“The biggest challenge for job seekers in the MSME space would be to align with the management in a sector that has traditionally been tech-averse. Another challenge will be to match compensation in tune with the standards of technology companies,” says Dr Ajay Kela, President and CEO, Wadhwani Foundation.
By Abhishek Sahu
The MSME sector is the growth engine of the Indian economy employing millions in India. However, with the onset of the Covid-19 pandemic, the sector has been dealt with a debilitating blow. A survey covering 5,000 MSMEs conducted by the All India Manufacturers’ Organisation (AIMO) has revealed that 71% of the businesses weren’t able to pay salaries in March.
Since Covid has thrown up an unprecedented opportunity, industry leaders say those that survive will come out strong, and the overall noise in the system will reduce as weak organisations would have exited the system. According to Dr Ajay Kela, President and CEO, Wadhwani Foundation, these surviving MSMEs will have newer sectors poised for growth that they explore – healthcare, online education, edtech, grocery delivery, and e-retail solutions like e-pharmacies.
Switching to digital pathways will be essential
The traditional talent landscape for MSMEs needs an overhaul and facelift in favour of new-age tech-empowered skillsets. “The biggest challenge for job seekers in the MSME space would be to align with the management in a sector that has traditionally been tech-averse. Another challenge will be to match compensation in tune with the standards of technology companies,” Dr Kela said.
According to Dr Kela, agile MSMEs who have a progressive mindset of innovation will be the ones who will break hiring conventions to tap into ‘smart’ talent. However, on a broad scale, “MSMEs will need to be counselled and mentored in order to create a cultural shift in their hiring process (both pre and post), starting from the right job description, onboarding process, a robust assessment system and a performance management system that rewards and recognizes the best and charts out a clear growth path,” he said.
Speaking on some of the emerging trends impacting talent acquisition in the MSME sector, Dr Kela said switching to digital pathways to run the business will be essential to compete in a predominantly remote and online business world post the pandemic.
Pointing out the alternative funding platforms, he said, “Micro-credit phenomena will see a surge with the microfinance lenders playing a more aggressive role in addressing the credit requirements of MSMEs through affordable and convenient repayment solutions.”
India needs a flawless implementation of proposed policies
Calling the MSME sector as the most crucial to solve India’s jobs crisis and fulfilling the aspiration of a $5 trillion economy, Dr Kela said, while the financial help has come in from the government through a stimulus package, the sector requires direction and guidance in the form of business consulting services.
He said, “In India, the job growth has failed to keep pace with the GDP growth. Some of the steps taken by the Government in recent times will go a long way in correcting this imbalance viz skilling for an employable workforce, building infrastructure, bringing in more investment, etc.”
However, he further said, strong policies alone will not yield the desired results. “India needs a flawless implementation of these policies. This can only happen through the integration of the multiple policies across central ministries, as well as the states, increased sharing of best practices between states, and earliest monitoring of outcomes for quick mid-course policy corrections if needed,” Dr Kela added.
Source: HR World – Economic Times