What is NAPS and How Can Businesses Benefit from it?

What is NAPS?

The National Policy on Skill Development and Entrepreneurship, 2015 focuses on Apprenticeship as one of the key components of creating a skilled workforce in India. This Apprenticeship program can play a significant role in focusing on the on-the-job- training, where young people can learn skills by working in an organization while also receiving financial support of a stipend. Apprenticeship is regarded as the most effective way to learn skills and get money while doing so. The Apprenticeship Act of 1961 and the Apprenticeship Rule of 1992 were enacted to meet the demand for a skilled workforce, promote industrial growth, and provide experiential learning opportunities to youth.

The National Apprenticeship Promotion Scheme (NAPS) seeks to encourage apprenticeship training throughout the nation by offering a partial stipend under the Apprenticeship Act of 1961, undertaking capacity building of the apprentice ecosystem, and supporting stakeholders in their advocacy efforts. Individuals who have participated in short-term skill training programs run by the Central and State governments get a chance to upgrade their skill set through NAPS.

Why is NAPS important for industries?

Implementing the National Apprentice Promotion Scheme (NAPS) is mandatory for all employers in India across industries with 30 or more employees.

The NAPS for industries offers numerous important advantages.

Helps industries to build a talent pipeline

It allows companies to hire apprentices, who can make up 2.5% to 15% of their whole workforce, including contract employees. This helps industries in assembling a skilled workforce that meets their recruitment. This covers apprentices aged 18 and above, even during normal working hours and night shifts.

Covered under CSR

Any additional money spent on hiring apprentices can go towards Corporate Social Responsibility (CSR) initiatives.

Cost-saving

The apprenticeship training encourages the development of industry-ready professionals at an optimal cost, free from stipend deductions and employer mandate payments. The apprenticeship process is further streamlined by its exemptions from labour and employment rules. Apprentices under NAPS are not allowed to take part in any union activities, which promotes a focused learning environment.

Diversified talent pool

Industries can build a diversified team by deploying candidates with various educational backgrounds, including IT, BA, B.Com, B.Sc, and Diploma, and also people who have completed their short-term certificate courses. NAPS extends apprenticeship to non-technical sectors, going beyond typical engineering employment.

Reduced recruitment costs

Notably, when an apprentice completes training, employers are not required to hire them. Having this flexibility, industries can create and administer unique apprenticeship programs, which will help them increase their pool of trained labour that aligns with their corporate culture. This results in a workforce that is more loyal and it reduces the recruitment costs.

Future Outlook of NAPS

In the long run, the National Apprenticeship Promotion Scheme (NAPS) has a lot of potential to help India’s evolving workforce landscape. As industries continue to advance technologically, NAPS provides training programs to the apprentices ensuring they are equipped with cutting-edge skills. The government’s proactive engagement in providing new programs and incentives is intended to boost the efficacy of NAPS, in anticipation of the dynamic employment market. Additionally, offering incentives for industries, especially small and medium-sized enterprises, are key strategies that could push NAPS towards shaping a more skilled, competitive, and globally aware workforce for the future.

We, at buzzworks offer end-to-end NAPS implementation solutions. This includes not only analysing skill gaps but also streamlining the apprenticeship recruitment process and administering stipend with payroll flexibility. Our customised solutions seamlessly complement existing workflow to enhance the efficiency of NAPS for both the employers and the apprentice. buzzworks fosters a symbiotic connection with NAPS, providing an additional layer of support that guarantees the latter’s success and further development.

buzzworks is an empanelled TPA to implement NAPS. To know more about implementing NAPS in your organisation, contact us