Support of Continuing Education
A Business's Rate of Return is a Function of Human Investment
Employers that seek to maintain a successful business will look at the intangible values of their business. One of these major values is the business's human capital.
Nineteenth-century economic theory held that only an investment in additional capital assets could improve labor productivity. At the end of the twentieth century, people and not equipment are considered the main determinate of a successful business. The value of business today is based on intangibles and not bricks or mortar. People are now seen as an important component in the success of an organization.
What are the questions? - Employers wishing to maximize the rate of return on the human component of their business need to be able answer several questions. An employer needs to ask why retention of qualified employees is important and what can encourage employees. Organizations need to know the best strategies for retaining good employees and what they may receive from the educational opportunities provided to them. Continuing education and professional development are part of the answer for any business or enterprise fortunate enough to begin asking these questions.
Why is retention important? - Many companies are facing a retention crisis. Demand for a good employees is unusually high. The challenge facing a business is not finding great employees; it will be how to keep great employees. The stigma formerly attached to changing jobs frequently no longer exists. Relentless changes in technology means employees must be lifelong learners to insure an organization remains competitive. The focus of a business on strictly financial considerations at the expense of employee professional growth will likely foster, rather reduce turnover.
What promotes high retention? - An outline of future opportunities and the perceived role of the employee must be provided by the employer. Availability of employer-sponsored continuing education and professional development promotes employee retention. The degree to which employee expectations are met is an additional factor.
What are the solutions for retention? - Retaining quality employees lies in targeted retention strategies that focus on more than just financial compensation. Employees will often state the best job they ever had was not the best paying one. There are many intangible employment benefits. Employees are looking for more interesting responsibilities. Employers need to promote career advancement pathways within the organization. Companies need to learn how to grow better-qualified employees. Organizations should promote flat organizational structures that limit the number of positions existing between the lowest and highest positions. Lifelong learning must be a primary institutional goal of the organization.
What is the value of employee education? - Making better decisions at the local level is education and experience. Continuing education can help an organization meet or enhance its quality, increase overall communications, and improve productivity. When people feel they have exhausted their learning opportunities within the organization, they often leave in search of new experiences. Employees that are learning are more likely to stay longer. Self-motivated lifelong learners are better able to stay abreast of changing technologies. Employees that are encouraged to be lifelong learners will strive to attain the highest degree of expertise and professionalism.
What is the rate of return for employee education? - A relatively small investment in education is returned to the organization in the form of a more motivated workforce. Research supports the proposition that a 10% increase in spending for employee education will increase productivity by 11% or more. An employee who has exposure to the innovations occurring within their area of expertise will certainly yield a savings to the company bottom line. When measuring the rate of return an employee brings to the organization, education always adds value. Company sponsored education can foster stronger bonds with employees. Most employees will not forget that the company paid for their education.
