From the great resignation to the great layoffs, the labour market has seen it all since the pandemic started. Since November last year, over two lakh techies have lost their jobs globally. Navigating this recession is going to be one of the hardest things professionals will have to grapple with not only because companies are laying off employees but also because it is unclear when they will be in a position to hire again. In addition to the financial cost of unemployment, people have to bear the emotional cost of negotiating this turmoil.
In this uncertain environment filled with many unknown unknowns, carving time out to upskill will be critical. According to the Future of Jobs Report 2020 published by the World Economic Forum, 85 percent of jobs of 2030 do not exist today. Professionals can’t expect to find meaningful employment with their existing skill stack. Perhaps many would choose to go back to university but it may not be feasible considering the time and cost involved.
Cost of education in the US has grown eight times faster than the median wage. Traditional avenues of learning will be unaffordable for most people. I reckon many alternatives may come up. Last year, my company experimented with the learn-to-earn model. Basically, it means figuring out a way to get future employers pay for upskilling and keeping it free for learners.
We partnered with fast-growing companies and created nano-degrees (condensed versions of degrees focused on skills needed by the job market) in specialisations like blockchain, product management, artificial intelligence, among others. Candidates applied to the programmes and we selected 60-100 learners per course. By the end of the programme, our learners had not only acquired a new skill but also found avenues for employment. All this without spending a dollar. It turned out to be useful for the partner companies as well. They got to hire the candidates that performed the best in the course.
In addition to learning and employability, such focused programmes also build a supportive community where learners help each other achieve their goals, find meaningful connections and create new opportunities for the future. Traditionally such networks would only be forged in universities, but most of them have priced themselves out of the market.
I am not suggesting that universities are redundant. In fact, having studied at top universities across the US, UK and France, I happen to be a big beneficiary of the traditional education system. That said, given the current macroeconomic landscape, many students might be reluctant to take massive education loans that come with the baggage of huge interest rates. Learning and unlearning will be defining characteristics of the new world order. That is why building a cost-effective upskilling programme intimately connected with employability is the need of the hour. We need three key elements to fall into place.
First, deep collaboration among universities, startups, governments and enterprises. Last week, our organisation, Network Capital, and NITI Aayog joined hands to launch a blockchain module for all school students in the country. Such partnerships will scale the impact and make learning new skills accessible without incurring any cost.
Second, proof of work. Degrees and diplomas serve as good insurance policies. One is guaranteed a certain level of access on graduating from a good university. Degrees, however, don’t often demonstrate skill proficiency. Many employers have started asking for proof of work in the form of a portfolio of projects. This needs to be standardised. Not attending a prestigious university should not count against a candidate if s/he demonstrates the skill and aptitude to get the job done.
Third, matching talent with relevant opportunities. Talent is equally distributed; opportunities are not. Belonging to elite networks gets its members access to better opportunities. We need to create more egalitarian communities where anyone can become a member as long as s/he has the hunger to learn and willingness to share.
After the 2008 financial crisis, many investment bankers from Wall Street went to business schools. It was a smart way to ride the recession and graduate with an MBA. Even in the current economic crisis, some would choose to follow this path. While that’s good for them, I am energised by the prospect of
a new learning model that will make upskilling, job discovery and networks accessible to everyone, especially those whose savings were wiped out or those who just can’t afford to take a few years away from work. Crises are great opportunities to set up new structures. I hope that we take the opportunity to reset the education and upskilling ecosystem in order to prepare a workforce that is ready for 2030.
Utkarsh Amitabh
CEO, Network Capital; Chevening Fellow, University of Oxford
Twitter: @utkarsh_amitabh