JOBS STUDY IKP-LABS

1. JOBS STUDY IKP-LABS For World Bank Mid Term Appraisal

2. 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

3. 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

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

5. 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

6. 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

7. 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

8. Over All Socio Economic Profile • Gender Ratio • Gender No. of • Trainees %age • Male 5880 61% • Female 3769 39% • Education Levels • Education No. of Trainees • SSC Fail 937 • SSC Pass 3449 • Inter Fail 4250 • Inter & Above 1162 • Age Profile • Age (in Years) No. of Trainees • 18-20 6190 • 21-23 2534 • >=24 925

9. Cont… Over All Socio Economic Profile • Family Sizes • Family Size No. of Trainees • 2 to 4 5214 • 5 to 7 3849 • >7 468 • Family Income Ranges • Income Range No. of Trainees • 5000-9000 1625 • 9001-12000 6824 • >12000 1157

10. Placement Details SectorTrainedPlacedIn the Class Percentage Automobile 807 610 100 88 IT Enabled Services 1901 1465 221 89 Customer Relation 2209 1591 346 88 & Sales Hospitality 1255 868 275 91 Bedside Patient 1546 1124 250 89 Assistants Multi Skilled Worker 713 541 84 88 White Goods Servicing 853 611 88 82 Micro Irrigation Tech. 137 64 53 85 Refrigeration & 207 140 21 78 AC Mechanism Total 9628 7014 1438 88

11. Cont…Placement Details • Salary Ranges • Salary (in Rs.) No. of Trainees • <=999 1038 • 1000 – 1999 4788 • 2000-2999 1669 • >=3000 521

12. 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

13. 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 Reasons for changing job

14. Reasons for leaving the jobs Percentage Of Trainees, who got Increment Within 6 To 1 Year Of Joining Jobs Yes 51% No 49% Average increment of the trainees who received increment = Rs.550

15. Financial impact of the program on the family

16. 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

17. 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

18. 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

19. 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.

20. 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

21. 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

22. 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

23. 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

24. 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

25. 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

26. 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

27. 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

28. 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

29. 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

30. 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

31. 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

32. PLANS 2006-8

33. 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

34. 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

35. 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