When Rajasekhar Kaliki, former director of Google Technical Services, moved out of the corporate world and joined Kaivalya Education Foundation, a non-profit organisation working towards making education accessible to all, he was certainly not the odd one out in the new setting.

“Of the 20-member leadership team at the Foundation, at least 10 of them had left the corporate world to join the social impact sector,” says Rajasekhar.

Kaliki joined the Foundation as its chief technology officer. Similarly, all the others from the corporate sector filled specific roles that were in alignment with their core competencies. So, they were doing the same thing — only that the goalposts had shifted.

Professionals at the peak of their careers joining the social sector is the best thing that can happen to the sector. Not only because it gets the best possible talent, but because talent comes paired with zeal.

Kaliki says as a student, he saw his family struggle to pay his fees, and that there is a strong impetus within him to work in this area of the social sector.

There is a strong reason why the social sector needs more Kalikis.

Towards the end of 2019, Careers in Impact, an initiative of Sattva that recruits mid and senior talent for the social sector, did a study of positions lying vacant in the social sector. Their findings: 42% of jobs in the 5 to 10 years of work bracket were not taken, and it was 15% in the 10-20 year bracket.

Of the 609 social organisations listed with Arthan Careers, 70% struggle to fill the key mid and senior-level positions, says Satyam Vyas, founder and CEO of the technology-driven, socially responsible, human capital venture in the impact space.

“There are people who want to work in the social space but do not have the requisite skills. The challenge is to find people who are at the peak of their career and who also want to make a social impact,” says Srikrishna Sridhar Murthy, CEO, Sattva.

Increase in funding

On the positive side, social sector funding has increased by 11% in the last five years, as per Bain & Co Philanthropy Report. This increase has largely been fuelled by contribution from the government, followed by philanthropy.

Murthy says that with more funds coming into the sector, organisations need specialist skills.

Training programmes

With the aim of building talent for the social sector, India Leaders for Social Sector (ILSS) organises a nine-day residential programme for senior leaders from diverse backgrounds. Incubated by Central Square Foundation, it has 20-30 professionals in each batch.

“Sixty seven alumni from our first six batches are currently in the social sector. Of these, 45 are crossovers who did not previously have any exposure to the social sector, the remaining are leaders from the sector itself,” says Anu Prasad, founder-director, ILSS. Recently, ILSS completed its 7th programme.

Individuals in the age group of 40-45 years are in the majority. During the last batch, a bank sent its key CSR associate for the programme, says Anu.

Though there are transferable skills that will enable these professionals to shift to the social sector, there are certain nuances to working in the sector that they should understand, she adds. “We want them to transition for the right reason. So, we look for people who are committed, and want to contribute towards nation-building, and who are open to unlearning things and have the humility to see themselves as a student,” says Anu.

Lower salaries

Prahalathan KK, co-founder, Bhumi, a volunteer organisation, says that while making the switch, mid-level talent would like to see their pay maintained. “They need to understand that most non-profits cannot match the pay,” he says. Hiring managers point out that pay structures in the sector have certainly improved, but still one should be ready for a pay cut.

To get more mid-level talent to join the sector, Satyam Vyas feels funding organisations must invest in people. He says, as per reports, at least 13% of CSR funds are unspent. “Corporates can give funds for capacity-building programmes for non-profits. This will lead to more returns for the organisation.”

This article was originally published in The Hindu dated February 5, 2020. You can read the original article here.

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Last November, Ashutosh Tyagi, former executive vice-president at Tata Capital Private Equity, took over as head of the $1 billion India Education Outcome Fund at the India chapter of non-for-profit enterprise Social Finance. For the 44-year-old, the move came after nearly two decades at the Tata Group, working across various geographies and functions like beverages, apparel, watches and telecom.

Moving into the social sector while in the middle of a high-flying corporate career may sound unusual for many, but Tyagi doesn’t think so. His investment management experience — first at the Tata Group holding company and then in their private equity practice — has married well with his interest in education. “Being a CEO wasn’t my driver. It was the work rather than the position that mattered,” says Tyagi, whose work now involves delivering on learning outcomes focused on government and affordable schools across India.

He says he brings in a problem-solving attitude to social issues rather than just a bleeding heart. “With my education, my corporate experience, if I can bring about a new perspective, that is where I see myself adding value,” says Tyagi.

Tyagi is one among a growing band of corporate honchos who, having enjoyed success in their corporate careers, are now taking up roles in the social sector for high-impact work that makes a difference to the larger population.

Tata Trusts, India’s largest charitable group, says it has seen that senior practitioners from the corporate sector are increasingly open to opportunities in the social sector. In the recent past, senior professionals from banking, finance, hospitality, telecom and infrastructure have joined the Trusts for roles in general management, impact assessment, finance, treasury and technology. In the last two years, at least seven senior professionals have come from such sectors.

At not-for-profit Akshaya Patra Foundation, Shubha Goel, director-HR, says that 30% of the overall hires last year have been from corporates. The entire senior management at Akshaya Patra is from corporate backgrounds. And, in the last year, it has added three more: Suju Datta, director of quality and food safety; Radhakrishnan Seetharaman, director – internal audit; and Pritam Shetty – head of compliance.

“We are seeing a surge in the applications from corporate people. For them, it’s about purpose, meaning and a missionary mindset,” says Goel.

Why does the social sector want talent?

According to the recent Bain & Co India Philanthropy Report, social sector funding has grown at a rate of 11% over the past five years. While the government continues to be the largest contributor to social sector funding in India, private philanthropy is growing and has outpaced public funding growth.

In 2017-18, spending on corporate social responsibility projects increased 11% to Rs 10,030 crore, according to an analysis of 1,080 of 1,795 companies listed on the National Stock Exchange by PRIME Database Group.

“Hand-in-hand with the revenue pool/grant money going up, there is expectation from more sophisticated funders who are demanding organisational capabilities, systems and processes and outcome metrics. This means if you really want to scale, you need a second line of leadership,” says Ashish Dhawan, founder-chairman of the Central Square Foundation.

There’s also a quest for meaning. “Younger people have more of a social conscience and want to do more meaningful work. Unlike earlier, when the odd IIM guy got frustrated and stumbled into such a job, increasingly people are now taking it up as another pathway going forward,” says Dhawan.

Talent being trained

Despite demand, the sector still suffers from a lack of leadership talent. Stepping in are organisations such as ILSS (India Leaders for Social Sector), which runs the ILSS Leadership programme, a nine-day residential course designed to empower talent from diverse backgrounds to play leadership roles in the development sector. The programme has seen participation from more than 85 leaders from 22 industries.

Alumni include Prashant Singh, director of coordination and strategy at PHFI (Public Health Foundation of India) and Vyjayanthi Mala, leader of Open Data Judicial Platform at VAYAM.

“If you look at the social sector, there are only a handful of Rs 100 crore-plus organisations. There is huge scope to scale but it requires certain systems and organisational skills,” says Anu Prasad, founder of ILSS. She says they get a lot of senior professionals including CXOs who have a nest egg put away and are now looking for meaning and purpose.

You can do good if you’ve done well

While the sector has now started paying more, corporate professionals still need to take a hefty pay cut while making a transition. Indian NGOs can pay anywhere between Rs 25 lakh and Rs 50 lakh at the senior-most level, depending on size and funding, while foreign organisations pay more.

“Some leaders would take a normal pay cut of 40-50%,” says Prasad.

But increasingly, people are still willing to take the plunge. “My compensation is much lower now. But I have a certain amount in the bank and there’s comfort in taking the cut. You can do good if you’ve done well,” says Tyagi, who is also an ILSS alumnus.

“Am I being able to be part of something which changes the world around me? Love for the world around is critical if you’re exploring the social sector,” he says.

This article was originally published in The Economic Times. The link to the original article is here.

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Amit Chandra, Chairman at Bain Capital India, is a leading Indian philanthropist and a founder/board member of Ashoka University and a board member of Give India and The Akanksha Foundation, among his other associations with non-profits and foundations. Archana Chandra is the CEO of Jai Vakeel Foundation & Research Centre, one of the largest NGOs serving intellectually challenged children. The Chandras featured in the Forbes ‘Asia’s Heroes of Philanthropy’ list in 2016.

ILSS, incubated by the Ashish Dhawan-founded Central Square Foundation in September 2017, specifically focuses on enabling senior corporate executives to transition to the social sector in order to enhance the diversity of talent and skills in the sector.

“ILSS currently offers a pioneering nine-day leadership program for leaders from various backgrounds, particularly from corporates, who are looking for careers with social purpose. We also offer post-program support in terms of placement, mentoring and coaching  as our alumni embark on their journey to the social sector,” says Anu Prasad, founder of ILSS.  “The grant from A.T.E. Chandra Foundation will allow us to invest in our organisational capacity which, in turn, will  help us strengthen our program and post-program offering and build a strong pipeline of change leaders.”

“The A.T.E. Chandra Foundation is privileged to support ILSS, given its focus on enabling high quality talent movement from the corporate world into the social sector is core to our own focus of capacity building in it,” says Amit Chandra, Chairman of Bain Capital’s India office. 

ATECF supports various projects and initiatives in two core verticals: rural transformation and sector capacity building. The Foundation works closely with leading Indian and global players in the social sector to create a more equitable, inclusive and sustainable society. The grant for ILSS is in line with the Foundation’s ‘systemic capacity building’ efforts to help create leaders for the social sector.

ILSS has so far conducted five editions of its nine-day leadership program, with 85 leaders from areas such as media, banking, fintech, advertising and telecom, and companies such as IBM, Standard Chartered Bank, American Express, Tata group, Airtel and Star TV participating in the residential program held at Ashoka University. ILSS alumni are today in leadership roles in leading organisations such as Public Health Foundation of India, Kaivalya Education Foundation, Educate Girls, Ashoka University, and Central Square Foundation.

About Amit Chandra:   Amit Chandra joined Bain Capital as Managing Director in early 2008 and is part of the company’s leadership team in Asia. He is the founder of Bain’s Mumbai office and is currently Chairman of the company’s India office.

He was named a Young Global Leader by the World Economic Forum in 2007. He is or has been associated as a Trustee of the Tata Trusts, as a Founder/Board Member of Ashoka University, a Board Member of Give India (India’s leading philanthropic exchange) and The Akanksha Foundation. He also a Member of the Advisory Boards of Bridgespan in India, the Centre for Social Impact & Philanthropy, and Swades Foundation.

Prior to joining Bain Capital, Amit spent most of his professional career at DSP Merrill Lynch, a leading investment bank in India. At the firm, he had direct oversight of its Global Markets & Investment Banking business, which included the firm’s substantial principal investment businesses. He retired from DSP Merrill Lynch in 2007 as its Board Member & Managing Director, to move to Private Equity.

He received his undergraduate degree in Electrical Engineering from VJTI, Bombay University, post which he worked at India’s leading engineering & construction firm, Larsen & Toubro. He then received his MBA from Boston College and was awarded the school’s Distinguished Alumni in 2007.

About Archana Chandra: Archana Chandra is the CEO of Jai Vakeel Foundation & Research Centre, which is one of the largest NGOs serving intellectually challenged children. She serves as the Trustee of SRCC, which in collaboration with NH, has built one of the largest paediatric hospitals in the country. She is also on the Advisory Board of Annamrita (part of the ISKCON Food Relief Foundation) and Antarang Foundation.

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