Retraining Workers as Jobs Evolve | Decision Making

Source: Pixabay

The Wall Street Journal published an interesting article today by Austen Hufford titled, “Companies Ramp Up Worker-Retraining Efforts.” Hufford explains that many firms are struggling to find good people given the very tight labor market. Moreover, many jobs have evolved due to technology innovation. Thus, companies have invested in new initiatives to retrain workers for their emerging needs. As an example, Louisiana-based Lamar Advertising is retraining workers accustomed to painting billboards to now repair digital billboards. These digital displays only account for a tiny fraction of the company’s billboards, yet they generate more than 20% of the firm’s billboard revenue.

How should firms think about launching worker-retraining initiaves? First, I think that companies have to recognize that these investments, while perhaps quite substantial, often pale in comparison to the alternative. Firms have to weigh the cost of retraining against the extraordinary expenses that they often must incur to recruit and onboard new talent. In high employee turnover situations, the recruiting and onboarding costs can be astronomical. Retraining often proves to be a worthwhile investment when judged in this way. Second, retraining efforts often yield other substantial benefits. For instance, organizations may find that employee engagement increases when people feel valued and have the opportunity to better themselves through retraining. Third, investing in internal retraining efforts enables companies to customize their worker training, development, and education to suit their organization’s specific needs. Finding talent from the outside often means that firms rely on training that is quite general and does not meet their particular needs. Finally, retraining efforts enable dedicated employees to share their newly developed skills with others. As people master new skills, they can become the trainers for the next group of workers who enter training programs. Sharing expertise in this manner often has two important benefits. It reinforces the skills that one has learned, while offering a tremendous sense of satisfaction and pride for workers.