To bridge the skill gap in the automobile sector, organisations are collaborating with institutes to prepare role-ready, employable candidates, says R AnandaKrishnan
The automotive industry in India has been on an accelerated growth path throughout 2016. The production and sales of two wheelers showcased a positive trend towards the second half of the year on back of better than usual monsoon and implementation of seventh Pay Commission and with consumer’s enhanced purchasing power the festive season also saw a better that usual uptake across segments. As a major employment generator, GDP contributor and FDI earner, the automotive industry is instrumental in shaping the country’s economy and hence regarded as a sunrise sector under Make in India. Indian automobile and auto component sector is one of the largest globally and employees over 29 million people.
For every vehicle produced, direct and indirect employment opportunities are created across the production chain. From R&D to design and technology, to corporate management and shop floor units all verticals of an automobile manufacturing company and its allied functions like distribution and sales, contribute to employment generation within the country. The automotive sector is expected to create 15 million direct jobs by 2022. However, companies in the manufacturing sector in India are increasingly grappling with the skill gap issue and are unable to find qualified, right candidates for open positions.
Skill gap is a reality for companies across sectors in India and it is all the more prevalent in the manufacturing sector. The ground reality is that 30 lakh graduates join the Indian job market every year but only about 5 lakh of those are considered employable. Skill development of the enormous talent pool will act one of the critical levers of growth.
At a time when the country is witnessing rapid economic growth, there is a dire need for employable, skilled talent that can keep pace with the fast evolving, competitive business environment. There is a gap in supply and demand of manpower due to lack of requisite technical and soft skills. Despite degrees and diplomas, young graduates entering work life are not equipped with the right professional skills, thereby highlighting the wide gap existent between our education system and industry requirements. The present education system is responsible for producing engineers who have mugged up course material, however, are incapable of application of the knowledge in practical areas. Engineering requires a combination of understanding and application. As a result, a sizable chunk of students are unable to cope up in the early semesters. Most engineering students in India are mentally tuned to score enough marks to pass, land a job and a fat pay package.
According to research reports, the growing skill gap in India is estimated to be more than 25 crore workers by 2022. Out of the 15 lakh engineering graduates India produces every year, 20-30 per cent of them do not find jobs and many others get jobs well below their technical qualification. There is a huge gap between the engineering curricula and the actual industry requirements. This results in significant time spent by companies on training and unlearning/re-training new talent. The skill gap issue will only aggravate in the future considering the kind of growth and development predicted for the Indian automobile segment.
In today’s competitive world, talent is considered as the most important asset of a company and hence the Government, corporates and industry bodies are collaborating to address the issue. The Skill India initiative launched by the Government of India is a step in the right direction and will help the industry with skilled workforce in the long run. The initiative is expected to train over 500 million young people by 2020 to make them more employable. In addition to Government initiatives, corporates are also undertaking several measures to help build a stronger talent pipeline. Companies are increasingly viewing investments in skill development as core to business growth and sustenance.
Addressing skill gap concern, corporates are investing heavily in training programmes/modules to prepare new employees and upskill existing employees. Skill development of the enormous talent pool will act as one of the critical levers of growth. Organisations are collaborating with institutions and academia to prepare role-ready, employable candidates. Companies have started structured collaborative education programmes to create tailor made curriculum with on-the-job training for skilling students.
Companies like Nachimuthu Polytechnic College, Pollachi have also entered into partnership with an aim to nurture technical education by bringing industry practices into the education system and improving the skills of both instructors and students. The company has also singed MoU with 10 vocational training institutes so far in order to provide training to freshers as well as for up skilling the existing staff at the dealerships (Service Advisor and Works Manager — non technical to certified technical). Each institute has the capacity to hold two-three batches of 40-60 technicians.
Some companies also provide training to women as part of an equal opportunity policy, we provide jobs/ training. These women are engaged in roles like technician apprentices, trade apprentices and graduate apprentices every year. For vacancy based employment, preference is given to employee wards and past trainees with good track record.
In order to emerge as global hub for the automobile industry, India needs to acknowledge the skill gap issue and take collective measures by involving all relevant stakeholders. Since corporates are most attuned to the changing market dynamics, they should lead industry-led skill development programs and channelise funds allocated for CSR into funding and supporting community skill development initiatives.
(The writer is senior vice-president, Human Resources, TVS Motor Company)