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Monday, December 26, 2016

Employability and Staying Ahead of the Curve



Do you know that approx. 18 Lac Engineering students pass out each year in India?

And do you know that a shocking 80% of them are unemployable?? ...

...If this is the plight of engineering graduates, one shudders to think of what arts/commerce/science graduates could be going through..! While there are scores of reasons to explain above anomaly (mass-copy/cheating at exam. centers/fake degree certificates, distracted students to lack of teaching faculty/infrastructure/falling standards of teaching, lesser jobs at entry level so on and so forth), the article is for that average student who is honest, keen to get his first job and aspires to get ahead in life..!

Let’s first be clear on some concepts.

Employability is not simply getting a job; neither is it a list of skills that can be ‘taught’!

Employability is on-going success for now and in future, whatever career a student chooses.
Employability is leveraging a range of skills, abilities and attributes that are developed in a whole range of settings and that vary from individual to individual.
The classic definition of Employability is - “It is a set of achievements – skills, understandings and personal attributes – that make graduates more likely to gain employment and be successful in their chosen occupations, which benefits themselves, the workforce, the community and the economy”.

To further expound employability -
·         It is the ability to gain initial employment (For the same, the interest in ensuring that ‘key competencies’, careers advice and an understanding about the world of work should be embedded in the education system)
·         The ability to maintain employment and make ‘transitions’, changes between jobs and roles within the same organization to meet new job requirements or
·         The ability to obtain new employment in another organization if required.
·         An ongoing developmental process that benefits from active reflection

Considering the rising cost of education, Educational Institutes should strive to provide a good return on investment to students. They need to be engaging in the educational process, rather engaging in the whole student experience. Innovative teaching, learning and assessment methods help students engage in the education process and have the added benefit of also helping them to develop attributes which make them attractive to potential employers. Students’ interest is more likely to be maintained if they can see the relevance of their studies to their future careers and life beyond university.

Students who make an effort to fully participate in the total student experience (academic, co-curricular, extra-curricular, including work experience) benefit from a well-rounded education, contribute fully to the life of the University and community and hopefully have fun in the process. Involving employers in the education experience, for example, through case studies, delivery of guest lectures, can help students appreciate the relevance of their course and learn how to apply theory and knowledge in practical ways in the workplace.

Developed by Pool & Sewell and based on a range of employability models and theories, the CareerEDGE model provides a useful summary of five essential elements that aid students' employability:
Career Development Learning – the knowledge, skills and experience to help students manage and develop their careers.
Experience – work and life experiences help students develop a broader range of skills and are attractive for prospective employers. (How seriously have you taken internship? What have you observed/learnt at the work place?)
Degree subject knowledge, understanding & skills –  Do you know the fundamentals of the stream you chose for graduation? Do you love at least one subject passionately out of the 40 subjects you would have studied in 4 years of engineering?
Generic Skills - Communication skills / body-language / etiquettes (Can you speak fluently for at least two minutes on any given topic? Does your body language exude the confidence? Is your attire too casual/too fashionable (due to which the recruiter may think of you as a not-a-serious candidate while hiring)?
Emotional Intelligence – “the capacity for recognizing our own feelings and those of others, for motivating ourselves, and for managing emotions well in ourselves and in our relationships”  
All five elements are important and missing one can considerably reduce a student's employability.  Each element is important in its own right, but all five overlap and are integral to each other.

Although attitude is a big parameter (& it is briefly covered under Emotional Intelligence, which is also called as ‘Emotional Quotient’), I won’t delve much on it in this article.

The important reason being, the focus of the article is for freshers/engineering graduates/juniors with hardly one-two years of work experience. Assume, there is a requirement of 20 BlockChain professionals & you (as an employer) received 100 profiles/applications for it. You will filter, say 40 applications/profiles purely based on whether the said candidate has done any course/certification/training in BlockChain or has worked in it. You won’t filter the applications going by the great attitude the applicant might have described in his CV. You will try to gauge the attitude only in 2nd (or 3rd) round in F2F interaction. So, the hard-skills (read, relevant degree/certificates/training/job-skills) is the primary filter (or, call it a door-opener) to increase the employability. 


A degree is no longer enough
Due to changing market conditions (in short – glut of supply and very less demand of entry-level jobs), it makes sense to augment the basic degree with a post-graduation or with a training course in the latest technology.

As per one survey conducted by Times of India, following skills and experiences are the most predictive of a graduate’s employability (in the descending order of importance, top-most being most important):
1.       Professional experience
2.       High degree of specialization
3.       Excellent academic record
4.       Extra-curricular activities
5.       Proficiency in at least two foreign languages
6.       Graduation from a top university

To be employed is to be at risk, to be employable is to be secure
Can anyone disagree with this?

Remember, employability is not restricted to passing out graduates (freshers) alone. The way IT (rather, ICT) has been impacting our daily life through many disruptive innovations, lot of skills are becoming outdated.
The Big-4 IT organizations in India (TCS, Infosys, Wipro & Cognizant) are investing a lot in automation, Artificial Intelligence, which in turn could reduce the in-take of freshers/junior-level hiring drastically. It will also impact thousands of middle-level managers. And then there are many middle-level managers who are either working on some archaic technology (which no other organization is using) or who just fell in love with their big titles and so are working like clipped winged birds (and so are highly prone for lay-offs) .The only way to survive in today’s corporate jungle is to develop a keen eye (to see which are the emerging trends/technologies & which will be obsolete) & to develop an open mind to un-learn, continuously learn new things, re-invent, adapt ourselves, say after every 5 years! (Can’t resist sharing Andy Grove’s quote here, “paranoids survive”)

Rather going one step ahead, the thinking needs to be, not to seek employment but to create it! (And that will be my next blog)


Best luck!




References – Wikipedia, http://www.ed.ac.uk , Times of India

Sunday, November 27, 2016

In the Wonderland of Investment (Part II)


Having addressed the ‘Why invest?’ part in earlier article ( http://magnum-pratham.blogspot.in/2016/11/in-wonderland-of-investment-part-i.html ), we will now address the more important questions of ‘How to invest’, ‘Where to invest’ & ‘How much to invest’. 


First things first.. 

Hope most of you would be knowing the 50-30-20 rule. It simplifies budgeting by allocating 50% for your needs, 30% for wants (yes, there is a BIG difference between needs & wants!) and 20% for savings! (Though I would 25% for wants & 25% for savings..) The key take-away from this thumb rule is, you need to decide what percentage of your monthly income you want to save! 

Once you decide this, move on to find out where to save.. 

Investments, which are assets, are broadly classified into following asset classes.
Real estate – Residential house, residential/commercial plot, agricultural land fall in this category
Bonds –  PPF, RBI bonds, govt. issued other bonds.
Securities – Equity stocks, mutual funds
Precious metal – Gold, silver

I will take a case of a 25 yr. young man working in his first job after graduation. Let’s call him Ram.
Ram should start investing in PPF , to begin with say Rs. 50,000 per year (and increase it gradually as his salary increases. Maximum amount is Rs. 1.5 Lacs per year as per the current rules. The savings yield say 8% on an average) If he does that every year for next 30 years and doesn’t withdraw funds in between, do you know how much money will be in his PPF account at the age of 55? More than a Crore! That is the colossal power of compounding interest you need to know and start leveraging early! (Now if you do this for your spouse and kid/s, think of the kitty you would be having!). Parallely, Ram should also start one Life Insurance policy at the age of 25-26.

As Ram progresses in career and let’s say he is 30 yr. old now. He should start investments in securities (Equity stock / Mutual funds). Even if you’re a medico or an arts graduate or a home-maker, remember investing in stock market is not rocket science! Like Ram, if you spend some time surfing internet to learn more about stocks and mutual funds, you will learn a lot. There are hundreds of websites / apps.  If you don’t know from where to start, check out Moneycontrol.com or valueresearchonline.com.  If it is still a daunting task for you, contact IFA (Independent Financial Advisor) & they will explain how you start your SIP (Systematic Investment Planning) of a particular fund/s or even stock.  SIP in plain words is buying a fixed quantity/units every month of a predetermined amount, let’s say Rs. 5000 every month. May it be mutual funds or stocks, don’t go in for quick gains. It pays to stay invested for long term

If you want to go for stock market investment on your own, begin investing in bellwether companies / large-cap companies, which are there, say from last 30+ years and will be there for at least next 30 years! Investing in mid-cap or small-cap companies is certainly risky if you haven’t done any analysis or have no time to do any analysis and want to invest just because you got some tip from someone! 
You should analyze key figures, financial ratios of the companies and finalize a few companies with sound performance and growth potential. Decide how much you want to invest and buy the stock when there is some market correction. (in plain words – buy it when the market dips / bottom-fishing) And again, do it in two or three lots.  That means, buy say 50 stocks of HUL today & buy 50 more after a month or two.  This needs some patience, keeping updated of the market/economy/political/technology developments. But if stock investment is done over a period of 20 years, the power of bonus/split/dividends will give you a solid return on investments. In fact, this asset class has the potential to give largest yield. 

Ok, now Ram is 40 yr. old. He should increase the cover (or go for a new additional policy) for life insurance. It is also the right time to start a mediclaim policy (as a risk-mitigation measure to high-cost hospitalization in later life). Having well-settled in life & he could also be looking to invest in Real Estate. 
 .  In most cases, people go for another apartment or a farm-house plot. Here one needs to do quite some spade work, needs to be vigilant to ensure title (of the apartment/plot) is clear, it is not ‘disputed’ property etc. Even though most of we Indians are enamoured by real estate, there are many down sides of this asset class.
1.       It is not liquid investment. That means, if you need money due to some emergency, you cannot raise funds from your real estate investment even in a month. (And if you show desperation of selling, buyers offer you much lower rate!)
2.       The rental income (of apartments) in India is pathetically low. If you calculate, the yield could be much lesser than even bank interest rates!
3.       Please note - While calculating your Net worth, you should NOT include your primary residence (i.e. the house you're living in currently). 

Ram is in mid-forties now & ‘precious metals’ asset class is on his radar.  And why not? Traditionally & globally, gold has been seen as a safe haven investment.

Now let me share some ground rules:

Rule # 1 - 
Higher the interest rate / yield potential, larger the risk!

Yes, while nationalized banks give 6.5% interest on FDs, cooperative banks give more (& still smaller banks/trusts give much more) but you know the risks attached. Same is the case with day-trading or investing in futures (derivatives).  You don’t want to lose your shirt!


Rule # 2 –
Do NOT put all the eggs in one basket.

If you talk to your investment advisor, chances are he will make you believe that Mutual Funds is the best investment you could do!  Remember what Mark Twain said, “To a man with a hammer, everything looks like a nail!”   You need to spread your investment across all the asset classes, what is called as asset allocation.  Without going too much into details, remember, when one asset class goes down, some other asset class goes up.
To minimize the investment risks & maximize the yield, here is the investment portfolio mix what many investment advisors recommend (& remember, this is NOT a proven or scientific formula)
·         Bonds -30%
·         Stock – 30%
·         Real estate -20%
·         Gold -10%
·         Bank FD and saving accounts– 10%

Rule # 3 –
Don’t put all the eggs at the same time even in different baskets!

Yes, do not rush. You need to have patience of a crane to invest at right time.  (Even though I agree that nobody can predict what a right time is. You always know it in the hind sight, like when property market took off around 2006-2007 in India! But you do develop the timing sense over years)

Rule # 4 –
Review your asset portfolio at least annually and make adjustments if necessary.

Asset allocation is not something you do just once and forget about it. As asset classes rise or fall at different rates, over time the assets you have selected are likely to deviate from your original allocation. For example, your portfolio may have become more cautious or more aggressive.
To ensure your portfolio reflects the type of investor you are, it is recommended you review your portfolios at least annually and make adjustments where necessary.

You also need to change the mix of your investment portfolio as you grow old. 
When Ram is 60 yr. old, he needs to reduce his exposure to equity & move more towards Bonds & FDs.


To summarize the vast topic – In the young age, you start taking care of your investments & the investments will take care of you and your spouse in your golden years!


Happy Investing!!



*Disclaimer – The article is intended only to create the awareness towards investment. Investment decisions are subject to market risk, as explained earlier. The author is not responsible for any financial (or any other) losses (or even gains :-)) in any of the investments a reader may undertake.



Friday, November 18, 2016

In the Wonderland of Investment (Part I)



While we all agree to seize the moment, live the moment and be happy, it should not be construed to spend whatever you have without giving a thought for tomorrow! Many messages float on social media advising you to spend money on your well-being, don’t worry about the future or don’t save too much (lest your kids would become lazy/dependent on you, etc.).  While I do agree with the first part of the sentence, I would not agree with the latter part.  Allow me to explain.

1.    We (assuming most of my readers are living in India) are living in a country where the inflation rate hovers between 7% to 9%.  Those of you who are good in Mathematics or in MS-Excel, just try to find out how much your monthly expenses would be in year 2046 (assume your current monthly expenses as Rs. 70,000 – all inclusive – Assume inflation rate a modest 7%) . Most of you would get a shock of your life when you see that number..

2.    Thanks to the overall rise in the standard of living, increased awareness about health/fitness/nutrition, the average life expectancy has increased in India (It was 66 yr. in 2012, it could be 70 now & soon we could be catching up with the Developed countries where it is 80+)

3.    We are also witnessing a disturbing rise in air pollution, water pollution, food contamination which negate the earlier point slightly. The mortality rate will not increase much but the risk of various respiratory, gastro-intestinal diseases increases exponentially, expecting a big hole in the pocket on account of hospitalization, medical expenses.  (Also note –  Most of the health insurance plans cover only hospitalization & not OPD charges – which are substantial and which most of us incur frequently)

4.    Work environment has changed a lot. Increased competition, more travel, working at odd hours, fast food / alcohol consumption & lack of stress management has given invite to more life-style diseases. Many are getting burnt out in 30s and considering to leave the rat race. Those in their late 40s are struggling to survive in the ever-changing IT industry (or even engineering industry) .  While many are opting for voluntary retirement, there are many cases of forced ones too. 

5.    Most of us would be living in ‘empty nest’ since kids would be living either abroad or in metro cities, necessitating need of a driver, maid (and or a nurse in some cases). These expenses need to be planned. Add this to the number you got in point 1)

6.    The well-heeled can also add overseas vacations

Now tell me, would you want to spend money today (as if there was no tomorrow and find yourself in awkward situation in old age) OR would you want to spend it discreetly? 
(On a related note - Do NOT ever be an impulsive buyer using credit cards incessantly! And do note, pay the entire credit card outstanding amount on time & NOT just minimum due amount , as it puts so deceptively; because if you keep paying only minimum due amount, you might be coughing more than double of its purchase price without your knowledge!) 

Coming back to investments, wouldn’t you want to invest your money wisely so that the savings outgrow at least the inflation rate and enables you to maintain your life style?  So you could be on the verge of graduation and looking for the first job or you could be 40s, it makes sense to invest and …invest wisely!

To be honest, to invest or not to invest is not a question at all. 


Rather it should be, how to invest and which we will cover in part II. 

Tuesday, October 25, 2016

श्रावण (दशपदी)


मेघांची किनखाप निळी-जांभळी-काळी

उभा ध्यानस्थ कसा धवल बक तो जळी

कुठे शीतल वाऱ्याने शहारे मुग्ध कळी

गोकुळचा अवखळ गोऱ्हा हुंदडे तरुतळी

अन तिकडे मयुराची नृत्य-मुद्रा ती आगळी

श्यामल वसुधेची हिरवीकंच  चोळी,

केशरी उन्ह-पावसात होई थोडी ओली

गाली गुलबक्षी-किरमिजी ढगांची लाली

अन कधी सप्तरंगी इंद्रधनू हार नवा ल्याली!

..बेटातून वेळूच्या, सावळ्याची शीळ मग आली!!



-
प्रशांत



गीत-महाभारत

                                                                                                        
गीत-महाभारत (१)



पाहसी वंदनीय पितामह भीष्म समरांगणी
अतुल्य गुरु-द्वयी कृपाचार्य-द्रोण हि रणी

रथी मातुल शल्य, शकुनी, तयांस वंदू
दुर्योधन, दु:शासन आणि कैक मम बंधू

कोवळा लक्ष्मण पुत्रागणिक तो मज
अन अश्वत्थामा तो बंधूगणिक मज

सर्व माझे आप्त, सर्व माझे स्वकीय जरी
कैसे मी शर- संधान करावे तयांवरी

मारण्या तयांना का मी रोखू तीर त्यांच्यावरी
वधून तयांना का मी घ्यावे घोर पाप हे शिरी

मारून तयांना नको मज ते राज्यसुख
कुलसंहार करूनी दाखवू कोणास मुख

गात्रे गलीत, कोरडे पडे मुख अन वाराही स्तब्ध
काय योजिले योगेश्वरा, कैसे हे अगम्य प्रारब्ध,

सांग कृष्णा, किम कारणेन करावे मी हे युद्ध?
सांग कृष्णा, किम कारणेन करावे मी हे युद्ध??



                                                                                                    -प्रशांत








घुसमट

जन्माला येणारा प्रत्येक मानव
निसर्ग-दत्त नग्नच असतो,
पण लगेच त्याला धर्माचं झबलं,
अन जातीचं टोपडं घालतात,
मोठं होताना तो पण मग
हौसेनं काही रूढी, काही परंपरांची
वस्त्रे परिधान करु पाहतो,
गर्वानं मिरवू लागतो!
वर्षागणिक समाज, पुढारी धर्मगुरू
अंधश्रद्धेची, धर्मांधतेची वस्त्रं
लपेटू लागतात त्याच्यावर!
केंव्हातरी त्या वेड्याला कळतं,
आपला जीव का गुदमरतोय,
मोकळा श्वास घेण्यासाठी मग तो
धडपडू लागतो, आक्रंदू पाहतो,
हजारो प्रारणं, आवरणं फाडू पाहतो
... ....  ...  .. ..  ....  .....
पण तोवर फार उशीर झालेला असतो,
.............फार उशीर झालेला असतो!





-          प्रशांत (०९/०५/१५

आकाशवाणी ...आठवणी

रेडिओ घरी येण्याच्या आधी ‘आकरा वाजले’ हे घड्याळ न पाहता मला लहानपणी कळायचं जेंव्हा कामगारसभेचं सुरुवातीचं ते वैशिष्ट्यपूर्ण संगीत कानावर पडायचं शेजारच्या घरातील रेडिओमधून! (खूप वर्षांनी मी कमिन्स कंपनीमध्ये कामगारांना अकरा वाजता कामगारसभा ऐकताना पाहिलं आणि जरा आश्चर्यच वाटलं होतं!)
मी सातवी-आठवीला असताना रेडिओ घरी आला. एक-दोन आठवडे लागले बहुधा रेडिओ स्टेशन्स, कार्यक्रमांच्या वेळा वगैरे कळायला  आणि अल्पावधीतच सगळ्याचाच लाडका बनला रेडिओ!
सकाळी सहाची पहिली धून, मग अभंग-वाणी, संस्कृत बातम्या (प्रवाचक- मंगला कवठेकर अथवा बलदेवानंद सागर!) आणि मग सातच्या बातम्या! “आकाशवाणी पुणे, सुधा नरवणे प्रादेशिक बातम्या देत आहे”,... या खणखणीत आवाजानेच मी खूप वेळा झोपेतून जागा झालो आहे! नंतर वडील रत्नमाला (कि दुसरा कोणता तरी) हा जुन्या गाण्यांचा कार्यक्रम लावायचे. मला फार राग यायचा तेंव्हा. एक गाणं ओळखीचं नसायचं! शेवटचं गाणं सैगलचं असणार! आठला आपही के गीत हा नव्या हिंदी गाण्याचा कार्यक्रम असायचा. आठ-चाळीसला चित्रपट संगीत आणि नऊ-दहाला शालेय कार्यक्रम! आणि मग शाळेला निघायचं!!
बुधवारच्या बिनाकाबद्दल मंगळवार-पासूनच सर्व घोकायचे (म्हणजे कॉलेजमधले भाऊ-बहिण). रविवारी तर चंगळ असायची. एका-मागे एक ‘आपली आवड’ ऐकायची! मला वाटतं, साडे-दहाला सांगलीवर असणार, मग अकरा कामगार-सभा,बाराला पुण्याची आपली आवड, साडे-बाराला ‘औरंगाबाद-परभणी’. मग जळगाव. दुपारी अडीचला मनोरंजन गीत, तीनला जयमाला.वडील आठच्या मराठी बातम्या (नंदकुमार कारखानीस, सदाशिव दीक्षित, आशा कर्दळे) , साडे-आठला स्पॉट-लाईट व नऊच्या इंग्रजी बातम्या (बहुधा Rasika Ratnam. मला ओ की ठो कळायचं नाही!)ऐकायचे. साडे-नऊला ‘नभो-नाट्य’ लावण्याची फर्माईश आईची असायची! थोडं मोठं झाल्यानंतर ‘बेला के फुल’ हा जुन्या हिंदी गाण्याचा कार्यक्रम ऐकू लागलो. त्याचं वेळेला ‘तामिली-ए-इर्शाद’ नावाचा पण जुन्या हिंदी गाण्याचा कार्यक्रम असायचा कोठे तरी. शेवटचं गाणी ऐकून साडे-आकराला झोपायचा दिनक्रम मी बऱ्याच वेळा केला आहे!  (आत्ता इतक्या वर्षांनी लिहिताना मला जाणवलं की मग अभ्यासाला वेळ केंव्हा दिला मी :-?)

आकाशवाणीची आणखी एक गंमत म्हणजे गाणी ऐकून सध्या ऋतू कोणता असेल (किंवा बाहेरचं तापमान  किती असेल)हे कळायचं!  खोटं वाटतंय? ‘वेळ झाली, भर माधान्य, माथ्यावर टळते उन्ह’ हे गाणं दुपारी बाराच्या आसपासच लागायचं! ‘आला थंडीचा महिना, झटपट शेकोटी पेटवा’ कानावर पडलं की ओळखायचं हिवाळा सुरु झालाय! ‘आला-आला वारा, संगे पावसाच्या धारा’ ऐकलं की समजावं, श्रावण आला आहे! J

पुढे मी पुण्याला आलो आणि कळलं की पुणे विविध-भारतीवर दिवसभर गाणी असतात! आणि पुणेकरांचा थोडा हेवाच वाटला! J
नक्की वर्ष आठवत नाही. पण बहुधा नव्वदीच्या आरंभास टीव्ही आम माणसाच्या घरी घुसला आणि रेडिओ म्हणता-म्हणता अडगळीत गेला! एका दशकापेक्षा जास्त काळ रेडिओ हे माध्यम कोणाच्याच खिजगणतीत नव्हतं! मग FM आलं आणि रेडिओला पुन्हा संजीवनी मिळाली. तरीही आता अगदी FM देखील फार कमी जण ऐकत असतील घरी! कार driving करताना जेवढं कानावर पडतं तेवढंच! असो!!

कालाय तस्मै नम: !!



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