Launching a successful apprenticeship program in the Micro, Small, and Medium Enterprises (MSME) sector can be transformative, both for the businesses involved and the wider economy. The recent report from TeamLease Degree Apprenticeship underscores the critical role that apprenticeships play in bridging the skills gap and enhancing employability, particularly in sectors that are the backbone of the economy, such as MSMEs.
*The demographic data from the United Nations Population Fund’s (UNFPA) ‘State of World Population Report, 2023’ estimates India’s population at *1,428 million against 1,425 for China. 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.
*Overall enrollment in higher education increased to 41 million in 1,113 universities, 43,796 colleges, and 11,296 standalone institutions, an increase of 7.5% from 2019–20. Female enrollment surpassed a significant 20 million, an increase of 13 lakh from 2019–20.
Why apprenticeships matter for MSMEs
The MSME sector is a significant driver of economic growth and job creation globally. In India, *MSMEs contribute around 30% to the GDP and employ over 111 million people across 63 million enterprises. Despite this, many MSMEs struggle with skills shortages and high employee turnover, which hampers productivity and growth. Apprenticeships offer a sustainable solution by providing a steady pipeline of skilled workers who are trained in the specific needs of the business.
Steps to launch a successful apprenticeship program
Understand the apprenticeship landscape: Familiarise yourself with The Apprentices Act, 1961 and recent amendments which provide a regulatory framework for engaging apprentices in various trades and vocations. Leverage government initiatives like the National Apprenticeship Promotion Scheme (NAPS) and National Apprenticeship Training Scheme (NATS) which offers financial support to businesses that hire apprentices.
Define clear objectives and roles: Determine the specific skills and competencies that are in short supply within your business. Align these with your operational needs to create well-defined apprenticeship roles. Engage with industry bodies or Sector Skill Councils to identify skill requirements and design appropriate training modules.
Develop a comprehensive training plan: Design a training plan that combines on-the-job learning with formal instruction. The plan should outline the learning outcomes, assessment methods, and progression routes for apprentices. Ensure the training is flexible and modular to cater to the varied needs of the apprentices and the evolving demands of the business.
Collaborate with educational institutions: Partner with local vocational training institutes, polytechnics, or community colleges to provide the theoretical component of the apprenticeship. These institutions can also help with recruitment and certification. Consider participating in degree apprenticeship programs which combine academic learning with practical work experience, making them highly beneficial for both apprentices and employers.
Create a supportive environment: Assign experienced mentors to guide apprentices through their learning journey. Mentors should provide regular feedback, support and encouragement. Foster a culture of learning and development within the organisation. Encourage apprentices to participate in team activities and company events to integrate them into the workplace culture.
Monitor and evaluate progress: Establish a system to regularly review the progress of apprentices. This should include both performance evaluations and feedback sessions. Use data-driven insights to assess the return on investment (ROI) of your apprenticeship program. The TeamLease Degree Apprenticeship report suggests that well-implemented apprenticeships can lead to significant cost savings and productivity gains for businesses. The survey findings demonstrate a growing reliance on Third Party Aggregators (TPAs) in managing apprenticeship programs. Organisations acknowledge the multifaceted benefits, with 62% believing they can achieve significant cost savings, 44% valuing access to Subject Matter Experts and 57% prioritising trust and brand reputation when selecting a TPA. This shift reflects the strategic advantages of outsourcing apprenticeship management, including cost reduction, risk mitigation, flexibility enhancement and fostering innovation.
Ensure compliance and certification: Make sure your apprenticeship program complies with all legal requirements and standards set by relevant authorities. This includes adhering to wage regulations, health and safety norms, and providing appropriate certification upon completion. Certification enhances the employability of apprentices and gives them a formal acknowledgement of their skills, which is valuable both for their career and for the credibility of your program.
Promote and scale your program: Publicise your apprenticeship program through various channels to attract a diverse pool of candidates. Highlight the benefits of apprenticeships such as earning while learning and gaining hands-on experience. As your program grows, explore opportunities to scale it by partnering with other MSMEs or expanding into new sectors or regions.
Apprenticeships can be a game-changer for MSMEs
Apprenticeships can significantly benefit MSMEs by helping them develop a skilled workforce and enhance operational efficiency. By carefully planning and implementing a robust apprenticeship program, MSMEs can not only address their immediate skills gaps but also contribute to a more resilient and dynamic economy. As Sabina Dewan, Founder & Executive Director of JustJobs Network emphasises, apprenticeships bridge the gap between education and employment, providing both economic and social benefits.
References:
- Leveraging apprenticeship in infra-construction: ‘Need to equip MSMEs with skills, workforce to meet sector’s growing demands | Financial Express | Feb 2024
- MSME Apprenticeship may become shorter, better paid | Economic Times | March 2024
- UNFPA State of World Population Report
- *TeamLease Degree Apprenticeship Report
