Employer-Paid Education a Neglected Training Tool - Charlotte Business Journal: March, 2008

Article by E. Scott Golden Partner, Leadership Development Resources
Co-authored by Danielle Burns

March 14, 2008 - Charlotte Business Journal

More than just a good thing, it is now strategically critical for companies to invest resources in the advancement and development of high performing employees.

Perhaps the most underutilized resource for employee development is company funded education. In many industries, such as high tech, where 94% of companies provide tuition reimbursement, it is already de rigueur to offer employees advanced educational support. In other industries it has become a competitive necessity for those who want to compete during the transition from a baby boomer-based workforce to next generation leadership.

In the contest for star employees, there is simply not enough new talent to meet organizational demand. For this reason, it is imperative for companies to not only attract top talent, but to retain and develop the talent they have, doing everything within their means to keep their best people growing and engaged.

This practice should be precedent, but unfortunately recent surveys indicate that only 29% of employees feel that their organization adequately address their career development needs.

It should be easy to interest high performing individuals in the advancement of their education. Strategically minded employees, who are concerned with furthering their careers, will readily grasp opportunities to develop their skills and abilities. Company funded education and training is, after all, one of the most valuable long term benefits offered to employees. Data from the U.S. Census clearly indicates that educational attainment, on average, pays off big time in career advancement opportunities and increased compensation. It is also important to note that education is the only company benefit that employees receive that can never be used up or taken away. If you are a high performing employee, taking advantage of education should be a "no-brainer!"

From a managerial perspective, the decision to support your high performer's interest in education should also be relatively clear. Involvement in education encourages employee growth and introduces the potential for improved productivity. It also keeps top talent on board for a prolonged period of time.

To optimize the payoff of educational investments, management should be actively involved in the employee's learning process. The manager should help the employee understand how the course of study aligns with the company's business model and goals. As part of their ongoing dialogue, the manager and employee may also need to reshape job performance expectations, considering the extra demands placed on the employee by educational involvement.

Once the employee begins a course of study, whether it is at an undergraduate or graduate level, the manager should remain very interested in the employee's educational goals and performance. Managers do not need to become involved in the selection of courses; however, they should be aware of the employee's current coursework and actively coach the student on the relevance of these courses to current and future responsibilities, as well as other areas of the organization.

As part of this integrated learning process, the manager should also ask to review key student produced reports. Management should read the papers written by the employee and may set up a meeting in order to discuss relevant topics and theses. The manager should also encourage the employee to seek company and industry related subjects to form the basis of their course research and should provide networking and interviewing opportunities within the larger organization with those individuals who may have an expertise in the topic area. By integrating employee education with relevant company issues, and maintaining an active coaching relationship throughout the process, a manager has the potential to develop a strong mentoring relationship with his or her subordinate that will galvanize the flow of information and growth within the organization. In this way, a strategic manager can turn the pursuit of advanced education from an individual benefit into a leadership development process benefitting the company as a whole.

From an organizational point of view, the use of company sponsored educational support provides a competitive advantage. Opportunities for training and development are quickly becoming as influential as pay and benefits in enhancing employee retention and loyalty. In a job economy where employee perceptions of company loyalty are steadily declining and aggressive competition for top talent is on the rise, it is essential for organizations to consider implementing such a program.

Offering educational benefits only to star employees, however, is simply not enough. The best companies will tie such programs to their strategic, succession, and human resource development plans. Top tier companies will also recognize that succession planning, career development, and tuition reimbursement are not only for corporate executives and star employees. Rather, a comprehensive culture of development includes business, career, and leadership development for all employees. In a knowledge-based economy, high functioning organizations are essentially learning organizations that successfully attract savvy, knowledgeable workers at all levels.

E. Scott Golden, MS is Partner-Leadership Development Services for Coleman Lew & Associates and can be reached at (704)377-0362 or sgolden@colemanlew.com.

Coleman Lew & Associates, Inc., founded in 1979 and headquartered in Charlotte, N.C., is a international retained executive search firm that recruits board members, officers, and senior level executives for national and international companies, academic institutions and non-profit organizations. The firm also provides customized leadership development services to organizations seeking to maximize corporate performance. Member, Association of Executive Search Consultants (AESC).