GRIITMobile based free employment service in unorganized sector

INDIAN INSTITUTE OF MANAGEMENTAHMEDABAD

By Rajesh Pentakota, Christoph Hennig

• Business purpose: Removing barriers to employment among people at the bottom of the pyramid • Services

Location based free employment service through mobile phones for the lower income group Establish an interface between employers and job seekers from lower income groups

Project Description

Our Solution - 1

Job Seekers Potential Employers

Mobile based Employment Service

4. Contacts and make the deal

2.Request for info3. Workers data shared

1. Provide information

Workers Database

Personnel information

Prior experience

Education

Flexibility

Expected wages

Revenue per person info shared

• Mobile based job updates to the low income group:o Free service, the job seeker need not pay a penny o Mostly voice based in regional language – offers

ease of operation and convenience to the customerso Mobile penetration is around 25% in rural India,

substantial base to reach o Tries to prevents simultaneous existence of jobs

vacancy and unemployed labor in the job market balance in bargaining power between job seekers

and employers due to improved information flow

Our Solution - 2

• Companies should offer an integrated warranty service over an electric installment / plumbing / sanitation work

To offer such a service companies should recruit plumbers/ mechanics/ electricians and train them to highest quality

They can also tie up with insurance companies to provide an integrated package

Our Solution - 3

Who’s Doing it Currently ? And why is this an issue ?

• Baba jobs is the only noticeable player with 1,63,000 job seekers.

• Labour Net with 44,000 job seekers but offers different service including labour insurance

• Total unorganized labour around 30,00,00,000 in India

• Both Baba jobs and Labournet with 6 years of experience could serve only 0.066% of the total market

What do we recommend ?

• Govt. should take up the initiative of building the job portal - due to the huge stake holders involved and lesser private players involved in extending the reach of information portal at the bottom of the pyramid

• Govt. Should encourage companies by offering huge subsidies at least in the initial years - to offer integrated warranty services with a plumbing / electric installment