What is On-the-Job Training (OJT) & Its 6 Important Benefits to Companies

Introduction

The National Education Policy (NEP) 2020 introduced a paradigm shift in the education and skill development landscape of India. Its emphasis on experiential learning, vocational education, and bridging the gap between academia and industry has underscored the importance of on-the-job training (OJT).

OJT is an essential component in equipping students with real-world skills and preparing them for dynamic professional environments. For companies, this is an opportunity to engage with budding talent and contribute to building a skilled workforce.

On-the-Job Training (OJT)

Importance of On-the-Job Training (OJT) as per NEP 2020

The three primary objectives for OJT according to the NEP include-

1. Bridging Skill Gaps- The NEP highlights that integrating vocational training with education is critical for addressing the skill gap in India (MHRD, 2020). OJT helps students acquire practical skills, making them more industry-ready.
2. Fostering Industry-Academia Collaboration- By emphasizing partnerships between educational institutions and industries, the NEP 2020 ensures that students gain exposure to real-world challenges and work environments. This collaboration enhances the overall quality of education and workforce development.
3. Enhancing Employability- Skill-based education, as proposed by NEP 2020, makes students more employable. Through OJT, students develop both technical expertise and workplace etiquette, equipping them for a competitive job market.

Benefits to Companies from On-the-Job Training (OJT)

Engaging students in OJT programs offers several advantages to companies. These benefits extend beyond corporate social responsibility, contributing directly to organizational growth and sustainability.

1. Access to a Cost-Effective Talent Pool- OJT programs allow companies to train and assess potential future employees. Companies can evaluate students’ capabilities, work ethic, and cultural fit without the long-term commitment of hiring outright. This reduces recruitment costs and ensures a better talent match.
2. Increased Productivity and Innovation- Fresh perspectives from students can lead to innovative ideas and solutions. Their enthusiasm and adaptability often bring new approaches to solving problems. Additionally, trained interns can contribute to ongoing projects, improving overall productivity.
3. Building a Skilled Workforce- Companies participating in OJT programs help build a skilled workforce aligned with industry demands. This reduces the need for extensive training after hiring, as students already possess practical experience.
4. Enhanced Employer Branding- Active involvement in training initiatives positions companies as forward-thinking and socially responsible. It enhances the company’s reputation among educational institutions, students, and the community, attracting top talent.
5. Long-Term ROI- Investing in OJT programs creates a pipeline of trained professionals who may become full-time employees. This ensures continuity and reduces turnover, leading to significant cost savings over time.
6. Contributing to National Development- By aligning with NEP’s vision, companies contribute to India’s broader goal of creating a skilled and employable workforce, fostering economic growth and societal progress.

What Companies Should Provide to Students During OJT?

To align with NEP 2020 guidelines and maximize the benefits of OJT, companies should provide a structured and supportive training environment. Here are key elements to focus on-

1. Structured Training Programs

Structured training programs form the backbone of successful on-the-job training. Companies should design a curriculum that is tailored to specific roles and industry needs, ensuring that students are gaining relevant skills. This includes-

• Providing clear learning objectives
• Engaging students in hands-on tasks
• Conducting regular performance evaluations to monitor their progress.

Aligning these training programs with academic goals and industry requirements ensures a seamless transition from theoretical learning to practical application, setting students up for success in their professional careers.

2. Mentorship and Guidance

A strong mentorship framework is essential for effective OJT. By assigning experienced professionals as mentors, companies can provide students with personalized guidance and support throughout the training period. This mentorship fosters a nurturing environment where students feel-

• Encouraged to ask questions
• Learn from their mistakes
• Develop a deeper understanding of the industry’s expectations

Mentors not only share their expertise but also offer valuable feedback, helping students improve their performance and build confidence.

3. Real-World Exposure

Real-world exposure is a critical element of OJT, as it allows students to directly apply their theoretical knowledge to practical scenarios. Involving students in live projects and tasks that simulate real-world challenges helps them develop problem-solving and critical-thinking skills. By contributing to meaningful work, students gain a sense of purpose and confidence in their abilities, while companies benefit from fresh perspectives and innovative approaches to their projects.

4. Focus on Holistic Development

To prepare students for the demands of the modern workplace, OJT should go beyond technical training and focus on holistic development. Soft skills such as communication, teamwork, time management, and professional etiquette are crucial for success in any professional setting. Offering workshops or dedicated sessions on these topics ensures that students are not only technically competent but also well-equipped to navigate workplace dynamics and collaborate effectively with peers and supervisors.

5. Recognition and Feedback Systems

Acknowledging the contributions of students through stipends or performance recognition is an important motivator. Offering monetary support and rewards for exceptional performance demonstrates the company’s commitment to valuing its trainees. Additionally, a robust feedback system is key to continuous improvement. Regular feedback helps students identify their strengths and areas for improvement, while open communication channels allow companies to-

• Address challenges
• Refine their training processes
• Ensure a mutually beneficial experience

Conclusion

On-the-job training is a cornerstone of the NEP’s vision to transform education and skill development in India. For companies, OJT offers a unique opportunity to engage with young talent, foster innovation, and build a sustainable workforce. By providing structured and meaningful training experiences, companies not only fulfill a social responsibility but also gain strategic advantages. Active industry-academia collaboration is essential for realizing the NEP’s vision and ensuring a skilled, job-ready workforce.

References

Ministry of Human Resource Development (MHRD). (2020). National Education Policy 2020. Government of India. Retrieved from https://www.education.gov.in

Confederation of Indian Industry (CII). (2021). Bridging the Skill Gap: Role of Industry in Education.

World Economic Forum. (2020). Future of Jobs Report.

National Skill Development Corporation (NSDC). (2020). Skill Development in India: Challenges and Solutions.