At most retailers, when it comes to allocating training and development dollars, entry-level front-line workers—cashiers, cart pushers, and sales associates—typically have been ignored. While many large retailers have implemented development programs for new college graduates aspiring to be managers, front-line workers, typically with little or no education, are often an afterthought.

Walmart is changing that with the announcement of a test program called Pathways in its Joplin, Missouri, supercenter, which boasts 345 full- and part-time employees.

Walmart is hoping the investment in training front-line workers—a trend called upskilling—will yield results in the form of reduced turnover, increased sales, and better customer service. Estimates of employee turnover costs within the retail industry for front-line workers can be as much as $5,000 per employee, or 20% to 30% of worker salaries. According to one of its human resource executives, Walmart estimates savings into the “tens of millions of dollars” if it can slow down the number of front-line workers leaving the company.

The Pathways program includes six months of on-the-job training, using technology to deliver “game-like” simulations, drills, and instruction via computer modules, which the company hopes to convert to mobile apps for access on tablets and smart phones. After six months of on-the-job training, associates undergo an assessment.

Passing the evaluation opens more doors to higher-paying sales opportunities and even into management. Walmart recently awarded a $600,000 grant to UpSkill America, a nonprofit organization that provides education, training, and development to frontline workers so that they can progress in their careers.

Questions for Critical Thinking

1. Discuss Walmart's training program in light of research that shows that when companies invest in people they experience lower turnover and greater employee engagement. Discuss the benefits to shareholders, investors, employees, and customers.

2. For front-line workers who do not have the interest or resources to earn a four-year degree, discuss how training, particularly in advanced or specialized skills, can provide a potential career path. What impact will the shift in management's attitude toward front-line workers have on employee performance? On company revenues?