As per the latest report, ‘Upskilling Financial Impact Report’ released by Edtech Great Learning, upskilling offers a minimum of 18 times higher returns as compared to other asset classes like gold, mutual funds and fixed deposits. It claims that an early investment in upskilling by professionals can help them reach their retirement corpus 10 years earlier than other people.
“Gold rates, mutual funds and cryptocurrency markets are subject to market risks. Upskilling, on the other hand, is an investment immunity to the highs and lows of market insecurity and guarantees professionals a high return on their knowledge capital. is,” the report said.
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If a person invests Rs 2 lakh in equity mutual fund, it will become Rs 6.2 lakh in 10 years. However, if the same amount is invested in an upskilling course, the person can earn Rs 1.1 crore more in salary if he does not upskill as mentioned earlier. Hence the returns are 18 times higher than that of equity mutual funds, which are the highest yielding assets, as claimed in the report.
Investing in new skills leads to faster career growth and increased pay, ensuring bigger and better returns than traditional assets.
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For example, a 25-year-old software engineer (from a Tier 3 or 4 college), who earns an average LPA of 5.1; One can earn up to 10 LPA after upskilling. The report claimed that the difference in salary every year would be 1.1 crore over 10 years, after considering the average annual wage increase and promotion cycle seen in the industry.
According to the report, for both working professionals and recent graduates, upskilling can result in a significant increase in their annual salary.
This study compares the returns that working professionals can get from upskilling, based on salary and wage growth data from primary and secondary sources, compared to professionals who do not upskill.
The average wage growth this year is estimated at 9.4%, according to data from AON India’s wage growth survey. The same survey suggests that the average salary increase for digitally skilled professionals would be 12.5%. Furthermore, the promotion cycle of an average professional is 4 years as compared to a highly skilled professional who is promoted every 3 years according to the same report.
Commenting on the report, Aparna Mahesh, Chief Marketing Officer, Great Learning, said, “There is no doubt that today’s digital workplace is one of the best investments professionals can make. With this report, we are looking at upskilling People are able to measure the financial impact of their careers and the skills they need to be successful just as they make decisions related to financial investments.
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