‘India still gives more importance to degrees than skills’
CommentsRetail – The sunrise sector for employment opportunities
Few months ago, a small paanstall mysteriously appeared on the footpath near our office. I saw a young man at the helm, selling paan, cigarettes, chewing gum and some toffees. As I walked by his stall in the evenings, I occasionally bought a packet of chewing gum to encourage his endeavour. In a short time, I found that he didn't need much encouragement from me. I saw the number of people visiting his stall grow and now he has packets of popular namkeen and chips, cold drinks and mineral water. In just a few months, I saw his stall growing significantly to cater to the office crowd in the area. He still smiles at me and offers me free chewing gum to show his gratitude for encouraging him in his early days.
This young man's journey is also the story of Indian Retail Sector which over the last decade or so has gone through a major transformation. Shedding the initial fears of large corporations displacing small shops, there is now a noticeable shift towards organized retailing. Suddenly you notice malls in every nook and corner, displaying large billboards and proudly lit up at night. Indian brands compete unabashedly with their multi-national counterparts. The un-organized retail has also stepped up, with even the small time kirana stores modernizing themselves in terms of display and operations to keep pace with the growing demands of the customers.
Today, the retail sector accounts for about 22% of India's GDP. According to a recent KPMG report on Indian retail, the overall size of the industry is estimated to be $534 billion in 2013-14 with a CAGR of 15% over last five years. Going forward, the overall retail sector growth is likely to witness a CAGR of 12-13 %, which would be worth $948 billion in 2018-19.
A number of factors have influenced this dramatic growth. Growing youth population, nuclear families in urban areas, a growing middle class with rising incomes and the resulting purchasing power, and higher brand consciousness have driven the demand for retailing. Opening up of FDI has created conducive regulatory environment for the sector. This coupled with rapid real estate infrastructure development, better efficiency in supply-chain, R&D, innovation and new product development has fueled the supply side.
All this translates to the many opportunities for the youth in the country. As per a report by NSDC, India will need around 56 million strong work-force for the booming retail sector. The sector will have one of the highest incremental human resource requirement of 17.35 million by 2022, offering opportunities in sales, merchandising, store management, central management and procurement.
For the youth to avail the upcoming opportunities and pursue a promising career in retail industry, it is important they equip themselves with the right training as different lines of retail business require distinct skill-sets. Some skills and interests that one must have before joining the retail industry are:
- Enjoy working with people
- Enjoy constant customer interaction
- An enthusiastic, flexible and positive attitude
- Ability to step in another person's shoes
- Empathy and understanding towards a distressed customer
Formal education is not as essential in the retail industry as it is in other areas of marketing. Many senior executives in this industry are people who were hired as retail staff. Their sincerity, hard work, enthusiasm, speed and experience,and an unwavering customer-centric focus resulted in their growth. So with the right attitude, one can easily hope to make it big in the retail industry. Typically, one can enter the retail industry as a class Xth or X11th pass out and with the right attitude and training, over a period of time,can advance to specialized jobs or management positions that offer higher remuneration.
Major proportion of the employment in the retail sector is in front-end/retail assistant profiles in stores. Store operations account for 75%-80% of the total manpower employed in the organized retail sector. Although the skill requirements may seem similar across segments, the type of product retailed, format of the store and customer involvement impacts the intensity of skill requirement across various functions. Soft skills such as communication and interpersonal skills are the key criterion for employability for both the entry-level and middle-level jobs at the retail store.
Retail industry in India has the potential to provide employment to a large number of youth. The latest announcement by the government to allow 100% FDI in retail (e-commerce, wholesale and in the marketing of food products) has already indicated a surge in employment opportunities in this sector. A direct result of FDI would be increase in the number as well as the formats of retail, which would result in the generation of jobs in multiple categories. This development brings with it an unprecedented need for nation-wide availability of skilled labour and an increased demand for comprehensive skills training.
Skilling India: Mine the Young Workforce
Prosperous countries with high GDP and per capita income tend to have high skill capital. This also translates to better quality of life and growth in the Human Development Index. As economies evolve from being commodity centric to knowledge centric, growth is increasingly dependent on availability of skills.Our country has a great opportunity in terms of its demographic dividend. While we are growing to be the most populous country, expected to overtake China between 2022 and 2028, the opportunity lies in the fact that we will also be the youngest country with the median age of population at 32. Almost 64 per cent of our population will be in the working age group by 2021.
India is expected to have a workforce surplus of 47 million people against the workforce deficit in most large economies. In addition to being the youngest country, India is also expected to be the fastest growing economy. This year, we expect our economic growth rate to overtake that of China. India, therefore, is sitting on a huge opportunity of a large and young workforce surplus complemented by a fast growing economy. It is critical that India focuses on skill development both for economic growth as well as social development.
A sure way to achieve inclusive and sustainable growth is to provide a mechanism to acquire skills, empowering the disadvantaged sections with skill development opportunities and developing a skill growth programme for continuous education and productivity enhancements. A skilled workforce aligned to industry needs will maintain the growth trajectory and competitiveness of various sectors of the Indian economy.
However, the challenge ahead of us is equally huge. The enrolment in educational institutes drops by almost half at each stage of critical development of children and youth between age groups of 5-14 years and 15-19 years. Most of these drop-outs join the workforce, which results in its illiterate to semi-literate profile. Almost 64 per cent of our workforce is primary level educated or illiterate, leaving only 36 per cent with middle or higher level education.
Even as our Gross Enrolment Ratio (GER) is rising over the years, the current GER suggests that almost 80 per cent of our youth never go to college. While the number of universities and educational institutes are rising, our teacher-student ratio is one of the lowest in the world. Additionally, in the working population of 15 to 29 years, only about 2 per cent receive any formal vocational training and 8 per cent receive non-formal vocational training. This is dismal when compared to other countries like Korea (96 per cent), Germany (75), Japan (80) and United Kingdom (68 per cent) where a large part of the working population receive formal vocational training.
Lack of skills
The big challenge is that even if we push and create workforce that has formal education, will they be employable? A recent survey found that almost half our youth were not sure if their post-secondary education has improved their chances of finding a job. On the flip-side, in another survey of the industry, almost 40 per cent of employers say lack of skills is the main reason for entry-level vacancies. Employability of graduates of our current education system is a major concern.
To overcome these challenges, it is imperative that skill training be mainstreamed into school and higher education system. As the government aims to impart skill training to 500 million people by 2022, it has launched many schemes that are focused towards building a strong base of skill training with mainstream education. The vocationalisation of school education, community college and B Voc schemes, Kaushal Kendras to encourage skill courses in colleges are some steps in the right direction. In addition, NSDC funded vocational training providers have been set up in the last few years to support this endeavour.
For effective implementation of policies, on-ground programme management support is crucial to enable linkages between the stakeholders and ensure that the big picture is kept in mind. The use of technology should be used to enable scale, quality and consistency of training for high-demand entry and middle-level jobs.
This training should primarily be developed with industry inputs since they are the main recipients of the workforce. Industry driven, technology enabled solution that is integrated into mainstream education will go a long way in preparing us to leverage the skilling-led opportunity ahead of us.
Over past few years I have written about Innovation on this blog. Recently I came across this TEDx video where Nirmalya Kumar talks about invisible innovation happening in India. Not quite the interesting innovation that we expect but innovation nevertheless.
Nirmalya Kumar is a professor of Marketing at the London Business School and a passionate voice for new entrepreneurs in India.
- Functions that have participated are Instructional Designers (33%) and Technology/Programmers (22%), followed by Project management (17%) and Graphics and Media (11%).
- Most participants have 10 years work experience (28%) followed by 5 and 3 years (11% each).
- So far the survey seems to be dominated by male responders (72%).
- Only 28% people switched jobs last year.
- Mostly people from elearning/training vendors have participated (72%).
- City spread is fairly even with nearly equal participation from NCR, Mumbai, Hyderabad and Chennai. Surprisingly, Bangalore has had low participation so far.
- Number of years of experience is more specific rather than a range.
- Salary details are now a number instead of a range. This will help get better inputs about salaries.
- Gender info can help to see if there is any gender inequality in salaries.
- Industry info can help identify salaries in different industries.
Will Thalheimer wonders what is the state of innovation in the Indian learning and performance industry in his recent blog post. He comments on the NY Times report on India’s anxiety over the slow pace of innovation and wonders what the situation is in the learning industry. Will Thalheimer is a learning-and-performance consultant and researcher who specializes in helping clients build more effective learning interventions.
I guess it depends on what we call innovation. No I am not getting into an academic debate on what is innovation, primarily because I am not good at it. I do believe there is innovation happening in the Indian learning industry. Much of the innovation is focused on solving problems closer to home. These may not always be visible to the world. Some examples:
- NIIT and TIS win Brandon Hall and CLO Magazine awards regularly. Other Indian companies in this year’s award list were Aptara and Servetium.
- Harbinger and Upside Learning have learning products that are competing with the best and are now quite visible in the US.
- NIIT’s Hole in the Wall is a key innovation in how children learn and has the potential to solve the India’s huge problem of educating the masses. The model is now being adopted and implemented in many developing countries, not just India.
- NIIT, Educomp, Edurite, Everonn are making significant inroads in introducing ICT and elearning in school education system.
- NIIT has been using innovation in curriculum and technology to overcome the problem of shortage of faculty in smaller towns and villages as part of its, not so publicized, affirmative action.
- It is hard for companies like Infosys, Wipro, HCL etc. to hire and train tens of thousands each year and put them on the job without innovating in training practices. Some awards by these companies:
- Wipro: 2009 ASTD BEST Award
- Satyam: 2008 ASTD Training Management
- Infosys BPO: 2007 ASTD Training Management
- Reliance Industries Limited: 2007 ASTD Organizational Learning
Of course, Indian companies aren’t innovating as much as they can or should. Why?
- We did start with ‘low cost’ advantage, a tag that’s hard to shake. One, Indian companies need to learn how to demand more from customers. And two, at the end of the day, low cost is indeed an advantage they will continue to play on it.
- Indian industry is traditionally a service industry and has grown significantly doing exactly that. So product development has not been a priority for long. If companies continue grow doing one thing, there’s less of a motivation for change.
- We don’t know how to package things well. That means presenting ideas, creating white papers etc. For some reason we don’t seem to pay enough attention to creating a really good document or presentation. This lack of packaging is visible in everything, from emails to project reports.
- Indian industry has been focused on volumes. You could debate that there is process innovation. I mean whatever said and done, there is jugaad* required to get large volumes done. But yes, we haven’t quite been focused on product innovation until recently.
- We aren’t really focused on academic research (at least I am not aware of it). There is very little connect between academic research and workplace implementation, though I suspect that’s the case in most other countries too.
- We don’t know how to sell consulting, research and innovation well. We also don’t have high profile visible individual consultants/experts. I guess Thiagi and CK Prahalad are Indians innovating but don’t quite count as India innovating. It may be some time before an Indian from India is awarded the CLO of the year award.
Innovation is happening in India, definitely. Can more happen? Of course! Should Indian learning industry be worried? I don't know. There will be companies that will continue to push our low cost envelope to the western world. But with the western economies slowing down, and the opportunities now becoming visible within India, I am guessing we will be seeing much more innovation focused on the domestic industry. Not all will be visible to the western world. We are a shy lot and still learning to market ourselves better.
* Jugaad n. /jĂŒ-'ga-d&/ (à€ुà€ाà€Ą़): an improvised or jury-rigged solution; inventiveness, ingenuity, cleverness.
I have updated my list of Indian learning professionals on Twitter. I have included company Twitter accounts in the list. Feel free to leave a comment to suggest more professionals and companies who should be on the list. I have been less discerning this time and have included all professionals who have more than one tweet on the list. Also listed them in alphabetical order.
You can now use the TweepML link to easily follow these professionals on Twitter.
| aanteladda - aanteladda Education Strategist, Coach, Bridge, Entreprenuerial Catalyst, Mum |
| abhijitkadle - Abhijit Kadle interests range from genetics, evolutionary biology, biochemistry, engineering, technology, computing to electronic games, media, communication, and design |
| Abhinava - Abhinava biker... dreamer... sapiosexual |
| amitgautam - Amit Gautam |
| atuljog - Atul Trainer,Executive Coach & a curious learner! Passionate abt adult learning, bringing fun and learning into training n designing content which are impactful ... |
| baxiabhishek - Abhishek Baxi geek / new media guy / photowalker / microsoftie / windows7 PC / blank noise guy / critical movies fan / windows mobile |
| bishtumesh - Umesh Bisht learning and development professional, digs web 3.0 , e-learning, and content |
| dbhasin - Dolly Bhasin Am a Knowledge Enterpreneur with focus on Small Enterprises, Travel, Tourism, Hospitality for eLearning and emarketing |
| deepak1279 - Deepak |
| dineshmagadi - dinesh magadi |
| dominicrajesh - Dominic Rajesh HR Professional with focus on Learning and Development. Motto: Help others help themselves. |
| elearningtyro - E-Learning Tyro Instructional Designer and E-Learning Specialist |
| followVasan - vasan e-Learning professional committed to making difference through learning solutions |
| gaganadlakha - gaganadlakha |
| gargamit100 - Amit Garg eLearning Outsourcing, Learning 2.0 |
| GautamGhosh - Gautam Ghosh HR and Social Media geek. Perpetual Learner. Interested in how emergent technologies are changing Organizations. Organizations 2.0 if you please! |
| geetabose - Geeta Bose Run Kern Communications -a learning solutions & usability consulting company |
| gJaideep - Gerald Jaideep Innovation Initiator or Hunter/Gatherer for FireStarters |
| harmalbhu - Harini Instructional designer. Love: Fiction, techie tools.Sharing Knowdlege. |
| indug_72 - Indu Gopinath |
| Jax - Xavier Roy I get paid to write :-) |
| JosephineShobee - Josephine Shobana Delivery Manager at Element K. Interested in learning, innovation, leadership, strategy… |
| kamalbatra - kamalbatra |
| kanchanshine - Kanchan Shine Instructional Design Consultant |
| kapil1312 - Kapil Bhatia Enjoy discussing Education, web 2.0 , edupunk, elearning. Hate people who block youtube and twitter in schools. |
| karthicku - Karthick |
| KavisMusings - Kavi Blogger. Dreamer. Optimist. Coach. Believer in people and potential. Citizen of the world. Ranter in general. |
| lakshmanr - lakshman rajagopalan Learning professional, Management, Leadership, enthusiastic trekker, amateur photographer, follower of techie news, avid reader |
| lakshmik_92 - Lakshmi Krishnan Learning and OD professional |
| manishmo - Manish Mohan Collaborative and Informal Learning, Management, Performance enhancement, Entrepreneurship, Technology, Amateur photography |
| Mohammedhb - Mohammed HB |
| mrmwrites - swamimo Technical Writer, Blogger, Web Admin, Secretary - ITC SIG of STC, Employment Manager - STC India Chapter |
| MuhammadAnas - Muhammad Anas |
| preetamrai - preetamrai Tracking tech and music from Africa, E.Europe and Asia |
| poojajaisingh - Dr. Pooja Jaisingh eLearning Professional |
| rajesh_pankaj - Rajesh Pankaj |
| RaviBramha - RaviBramha AVP Technology, 24x7 Learning |
| rjaideep - R.Jaideep elearning professional,tech lover,future enterpreneur |
| rnarchana - Archana Narayan Constantly evolving as an instructional designer at Kern Learning Solutions (www.kern-comm.com) to ensure richer learner experience |
| rucsb - rucsb Web 2.0 buff,IBMer,Learning professional, Indian, geek,netizen, thought leader, luvable ! |
| ruparajgo - Rupa Rajagopalan Instructional Designing - My Passion |
| sahana2802 - Sahana Chattopadhyay Learning evangelist, instructional designer and social learning enthusiast. Believe collaborative, participative learning is the future... |
| sekar_jd - sekar_jd |
| shaji0508 - Shaji Design Specialist at NIIT |
| shana1729 - Nishana Senior Flash Developer |
| shishirsh - Shishir Sharma Project Management, Technology, Instructional Design, Learning Solutions, Amateur photography, Sketching, Languages, Astrology |
| sreyadutta - Sreya Dutta Instructional Designer by profession, working at Oracle. |
| sundararajt - Sundar Thondaman An ardent fan of social media..learning consultant in the enteprise space..venturing into management consulting, and life skills training... |
| svsm67 - Sonia Sant |
| thoughts - Geetha Krishnan Learning professional |
| togetherinlife - kaushik Love.Life.Great Parents.Training,Blogger.Speaker.Travelling.See India.Trekking.Himalayas.Reading.Long Drives.Yoga.Beer.Making Mistakes.Explore Life Everyday! |
| VaiVai - Vaishnavi An Instructional Designer by profession, passionate about literatures from across the world and enthusiastic about new experiences! |
| vijeesh - Vijeesh Shankar learning - mobile, classroom, web, social, informal..(a-z of learning :-) |
| write2tg - Taruna Goel “A learning professional” – an instructional designer, trainer, recruiter, supervisor, mentor, coach, change initiator, training manager…and more. |
Learning Companies
| 24x7Learning - 24x7 Learning 24x7 Learning is India’s premier Intellectual Infrastructure partner |
| Astutix - Astutix Learning Effective Learning - Delivered! |
| niitimperia - niitimperia NIIT Imperia Center for Advanced Learning has been specially created to provide quality Management Education to working professionals. |
| NIIT_Imperia - NIIT Imperia NIIT Imperia offers world class senior management programs with IIM Calcutta available for working professionals and organizations at NIIT-Imperia. |
| NIITLtd - NIIT This is the official Twitter site for NIIT Ltd.- leading Global Talent Development Corporation and Asia's No.1 IT Trainer |
| niituniversity - NIIT University The NIIT University is a not-for-profit institution offering UG, PG and Doctoral Programs in IT, Edu Technology, Bioinformatics and Biotechnology. |
| trainingdotcom - Training.com Training.com is an eLearning initiative by NIIT to provide convenient, personalized and affordable training to students and working professionals. |
Amit Garg of Upside Learning posted some interesting comments about the elearning salary survey on their company blog. He raises three important points:
- Salary ranges are very wide
- Does variable pay work?
- Recession has had a severe impact
You can see his full post here. Here’s what I responded.
1. Salary Ranges: In the survey, I asked respondents for total experience and relevant experience. As I mentioned in my post, I have considered relevant experience and this has led to some anomaly in data. However when I dig a little deeper into the data, there is indeed a very wide salary range for instructional designers. So while one person with total experience of 12-15 years gets between 3.5 and 5 lac, another person with similar total experience is in the range of 8-10 lac. One is at Manager level, which the other has listed himself/herself as instructional designer. Perhaps I need to include not just the function but also the level in the organization. Useful input for the next survey.
It is a little hard to conclude whether educational background impacted salary. Looking at the data, I personally felt that having more than just a bachelor’s degree led to higher salary but one could argue that data sample is not large enough to draw that conclusion.
2. Variable Pay: Different companies and individuals treat this differently. From my personal experience of having spoken with many people from different organizations, variable pay for junior levels is usually linked to either company performance or used more as a retention strategy (it is in most cases not paid monthly). When times are good, almost everyone gets the variable pay and when times are not good, companies have the flexibility of controlling their costs. Other than sales functions or senior level functions, I haven’t seen anyone “aggressively going after” the variable pay component.
3. Impact of recession: You are right, most people who had an increase of more than 10% were in lower salary range. However there were some in the higher salary range who listed their increases as more than 15%. These were in Project Management and Graphics/Media function. I am not sure if the increase was in the same job or did they switch jobs during the year. Another input for next survey I guess.
The sample size of respondents is still too small to draw any serious conclusions. However considering that I haven’t yet been able to find any other survey that focuses on elearning and content development salaries, I guess this will have to do for now.
The Unofficial Salary Survey for elearning and content development jobs in India is now closed. This year the survey received 104 valid responses. This is up from 54 last year and 10 the year before. NCR contributed with most respondents (25), followed closely by Chennai (23), Bangalore (18) and Pune (15). Mumbai (12), Hyderabad (8), Cochin (1), Surat (1) and Kolkatta (1) were the other cities. There were two responses from outside India which were not considered (the survey is for jobs in India).
Key highlights:
- Instructional Designers (57) were most active on the survey, followed by Project management (22), Programmers (16) and Graphics/Media (9). Other roles that also participated in the survey but were not considered (for the want of numbers) were Sales and marketing (5), HR (1), QA (1) and operations (1).
- Relevant experience was considered while analysis entries. However in some cases total experience was significantly more than the relevant experience and there may be skews on salary ranges, especially in project management function.
- Salary ranges are too wide. Project managers seem to get paid more than other functions, looking at the visual patterns of the data.
- Almost 60% of respondents have variable pay component as part of their salary. People with salary of more than Rs. 5 lac more likely (75%) to have variable pay. 45% of respondents with salary of less than Rs. 5 lac have variable pay.
- The economy also has had an impact on elearning salaries in India. 34% did not get salary increase this year. 12.5% had a salary reduction. 33% had salary increase of less than 10%.
Unofficial eLearning Salary Survey 2009 - India
Update: Survey is closed for the year. You can view the elearning and content development salaries in India for 2009 here.
Have you participated in the Unofficial Salary Survey for eLearning / Content Development Jobs in India for year 2009 yet? More than 60 people have participated in the survey so far. Join the growing number of people who have already participated. Some highlights of responses received so far:
So far, Chennai and Pune are leading with most participants, with Bangalore and NCR following closely. Hyderabad and Mumbai are the other two cities that have participated.
Most participants are Instructional designers (55%), followed by Project management (19%) and Technology/programming (15%) functions.
This year 24% had no change in their fixed salary over last year, while 40% had an increase of less than 10%. Nearly 4% had a decrease in their fixed salary over last year.
Most (72%) instructional designers with 2-4 years experience have fixed salary in the wide range of 2.5 lac to 5 lac. Nearly 55% of IDs with 4-6 years experience are also paid in the same range. The salary range is quite wide for other roles too.
Almost everyone with more than 8 years work experience has variable compensation in addition to their fixed salary, while about a third of people with less than 6 years have a variable compensation component. Nearly 60% of project managers with less than 8 years experience have variable compensation component. Graphics/Media folks seem to be the only ones without any variable compensation so far (of the very small number that have participated). 67% of people in companies with more than 1000 people have variable compensation, while this is only 36% for companies with less than 1000 employees.
Watch this space for more detailed analysis sometime next month. Have a suggestion of what you want to see in the analysis? Leave a comment on this post.
There's nothing official about this survey. The survey is not based on responses by companies but based on responses provided by you, the employee. This survey is not associated with any organization. The survey is anonymous.
This survey is for you if you are an Instructional Designer, Project Manager, Graphics designer, Flash Programmer, Tester, Editor, Trainer, SME, or any other role involved in developing elearning or any other form of training content.
Click Unofficial eLearning Salary Survey of India 2009 to launch the survey. Answer a few simple questions to participate.

