Article: Unlocking EdTech's Potential: How HR Innovation Can Fuel Your Talent Engine

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Unlocking EdTech's Potential: How HR Innovation Can Fuel Your Talent Engine

India’s Edtech sector is attracting global attention but amidst its successes, the sector faces challenges that require new-age solutions.
Unlocking EdTech's Potential: How HR Innovation Can Fuel Your Talent Engine

India is set to become the EdTech capital of the world. According to research by India Brand Equity. 

Over the past decade, the sector has undergone significant expansion, particularly before and during the COVID-19 pandemic. Between 2014 and 2020, startups in this field garnered approximately US$ 1.32 billion in investments. 

The beginning of the pandemic turned out to be a watershed moment for the EdTech sector. With the surge in online demand, the industry attracted an impressive US$1.88 billion in investments in 2020 alone. This amount not only surpassed the total investments made over the preceding five years but also set a new annual record for the industry. But the picture hasn’t been all rosy. 

Since 2022, the industry has encountered a downturn due to market saturation and intense competition. Companies have begun facing obstacles that necessitate proactive measures. Here are some of the top challenges in the sector:

Elevating employee experience

Companies like Byju’s, Udemy & UnAcademy have built successful footholds in the EdTech industry, yet when it comes to employee experience, there is still a lot to be desired. Amidst the growing incidence of burnout, mental health issues, disengagement and more, listening to your employees has been paramount for businesses. Lack of feedback and loss of engagement can lead to real-time disengagement. 

The dissatisfaction among employees in organisations has also risen due to the demand for more empathy in the HR policies and processes. 

Talent retention

The retention challenge has developed for the EdTech industry in recent years - due to their lack of employee-friendly automated processes. Though some companies seem to have solved it by automating their workflow, for many, rearranging the process requires more attention to detail, time management and suitable tools. 

The lack of automation has also affected the learning experience of the employees, which has affected their motivation to stick to one single organisation and instead, look for better opportunities. 

Digital Maturity report found that 77% of organisations say it’s challenging to retain talented employees. Yet 33% of organisations that have digitised completely and depend on workflow automation say it’s not challenging at all to retain employees.

The lack of recruitment agility

Since 2022, the Edtech sector has been facing a funding crunch. With nearly 4,500 ed-tech startups in India, the talent market has become overcrowded and is experiencing extreme competition. Faced with an evolving landscape demanding new skill sets, recruiters must also find people with the right capabilities to drive the business forward, and this has created challenges in maintaining the talent pipeline. 

These reasons have collectively affected many companies’ recruitment agility which is the need of the hour to become future-ready and resilient. 

Strategic solutions to empower India’s Edtech sector

As India's EdTech sector navigates talent challenges, here's a roadmap to success that explores which initiatives will work best for your organisation:

Harnessing technology

Embracing cutting-edge HR technology solutions like applicant tracking systems, learning management platforms, and self-service portals can streamline HR operations, boost efficiency, and elevate overall employee experience. Organisations can utilise comprehensive HR solutions to cultivate an environment where employees can excel and innovate.


Developing talent pipeline

Implementing robust talent acquisition strategies, such as campus recruitment drives, apprenticeship programmes, and collaborations with educational institutions, is essential to maintain a steady influx of skilled professionals. Given the rapid growth and evolving nature of the EdTech sector, a well-structured talent pipeline ensures continuity and adaptability. EdTech firms can leverage agile Recruitment and Applicant Tracking Systems to optimise their hiring processes, from posting vacancies to selecting candidates. Features like job board integrations, candidate screening, and interview coordination can help attract and onboard top talent more efficiently.

Investing in continuous learning

With the dynamic nature of the EdTech industry and the continuous advancements in technology and pedagogy, investing in ongoing training and development is paramount. Bridging the gap between existing skill sets and emerging requirements through comprehensive training programs ensures that employees remain competent and adaptable in the ever-changing landscape of EdTech.

Fostering employee engagement

Cultivating a vibrant work culture through employee engagement programs, recognition initiatives, and regular feedback loops is crucial for enhancing employee satisfaction and retention. Agile HR tech solutions that prioritise employee well-being, safety, and compliance with industry regulations which is essential for creating a nurturing work environment where every employee is poised for growth.

Key takeaways

  • The Indian EdTech industry was valued at US$ 750 million in 2020 and is expected to reach US$ 4 billion by 2025 at a CAGR rate of 39.77%.
  • The pandemic marked a turning point for the Indian edTech sector both ways. US$ 1.88 billion was invested in the industry in 2020 alone yet post-pandemic& restart, the sector started facing a funding crunch.  
  • Major challenges faced by the sector include unfair business practices, adult learner behaviour, and lack of recruitment agility.
  • The edTech sector can rise like a phoenix with solutions focussing on agile HR tech implementation, robust talent tracking systems, investing in continuous learning, and adapting to agile employee engagement HRTech systems.
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Topics: Strategic HR, Employee Engagement, Skilling, #EmployeeExperience, #SMEcorner

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