. illustrated through the role it has in educating around 1,630 young people and the future contribution they will make. However, the College is a key City Centre location and the two case studies below help show RGC contributes North Easthow Catchment Area1 more widely to others delivering for the City.

e noted

385

£11.8m 251 FTE

gross employment to in salary costs in employees directly full time 2016/17 CASE STUDY– NUARTemployed WITH by ABERDEEN INSPIRED 251 gross RGC roles The NUART festival arrived in Aberdeen in 2017 and was a festival focused on internationally renowned artists coming to leave their unique mark on our city’s walls. The event took place in April PETERHEAD and was an ambitious and bold project, the like of which Aberdeen City has not seen before.

o spe

Robert Gordon's College had already worked with Aberdeen Inspired by supporting the annual Christmas Village. As part of the NUART project Robert Gordon's College was approached early on by organiser Aberdeen Inspired to provide a ‘wall’ to be part of the festival. We interviewed supported in thethat North through RGC’s activities Adrian Watson, Chief Executive of Aberdeen Inspired, and it was clear theEast commitment of Robert Gordon's College was key to the success of the project, he said:

313 net FTE Jobs

“The endorsement of Robert Gordon's College was vital because their brand brings credibility and Detailed they have a strong reputation. We were analysis proud and privileged to have their involvement and they Table 2.1agreeing shows the economic contribution of RGC’s employment showed both bravery and foresight when toBANCHORY be an early adopter. They were right at the impact both in elsewhere. From this analysis we find that 98% of RGC’s salary spend is within t fore of the ambition to help develop the cultural offering of the City and I am in no doubt that being 2%make goingour outside the region. This analysis is based associated with their brand helped job much easier to attract others to lendon ussalary their data for 2017/18. STONEHAVEN properties.” Table 2.1 Gross economic contribution – salaries (AGCC assessment) The commitment of Robert Gordon's College helped NUART deliver an estimated net Location 2017/18 Salaries (actual) economic contribution of £158,599* and increased pride in the City of Aberdeen reported by NE £11,504,689 80% of respondents to a recent survey. Outside NE £285,199 RGC is also a levy payer and fullyTotal supports the work of Aberdeen Inspired. £11,789,888

RGC employ 385 people, with 379 based in Aberdeen City and Aberdeenshire, In total, RGC employ 210 people on a full-time basis and 175 on a part-time bas Table 2.2 Gross employment Location NE Outside NE Total

2017/18 jobs 379 6 385

While it is important to know how many people are employed by the College for is important to create common or comparable metrics. For employment we creat Time Equivalent (FTE) employment. For example:

one full-time role is equivalent to 1 FTE * Based on visitor volume of 5,000, although accurate visitor numbers were not recorded  catchment two part-time roles both people week is also eq While the map above highlights RGC’s central area within the where North East, it should bework noted2.5 that days a smallper number We have calculated the FTE employment at RGC by using average salary data, of pupils also travel from outside this area (e.g. from Buckie, Banff, Aberlour, and Fraserburgh).

that1aWhile smallthe number map above

to calculate the corresponding number of full time equivalent employees (see Ta

17

6

6 17


Where are RGC’s pupils from? 2. Employment

The maps below highlights areas within Aberdeen City and Aberdeenshire where the majority of pupils reside. Approximately 71% of pupils reside in Aberdeen and 29% live in Aberdeenshire. One in seven Headlines pupils at RGC secondary ABERDEEN level attend on a means-tested bursary. CASE STUDY– ART GALLERY Aberdeen Art Gallery is currently undergoing a major renovation with a capital cost of over £30m. 1 The Gallery backs onto Area the College and the cooperation of the Gallery’s neighbour has been key to North East Catchment the success of the development programme. gross employment to of RGC salary in salary costs in employees directly 251 gross fullapproached time Early in the lifecycle of the project Robert Gordon College was to identify if access spend in North East 2016/17 employed by RGC could be granted for the renovation works, an agreementroles was also reached where the College (£11.5m) offered ‘lay-down’ space in the car park area. Over time that arrangement has evolved and the College has offered further support. Iain Reid from Aberdeen City Council said: PETERHEAD

385

£11.8m 251 FTE

98%

“The project couldn’t realistically have gone ahead on the same scale or scope without Robert Gordon's College. Without their cooperation the project costs could have risen by 25% to 50% and this may have meant it was not viable or would have been significantly reduced in scope.”

313 net FTE Jobs

supported in the North East through RGC’s activities Based on the comments above the partnership with the College has had an impact of between £7.5m and £15m and has ultimately secured the future of Aberdeen Art Gallery as a high class visitor attraction. Detailed analysis Table 2.1 shows the economic contribution of RGC’s BANCHORY employment impact both in the North East and elsewhere. From this analysis we find that 98% of RGC’s salary spend is within the North East, with only 2% going outside the region. This analysis is based on salary data for 2017/18. STONEHAVEN Table 2.1 Gross economic contribution – salaries (AGCC assessment) Location NE Outside NE Total

2017/18 Salaries (actual) £11,504,689 £285,199 £11,789,888

RGC employ 385 people, with 379 based in Aberdeen City and Aberdeenshire, as shown in Table 2.2. In total, RGC employ 210 people on a full-time basis and 175 on a part-time basis. Table 2.2 Gross employment Location NE Outside NE Total

2017/18 jobs 379 6 385

While it is important to know how many people are employed by the College for studies of this nature, it is important to create common or comparable metrics. For employment we create a measure of Full Time Equivalent (FTE) employment. For example: one full-time role is equivalent to 1 FTE two roles where both people work days also equivalent 1 FTE While the mappart-time above highlights RGC’s central catchment area2.5 within the per Northweek East, is it should be noted thatto a small number We have calculated the FTE employment at RGC by using average salary data, this allows us of pupils also travel from outside this area (e.g. from Buckie, Banff, Aberlour, and Fraserburgh). to calculate the corresponding number of full time equivalent employees (see Table 2.3). 

1 While 

18 7 6 18


Where6. are RGC’sbenefit pupils from? Employment Public and2.public sector savings

e the majority of pupils The maps below highlights areas within Aberdeen City and Aberdeenshire where the majority of pupils enshire. One in seven reside. Approximately ofwe pupils reside in Aberdeen and 29% in Aberdeenshire. One in seven Using data for a typical71% year, can estimate financial savings to live Aberdeen and Aberdeenshire’s Headlines 4 pupils at RGC secondary level attend on a means-tested bursary. education budgets arising from the schooling provided at Robert Gordon’s College . Our analysis shows the equivalent cost of educational provision across the public sector for pupils at RGC would be North Area1 is summarised below for the 1,600 pupils that attend RGC. £9.5m East each Catchment year. This analysis

e noted

385

£11.8m 251 FTE

Table 5.1 Total economic contribution – Expenditure in the North East gross employment to in salary costs in employees directly 251 gross full time 2016/17 employed by RGC No. of places Benefit to Aberdeenroles City and Aberdeenshire Junior School

500

Senior School

1,100

TOTAL

1,600

o spe

£2,333,500

PETERHEAD

£7,177,500

313 net FTE Jobs £9,511,000

supported in the North East through RGC’s activities

RGC has also been able to demonstrate a strong long term commitment to inclusive educational provision. In 2016/17 approximately £1.5m was available for their Senior School Bursary Programme analysis is delivered with support from the Aberdeen supporting pupils across S1 to S6.Detailed This programme Table 2.1 shows economic of RGC’s employment impact both in BANCHORY Endowments Trust, other trusts and funds, and thethe College’s owncontribution endowments. elsewhere. From this analysis we find that 98% of RGC’s salary spend is within t These educational savings and Bursaries important elements of analysis the charitable function of RGC. 2% goingare outside the region. This is based on salary dataOne for 2017/18. STONEHAVEN in seven senior school pupils are receiving Bursary support Table 2.1 Gross economic contribution – salaries (AGCC assessment) Further analysis of the Bursary Awards granted by RGC shows that, of the 142 Bursaries provided in Location Salaries (actual) considering Aberdeen City alone, 2016/17, 49% reach the most deprived areas in the region5. When2017/18 NE individuals from the areas £11,504,689 59% of the 117 Bursaries are supporting most deprived areas. The table below summarises the overall assessment Bursaries provided. £285,199 Outsideof NE Total £11,789,888 Post Code No Pupils receiving Bursaries Deprivation Area RGC employ 385 people, with 379 based in Aberdeen City and Aberdeenshire, From an area of multiple 69 49% In total, RGC employ 210 people on a full-time basis and 175 on a part-time bas deprivation Not from an area of multiple deprivation Overall Totals

Table 2.2 Gross 73 employment Location NE 142 Outside NE Total

51% 2017/18 jobs 379 100% 6 385

While it is important to know how many people are employed by the College for is important to create common or comparable metrics. For employment we creat Time Equivalent (FTE) employment. For example: 

one full-time role is equivalent to 1 FTE

Based on the understanding that spend per pupil across Scotland in 2012/13 is £6,525 per secondary pupil and  catchment two part-time roles both people week is also eq While the abovepupil highlights central area within the where North East, it should bework noted2.5 that days a smallper number £4,667 permap primary (AuditRGC’s Scotland – School Education Report 2014) We have calculated the FTE employment at RGC by using average salary data, 5 pupils also travel from outside this area (e.g. from Buckie, Banff, Aberlour, and Fraserburgh). of Based on overall index of deprivation, 9 of Aberdeen City’s 283 data zones are among the most deprived 15% of to calculate the corresponding number of full time equivalent employees (see Ta all Scottish data zones 4

that1aWhile smallthe number map above

19

6

6 19


2. Employment Headlines

385

employees directly employed by RGC

£11.8m 251 FTE in salary costs in 2016/17

gross employment to 251 gross full time roles

98%

of RGC salary spend in North East (£11.5m)

313 net FTE Jobs

supported in the North East through RGC’s activities

Detailed analysis Table 2.1 shows the economic contribution of RGC’s employment impact both in the North East and elsewhere. From this analysis we find that 98% of RGC’s salary spend is within the North East, with only 2% going outside the region. This analysis is based on salary data for 2017/18. Table 2.1 Gross economic contribution – salaries (AGCC assessment) Location NE Outside NE Total

2017/18 Salaries (actual) £11,504,689 £285,199 £11,789,888

RGC employ 385 people, with 379 based in Aberdeen City and Aberdeenshire, as shown in Table 2.2. In total, RGC employ 210 people on a full-time basis and 175 on a part-time basis. Table 2.2 Gross employment Location NE Outside NE Total

2017/18 jobs 379 6 385

While it is important to know how many people are employed by the College for studies of this nature, it is important to create common or comparable metrics. For employment we create a measure of Full Time Equivalent (FTE) employment. For example:  one full-time role is equivalent to 1 FTE  two part-time roles where both people work 2.5 days per week is also equivalent to 1 FTE We have calculated the FTE employment at RGC by using average salary data, this allows us to calculate the corresponding number of full time equivalent employees (see Table 2.3). 7


Where are RGC’s pupils from? Appendix I

The maps below highlights areas within Aberdeen City and Aberdeenshire where the majority of pupils

Methodology reside. Approximately 71% of pupils reside in Aberdeen and 29% live in Aberdeenshire. One in seven

 at AsRGC explained we chose a ‘typical which was 2015/16 pupils secondary level attend onyear’ a means-tested bursary. unless identified.  The approach employed for this economic analysis is detailed below. 1 were derived from salary information for 2017/18 and the total Employee Area counts North EastoCatchment employee numbers were calculated for the North East and outside the North East. The percentage proportions of each group were used to allocate employee expenditure (salaries and other HR costs) to each region. o Expenditure was detailed by itemised categories and was allocated to the relevant Standard Industrial Classification (2013) codes: Construction, Building & landscape PETERHEAD services, Electricity, services, Financial services, Insurance, Education, Computer Cleaning, Post & courier, Travel, Business support services, Other professional services, Paper & paper products, Printing, Furniture, Sports & recreation, Food & beverage services, Public administration, Publishing services. o After spending was disaggregated we used Type I and Type II output multipliers to calculate the indirect and induced impact rather than simply apply an aggregate multiplier to the total spending. o The location of RGC’s supplier spend data for 2016 allowed us to calculate the proportions of spend allocated within the North East and spend which ‘leaked’ outside of the region. We calculated that 38% of supplier spend remained in the region with a BANCHORY ‘leakage’ rate of 62%. These calculations enabled us to apportion spend to the itemised categories in the Management Accounts forSTONEHAVEN 2015/16 and apply the relevant multipliers. STONEHAVEN

Key assumptions

This report has used the following key assumptions: o o

o

Expenditure was derived from Management Accounts for the 2015/16 financial year, discounting any costs associated with staffing and employment as these costs were included in the employment impact. Employee counts are based on salary information for 2017/18. Full time equivalent numbers were calculated by dividing the salary of each part-time member of staff by the overall average full-time salary, and then taking a total count of their FTE scores. For example, this would mean that if the average full-time salary were £38,000 then a parttime member of staff with a £38,000 salary would have a FTE score of 1 and a part-time member of staff with a £19,000 salary would have a FTE score of 0.5. All multipliers used are provided by the Scottish Government and no location quotients were applied.

1 While

While the map above highlights RGC’s central catchment area within the North East, it should be noted that a small number of pupils also travel from outside this area (e.g. from Buckie, Banff, Aberlour, and Fraserburgh).

6 22 22


Where are RGC’s pupils from? Appendix II

The maps below highlights areas within Aberdeen City and Aberdeenshire where the majority of pupils

Glossary reside. Approximately 71% of pupils reside in Aberdeen and 29% live in Aberdeenshire. One in seven We’ve tried to keep the language in this as simple as possible but it’s almost inevitable that pupils at RGC secondary level attend onreport a means-tested bursary. we need to use some technical terms. Some of the terms we have used are explained below.

North East– Catchment Bursaries A bursary is Area an award made to a pupil to provide financial assistance towards full or part of part of the costs of their tuition fees. Robert Gordon's College offers free places and reduced fee places to pupils every year for entry into Secondary 1. Approximately £1.5m was available for our Senior School Bursary Programme in 2016-2017 enabling us to award 24 S1 bursaries to pupils joining the College in August 2017. These Bursaries are awarded after jointly assessing financial need and academic merit. 1

PETERHEAD of the impact that are lost to Gross – This is the initial contribution before we begin considering elements the spatial area through leakage and other factors.

Leakage – We allow for ‘leakage’ when money or employment is lost to the spatial area. For example if a service is bought outside Aberdeen we remove this from the net impact because it has ‘leaked’ from the area Multiplier effect – The multiplier effect is the formal name for the ‘ripple effect’. Multiplier effects are created when money is spent in the economy on (say) a supplier and then that supplier spends with another supplier. This type of multiplier effect is called the ‘indirect impact’. The other type of multiplier effect is created when households spend as a result of employment generated by suppliers, this is called BANCHORY the ‘induced impact’. STONEHAVEN

STONEHAVEN Net – The net impact is the total contribution after all non-additional elements are removed (e.g. leakage) and the all addition impacts (e.g. multiplier effect) are added.

Spatial area – When we undertake economic contribution studies we always have to define the (geographical) area in which impacts are felt. The spatial area for this study is Aberdeen City and Aberdeenshire The approach that you will read is as follows: Total expenditure • Salary / staff • Non-salary

Split into

Salary / staff • gross North East • gross outside NE

&

Non-Salary • gross North East • gross outside North East

Plus the multiplier effect Gross salary / staff NE • plus indirect impact • plus induced impact • equals total net impact

&

Non-Salary NE • plus indirect impact • plus induced impact cost

Plus any

Other impacts

• equals total net impact

1 While

While the map above highlights RGC’s central catchment area within the North East, it should be noted that a small number of pupils also travel from outside this area (e.g. from Buckie, Banff, Aberlour, and Fraserburgh).

6 24 24


Where are RGC’s pupils from? Contact

The maps below highlights areas within Aberdeen City and Aberdeenshire where the majority of pupils

Robert Gordon’s College reside. Approximately 71% of pupils reside in Aberdeen and 29% live in Aberdeenshire. One in seven

pupils at RGC secondary level attend on a means-tested bursary. Laura Presslie Schoolhill North East Catchment Area1 Aberdeen Scotland AB10 1FE Tel: 01224 611236 E-mail: l.presslie@rgc.aberdeen.sch.uk www.rgc.aberdeen.sch.uk

PETERHEAD

Research queries

James Bream Aberdeen & Grampian Chamber of Commerce The Hub Aberdeen Energy Park AB23 8GX Tel: 01224 343930 Email: Research@agcc.co.uk https://www.agcc.co.uk/

BANCHORY

STONEHAVEN

1 While

While the map above highlights RGC’s central catchment area within the North East, it should be noted that a small number of pupils also travel from outside this area (e.g. from Buckie, Banff, Aberlour, and Fraserburgh).

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Where are RGC’s Appendix IV pupils from?

The maps below highlights areas within Aberdeen City and Aberdeenshire where the majority of pupils

About Aberdeen & Grampian Chamber of Commerce reside. Approximately 71% of pupils reside in Aberdeen and 29% live in Aberdeenshire. One in seven Aberdeen & Grampian Chamber of Commerce were commissioned pupils at RGC secondary level attend on a means-tested bursary. by Robert Gordon’s College to conduct this Economic Impact Assessment and produce this report.

North East Catchment Area of Commerce is the North East’s leading business membership Aberdeen & Grampian Chamber organisation and the largest Chamber in Scotland. 1

Representing more than 1,250 organisations collectively employing 125,000+ people across all sectors, we work locally, nationally and internationally to support businesses from sole traders to multinational corporations in a myriad of ways: PETERHEAD

   

From talking up the area and celebrating business success to lobbying for necessary change From equipping the region's workforce with the skills to succeed to issuing export documents for goods worth in excess of half a billion pounds every year From sourcing research and intelligence on our operating environment to providing unrivalled opportunities for networking, business development and best practice exchange And much more

About the Research Team

Within our team we have people who love to gather, interrogate and interpret data, before telling you a BANCHORY story in simple words about what it means and what you need to do with it. STONEHAVEN As an extension to our client’s team we’re here to deliver on our promises and fit to your business needs.

We use our expertise to decide how we find the answer to our client’s questions and ensure that by working with us our clients have access to: 

A team that has completed over 100 projects in the last three years

Expert staff who are registered with the Market Research Society

Great value – members receive a 50% reduction from commercial rates

People who can transform complex data into simple, insightful stories and make the process fun, exciting and engaging for you

If you have any queries about this report or about the research services available at the Aberdeen & Grampian Chamber of Commerce, please contact us at research@agcc.co.uk.

1 While

While the map above highlights RGC’s central catchment area within the North East, it should be noted that a small number of pupils also travel from outside this area (e.g. from Buckie, Banff, Aberlour, and Fraserburgh).

6 28 28


Where are RGC’s pupils from? Contact

2. Employment

e the majority of pupils The maps below highlights areas within Aberdeen City and Aberdeenshire where the majority of pupils Robert Gordon’s College reside in Aberdeen and 29% live in Aberdeenshire. One in seven enshire. One in seven reside. Approximately 71% of pupils Headlines pupils at RGC secondary level attend on a means-tested bursary. Laura Presslie Schoolhill North East Catchment Area1 Aberdeen Scotland gross employment to AB10 1FE in salary costs in employees directly 251 gross full time 2016/17 employed by RGC roles Tel: 01224 611236 E-mail: l.presslie@rgc.aberdeen.sch.uk PETERHEAD www.rgc.aberdeen.sch.uk

e noted

385

£11.8m 251 FTE

o spe

313 net FTE Jobs

Research queries

James Bream supported in the North East through RGC’s activities Aberdeen & Grampian Chamber of Commerce The Hub Aberdeen Energy Park AB23 8GX Detailed analysis Table 2.1 shows theBANCHORY economic contribution of RGC’s employment impact both in Tel: 01224 343930 elsewhere. From this analysis we find that 98% of RGC’s salary spend is within t Email: Research@agcc.co.uk 2% going outside the region. This analysis is based on salary data for 2017/18. STONEHAVEN https://www.agcc.co.uk/ Table 2.1 Gross economic contribution – salaries (AGCC assessment) Location NE Outside NE Total

2017/18 Salaries (actual) £11,504,689 £285,199 £11,789,888

RGC employ 385 people, with 379 based in Aberdeen City and Aberdeenshire, In total, RGC employ 210 people on a full-time basis and 175 on a part-time bas Table 2.2 Gross employment Location NE Outside NE Total

2017/18 jobs 379 6 385

While it is important to know how many people are employed by the College for is important to create common or comparable metrics. For employment we creat Time Equivalent (FTE) employment. For example:

 one full-time role is equivalent to 1 FTE  catchment two part-time roles both people week is also eq While the map above highlights RGC’s central area within the where North East, it should bework noted2.5 that days a smallper number We have calculated the FTE employment at RGC by using average salary data, of pupils also travel from outside this area (e.g. from Buckie, Banff, Aberlour, and Fraserburgh). to calculate the corresponding number of full time equivalent employees (see Ta

that1aWhile smallthe number map above

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2. Employment Headlines

385

employees directly employed by RGC

£11.8m 251 FTE in salary costs in 2016/17

gross employment to 251 gross full time roles

98%

of RGC salary spend in North East (£11.5m)

313 net FTE Jobs

supported in the North East through RGC’s activities

Detailed analysis Table 2.1 shows the economic contribution of RGC’s employment impact both in the North East and elsewhere. From this analysis we find that 98% of RGC’s salary spend is within the North East, with only 2% going outside the region. This analysis is based on salary data for 2017/18. Table 2.1 Gross economic contribution – salaries (AGCC assessment) Location NE Outside NE Total

2017/18 Salaries (actual) £11,504,689 £285,199 £11,789,888

RGC employ 385 people, with 379 based in Aberdeen City and Aberdeenshire, as shown in Table 2.2. In total, RGC employ 210 people on a full-time basis and 175 on a part-time basis. Table 2.2 Gross employment Location NE Outside NE Total

2017/18 jobs 379 6 385

While it is important to know how many people are employed by the College for studies of this nature, it is important to create common or comparable metrics. For employment we create a measure of Full Time Equivalent (FTE) employment. For example:  one full-time role is equivalent to 1 FTE  two part-time roles where both people work 2.5 days per week is also equivalent to 1 FTE We have calculated the FTE employment at RGC by using average salary data, this allows us to calculate the corresponding number of full time equivalent employees (see Table 2.3). 7


Where are RGC’s pupils from?

The maps below highlights areas within Aberdeen City and Aberdeenshire where the majority of pupils reside. Approximately 71% of pupils reside in Aberdeen and 29% live in Aberdeenshire. One in seven pupils at RGC secondary level attend on a means-tested bursary.

North East Catchment Area1

PETERHEAD

BANCHORY

STONEHAVEN

The Hub, Exploration Drive, Aberdeen Energy Park, Bridge of Don, Aberdeen, AB23 8GX

1 While

While the map above highlights RGC’s central catchment area within the North East, it should be noted that a small number of pupils also travel from outside this area (e.g. from Buckie, Banff, Aberlour, and Fraserburgh).

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Profile for Robert Gordon's College

2017 AGCC RGC Economic Impact Report  

Robert Gordon’s College commissioned the Research Team at Aberdeen & Grampian Chamber of Commerce to assess the total impact on the North Ea...

2017 AGCC RGC Economic Impact Report  

Robert Gordon’s College commissioned the Research Team at Aberdeen & Grampian Chamber of Commerce to assess the total impact on the North Ea...