Learning Accounts for More Than 50 to 60% of Our Overall Budget: Saurabh Deep Singla, upGrad

In a dynamic and rapidly evolving education landscape, EdTech companies are at the forefront of revolutionising learning and professional development. With advancements in technology and the increasing demand for flexible and accessible education, these platforms have emerged as valuable resources for learners of all backgrounds. In this Q&A, Saurabh Deep Singla, CHRO, upGrad, provides valuable insights into the challenges and opportunities that lie within the sector.

How does upGrad categorise its business offerings?

We can divide our offerings into three core pillars: career skilling for formal education, transnational education, and workforce development. In career skilling, we offer degrees, postgraduate courses, and programmes for working professionals. In transnational education, we provide study abroad opportunities through global study partners. And in workforce development, we focus on bridging the skill gap and offering placement services. We also have offline universities like Atlas and medical colleges in Vanuatu, with more to come. At upGrad, we have a workforce of 9,100 employees. Alongside this, we have an impressive learner base of 10 million enrolled with us. The majority of our learners are working professionals. One key element that sets us apart is our panel of over 5,500 mentors and coaches, contributing to an outstanding 85% course completion rate. This completion rate is remarkable in the education industry and reflects the satisfaction of our learners.

Additionally, we have achieved a repeat rate of over 35%, indicating that learners are returning and referring others based on the quality of our pedagogy, content, and delivery. This high level of learner engagement underscores our commitment to delivering tangible outcomes.

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Are the 5,500 mentors part of the 9,100 employees?

No, the mentors are not counted among those 9,100 employees. They are experienced individuals who may have retired or work from home. They have been handpicked for their expertise and passion for helping learners succeed. However, we do have employees who manage the mentorship program in the backend.

How many of these tech professionals are part of the course development? And is there a WFH model in place?

Out of the 9,100 employees, around 55% are in counselling and admissions. These individuals help learners find the right courses based on their needs. Another 27% are part of the learning experience team, which creates and delivers content, engages with mentors and coaches, and ensures high success rates. Around 11% of the company is dedicated to product and technology, focusing on developing tech solutions for learners. Additionally, there are around 7-8% of employees in enabling functions such as HR, finance, legal, compliance, and admin.

We believe in working from the office and have created a positive work environment for our employees. At One UpGrad (all merged units), we have prioritised creating a positive work environment in which coming to the office is not seen as a punishment. We have invested in spacious and well-equipped offices that foster collaboration and problem-solving. While some roles, such as mentors and coaches, have the flexibility to work remotely, most of our team works together in the office, creating a strong and cohesive unit. We believe in the power of face-to-face interactions and have conducted 25 town halls in the past 45 days, with only a few held online. By bringing our talent together in the office, we encourage learning from one another and believe it leads to better outcomes.

We emphasise that a nine-to-six job may not be suitable for this industry. Instead, we encourage employees to find balance in their love for learning and the enjoyment they derive from their work. We don’t promise work-life balance in the standard sense, but we provide a meaningful career that aligns with our mission to deliver affordable and quality education.

What strategies does upGrad employ to maintain and encourage its workforce?

We foster diversity, not just in gender – with 47% of our group being female – but also in thought. Our use of HR technology differentiates us, and we have made our employees shareholders through one of the country’s largest ESOP pools, enhancing the sense of ownership. Besides, our appraisal system rewards high performers with above-average increments (an average of 9.6% last year, higher than the national average). We also invest in continuous learning and development, with a range of training programmes and education assistance policies offering up to 100% scholarships for our colleagues and their families. This combined approach ensures we retain top talent while also preparing our workforce for the future.

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Could you share any trends in the courses your employees are taking and their skilling requirements for managerial and tech roles? 

When it comes to our employees’ learning preferences, we have noticed a rising interest in tech courses and short-term boot camps, as well as an increase in participation in doctorate programs like DBA, which demonstrate their commitment to continuous self-improvement. Additionally, our employees are eagerly exploring courses offered by Harappa Education, particularly in the realm of developing five essential skills: Thinking Critically; Reasoning Logically; Learning Expertly; Unleashing Creativity and Decoding Others.

Looking ahead, we are excited to introduce generative AI courses, anticipating strong demand for this cutting-edge field. Furthermore, our first-time manager programme has experienced exceptional uptake, with managers from across the organisation enrolling in it. 

Can you share insights on how investing in learning and development (L&D) can contribute to employee retention and career prospects?

Post-COVID, there have been changes in people’s perspectives. It’s natural for individuals to seek new opportunities and to prioritise their work-life balance. At the same time, at upGrad, we acknowledge that the education industry requires dedication and passion to bring about positive changes. We emphasise that a nine-to-six job may not be suitable for this industry. Instead, we encourage employees to find balance in their love for learning and the enjoyment they derive from their work. We don’t promise work-life balance in the standard sense, but we provide a meaningful career that aligns with our mission to deliver affordable and quality education.

During our interview process, we make it clear that there may be occasions when you’ll need to put in extra effort and work long hours. It is important to understand that this is an outcome-based approach. It’s similar to the concept of sharpening your axe 80% of the time so that you can efficiently cut down the tree in the remaining 20%. We encourage continuous self-improvement and upgrading of skills, so you can perform at your best and not be overly concerned about rigid timings.

As an education company, can you identify other segments or industries that have shown more traction in terms of demand for courses and upskilling?

Within the EdTech industry, we have observed an increasing variety of course options. The disruption caused by the pandemic has impacted the K-12 sector. At upGrad, we have been hiring candidates from various backgrounds, including non-EdTech professionals who, then, later, transition into the EdTech space.

With the current economic downturn, we have observed an interesting trend in the EdTech industry. As the economy faces challenges, the demand for upskilling and learning opportunities actually increases. This is because individuals recognise the need to adapt and disrupt themselves in order to stay relevant in the evolving job market. It’s not just limited to tech-related roles; even professionals in non-tech domains are seeking courses to acquire essential technology skills. While it may sound like a broad statement, I believe the courses sector remains highly sought-after.

I made a significant shift in our talent acquisition strategy, opting to hire individuals from non-EdTech backgrounds and blending their skills with our existing workforce. The scarcity of available talent within the EdTech sector has necessitated this approach.

With reference to your M&A activities and the talent you’ve acquired, what would be the proportion of organic talent growth versus inorganic talent acquisition? What was the approach used to integrate this talent?

We have implemented a comprehensive competence framework that is actively being put into practice. This framework ensures that our existing employees are upskilled and upgraded, with a specific focus on the top 200 individuals within the company who are directly under One upGrad. We collaborate closely with the P&L heads and founders of the merged companies with an eye on their well-being and career prospects for the future. For the top 200 employees, we have introduced a leadership boot camp to further enhance their skills and capabilities.

In terms of our hiring process, we have established assessment centres to ensure that all new recruits go through a standardised evaluation process. This enables us to attract and onboard top talent across the organisation. We firmly believe in maintaining consistency in our talent acquisition approach.

As for our organisational structure, we have moved away from a hub-and-spoke model. Instead, each of our units operates autonomously with full empowerment. We provide them with the necessary tools, technology, and processes to effectively manage their talent. Rather than attempting to control every individual at the granular level, our focus is on empowering the business leaders of each unit. They have the authority to make decisions, and we trust their judgement. While they maintain their independent HR units, all our units are interconnected and aligned under the umbrella of One upGrad. This ensures a unified approach with a human-centric focus, considering context and intent rather than relying solely on robotic processes.

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With a significant investment in learning and development, what portion of your HR budget is allocated to L&D initiatives?

Learning is now the biggest portion of our budget, reflecting the comprehensive programs we have curated across all levels. From a financial standpoint, it accounts for more than 50% to 60% of our overall budget, excluding hiring and HR tools, which have their own allocation. As a learning company, we have the advantage of not having to ‘buy learning’. In fact, our learning initiatives generate revenue for our own companies. We invest significant resources in providing learning opportunities for everyone within our organisation. We are confident that we have the necessary expertise and resources in-house, and therefore, we do not need to seek external training programmes. If a specific need arises, we have the capability to develop and build the required programmes ourselves. This commitment aligns with our goal of self-sufficiency and leveraging the collective knowledge and skills within upGrad.

When it comes to talent development, what is your perspective on the buy versus build approach?

The ‘buy’ approach is not viable for our industry, given its relatively young age of just seven years. Such experiments have proven ineffective in this particular industry. That is why I made a significant shift in our talent acquisition strategy, opting to hire individuals from non-EdTech backgrounds and blending their skills with our existing workforce. The scarcity of available talent within the EdTech sector has necessitated this approach. While we have successfully nurtured and developed our staff, from admission counsellors to associate directors, these individuals have required substantial investment in terms of learning and development.

Unfortunately, there is a lack of readily available talent outside of our organisation. Achieving a diverse workforce, with a balance of 50-50 or even greater representation across various levels, has been challenging due to the scarcity of diverse talent at each level. As a result, building talent internally becomes the imperative choice. Just as a business needs sustainable growth through repeat customers and referrals rather than relying solely on leads from online platforms, building a strong talent pool is essential for the long-term success and sustainability of a company. While acquisitions may still be considered, they should never overshadow the importance of building talent organically.