Massive Skilling is the Only Solution to India’s Talent Crisis

This article was originally published in Times of India earlier this month.

60% of Indian companies have reported talent shortages. As per Gartner, the once-thriving IT industry now views talent as the most significant barrier (65%) to adopting emerging technology, including AI, big data, IoT, cloud computing, cybersecurity, robotics and more—and it is estimated that the demand for these technologies will rise 20-fold by 2024.

The talent crisis is further exacerbated by the rising unemployment in Indian graduates, where almost 60% of technical graduates currently don’t have a job. The latest India Skills Report (ISR) attributes this widening gap to the lack of skills that are in-demand today. Of the 8 million yearly graduates, roughly 50,000 emerge equipped with the ‘future skills’ from a handful of elite institutions, as most engineering colleges lack the talent in faculty as well.

Further, the ‘war for talent’ is impacting business growth and competitiveness as well. The ‘Great Resignation’ phenomenon has led thousands to quit their jobs, and annual attrition has skyrocketed to almost 30% across industries in India. The demand for big data and AI computing has outstripped talent supply seven-times, forcing companies to retain current talent through massive hikes that have put profit-making in a dire situation.

In a recent survey conducted by Benori, almost 40% of corporate executives felt that the root cause of our talent crisis is our skilling system. To bridge this ever-widening gap, a lot needs to be done, and done quickly. Here is a three-part solution to solve our current talent crisis:

1. Revamp Education System

The National Statistical Organisation’s 2020 report revealed that “only 10.6% of the Indian population aged above 15 years had successfully completed a graduate degree” when India boasts of the largest education infrastructure in the world, with almost 1,000 universities and 40,000 colleges operating in the country. Clearly, the change potential is high, and India’s present school curriculum is ill-suited for producing a generation that is readily employable. In fact, there is much to learn from Germany’s recent “Digital Education Initiative” that seeks to connect teaching and digital skill acquisition at its core.

At the primary level, the education philosophy and expectations need to evolve—from rote memorization to problem-solving, from purely theoretical to practical—to enable today’s students to become effective workers and changemakers of tomorrow. At the higher education level, virtual (synchronous and asynchronous), experiential and multi-disciplinary learning will continue to be game-changers. Universities need to collaborate rather than compete with each other, for the end-goal is the same, and introduce innovative content, delivery mechanisms and pedagogy that will make both our students and colleges internationally competitive. Further, an increased focus on social interactions, group work and soft skill building will not only help in developing effective workers, but effective human beings.

2. Train & Hire

Under this model, the role of EdTechs become much more expansive, by collaborating with their B2B clients across industries to create online programs that are designed to bridge the current skill and talent gap. EdTechs deliver the training content whereas partner organisations offer industry context, live projects and internships, which is a win-win for both employers and job seekers. In a competitive job market that demands past experience, even from freshly minted graduates, applying candidates will boast of industry experience, right from the beginning of their academic programs.

There are several EdTech companies that are already offering a similar set-up for enterprises to upskill their employees, recruit new talent, implement internal learning programs, and even set-up internal knowledge academies. With the widespread adoption of the ‘train & hire’ methodology, the “war for talent” will see a massive downturn in the coming decades.

3. Hire & Train

The ‘Hire & Train’ model has been in practice from the start of the 21st century, but the talent crisis demands a massive uptick in adopters, both from the employer and employee standpoint. Niche L&D programs need to be developed, in conjunction with EdTech experts, to not just help with content creation, but also in delivery, through personalised learning journeys that address specific growth needs of employees. From an Indian standpoint, employees prefer programs that are curated, contextualised, instructor-led and convenient to attend, and the onus is on industry leaders to devise ways to meet employee expectations that will accelerate program completion.

As per a recent Benori survey, 22% of executives felt that employees need to be constantly motivated to keep on learning. While personal aspirations of a stable, satisfying career will stay on with the employees, organisations must assume responsibility to drive a culture of “lifelong learning” and “upskilling” for it will be the sole driver and adopter of sustainable change in the coming years.

So, education as we know it, as the chief agent of social mobility and our beacon of hope, needs this radical three-pronged shift to live up to its new potential for the 21st century, that will not just resolve India’s talent crisis, but also accelerate us and our people to the top of the growth chain.

For more insights on how to address any talent and skill gaps in your organisation, please reach out to Benori’s Talent Strategy Desk at info@benoriknowledge.com.