Upskilling provides minimum 18 times higher returns when compared with other asset classes like gold, mutual funds, and fixed deposits, according to the latest report released by edtech Great Learning titled, ‘Upskilling Financial Impact Report.’ An early investment in upskilling by professionals can help them reach their retirement corpus 10 years earlier than others who do not, it claims.
“Gold rates, mutual funds, and cryptocurrency markets are subject to market risks. Upskilling, on the other hand, is an investment immune to the highs and lows of market insecurities and guarantees to get professionals high returns on their knowledge capital,” states the report.
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If an individual invests Rs 2 lakhs in equity mutual funds, it will become Rs 6.2 lakhs in 10 years. However, if that same amount is invested in pursuing an upskilling course, that individual can earn Rs 1.1 core more in salary than if he/she does not upskill as mentioned earlier. So the return is 18 times higher than equity mutual funds, which is the highest yielding asset otherwise, claims the report.
Investing in new skills fast-tracks career growth and compounds salary, assuring bigger and better returns than traditional assets.
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For instance, a 25-year-old Software Engineer (from a tier 3 or 4 college), who on average earns Rs 5.1 LPA; post upskilling can earn up to Rs 10 LPA. The difference in salary every year would add up to 1.1 core in 10 years after considering the average annual increments and promotions cycle that is seen in the industry, claims the report.
According to the report, for both working professionals and recent graduates, upskilling can result in a significant increase in their annual salary.
The study compares the returns that working professionals can get from upskilling, based on salary and salary increment data derived from primary and secondary sources as compared to professionals who do not upskill.
Data from AON India’s Salary Increase Survey forecast an average salary increment of 9.4% this year. The same survey indicates that the average increment for digitally upskilled professionals will be 12.5%. In addition, the promotion cycle of an average professional is 4 years as compared to an upskilled professional who gets promoted every 3 years as per the same report.
Commenting on the report, Aparna Mahesh, Chief Marketing Officer, Great Learning said, “There is no doubt that upskilling oneself is one of the best investments professionals can make in today’s digital workplace. With this report, we have been able to quantify the financial impact of upskilling. People should make decisions about their careers and the skills required to succeed just like they would make financial investment-related decisions.”
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