Mumbai, 07th July 2023: TeamLease Degree Apprenticeship, India’s largest privately owned Degree Apprenticeship program from the house of TeamLease Services, has unveiled a significant trend in the talent development landscape. Through a survey conducted with nearly 200 industry leaders, the company has identified that 65% of participants recognized apprenticeships as a Talent Development Strategy. This recognition showcases the profound impact apprenticeships have in nurturing and enhancing the skills of emerging professionals, solidifying their position as a transformative force in the current job market.
One of the standout advantages identified was the Optimized Talent Cost associated with apprenticeships. An overwhelming 42% of respondents acknowledged the remarkable cost-effectiveness of creating talent through apprenticeships compared to conventional talent acquisition methods. This cost optimization serves as a compelling incentive for businesses to embrace apprenticeships as a strategic approach to talent development.
Commenting on the significance of the analysis, Mr Sumit Kumar, Chief Business Officer at TeamLease Degree Apprenticeship, said, “In the last 2-3 years, India has witnessed a remarkable surge in the adoption of apprenticeships, with the number of organizations onboarding apprenticeships almost doubling from 3.5 lakhs to 7 lakhs. Additionally, the number of establishments actively engaging in apprentices has increased from 22,000 to 40,000, and the count of registered organisations in the apprenticeship pool has risen from 1,20,000 to 1,70,000. This upward trend is a testament to the evolving mindset of Indian companies, recognizing the immense potential apprenticeships hold in bridging the skills gap and fostering a talented workforce. When we compare this trend to the challenges faced by China, such as a shrinking workforce and an ageing population, India’s demographic advantage becomes evident. India has a relatively young population, with a median age of 28 years, as compared to China’s 39 years. 26% of the population is below the age of 14, 67% are between the ages of 15 and 64, and 7% are above the age of 65. In China, the ageing population, which is 60+, is almost double that of India. With a young and dynamic population comprising approximately 65% under age 35, we possess a substantial advantage over our counterparts. This advantage not only fuels our economic growth but also presents an opportunity to harness the untapped potential of our youth through apprenticeship programs.”
The analysis also sheds light on the invaluable role of apprenticeships in real-time talent engagement, with 30% of participants acknowledging their capacity to foster proactive and engaged employees. This underscores the transformative power of apprenticeships in shaping a motivated workforce that actively contributes to organizational success. Furthermore, 28% of respondents recognized the improved productivity resulting from apprenticeships, further highlighting their positive impact on both individual and organizational performance.
“Employers are not only acknowledging the immense value of apprenticeships but are also demonstrating their commitment by generously providing stipends that surpass the prescribed rates, offering a premium ranging from 40% to 82%. This investment translates into remarkable returns on investment (ROI), with apprenticeship programs yielding returns that are three to four times the initial investment. This significant willingness to invest in apprenticeships highlights their pivotal role in not only attracting but also retaining top talent,” Mr Kumar added.
Apprenticeships are not solely a talent development strategy; they serve as a comprehensive solution by seamlessly blending academic learning with practical on-the-job training. This symbiotic arrangement delivers a myriad of benefits, fostering not only individual growth but also driving broader social and economic objectives.