Since the COVID-19 pandemic, employers, including their contact centers, have noticed significant shifts in the labor market.
• Unemployment has remained remarkably low.
• Hourly workers are getting harder to come by.
• Historic turnover rates, especially in frontline roles.
Despite these challenges, most companies still rely on transactional, one-size-fits-all training. Training that, to be honest, does the bare minimum. It’s designed to get employees to a base level of performance and then stop. It’s not built to inspire, retain, or grow talent.
That might have worked a decade ago. But it doesn’t anymore.
…turnover isn’t just a statistic. It’s expensive. Yet…many companies still treat turnover as a “cost of doing business.” That mindset must change.
Today’s hourly workers – especially Generation Z – are clear about what they want: growth, advancement, and opportunity. They hear about AI and they want to keep up. They see peers gaining new skills and they want in.
And they’re not willing to wait 12 months to start learning. That’s why 76% of hourly employees who leave, say, according to Harvard Business School research, they would have stayed if they just saw a path to advancement.
So how can companies meet this moment? How can they deliver training that actually improves retention and performance?
The Cost of Doing Nothing
First, let’s be clear about what’s at stake. The average annual employee turnover is 3.3% as of April 2025, according to the U.S. Bureau of Labor Statistics data.
But contact centers experience far higher annual turnover, anywhere from 60% to even 200% in some cases.
And turnover isn’t just a statistic. It’s expensive. “Gallup research shows replacing exiting workers costs one-half to two times the employee’s annual salary, “wrote Victoria Beverly in Tethr. “Assuming an average salary of $37,000, the cost of call center agent turnover translates to between $18,500 and $74,000 per employee.”
So, if you run a contact center with 1,000 employees and face even a 70% turnover rate, you could be spending millions annually in replacement costs.
Even worse, the hidden cost of turnover includes lower customer satisfaction, disengaged employees, and stalled internal promotions. All of this puts pressure on recruiting teams and diminishes organizational stability.
Yet despite these numbers, many companies still treat turnover as a “cost of doing business.” That mindset must change.
Workers Need a Clear Growth Path
Second, why are employees leaving? It’s not mystery.
According to the Harvard Business School, “Many low-wage workers would prefer to remain with their employers rather than move to a new company.” When asked what would induce them to stay, 62% indicated the prospect of upward mobility.
In other words, they don’t want to leave; they just want to grow.
But if your company can’t show them how that happens – if there’s no roadmap, no guidance, no support – they’ll assume the only way up is out.
So how do you show them a path to growth that feels real and attainable?
Enter: cohort-based learning.
What Is Cohort-Based Learning?
Cohort-based learning is a structured, time-bound model in which employees progress through a course or program as a group. It is designed around peer accountability, group milestones, coaching, and shared experiences: all of which significantly improve engagement and outcomes for learners.
…cohort-based learning offers measurable ROI. For employees, it offers hope.
This approach is especially powerful for frontline and hourly workers, many of whom may have struggled with traditional education or online, self-paced training.
Here’s why it works:
1. Builds confidence through community
Many frontline workers suffer from imposter syndrome – doubting their ability to succeed and/or their overall skill level – when returning to learning: especially if their past education experiences were negative. The cohort model surrounds them with peers in similar positions. That “we’re in this together” feeling is incredibly motivating.
2. Creates peer accountability
When learners know others are relying on them, they’re more likely to show up, contribute, and complete the program. Research cited in Lencioni’s Five Dysfunctions of a Team – originally from ASTD – found that individuals who commit goals to another person have only a 35% chance of follow-through. But that figure jumps to 65% with peer accountability.
3. Embeds coaching and support
Cohort models typically include real-time facilitators or coaches. These experts don’t just teach; they mentor, troubleshoot, and guide learners, making it easier for them to apply new skills to their daily work.
4. Offers structure with flexibility
While cohort programs are time-bound and have scheduled sessions, they often blend asynchronous content with live discussions or team-based projects. This hybrid model allows for deeper learning without overwhelming busy frontline employees.
Cohort-Based Learning Benefits
For companies, cohort-based learning offers measurable ROI. For employees, it offers hope.
- Higher retention. According to data from Guild Education, frontline employees who participate in cohort-based upskilling programs are 20%–40% more likely to remain employed in their current roles.
- Greater engagement. Workers who learn in a cohort feel supported, valued, and connected. They’re not just clocking in: they’re growing. And that sense of progress can be a major driver of loyalty.
- Better soft skills. Cohorts foster communication, adaptability, problem-solving, and leadership. These soft skills are crucial in high-pressure frontline environments, especially in customer service and contact centers.
- Improved customer experience (CX). The link is simple: when employees feel confident and capable, customers feel it. Studies, including one focused on contact centers at Comcast, show that better trained and more engaged frontline employees consistently deliver higher Net Promoter Scores (NPS) and fewer escalated calls.
Which Employers Have Cohort-Based Learning?
Major employers are already leading the way. Here are three examples:
1. Walmart’s Live Better U offers cohort-based training in healthcare, supply chain, and technology: helping frontline workers transition into high-demand roles.
2. Chipotle and Target have seen higher retention and internal promotion rates after investing in group-based learning programs.
3. CVS Health, through its partnership with my company, Escalate, piloted a cohort-based program for entry-level workers. It has achieved savings of $1 million for every 50 employees enrolled due to reduced turnover and faster advancement.
These companies aren’t just checking boxes. They’re building competitive advantage by turning turnover into talent pipelines.
Why Cohorts Work Especially Well in Contact Centers
Contact centers have all the ingredients that make cohort-based learning thrive:
- Large groups of entry-level employees starting at the same time.
- Clearly defined job progression ladders (Level 1 → Level 2 → Team Lead).
- High turnover that demands better retention strategies.
- Real-time feedback loops from customer interactions.
By implementing cohort-based learning, contact centers can shift their cultures from reactive to proactive: investing in employee development before burnout or boredom sets in.
Imagine this: instead of losing seven out of 10 new hires in the first year, what if five of those stayed, developed new skills, and took on leadership roles? That’s not just better for HR: it’s transformational for the business.
How to Get Started
You don’t need a massive budget or months of planning to get started. In fact, the most successful companies start small and scale smart.
Here are five quick tips:
1. Pilot a program with one team, region, or cohort of new hires
- Start with a high-turnover role and test the impact of learning in a group format.
2. Align training to real career pathways
- Make sure employees know exactly where the program leads, whether it’s a Level 2 role, a specialized function, or a supervisory position.
3. Utilize existing tuition assistance or training budgets
- Most companies already allocate funds for learning. Reallocating toward cohort models can multiply your impact.
4. Choose partners that specialize in frontline support
- Look for platforms or providers that understand the needs of hourly workers and design programs accordingly.
5. Measure retention, performance, and engagement
- Track the data from your cohort; it will likely speak for itself.
The Bottom Line
Cohort-based learning is more than a training model. It’s a retention strategy. A morale booster. A culture builder. And for frontline-heavy businesses, it may be one of the smartest investments you can make right now.
By implementing cohort-based learning, contact centers can shift their cultures from reactive to proactive: investing in employee development before burnout or boredom sets in.
Because in today’s labor market, you don’t win by hiring faster.
You win by keeping and growing the people you already have.