The pandemic led to the development of several B2C-focused brands serving a wide range of healthcare industry needs. However, none of them focused on the larger staffing issues faced by healthcare facilities.
India currently has 5.76 million health workers and there is a need for another 2.4 million. India’s healthcare sector is projected to grow at 30% CAGR by 2030 and create 40 million jobs. Nevertheless, the shortage is likely to increase to around 6 million skilled workers.
The cause of such a massive shortage is largely attributed to the unstructured and costly nature of the sector. Healthcare professionals are currently struggling with inflexibility that leads to burnout, lack of training, low pay and forced migration to Tier 1 cities. This has resulted in increased attribution of up to 40%. In fact, India currently has only 49% educated staff in its active workforce.
At the same time, healthcare institutions also face challenges in onboarding and retaining talent. This is largely due to the lack of flexible online platforms, high recruitment timeline of up to three months, lack of a thorough vetting process and skyrocketing training costs. In fact, all of these factors could result in fixed costs of up to 50% in HR alone.
Similarly, Mr. Avishek Agarwal, Co-Founder and CEO of Jobizo, India’s first healthcare HRtech platform for a flexible workforce, shares insights into revolutionizing the healthcare industry by providing on-demand, short-term employment solutions through the use of cutting-edge technology.
“With Jobizo, we streamline the entire process by offering a recruitment cycle of just 6 days, a 70% reduction in recruitment costs, easy access to training, and 100% verified professionals. Our goal is to become a market leader in this segment by continuing to offer healthcare professionals more flexibility in their choice of work days, a salary increase of up to 37%, and encouraging more professionals to join the active workforce.
“Even in the healthcare industry we see a lot of turnover with a churn rate of 40-50% per year. There is a demand for more customization and we want to revolutionize the recruitment, timeline and payment systems. We master the current challenges by offering the industry mobility, flexibility, technology, cost efficiency and scalability.”
Speaking of competition from traditional placement agencies, he says, “Most hospitals still use traditional placement agencies because they’re so easy. However, their methods are outdated, tedious and expensive. Therefore, at Jobizo, we offer digital solutions that would help the industry reinvent their hiring efforts by giving them access to our vast talent pool of verified professionals registered with us. More than 50 affiliated hospitals in places like Delhi, Bangalore, Hyderabad, Mumbai and Kolkata are currently benefiting from our services. In addition, we will have expanded our offering to other parts of the country by the end of the year.”
Since 2017, investor interest in HRTech verticals has increased. He shares his thoughts on this, adding: “Indeed, global VC deal activity in the industry has steadily increased, especially post COVID-19. In the second quarter of 2022, quarterly HRtech transaction value reached a record $4.3 billion globally. And we don’t expect it to slow down even with the looming recession, as healthcare is a less vulnerable industry to economic downturns.
When asked about the need to recruit permanent staff, who tend to be more cost-effective and efficient, he says, “Since we launched Jobizo in 2021, we’ve generated over 70,000 additional hours dedicated to patient care. We help employers save 30-50% on their fixed hiring costs because they can only hire on an on-demand basis.
All professionals have undergone a thorough background check. Only when they have met the specified requirements can they apply for various job offers on the platform. To further ensure service delivery, we have enabled features such as GPS, live tracking, and a rating system. If a candidate cancels a job offer three times in a row after completing the hiring process, they will be removed immediately.”
Starting his reflections on the long-term vision they want to achieve, Avishek says: “In the coming years, we expect healthcare to be redefined in terms of recruitment with innovative solutions. Not only would it allow healthcare facilities to save resources on onboarding new employees, but it would also lower their turnover rate.”
“We believe technological breakthroughs will continue to deliver new capabilities that will define the future of healthcare in India. Healthcare institutions must begin to adapt to these developments. We expect this growth and demand to continue in the future.”