How Samsung is Addressing the Talent Deficiency in the Tech Industry

‘Talent’: some are born with it, but most often it needs to be developed. A talented workforce is considered the single-most important factor for a society to flourish, and it is education that so often nurtures talent. Without relying on exaggeration for dramatic effect, we mean it when we say that “we” as a civilization have a problem.

Why Responsibility is also Inevitability for Tech Companies

While many societies have been benefiting from the evolution of technology, the educational infrastructure & superstructure have not able to keep up with the pace of technological evolution.

This creates two major problems. First, there is an inevitable shortage of qualified technicians in the industry. Secondly, and as a direct result, a lack of talent in the workforce makes companies and industry uncompetitive; which in turn can also contribute to the higher unemployment rate of a society. For example, there are approximately 5.6 million young people in Europe who are unemployed; youth unemployment consists of 25% of the total unemployment. However, as 900,000 ICT (Information and Communications Technologies) jobs are projected to be unfilled by 2015, it is estimated that 1/3 of European companies are in need of more young people with technical skills.* This is exactly why organizations/people who contribute to technological growth also have some responsibility to sustain it.

So, what is Samsung, one of the world’s largest information technology companies, doing?

‘Tech Institute’ addresses the deficiency of technical talents

Samsung has established the Tech Institute, a global initiative to increase the number and quality of technicians, address the deficiency of technical talents and, ultimately, meet market employment needs.

The details of the program vary depending on the implemented country/region, but generally, the program runs for 8.5 months, or 204 class hours. The curriculum covers a range of skills, from basics such as math and other proficiencies, to production-based topics, such as Control/Automation, Telecom, Process Management, Electronics, and Material Management. It will also cover Samsung –specific material, such as Samsung’s products, services, project management, and leadership. Anyone from technical students to unemployed technicians of various ages (less than 16 to 40+) can apply to Tech Institute. Depending on the age, financial support, internships, and fulltime opportunities will be provided, along with the opportunity to learn and apply tech expertise.

‘Tech Institute’ is a Globalized, Localized, and Customized Initiative

As long as the country’s need and Samsung’s capability aligns, the Tech institute has the potential to meet important employment needs and contribute to that country’s economic growth, which is the ultimate goal of the Tech Institute.

The Tech Institute is a fairly new initiative, so it has not yet been able to calculate the exact economic benefit. However, as of June 2014, it has been successfully implemented 67 programs and facilities across 34 different countries since 2011. Moreover, total of 180 programs and facilities are scheduled to be implemented by the end of the year; including the 148 new projects in 2014. (Samsung Tomorrow recently covered the announcement of the program in Mexico.)

 ▲A Total of 180 programs and facilities are scheduled to be implemented by the end of the year across broad regions of Africa, Middle East, Southeast Asia and Europe.

For example, Japan has suffered high youth unemployment for 20+ years. To ease the rate, Japan has set ‘developing IT talents’ as one of its top priorities. Samsung jumped in and launched the Tech Institute in Japan. Samsung noticed that Japan has seen significant increase in demand for application development, but lacks the infrastructure that can develop these talents.

Collaborating with Waseda University (Student management program) and ASCII Research Laboratories (Content Creation), Samsung Tech Institute (Project Management, Tech Experts) in Japan developed programs that focused on developing ‘App Developers’ for 16 + high school / university students and adults. The government is also taking part and managing a certification program for program graduates. The reaction to the Tech Institute has been overwhelming, and Tech Institute can only accept 19% of the total applicants.

‘Tech Institute’ is a Large Scale Initiative

Tech Institute is a long-term program with a clear economic benefit. Therefore, everything from planning to implementation to management needs to be precise and effective. Samsung has collaborated with schools, HR Agencies, and governments to develop a solution that is beneficial for everyone. Just some of the goals that hope to be reached are work force enhancement, employment improvement, and increasing awareness for technology and education.

Overall, the objective of Samsung Tech is clear: to expand and improve the quantity and quality of technicians to increase the number of people with jobs after graduation. From planning and implementing to management, Samsung is carefully collaborating with stakeholders, government, partners, and students so that everyone can benefit from the program. The need for expertise might vary depending on the country or market situation, but with Samsung’s experience and expertise in technology, it can help meet its need and contribute to national growth. Samsung Tech Institute shows Samsung’s willingness to be a responsible player in society and its ability to find a mutually beneficial solution.

*Education to Employment: Getting Europe’s Youth into Work by McKinsey&Company [Jan. 2014]

http://mckinseyonsociety.com/downloads/reports/Education/A4E2e_DOWNLOAD_BOOK_FINAL.pdf