Words Shaina Ganapathy
Around 65% of India’s population is under the age of 35, highlighting the country’s enormous potential as the skilling and innovation capital of the world. However, as we see a greater integration of technology across sectors and the job market evolving accordingly, the skill gap widens.
While India has been recognised as the global hub for IT outsourcing (thanks to certain cost advantages and higher digital competencies), the rapid technological shifts induced by the COVID-19 pandemic intensified the competition for tech talent. With many companies reporting difficulties in hiring the right talent due to the digital skill gap, it is important to understand why in order to create a future-proof talent pool and economy.
How the Skill Gap Impacts Businesses
Recent studies indicate that the country’s workforce lacks the necessary qualifications to meet the demands of the skilled labour market. Approximately two-thirds of workers fall short of the requirements for current job openings. This scarcity leaves organisations struggling to fill positions.
Employers also find themselves having to make significant investments in training and development, even for basic positions, while executives are faced with the daunting task of finding entry-level employees who possess the necessary skill set to thrive in their roles.
We can see a heightened demand for skilled labour in the technology sector; however, other sectors are witnessing a skill gap too. The hospitality, agricultural, manufacturing, healthcare, and more industries are adopting new technologies at a rapid rate, which requires new or different skill sets.
The Challenges
Besides the rapid technological changes, there are a variety of reasons for India’s widening skill gap. This includes a disconnect between what is taught in the traditional education system and the kinds of skills required in today’s industries. Often, there is a focus more on theoretical knowledge than practical skills needed in the workforce. Rote learning, a mainstay of the traditional education system, doesn’t enhance critical thinking or problem-solving skills—aptitudes that are essential in most industries and workplaces. Soft skills aren’t given enough importance as well. Communication, creative thinking, leadership, and teamwork are critical in the modern job market.
Moreover, in comparison to an academic education, vocational training programmes are not as widespread or well-developed. A large part of the country doesn’t have access to vocational training that would equip young people with the practical skills desired by employers. This is exacerbated by disparities in the quality of education across different regions.
Even among job aspirants who receive higher education, there can be a mismatch between the skills they acquire and those in demand, resulting in underemployment or unemployment despite having degrees.
Government Initiatives
The National Education Policy (NEP) 2020 was introduced to create an education system that aims to move away from rote learning and towards a system that focuses on teaching children how to learn. It emphasises the importance of multidisciplinary, holistic, flexible, outcome-oriented, and integrated learning while prioritising vocational education.
The government has instituted several other initiatives to bridge the skill gap, the most prominent being the Skill India Mission. Launched in 2015, the initiative endeavours to provide over 40 crore Indians with training opportunities across diverse trades and sectors. Other government projects include the Pradhan Mantri Kaushal Vikas Yojana, which grants craftsmanship apprenticeships, and the Atal Innovation Mission, which supports entrepreneurship.
Contributing to Long-Term Success
Working with the government, corporates can augment these efforts through Corporate Social Responsibility (CSR) and employer initiatives. In addition to supporting government schools with safe learning environments, life skills, and educational initiatives, companies have the expertise and resources to scale these endeavours.
Some of the ways in which corporates have been working to bridge the gap in sectors facing skill shortages include partnering with educational institutions to design and implement curriculums that align with industry requirements. Further, they have sponsored skill development centres within colleges. Internships and on-the-job training opportunities, centred around hands-on learning, are another way for students and recent graduates to develop relevant skills.
The Karnataka Skill Development Corporation (KSDC), for example, is partnering with corporates to conceptualise and build a state-of-the-art skill enhancement campus in Bengaluru. They intend to identify the most in-demand job roles and reach out to corporate partners for support with curriculum design, training, and job placement.
Through employer initiatives, investing in technology and innovation aimed at upskilling the workforce can help address the digital skill gap. Setting up research labs, sponsoring hackathons, or providing access to online learning platforms for employees can encourage this.
In supporting the next generation to create their own employment opportunities and contribute to economic growth, especially those from marginalised communities, entrepreneurship development programmes can empower individuals through mentorship, funding, and incubation. A recent survey showed that 80% of rural youth in India are yet to take up vocational training or skilling programmes. Corporates can play a large role in reducing the urban-rural divide through funding vocational training centres based in rural areas or promoting rural entrepreneurship.
Finally, companies can leverage their expertise to engage with local communities to raise awareness about the importance of skill development and career opportunities. Organising workshops, career counselling sessions, and job fairs connect youth with employment opportunities.
Collaboration is key to bridging the skill gap. It requires sustained efforts and coordination between educational institutes, industries, and the government to reduce unemployment and underemployment driven by the lack of a skilled workforce. Building robust institutions that mainstream vocational training and skill development can lead to overall economic and social progress. Corporates have a unique role to play in this, as they understand the differences between desired new-age skills and available skills. India has a vast amount of untapped talent; CSR can help them prepare for the new competitive and dynamic world of work.
About the Author
Shaina Ganapathy – Head of Community Outreach, Embassy Group
(India CSR)
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