Organizations may deal with changing jobs and job requirements by either retraining current employees or by replacing them. What are the strengths and weaknesses of each approach?

          Whether organizations take the approach of retraining current employees or the approach of replacing current employees with new employees, both have strengths and weaknesses. As for retraining current employees, it is cost-effective because current employees just need retraining; whereas, it would cost an organization more time and money to recruit and train new employees. Organizations have to spend more time and money for advertising, assessing new employees, and training these new employees. Even after advertising, assessments, and training new employees, they may not accept the job or may quit, and even fail at passing the assessments or training, which is time and money not well spent. Whereas, current employees have a proven track record with an organization and are unlikely to quit after retaining. Also an employee who has to go through retraining knows he or she is a valuable asset to an organization and may perform to the best of his or her abilities during and after retraining because of the confidence the organization has shown in him or her; instead of just firing him or her. Retraining current employees also allows an organization to hold onto to employees who are known to strive to meet organizational needs and goals, whereas organizations guess as to whether new employees are up to the task helping meet organizational needs and goals.

          However, new employees may strive harder to meet organizational needs and goals to maintain and foster his or her career. Hiring new employees can bring new skills sets to an organization. As well as younger employees who may have a higher degree of education and a better understanding of newer business tactics. New employees are new to an organization and may be less likely to feel burnt out, whereas current employees may have been at an organization for far too long. Newer employees may even strive harder to achieve such needs and goals. Whether an organization makes the decision to retrain or recruit new employees the decision has to be made and mistakes may be made regardless.