1. Associates & Employees

When Retraining Employees Makes Better Sense Than Hiring New Ones

The Wall Street Journal has a story about how some retailers, faced with a shortage of employees with digital skills appropriate to doing business in 2021 and beyond, have decided that, rather than seeking out candidates for such jobs, it makes more sense to retrain existing employees with an interest in and aptitude for such roles.

Levi Strauss & Co., for example, has developed a “machine learning bootcamp, a new program designed to teach coding and statistical analysis to people who don’t have a statistics or coding background.

“Levi’s is confronting a problem faced by companies in a range of industries from finance to retail to technology. Many of their workers lack the necessary skills to address modern business challenges. For retailing, artificial intelligence and machine learning are playing an outsize role as more shopping shifts online.”

Other companies that have taken similar approach are the Choice Markets c-store chain and Verizon Communications.

The Journal draws the bottom line here: “McKinsey & Co. estimates that replacing an employee can cost 20% to 30% of an annual salary on average. By contrast, retraining an employee costs less than 10% of annual pay.”

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