Karnataka State Level Skill Survey Report

7/28/2019 Karnataka State Level Skill Survey Report

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Table of Contents

ENGAGEMENT CONTEXT ............................................................................................ 1

1. EMPLOYMENT NUMBERS IN KARNATAKA.................................................. 2

2. THE BLUE COLLAR WORKER IN KARNATAKA ........................................ 4

3. THE SKILL GAP AMONG BLUE COLLAR WORKERS ................................... 8

4. FUTURE BLUE COLLAR EMPLOYMENT IN KARNATAKA: 2020 ............. 12

5. IN CONCLUSION ................................................................................................ 13

ANNEXURE.................................................................................................................... 17

1. INFORMATION TECHNOLOGY ....................................................................... 18

2. CONSTRUCTION ................................................................................................ 20

3. TOURISM ............................................................................................................. 23

4. MANUFACTURING ............................................................................................ 26

5. EDUCATION ........................................................................................................ 31

6. HOSPITALITY ..................................................................................................... 34

7. HEALTHCARE..................................................................................................... 36

8. RETAIL ................................................................................................................. 39

9. LOGISTICS ........................................................................................................... 42


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ENGAGEMENT CONTEXT

The Confederation of Indian Industries (CII), Karnataka Chapter, wished to map the fast growing and

emerging industry segments in Karnataka and assess the existing and future skill sets needed by

these sectors. This engagement focused on estimating the blue collar skill requirements for highgrowth industry segments by 2020.

There is a dearth of hard primary data about the quantum, nature and future needs of blue collar

jobs in high growth segments in the State. This engagement covered 802 firms in Karnataka in Apr-

May 2012 to build reliable estimates about blue collar jobs. This exercise has provided information

about employment numbers, existing skills sets, future requirements, skill gaps and the employment

potential across select high growth segments.

The 802 firms (small defined as 500

employees) covered unskilled, semi-skilled and skilled blue collar workers. The firms covered were

those under the organized sector however, most of them used external agencies to meet theirblue collar profile needs. Consequently their views about the skill gaps among blue collar workers

are in a sense reflective of the market needs at an overall level.

The chart sets out

the survey

coverage. It has

been mapped

across 2 axes the

relative size of

blue collaremployees in the

sector in Karnataka

in 2012 (X axis)

and the relative

additional need for

blue collar workers

by 2020. The

sample covered in

the survey is

indicated within

brackets.

Our specific area of interest in this report is blue collar workers. A working definition of this group

relates to wage earners, whose jobs often involve manual labour (daily wages, part time, full time).

While traditionally the definition has been used in the context of employees in work clothes and in

factories, our coverage includes workers in the manufacturing and services sector.

We have classified the blue collar worker group further into 3 categories Unskilled (simple duties

with little /no independent judgment required), Semi-skilled (performance of routine operations

with limited scope where need is proper discharge of duties) and Skilled (exercise considerable

independent judgment, needs comprehensive knowledge of the craft). In classification terms, if

there has been some skilled workers needed for a job category, we have chosen to classify them as

skilled instead of semi-skilled.


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1. EMPLOYMENT NUMBERS IN KARNATAKA

Of Karnatakas population of61 million (2011 estimates), around 41.4 million are in the working age

group (15-65 years). The current working population in Karnataka is around 28 million. The split ofthe working population by gender and the three GDP service groups:

Like in the rest of the country, agriculture accounts for bulk of the working group around 46%. The

employment in the non-agricultural sector (manufacturing and services) accounts for around 15

million (organized and unorganized sectors) - through a ground up sector by sector buildup of

estimates, we reckon that about 4 million of these workers form part ofthe Organized sector.

Our estimates of the sector wise workers across all Non-agricultural category and the estimated split

within the Organized sector is set out overleaf.


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In the Organized sector, Government followed by Manufacturing and IT & ITeS are the largest

employers of blue collared workers (own plus outsourced). While Construction, Retail, Tourism and

Manufacturing have large blue collared workers, their proportion among organized sector firms islower.

Source: Feedback estimates, Ministry reports, Other secondary sources


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2. THE BLUE COLLAR WORKER IN KARNATAKA

Our estimates of blue collared workers based on our survey in Karnataka is around 11.04 mn - of

these around 2.04 million are employed in the organized sector.

Government and Manufacturing are the largest employers of blue collar workers in the organised

sector.

Source: Feedback estimates, Ministry reports, Other secondary sources


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Note: If a job category requires some skills, it has been classified under the skilled category.


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The table above sets out the proportion of the blue collar work force in the industry segment.


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Nearly 54% of the blue collar work force has studied only up to the X standard.

Blue collar hiring practices

A significant number of blue collar employees are hired through referrals. This is indicative of the

lack of a formal job exchange market for this group. Around 20.5% of the hiring is outsourced to

various external agencies including employment exchanges. Advertisements account for about 6.5%of the hire across sectors.

Data about the State of origin of the employee is not maintained by most firms. However, figures

indicated by the firms showed that 83% of the blue collar employees belonged to Karnataka.

Understandably, the three other southern states accounted for about 10% while the rest of the

country formed 7% of the work force.


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3. THE SKILL GAP AMONG BLUE COLLAR WORKERS

The primary survey focused on an assessment of the current competency levels among the blue

collar workers vis-a-vis their expectations. The table below sets out the segment wise gap (current

competency expected competency on a 10 point scale). The negative figure denotes that

expectations uniformly higher compared to expectations.

The skill gaps are markedly more in manufacturing, hospitality and education.

The earlier table sets out the gaps for specific roles across industry segments by the 3 skill levels.

This too is the difference between current and expected competency on a 10 point scale. It is

observed that there are skill gaps across the board from functional / technical knowledge to soft


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skills to attitude. There are detailed break ups by job category (eg.Driver, Office attendant,

Technician, Operator, etc.) set out in the annexure by industry segment.

Across industry segments, the key skill requirements and the areas where improvement needed by

job category as mentioned by respondents is set out in the table below:


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Possible reasons for the skill gap

The survey sets out multiple causes for the skill gaps that exist among blue collar workers. Some of

the common themes that were stated cover a mix of the following:

Lack of interest in learning observed in the case of younger employees compared to theolder set of employees. This was considered reflective of the younger generations

characteristic traits by many respondents.

Communication skills, oral and written, are a challenge among new recruits. This is true

of those who have done higher education with diplomas and degrees. The problem with

soft and life skills was a universal concern.

Lack of computer knowledge (where needed) particularly among the older employees.

Some stated that this made the retraining of these employees to take on newer

emerging roles in the organization difficult.

Workforce entering the job market without the requisite competency. Many contractors

(to whom these jobs outsourced) took on all kinds of untrained, unfit employees and

this had an effect on productivity and job output.

Poor transfer of knowledge from experienced workers to the new hires. There seemed

to be a chasm between the old and the new. At one level the new hires threatened the

existing order and the older insecure employees coped by holding onto their body of

knowledge.

Poor hiring practices with minimal screening resulting in wrong hires. Consequently the

investment in in-house training necessary.

While detailed job competency maps are done for white collared, managerial roles,

there is limited attention paid to competency maps for blue collar workers.

The education imparted is of no practical value and is often irrelevant to the job

requirement. There are insufficient options for on the job training in most educational

programs.

It would appear that an employment ready work force is not available in the market. There is a skill

mismatch and considerable training has to be given by the employers. There are perceived

attitudinal issues among the younger generation and an unwillingness to do the conventional

manual labour that an earlier generation did willingly. Soft and life skills are absent in most cases

and these are more critical in the services sector. There is also a sense that the machine, craft

oriented skills are on the decline. Among blue collar workers there is poor awareness of basic

hygiene, cleanliness and safety.


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I ndustry I niti atives

In the absence of an industry ready pool, many firms are doing in-house training for new hires. These

could be through formal training (larger firms) or on the job training (more common). Some other

measures adopted by firms in the survey:

Organizing training from government affiliated ITIs, apprentice training etc.; Tie ups with

skill development academies.

Monthly programs to identify problems that impact performance and providing training

wherever there is scope.

Focusing on choosing the right people with the required skill sets and attitudinal match

rather than concentrating on training post hiring.

Develop regular training calendars with programs specially designed after taking

feedback from employees.

Using the aid of visual clips to train identified personnel.

Some corporate bodies also provide skill identification programs followed by training

programs and post-training evaluations.

Suggested action items for government to consider

Respondents opined that government too has a role to play in skill enabling the blue collaredworkers:

The Government should interact with different segments of the industry,analyze the

problems and come up with solutions specific to that industry segment.

Invest in the required number of training institutes for each job role; ensure skilled

trainers/teachers and modern equipment are available to the students.

Undertake specific policy measures and be an enabler of skill training in the State.

Tax incentives for organizations involved in setting up skill building institutes.


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4. FUTURE BLUE COLLAR EMPLOYMENT IN KARNATAKA: 2020

For each industry segment, Feedback computed the growth prospects till 2020 and the resultant

need for blue collar workers. This was based on inputs from the following sources our survey

figures of company blue collar hires in 2011-12 and the expected year wise requirements over the

next four year; the likely sector performance over the next decade (in real terms); assessment of

manpower requirements taking into account likely technological developments and the employment

to turnover norms in the sector.

We estimate that the likely blue collar workers by 2020 will be around 14.54 mn (unorganized and

organized) out of a total non-agriculture employment of 20.4 mn in 2020. The segment wise

incremental requirement, the key job roles in demand for blue collar workers (organized +

unorganized) are set out in the table below:


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5. IN CONCLUSION

The skill development challenge is a universal concern across the country. This CII study which

focuses on blue collared workers in Karnataka throws up a few important things to think about as we

go about improving the employability quotient in the State.

The large job categories under blue collar workers are no longer the conventional workers in the

manufacturing sector

Traditionally blue collar workers were associated with manufacturing sector jobs like operators,

technicians, etc. With the services sector accounting for a major share of Karnatakas GSDP, we see a

new breed of blue collar workers Office Asst./ helpers / assistants, drivers, security sharing the

blue collar top categories with machine operators and technicians. Consequently the way we look at

skill training needs to be altered the traditional emphasis was on machine / equipment /

craftsmanship skills and consequently on vocational training with a functional focus on these skills.

Now we need to expand the training needs to encompass aspects of soft skills (important in the

Service sector), life skills (including basic training on hygiene, discipline, attitude, safety, etc.) and

special skills required for jobs outside the manufacturing arena.

There will be a large requirement of blue collar workers in Karnataka by 2020. The time to work on

skill enabling strategies is now

We estimate around 3.5 million additional blue collar workers to be required in Karnataka by 2020

taking the total numbers to 14.5 million. The large absolute numbers would be required in

construction, manufacturing and travel/tourism. In terms of relative growth compared to todaysbase, the high growth sectors are Education, IT/ITES, Healthcare and Hospitality.

If we reckon that the current blue collar workers too might need retraining to hone their skills, the

overall numbers requiring skill training would be around 5 million over the coming decade. Outside

of the ITI, rudimentary kind of skill training, the efforts for training blue collar workers has been

negligible. With the NSDC emphasis in this space, many new entrepreneurs are setting up facilities to

address both white collar and blue collar workers. Karnataka needs to come up with its own

strategies in this space that give it a competitive edge in the labour market.

Considerable skill gaps exist today which will widen if no proactive action is taken to bridge the

gap

This report has set out the skill gaps that exist among blue collar workers. The common themes are

around inadequate job knowledge, poor soft (communication) and life skills, etiquette, conversant

with state of art technology, comfort with computers, attitudes, less willingness to do manual work,

etc. Among older employees in the work force, many are frozen on the learning curve and there is a

need for mid-life retraining courses.

If we are to bridge the skill gaps, work at multiple levels on the training front is required - at schools,

inculcate a culture of vocational training post schooling, adult education courses, etc. There is a need


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to build the eco system where service providers / training entrepreneurs are encouraged to invest in

this space. There is a need for an outreach program (including involving NGOs) to get students

enrolled in these courses with access to funding. And employers will have to work with the service

providers on job specific training. A do nothing approach will lead to a severe resource crunch going

forward which will impact the industry growth prospects.

A one size fit all approach for blue collar workers will not work. It is necessary to come up with

specific strategies for different job categories based on requisite skill levels and gaps in the market

place

The blue collar worker spans the skill levels from unskilled, semi-skilled to skilled. The intervention

required varies by the skill level and the job categories. Within the job category, the requirements

across industry segments are quite similar. In designing and addressing skill gaps we need to be

guided by the incremental numbers required by 2020 in each category and the kind of skill gaps that

need to be addressed for each job role. There will be a need for basic training (typicallycommunication and life skills) that could work across the board. This will need to be complemented

by specific job / functional training relevant for different trades.

Government, industry association and firms have a role to play in the skill enabling journey

Industry is expecting Government to play a proactive, enabling role about skill development for blue

collar workers. Their wish list is to have a readily employable pool of resources. For this to happen,

Government will need to craft policies that encourage school, college drop outs and current workers

to embrace vocational training that makes them employable.

Indians have considerable aspirations and there is a willingness to invest in education resulting in a

degree. State government policies allowing for continuous entry-exit between vocational training

and higher education through measures like Associate degree for two years vocational training post

Standard X / XII will help in this endeavor. The State has to play an enabler role in making PPP

happen in the skill development sector on a scale basis.

Industry associations can act as a bridge between the employers, the education (vocational training)

service providers, NGOs and government in fostering industry-academia kind of partnerships,

curriculum development, making training job relevant, assisting with train the trainer initiatives,

developing funding options, certification, etc. Firms cannot sit back and expect ready resources to be

served on a platter. They need to engage proactively with service providers in defining

requirements, providing on job training internships and offering placements to trained resources.

Collectively, it is possible to make a difference in this journey.


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Next steps

The current study shows significant addition in blue collar workforce in the following sectors

construciton, travel & tourism, manufacturing and retail sector. As a first step, there is a

need to prioritise the sectors which are critical to address first.

Micro level studies need to be

conducted in the districts where

these sectors are likely to have a

high impact to get a better

understanding of the current

scenario in terms of training

requirements based on the sector

requirements, training facilities

available, presence of local trainers,income levels & willingness of

students to take up training. This

would provide a better

understanding of the type of centre

required (multi skill vs single skil),

number of students likely to train

every year, trainers required, stay

facilities, etc.

Student acquisition is a key challenge and therefore these studies need to focus on

understanding current student expectations, willingness to pay for such courses, willingness

to travel to skill centres for training, placement expectations.

Courses relevant to the sector and the district based on the predominant employment /

entrepreneurial opportunity will need to be built. Whilst curriculum can be built in

consultation with industry, the centres will also need to work towards providing on the job

training to its candidates with small and medium organisations in the same district.

Participation of small and medium organizations in the skill centres will help improve

placement opportunities for the centre.

Whilst the studies will help establish the need for a skill centre, one of the key challenges

facing the industry today is getting access to training staff. Therefore, the team needs to

look at building and implementing a train the trainer model. It would be best if the people

from the industry can be brought in for training to ensure the training is topical and industry

relevant.

Costs of running a skill centre needs to be closely evaluated and an appropriate PPP model

needs to be evolved to ensure continued private sector involvement in this skill enablinginitiative.


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ANNEXURE


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1. INFORMATION TECHNOLOGY

Structure of the sector in Karnataka

Karnataka is the leading IT hub of the country, with Bangalore being the 4th largest technological

cluster in the world, after Silicon Valley, Boston and London. Housing a third of Indias softwaretechnology park units, the state is the countrys largest software technology hub.The state

contributes 500,000 IT professionals from leading engineering institutes to the nations IT workforce

of 2.5 million. Software exports contributed 21.4% to the states GSDP with export CAGR of 13.5%

and GSDP CAGR of 15.2% between FY 05 and FY 10.

Karnataka is a host to all leading global IT companies, including Infosys, Wipro, Tata Consultancy

Services, Oracle, Dell, IBM, Microsoft, Accenture, Cognizant, etc. There are over 6,800 companies in

the IT/ITeS in the state, accounting for 11.6% share across the country.50% of the world's SEI CMM

Level 5 certified companies are also located in Bangalore. The key clusters for the industry are

Bangalore, Mysore and Dakshin Kannada. FDI of 100% is allowed under the automatic route.

Blue collar survey takeaways

The state employs a total of 0.76 mn people, of which blue collar employees account for 0.16 mn.

All the employees are from the organized sector. The top 5 critical roles of the blue collar employees

of the IT industry are those of the office boy, security, driver, housekeeping and supervisor.

The basic qualification of the office boy, security and driver is 10 th pass. About 36% of the

supervisors are graduates and another 36% are 10th

pass. Bulk of the housekeeping staff has

however received no education. All the technicians and the electrician and plumbers hold diplomas.

Skill gaps are primarily between existing and required skills in the aspects of working knowledge of

computers, dedication, work discipline and their ability to learn. Electricians and plumbers and

kitchen assistants also seem to be lacking in functional knowledge, work discipline and ability to

learn.


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Skill gaps ITDriver

Electrician&

Plumber

House

Keeping

Kitchen

Assistant

OfficeAsst.

helpers

Security

Service

Assistant

Cleaner

Supervisory

Role

Technicians

Total

Technical expertise required for

the job

-1.09 -0.80 -1.03 -1.00 -0.88 -0.92 -1.00 -1.13 -1.05 -1.25 -0.99

Functional knowledge of tools to

be used for the job-1.09 -1.80 -1.17 -1.00 -0.98 -0.97 -1.00 -1.00 -0.91 -1.00 -1.04

Ability to perform a repetitive job

with consistency-0.93 -1.00 -1.10 -1.00 -1.08 -0.92 -1.00 -1.00 -1.27 -1.25 -1.04

Working knowledge of computers - -1.25 - -- -0.75 -0.67 - - -1.67 -1.67 -1.08

Trained and certified for the job -0.98 -1.00 -0.93 -1.00 -1.07 -1.00 -1.00 -1.00 -1.18 -1.25 -1.03

Experienced with proven expertise

in the job-1.07 -0.80 -0.90 -1.00 -0.94 -0.87 -1.50 -1.13 -1.14 -1.00 -0.98

Attitude

Dedication towards work -1.07 -1.45 -1.25 -0.67 -1.11 -1.11 -1.00 -0.88 -1.23 -1.50 -1.14

Readiness to take on similaractivities not part of initial scope

of work

-0.93 -0.80 -1.09 -1.00 -0.92 -1.03 -1.00 -1.00 -1.09 -0.75 -0.98

Work discipline -1.09 -1.60 -1.28 -1.67 -1.11 -0.96 -1.00 -1.13 -0.91 -1.50 -1.11

Intelligence

Learnability - Eagerness and

openness to learn on the job-0.91 -1.00 -1.00 0.00 -1.05 -0.91 -1.00 -1.00 -1.05 -1.25 -0.98

Quickness to learn/grasp -0.93 -1.20 -1.13 -1.50 -1.00 -0.98 -1.00 -1.13 -0.95 -1.75 -1.02

Ability to implement learning -1.02 -1.80 -0.84 -1.50 -0.99 -1.05 0.00 -1.00 -1.05 -1.50 -1.02

Ability to apply power of judgment

when required-0.98 -0.75 -1.19 -1.00 -1.16 -0.97 -1.00 -0.88 -1.27 -2.33 -1.10

Crisis handling -1.00 -1.50 -0.87 -1.00 -1.11 -1.03 -1.00 -1.00 -1.27 -1.00 -1.05

Soft skills

Communication proficiency -1.07 -1.25 -1.23 -1.00 -1.05 -1.08 -1.00 -1.13 -1.27 -1.25 -1.12

Presentability - grooming,

personality, confidence-1.00 -1.25 -1.00 -1.00 -1.11 -1.08 -0.50 -1.00 -1.00 -1.25 -1.05

Ability to integrate culturally with

employees of other states-0.98 -1.00 -1.06 -1.00 -1.07 -1.10 0.00 -1.25 -1.18 -0.50 -1.05

Overall -1.01 -1.19 -1.07 -1.02 -1.02 -0.98 -0.88 -1.04 -1.15 -1.29 -1.05

Based on difference on a 10 point scale between current competency and expected competency

As far as skill enhancement initiatives taken by the organizations go, oganizations provide skill basedtraining and training on communication skills and on organization rules and processes. The

employees are trained and their skill sets are assessed from time to time. Organizations have tie ups

with skill development academies to train the employees. The critical aspects that need to be

handled are managing uncertainties and scaling up/down.

Future of the sector in the state

The industry is expected to employ 0.39 mn employees in future, of which blue collar employees are

expected to account for 0.32mn.


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2. CONSTRUCTION


Karnataka presents huge business opportunities for the Indian earthmoving and construction

equipment (ECE) industry, as the state is embarking on major infrastructure development projects inroads & flyovers, industrial infrastructure and power.The State Government is very keen on

developing skills to create a pool of human resources for the construction industry.

The construction industry contributes 8.4% of the total Gross State Domestic Product (GSDP), where

GSDP is estimated at INR 397,938 Cr. The major players of the construction industry in the state are

Prestige Group, Puravankara Projects Limited, Sobha Developers Ltd., DivyaSree Developers, Karle

Infra Pvt. Ltd and NICE limited.

Of the total number of employees in this sector -1.9 mn. , 90% are from the state of Karnataka, while

8% are from Tamil Nadu. The sector is highly unorganized with nearly 90% of the employees

employed in the unorganized sector. The industry absorbs a large number of rural and unskilled

labour and provides opportunity for seasonal employment. The ratio between direct and indirect

employees in this industry stands at 60:40.


Blue collared employees of 1.65 mn account for nearly 87% of the total employee base. 93% of these

are employed in the unorganized sector.The construction industry also employs a sizeable portion of

women employees. The top 5 critical roles of the blue collar employees of the construction industry

are those of the supervisor, office boy, security, housekeeping and service assistant.

The basic qualification of a supervisor is primarily that of a graduate, with about 25% of the

supervisors being 12th

pass or lower. About half of the office boys employed are 12th

pass and

around 30%, 10th

pass. Those employed in the security role are 10th

pass, while bulk of the

employees in the housekeeping role has received no education. In terms of skill gaps, some of the

key requirements were that the employees needed to be fast / quick in their work. The expectations

from the supervisors are high, as they are expected to have adequate knowledge, speed and


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promptness, status reporting, the ability to guide, etc. The skill gaps in this sector relate to

inadequate knowledge of construction specific areas - such as lining, leveling, and finishing skills in

carpentry, shortage in availability of these personnel - it may be necessary to import people with

relevant skills from Middle East/South East Asian countries/ China, etc., lack of knowledge of basic

machine operations appropriate operation of cranes lifting and placing and the inadequate

ability to understand instructions of supervisors/engineers. Some other skill gaps identified very

inadequate safety orientation, workplace skills, inability to follow simple instructions and low job

loyalty.

Skill gaps ConstructionDriver

Electrician&

Plumber

House

Keeping

Labour

OfficeAsst./

helpers

Others

Security

ServiceAssistan

SupervisoryRole

Total

Technical expertise required

for the job-1.00 -1.00 -1.05 - -1.00 -1.00 -1.03 -1.00 -0.97 -1.01

Functional knowledge of tools

to be used for the job-1.00 -1.00 -1.05 - -0.97 -1.00 -1.06 -1.00 -1.00 -1.01

Ability to perform a repetitive

job with consistency-1.00 -1.00 -1.05 -1.00 -0.97 -1.00 -1.00 -1.00 -0.78 -0.94

Working knowledge of

computers- - - - - - - - - -

Trained and certified for the

job-1.00 -1.00 -1.05 - -0.97 -1.00 -1.10 -1.00 -1.03 -1.03

Experienced with proven

expertise in the job-1.00 -1.00 -0.95 - -1.00 -1.00 -0.97 -1.00 -0.97 -0.98

Attitude

Dedication towards work -1.00 -1.00 -1.21 -1.00 -1.06 -1.00 -1.06 -1.00 -0.97 -1.06

Readiness to take on similar

activities not part of initial

scope of work

-1.00 -1.00 -1.08 -1.00 -0.92 -1.00 -0.94 -1.00 -1.03 -0.99

Work discipline -1.00 -1.00 -1.25 -1.00 -1.14 -1.00 -1.09 -1.00 -1.00 -1.10

Intelligence


openness to learn on the job- -1.00 -1.00 - -1.00 -1.00 -1.00 -0.60 -1.03 -0.99

Quickness to learn/grasp - -1.00 -1.13 - -1.03 -1.00 -1.03 -1.00 -0.97 -1.03

Ability to implement learning - -1.00 -1.04 - -1.06 -1.00 -0.97 -1.00 -1.08 -1.04

Ability to apply power ofjudgement when required

- -1.00 -1.10 - -1.00 -1.00 -1.00 -1.00 -1.00 -1.02

Crisis handling - -1.00 -1.00 - -1.03 -1.00 -1.06 -1.00 -1.05 -1.04

Soft skills

Communication proficiency - -1.00 -1.05 - -1.03 -1.00 -1.03 -1.00 -1.19 -1.07


personality, confidence- -1.00 -1.09 - -0.97 -1.00 -1.00 -1.00 -0.97 -1.00

Ability to integrate culturally

with employees of other

states

- -1.00 -1.05 - -1.06 -1.00 -1.03 -1.00 -0.78 -0.97

Overall -1.00 -1.00 -1.01 -1.00 -1.00 -1.00 -1.00 -1.00 -1.00 -1.00



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As far as skill enhancing initiatives taken by the organizations go, about 33% of the organizations

took no specific initiatives. The only initiative taken by the organizations was providing on the job

training. Higher emphasis is being laid to reduce time overruns, upgrading skills of workers and

enhancing productivity

Future of the sectorThe construction industry in the state is projected to grow at 9%, with employment in the state

slated to grow at 8% over the next few years. By 2020, the overall employee base is estimated to

reach 2.81 mn, with blue collar employees accounting for 2.44mn.


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3. TOURISM


Karnataka is the 4th most popular tourism destination in the country. The state has the second-

highest number of protected monuments in the country, 507 centrally and 750 additionallyprotected by the State Government. The states revenue from tourism is expected to grow from 15%

of GSDP in 2010 to 25% in 2020. The tourist inflow into the state rose 236% from 25.2 million in

2005 to 84.6million in 2011. A 63% increase is anticipated in foreign exchange earnings, from USD

104.1 million in 2010 to USD 169.5 million in 2020.

The Karnataka Tourism Policy 2009-14 aims at making Karnataka one of the top two tourist

destinations in India by 2016-17, generating USD 5.2-billion in private investment and 4.1million

jobs. The major players in the state tourism industry include government organizations like

Department of Tourism, Jungle Lodges and Resorts Ltd and Karnataka State Tourism Development

Corporation. Players such as Le Meridien, The Leela Palace, Oberoi, The Taj Group, Lalit Group,

Sheraton, Marriott, Hyatt, Ritz Carlton Group, ITC Group, Radisson etc. cater to the premium hotels

segment in the state.

The major clusters of the industry in the state include Bangalore, Mysore, Mangalore, Coorg,

Chikmagalur, Hampi, Gokarna, Bijapur and Gulbarga.


The overall employee base of the state is estimated at 1.99mn employees, where blue collar

accounts for 1.51 mn employees. Of the total number, employees from the organized sector account

for 0.20 mn and from the unorganized sector for the balance 1.79 mn. Of the total number of blue

collar employees, 0.15 mn is from the organized sector and the balance 1.36 mn from the

unorganized sector. The top 5 critical roles of the blue collar employees of the tourism industry are

those of the driver, cleaner, supervisor, security and office boy.

The basic qualification of the critical roles of the employees is that of 10

th

pass. Around 30% of thecleaners and supervisors have received no education too.


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In the tourism industry, the main skills required are in terms of good communication skills, ability to

manage customers, problem solving skills, ability to work in a team, crisis management, fluency and

familiarity with languages, safety practices and ability to coordinate with different agencies.

The skill gaps among the employees inadequate communication skills, lack of etiquette and proper

behaviour, lack of crisis management, inability to understand customer requirements and

inadequate knowledge of safety norms.

Skill gaps - Tourism

Clerical

Driver

Electrician

&Plumber

Machine

Operators

Office

Asst./

l

Others

Security

Cleaner

Supervisory

Role

Technicians

Total


for the job0.00 -0.97 -2.00 -1.00 -0.70 - -1.00 -1.25 -1.10 -1.00 -1.03


to be used for the job0.00 -0.94 -1.00 -1.00 -0.70 - -1.11 -1.40 -1.15 -2.00 -1.07

Ability to perform a repetitivejob with consistency -1.00 -0.86 -1.00 0.00 -0.80- -1.00 -1.30 -1.05 -1.00 -0.99


computers-1.00 - -- - -0.40 - -1.00 -2.00 -1.00 - -0.44

Trained &certified for the job -1.00 -0.98 -2.00 -2.00 -0.60 - -1.00 -1.10 -0.90 -2.00 -0.98


expertise in the job-1.00 -0.92 -1.00 -1.00 -0.90 - -1.00 -1.25 -0.90 -1.00 -0.99

Attitude

Dedication towards work -3.00 -1.02 -2.00 -2.00 -0.69 -1.00 -0.89 -0.92 -0.90 -1.00 -0.95



scope of work

-2.00 -0.76 0.00 0.00 -0.56 0.00 -0.67 -0.81 -1.10 0.00 -0.78

Work discipline -2.00 -0.81 -2.00 -1.00 -0.44 0.00 -0.79 -0.77 -0.86 -1.00 -0.78Intelligence


openness to learn on the job-2.00 -0.65 -2.00 0.00 -0.78 - -0.78 -1.09 -0.90 -1.00 -0.84

Quickness to learn/grasp -4.00 -0.95 -1.00 -2.00 -0.67 - -0.89 -1.18 -0.85 -1.00 -0.99

Ability to implement learning -3.00 -1.00 -2.00 -1.00 -0.67 - -0.78 -1.09 -0.90 0.00 -0.97

Ability to apply power of

judgement when required-2.00 -0.96 - -2.00 -1.00 - -1.00 -1.01 -0.95 - -1.00

Crisis handling -3.00 -0.97 - - -0.89 - -1.11 -1.05 -1.10 - -1.04

Soft skills

Communication proficiency -2.00 -0.68 - - -0.67 - -0.89 -1.21 -0.95 - -0.88


personality, confidence -3.00 -0.82 - -2.00 -0.67 - -0.89 -1.14 -0.95 - -0.94


with employees of other states-3.00 -0.91 - - -0.44 - -0.89 -1.00 -1.00 - -0.92

Overall -1.94 -0.82 -1.45 -1.15 -0.68 -0.33 -0.80 -1.15 -0.97 -1.00 -0.92


As far as skill enhancement initiatives taken by the organizations go, many organizations recruit

experienced personnel and hence not much training is required. They also conduct skill training

programs and frequently interact with the employees to understand the challenges faced and

accordingly design the training.


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In future, the employee base in the industry is estimated at 3.17 mn, with blue collar employees

accounting for 2.41 mn.


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4. MANUFACTURING


Karnataka is among the top five industrial states in the country. The achievements of Karnataka inpromoting high-tech industries in key sectors like telecommunication, electronics, information

technology, precision engineering, automobiles, readymade garments, bio-technology and food

processing have been noteworthy. The strong base of large and medium scale industries established

in Karnataka has given a wide scope for the promotion of a vibrant small scale sector in the state,

providing considerable employment opportunities to the people of Karnataka.

India is the 18th largest producer of machine tools in the world and Bangalore is considered to be

the hub for the Indian machine tool industry, accounting for about 60% of the value of production of

machine tools in the country, i.e. INR 1800 Cr. The structure of the machine tool industry in

Bangalore has, at its apex, 6 large machine tool manufacturers, around 100 small and mediummachine tool manufacturers, their suppliers and vendors in large numbers. The key players of this

segment are Ace Group, Bharat Fritz Werner Limited, HMT Machine Tools Limited, and Bosch

Limited.

Karnataka alone accounts for around a fifth, or 45 MT, of the total 220 MT of iron ore produced in

India annually. The Karnataka steel industry has invested over INR 50,000 crore in the region and

contributes 0.5% to GDP and taxes of over INR 10,000 Cr. to the exchequer and provides

employment to lakhs of people. There are 14 companies in the state, but none of the companies has

captive mines linked to its projects and are, therefore, forced to procure their entire raw material

requirement from merchant miners. Key steel companies, present in the state are JSW Steel,

Mukand, Sunflag Steel, Tata Metaliks, Kalyani Steels and Kirloskar Ferrous.

There are around 235 pharmaceutical plants and around 3475 pharmaceutical, medicinal chemicals

and botanical products factories in Karnataka. The units in the state generate an estimated INR

7,000 Cr. Strides Arcolab, Micro Labs, Kemwell, AstraZeneca Pharma India, Anglo French Drugs &

Industries Ltd etc. are some of the key companies present in Karnataka.

Karnataka is the 4th

largest state in automotive production in India and has a vibrant auto industry

with investments of more than INR 4,500 Cr and auto sector revenues of INR 2,718 Cr. Theautomotive industry contributes 0.7% of the total Gross State Domestic Product (GSDP), where GSDP

is INR 397,938 Cr. There are around 2,500 auto and auto ancillary firms in Karnataka. The state is a

manufacturing hub for automobile majors like Toyota Kirloskar, Volvo, TVS Motors, Tata Marcopolo,

L&T Komatsu, Mahindra Reva, BOSCH, Siemens, JK Tyres, etc. Of the total 201 listed auto-ancillary

firms in India, 10 are based in Karnataka.

With over 80% of the chip design done in Bangalore, from more than 100 companies, the creation of

the semiconductor policy is expected to benefit Karnataka and serve as a guide for other states to

emulate. Through the policy, the state expects to earn revenue of INR 12,000 Cr from the electronic

system design and manufacturing industry by 2020. The major players of the industry are Sanyo,


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Lucent, 3M, TYCO, NEC, Samsung, GE, Yokogawa Blue Star, British Telecom and the major Indian

players are BPL and Tata Elxsi.

In food processing, Karnataka is the leader in horticultural products and spices, aromatic and

medicinal crops and tropical fruits. It is also the second-largest milk producing state, and the third

and fourth largest producer of sugar and sugarcane respectively and the 5th largest producer of

fruits in the country and the fourth largest producer of spices. Karnataka has over 64% of its total

geographical area under agriculture cultivation and accounts for 70% of coffee, 8.4% of total fruits

and 6.2% of total vegetables produced in the country. Cargill India Pvt. Ltd., Nestle India Ltd, Indo

Nissin Foods Limited, Hindustan Coca-Cola Beverages Pvt. Ltd., Britannia Industries Ltd., Pepsico

India Holdings Pvt. Ltd., MTR Foods Pvt. Ltd. etc. are the major players in the state.

The states engineering exports increased from over INR 1,048 Cr in 200203 to over INR 8,300 Cr in

200809 and constitute around 6% of exports from the state. In 2009-10, the export of engineering

products stood at INR 4162.5 Cr. There are more than 3,700 engineering factories in Karnataka andthe state has one operational SEZ in this sector.


The total employee base of the manufacturing sector in the state is estimated at 2.76 mn, where

blue collar employees account for 1.98 mn. Of the total number, the number of the employees from

the organized sector accounts for 0.79 mn, with the unorganized sector accounting for the balance

1.97 mn. Of the total number of blue collar employees, 0.51 mn are from the organized sector and

1.48 mn from the unorganized sector.

The top 5 critical roles of the blue collar employees of the manufacturing industry are those of the

technician, machine operators, office boys, security and electrician and plumber.

The basic qualification of the technician, machine operator and electrician and plumber is diploma,

while that of security and office boys is below 10th

.

In this industry, some of the required skills include understanding the aspects of industrial safety and

discipline, ability to read and understand instructions to operate the machinery, ability to ensure

that production targets are met, knowledge of the machinery, ability to manage the available


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resources and awareness of health and safety standards. Other skills required are with respect to

problem solving, logical and analytical skills, basic communication skills, literacy, and ability to

identify deviations from standards and to understand and follow norms and practical knowledge on

maintenance.

In the automotive sector, skill gaps are seen in terms of lack of ability to resolve issues, inadequate

understanding of quality concepts and that of the product and processes. In the chemicals and

pharmaceutical sector, limited knowledge of compliance to processes, inadequate knowledge of

chemical compounds and laboratory testing processes and inadequate knowledge of rules laid down

by certifying agencies are some skill gaps that were observed. The skill gaps in the food processing

sector include inability to understand the standard operating procedures, inadequate knowledge to

administer medicines and lack of knowledge in machine usage, in terms of settings, temperature,

etc. In the electronics and IT hardware industry, skill gaps are seen in terms of lack of discipline,

absenteeism, insufficient skills to handle customer grievances and inability to identify deviations

from standards. Overall, the skill gaps noticed in the manufacturing industry include lack of

knowledge about processes and operation of machines, lack of knowledge of safety procedure and

lack of work discipline. Other skill gaps include inability to read and write and lack of skills to

interpret instructions, lack of computer knowledge, understanding materials dealt with and lack of

knowledge regarding duties and taxes related to the industry. Table set out overleaf.


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RolesDriver

Electrician&

Plu

ber

HouseKeepin

Kitchen

ssistant

Labour

Machine

perators

OfficeAsst./

helpers

Others

Packaging&

For

arding

Security

ShopFloor

ssistant

Supervisory

Role

Technicians

Vendor/

Purchase

Total

Technical expertise

required for the job -1.00 -1.16 -1.45 -0.67 -1.10 -1.12 -1.06 -1.13 -0.92 -1.35 -1.21 -1.16 -1.17 -1.00 -1.13Functional knowledge

of tools to be used for

the job

-1.06 -1.11 -1.09 -0.67 -1.30 -1.07 -1.16 -1.15 -1.19 -1.19 -1.71 -1.00 -1.18 -1.00 -1.15

Ability to perform a

repetitive job with

consistency

-1.00 -1.14 1.15 -0.83 -1.20 -1.14 -1.12 -1.16 -1.41 -1.30 -1.21 -1.00 -1.23 -1.00 -1.18


computers- -0.92 -1.00 0.00 -1.00 -1.28 -1.20 -1.33 -1.60 -0.89 -- -1.09 -1.31 -- -1.21

Trained and certified

for the job-0.88 -1.09 -1.00 -1.33 -1.00 -1.14 -1.07 -1.18 -1.24 -1.27 -1.23 -1.24 -1.23 -1.00 -1.17

Experienced with

proven expertise in thejob

-1.00 -0.96 -1.64 -1.00 -1.50 -1.14 -1.10 -1.15 -1.18 -1.20 -0.46 -1.24 -1.18 -1.00 -1.14

Attitude

Dedication towards

work-1.06 -1.20 -1.25 -1.13 -1.20 -1.19 -1.11 -1.11 -1.18 -1.06 -0.96 -1.20 -1.20 -1.00 -1.16

Readiness to take on

similar activities not

part of initial scope of

work

-0.71 -1.02 -1.00 -0.87 -1.22 -1.13 -1.00 -1.18 -1.29 -1.08 -0.85 -1.08 -1.14 -1.33 -1.08

Work discipline -0.85 -1.23 -1.27 -0.87 -1.30 -1.14 -1.01 -1.17 -1.27 -1.25 -1.04 -1.08 -1.20 -1.00 -1.15

Intelligence

Learnability - Eagernessand openness to learn

on the job

-1.00 -1.16 -0.95 -0.67 -1.33 -1.10 -1.09 -1.24 -1.31 -1.10 -1.21 -0.96 -1.24 -1.00 -1.16

Quickness to

learn/grasp-1.17 -1.18 -0.89 -1.00 -1.33 -1.14 -1.16 -1.22 -1.44 -1.10 -1.07 -1.04 -1.18 -1.00 -1.16

Ability to implement

learning-1.00 -1.34 -0.85 -0.83 0.00 -1.18 -1.09 -1.15 -1.28 -1.22 -1.14 -0.96 -1.24 -1.67 -1.17

Ability to apply power

of judgement when

required

-1.07 -1.06 -1.36 -1.50 -1.50 -1.10 -1.18 -1.09 -1.31 -0.90 -1.50 -1.12 -1.20 -1.00 -1.16

Crisis handling 1.07 -1.08 -1.00 -1.00 -1.38 -1.20 -1.17 -1.22 -1.33 -1.41 -1.19 -1.16 -1.21 -1.00 -1.20

Soft skills

Communication

proficiency-1.13 -1.10 -1.08 -0.50 -1.25 -1.13 -1.18 -1.05 -1.53 -1.20 -1.29 -1.00 -1.24 -1.33 -1.18

Presentability -

grooming, personality,

confidence

-1.00 -1.09 -1.31 -0.83 -1.63 -1.15 -1.10 -1.24 -1.47 -1.15 -1.50 -1.20 -1.21 -1.00 -1.18

Ability to integrate

culturally with

employees of other

states

-1.00 -1.03 -1.42 -0.50 -1.38 -1.14 -1.08 -1.20 -1.14 -1.07 -1.36 -1.04 -1.09 -1.00 -1.11

Overall -1.00 -1.11 -1.16 -0.84 -1.19 -1.19 -1.16 -1.15 -1.30 -1.18 -1.18 -1.09 -1.26 -1.08 -1.19



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As far as skill enhancement initiatives taken by the organizations go, over 65% of the organizations

provide skill based training and in 12% of the organizations, experienced employees teach the

newcomers. Training classes are held for newcomers to train them on handling and operating

machines, new techniques, technologies and to develop skills. The organizations assess and evaluate

the employees and train them accordingly. Organizations have a training calendar and conduct

training classes on a regular basis and benefits are assessed after the training. The organizations also

conduct programs to motivate the employees and train them on improving communication skills.

Employees are also sometimes sent outside the organization to get trained.


By 2020, the manufacturing industry in the state is expected to have an employee base of 3.37 mn,

where blue collar employees would account for 2.42 mn.


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5. EDUCATION


Education in Karnataka has not only emerged as a major strength for the state but also as a sector of

holistic, all-round and sustainable development. The state stands seventh in the country in terms ofthe highest pupil-to-teacher ratio, with a CAGR of 18.3% in school teachers, which reflects favorably

on the education system.

Karnataka has the largest number of medical

colleges in India and houses 8 of the nation's 75 top

ranked engineering institutions. 22% of primary

schools and 64% of secondary schools are privately-

owned, providing significant opportunities for

private sector growth. The state's engineering

colleges enroll over 85,000 students, while general

bachelor courses like Arts, Commerce and Science

register over 200,000 students every year. The state

is also home to leading institutions such as the

Indian Institute of Management, Bangalore, National

Law School of India, Christ College of Law, Christ

University, Mt. Carmel College, RV College of

Engineering, Bangalore Medical College and

Research Institute, St. John's Medical College, University Visvesvaraya College of Engineering, and

Institute of Bioinformatics and Applied Biotechnology.

100% FDI is allowed in this industry under the automatic route.


The overall employee base of the state is estimated at 0.54 mn employees, where blue collar

accounts for 0.17 mn employees. Of the total number of employees, those from the organized

sector account for 0.44 mn and unorganized for the balance 0.11 mn. Of the blue collar employees,

those from the organized sector account for 0.14 mn and from the unorganized sector for 0.03 mn.

Institutes Universe

Universities 18

Pre-University Colleges 3,640

Other Colleges 1,362

Engineering 187

Polytechnic 289

Lower Level Schools 25,889Higher Primary Schools 33,000

High Schools 12,453

International Schools 47

Medical 114

Pharmacy Colleges 69

Nursing School & Colleges 350

Industrial Training Institutes 1,003

Law Colleges 40

R&D Centers 103


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The top 5 critical roles of the blue collar employees of the education industry are those of the office

boy, driver, housekeeping, security and cleaner. The basic qualification of the office boy, the driver

and security is that of 10th

pass, while bulk of the employees in the housekeeping and cleaner roles

have received no education.

The skill gaps in this industry are seen in terms of limited knowledge on laboratory skills and

computer operational skills, low proficiency in English language and communication. Lack of work

discipline and process adherence also appears to be a problem area.

Skill gaps - EducationClerical

Driver

House

Keeping

Kitchen

Assistant

OfficeAsst.

helpers

Security

Cleaner

Supervisory

Role

Total


for the job-1.00 -1.12 -1.21 -2.00 -1.06 -1.19 -1.31 -0.86 -1.14


to be used for the job-1.25 -1.04 -1.27 -2.00 -1.27 -1.44 -1.75 -0.71 -1.27

Ability to perform a repetitive

ob with consistency-1.50 -1.15 -1.12 -2.00 -1.21 -1.32 -1.25 -1.29 -1.22


computers-- -0.54 0.00 -- -1.69 -0.83 0.00 -1.50 -0.54

Trained and certified for the

ob-1.75 -1.35 -1.26 -1.00 -1.25 -1.22 -1.41 -1.00 -1.28


expertise in the job-1.50 -1.33 -1.24 -1.00 -1.24 -1.39 -1.35 -1.43 -1.30

Dedication towards work -1.25 -1.18 -1.18 -2.00 -1.19 -1.20 -1.33 -1.29 -1.20



scope of work

-1.50 -1.16 -1.19 -2.00 -1.17 -1.35 -1.50 -1.14 -1.23

Work discipline -1.50 -1.26 -1.25 -1.00 -1.21 -1.35 -1.17 -1.14 -1.25


openness to learn on the job-1.50 -1.33 -1.18 -1.00 -1.18 -1.37 -1.41 -1.00 -1.26

Quickness to learn/grasp -1.25 -1.24 -1.29 -1.00 -1.28 -1.42 -1.35 -0.86 -1.29

Ability to implement learning -1.00 -1.33 -1.29 -1.00 -1.22 -1.38 -1.31 -1.00 -1.28


udgement when required

-1.75 -1.14 -1.09 -2.00 -1.30 -1.32 -1.13 -1.29 -1.23

Crisis handling -1.25 -1.31 -1.23 -2.00 -1.14 -1.11 -1.44 -1.14 -1.22


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Communication proficiency -1.75 -1.13 -1.24 -1.00 -1.17 -1.17 -2.00 -1.14 -1.25


personality, confidence-1.50 -1.23 -1.24 -1.00 -1.27 -1.39 -1.31 -1.14 -1.28


with employees of other

states

-1.25 -1.26 -1.24 -1.00 -1.30 -1.00 -1.38 -1.29 -1.24

Overall -1.41 -1.28 -1.18 -1.44 -1.27 -1.22 -1.27 -1.13 -1.24


In terms of initiatives taken by the organizations to enhance skills, around 70% give their employees

skill based training while around 20% of the employees receive on-the-job training. The

organizations expect the employees to acquire the required skills as they work. They also carry out

activities to motivate the employees and to improve knowledge.


The employment in the industry is estimated to grow to 1.17 mn by 2020, where blue collaremployees would account for 0.37 mn.


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6. HOSPITALITY


Bangalore, which attracts the maximum number of business travelers in south India, is witnessing a

hotel construction boom, which is likely to treble the total number of the available premium hotelrooms and service apartments. The demand for the number of rooms in the upscale category is

expected to increase from 2163 in 2010 to 2883 in 2013. However, the number of rooms that will

actually be available is expected to be close to 3,800 rooms, which is likely to skew the demand and

supply equation.

Hospitality industry contributes 14.4% of the total Gross State Domestic Product (GSDP), where

GSDP for 2010-11 is at INR 397,938 Cr. The major players in the hospitality industry in the state are

Le Meridien, The Leela Palace, The Oberoi, The Taj Group, Lalit Group, Sheraton, Marriott, Hyatt, Ritz

Carlton Group, ITC Group and Radisson. There are a total of 18 five star and above hotels and 12 four

star and three star hotel chains. The major clusters for the industry are Bangalore, Mysore, Coorg,

Mangalore, Madikeri, Hampi, Shimoga and Karwar. FDI of 100% is allowed under the automatic

route in this industry.


The overall employee base of the state is estimated at0.26mn employees, where blue collar

accounts for 0.18mn employees. Of the total number, employees from the organized sector account

for 0.26 mn and from the unorganized sector for the balance 0.24 mn. Of the total blue collar

employees, 0.02 mn are from the organized sector and the balance from the unorganized sector.The

top 5 critical roles of the blue collar employees of the hospitality industry are service assistant,

security, kitchen assistant and supervisor.

The basic qualification of a service assistant is primarily that 12th

pass, with some graduates and

some who have passed 10th

. The security personnel and cleaners are primarily < / =10th

pass, while

the supervisory role has a substantial percentage of graduates. Around 40% of the housekeeping and

cleaners have received no education.


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Some of the skills required by the employees in this industry include communication skills,

cleanliness, understanding customer requirements and courteous behaviour. Some of the skill gaps

noticed in this industry relates to lack of basic communication and etiquette skills involving

interaction with guests, peers, managers, lack of time management and multi-tasking ability,

inability for critical thinking during a crisis, lack of planning and domain knowledge on inventory

system management. Other skill gaps relate to lack of motivation to work hard, inadequate exposure

to working in the kitchen and lack of adequate cleanliness.

Skill gaps - HospitalityDriver

Electrician

&Plumber

House

Keeping

Kitchen

Assistant

OfficeAsst.

helpers

Security

Service

Assistant

Cleaner

Supervisory

Role

Total

Technical expertise required forthe job

-1.00 -2.00 -1.53 -1.19 -1.10 -1.26 -1.18 -1.44 -1.00 -1.25

Functional knowledge of tools tobe used for the job

0.00 -1.00 -1.82 -1.26 -0.90 -1.33 -1.00 -1.29 -1.17 -1.23

Ability to perform a repetitiveob with consistency -2.00 -1.00 -1.59 -1.45 -1.10 -1.33 -1.16 -1.35 -1.17 -1.31

Working knowledge ofcomputers

- - 0.00 -2.08 -0.86 -1.08 -0.55 -0.25 -1.50 -1.10

Trained and certified for the job -1.00 0.00 -1.25 -1.32 -1.60 -1.24 -1.12 -1.20 -1.14 -1.22

Experienced with provenexpertise in the job

-1.00 -1.00 -1.38 -1.36 -1.50 -1.22 -1.12 -1.10 -1.24 -1.24

Dedication towards work -1.33 0.00 -1.60 -1.48 -1.06 -1.38 -1.22 -1.17 -1.21 -1.31

Readiness to take on similaractivities not part of initial scopeof work

-0.67 -1.00 -1.36 -1.36 -1.35 -1.19 -1.22 -1.20 -1.03 -1.23

Work discipline -1.00 -2.00 -1.36 -1.26 -1.12 -1.06 -1.13 -1.31 -1.11 -1.19


openness to learn on the job

-1.00 0.00 -1.52 -1.29 -1.00 -1.25 -1.18 -1.44 -1.10 -1.25

Quickness to learn/grasp -1.50 -2.00 -1.52 -1.45 -1.18 -1.34 -1.16 -1.15 -1.10 -1.29

Ability to implement learning -1.00 -1.00 -1.55 -1.38 -1.36 -1.43 -1.08 -1.29 -1.00 -1.27

Ability to apply power ofudgement when required

-1.00 -1.00 -1.55 -1.36 -1.09 -1.35 -1.16 -1.41 -0.86 -1.26

Crisis handling -1.00 - -1.15 -1.48 -1.27 -1.53 -1.22 -1.24 -0.83 -1.30

Communication proficiency -1.00 -1.00 -1.53 -1.55 -1.00 -1.27 -1.17 -1.29 -1.07 -1.29

Presentability - grooming,personality, confidence

-1.00 -1.00 -1.65 -1.38 -1.25 -1.32 -1.08 -1.24 -1.17 -1.28

Ability to integrate culturallywith employees of other states

0.00 0.00 -1.76 -1.52 -1.10 -1.37 -1.10 -1.26 -1.10 -1.30

Overall -0.97 -0.93 -1.33 -1.49 -1.17 -1.23 -1.26 -1.13 -1.12 -1.28


In terms of initiatives taken by the organizations to enhance the employee skills, the organizations

emphasis on choosing the right people with the desired skill sets and behaviour, rather than take in

people without them and train them. The companies do not provide any special training, but

observe the employees and correct any errors committed. The employees are thoroughly

supervised. The organizations take initiatives to motivate employees and hold weekly sessions to

understand the issues faced by the employees and resolve them.


In future, employment in this industry is expected to touch 0.39mnemployees, with blue collar

employees accounting for 0.27mn.


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7. HEALTHCARE


Karnataka is the most preferred healthcare destination as it has the right ecosystem comprising thebest R&D Institutions, a large pool of scientific and technical manpower, hospital infrastructure,

traditional knowledge sector, and biodiversity and industry friendly Government policies. The state

is the capital of the biotech industry with a concentration of over 45% of the biotech companies in

the country. The states healthcare industry contributes 0.5% of the total Gross State Domestic

Product (GSDP), where GSDP is INR 397,938 Cr

Karnataka is home to several both government

and private hospitals. Under government

hospitals, it has tertiary medical colleges and

hospitals, PSU hospitals, ESI hospitals, districthospitals and Ayush hospitals. There are 29

private medical colleges and around 200

specialty/super specialty hospitals.


The total employee base of the industry in Karnataka is estimated at 0.27 mn, where blue collar

employees account for 0.13mn. Of the total number, the number of employees from the organized

sector account for 0.08 mn and unorganized sector for the balance 0.19 mn. Nearly all the blue collar

employees are from the organized sector.

The top 5 critical roles of the blue collar employees of the healthcare industry are those of office

boys, security, housekeeping, driver and cleaner. The basic qualification of all the five critical roles is

that of 10th

pass. A substantial number of these employees have received no education too.

Health Infrastructure Nos.

District Hospitals 17

Other Hospitals 10

Community Health Centers 326Primary Health Centers 2,193

Sub-centers 8,143

Dispensaries 659

Beds in Hospitals (As on Mar 2010) 56,911

Health Infrastructure as on December 2010


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In terms of skills required, the employees were required to do the work completely and thoroughly,

ability to maintain hygiene and cleanliness, proper waste management, ability to carry out

preventive maintenance and capability to conduct tests diagnose test results. Some of the specific

skill gaps seen in the industry related to inadequate communication skills, lack of knowledge of

cleaning methodologies, improper maintenance of hygiene/sanitation levels, inadequate domain

knowledge, lack of equipment maintenance management and inability to adhere to hospital

procedures. Other skill gaps were the time taken to learn to handle equipment and instruments,

inadequate knowledge of drugs and exposure to technology.

Skill gaps - HealthcareDriver

Electrician&

Plumber

Healthcare

House

Keeping

Kitchen

Assistant

OfficeAsst./

helpers

Security

Service

Assistant

Cleaner

Supervisory

Role

Technicians

Total


the job-1.07 0.00 -1.00 -1.07 - -1.09 -1.12 -2.00 -1.23 -1.50 -2.00 -1.13

Functional knowledge of tools tobe used for the job

-1.07 -1.00 -1.50 -1.10 - -1.06 -1.12 -1.50 -1.31 -1.50 -1.00 -1.11


with consistency-1.07 0.00 -1.50 -1.03 - -1.11 -1.15 -1.25 -1.38 -2.00 -1.00 -1.13

Working knowledge of computers -1.00 0.00 -1.00 -3.00 - -1.45 -0.33 -1.00 -0.00 -1.50 0.00 -0.74

Trained and certified for the job -1.04 -1.00 -1.00 -0.93 - -0.94 -1.07 -2.00 -1.08 -1.50 -1.00 -1.01


expertise in the job-1.00 -1.00 -1.00 -1.00 - -1.10 -1.15 -1.50 -1.00 -1.50 -0.50 -1.08

Dedication towards work -1.13 -1.00 -1.50 -1.24 -2.00 -1.11 -1.08 -1.00 -1.46 -0.50 -1.00 -1.15


activities not part of initial scope

of work

-1.00 -1.00 -2.00 -1.08 -1.00 -1.04 -0.98 -1.00 -1.31 -0.50 -0.50 -1.04

Work discipline -1.10 -2.00 -2.00 -1.03 -4.00 -1.05 -1.06 -1.25 -1.31 -0.50 -1.50 -1.10


openness to learn on the job-1.10 -1.00 -1.50 -1.03 -1.00 -1.03 -1.00 -1.25 -1.46 -0.50 -2.00 -1.06

Quickness to learn/grasp -1.07 -2.00 -1.50 -1.00 -1.00 -1.04 -1.10 -0.75 -1.31 -1.50 -1.50 -1.08

Ability to implement learning -1.00 -1.00 -1.00 -0.94 - -1.10 -1.02 -1.00 -1.15 -1.00 -1.00 -1.05


udgement when required-1.14 -1.00 -2.00 -0.90 - -1.11 -1.05 -1.00 -1.15 -1.00 0.00 -1.07

Crisis handling -1.10 0.00 -2.00 -1.06 - -1.06 -1.07 -0.75 -1.15 -1.00 0.00 -1.07

Communication proficiency -1.18 -1.00 -1.50 -1.00 - -1.07 -1.05 -1.00 -1.31 -1.00 -1.00 -1.09


personality, confidence-0.96 -2.00 -1.50 -1.00 - -1.09 -1.15 -0.75 -1.15 -1.00 -1.50 -1.08


employees of other states-1.04 -1.00 -1.50 -1.10 - -0.97 -1.02 -1.25 -1.23 -1.00 -0.50 -1.03

Overall -1.20 -0.94 -1.47 -0.98 -1.80 -1.17 -1.10 1.16 -1.25 -1.12 -0.94 -1.15



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In terms of initiatives taken by the organizations to enhance skills, nearly 80% of the organizations

give skill based training, while in around 10% of the organizations, experienced employees train the

newcomers. The organizations follow a process through which skills are identified and training is

undertaken. The organizations also initiate activities to motivate their employees.

Future of the sector in the stateThe employee base is expected to grow to 0.41 mn by 2020, where blue collar employees would

account for 0.19mn. Some of the key players in this industry, who are planning on investment in this

sector, include Healthcare Global Enterprises Private Limited and Devanahalli Cancer Treatment and

Research Project.


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8. RETAIL

Overview of the industry in Karnataka

According to the Economic Census 2005, there are around 71.6 crore establishments engaged in

retail trade activity. Bangalore has over 3.2 million sq ft. of organized retail, which is projected togrow to 16.3 million sq. ft. 201213. There are a total of 51 major hypermarkets in the state,

accounting for a near 35% share. The major retail clusters in Karnataka are found in Bangalore,

Mysore and Mangalore.

The retail industry of the state employs about 2.45 million people, of which blue collar employees

account for 2.2 million. Of the total number of employees, the organized sector contributes to 0.03

mn, while a substantial 2.42 mn fall in the unorganized sector.


Nearly 89% of the employees in the retail sector are accounted by blue collar employees. Among the

blue collar employees, the organized sector accounts for a meager 0.02 mn and unorganized for the

rest 2.18 mn.

The top 5 critical roles of the blue collar employees of the retail industry are those of the office boy,

security, housekeeping, cleaner and the driver. The basic qualification of an office boy is primarily

that of < / = 10th

pass, with a little under 30% being 12th

pass and around 25% being graduates. A

substantial portion of the security personnel, cleaner and driver are < / = 10th

pass, while

housekeeping personnel have primarily received no education.

Gaps appear to be centered on communication skills. Ability to handle customers, customer queries,

communicating the various promotion schemes appears to be a major skill gap area. Inadequate

understanding of the shop floor layout, guiding customers through the store, handling adverse

customers, handling queries and problems when queues are long are some of the areas where need

for specific training is felt. Inadequate communication skills and interpersonal skills is the major

concern as it is relatively easier to bridge gaps in functional skills such as those of handling cash and


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credit card transactions, handling problems in transaction failures, reconciling credit and cash

payments.

Skill gaps RetailDr

iver

Ho

use

Kee

ping

Office

Asst./

helpers

Others

Packa

ging&

Forw

arding

Sec

urity

Cle

aner

Supervisory

Role

Total


the job-1.07 -0.96 -1.05 -1.01 -1.00 -1.11 -0.95 -1.00 -1.06

Functional knowledge of tools to

be used for the job-1.36 -1.12 -1.23 -1.06 -1.50 -1.18 -1.11 -1.00 -1.16


with consistency-1.14 -1.44 -0.97 -1.06 -1.50 -1.24 -1.05 -1.08 -1.14


computers-0.63 -0.20 -1.13 -1.82 -1.50 -0.12 -0.00 -2.14 -1.12

Trained and certified for the job -1.36 -1.16 -1.09 -1.17 -1.50 -1.08 -1.32 -1.17 -1.19

Experienced with provenexpertise in the job

-1.21 -1.16 -1.11 -1.16 -1.50 -0.95 -0.89 -1.33 -1.14




of work

-1.07 -1.04 -1.20 -1.13 -1.00 -1.08 -1.05 -1.00 -1.10

Work discipline -1.07 -1.00 -1.20 -1.21 -1.00 -1.08 -1.16 -1.08 -1.15





Ability to apply power ofjudgement when required

-1.00 -0.96 -1.13 -1.16 -1.50 -1.03 -1.05 -1.08 -1.11

Crisis handling -1.15 -0.92 -1.13 -1.08 -1.00 -1.14 -1.11 -1.00 -1.11





employees of other states-0.93 -0.88 -1.09 -0.92 -1.00 -1.16 -1.16 -1.00 -1.03

Overall -1.11 -0.99 -1.15 -1.15 -1.24 -1.03 -1.04 -1.13 -1.16


In terms of skill enhancement initiatives, if the recruited personnel do not meet the standards, theyare given training. Special classes are held to train the employees to impart knowledge on

determining customer requirements and means for better communication with them. The

organizations have their own training material and methodology and at the end of the training, the

deserving employees are recognized.


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The upcoming mall space in the state is estimated at 6.18 mnsq ft. The planned investment in malls

as of Aug 2011 wasaround INR 1,600cr, while the projects under implementation were valued at

over INR 4,300 cr.

By 2020, the retail industry is expected to employ 2.68 mn people, where blue collar employees are



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9. LOGISTICS


The transportation system in Karnataka is well developed, comprising road transport, railways and

aviation sector. The density of motor vehicles in Karnataka is higher than that of the nationalaverage. Karnataka being a global destination for business and commerce, the passenger movement

through air transport is one among the highest in the country. The contribution by Transport,

Storage, and Communication sector to the GSDP in 2010-11 was estimated Rs. 30880 Cr, a 15%

growth over the previous year.

The transport infrastructure in the state of Karnataka consists of a road network of 231,032 km, 354

railway stations and two international airports. The state has a maritime coastline of 155 nautical

miles (300 kilometers). This sector employs 0.65 mn people with nearly 78% in the unorganized

sector.


Of the total employee base of 0.65 mn, blue collar employees account for 0.49 mn, 75% of the total

workforce. Of the total number of blue collar employees, organizedsector accounts for 0.07mn and

unorganized for 0.42 mn.

The top 5 critical roles of the blue collar employees of the transportation industry are those of the

driver, security, cleaner, packaging and forwarding staff and office boys. The basic qualification of a

driver and the security personnel is that of < / =10th

pass. About 20% of the security personnel and a

substantial number of the packaging forwarding staff, housekeeping and the cleaner have received

no education. Over 30% of the office boys were < / =10th pass and an equal percentage 12th pass.


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In terms of skill gaps, a major gap is found in the aspect of working knowledge of computers among

drivers, cleaners and the supervisors. Some of the basic skills required in the sector include basic

reading and writing and language skills, knowledge of road safety practices and the ability to handle

all cargo. Inadequate knowledge of safety practices, inadequate exposure to handling higher

tonnage and higher capacity trucks, inability to meet customer requirements, lack of communication

skills while dealing with customers and inability to coordinate among different agencies some of the

areas where need for specific guidance and training is felt.

Skill gaps LogisticsDriver

House

Keeping

Office

Asst./

helpers

Others

Packaging

&

For

arding

Security

Cleaner

Supervisory

Role

Total


the job-1.04 -1.00 -0.50 -1.30 -1.15 -1.06 -1.00 -1.00 -1.02


to be used for the job-1.04 -1.00 -0.71 -1.00 -1.10 -0.89 -1.13 -1.06 -1.00

Ability to perform a repetitivejob with consistency

-1.13 -1.18 -0.79 -1.10 -1.10 -0.91 -1.13 -0.94 -1.03


computers-1.50 - -0.89 -- - -- -3.33 -1.40 -1.21

Trained and certified for the job -1.04 -1.00 -0.79 -1.20 -1.10 -0.89 -1.07 -0.76 -0.98


expertise in the job-1.07 -0.82 -0.71 -1.10 -1.05 -0.89 -1.07 -1.06 -0.98

Attitude




of work

-0.96 -0.92 -0.63 -1.00 -1.10 -0.97 -0.82 -1.06 -0.93

Work discipline -0.96 -1.00 -0.80 -1.20 -1.10 -1.03 -0.82 -0.94 -0.96

Intelligence






judgement when required-1.07 -1.00 -0.75 -0.90 -1.10 -1.00 -1.32 -1.00 -1.04

Crisis handling -1.05 -1.00 -0.83 -0.90 -1.15 -1.12 -1.00 -1.00 -1.04

Soft skills





with employees of other states-0.93 -0.91 -0.92 -1.10 -0.90 -1.03 -1.13 -0.35 -0.91

Overall -1.06 -0.98 -0.78 -1.08 -1.08 -0.80 -1.14 -0.99 -1.01


In terms of skill enhancement initiatives taken by the organizations, a substantial percentage of over

65% have taken no initiatives to develop skills, while around 16% hire experienced personnel for the

jobs. Some organizations provide basic technical skills training for drivers and maintenance skillstraining for the helpers and cleaners. Training is also provided on basic traffic rules.


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Future of the transportation industry in the state

In future, employee base in the state is estimated at 0.83mn, where the blue collar employees are



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The Confederation of Indian Industry (CII) works to create and sustain an environment conducive tothe growth of industry in India, partnering industry and government alike through advisory andconsultative processes.

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Documents

Karnataka State Level Skill Survey Report