PMKVY PLUS – a concept note

Top challenges in Skill eco system

The top challenges in skill eco system today are:-

  • Private sector employer participation in PMKVY
  • Employment after Skilling
  • Retention after employment
  • Quality of training. The specs of the training program is defined by the donor currently and not the
    beneficiary ( the employer ) ,often necessitating retraining by employer. Excessive checks and balances
    are required to prevent fraudulent training practices.
  • Excessive dependence on a 100 % grant model of public money
  • wastage of public money when the trainee is not able get a job and use the skill

PMKVY PLUS will address all these problems

What is PMKVY PLUS?
  • Classic demand driven skill model with stake for employer
  • Co- pay system with employer and government contributing
  • Employer specifies Customised training on top of SSC QP program
  • SSC , employer , training partner and skill ministry come together the offer the training program specific
    to a job role for the employer
  • It is a Skill plus productivity model of training
How does this work?
  • SSC and Training Partner (TP) approach large employers that they will offer “ day one” productive SSC certified employee provided they co-pay and pre- select employees for the skill training
  • The TP will develop a customised training program – based on the existing QP course for that role or create a new QP – in consultation with the SSC and the employer
  • SSC will issue a new QP for this role.
  • Employer will take responsibility for the quality of training and will choose the training partner
  • Employer will be ensure high certification and employment % by continuous evolution of the QP and the course
  • Certification will be issued by SSC, skill ministry and the employer
  • Employer will assess the candidates – pre and post training
  • The employer will hire the certified trainees at the end of the program
  • Employer will pay for the training to the TP and claim the government share only for Candidates retained after three months of employment.
  • in short the employer designs the program, pre-selects and counsels the Candidate – executes through a TP, conducts quality assessments with the SSC help, certifies with the SSC and skill ministry, pays the TP and claims after three months for the retained candidates a share of the cost
Why custom designed training ?

Productivity on the job requires customised training designed for productivity post training. Employers are willing to co-pay only if the induction training is also included and employer need not provide additional training.

Why would employer co- pay?

Because a productive employee is worth paying for and the co- pay amount will be lower than the cost of low productivity of the untrained employee.

How big can this program be?

This can be a new program aimed at graduate segment in addition to PMKVY and DDUGGK. Many sectors where there is a shortage of productive employee will participate – banking ,insurance , Financial services , health care , Retail are some of the sectors
Roles ideal for PMKVY PLUS are sales and customer service in the above sectors. The potential could be as much as a million graduates an year with in 2 to 3 years.

Benefits to the employer

Day one productive employee at a subsidised cost

Benefits to the candidate

A job after training and a great chance of retaining the job plus a certification to help get the next job

Benefits to the government
  • Ideal skill development model where the employer drives the entire skill development and also pays part
    of the cost , absorbs the skilled employee and also retains him/her
  • frees skill ministry time to focus on entrepreneurship Skilling and other programs like DDUGGK
  • frees the ministry to be a regulator rather than a monitoring agency
  • minimises wastage in job linked Skilling program – pay only for those retained
  • employers participating in the program will have to pay fair salaries to retain employees.
Next steps

TMI E2E academy along with RASCI – Retail SSC can take the initiative with Life Insurance Council – apex
body of life Insurance companies – to pilot this in life Insurance industry.
Author

T Muralidharan

Chairman
TMI Group
tmd@tminetwork.com
April 2017

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With beginnings in 1991 TMI Group has emerged as one of the most respected names in the HR industry.
OUR LOCATIONSWhere to find us?
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