The Education and Employment Gap

RAMAN

MBA-Marketing & IB from one of the Top B-School of Pune

DESIRED PROFILE-  Brand and Promotional Marketing

PROFILE BEING OFFERED- Business Development Executive  or Sales executive(sales person in easy term)

VENKATESH MURTHY

B.Tech|Computer Science|abc Engineering college[top engineering B’School]

DESIRED PROFILE -job in Top IT company| 6-7 lakhs per annum

CURRENTLY WORKING - Customer support officer|IT BPO|2-3 lakhs

EKAANSH KUMAR

MBA|Marketing-Finance|abc Business School [top private B’School] Annual fee-3.5+ lakhs

DESIRED PROFILE - Management level job|MNC company| 6-7 lakhs per annum

CURRENTLY WORKING-Business Development Executive|xyz Pvt Ltd.|1-2 lakhs + incentives

DEEPALI
MBA| Finance|abc Business School [top private B’School]|Annual fee-3+ lakhs

DESIRED PROFILE - Management level job|MNC company| 6-7 lakhs per annum

CURRENTLY WORKING -Relationship Manager-getting clients| International Bank|1-2 lakhs + incentives

These are the stories of so many other Raman and Deepali in India whose parents spend lakhs of rupees on their studies and these student give their years to study with the expectation to get a good job ( as comes in the media every year during placement season) and support their parents , after all their so much of investment.

However, their dream shatters as soon as they step out in real corporate world.

The scenario of education and employment today.

·         It is not that there are not enough jobs available.

·         Neither the story is that demand of professionals is more than the supply per year from the institutions.

·         Nor it is the other way that no one is getting high salary white-collar job.

“24/7 Customer Pvt. Ltd. wants to hire 3,000 people this year.

Tata Group, expects to hire 65,000 people this year”

But  About 80 per cent of people only want 20 per cent of jobs in MNC’s, which they see as their ticket to a better life, only white collar jobs are attracting youth whose aspirations distort reality.

“Companies prefer the experienced candidates and no one want to give a fresher to learn and get experience for the desired profile.”

Not every job meets everyone’s need nor does every candidate meet the needs of every job.

Every year about millions of students getting graduated in engineering, accounts, management etc, but as a fresher only about 20% get the job they expected, the salary they expected. 

And rest are still in search of the job profile and the salary so that they can take care of their and their families expenses on their own, so that they can repay the loan they had taken for their education...

Prashant | 24 | son of farmers from a village from outside Karnataka. 

He had just finished his MBA—in Finance—from one of Bangalore's top colleges.

His father borrowed Rupees 4,00,000 for his  studies.

Now, almost a year after graduating, Prashant is still looking for an entry-level finance job.

Why is the scenario like this even when the jobs are available in numbers and at the same time, the number of qualified people required for the particular jobs are so high?

The Only answer is The Education and Employment gap

The academic institutions [ supply end]

No doubt, India has immense human resource power.

And there are around thousands of  universities and institutions providing graduation and post graduation education to thousands of students.

The Industrial sector [ demand end]

Even the media is flooded with the news which industry  or sector is providing n numbers of job with the unexpected high salaries.
Top MNCs hiring candidates for top level management or operational level at high packages.

However, this is not the 100% scenario, they are showing the small as the big picture.

This is true that the job opportunity has increased in numbers in last few decades due to Foreign companies entering Indian market, booming of service sector and IT sectors.

But,Not all graduates get suitably employed.

All the jobs available are not for the freshers, but the companies want the candidate with the experience .

In a survey, conducted annually by Pratham (a nongovernmental organization):

75% of technical graduates and more than 85% of general graduates are unemployable by India's high-growth global industries, including information technology and call centres.

We don’t have a jobs crisis, we have a skills crisis.

There is not the case of high supply and low demand. Here, the demand is high and the supply is also high, but the quality is too low.

• The main reason for the entry-level jobs is the lack of skills
• According to the employers, the students coming out from the colleges after their engineering and management studies are not prepared to join the workforce.

In the real business or corporate world, the theoretical knowledge gained by the students in order to get the highest marks is not that much required as much of practical knowledge of the business.

Moreover, the syllabus, which students are studying, is out-dated and disconnected from the real world.

Only few professors understand this and teach the students what is hot in the market.

Companies struggle to get their demand fulfilled by quality talent

One survey says that only 3 out of 100 applicants can be considered to be hired.

The aspirations of the students are getting too high that they are not ready to take the low-level jobs available for the fresher.

In this tough competitive era, few students are able to qualify the IITs and NITs, other who want to study engineering, are getting attracted towards private engineering colleges paying so high fees. Fees in such universities and institutions are on an average 4-6 times more than government universities and institutions.

The same case is with the management students who are running towards private B-Schools paying much higher fees.

POSSIBLE REASONS BEHIND THIS:

• Everyone wants to enter MNCs because of its charm, dignity, high income and “white-collar” status.
•  Every year all media is covered with the MBA and Engineering students being placed with package of crore per annum.
•  Which they see as their ticket to a better life." In short, only white-collar jobs are attracting youth whose aspirations distort reality.
• Such colleges creating hype and doing promotions in such way that a student just by taking up admission there will get a high salary package job in top MNCs.

The main motive of any private institution is to make good business and increase their business every year. They are not there to do any social service.

With the increase demands for colleges, with all the facilities and glamour, providing high profile life style, they try their best to attract the students who are not able to get the admission through any reputed Government colleges or who want to live a lavish life during and after their studies. 

They are giving the admission to the students without creating a quality benchmark, but on the benchmark of the money available in the account of the students’ parent’s. 

Before taking the admissions for their dream course, they have weaved the dream of the top level “white collar” job with high salary and that too getting by placement.

Such colleges also help a lot to see such dream and claims that they are going to get them make their dreams in true.
It is so easy for them to promise, but reality is not so easy.

They focus on the numbers of seats filled, the positive feedback in terms of the life in college. But the most important thing is even u have taken the students in the college in the name of “giving opportunities to all”, make them employable so that they don’t have to suffer later.

 ___
Refrence: 

 http://businesstoday.intoday.in/story/companies-work-towards-skills-gap-in-india/1/193097.html 

 http://www.onefoundation.in/q.php?page=Papers&p=d&id=1