Background

In my PhD thesis titled “Critical Analysis of Skill Shortages & Its Effect on Financial Service Sector: A Comparative Study of Selected Commercial Banks & Insurance Companies in Aurangabad City”, I have proposed a digital solution to minimize the skill shortages and Skill Mismatch from the region.

The entire problem has been examined using a systems thinking approach. In order to identify the leverage points and to suggest a strategy for reducing the skills shortages from the region, I designed a detailed Causal Loop Diagram.

Systems Thinking: A Select Glossary

Systems : A system is nothing but a group of elements or components that are interconnected and interdependent on one another and are functioning toward a common goal. According Donella H. Meadows [1] a system must necessarily contain three factors: “elements, interconnections, and a function or purpose”.

Systems Thinking : The term "Systems Thinking" is attributed to having been coined by Barry Richmond [2] in 1987, who is a renowned pioneer in the fields of systems thinking and systems dynamics. According to him, “Systems Thinking” is the art and science of making reliable inferences about behavior by developing an increasingly deep understanding of underlying structure.” Renowned systems thinker Peter Senge [3] describes Systems thinking as a discipline to understand totalities and a framework for recognize relationships over objects, to observe changing patterns instead of stationary pictures.

In a nutshell, Systems Thinking Problem solving approach means observing problem as a whole rather than part, understanding relationships over objects, and recognizing processes over structures.

Feedback Loop: Feedback Loop is a 'system' process in which output is used as input, prompting new cycles of future actions.

Reinforcing Loop or Positive Feedback Loop: A reinforcing loop occurs when one activity leads to an outcome that impacts other instances of the same action, either growth or fall. It reflects the pattern in which the end result reinforces the original action and amplifies the changes. It creates the vicious cycle of the events

Balancing Feedback Loop or Negative Feedback Loop: Balancing feedback loop is a process that prevents additional deviations in one direction by slowing down a process. It promotes change in opposite directions by resisting the change in one direction, which stabilizes a system. To accomplish a particular objective, Balancing loops are self-regulatory and cause corrective actions.

Causal Loop Diagram (CLD): A causal loop diagram is a visual diagram that helps to illustrate the causal relationships among various system variables. A causal loop diagram comprises of four basic components

1. The variables

2. The connections: i.e. links with arrows which indicate the relations between variables.

3. The signs: The signs on the links which demonstrate how one variable influences and has an impact on another variable. Which are Plus (+) or “s” & Minus (-) or “o” signs. When one variable changes, the second variable also changes in the same direction, then it is indicated by a Plus (+) or “s” sign. And the Minus (-) or “o” sign indicates that the first variable changes the second variable in the opposite direction. The Signs of the loop which display the kind of behaviors the system will exhibit. viz. Reinforcing Loops & Balancing Loops

4. Delays: The time gap between an action and a reaction along each system link is termed as Delay and it is denoted by hash mark “║” on links. Delays can cause system instability and hinder a system's ability to accomplish its objective. Delays generally conceal both planned and unintentional results of activities since the time taken is sometimes greater than anticipated. There are four types of delays – Physical Delays, Transactional Delays, Informational Delays, and Delays in Perception.

Donella H. Meadows, in her book "Thinking in Systems" [4] mentions twelve leverage points. She has mentioned these points in reverse order, moving from easy to difficult points. The more difficult to apply these interventions the greater they create impact on the system.

First 12 to 10 leverage points are related to physical events. Next 9 to 6 points are regarding information and patterns of behavior. Further 5to 3 points she states about the social & structural leverage points and top 1 & 2 are related to the consciousness and mental models.

Identification of the Leverage Points for the Interventions

Observations from the Figure 5.1 - Causal Loop Diagram (CLD) of Skill Shortages and Mismatch - Identification of Leverage Points

• Without the proper involvement of Job Seekers and Educational Institutes, the reinforcing loop of Skills Shortages/ Mismatch and unfilled vacancies can be observed in the diagram which may result into a vicious cycle.

• However, timely preparations by the job seekers create a balancing loop which results in reduction of skills shortages and mismatch.

• Preparing for the job is the key process in the filling the vacancies and increasing the employment rate. This process involves Job Seekers as well as Educational Institutes. The ideal situation may create a reinforcing loop of higher employment rates.

• But delays may reflect some consequences in this overall reinforcing loop.

Causal Loop Diagram (CLD) of Skill Shortages and Mismatch - Identification of Leverage Points

Current Scenario and Identification of Leverage Points:

During the research, by analyzing primary & secondary data and the Figure 5.1 - Causal Loop Diagram (CLD) of Skill Shortages and Mismatch, it has been observed that -

• The employers have unanimously echoed that the Job Seekers and Educational Institutes play Very Important Role in mitigating the Skills Shortages from the region.(ref. Table No. 4.5c.1 of the my PhD thesis)

• The Figure 5.1 - Causal Loop Diagram (CLD) of Skill Shortages and Mismatch as well reflects that the Job Seekers and the Educational Institutes have greater influence on reducing the Skills Shortages.

• Further, Figure 5.1 - Causal Loop Diagram (CLD) of Skill Shortages and Mismatch shows that employers' delay or failure to communicate new skills in-demand to job seekers and educational institutions may result in a delayed process of job preparation.

• Employers have vacancies but they are unable to fill them because of certain reasons. They don’t have any medium to express their views regarding hiring issues to the appropriate stakeholders.

• On the other hand, job Seekers, especially fresher; do not have any channels to learn about the highly demanded skills & changing trends of the job market.

• The Educational Institutes to understand about the changing scenarios of the hiring trends and employments in the region, rely upon academic research, conferences or other reports.

• Delays in the flow of information from employers to job seekers and educational institutes may further stall the process of preparing job seekers for employment.

• Hence it is observed that there is ‘a huge gap mainly related to the communication among the different stakeholders’ about the issues faced by them related to employments, which, to the large extent, contributes to the vicious cycle of Skill Shortages or Skill Mismatch in the region.

Donella H. Meadows, in her book has placed the Delays at the 9th place in the list of leverage points. She mentions Delay length as a high leverage point [5]. She states that delays are often difficult to change. However, if there is a delay in the system that may be altered, then doing so could result in significant impacts.

"The HIRING Desk" (Job Portal) - The Proposed Digital Solution

1. To bring all the relevant stakeholders of a region, viz., Job Seeker, Educational Institutes and Employers, together on one platform

2. To cut down on information delays

3. To build a robust communication, feedback and review system.

The Goals of "the Hiring Desk"

In light of the 9th leverage point, the "delay" suggested by Donella H. Meadows [6] and in context of the primary and secondary data of the study as well as the Figure 5.1 - Causal Loop Diagram (CLD) of Skill Shortages and Mismatch, the leverage point should involve both Job Seekers and Educational Institutes and their timely communication and information flow with Employers.

Hence “The HIRING Desk”, a job portal, is proposed as a digital solution to provide a single platform to all stakeholders and to establish a strong & timely communication system among them.

Features of “The HIRING Desk”

• “The HIRING Desk” is a job portal designed with an aim of addressing the issues of Skills Shortages and Mismatch in a particular region.

• The Educational Institute would be the administrator of the site.

• Employers and Job seekers would register on the site.

• The employers would post job openings on this portal.

• Job seekers would be able to make resumes and apply for the jobs posted on the site.

• The Educational Institute would be communicating with Employers and Job Seekers through the portal as and when required.

• The Educational Institute would keep observing the activities of the Employers and the Job Seekers through its dashboard.

As a result of this site, all the stakeholders would be able to communicate and give feedback to each other to improve the region’s position with regard to skill shortages, skill mismatches, and unemployment.

The data and information acquired through this website would broaden the understanding of the situation and serve as a foundation for taking additional measures.

Scope of “The HIRING Desk”

• As skill shortages, skills mismatch and unemployment issues are mainly related to the specific geographic regions, hence “The HIRING Desk” focuses on one particular region.

• The regional employers, job seekers and educational institutes have been considered as major stakeholders.

• The Educational Institute is designated as the administrator of the site.

• The main university operating in the region is considered as the administrator of the portal.

• Other colleges and institutes of the region may also register on the site, with the university being the only administrator.

• Current students of the university, alumni, and local job seekers all are labeled as Job Seekers for this portal.

Limitation of the Proposed Solution

For this portal, no financial aspect has been taken into account, as these decisions are solely dependent on the policies of the educational institutes.

Important Data and Information Expected to be Gathered Through “The HIRING Desk”

Data to be gathered from

the Employers

1. No. of candidates applied for the jobs posted

2. No. of candidates got selected

3. Skills and level of expertise candidates hold

4. Candidates could be asked to provide details if they applied through other platforms and got selected for any job.

Data to be gathered from

the Job Seekers

Data Analsis & Reports to be generated

by the Educational Institute

1. No. of vacancies posted per month or per year

2. Categories of the jobs posted

3. Titles of the jobs Job Descriptions

4. Qualifications required for the jobs

5. Desired other certifications

6. Expected no. of years of experience

7. List of skills required - list of Soft Skills & list of Hard Skills

8. Hiring Duration – the period between posting and closing of vacancies

9. Employers could be asked to provide details if they posted jobs on any other platforms and hired the candidates

1. The data gathered from the Employers and the Job Seekers can be analyzed and observed in many ways by the Educational Institutes.

2. Further more in-depth research can be performed by sending surveys or feedback forms to the Employers and Job Seekers registered on the platform.

Expected Outcomes from “The HIRING Desk”

For the Employers

1. Would enable regional employers to post & hire easily for their vacancies.

2. Would save hiring cost & time.

3. Would get a platform to directly connect with the Educational Institutes and to give feedback / reviews regarding their hiring experience (Positive / Negative).

4. Would get a ready platform to communicate and collaborate with students / Job Seekers and Institutes regarding various events if organized.

1. Would get a platform to create a resume listing all their skills and certificates.

2. Would help in self-assessment regarding job readiness and market requirements

3. Would get a platform to directly connect with the Employers, seniors and ask queries if they have any.

4. Would be updates regarding current skill requirements, selection procedures and market trends.

For the Job Seekers

1. Would get a platform to connect directly with the Employers and Job Seekers

2. Would get real time and authentic data to understand the employment related situations in the region

3. Would reduce dependencies on other research regarding job markets

1. Would get enough information to gauge the employment related situations to form various policies

For the Educational Institutes

For the Government

References

[1] Meadows, Donella H. (2009). Thinking in systems : a primer. London ; Sterling, VA :Earthscan, p.11.

[2] Richmond, B. (1994). Systems Dynamics/Systems Thinking: Let’s Just Get On With It. In International Systems Dynamics Conference. Sterling, Scotland.

[3] Senge, P. (1990). The Fifth Discipline, the Art and Practice of the Learning Organization. New York, NY: Doubleday/Currency.

[4] Meadows, Donella H. (2009). Thinking in systems : a primer. London ; Sterling, VA :Earthscan.

[5] Meadows, Donella H. (2009). Thinking in systems : a primer. London ; Sterling, VA :Earthscan, p.152.

[6] Meadows, Donella H. (2009). Thinking in systems : a primer. London ; Sterling, VA :Earthscan, p.151.

Thank You