The Hustle

Corporations are running out of talent — and reskilling programs are stepping in

Corporations are running short on digital talent… so they are rolling in-house academies and subsidizing education programs to fill the gap.

May 18, 2021

You know labor markets are tight when companies start bumping minimum wages.

And there’s been a string of announcements in recent weeks:

Separately, Uber reports that the median hourly wage for its drivers in several major cities has topped $30.

The improved offers are only for entry-level roles, though

Per The Wall Street Journal, retailers across America are facing shortages of digital skills (e.g., data analysis, engineers).

Finding talent is hard enough, so many companies are looking to reskill internally.

The move makes economic sense: McKinsey, a consultancy, estimates that replacing an employee costs 20%-30% of the annual salary, while retraining an existing employee costs <10% of their annual pay.

Reskilling can take many forms:

With 342k more retail job openings in March (vs. last year) — the 2nd-highest figure over the past decade — expect more pay bumps and reskilling news to come.

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