CXO Roundtable on People Supply Chain Innovation: Interpreting the ROI in Apprenticeship at ITC Narmada, Ahmedabad

  • Admin
  • 31 May, 2024

Amidst the rapid evolution of India's business landscape, the recognition of efficient talent acquisition strategies has become increasingly pronounced. Businesses across sectors face a significant challenge in hiring and attracting top talent. The competitive nature of the job market, coupled with evolving skill requirements and technological advancements, makes it increasingly difficult for organisations to identify and secure skilled professionals who can drive innovation and growth.

We at TeamLease Degree Apprenticeship recently organised an exclusive CXO conference, "People Supply Chain Innovation: Interpreting the ROI in Apprenticeship," at ITC Narmada to introduce innovative talent acquisition strategies and explore the substantial returns on investment (ROI) from apprenticeships and work-based learning programs for businesses in Gujarat.

Despite Gujarat's emergence as a hub for domestic and international investments, talent acquisition, engagement, and development remain fundamental challenges. During the conference, we discussed innovative hiring strategies to address this gap, including developing internal talent, implementing Managed Training Services and Hire-Train-Deploy models, and outsourcing apprenticeship management. HR leaders from prominent companies such as Arvind Brands, Vadilal, Bluedart, Lendingkart, and Pacifica Companies shared valuable insights on building a cohesive talent management approach that integrates apprenticeships.

The ROI of Apprenticeship Programs

Apprenticeship programs have demonstrated significant ROI benefits. They can lead to a 50% reduction in talent acquisition costs, a 25% decrease in attrition rates, and a 20%-25% increase in business productivity. Over three years, apprenticeship programs have shown an impressive 3X return on investment. Additionally, outsourcing apprenticeship management can deliver significant ROI, allowing organizations to focus on core activities while benefiting from a skilled workforce.

While Gujarat has shown strong performance in apprentice adoption, there is room for growth. The state's annual apprentice adoption rate of 16% over the last four years falls below the national average of 35%-40%. Increasing the adoption rate of apprenticeships in Gujarat can enhance the talent pool, supporting booming sectors such as EV, Semicon, Pharma, Healthcare, and GCC. Moreover, apprenticeships and work-based learning solutions can be vital in creating a sustainable talent supply chain. Organizations can also leverage CSR spending for apprenticeship training, enhancing economic viability.

We also highlighted the need to address current challenges in building an effective talent pipeline, including skills mismatches, escalating hiring and training costs, and rising turnover rates. With projections indicating that a quarter of the world's incremental workforce will originate from India in the next decade, and with AI expected to disrupt 60-80 million jobs in the coming years, cultivating a skilled and qualified workforce is crucial.

Apprenticeships: The Key to a Sustainable Talent Pipeline

Apprenticeships can play a pivotal role in enhancing organizational efficiency and talent management. They significantly contribute to cost savings by refining talent acquisition and retention processes, signalling a strategic shift towards nurturing internal talent. These programs, with durations ranging from 6 to 36 months, are adaptable to evolving industry demands, ensuring a skilled and agile workforce ready for success. With a remarkable 3X return on investment, apprenticeships optimize costs, establish sustainable pipelines, and enhance productivity.

Furthermore, the changing prominence of industries in Gujarat is evident in the shift in the proportion of apprentices each industry engages. Scaling up the skilling ecosystem in Gujarat through apprenticeship programs is essential for delivering benefits across cost, productivity, and talent pool creation, propelling industry growth and fostering the state's entrepreneurial spirit.

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