If you work for a business, you must have observed that your organization often backs employees to better their qualifications in terms of formal education or training.
Many business owners are very aware of employee investment, i.e., the resources they invest in their work staff to ensure good organizational performance.
This article explores the duality of the benefits this practice brings. Businesses get better, more competent, and more experienced employees, and they have the chance to improve their qualifications without having to spend their own money.
It seems to be a very fair statement, but it does lead one to ask why this happens. Businesses could hire more qualified people, and employees take part-time education programs to keep their jobs and educational advancement intact.
The employer perspective
Every business owner knows that the biggest asset any organization has is its employees. The people have the power to make or break the future of a company, so naturally, they make for a worthy investment. There are many reasons why businesses would be interested in funding their employee’s education. Let’s explore some of them:
Increase in employee motivation and loyalty
When a business makes an effort by enabling the employees to be empowered by getting further education on their behalf, it instills a sense of loyalty in them, which also helps in boosting motivation to stay with the organization. Employees have the dedication to work their absolute best when they see how much their bosses care. Caring for the team can also lead to better performance in the workplace.
Low turnover of staff
Staff turnover can be a nightmare for any company. It is very costly for the business to lose an employee and time-consuming because a replacement needs to be trained to fill the role.
By investing in people’s future, the business shows that the employees are very important parts of the company, and in turn, fewer people think of leaving to seek other employment.
By investing in the future of any employee, the business is essentially investing in itself. If there are more developed, qualified, and skilled people providing their absolute best, it will set the company apart from competitors in the industry.
If the goal is to retain as many talented people as possible, the business should be thinking about investing in them because among those individuals could be the future leaders of the organization.
The employee perspective
Learning is a virtue everyone should have the privilege of acquiring. Employees give a lot of themselves to their workplaces, so it is only fair they get something in return.
Getting higher education, certification or training is no joke when it comes to the money involved. Many people don’t have enough money to fund further education. When employers take charge of the cost, it saves the employee a lot of worry and money because they don’t have to find the necessary funds.
Besides, companies with established policies on funding their employers’ educational expenses are also eligible to get a hefty tax exemption from the government.
No matter what program or degree the business invests in for the employee, at the end of the day, it adds to their list of qualifications which is beneficial for their job where they will now be eligible for benefits and salary increases. It will also help them throughout their professional lives.
Imagine it; you could be a hardworking and ambitious computer scientist who joined your dream company a year back that now wants to fund your higher education. Wouldn’t that be the dream? In case this scenario does apply to you, Worcester Polytechnic Institute (WPI) offers people an excellent opportunity to get an Online Master’s of Computer Science. You won’t have to combine the studies with your work as they will be online. Talk about it with your employer asap!
Whenever there is inflation and businesses decide to save on expenses, they often opt for downsizing. Employees who are more qualified, have more experience, or have been invested in by the company are mostly held onto because they bring a lot of value. By having the employers invest in your education, you are essentially safeguarding the future of your job.
Employee investment should be normalized because it promotes inclusivity of marginalized groups in society, primarily BIPOC (Black, Indigenous, and people of color). Often, these people don’t get the same opportunities as white people in terms of getting a good education.
Research shows only 65% of Latin people and 85% of black people graduate their high school education, while the rest don’t even get to do that level. So such reimbursement or funding programs allow employees of every race, gender, and identity to be able to accomplish their goals and dreams.
To conclude what this article has presented, employee investment programs benefit employers and employees. With so much increase in competition in every industry, businesses need more and more people to be competent, able, and educated in their respective fields to maximize work productivity.
Similarly, with the increase in inflation over the years, younger people must work harder at very young ages than ever before just to afford a living. They deserve all the help they can get in their personal growth and development.
Employee investment in education and development should be a valid policy in every business. If you are reading this as a business owner who still has not thought over this topic, it’s time you thought of investing in the people who have helped shape your company to become what it is today. More importantly, what it could be in the future!