Small size an advantage for MSMEs, technology can resolve looming challenges: Saurabh Tandon, COO, BetterPlace
BetterPlace, which offers digital products to manage the lifecycle of blue-collar employees, launched SkillConnect last week.
SkillConnect is a digital platform which aims to connect hiring employers with National Skill Development Corporation (NSDC) training institutes for blue-collar jobs.
Speaking to the SMBStory on the sidelines of the event, Saurabh Tandon, Chief Operating Officer at BetterPlace, said, “MSMEs can provide a better ecosystem for blue-collar employees than large firms. They can leverage the advantage of its small size. An MSME does not have employees running in tens of thousands, therefore, it can easily upgrade the skills of its employees, creating a much better path for upward migration for them in the blue-collar work space.”
He also enumerated the challenges which MSMEs are facing along with solutions for each.
First, in many cases, MSMEs don’t not have the marketing budget to be able to run campaigns to track workforce, which some of the largest firms might have.
Technology can reduce the cost and friction associated with sourcing and employment of the semi-formal and informal workforce which forms a large part of workforce for MSMEs.
Second, the compliance burden with introduction of GST is more on the MSMEs than large firms which can afford to invest in meeting the compliance requirements. For MSMEs, the compliance cost per employee is typically higher than large firms.
Again, technology can reduce the compliance costs per unit of employee for MSMEs. There are many technology-based products in the market which target ease in compliance and overall reduction in compliance cost for an enterprise.
Third, given limited budgets, the amount of money and time MSMEs require to invest in training their manpower is a challenge.
Initiatives like SkillConnect, which are technology driven, can deploy skilled manpower straightaway without having the MSMEs to do everything on their own.
