Companies Seek to Fill Skills Gap by Retraining Their Own Workers

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Companies in today’s tight labor market increasingly are trying to fill the skills gap by retraining their own employees

From left, Society for Human Resource Management Chief Executive Johnny C. Taylor Jr., International Business Machines CEO Ginni Rometty and Home Depot CEO Craig Menear chatted before an American Workforce Policy Advisory Board meeting at the White House on Wednesday. Photo: Mike Theiler/Zuma Press 10 Comments By Ezequiel Minaya Updated March 8, 2019 10:06 a.m. ET

Since the middle of 2017, finance executives have listed the limited availability of skilled talent as their top challenge, according to surveys by the Association of International Certified Professional Accountants. The Labor Department said Friday the unemployment rate fell two-tenths of a percentage point to a seasonally adjusted 3.8% in February. The rate has edged up since reaching a 49-year low of 3.7% in late 2018.

But the company knew that it couldn’t fill all those positions from the outside. So it decided to look internally. By the end of the month, Booz Allen expects to have provided data analytics and visualization training to about 1,000 employees already on the payroll. When unemployment is higher, companies are less inclined to splurge on employee training. “This is the first time I’ve seen CEOs not balk at all at spending tens of millions of dollars in training and retraining,” Mr. Taylor said. “In fact, they are coming to human resources and asking if they are spending enough.”

 

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What a novel idea!

Good ideas never die, they may go dormant waiting for favorable conditions to reemerge. Investing in your people is always a smart idea

I know a few companies doing this. What they really mean is they're hiring less to save money, merging departments, and one person starts doing two or three people's jobs.

Gee investing in employees. What a novel idea.

It's all supply and demand.

Trump was right, this will drive up wages!!

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