How skills-first hiring can transform India’s workforce

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India’s journey to becoming a $5 trillion economy hinges on unlocking the full potential of its workforce, particularly women. While 49% of higher education enrolment consists of women, their workforce participation remains at just 37% as of late 2023. This gap signals not only untapped talent but also significant economic opportunity waiting to be realised.

Skillset (istock)
Skillset (istock)

To address this challenge, UN Women India and LinkedIn have partnered on a program that empowers women with the skills and tools needed to access economic opportunity and overcome workforce entry barriers. By championing a skills-first hiring model that emphasizes inclusive practices, the programme shifts the focus from traditional degrees to competencies and potential. It bridges critical employability gaps by educating women on what employers are looking for, how to prepare for interviews, and how to leverage networking platforms, while also sensitising companies on the importance of gender equality and hiring non-traditional talent.

This strategy aligns with India’s national priorities, including the Union Budget 2024’s emphasis on youth employment and digital literacy. It’s about finding talent based on what individuals can do, and not just where they’ve worked or studied.

LinkedIn data shows that a skills-first approach to hiring increases the overall talent pool by 12x in India – surpassing the global average of 9.4x. Importantly, hiring for skills in India increases the talent pool for women by 29% more than it does for men, for jobs where women are traditionally underrepresented. The program equips women with in-demand skills like digital marketing, Artificial Intelligence (AI), and other future-ready skills while addressing the unique challenges faced by women in Tier 2 and Tier 3 cities, where infrastructure often limits industry exposure. By fostering public-private partnerships, the programme bridges the gap between education and employment, complementing existing government initiatives and digital literacy programmes.

The case for gender diversity is compelling. According to a McKinsey report titled Diversity Wins: How Inclusion Matters, companies in the top quartile for gender diversity are 25% more likely to achieve above-average profitability. Inclusive hiring strategies, especially at entry-level positions, help identify overlooked talent and give businesses a competitive edge.

One story that exemplifies the transformative impact of this initiative is that of Kusum Salvi, a first-generation student from Mumbai who overcame restrictive gender norms and the pressure to earn and support her family. Through the programme, Kusum gained vital digital skills, attended job fairs, and received mentorship and coaching that helped build her confidence, enabling her to secure a job with Sodexo.

Our partnership shows that meaningful change is possible when organisations commit to removing barriers and fostering inclusion. By focusing on mentorship, networking, and skills development, we’re not just bridging the skills-gap but also addressing cultural barriers that limit women’s autonomy and career progression.

Inclusive hiring isn’t just a policy, it’s a transformative business strategy that builds resilient teams and drives a more inclusive economy. As we continue to advance our skills-first model, we encourage industry leaders to rethink hiring strategies and create workplaces where talent is recognised, irrespective of gender or background. Because when women succeed, businesses thrive, and economies flourish.

This article is authored by Kumaresh Pattabiraman, country manager, India, LinkedIn and Susan Jane Ferguson, India Country Representative, UN Women.

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