JOBS STUDY IKP-LABS

JOBS STUDY IKP-LABS

For World Bank

Mid Term Appraisal

JOBS STUDY IKP-LABS

STUDY OBJECTIVES• Socio-economic impact on youth/family: Increase in

income/communication skills/self-confidence /accessing networks

• Family: social standing/stigma reducing/ receipt of remittances

• Demand for market-linked trainings

HYPOTHESIS• Return on investment is high• Improves the quality of life

JOBS STUDY IKP-LABS

Methodology: Indepth Interviews

• WARANGAL :• VO leaders/parents : Raghunathpally/Aswaraopet

mandals• VO leaders: Peddapendial village• VO leaders : Gadepally village – Sangam mandal

(non-covered)• Employers/alumni : Warangal city• Trainees/faculty: Kazipet training centre

JOBS STUDY IKP-LABS

Indepth Interviews

• NALGONDA• VO interaction: Bibinagar(non-covered)• Parents of students: Chetiyal • VO and MMS: Devarakonda • Employers: Suryapet• Alumni: Suryapet• Employed: Training centre Nalgonda

JOBS STUDY IKP-LABS

• MS/VO/CC: Identifying needy, vulnerable, unemployed youth between 18-26 years who are children of the SHG members;

• Sending the list to the district level for selection;• Conducting selection process with DRF• Deciding the location of the training centre which serves a 35 kms radius

• DRF :• Allocating the youth into various trades based on their interest & competency• Training in the respective trades

• Linking up the trained youth with the Industry for placements• Post placement survey to know the status• Study the socio economic changes of the family of youth

PROCESS

JOBS STUDY IKP-LABS

• Identification of infrastructure for setting up training centre• Allocating budget for three months bus pass if non-residential training• Counseling parents to send their children to metros especially girls for

better opportunities • Arranging and ensuring different stakeholder Participate in valedictory

function • Counseling parents and youth to remain in their jobs despite initial

challenges• Deciding on the methodology of paying back: soft installments• Converging with different government departments who have a job budget

OTHER IMPORTANT PROCESSES

JOBS STUDY IKP-LABS

• Induction program includes life skills along with other personal grooming skills

• Training in English • Trades of training:

– ITES, – Customer relation management (CRM), – Hospitality,– White goods servicing, – Bedside nursing– White goods mechanic (ACs, Refrigerator, etc.,)

• Creating B2Y networks and arranging for mentoring and placement stakeholders

TRAINING DETAILS

JOBS STUDY IKP-LABS

Over All Socio Economic Profile Gender RatioGender No. of

Trainees %age

Male 5880 61% Female 3769 39%

Education Levels

10%

35%

43%

12%

SSC Fail SSC PassInter Fail Inter & Above

Education LevelsEducation No. of Trainees

SSC Fail 937 SSC Pass 3449 Inter Fail 4250 Inter & Above 1162

Gender Ratio

61%

39%

Male Female

Age Profile

64%

26%

10%

18-20 21-23 >=24

Age ProfileAge (in Years) No. of Trainees 18-20 6190 21-23 2534 >=24 925

JOBS STUDY IKP-LABS

Cont… Over All Socio Economic Profile

Familly Income Ranges

17%

71%

12%

5000-9000 9001-12000 >12000

Family Income Ranges

Income Range No. of Trainees 5000-9000 1625 9001-12000 6824 >12000 1157

Family Sizes

55%40%

5%

2 to 4 5 to 7 >7

Family SizesFamily Size No. of Trainees 2 to 4 5214 5 to 7 3849 >7 468

JOBS STUDY IKP-LABS

Placement Details

Sector Trained Placed In the Class Percentage

Automobile 807 610 100 88IT Enabled Services 1901 1465 221 89Customer Relation 2209 1591 346 88& SalesHospitality 1255 868 275 91Bedside Patient 1546 1124 250 89AssistantsMulti Skilled Worker 713 541 84 88White Goods Servicing 853 611 88 82Micro Irrigation Tech. 137 64 53 85Refrigeration & 207 140 21 78AC MechanismTotal 9628 7014 1438 88

JOBS STUDY IKP-LABS

Cont…Placement Details

Salary Ranges13%

21%

6%

60%

<=999 1000-19992000-2999 >=3000

Sector Wise Placement analysis

88

89

88

9189

88

82

85

78

AM ITES CRS HSPT BSPA MSW WGS MIT R&A/C

Salary Ranges

Salary (in Rs.) No. of Trainees

<=999 1038 1000 – 1999 4788 2000-2999 1669 >=3000 521

JOBS STUDY IKP-LABS

MENTORS

• No. of Jobs: 10,000• Mentors: McDonalds, Pantaloon, Kinetic

Honda and Bajaj dealers, B level BPOs, ABN Amro and Citi bank call centres

• Salaries : District level : Rs.18,000 -20,000 annual

• In metros – Rs.36,000 upwards

No of trainees who changed the jobs

30%

70%

Same Job Changed Job

Reasons for changing the Job

8%

7%

14% 4%

25%

35%

7%

Distance from Home Better Working Environment

Better Working Hours Problem in Job

Better Salary Better Oppurtunity

Any Other

No of trainees who changed jobs within 6months to 1 year of working period

Trainees

%age

Same Job 389 30

Changed Job

909 70

Reasons for changing job

Reason %age

Distance from Home 8

Better Working Environment 7

Better Working Hours 14

Problem in Job 4

Better Salary 25

Better Opportunity 35

Any Other 7

POST PLACEMENT SURVEY IN RANGA REDDY DISTRICTSample size 484 -291m/193 females 93 villages in 18 mandals

Reasons for leaving the jobsReasons for Leaving the Jobs

25%

22%

11%9%

13%

20%

Got Married Higher EducationHealth problems Family problemsDistance problem Timings

Reason %

Got Married 25

Higher Education 22

Health problems 11

Family problems 09

Distance problem 23

Timings 20

Percentage Of Trainees, who got Increment Within 6 To 1 Year Of Joining Jobs

PERCENTAGE OF TRAINEES WHO GOT INCREMENT

49%

51%

Yes No

Yes 51%No 49%

Average increment of the trainees who received increment = Rs. 550

Financial impact of the program on the family

Financial impact of the program on the family

38

23

19

12

8

Clearing Debts Savings Assets Education Others

Nature%

Clearing Debts 38

Savings 23

Assets 19

Education 12

Others 8

JOBS STUDY IKP-LABS

• GOVERNMENT PERSPECTIVE:– High unemployment among youth– Social problems– Trainings not market linked

• COMPANY PERSPECTIVE– Emerging service sector opportunities– Skill gap at entry level jobs– High attrition rates and higher income expectations

WHY IKP-LABS PARTNERSHIP

JOBS STUDY IKP-LABS

• Raju 21, painter in Bhongir• Mother : SHG member; father marginal farmer• Private school duped by the head master• 10th standard back to painting• Mother informs him of market linked training• Today Pizza Hut, upmarket Banjara Hills drawing Rs.

36,000 annually

A CASE STUDY

JOBS STUDY IKP-LABS

• ROI• Investment : Rs.6,000 • Return: Rs.25,200 per annum(2,100 pm average)• Investment comes back in three months time• ROI 420%• 40years of productive life (5% escalation)• Earnings Rs.30,44,154

IMPACT ASSESSMENT

JOBS STUDY IKP-LABS

• IKP-LABS (RURAL LABS MODEL) PILOTTED BY IKP• Government of India:• Based on the IKP-LABS rural model, initiated

Grameen Labs with DRF in 4 states and this year plans a contract to do 1,45,000 Jobs nationally including 10,000 in Andhra Pradesh.

IMPACT : Policy

JOBS STUDY IKP-LABS

• Achieve Self-Confidence/self-esteem• Move to better opportunities without project help• Frustrations channelised to aspiration fulfillment• Addresses vulnerability (non-agricultural)• Improvement in their quality of life• Feel good contributing to family income:

* Increased awareness of outside opportunities and information

IMPACT ON TRAINED YOUTH

JOBS STUDY IKP-LABS

• For girls : save money for marriage• Better marriage/divorce stopped• Social respect for girls increased: not just housewives• Send remittances home through money orders

IMPACT : Girls

JOBS STUDY IKP-LABS

• Family prestige goes up with children's white collared job

• Indebtedness less due to certainty of income flow and clear old debts

• Savings made in chit funds, banks• Surplus for younger children education• Well being increases due to extra money for health

expenditure and food security

IMPACT: PARENTS

JOBS STUDY IKP-LABS

• VO’s motivated parents to send children to the trainings• Focused on girls• Proud girls are working in Hyderabad in computer firms• Program is good as youth are sending money to parents for

household consumption and savings by chits• If unemployed, youth will waste time watching TV and ungainful

activities• Sufficient notice must be given to VOs to motivate more youth

VO LEADERS PERCEPTIONS

JOBS STUDY IKP-LABS

• Acute poverty : Need stipend (Gadepally) Training centre Kazipet

• Rs.275 insufficient. No buses .Have to travel by autos• Construction workers willing to forgo wages for such market-

linked trainings• Counseling needed to motivate youth that they can do white

collared jobs• Control villages: 50 unemployed youth in village with 500

families. No information. Willing to send them for training- Bibinagar

UNCOVERED VILLAGES/YOUTH: Experience

JOBS STUDY IKP-LABS

• Motivated employees• “Better than MBA” Citi Bank • Micro irrigation: more practical training to be given so

that youth need not work as trainee. Dropouts occur because of low trainee salary

• Automobile industry: Youth move out to set out their own mechanical shop. Latent entrepreneurial skills unleashed

EMPLOYERS PERCEPTION

JOBS STUDY IKP-LABS

• Addresses social problems in RAIV; hence police cooperate• Impacts the next generation of SHGs• Definite change in youth in change from rude to polished

behavior, dress sense and become role model for others• Partnership good since govt. cannot do market linked training• Converge with other related govt. depts for this program

DISTRICT OFFICIALS PERCEPTIONS

JOBS STUDY IKP-LABS

• Dropouts in multi skilled workers and nursing due to lower salaries

• Tracking youth difficult as they do not inform about job changes

• Lack of accommodation in metros poses a problem

CHALLENGES

JOBS STUDY IKP-LABS

• Strength of the partnership:– Both IKP & DRF have common vision of providing

sustainable livelihoods to the poor• Large network of SHGs of IKP-mobilisation of really vulnerable

facilitated• Weakness of partnership compared to Upadhi/Grameen

– Decentralised approach –funding delays• Planning difficult for faculty/placements-makes implementation

difficult

DRF PERCEPTION

JOBS STUDY IKP-LABS

• Lessons for LABS:– Drop trades with low incomes like multi skilled workers– Include practical in trades like micro irrigation to avoid

internships with low salaries – Mentor enterprises for trained youth by facilitating credit –

videography/photography

Way Ahead

JOBS STUDY IKP-LABS

• Systematic approach of budget flow and MOU signing• Treat DRF as partners and stakeholders not mere

trainers• Putting in place counseling facilities at VO level to

encourage especially girls to take up better opportunities in metros

Lessons for District Functionaries

JOBS STUDY IKP-LABS

• For scaling, appoint at least 2 staff dedicated to jobs in districts • Centralized MOU/payment to partner for better quality and

planning• Half way homes in Hyderabad, Bangalore, Chennai need to be

urgently set up to prevent dropouts

*Youth can stay in half-way homes for three months with escalating rent till they find their feet

Lessons for District Functionaries

JOBS STUDY IKP-LABS

PLANS 2006-8

JOBS STUDY IKP-LABS

Budget/Targets

• 2006-8 1,50,000 jobs• 2006-7 Rs. 30 crores 68,200 jobsIKP-LABS 18,200 (GOI,DFID,IKP)Security 16,900Textiles 22,000District models/JKC/Kiosk/pilots/it-rural 12,000 Budget requirement for 2007-8 Rs. 40 crores

JOBS STUDY IKP-LABS

• LAs in place, 2 per district• CRPs-15 in star districts and 8 in others

Designed training modules for LAs and CRPs

For CRPs, focus is on counselling, motivation, communication , work planning

* Strong building blocks for scaling up

JOBS STUDY IKP-LABS

• English and soft skills module: Detailed plan made Fund requirement Rs. 20 crores Quantum jump in employability• Employment exchanges become livelihood

hubs• Link with Jobs search engines• Bringing poor closer to the markets