Title: Companies Seek to Fill Skills Gap by Retraining Their Own Workers
Link: https://www.wsj.com/articles/companies-seek-to-fill-skills-gap-by-retraining-their-own-workers-11552041000
Time published: March 8, 2019 10:06 a.m. ET
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Analysis: It is currently observed and stated that the unemployment rate in the labor market is low therefore the cost of additional labor in a firm will be expensive. Essentially, the article is stressing that the labor market is tight and one way for firms to minimize cost expenses, is to train their existing employees. I chose this article because I thought it was interesting to read how chief executive officers are slowly realizing that it is important for employees to have the necessary tools they need to sell goods to customers because how you treat your employees determine a company's level of success. For instance, if employees are treated with respect the same respect will be passed on to customers. This article relates to our class because, in chapter 3, we discussed how company resources may limit the search for opportunities. In other words, since the company is not fully making use of their resources, output can be impacted. The resources discussed in this article is human resources or knowledge of people at a company. Because the use of advanced technology and digital platforms is increasing therefore creating a decrease in human resources, companies have to take the time to train their employees. The article mentions that companies are determined more than ever to train their staff. Also, the American Workforce Policy Advisory Board have gathered to discuss the process of how workers can be trained better. The issue is that the demand for skills has been pretty low over the years but because there is a competition between technology and the workers, workers are suffering and falling behind. According to an SHRM survey, fields such as engineering, data analysis, and carpentry demand the most amount of technical skills. Booz Allen Hamilton Inc. for example that uses data scientists on a daily basis wanted to add 5,000 workers to the team but decided to train the 1,000 workers they already had. The CEO believed it was necessary to focus on their existing employees which is very similar to what the Chief Financial Officer, Devina Rankin said. She said that “the tight labor market, for us, means that we are recognizing the strategic value of people as a business imperative” (qtd. in Minaya 3). I believe overall the article is trying to emphasize how it is difficult for companies to persuade outside workers to join them because of the tight labor market so it is advised that top management mend the skills gap. When employment is low, wages increase as well which is something that companies are also considering which is why it is hard to employ new people.
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Yeye, great choice, I selected this article in the past weeks and I also found it interesting. To add to your analysis, it is important for students to understand the changes "management" is taking. That way we can adapt and become the ideal candidate.
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