Higher education needs a transformation. Rising tuition fees, rising student debt, and weakening confidence in the value of traditional degrees have made the industry poised for reinvention. Federally funded two- or four-year college degrees have been discussed as part of a new agenda to help increase educational opportunities. However, businesses also have unique opportunities to play a role in increasing equitable access to higher education; your businesses can benefit from this.
Corporate America spends more than $ 180 billion on employee education and training each year, but most business leaders have not achieved a significant return on investment. Conversely, most training programs are inconsistent with business and learning goals, such as addressing specific skills gaps or improving employee recruitment and retention.
When business education programs are combined with each other, employees can get life-changing opportunities without the barriers of traditional higher education, and the company can achieve its strategic business goals.
Most company-sponsored tuition and training assistance programs perform poorly
Of the billions of dollars spent on internal and external training programs each year, 28 billion U.S. dollars go to traditional tuition programs, which are usually used to solve employee recruitment and retention issues, But less than 2% of employees actually use them.
These procedures are outdated. According to a survey by InStride / Bain & Co., 80% of employees are interested in going to school while working, but only 40% of employees know that their employer provides a tuition assistance program. In addition to full-time professional responsibilities, navigating admissions and financial assistance is also quite difficult. In fact, respondents believe that filling out application forms, filling out financial aid forms, and finding transcripts are the most difficult obstacles to overcome, and most corporate human resources departments do not have the infrastructure to manage each employee-student journey.
Obstacles faced by employees will eventually become problems for the company, because the plan is severely underutilized, or employees simply choose to leave and seek required job benefits in other companies. How can organizations really use workforce education? The company should consider the following three points when developing training and education plans for its employees:
Organizations must consciously develop corporate education plans.
The business education plan must address the objectives of the organization. These opportunities should provide students with multiple options to advance their education, whether through degree programs, certificates, or certificates. By doing so, for every dollar your business spends, you can double your return on investment in terms of increased productivity, lower hiring costs, longer retention times, and increased brand recognition.
Project development must take into account the actual adult learning journey.
After working with more than 34,000 employee apprentices in the past two years, I learned that the decision to return to school was both emotional and logical. Students need help throughout the process, from the initial decision to potential entry barriers, and working with employers to determine a clear return on investment. The commitment to this support lifecycle starts at the top, and the touchpoints are updated through management, mentoring, and connections with strong company culture.
Companies must integrate business education programs with broader business culture.
Companies that combine educational programs with their culture provide employees with the professional meaning and employer relationships they desire. As reiterated in the 2020 Brandpie CEO Goals Report, this sense of purpose can be an important motivation for employees and leaders, helping to increase productivity and long-term relationships with employers. Receiving an education can provide employees seeking meaningful connections with their employers, and ultimately affect labor recruitment, retention, and training needs.
Employee education provides more than just better company performance. The opportunities created by investing in education in the workplace will have an impact on the lives of employees and on society as a whole. American Action Forum research broadly quantifies the impact of acquiring college degrees, showing that if the population with a bachelor’s degree in each state increases by 1% in the last decade, national economic growth will increase by approximately $ 130.5 billion.
A strategic approach to corporate education gives bold business leaders the opportunity to cultivate the workforce they need to succeed in the rapidly changing global economy, provide academic expertise to employees through quality universities around the world, and, most importantly, reducing dominance reduces debt. charge by fully subsidizing higher education.
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