Digital transformation and automation require upskilling and those who do, will be the best fit for the industry in the time to come
The world has been captivated by the remarkable journey of Chandrayaan-3 to the lunar south pole. India's triumphant moon landing underscores the significance of blending basic scientific expertise with ingenuity and pursuing ambitious objectives despite prior setbacks. This accomplishment showcases the potential of the Indian workforce and their determination to surpass their limitations. We can draw valuable lessons from this moonshot success and apply them to improve the skills of workers in other fields of employment. Like Chandrayaan-3, we must strive for innovative skills and push the limits of what can be achieved to attain success.
Both employers and employees need to establish their ambitious objectives, known as "moonshot goals." These goals should challenge us to push past our limitations and strive for something that may seem impossible. Accomplishing such goals requires a combination of skill and attitude, and requires meticulous planning and execution. By setting moonshot goals, India can prepare itself to become a global leader in skilled workforce.
To empower the world's largest workforce with essential skills for the long term, a moonshot effort is required. The economy is rapidly changing, and technological advancements are accelerating at an even faster pace. In today's globalized world, the demand for a skilled workforce is constantly growing. However, many companies and employees are struggling to keep up with the changing needs of the present and the future, hindering their ability to thrive.
The skills gap is a significant problem, with a staggering 58% of employees requiring new skills to perform their jobs with excellence, according to Gartner. Upskilling, the process of expanding an employee's skill set, is a crucial solution to this global challenge. The World Economic Forum (WEF) released a report in 2021 highlighting the economic imperative of upskilling. The report argues that embarking on an upskilling revolution is critical for entrepreneurs. This allows employees to immerse themselves in the future of work, stay ahead of the competition, and help grow the economy by trillions of dollars.
In recent years, India has been making efforts to shift from a labour-based economy to one that focuses on honing skills. The World Bank recently gave a nod to a $250 million Skill India Mission Operation. This initiative aims to enhance the marketability of short-term skill development programs lasting anywhere from three to twelve months. By 2025, it is expected that 70% of India's population will reach working age. However, there is uncertainty regarding whether they will be able to secure employment. It is crucial to provide skill development training to the younger generation as it is essential for the nation's growth. Failing to do so could pose a significant challenge to India's demographic advantage. Unfortunately, Skill India has not been able to achieve the expected success due to a lack of training infrastructure and insufficient private-sector involvement.
Skill India Mission and skill development of the new generation is a national need, important to building a strong foundation of ‘Aatam-Nirbhar Bharat’. Under the aegis of ‘Sabka Saath, Sabka Vikas, Sabka Vishwas and Sabka Prayas’ every youth is likely to be empowered with skill wings from school time to achieve a successful career.
Skilling India’s youth should undoubtedly be a high priority. However, government initiatives to improve India’s skilling track record have not been very satisfactory yet. An analysis by the Sharda Prasad Committee on Skill India Reforms (2016) found that skill development courses often offered limited value to their employment opportunities.
While some skilling schemes have since been restructured, the problem has not been fully addressed. For instance, when the government introduced the Garib Kalyan Rozgar Yojana (GKRY) in 2020 to address skilling and unemployment issues that emerged in the wake of reverse migration, it did not pan out as anticipated. Many reports suggest that GKRY’s market demand-driven skilling initiatives were not successful; they did not reach the intended beneficiaries. This hints at a systemic problem that affects the talent ecosystem in India.
The number of skilled and certified workers is not meeting the demand, causing a significant imbalance. The International Labor Organization (ILO) predicts that by 2030, India could face a shortage of about 29 million skilled employees. Currently, there is a shortage of skilled workers in companies, while there are many educated individuals in the country who are unemployed. Unemployment is a significant problem that can be reduced by enhancing people's skills.
India is expected to contribute 25% of the global workforce in the next few years. Failure to skill, re-skill and up-skill our young population will prevent us from fulfilling our global responsibilities. Regular global skill gap assessments are necessary, and recruitment patterns need to shift from "degree-based" to "skill-based." To address these issues, the National Skills Universities Bill 2015 proposes the establishment of National Skills Universities (NSU).
Organizations can also benefit from upskilling their employees, but the highest return on investment is achieved when priority areas and skills are identified based on company goals and vision. Company leaders should prioritize skills that will have the biggest impact and focus on upskilling employees in those areas.
Upskilling can lead to increased employee engagement and retention by providing growth opportunities for employees within the company. This can prevent employees from leaving their roles due to a perceived lack of career advancement.
By investing in upskilling, companies can also save significant costs associated with employee turnover. On average, it costs around a third of an employee's annual salary to replace them when they leave a company.
As a recruiting tool, companies can provide growth opportunities to attract job seekers. 86% of employees consider job training essential. A culture of learning can boost morale, teamwork, and satisfaction. According to PwC data, 77% of workers want to upskill. Upskilling employees can help them advance in their careers and increase professional development. Digital transformation and automation require upskilling to meet these challenges. Employees who upskill can improve their ability to perform better in their roles and increase their confidence in their abilities.
