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With a rising population, India needs to utilise the potential of its vast human resources by empowering them with the right skills to fuel an already rapidly growing and dynamic economy. Work-based learning solutions such as apprenticeship and degree apprenticeship programs have emerged as powerful tools for fostering an effective workforce for the future. Moreover, engaging with apprentices is also a compliance requirement. According to the Apprentices Act 1961, any company with 30 or more employees should engage with apprentices.

Here are 8 reasons why these work-based learning (WBL) programs are not just relevant but crucial for Indian businesses.

1. Addressing the Skills Gap

According to the India Skills Report 2023, just 50% of Indian youth are employable. India is witnessing a significant gap between the skills demanded by industries and those possessed by the workforce. By 2026, the existing talent demand-supply gap is expected to increase by 3.5 times.

Apprenticeships provide a practical solution by offering hands-on training, aligning the skills acquired with the actual needs of the industry. This helps bridge the gap & ensure that employees are equipped with the skills relevant to their job roles.

2. Promoting Industry-Relevant Skills

Apprenticeship programs can be tailored to industry requirements, ensuring that participants gain practical experience and knowledge directly applicable to their field. This focus on industry-relevant skills enhances the employability of individuals and enables businesses to train talent that is ready to contribute from day one.

3. Enhancing Employee Retention

Investing in the professional development of employees through apprenticeships fosters a sense of loyalty and commitment. Workers who receive training and opportunities for growth within the company are more likely to stay, reducing turnover costs for businesses. This not only creates a stable workforce but also contributes to a positive company culture.

Successful apprenticeship programs have helped companies improve retention by 25% in just 2 years.

4. Reduced Talent Acquisition Costs

One of the most compelling advantages of apprenticeships is their potential to significantly reduce talent acquisition costs. In contrast to traditional hiring processes, apprenticeships allow businesses to nurture and train talent from within, minimising the need for external hiring.

Based on our research, we have noticed that employers who engage with apprentices have witnessed a 50% reduction in talent acquisition costs within a period of 12-24 months.

To understand the trends in apprenticeship hiring, Download our latest Apprenticeship Outlook Report

5. Talent Pipeline and Succession Planning

Apprenticeships create a structured pathway for talent development. Businesses can cultivate a pool of skilled individuals through these programs, establishing a reliable talent pipeline. This meets the immediate needs of the business and also aids in succession planning by preparing individuals to take on higher-level roles within the organisation.

6. Adapting to Technological Advancements

Technological advancements are transforming businesses and apprenticeship programs help businesses to adapt by providing a platform for employees to acquire the latest skills and knowledge. This adaptability is crucial for industries to stay competitive and for employees to remain relevant in an ever-evolving job market.

7. Promoting Diversity and Inclusion

WBL programs play a pivotal role in fostering diversity and inclusion within Indian businesses. By providing accessible pathways to skill development, apprenticeships break down barriers and create opportunities for individuals from diverse backgrounds. This not only enriches workplace culture but also contributes to creating a more innovative and resilient business environment.

8. Increased Productivity and Innovation

Employees who engage with degree apprentices are likely to be more productive and innovative. The combination of theoretical knowledge gained through classroom education and practical experience gained on the job enhances problem-solving skills and creativity. This, in turn, contributes to the overall competitiveness and growth of Indian businesses in a global context.

WBL programs, especially apprenticeships, are indispensable for Indian businesses. A skilled and competent workforce is a cornerstone of economic growth. Apprenticeship programs not only address the skills-gap but also contribute to long-term sustainability, innovation and economic growth. By embracing these programs, businesses can not only stay competitive but also play a pivotal role in shaping a skilled workforce for the future.

Want to learn more about apprenticeships? Talk to us