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

PROCESS

• 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 JOBS STUDY IKP-LABS

OTHER IMPORTANT PROCESSES

• 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 JOBS STUDY IKP-LABS

TRAINING DETAILS

• 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 JOBS STUDY IKP-LABS

Gender Ratio

Gender No. of Trainees  Male  Female 5880 3769 %age 61% 39% 39%

Over All Socio Economic Profile

Ge nde r Ratio Education Levels

Education No. of Trainees  SSC Fail  SSC Pass 937 3449  Inter Fail 4250  Inter & Above 1162 12%

Education Levels

10%

Age Profile

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

Age Profile

10% 64% 26% 61% Male Female 43% SSC Fail Inter Fail 35% SSC Pass Inter & Above 18-20 21-23 >=24 JOBS STUDY IKP-LABS

Family Income Ranges

Income Range  5000-9000  9001-12000  >12000

Cont… Over All Socio Economic Profile

No. of Trainees 1625 6824 1157

Family Sizes

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

Family Sizes Familly Income Ranges

12% 17% 40% 55% 2 to 4 5 to 7 >7 5000-9000 71% 9001-12000 >12000 JOBS STUDY IKP-LABS

Placement Details

Sector Trained Placed

Automobile IT Enabled Services Customer Relation & Sales Hospitality Bedside Patient Assistants 807 1901 2209 1255 1546 Multi Skilled Worker 713 White Goods Servicing 853 Micro Irrigation Tech.

Refrigeration & 137 207 AC Mechanism

Total 9628

610 1465 1591 868 1124 541 611 64 140

7014 In the Class

100 221 346 275 250 84 88 53 21

1438

JOBS STUDY IKP-LABS

Percentage

88 89 88 91 89 88 82 85 78

88

Cont…Placement Details

Salary Ranges

Salary (in Rs.) <=999  1000 – 1999  2000-2999  >=3000 6% 21% No. of Trainees 1038 4788 1669 521

Salary Ranges

13% 60%

Sector Wise Placement analysis

78 88 85 89 82 88 88 91 89 AM ITES CRS HSPT BSPA MSW WGS MIT R&A/C <=999 2000-2999 1000-1999 >=3000 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 JOBS STUDY IKP-LABS

POST PLACEMENT SURVEY IN RANGA REDDY DISTRICT Sample size 484 -291m/193 females 93 villages in 18 mandals No of trainees who changed jobs within 6months to 1 year of working period Same Job Changed Job Trainees 389 909 %ag e 30 70 No of tra ine e s w ho cha nge d the jobs

30% 70% Same Job Changed Job

Reasons for changing job

14%

Reason

Distance from Home Better Working Environment Better Working Hours Problem in Job Better Salary Better Opportunity Any Other

%age

8 7 14 4 25 35 7 8% 7% 7% Distance f rom Home 35% Better Working Hours Better Salary Any Other 25% Better Working Environment Problem in Job Better Oppurtunity

Reasons for leaving the jobs

Reason Got Married Higher Education Health problems Family problems Distance problem Timings % 25 22 11 09 23 20

Reasons for Leaving the Jobs

20% 25% 13% 22% 9% 11% Got Married Health problems Distance problem Higher Education Family problems Timings

Percentage Of Trainees, who got Increment Within 6 To 1 Year Of Joining Jobs Yes No 51% 49%

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

PERCENTAGE OF TRAINEES WHO GOT INCREMENT

49% 51% Yes No

Financial impact of the program on the family Nature

Clearing Debts Savings Assets Education Others 38 23 19 12 8

% Financial impact of the program on the family

8 12 38 19 Clearing Debts Savings 23 Assets Education Others

WHY IKP-LABS PARTNERSHIP • 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 JOBS STUDY IKP-LABS

A CASE STUDY • 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 JOBS STUDY IKP-LABS

IMPACT ASSESSMENT • 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 JOBS STUDY IKP-LABS

IMPACT : Policy • 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.

JOBS STUDY IKP-LABS

IMPACT ON TRAINED YOUTH • 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 JOBS STUDY IKP-LABS

IMPACT : Girls • For girls : save money for marriage • Better marriage/divorce stopped • Social respect for girls increased: not just housewives • Send remittances home through money orders JOBS STUDY IKP-LABS

IMPACT: PARENTS • 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 JOBS STUDY IKP-LABS

VO LEADERS PERCEPTIONS • 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 JOBS STUDY IKP-LABS

UNCOVERED VILLAGES/YOUTH: Experience • 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 JOBS STUDY IKP-LABS

EMPLOYERS PERCEPTION • 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 JOBS STUDY IKP-LABS

DISTRICT OFFICIALS PERCEPTIONS • 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 JOBS STUDY IKP-LABS

CHALLENGES • 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 JOBS STUDY IKP-LABS

DRF PERCEPTION • 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 JOBS STUDY IKP-LABS

Way Ahead • 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 JOBS STUDY IKP-LABS

Lessons for District Functionaries • 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 JOBS STUDY IKP-LABS

Lessons for District Functionaries • 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 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 jobs IKP-LABS 18,200 (GOI,DFID,IKP) Security 16,900 Textiles 22,000 District 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 JOBS STUDY IKP-LABS