Indian companies are hiring more interns than before to save costs and make up for workforce shortage

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Indian companies are hiring more interns than before to save costs and make up for workforce shortage
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  • According to TeamLease's Apprenticeship Outlook Report, 46% of employers are keener to increase their apprentice pool in the period July to December 2020.
  • Employers are now looking for apprentices predominantly to offset the workforce scarcity and to reduce costs.
  • Employers are eyeing to hire an apprentice who possesses technical knowledge, is willing to learn, and have sound communication skills.
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The spread of coronavirus has shaken our social system, rattled our economies, shut down businesses, and led to a surge in unemployment. College graduates and soon-to-be graduates — who were supposed to join the workforce — were staring at an uncertain future for a while.

However, an increasing number of employers are now looking for apprentices to offset the workforce scarcity and to reduce costs.

According to TeamLease's Apprenticeship Outlook Report, 46% of employers are keener to increase their apprentice pool from July to December 2020. The net apprenticeship outlook for this half-year stands at 3%.

Reasons for increase in apprentice hiring
To offset the workforce scarcity due to COVID-19 pandemic 32%
As part of regular workforce restructuring 31%
To optimise the manpower cost of work at basic levels27%
Capacity building to handle frequent demand surges due to the pandemic 25%
Non-availability of training staff24%
As a step towards workforce downsizing specifically due to COVID-19 pandemic 15%
Source: TeamLease survey

“Despite the predicament that the current pandemic has brought, the overall sentiment amongst companies to hire apprentices has been very positive. While in the initial months of the lockdown, we witnessed a dip, the hiring intent has bounced back quite aggressively, especially since June/July,” Sumit Kumar, Vice President - NETAP, TeamLease Skill University, said

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Top sectors where apprentices will be in demand
Healthcare & pharmaceuticals42%
Manufacturing & engineering 40%
Retail 38%
E-commerce 38%
Source: TeamLease survey

Sectors where apprentices will not be in demand
Travel & Hospitality -10%
Education-7%
Beauty and Wellness -5%
Source: TeamLease survey

Employers are eyeing to hire an apprentice who possesses technical knowledge, is willing to learn, and have sound communication skills.

“The current pandemic has made many realize the potential of investing in apprentices and building a talent pool, especially local talent, to mitigate workforce scarcity in such situations. Close to 24% of organisations have increased their apprentice hiring during the pandemic,” Kumar added.

The report contains insights on employer sentiment regarding apprentice hiring for the period of July 2020 to December 2020. The analysis is drawn based on historical data of apprentice hiring and findings from a survey of 600 employers across 18 sectors and 14 cities.

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