The skills-gap narrative is all too familiar. Employers continue to report that they can't find workers with the skills required for success on the job. It's becoming a refrain: "The jobs are there, but the skills are not."

At the same time, individuals struggle to understand the competencies that employers value most. Job seekers invest in educational programs only to be disappointed by their lack of currency in the labor market. As the labor market tightens, growing turnover rates only exacerbate the problem. And competition for talent leads to a zero-sum game that pits employers against one another—all of them looking for individuals who are already equipped with the skills they need.

It makes sense, of course, that employers would want to identify new hires who already have the skills to perform on Day One. But by focusing on the skills that individuals already have, employers may overlook the potential of new hires who can quickly upskill or reskill to meet the demands of a particular job. Employers are missing opportunities to build more diverse talent pipelines through the discovery of untapped talent in unconventional places.

The dream hire may be the one with years of relevant educational and on-the-job experience, but a "grow-your-own" approach can help employers draw on the potential of an expanded applicant pool.
 

Consider the case of Banfield Pet Hospital, the largest general veterinary practice in the world with more than 1,000 locations nationwide. In addition to veterinarians, licensed and trained veterinary technicians are critical to any veterinary hospital’s success. Due to increased competition for talent resulting in a supply shortage of licensed veterinary professionals, Banfield sought a solution to develop licensed veterinary technicians at scale that supported its learning culture and high standards for quality care. In 2013, Banfield began sponsoring a certification program for eligible associates through a third-party educational institution, in which more than 1,200 aspiring credentialed veterinary technicians are currently enrolled.

Research into the return on education investment is finally solving the so-called education-retention paradox, as employers increasingly recognize the value of on-the-job training. By hiring employees who don't yet have the skills to succeed, employers have a ready-made opportunity to invest in training—and, in doing so, build career pathways and drive retention. Employees who are certified in a level of moving truck rental company Penske's technician training programs, for instance, are 50 percent more likely to stay at the company; more than 60 percent of those who are certified received a promotion. Fifty percent of the graduates from the Church's Chicken Stride for Success high-school completion program have been promoted from entry-level positions into a manager or shift leader role. And the apprenticeship program at the electrical contracting firm A. West led to a more than 85 percent retention rate among workers who completed the program.

These learn-and-earn efforts are not just about retention but also about expanding the talent pipeline.