Education sector's growth lies with its talent

Education Sector’s

growth lies with its

Talent

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Economic Overview

Potential of Education sector in India

Key business challenges faced by sector

Evolving role of HR in Education Sector

Comprehensive Talent Management Solution – PeopleWorks

References

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Economic OverviewIndian Economic Landscape

Indian economy’s growth is to rise to an elephantine 5 year high of 6.6 per cent in 2015-16, as per a recent forecast by Organisation for Economic Cooperation and Development [OECD]. The significant contributor continues to be Services and Manufacturing sector. The accelerated success of these two sectors is attributed in large to the growing market reach and talent pool availability.

Manufacturing industry has held a constant share in economic contribution, with Service sector comprising of - construction, telecom, software and information technologies, infrastructure, tourism, education, health care, travel, trade, banking and other components have year on year increased its contribution steadfastly.

“India's higher education segment is the largest in the world with approximately 20 million students and 36,000 institutions.”

Source : Department of Economic Affairs 2011

Source : Department of Economic Affairs 2011

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20,000

40,000

60,000

80,000

100,000

120,000

SchoolHigher Education

SchoolHigher Education

This success story reflects upon the growing need of skilled resources to allow economy to breathe and sustain its growth trajectory. As per census {2001-11} India has a literacy rate of around 74% {2011}. Realizing the potential of a large base of education seekers, there is renewed confidence by both Govt. and Private sector to evolve India’s education sector. The focus will be to shape up the existing system and evolve to changing globalization with constant attempts to resolve access to quality education, as well as getting trained manpower for sustainable growth and development of our nation.

1,324,517

100,102

Number ofEducation Institutes

101,031

3,631

93,204

9,860

4,925

3,414

6,002

8,734

72,875

20,666

41,140

1,645

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Potential of Education Sector in India

Education and skill development are crucial for reaping the demographic dividend. The market size of Indian education sector is expected to increase to Rs 602,410 crore (US$ 95.80 billion) by 2014 -15 on the back of strong demand for quality education, according to a report by India Ratings. Indian education sector’s market size in 2011-12 was estimated at Rs 341,180 crore (US$ 54.20 billion). The sector grew at a compounded annual growth rate (CAGR) of 16.5 per cent during 2004-05 to 2011-12.

The Indian education market is currently valued at Rs 5.9 trillion (US$ 92.98 billion). By the year 2020, India is slated to have the biggest tertiary age population in the world. Also, it will have an immense pipeline of graduate talent, second largest globally.

The growth potential of this sector draw significant investments from the numerous foreign organizations. As per the Department of Industrial Policies and Promotion (DIPP), the education sector has had a total FDI of US$ 964.03 million, from April 2000 to September 2014.

$ 144 bn

2020 P2011

$ 44 bn

CAGR: 14. 1%

Higher education sector

Schooling sector

$ 37.8 bn

2020 P2010

$ 10.1 bn

CAGR: 14. 1%

Higher education School education Pre-School Technology & Multimedia

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0.6 %

59.7 %

1.6 %

38.1 %Market

Size


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In the wake India’s need for improving skill and education needs, the Indian government’s 2020 target is to achieve a 30% gross enrolment ratio (GER) for higher education. The Private sector also has turned its attention towards the education vertical with its rapid growth.

Huge investments are being made in the areas of skill enhancement, private coaching, teacher training, e-learning and many more such fields. By 2018, private sector is slated to reach from US$ 70 billion (in 2013) to US$ 115 billion.

“Private education will boom into a $120 billion sector over the next decade, attracting a huge inflow of

foreign direct investment.”

FDI in the education sector in India increased at a CAGR of 64.3 percent from USD 36 million in FY11 to USD 262 million in FY14.

Since the last decade, Indian higher education is undergoing a massive change. There are over 600 million people below 25 years’ of age, who would continue education given the right kind of opportunities and facilities. Yet with these shortcomings, the higher education sector is expected to increase to US$ 37.8 billion by 2020. On the other hand, the schooling segment in India is anticipated to be around US$ 144 million by 2020 from US$ 44 million in 2011.

Source: Ministry of HRD, Technopark, DIPP, Aranca ResearchNote: GER stands for Gross Enrolment Ratio

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Key Business Challenges faced by the Sector

India has one of the largest networks of higher education institutions in the world with 574 universities and 35,539 colleges. It is also the third largest in terms of education enrollment with over 20 million enrollments per year. The private education sector which was valued at US$ 50 billion in 2008 is estimated to reach US$ 115 billion by 2015.

With tutoring in the schooling segment expected to grow from US$ 8 billion in 2011 to US$ 26 billion in 2020, there lies a large and fast growing market for coaching and tutoring services imparted through innovative means, mainly the Internet. With the aid of liberal FDI policies, there is a lot of potential for setting up campuses of foreign universities in India.

The Government of India has taken several steps including opening of IIT’s and IIM’s in new locations as well as allocating educational grants for research scholars in most government institutions. Furthermore, with online modes of education being used by several educational organisations, the higher education sector in India is set for some major changes and developments in the years to come.

The supply-demand gap

India has a low rate of enrolment in higher education, at only 18%, compared with 26% in China and 36% in Brazil. There is enormous unmet demand for higher education. By 2020, the Indian government aims to achieve 30% gross enrolment, which will mean providing 40 million university places, an increase of 14 million in six years.

Multiple regulators and onerous regulations

Education under the Indian Constitution is on the concurrent list, which makes it both a Central and a State subject. Over the years, lack of communication and co-ordination between the two spheres of authority has resulted in creation of multiple regulators in this sector. The complexity is further compounded due to a number of onerous regulations governing investment in this sector.

The low quality of learning

The system is beset by issues of quality in many of its institutions: poor quality teaching, outdated and rigid curricula and pedagogy, lack of accountability and quality assurance and separation of research and teaching.

Uneven access to opportunity

Socially, India remains highly divided; access to education is uneven with multi dimensional inequalities in enrolment across population groups and geographies.

Talent management woes

Emergence of IT, ITES and other similar sunrise sectors pose a significant threat to address the talent gap. Talent acquisition is impacted by the cultural sensitivities and mindset prevailing in India. A teacher’s job is considered less attractive as compared to other services sector due to disparity in pay with restricted career growth. Educational sector is not perceived as aspirational, one providing stable and progressive career opportunities. These factors affect and pose a key challenge in Talent Attraction & Retention.

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Evolving role of HR in Education Sector

Scattered Data

Unavailability of faculty and other non teaching staff data at one place, is of grave concern for institutions. Any course correction with regards to headcount or policy warranted the need for data. Unnecessarily man hours are spent searching and collating the required information from specific departments. Productive hours of HR and other Heads are being spent on data accumulation and validation.

Building Image

To make an evident mark in the industry it is imperative that an institute pushes its focus upon the daunting task of image building. Here again, the Establishment department is expected to play the role of a spokesperson and manage this task expertly.

Manual Procedures

Be it leave sanctions, payroll, performance management, transfers, separation, every procedure is managed manually. The staff is expected to approach HODs for approvals/review in person. The Personnel/Establishment department also therefore gets pulled into mundane administrative tasks.

Training & Development

To be at par with the competition across the industry it is essential that the educational institutes devise methods to impart resourceful trainings to their faculties at regular intervals. A sustained approach in this regard will help nurture the eminent talent of the students. The Institutes need to devise new teaching techniques and help the faculty to impart high quality education to the students with their improved training programmes. Thereby, giving an edge to a particular institute concerned.

India’s education sector is flourishing, courtesy commercialization. This in turn is leading to a paradigm shift in the way educational institutes are functioning. Education sector is expected to evolve itself to support the growth aspirations of the market by churning out quality readily employable talent. HR is therefore being viewed as a function in educational institutions for playing a critical and interventionist role in educational institutions. They are expected to elevate their role of Personnel and Administrative task supervisor to that of Business Partner.

During our many discussions with various heads of some key institutions, certain Talent management specific challenges were brought out. The Personnel/ Establishment departments in these educational institutions are expected to manage all these issues expertly to support growth aspirations of institute.

Listed challenges faced by the Education industry with focus on its Talent Management:

Employee Recruitment & Retention

Teachers have moved on to the role of a facilitator cum mentor with the growing demands of the education sector. Identifying the need for additional staff and retaining the talent that an organization already has, is no doubt an overwhelming task. The Personnel / Establishment department is expected to keep itself abreast of education world reality and act as a binding force to alert management where ever need be.


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A Comprehensive Talent Management Solution – PeopleWorks

Tangled Procedures

Procedures due to their manual nature are tedious and perceptibly time consuming! Educational institutes along with regular teaching staff comprise of visiting faculty and non teaching staff (like caretakers, cleaners etc). The institutes hire them on contractual basis, for a short tenure, with proximity of extension. With respect to keeping purity of their data comprising of their attendance, leave, tenure etc., there is always a window of ambiguity in the authenticity of information/data. Appropriate management of these members thus remains a daunting task for HR.

A new Accenture report “Convergence Continuum: Towards a 4th Sector in Global Development” estimates that India currently "leaks" approximately $100bn or over 5% of its GDP in under-developing its talent. People are the most important asset of any organization. With ‘Uncertainty’ hovering across industries, effective talent management is undoubtedly the perfect getaway to surpass the turmoil. Quivering times lets organizations and institutes alike face challenges that lay ahead in ‘uncertainties’. With an apt talent management strategy it gets easy to tap competent individuals to have them in tune with an organization’s mission and vision.

An institute’s, comprehensive Talent management program will in many ways help it thrive. A strategic talent management plan will ensure that the institute has proper assessments in place, lays down objectives to churn out the best from the faculty onboard. Giving the staff a platform to harness their hidden potentials and exceed expectations paving the way for a continual learning atmosphere making the institute future ready and prepared to combat any circumstance with its competent workforce.

A focused approach will be needed to develop talent through multiple ways, identifying unique ways which go beyond regular classroom training and on the job exposure to unearth and utilize true potential of talent.

PeopleWorks Differentiator

Every Industry has its set of issues and talent challenges that need supplement of best practices to allow it to flourish. PeopleWorks solution reflects its knowledge in Education sector (courtesy industry specific clientele) and its functionalities therefore imbibes key best practices giving Education Institutions a kick start to address its talent management needs.

We have enhanced PeopleWorks solution to suit specific requirements of Educational Institutions. As a comprehensive, one stop solution that automates Talent management processes, e-files data and extends connect across departments, PeopleWorks ensures efficiency, which ultimately reflects on productivity.

Planning & Management

Educational institutes have a good mix of permanent teaching and non teaching staff along with visiting faculty employed on contractual basis. Planning and utilizing this resource correctly is extremely critical. It is requisite to fill in gaps when a teacher goes on leave of absence (irrespective of it being planned or unplanned). Without proper scheduling and data at one place, the Personnel/ Establishment department finds it difficult to gather reports about the availability of replacement staff for a vacant schedule.

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Management Committee

Personnel/Establishment Dept.

Workflows Leave &Attendance

PerformanceManagement

ReportsEmployee DataManagement

Self Service(Kiosk)

HODTeaching & Non- Teaching Staff

Employee Data Management

With PeopleWorks, Employee data is tracked at one place. Having access to employee basic details, organization details and so on is available in just one application. With the Employee master information report, generating reports gets easy as blinking an eye. This brings efficiency into the whole procedure, and has purity of data. Linked to Recruitment, headcount management becomes stress-free. Loop in verification trigger to ensure every single resource hired is verified.

Leave Management

When staff apply for leave through PeopleWorks application, his/her and reviewer time is saved from manual process. Instead of asking each and every department’s leave details ledger is maintained. The Personnel/ Establishment Department can check everyones Leave balance details in the Leave summary report.

Attendance Management

Attendance data is tracked for all departments in just one location, where the reviewer can track attendance data for a staff with ease. This also helps the Personnel/Establishment department to plan and find the replacement of a particular staff when they take unplanned leaves. The payroll process is also dependent on attendance data. One may easily rely on the attendance data and ensure a smooth payroll procedure. The Establishment department is benefitted and is able to generate attendance details, identify missing attendance data for all staff members, bestowing maximum utilization of man-hours.

Transfer Management Transfer procedure also gets easy with PeopleWorks. Time is saved at the employee’s and approver/employer’s end. The Establishment department may thus channel its energies towards some other productive work.

Broadcast and Query Management

To induce effective communication and have better connect, the Broadcast and Query features saves the Establishment department leave behind cumbersome procedures and establish better rapport with staff members. The Broadcast tool is an effective gateway for the institutes to inform staff about new policies, strategies and so on. The query tool helps your staff to voice their concerns easily with just the click of a button, without having to physsically go to a particular department in concern and flag their queries. This helps tremendously in trackinge TAT for a particular query and resolution extended.

Performance Management

To seamlessly track the performance level of a particular employee, and assess their shortcomings, the Performance Management solution of PeopleWorks is the key. Induce improvements and efficiency in your employees, transform your institute for the better by identifying hurdles on the path to overall effectiveness of your institute with PeopleWorks.


Key Takeaways

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Training Management

Reiterating the importance of effective training, PeopleWorks Training feature strategically streamlines training and development needs of a competent faculty basis identified skill gaps. Along with benefitting the teachers, the platform can pave the way for a knowledge conducive, optimal environment for students. The Performance Management can act as input for Training feature of PeopleWorks that will further help in giving the personnel clear understanding of their career objectives.

Kiosk/One-Stop Computer Terminal Facility

As the education sector has a larger involvement of unskilled employees (caretaker, drivers etc.) and contractual employees (visiting faculties), tracking their availability becomes cumbersome. With the PeopleWorks Kiosk, institutes can bridge the gap and connect them to mainline talent data. The process gets more transparent, benefiting the employees as well – eliminating their need of running from one department to other for sanction of their leaves, getting their salary slips and so on. With training facility extended to this pool of talent, every single resource is connected to the main database.

Reports

Access to data that gives you valuable insight about your institution can be easily addressed by automating key relevant data points. With over 80 plus readily accessible reports, empowering the Establishment department gets easy. The reports generated act as a feeder in taking decisions such as headcount planning, attrition management, etc. thereby aiding the institute to enhance its proximities and add up to the growth quotient in tandem with the requirement.

Exit Management

Employee time is utilized aptly by the PeopleWorks application. With this simple module, a staff under notice can track the status of the separation process easily. The application reduces the manual approach, with staff in concern receiving relieving letters directly via-Email, saving tedium and unproductive man-hours! The Establishment department can also generate separation reports to get prompt status of the separation queue.

Macroeconomic trends perking the newsstands are usually ignored by many of us as a buzz of the newspapers. However, each one of us plays an important role in shaping the future of our economy. The educational sector is thus a lucrative sector. Streamline the talent of your educational enterprise with the magic wand of technology, ensuring smoother workflow. Ensure efficiency by micro organizing employee data, trigger productivity and growth of the educational enterprise. Shift the focus from the attrition mode towards the effective employee engagement mode!

Usher the advantage of cloud with PeopleWorks and enjoy growth uninterrupted!


Call or email us for an insightful demo and our Specialist will create an appointment at the earliest

References

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[http://articles.economictimes.indiatimes.com/2014-11-20/news/56303929_1_growth-forecast-india-s-oecd]

[http://en.wikipedia.org/wiki/Literacy_in_India]

3 [http://finmin.nic.in/workingpaper/EmergGlobalEcoServiceSector.pdf]

4 [http://www.ibef.org/industry/education-sector-india.aspx]

5 [http://finmin.nic.in/workingpaper/EmergGlobalEcoServiceSector.pdf]

6 [http://www.ibef.org/download/Education-Training-August-2014.pdf]

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7 [http://www.ibef.org/industry/education-presentation]

Education sector's growth lies with its talent

Education

Transcript of Education sector's growth lies with its talent