Addressing the Skill Gap in India Through Education Reform

18 of May, 2023

Are you an HR manager or business owner based in India? If so, you may have noticed one big problem facing the Indian workforce: the growing skill gap.

The skill gap is a major issue in many nations, but it’s particularly severe in India. While an increasing number of employers are asking for skilled candidates, the pool of qualified professionals is dwindling. This mismatch is causing problems for businesses, and it’s an obstacle to economic growth.

But don’t worry—it isn’t all bad news! You can develop strategies to tackle this issue head on. In this article, we will go over the challenges of the skill gap in India and provide tips on how to address them.

With Sesame’s HR software, you’ll be able to identify and close your organization’s skill gaps more efficiently than ever before with a killer recruitment solution! Keep reading to discover.

The Severity of India’s Skill Gap

The skill gap in India is cause for serious concern. According to recent studies, India’s employable population is far too low to meet the demands of the skilled labor market. In fact, about two-thirds of the country’s workforce isn’t qualified for current job openings! With such a shortage of qualified individuals, organizations are struggling to fill positions and business owners are facing a real challenge.

It’s not just the quantity of skilled labor that’s lacking. The quality of available talent is also wanting. Recent research shows that only 33% of workers in India possess the skills employers seek most. This further complicates matters as finding capable workers is becoming increasingly difficult.

The growing skill gap in India presents many challenges for businesses. Employers are forced to invest heavily in training and development for even basic jobs, while executives must work hard to find entry level employees who possess the necessary skillset to succeed in their role.

To make matters worse, talent acquisition costs have risen by over 10% since 2016 due to a lack of qualified applicants—a major blow for any business owner or HR manager looking to recruit on a budget.

Industries Most Affected by the Skill Shortage

Have you ever experienced the frustration of not having enough skillful workers to fill certain roles? If so, you’re not alone. In India, there is a growing “skill gap” where industries are facing an increasing shortage of skilled workers to fill the needs of their labor force. This shortage affects a number of industries, from technology and engineering to agriculture and hospitality.

Specifically, the technology sector has seen a sharp rise in the demand for skilled labor due to the rapid advancement of digital transformation in India. But this sector is not alone. The hospitality industry is also feeling the pinch due to a lack of properly trained professionals.

With the flourishing tourism industry in India, more hotels and restaurants are popping up than ever before—creating a high demand for personnel who can provide quality customer service.

Likewise, traditional industries such as agriculture and manufacturing are relying more on new technologies that require different sets of skills than those previously used. This means that many existing workers need to be retrained in order to stay up-to-date with current trends and technologies—a challenge that has become yet another obstacle on the road toward closing the skill gap in India.

Factors Contributing to India’s Skill Gap

As you know, the skill gap in India is a growing issue. But what are some of the factors contributing to this gap?

Poor educational opportunities

One of the main contributors to the skill gap is the lack of quality educational opportunities across India. Due to a lack of funding and poor infrastructure, many students are left with inadequate resources that don’t prepare them for the modern workforce. Increasing access to quality education would go a long way in helping close this gap.

Focus on rote learning

The Indian education system largely focuses on rote learning, which does little to develop critical thinking or problem-solving skills. This emphasis on memorization leads to a workforce that isn’t able to think analytically and solve complex problems—skillset that are now essential in many industries and workplaces.

Lack of soft skills

Soft skills such as communication, leadership, teamwork, and creative thinking are incredibly important in today’s job market, yet they’re not given enough attention in Indian schools and universities. Without these key skills, students may be ill-prepared when entering the workforce.

Impact of Skill Gap on Business Growth and Productivity

If the skill gap in India continues to go unaddressed, it will have a huge impact on business growth and productivity. Employees who lack the proper skills to do their job will be less likely to produce quality results, eventually leading to decreased efficiency.

Furthermore, companies may find it difficult to invest in new technologies if they can’t find qualified people to operate them. Fortunately, there are solutions available for closing India’s skill gap:

1. Investing more in vocational and technical education: Training of young professionals is essential for increasing India’s workforce’s skillset and ensuring that businesses are hiring qualified people.
2. Utilizing HR Software: HR software such as Sesame can help identify employee skills gap by monitoring employee performance over time and provides comprehensive analytics that show which areas need improvement. This allows businesses to quickly identify areas where employees may be lacking, as well as provide targeted training opportunities so they can stay competitive in the marketplace.
3. Implementing On-the-Job Training: Companies should invest in on-the-job training programs for employees who need additional skills or help developing existing ones. This will provide them with a better understanding of their role and how their work contributes to the company’s mission and goals.

Addressing India’s Skill Gap: Government and Private Sector Initiatives

As India continues to experience a growing skill gap, both the government and private sector have various initiatives in place to address it.

Government Initiatives

The Indian government has several initiatives in place that aim to bridge the skills gap. These include:

1. The Skill India Mission, which offers training opportunities for individuals from all over the country in various trades and sectors
2. The Pradhan Mantri Kaushal Vikas Yojana, which offers support for craftsmanship apprenticeships
3. The Atal Innovation Mission, which provides grants and other resources to support innovation and entrepreneurship initiatives

By providing access to education, training and other resources, these initiatives help equip people with valuable skillsets that can be used both professionally and in their personal lives.

Private Sector Initiatives

Private sector companies are also making an effort to bridge the skills gap in India by focusing on talent development. Many organizations are offering research-oriented roles where they provide necessary resources and support for employees who are looking to advance their career paths.

By providing these opportunities, companies are giving employees the opportunity to expand their knowledge base and develop specialized skillsets that will allow them to become more competitive in the job market.

Additionally, many organizations are partnering with universities and other educational institutions so they can offer degree programs specifically tailored to their industry needs, thus helping more people get into specialized fields that can help close the skills gap even further.

How HR Tech Like Sesame Can Help Bridge the Skill Gap

You may be wondering how HR tech like Sesame can help bridge the growing skill gap in India. By utilizing automation to manage recruiting and training processes, Sesame helps businesses fill job roles faster and can provide an upskilling platform for existing employees to become more trained in the skill sets necessary for digital transformation.

Automated Recruiting Process

With automated recruiting platforms such as Sesame, businesses can easily check multiple databases to quickly gather pre-screened resumes that fit their job requirements. This not only saves time by eliminating manual hands-on recruiting but also makes the recruitment process more efficient and accurate.

Upskilling Platform

Sesame also offers a comprehensive upskilling platform that allows existing employees to quickly acquire new skills needed for digital transformation, such as coding and programming. The platform provides comprehensive learning materials such as interactive tutorials, assessments, and tests to help employees become more proficient in new skills.

By leveraging HR tech like Sesame to automate the recruitment process and upskill current employees, businesses can better bridge the growing skill gap in India by quickly finding qualified professionals or providing existing employees with the necessary tools they need to develop new skills.