Teamlease Degree Apprenticeship Highlights ROI on Apprenticeship and Provides Vast Insights into the People Supply Chain
પ્રતિકાત્મક
30th, May 2024, New Delhi: TeamLease Degree Apprenticeship, India’s premier privately owned Degree Apprenticeship program from the house of TeamLease Services, convened a distinguished event titled “People Supply Chain Innovation: Interpreting the ROI in Apprenticeship” at the ITC Narmada, Ahmedabad. The event aimed to address the critical challenges in talent acquisition and delve into the substantial returns on investment (ROI) from apprenticeships and work-based learning programs.
Gujarat has become a top destination for domestic and international investments, ranking among India’s top 3 in Manufacturing FDI. The state has a strong labor force participation rate, lower unemployment, and an entrepreneurial spirit, positioning it for economic growth and job creation.
However, due to technological disruptions and demographic diversity, organizations face challenges in talent acquisition, engagement, and development. Strategies discussed include developing internal talent, implementing Managed Training Services and Hire-Train-Deploy models, and outsourcing apprenticeship management. Apprenticeships have shown a 3X ROI over three years, reducing talent acquisition costs by 50% and boosting business productivity by 20-25%.
The dialogue also addressed the need for structural reforms to enhance the pace of skill development in India, emphasizing the symbiotic relationship between functional skills and theoretical knowledge. Rather than treating skill development and education as distinct entities, a concerted effort to enhance youth employability through education-embedded work-based programs was underscored as imperative, with the potential to bolster our human capital dividend significantly.
Specific measures, such as the tripartite agreement model involving academia, industry, and youth as key stakeholders and providing lifelong learning opportunities for upskilling and reskilling through apprenticeships, were thoroughly deliberated. Additionally, a detailed examination was given to education pathways mirroring extended apprenticeship programs. Such a collaborative framework is essential for bridging skill gaps and preparing a workforce for the future, particularly amidst rapid technological advancements and substantial economic transformation.
A.R. Ramesh, CEO of TeamLease Degree Apprenticeship, highlighted the urgent need to address the challenges in creating a robust talent pipeline. He emphasized the mismatch between required and available skills, rising hiring and training costs, and increasing turnover rates. With India expected to contribute a quarter of the world’s new workforce in the next decade and AI set to disrupt millions of jobs, developing a skilled workforce is crucial.
Gujarat, despite being a top performer in FDI and economic indicators, needs to increase its apprenticeship adoption to build a productive talent pool. Gujarat is currently one of the top 3 states in terms of apprentice adoptions, it has only added apprentices at a 16% annual rate in the last 4 years, significantly below the national average of 35-40% and far below other economic powerhouses (Maharashtra’s adoption rate was 63% for the same period, Tamil Nadu’s 65%, Karnataka’s 54% and UP’s 54%). He also discussed the potential of Managed Training Services and Hire-Train-Deploy Models to enhance the productivity of apprentices and fresh recruits.
Sumit Kumar, Chief Strategy Officer at TeamLease Degree Apprenticeship, highlighted the significant growth and investments in Gujarat’s key sectors such as EV, Semicon, Pharma, Healthcare, and GCC. The state has seen a 700% increase in EV demand over the last 3 years and a substantial expansion in charging infrastructure.
Additionally, Gujarat accounts for nearly 30% of India’s pharma exports. It is set to manufacture India’s first semiconductor chip this year, reflecting the maturity of the state’s semiconductor sector with cumulative investments exceeding ₹1.6 lakh crores last year. GIFT City in Ahmedabad is becoming a key GCC hub in India, with 400+ offices employing 26,000 people. However, talent availability and productivity have become significant challenges.
He emphasized the need to scale up apprenticeship adoption, as it offers a proven pathway to creating a sustainable talent supply chain. Gujarat’s industries stand to gain significantly from talent development interventions like apprenticeships, which can enhance overall productivity and growth.
Dhriti Prasanna Mahanta, Business Head and Vice President at TeamLease Degree Apprenticeship, emphasized the pivotal role of apprenticeships in augmenting organizational efficiency and talent management. These programs yield substantial cost savings by refining talent acquisition and retention processes, signifying a strategic shift towards nurturing internal talent.
Additionally, apprenticeships provide a remarkable 3X return on investment by optimizing costs, establishing sustainable pipelines, and enhancing productivity. The shifting prominence of specific industries in Gujarat is evidenced by the changing proportions of apprentices engaged in each industry.
In 2019-20, BFSI accounted for 29%, Life Sciences for 13%, Retail for 12%, and Gems and Jewelry for 10%. By 2023-24, Automotive stood at 15%, Management and entrepreneurship at 11%, IT/ITeS at 10%, and Chemicals at 8%. Expanding apprenticeship programs in Gujarat is crucial for cost savings, increased productivity, scaling up the skilling ecosystem to drive industry growth, and nurturing the state’s entrepreneurial spirit.
