Invest In Apprenticeships To Secure Future Workforce, Meet Skill Demands: Experts To Firms
Experts noted that there is a need to address diversity and inclusion gaps to foster a more inclusive workforce
In today's fast-paced and ever-evolving business landscape, organisations face a dual challenge- meeting immediate skill demands while also securing their future workforce needs. Investing in apprenticeships has emerged as a strategic solution, offering a win-win proposition.
While speaking at an event, industry experts stated that not only do apprenticeships provide a pipeline of skilled talent to address current skills gaps, but they also foster a loyal and adaptive workforce, driving sustained growth and innovation. By combining on-the-job training with formal education, apprenticeships enable organisations to cultivate a competitive edge, while also providing individuals with valuable work experience and career advancement opportunities.
While underscoring the transformative impact of apprenticeships in talent development, Dhriti Prasanna Mahanta, Business Head and Vice President, TeamLease Degree Apprenticeship said that apprenticeships are pivotal in nurturing a pipeline of skilled talent. “They not only significantly reduce talent acquisition and training costs but also yield long-term returns by cultivating a loyal and proficient workforce. By investing in apprenticeships, organisations not only meet immediate skill demands but also secure their future workforce needs, driving sustained growth and innovation,” he added.
The leaders discussed the current challenges in building an effective talent pipeline. Industry leaders discussed the mismatch between employer needs and candidate skills, increasing hiring and training costs, high turnover rates, and the necessity for agility in a dynamic talent landscape.
A key aspect of the discussion was exploring how apprenticeships can significantly reduce talent acquisition and training costs, develop a pipeline of skilled talent, and provide long-term returns by building a loyal workforce. The session delved into degree apprenticeships and tailored talent development programs that focus exclusively on industry-relevant skills alongside academic qualifications.
A.R. Ramesh, Chief Executive Officer (CEO), TeamLease Degree Apprenticeship commented, “By adopting the build vs. buy model, companies can minimize reliance on external hires and develop internal talent. Innovative higher education approaches like work-integrated learning are crucial for future-proofing our workforce. Additionally, fostering a diverse workplace is essential for vibrant business expansion and long-term success.”
In 2018-2019, there were 1,788 apprentices in Telangana, and now with the numbers growing to 37,744 in 2023-2024, there is a remarkable increase in apprentices reflecting an 18.9 per cent growth from the previous year, added Ramesh.
In India, Telangana continues to be one of the richest in terms of per-capita income. Yet, it suffers from challenges of sectoral, spatial and segmental inequalities. Unemployment is one of the major challenges being witnessed in the state. Unemployment among youth was found to be high at 15.1 per cent in the 15 to 29 age category with male and female unemployment at 14.7 per cent and 16.2 per cent respectively as per PLFS 2022-23.
Within youth, rural unemployment stood at 9.7 per cent and urban unemployment at 25.4 per cent. Within the working age population 15 to 59, the unemployment rate was 4.6 per cent with male and female unemployment at 4.9 per cent and 4.0 per cent respectively. Educated youth unemployment is an emerging problem.
Telangana's booming IT sector in Hyderabad faces significant hiring challenges and skill gaps, particularly in emerging technologies and specialised roles. While the state attracts global IT companies and startups, a gap remains between the local talent pool and employer needs, experts noted.
According to the TeamLease Research on employers' perspectives on internal talent development, and a cost-benefit analysis of nurturing internal talent versus external hiring, the potential for skill development initiatives to improve employee retention and the anticipated outcomes from investments in talent development programs were also examined.
Sumit Kumar, Chief Strategy Officer, TeamLease Degree Apprenticeship, discussed the strategic advantages of skill development initiatives in today’s competitive landscape. Kumar mentioned, "Employers overwhelmingly recognise the value of internal talent development, citing improved retention rates and cost efficiencies compared to external hiring. Skill development programs, such as apprenticeships, not only enhance employee retention but also deliver compelling cost-benefit outcomes both during and after completion. These initiatives are instrumental in achieving short-term proficiency gains and long-term strategic objectives, ensuring businesses remain agile and resilient amidst evolving market demands.”
