All in a Day's
Work
How online startups are reshaping the informal jobs
sector where an estimated 250 million Indians keep at it
For
Bharathi, a Class X pass woman with two kids, life has
been
tough. The Bengalurubased cook would often start
work
at 7.30 am and not wrap up before 8 pm, with
a
two-hour afternoon break. Living near the factory of
Bharat
Earth Movers Ltd, she would work at seven
houses
in the neighbourhood, earning about `15,000 a month.
It
was precious money for a family where her husband's
watchman
job brought in `12,000 and rent outgo alone
was
`7,500. “Working at so many houses exhausted me.
The
long hours meant I had no time for my children either,“
says
the 35-year-old.
In
2014, helped by her brother, she created a profile on
Babajob,
India's largest job portal for blueand grey-collared
workers
(carpenters, maids, drivers, etc). “I didn't know
what
it was, but I still wanted to give it a try,“ says Bharathi.
Within
a week, she found new part-time jobs that paid better
and
entailed shorter work hours, albeit not in the
neighbourhood
but a 20-minute ride from home.
Now
riding a two-wheeler, she works at just two homes
instead
of seven and for five-six hours, instead of nine,
taking
home about `15,000. “Now I am able to look after
my
children.“ With some me free time at hand, she is
looking
for some data entry work that she could do from
home.
“I had done a short course earlier. It can help bring
some
extra money that we badly need.“ There are reasons
why
Bharathi's Baabajob story must get attention. Since
the
economy opened up in 1991, along with the corporate
landscape,
workplaces and jobs too have dramatically evolved.
In
a country with a workforce of 487 milillion, these changes
at
best impacted a minority, mostly white-collar, educated
workers
at the top of the social strata, bypassing millions
at
the bottom of the pyramid -casual workers or free agents
like
maids, cooks, drivers, carpenters, electricians, plumbers.
With
supply aplenty and no policy framework, this part of the
job
market remained largely primitive, unorganised and
sub-optimally
productive with virtually no mechanism to
connect
supply with demand or set expectations around
wages
and service standards. That is beginning to change,
thanks
to a slew of technology platforms like Babajob,
UrbanClap
and Taskbob. “These platforms have the power
to
scale. They can aggregate a lot of people, match supply
with
demand and shape pricing,“ says Nandan Nilekani,
cofounder
of Infosys and architect of the Aadhaar card.
Unlike
China, India may not be able to create millions of
manufacturing
jobs. The services sector will be a critical
in
farm-to-non farm transition for India's 260 million farm
workers.
“These
platforms can remove inefficiencies, boost productivity
and
create significant value (for the Indian economy),“
Nilekani
adds. Points out economist Sunil Kumar Sinha
of
India Ratings Research: “In a transparent way, these
platforms
will help semi-formalise India's informal workforce.“
The Next Billion
One
of the trickiest challenges in understanding India's
job
market, especially at this end, is poor or no data,
says
Rajiv Kumar, senior fellow, Centre for Policy Research.
For
the first time, somebody in India is taking a stab at it.
Babajob
began its journey about a decade back.
Cofounded
by Sean Blagsvedt and Vir Kashyap, funded by
marquee
investors like Khosla Impact, USAID, SEEK and
Gray
Ghost Ventures, it today has 6.9 million job seekers
registered
on its platform and over 4.5 lakh employers.
“We
change to the way people hire and get hired from
lower-income
households (maids, cooks, drivers, plumbers),“
says
Kashyap of Babajob. In partnership with the World Bank,
Babajob
has launched the nextbillion.in index (mostly
targeting
over 900 million Indians with no access to internet)
that
captures average salaries in five key occupations:
drivers,
delivery boys, telecallers, maids and receptionists.
The
freely accessible data was rolled out in Bengaluru in
August,
and will soon be launched pan India. The city map
will
show an overlay of pin codes and average prevalent
salary,
and will allow users to post jobs in their chosen
location.
“We want to build an ecosystem that improves
the
livelihood of the next billion by matching their skills
with
the best employers in India,“ says Blagsvedt.
Babajob
data from across India (made available exclusively
to
ET Magazine) throw up several insights, some predictable,
others
not as much. Mumbai is the best paymaster across
categories.
In
Delhi, the average monthly salary of a maid (`7,213) is
lower
than in Chennai (`7,630) or even Pune (`7,609),
perhaps
due to huge influx of migrant workers from
Uttar
Pradesh and Bihar.
Between
2012 and 2015, in some worker categories,
salaries
have consistently risen in n the top five cities
-cooks
(`8556 to `11,069), ), drivers (`8,726 to `12,599),
office help p (`6,258 to `8,212) and
delivery
boys (`7,352 2 to `10,795).
Salaries
of maids grew the slowest, from `7,491 to `8,123.
And
there have been areas where salaries have gone up
and
down. For example, salaries of retail sales staff grew
from
`10,470 in 2012 to `14,912 in 2014 before dipping
to
`13,876. Retail clerk salaries have remained flat, perhaps
a
good proxy for the online surge and offline challenges that
Indian
retailers are facing. In most job categories, salaries
offered
to men are higher than to women for the same job.
The
exceptions are sales (there is no gap), receptionists
(women
demand better salaries) and house help (the gap is thin).
New Job Exchanges
Beyond
these data, a slew of new technology platforms are
also
helping reshape a highly unorganised, casual workforce
at
the bottom of the pyramid in small but significant ways.
A
range of business models are emerging. Babajob is the
oldest,
set up in 2007. Its services, available across India,
are
free for job seekers; for employers it has free and paid
versions.
Bengaluru-based
Avinasha Sastra, 29, is a freelancer techie
who
was looking for a parttime house help. He tried three
maids
sent by the security guards at his gate. “None of them
worked
out,“ he says. Tired, he registered on Babajob for a
`2,000
fee. “I didn't want the headache of vetting and
shortlisting
the candidates.“ They assigned him a manager
who
did all that. Sastra just did the final interviews.
“It
has been three months and it has worked out great,“ he says.
UrbanClap
began in 2014 and has 50,000 registered service
providers
like plumbers, carpenters, beauticians, along with
more
skilled service providers like yoga trainers and
photographers.
Cofounder Raghav Chandra sees this as
a
$50 billion opportunity. “We manage the end-to-end
experience,
hoping to offer standardised service,“ says
Chandra.
It tries to standardise everything, from service
and
job rates to equipment and products used by the service
providers.
Besides police verification and screening, it offers
free
training -both hard and soft skills like how to talk to
customers
-on an ongoing basis. Beautician Gayatri Lakhpatani,
28,
worked at salons for eight years before joining UrbanClap
seven
months ago. “They provide us with a kit that costs up
to
`50,000 which we paid in three equal instalments,“ she
says.
Her income has almost doubled even as her work hours
have become more flexible.
Aseem
Khare's Taskbob, founded in December 2014, operates
only
in Mumbai right now and has 350 service providers.
For
the top 15% (as ranked by customers), it has an exclusive
arrangement,
treats them like semi-employees, offering them
a
minimum monthly guarantee if they are available for a
specified
number of hours. A combination of incentives and
penalty
helps Taskbob control service quality. For example,
there
are penalties for not being on time or not taking calls.
The
penalty for not turning up after accepting a job is harsher.
Conversely,
jobs that get five-star ratings from customers
attract
monetary incentives. “Rates for all job are fixed. Our
service
providers do not need to negotiate that,“ says Khare.
Housejoy,
launched last year, is present in six cities and claims
to
have 10,000 service providers. Before coming on board,
they
do a police verification in partnership with a third-party
company,
Better Places. Most of its hires come through a
referral
programme, a tool rarely used in this category.
For
each referral, members get `1,0005,000 (depending on
job categories), paid after three-four
months. “Referrals are
the easiest way to break into such an
unorganised market,“
says
cofounder Saran Chatterjee. Housejoy has a hybrid
model
where 1020% of the service providers are employed
with
them. “If they take up more than two assignments a day,
their
earnings could well go up to `50,000 per month,“ he says.
Regular training via app-based video modules
helps workers
hone
their skills.
There
are other unexpected benefits.With digital transactions
and
a trackable service history, these platforms help create
digital
footprints and profiles for a hypercasual workforce that
will
be invaluable for other sectors. “As consumers, it will open
new
doors for them. Think of financial products like loans,“
says
Nilekani.
Market Dynamics
At
the bottom, finding well-paying jobs is often a challenge.
That
is getting sorted. Carpenter Pankaj Sharma lives in
Dwarka
in Delhi. A year ago, he joined UrbanClap to find
new
clients. He now travels to Gurgaon for work instead of
seeking
work in the neighbourhood. “I get less work in my
area.
Rates too are better in Gurgaon.“ His earnings have
gone
up from up to `15,000 to up to `20,000 a month now.
Also,
earlier, his money would often be stuck with clients not
paying
on time. “That does not happen anymore.“
Usually,
fresh migrant workers are at the mercy of local
networks
to find a job, forced into making compromises or
exploited
at multiple levels. The online platforms are now
replacing
those personal networks. Anita, 25, a fresh hand
at
entailed late nights. Through Babajob, she landed one for
`8,000
within days of registering. The 7-to-5 job also gives
her
Sundays off. “Online platforms are helping tackle the
information asymmetry in this end-of-the-job
market,“
says
Manish Sabharwal, cofounder, TeamLease Services,
a
staffing firm.
With
better matching of demand-supply, jobseekers can be
a
bit choosy. Arjun Dattaray Sanap, 34, a Pune-based driver,
considers
himself lucky. Driving for 14 years, he got a job
through
Babajob four months back.Now a driver for a private
sector
executive, he has to travel about 8 km on bike but he
has
no complaints. His salary has gone up from `10,000 to
`12,000. But more importantly, “this is a
cushy job.
My
earlier job involved long work hours,“ he says.
With
their training programme and differentiation of service,
these
platforms are offering a career progression, rare in this
category.
Amit Jadhav, 24, was earlier an auto rickshaw driver.
Two
years back, he joined Taskbob, which put him through a
training
programme. “I learnt how to clean a house, from sofas
to
carpets,“ he says. He started as a helper at `12,000. He is now a leader,
cleaning two houses a day (within a 5 km radius of his residence) earning up
to `30,000 a month.
He
is joined by a helper (often a fresher). “I go to these houses
wearing
the company dress. It feels good. They treat me with
respect,
especially when I do a good job, and offer tea and
snacks,“
he says.
Working
for these technology platforms, these workers, though
not
employees, become stewards of their brands. “Out of
selfinterest,
these platforms will invest in training and skilling
a
workforce that has had little access to any,“ says Nilekani.
In
the process, it will help highly casual, untrained, unorganised
workers
with sub-optimal productivity become better at their jobs.
Boosting
Productivity
That
should be good news for the economy too. Over 90% of
India's
workforce (400 million) are in the informal sector, often
self
employed: the ratio is among the highest in the world.
“I
disagree that India has had a jobless growth. What we have
is
a wage problem; there aren't enough good, well-paying jobs.
It
is not self-employment, it is self-exploitation,“ says Sabharwal.
Workforce
productivity in India is poor.Half of India's workforce
(farm
workers) contribute just 15% to GDP. Compare this with
the
US and China. According to data from Conference Board, in
fiscal
year 1989-90, India's labour productivity per person
employed
(in PPP terms) stood at $4,941, slightly better than
China's
$3,323 though sharply lower than the US's $79,437.
But
over the last decade and a half, India has lagged behind.
In
fiscal year 2014-15, labour productivity for India In moved
up
to $13,637 but China's stood at $23,809 and the US's at
$117,970.
“If
the Indian economy has to grow well, then boosting labour
productivity
is critical,“ says Sinha of India Ratings Research.
The
long-term average annual increase in workforce for India
stands
at 1.7%. “To attain a GDP growth rate of 9%, India will
need
to boost its labour productivity growth by 7.3%,“ he says.
That
is far higher than what is currently happening. Labour
productivity
growth in India stood at 3.05% in the 1990s, 5.52%
in
the 2000s. The best it achieved was in 2005-08 when it peaked at 9%. In
2011-15, it hovered around 3.84%. In a small way, these new platforms will
help boost productivity.
“Unlike
China where the manufacturing sector helped in
farm-to-non
farm migration, in India the services sector
(that
these platforms are focusing on) will play a critical role,“
says Nilekani.
As
these platforms grow, expect some of the variables common
in
the white-collar job market -like wage inflation, attrition,
service
standards, gradation of workers based on skills and
experience
-to play out at the bottom-of-the-job market.
But
for good and discerning employers, a better service
experience
will make up for it.“From `1,500 earlier, I pay
my
maid `2,100 now. But I am happy to pay that.
A
job well done means my mind space isn't occupied with it.
It
is worth it,“ says Bengaluru techie Sastra.
|
Malini Goyal ET 20NOV16
|
Friday, November 25, 2016
SERVICESECTOR SPECIAL....... All in a Day's Work
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