Ajit Thakur and Amit Mittal, International Journal of Research in Engineering, IT and Social Sciences,
ISSN 2250-0588, Impact Factor: 6.565, Volume 09 Issue 01, January 2019, Page 176-181
Measuring the Employability of Students
Enrolled in a Vocational Education and
Training Program: A Case-Based
Approach
Ajit Thakur1 and Amit Mittal2
1
(Research Scholar, Chitkara Business School, Chitkara University, India)
2
(Professor, Chitkara Business School, Chitkara University, India)
Abstract: Very few studies in India have attempted to measure the effectiveness of vocational education and
training (VET) programs. Using a VET institution in Pune (India) as a case study, fifty-four human resource
managers were surveyed to measure the effectiveness of the VET programs in terms of how they enhanced the
employability of the students enrolled. It was observed that the level of perceived employability in the students
differed as the type of organization changed. Overall it was discovered that the training programs of the
selected organizations were effective in meeting their broader aim of enhancing employability amongst students.
Limitations of this study and scope for future studies are also discussed.
Keywords: vocational education and training, employability, Human Resource Management, India
I. INTRODUCTION
Rapid industrialization in India would require a gross incremental workforce of around 250 million by
2030; India could potentially emerge as a global supplier of skilled manpower (Shrivastava, 2017).
However,the statistics of the unemployed population is very high in India. Table No 1 shows the rate of
unemployed people in Maharashtra State. Though from the table it can be observed that this rate is decreasing,
according to UN report published by ‘The Times of India’ (2017), the unemployment in India will rise in 2017
and 2018. This is the alarming situation for India. Maharashtra being the second largest state and being one of
the biggest manufacturing hubs of India is prone to this event of rising unemployment in near future. Rising
unemployment will have a serious and long-term impact on Indian Economy and Social Conditions.
Table1: Unemployment Rate in Maharashtra
Month
Maharashtra (%)
Jan-16
4.6
Feb-16
3.7
Mar-16
6
Apr-16
9.9
May-16
9.1
Jun-16
6.6
Jul-16
7.9
Aug-16
9
Sep-16
6.5
Oct-16
4.4
Nov-16
5.1
Dec-16
5.2
Jan-17
4.2
Feb-17
3.5
Mar-17
7.9
Apr-17
4
May-17
4.9
Jun-17
4.1
Jul-17
3.5
Aug-17
4.8
Sep-17
3.7
Oct-17
3.2
Source- BSE-CMIE (unemploymentinindia.cmie.com) Nov. 2017
Although millions of young people get graduated every year; employability of technical programs’
students is a debatable issue in India. Many human resource (HR) practitioners criticize the traditional education
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system and believe that it does not add value to students. HR Professionals demand exposure to on the job
training to students while receiving an education.There was a need to scientifically study the impact of
Vocational Education and Training (VET) on employability.Therefore this study was conducted to investigate if
at all on the job training has any significant relationship with the employability of students enrolled in technical
courses/ programs. To achieve this objective the researcher surveyed HR professionals of organizations that had
employed the students enrolled in VET programme run by Yashaswi Institute of Technology in Pune (India).
II. LITERATURE REVIEW
Roy(2016), in an article, mentions the education system in India has not been very effective in making
the youth employable. Thus, increasing the unemployment rate and creating a hindrance in the country’s
progress. While comparing India’s skilled workforce at the world level, India scores the least at 2% against
Korea (96%), Japan (80%), Germany (75%), UK (68%) and China (40%). The major reason behind is today’s
education contributes very less towards skilled manpower. The way to skill today’s youth is through vocational
training and education. This requires giving today’s youth proper guidance, counseling, training and channeling
their thoughts and enthusiasm in the right direction. India as a young nation has tremendous potential in
improving the skill-based learning to cater not only the domestic requirements but also to cater the outside the
boundary requirements. The Economic Survey 2014-15 has highlighted that “in order to bring expansion and
structural transformation, India needs to utilize its foremost resource of unskilled labor by creating skilled and
industry-ready manpower. While ‘Make in India’ is an important goal, the future course of Indian development
depends on both ‘Make in India’ and ‘Skill India’ initiatives. With a substantial amount of foreign direct
investments being invited to India, companies that open their factories and manufacturing units in India will
need a local skilled workforce which can be generated by duly educating the youth through vocational
training”. With the aim of developing the Indian economy as well as creating employment opportunities the
government has introduced the concept of “skill development “. With this concept, the National Skill
Development Corporation was launched with a target of skilling and upskilling around 400 million population
by 2022.
Unni(2016), mentions India today is one among the fastest economy. The economy is expected to grow
at 7.2% in 2017-18 and 7.7 in the year 2019-20. Indian economy is now growing into knowledge economy
diversifying from the agricultural to manufacturing and service. The government of India is aggressively trying
to convert India into a competitive, high growth and high productivity economy. This has resulted in high
demand for skilled workers. Unfortunately, the education system until now has not been a contributor to the
plans designed for a better India. This has resulted in a mismatch between the skill required and education
obtained as well as jobs and occupations. The data provided by the author states that “More than 12 million
youth in the range of 15 and 29 years old are predicted to become part of India's employment each year for the
following two decades. The government's current study on skill requirement presumes that by 2022, another 109
million or so skilled laborers will be required in the 24 keys industries of the economy. The research work
further defines what a skill gap in the labor market means, the role of vocational education, the changes in the
skill requirement of high education workers in different industries and education groups. The work concludes
that if the non-technical graduate, as well as non-technical diploma or certificate holders, should be placed in the
lower graduate intensity occupations as this will help to bridge the skill gap and release the strain on higher
educated graduates. Similarly, the Higher educated graduates should be exposed to practical work during their
coursework.
Coffieldet al. (2008),In a literature review on Employment and Skills, the reviewer laid stress on the
role of the employer in training and retraining the employees and preparing for the future work demands. The
reviewer proposed that the role of an employer should become a statutory entitlement if certainly achievable
progress is not seen. The study is a four-year project undertaken in the UK, where the progress is measured after
the introduction of learning and skill council in 2001. The report also investigated the financial return of the
employers’ investment in training. But lack of data on the employer’s spending as well as the returns to training
could not be generated, as well as the impact on business behavior and investment in training is limited.
However, the report encouraged employers to come forward and take a leading role in the reform and
development of vocational education in their sector. The author encouraged their greater use of Train to Gain
funding for employee development and promoting the voluntary “skills pledge”.
Grubb (2006), In a literature review about the complexity of the vocational education training, the
author tries to define VET, as per the author the type of education, training content, module, deliverance varies
from country to country. Vocational education provides job-specific training to work in particular trades.
Countries across the globe differ on the status and definitions of VET. Similarly, differences are also observed
in the content of the training programmes as well as the institutes involved in delivering the training problem.
The author points out that it is very common to differentiate VET in terms of initial preparation, the requirement
in labor market, specific training needed, up gradation training, retraining when workers change occupation, and
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most important remedial training for those who have been employed for a long time. Linked to this, the author
indicates that education and training in Vocational Education and training are inseparable.
Singh (2000), reported that a holistic approach should be followed to enhance the skill, knowledge,and
attitudes of the less fortunate ones. The author states that from the statistics he had collected for his study shows
that the skilling the students ensures them of employability but a group of students also take a higher leap of
entrepreneurship. The professional training endeavors to support values in the students close by expertise
adapting however the reasonable directed in schools, through OJT and apprenticeship preparing in an industry.
During the time spent in skilling, the students also learn or adopt a positive view or attitude towards the work. A
few characteristics, for example, collaboration, truthfulness, resilience, train, work morals and pride of work. He
asserts that a serene society and condition if accomplished with employability of rich HR through successful
esteem based professional instruction.
The union budget 2015, paved the way for the National Skills Mission to complement with the Prime
Minister Narendra Modi’s “Make in India” project. At present, there are 20 different government bodies in India
running skill development programmes. The report further states that “The Ministry of Labour and Employment
(MoLE) and the Ministry of Human Resource Development (MHRD) created their own sector skill councils last
year to identify skill development needs in the country, even as the National Skill Development Corporation
(NSDC) has been setting up Sector Skill Councils since 2011. A Labour Market Information System (LMIS) that
should have been one centralized resource has been developed in different forms by at least five government
agencies.” The existence of so many government agencies with no detailed policies has resulted in a failure to
standardizethe process and results thereof.
A 2013 paper of the Institute of Applied Manpower Research (IAMR)doubts the foundation of the
country’s goal of making 500 million people skilled. Government is putting efforts to impart skills into farmers,
laborers in manufacturing sectors and entrepreneurs. However due to duplication of work and unclear
governmental policies confusion is ever increasing. This has led to a thought that investment into skills must be
done only after rigorous groundwork to set policies. Sill improvement is possible if the skill gap is identified
from authentic market signals. At present, the studies undertaken for discovering skill gaps filed to provide
responsive and actionable data. This consequently affects the skill improvement scheme designs. The first move
shall be to provide with the accurate statistical data about labor market which can further be used in designing
and controlling VET programmes.
The World Bank Enterprise Surveys (2014), reveal that only 35.9% of firms in India were offering
formal training programmes for their employees against China’s almost 79%. Employers do not wish to invest
in skill development of their employees and employees also do not have the ability and willingness to pay for
undergoing training to improve skills. In such a situation, it is absolutely necessary to pull investment from
industry and raise resources required for training. To make this happen there is a needfora credit market with
collateral guarantees for participants of a training programme to guard the interest of investors. Planned
coordination with private sectors will be a key issue in the success of such a framework.
Shukla (2012), conducted an empirical study on the employability skills of engineering students in
Bhopal. Data was collected through a questionnaire and was analyzed using T-test. The paper concludes that
one single skill will not lead to success. Today’s scenario calls for multitasking. Engineering graduates have to
come out from the books and study the real and practical problems. The study concluded that the university
curriculum needs to change. A more practical approach like apprenticeship training and live projects must be
included.
Hypotheses Development
Researcher framed hypotheses based on literature review and discussion with experts in the field.
H1: There is a significant relationship between the type of organization and perception of
employability of VET students.
H2: The amount of expenditure on salaries and training is significantly higher when a number of NonVET employees are higher than the number of VET students.
III. RESEARCH METHODS
Sampling Frame
HR professionals of organizations wherein YIT students are getting on the job training under VET
program were interviewed using a structured questionnaire. This questionnaire consisted of total 11 questions
out of which 6 questions where designed to check the HR professionals’ perception of employability of VET
enrolled students. These questions were framed with the help of experts working in manufacturing
organizations. The 5-point Likert’s scale was used for all these 6 questions. On this 5-pointscale, 1 meant
‘Strongly disagree’ and 5 Meant ‘Strongly Agree ‘Other 5 questions were forced questions designed to collect
information pertaining to the profile of the organizations.
60 HR professionals in and around Pune city were approached through non-probabilistic convenient
sampling technique for data collection. They were given with the questionnaire and requested to respond on
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their own. The filled questionnaires were collected. Out of 60,54 people filled in the complete questionnaire and
returned it to the researcher. These 54 responses were considered for final data analysis. SPSS is used to analyze
the data.
IV. DATA ANALYSIS AND RESULTS
Table 2: Reliability of the scale
Cronbach's Alpha
No. of Items
.630
11
In social science, Cronbach’s alpha value of .7 and more is considered as an indication of the
reliabilityof the instrument. However, in cases where sample size is not big, the value which is close to .7 can
also be an indication of the reliability of the scale. In this study, the Cronbach’s alpha value of 6.30 is
considered a reliable value. Future studies may increase the sample size to increase the reliability of the scale.
Respondents Profile
Table3: Profile of respondents
Frequency
Percent
Valid Percent
Designation
Organization
No of VET students
enrolled at your
organization
No of polytechnic
employees
other
than VET
HR Executive
2
3.70
3.70
Assistant HR Manager
15
27.78
27.78
HR Manager
37
68.52
68.52
Total
Automobile
54
8
100.00
14.81
100.00
14.81
Electronics
8
14.81
14.81
Industrial Goods
28
51.85
51.85
Auto Ancillary
10
18.52
18.52
Total
20-50
54
4
100.00
7.41
100.00
7.41
51-80
35
64.81
64.81
81-110
15
27.78
27.78
Total
20-50
54
2
100.00
3.70
100.00
3.70
51-80
20
37.04
37.04
81-110
23
42.59
42.59
More than 110
9
16.67
16.67
Total
54
100.00
Table no. 3 gives the respondents’ profile. Total 54 responses were collected.
Descriptive Statistics
Table 4: Employability Perception scale
I think that the employees who have completed their education
through ‘Learn and Earn’ Scheme are highly trainable
I think that the costs involved in the training of the employees
who have completed their education through ‘Learn and Earn’
Scheme are lower as compared to other employees
I think that the effectiveness of training among the employees
who have completed their education through ‘Learn and Earn’
Scheme is better as compared to other employees
I think that after a training programme, the employees who
have completed their education through ‘Learn and Earn’
Scheme utilize their learning better than other employees
I think that the employees who have completed their education
through ‘Learn and Earn’ Scheme possess a better learning
attitude as compared to other employees
100.00
N
Min
Max
Mean
Std.
Deviation
54
2.00
5.00
3.7593
.75073
54
2.00
4.00
3.3704
.55952
54
3.00
5.00
3.6296
.55952
54
3.00
5.00
3.8889
.74395
54
3.00
5.00
4.0741
.69640
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I think that the employees who have completed their education
through ‘Learn and Earn’ Scheme retain their learning longer 54
3.00 5.00 4.0556
.73758
as compared to other employees
Overall Mean
3.7963
The statement ‘I think that the employees who have completed their education through ‘Learn and
Earn’ Scheme possess a better learning attitude as compared to other employees’ has received the maximum
mean value (4.07). At the other hand lowest mean value was recorded for ‘I think that the costs involved in the
training of the employees who have completed their education through ‘Learn and Earn’ Scheme are less as
compared to other employees’ (3.37).The overall mean of this subscale 3.79 indicates that generally, HR
professionals agree that the employability of the VET students is higher than their counterparts.
Hypothesis Testing
H1: There is a significant relationship between the type of organization and perception of employability of VET
students.
This hypothesis is tested by running one-way ANOVA test in SPSS. The result is given in table no. 5.
Table 5: ANOVA- type of organization and perception of employability of VET students
Sum of Squares
df
Mean Square
F
Sig.
Between Groups
4.398
3
1.466
19.547
.000
Within Groups
3.750
50
.075
Total
8.148
53
From table no. 5 it is observed that the significance value of F test is less than .01. This indicates that
the Null hypothesis – ‘There is no significant relationship between the type of organization and perception of
employability of VET students’ is failed to be accepted.Therefore, we accept H1.
H2: The amount of expenditure on salaries and training is significantly higher when a number of Non-VET
employees are higher than the number of VET students.
Table 6- Pearson’s Correlation
Salary and Training
Expenditure
on
Polytechnic
Employees
No. of VET No.
of
including
VET students
polytechnic
Students for last enrolled at your employees
year
organization
other than VET
Salary
and
Training Pearson
1
.385(**)
.754(**)
Expenditure
on Correlation
Polytechnic
Employees Sig. (2-tailed)
.004
.000
including VET Students
N
for last year
54
54
54
No of VET
enrolled
at
organization
students Pearson
your Correlation
Sig. (2-tailed)
N
No
of
polytechnic Pearson
employees other than VET Correlation
Sig. (2-tailed)
N
.385(**)
1
.004
.343(*)
.011
54
54
54
.754(**)
.343(*)
1
.000
.011
54
54
54
From table no. 5 it is observed that the correlations among salary and other (training) expenditure,
number of VET students enrolled and the number of Non-VET employees enrolled is significant (Since p< .1).
This means that as numbers of VET and Non- VET employees increase the salary and other expenditure also
increases significantly. The important thing here is that the strength of correlation among variables. The
correlation between salary expenditure and number of VET students enrolled in any particular organization is
weaker (r1= .385) than that of between salary and other expenditures and a number of Non-VET technical
employees (r2 =.754). In other words,a number of Non-VET technical employees increases the salary and
training expenditure also increases significantly as compared when the number of VET students is higher than
Non- VET technical employees. As significance values of Pearson’s correlations are less than .01 we failed to
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accept null hypotheses that there is no significant correlation between salary and training expenditure and
number of VET and non-VET employees. Looking at correlations values we accept our hypothesis- ‘The
amount of expenditure on salaries and training is significantly higher when number of Non-VET (Nonvocational) employees than when the number of VET students is higher’
V. DISCUSSION AND SCOPE FOR FUTURE STUDIES
It was found that the VET program is adding value to the learners and enhancing their employability.
Moreover, the YIT Pune run VET programme is cost effective too. It helps reduce the training cost which
otherwise would have incurred to train fresh employees who join the organization after completing their
technical education through traditional courses. This is a learning lesson to the technicaleducation system and
state administration. The technical programs should have more practical exposure and on the job training
facilities so as to improve the employability of the students. However further research is required to find in
which type of organizations VET is more effective. Such knowledge may give better insights into the VET’s
effectiveness.
Such studies should have been conducted in other parts of the country and include various other VET
programs as well. Then only findings of this study may be generalizable. This research studied only HR
professionals’ perception of employability and expenditure on training and did not collect real statistics about
expenditure on training of employees. Future studies may collect the actual statistics about the expenditure on
training of VET enrolled students and other students. Such data will give a meaningful finding ofthe
effectiveness of the VET programs.
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