Budget job schemes good start but practicality to be seen: Experts

The scale of internship proposed presents a challenge for companies

Bengaluru: The Union Government’s new found focus on skilling to boost employment, has found support with human resource professionals, though they still to fathom its practicality and sustainability, especially being in the dark on the details of how this ambitious programme will be taken forward. Yet, most are bustling with ideas on how the roll out could pan out.

It may be recalled that Union Finance Minister Nirmala Sitharaman proposed involving “500 top companies” in offering internship to 1 crore youth in a span of five years. “The government has already created a good platform linking the scheme’s implementation with deployment of CSR funds. The industry is warming up to the idea - (though) it’s early days yet. We should think of it as a great start to facilitate a structured opportunity for skilling/ providing potential employment,” said Rajani Athreya, Group Head HR, South Asia, Kantar.

Given the scale of internship initiatives called for, most hiring professionals feel the number could come from subsidiaries and contractors. “While an individual company may not have the threshold to provide such a high number of internships, groups such as Reliance and the Tatas have subsidiaries that can accommodate the candidates. Also, many companies outsource (contract) their employees. For them too the numbers will not be an obstacle,” observed Lohit Bhatia, president, Workforce Management, QuessCorp.

“Companies with smaller workforce can adopt hybrid working policies for their interns, consider rotating assignments across departments and pair each apprentice with an experienced employee, who can guide and provide feedback,” suggested Sachin Alug, CEO, NLB Services.

The Economic Survey 2024, dwelled heavily on the sizable mismatch between the supply and demand for employment and the need to create productive jobs outside of agriculture, particularly in manufacturing and services. In the light of this, several analysts DH spoke to, underscored the need for upskilling, commending the government’s efforts to push the workforce into the formal sector.

They are impressed with the move to incentivise this process offering to reimburse companies on their contributions to Employees’ Provident Fund Organisation for first time recruits. “This will encourage hiring especially by the manufacturing sector,” cheered Sonal Arora, Gi Group, country manager. Balasubramanian A, senior vice president and business head at TeamLease Services, argued that the move will take away the advantage informal sector currently has in paying the salary in full to the employee, with no compliance obligations such for provident fund and ESI. The incentive will compel them to turn more compliant.

However, stakeholders have their reservations about the schemes announced being able to create more blue-collar jobs, which hinge on factors such as industry demand, wage levels and distinctive skill requirements. “While it can potentially address the skill gaps and generate employment opportunities, the sustainability of these jobs will rely on the overall economic climate and the competitiveness of the manufacturing sector. The scheme should be closely aligned with the industry requirements to maximise its impact,”added Alug.