How Companies Can Put Employees First With Education

All major businesses want to hire the best talent with excellent knowledge, skills and abilities. The concept of tossing out lack of educational qualifications such as a degree or certification, as long as an employee is hard working and does his or her job, is on its way out. Companies are looking for employees who are engaging, have pride in their company, and also have a strong sense of ownership. The emotional quotient is certainly becoming more important than the intelligence quotient of the employee, as that is what drives an outward mindset and passion to perform to one’s full potential. Thus, a number of companies are offering employees opportunities to enhance their knowledge and skills, by allowing them to pursue their ambition of acquiring undergraduate, as well as postgraduate degrees.

Data and statistics worldwide have shown that many employees did not get the opportunity to pursue their goals of education, and if an employer helps them to achieve the same, the employees get more emotionally attached to their organisation and perform to their optimum output level. It is a win-win situation both for the employer and the employee, since the companies get better skilled workers who can work their way up in the organisation. The employee’s engagement with the company also increases as the employee feels more valued. According to Hays Group, a large HR Consultancy Firm, the retention of an employee is critical to an organisation. If an organisation has to hire a new employee in place of someone who left with the same credentials and salary, then the cost of hiring the new employee increases by about 50%, because of the intangible factors of adjusting to the new environment, motivation, drive, time taken to complete jobs, etc. Thus, companies putting employees first with education definitely get a head start with employees’ commitment, engagement, and motivation to perform at higher levels, which eventually translates into the company’s profits.

Anthem, one of the largest insurance companies in the United States, has a company-wide program to help employees get a bachelor’s degree. Starbucks covers four years of tuition for its employees. Fiat Chrysler Automobiles have rolled out a college tuition program for their employees, and FEDEX reimburses its employees by helping them pursue a higher education program, such as an MBA. There are many companies realizing the benefits of teaming up with universities and colleges to enhance their employees’ skills, as they feel that by investing in their employees’ future through education, they get a well-oiled, energetic, happy, and an engaging worker. Companies feel that retaining current talent as well as attracting new talent are extremely important, and education benefits help in meeting both their objectives.

According to new research (Cigna study done by Lumina Foundation, founder of The Hechinger Report), health insurer Cigna saved $1.29 in reduced turnover and recruiting costs for every $1 spent on tuition reimbursement, giving a whopping 30% on savings, by just investing in employees through the medium of education. The survey also found that employees were 10% more likely to be promoted and made an average of 43% or more over three years, than colleagues who did not take advantage of this program. Many companies talk about employees being their biggest assets and how they would like to invest in their Human Resources. A good way of translating such objectives into action is by putting their employees first and helping them to fulfill their aspirations through good business education pedagogy.