Many employers are cutting costs throughout their organizations, but before limiting their work force development programs, they should think twice.
Robert McNeill, director of adult and continuing education for Delaware Valley College, says today’s businesses can’t afford to depend solely on the skills that their employees arrived with, and that development and training are necessary for their business to remain competitive.
“It is unfortunate that employee educational costs are categorized as an expense, because they truly are an investment in the largest unlisted asset any organization has — its work force,” McNeill says.
Smart Business spoke with McNeill about how work force development benefits both employers and employees.
Should employers consider work force development an expense or an investment?
The simple response is that it is an investment. More than ever, today’s economic environment dictates that businesses run lean. Businesses have pared down their work forces to levels that, for some, are sustenance levels. The employees who remain are those who have the most to offer.
And because these employees are the most valuable, doesn’t it make sense to invest in them educationally to increase their skill levels and make them more flexible and agile?
Why should employers consider investing in their work force?
The bigger question is this: Why wouldn’t they? There are many examples of companies, even some Fortune 500 companies, that have consistently invested in the development of their work forces, regardless of economic conditions. Did this investment contribute to their success? I’d like to think so.
We can no longer depend on the skills that our employees had when they were hired. Those skills need to be updated, modernized and brought to bear in favor of the company.
Why is it that so many employers limit their employees’ reimbursement to the IRS-stated cap of $5,250? Because of payroll taxes? What a shame.
Today, adult students want to develop their skills through higher education as quickly as possible. There is an immediate benefit to the employer in terms of a better understanding of the macro environment in which the company operates.
Making tuition assistance provisions for employees beyond this cap enables them to achieve their educational goals faster and enhance their contribution to the company.
