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N.E.E.D. Nation : Expert, Empowered Developed Challenge Future 2013 : Make It Work Team – WeConsult University – IIT Bombay Roopesh Donde Aniruddha Kulkarni Chetan Bhattula

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Page 1: Make it work we consult

N.E.E.D.Nation : Expert, Empowered Developed

Challenge Future 2013

: Make It Work

Team – WeConsult

University – IIT Bombay

Roopesh DondeAniruddha Kulkarni

Chetan Bhattula

Page 2: Make it work we consult

Youth and Unemployment Youth – The time of life between childhood and adulthood (maturity) Unemployment – The proportion of people in an economy who are willing and

able to work, but are unable to get a job Unemployed youth – Teenagers in age group 15-24, excluding students, who

are willing to work but unable to find a job.

Indian Employment overview

Population : 1.205 Billion(2012)

Youth Population Ages 15-24 : 241 Million ( 2011)

Sex Ratio : 1.08 :1

Literacy rate : 74% (2012)

Literacy rate of 15-24 year olds : 81.1 % (2006)

Total Labor Force : 487.6 Million (2011)

Unemployment Rate : 9.8%

Total Unemployed persons : 47.78 Million (2011)

Youth Unemployment (15-24 years) : ~ 5 million (2012)

Global Youth Unemployment :

75 Million

Experience and Discover | Solution N.E.E.D. | Impact and Future

Page 3: Make it work we consult

Is 75,000,000 Global Unemployed Youth a problem?• Unemployment effects each and every sector in the

country.• For Stable Economic growth an unemployment rate of

2-4% is required but it has adverse effects on the unemployed.

• There are 5,000,000 jobless youth in India.• According to National Skill Development Corporation,

India will require skilled labours to match its growth.• Although there is a rise in job requirement and there are

people willing to work, the Supply is not meeting the Demand and the unemployment due to skill mismatch.

• To match with the information and technological age, rapid developments in skill trainings and employee capabilities are required.

INDIAN EMPLOYMENT LANDSCAPESectors with formal and informal Employment in

MillionsYear Formal Informal Total

2004-05 32.79 368.35 401.352007-08 30-35 415-420 415-420

Current and projected Employments in Informal sector

Sector 2008 2022 Incremental employment

Informal 9.70 26.75 17.04Projected Share of Employment in Different Sectors

Year GDP Growth Rate Formal Informal Total

2011-12 9% 34.54 453.13 487.67  7% 34.18 422.18 476.36

2016-17 9% 33.93 521.96 555.90  7% 33.08 490.46 523.31

2021-22 7% to 9% 6 to 7 % 94 to 95 % ???

Experience and Discover | Solution N.E.E.D. | Impact and Future

Page 4: Make it work we consult

Problem Tree analysis

Different Solutions

Budding Entrepreneurships and

Angel Funding

Portals/Agencies for unorganized centres

Skill distribution centres

Cross skills Trainings

Spreading job requirement Awareness

Changing education system to match skillset

Government unemployment schemes

Experience and Discover | Solution N.E.E.D. | Impact and Future

Page 5: Make it work we consult

N.E.E.D – to eradicate unemployment and develop the nation

N.E.E.D.Organization structure

Administration

Business Development department

Skill Training

HR Department

IT department

Operations Department

Basic WorkflowN.E.E.D : Nation : Expert, Empowered Developed

Mission : To Cater to the day to day needs of citizens by developing a pool of quality skilled workers by effective training system

Vision : To create expertise in various skills in order to empower the unemployed and develop the nation

Idea : Looking to provide employment to unemployed youth in the unorganised sector by providing incentive based skilled trainings and employ them to service the different house hold needs

Working Principle

: Single Telephone point of contact for approaching for customer service as well as for employment to be deployed in cities and towns targeting unorganized sector small scale jobs and turning them in organized sector.

Motto : “One number to cater to all your NEEDs”

Target : To provide a skilled base of personnel for 240 million jobs required in India till 2022 as projected by the National Skills Development Organization

Method :

- Identify work in the unorganized sector- Scout the Unemployed / Skill-less- Train employees using Gamification and

incentive driven Techniques- Satisfy the new market needs - Resource pool and Job Pool

Experience and Discover | Solution N.E.E.D. | Impact and Future

Page 6: Make it work we consult

Implementation of N.E.E.D in Mumbai, India

Administration Administrating departments will monitor the : Skill,

HR, IT, Operations and Business Development Each office will include training facilities. Central office will be at Airoli, Navi Mumbai,

strategically located to be in a SEZ area and will include, IT, Admin and Business Development team.

Initially use a manual system and then switch to a ERP based management system to maintain the organization

BPO outsourcing for business generation, Employee and resource mapping.

Contact NGO and CSR organization to hire Top level management team who has a better understanding of the unemployment situation

Mumbai Penetration Target

Total Metropolitan Area Population of Mumbai in 2012

: 2.05 Million(2012)

Total Labor Force : 83.21 Million (w.r.t India Figures)

Unemployment Rate : 9.8%

Total Unemployed persons : 8.13 Million (@ 9.8%)

Youth Unemployment (15-24 years)

: ~ 80,000 (10% of unemployed persons)

Initial Setup Initial implementation to be done across in Mumbai,

Maharashtra, India – Head Office, Vashi, Navi Mumbai

Mumbai to be selected as the location as it has population of 2 Million and has multiple magnitude in term of job opportunities and household base

2 regional offices in each areas. Total 6 office location to start at regions in Mumbai Harbor : Vashi, Airoli ; Mumba Central - Dombivili, Bhandup and Mumbai Western : Andheri, Borivili.

The Mumbai implementation to be completed in a period of 18 months (target)

Each office will include training facilities and resource management with the Head office equipped with IT,HR, Marketing and Operations Department.

N1 Vashi , Head Office , Mumbai N2 Dombivili

N3 Airoli N4 Bhandup

N5 Andheri N6 Borivili

Experience and Discover | Solution N.E.E.D. | Impact and Future

Page 7: Make it work we consult

Business DevelopmentPromotion and Awareness• Advertise through local transport like Government

Bus, local trains in the target regions.• Pamphlets in popular newspapers and regional

language newspapers.• Ads will contain general information regarding

N.E.E.D and 1 contact number• The number will act as a medium for both accepting

work as well as employee skill recruitment

Experience and Discover | Solution N.E.E.D. | Impact and Future

Advertising Modes Public Reach

Mumbai Suburban Rail Systems 6.3 Million (2007)

Best Bus 5.5 Million (2008)

Households 4.2 Million (2008)

Target Reach 20% by every means

Total Target Reach 3.2 Million

Recruiting workers / employees• A person can register for training and work• He will be trained and staged in the resource pool• A person can register only for training/cross training

and move on to his/her job• Work generated from Job Pool will be assigned to

compatible worker

Household Requirement survey• We performed a Household requirement survey in

which we asked people how many times they did required a job to be done.

• We asked them about 20 Jobs : Plumber, Carpenter, Mason , Driver, Tailor, Beautician, Hairdresser, Cook, Waiter, Bartender, Security guard, Baby sitter, Welder, Electrician, Vehicle mechanic, Gardner, Machinist , event Manager, Salesman, Domestic worker.

• The calculations were summed up and we got a average job be done for a set of 63 individuals to be 53.67 units of different jobs per year per person.

• Survey Link : https://docs.google.com/a/sjmsom.in/spreadsheet/viewform?formkey=dGprZElqZjlLQjRvLU5ocEE3SkI5a2c6MQ&ifq

Household survey inferences – Mumbai View

Number of Households in Mumbai 4.2 Million

Average Job required per person in a year 53.67

Assuming 2 working persons in a household – total jobs required per household

107.37

Total Household Job Units 450.867 Mn Job Units

Jobs in a year for any worker(assumed) 600 units

Total Workers Required 0.75 Million

Total unemployed available 80,000

Success MantraSatisfy the JOBs identified and

Reached in the area at a acceptable rate by skill training the Unemployed

persons available in the region

Page 8: Make it work we consult

SKILL TRAININGCategorization of employees/workforce

Experience and Discover | Solution N.E.E.D. | Impact and Future

Youth Unemployed(Unskilled +

Unexperienced)

Youth Unemployed (Unskilled + experienced)

Unemployed (Skilled +

experienced)

Training Schemes Offered

Train & work

• A Registered person will be offered training in a particular field of interest/ availability

• The worker wont be charged for the

training• Payment according to

the duration of the training

• A fixed 1 year work period in the

organization after training period

Training only

• A Registered person will be offered training in a

particular field of interest

•Charges for different job trainings and

tenure• The Trainee has a

option to work for the organization and

get paid if he is interested

Cross Training

• Continuous cross training to employees

who are idle in resource pool

•Preference to unskilled persons.

• Employee choosing to train and leave the

organization have to pay for trainings

• Employees can cross train and get paid if

they decide to do a 1 year fixed work after

their training

Types of Trainings

Classroom

Trainings

Practical on the

Job Training

Virtual Simulation

Advanced

courses

Training Procedure• After selecting the type of training the

employee will be provided with training kit : Manual, ID, Equipment(if reqd.), Tablet

• Classroom training will be given at the start of the program

• After completion OJT/Simulation will be done

• Weekly tests will be conducted to check on regular learning

• A final written and practical test to be conducted.

• A Certificate will be provided and will try to get it authorized by the NSDC, India

Manufacturing and Production-related –

welders, fitters, machinists, machine-

operators

Retail – salesmen,

shop assistants

Transportation – equipment

operators, drivers

Textiles and Apparel -tailors, dress

makers, sewers, upholsterers

Furniture - carpenters,

cabinet, related wood workers

Personal care – beauticians, hair dressers

Hospitality – cooks, waiters,

bartenders

Food Processing – operators, packers, sorters, cleaners,

inspection

Security guards

Skill Types

Source : http://www.nsdcindia.org/

Page 9: Make it work we consult

Gamification : Incentive based Training/WorkExperience and Discover | Solution N.E.E.D. | Impact and Future

Gamifying the system• To develop motivation and interest in training as

well as work, day to day life will be gamified.• Every Trainee, Employee, Staff, worker will have a

certain level associated to him/her.• As he/she progresses in the organization he will

be leveled up and different incentives will be unlocked.

• These incentives will be separate from the salary they will be getting.

• The incentives and rewards will be in the form of vouchers, paid leaves, travel allowances etc.

• A portal will display their level details w.r.t others

Leveling up• Every employee/trainee will start at level 0• Level up happens when they collect points• Points are rewarded on

• Completing a training• Daily jobs• Experience• Extra jobs per day• Cross Trainings in different skill• Reducing number of leaves in a month • Advanced trainings and so on

• On leveling up a person will be open to• Shopping vouchers• Cash vouchers• Paid Leaves• Travel allowances• Free cross trainings• Food Coupons• Loans

• Each level will have a different significance according to the work of a person

Impact of Gamification • Employees/trainees motivated to work• They will never sit idle and will be in constant need to

level up• Employees will be motivated and interested to develop

their careers• Incentive to complete more jobs and do them effeciently

Page 10: Make it work we consult

Impact and FutureCurrently operating in Mumbai : If we consider set up time as 1 year and Targeted total unemployed youth of 80,000 and having 450 Mn Job available to be worked upon we get the following results per year

Experience and Discover | Solution N.E.E.D. | Impact and Future

Year 2014 2015 2016

Training the unemployed 12000 30000 60000

Total jobs performed in a year 7.2 Million 18 Million 36 Million

Employee Salary + commission per job INR 7000 + 30% Commission

INR 7000 + 45% Commission

INR 7000 + 50% Commission

Total Revenue INR 366 Crore INR 1194.6 Crore INR 2185.26 Crore

Total Expenses INR 365.94 Crore INR 1086.45 Crore INR 2074.54 Crore

Retained Earnings to be invested back in N.E.E.D

INR 5.4 Lakh INR 108.15 crore INR 110.71 Crore

Market Share 1.6% 4% 8%

Basic Calculations : https://docs.google.com/a/sjmsom.in/spreadsheet/ccc?key=0AnA70KD9STfcdDJBdUMzd1N1SEkzbVJQMTNidndqQWc&usp=sharing#gid=0

The Retained Earnings in the 2nd and 3rd year will be used to open a branch in another city and provide jobs for the unemployed people.

We are tapping a maximum of 8% from the unorganised market share which is abundance of job availability

Initial Funding required per year can be taken as a loan from NSDC and paid back in the same year through revenue generated from services and additional training

As the process is huge and eradicating a sum of 5 million youth will take lot of time and effort, but it can be done in the long run.