Online education meets employers’ needs in
several ways, including increasing workforce knowledge, improving an
organization’s hiring and retention efforts, and stretching education
dollars through tuition discounts and customized programs that combine
training with degree programs.
Business advantages of online education include the following:
A more knowledgeable workforce. Online education appeals to employees
who otherwise could not pursue higher education due to time or geographic
constraints. “It’s advantageous to the company to support employees in
online education because it draws more people to continue their degree,
which can only benefit the company in the long run,” says Julia Parastino,
human resources business partner at Merck & Co. in Blue Bell, Pa.
A survey of Drexel University online students found that more than 70
percent said they would not have attended the same program on campus even
though they lived or worked in the area. Online graduate student Kimberly
Summa, a production material planner at L-3 Communications Systems–East, a
communications systems company in Camden, N.J., wasn’t thinking of pursuing
a master’s degree in engineering management, but after “looking casually at
programs, the whole online thing really sold me.”
Increased hiring and retention. L-3 has found its support for online
education to be a powerful retention and hiring tool, says Barry Lem, the
company’s manager of training and development. Turnover at the company was
below 3 percent last year. Summa cites the company’s support for her
continued pursuit of an online graduate degree as a “big selling point” in
her decision to take a job with L-3. “It’s a great benefit that I really
appreciate,” she says.
Eduventures reports that online education is now viewed by all types of
prospective students as “one choice among many delivery options,” attracting
even students who don’t have time or geographic constraints but who simply
prefer it over a traditional classroom environment. Given the growing
demand, organizations that limit tuition reimbursement to only traditional
courses may also hurt their chances of attracting and retaining talent.
PHH Mortgage received similar inquiries from its employees before
partnering with Drexel e-Learning two years ago. Even though the company
also supports an MBA program taught on-site, employees favor the online
school. “Working professionals, particularly working parents, need
flexibility to further education,” says Primas.
Cost savings. Lee says Lockheed Martin’s tuition reimbursement costs for
online courses have been driven up in the past by surcharges such as
technical fees. This is quickly changing thanks to increased competition
among online providers and a growing emphasis on corporate-friendly
practices such as tuition discounts.
Corporations that partner with Drexel e-Learning, for example, receive a
10 percent to 20 percent discount for their employees over the rate paid by
other students.
Tuition discounts are a major reason companies decide to formalize their
relationship with an online provider. A typical arrangement requires an
agreement on the company’s part to make employees aware of the program,
which can range from allowing schools to send newsletters to employees to
simply inviting the school to on-site education fairs and verifying
employment for enrolling students. Companies can enter into these agreements
with numerous institutions since exclusive status is not expected.
Customized programs. In addition to formalizing an agreement for
discounted tuition, corporations can also contract with online providers to
receive customized programs.
Kenneth Hartman, academic director of Drexel e-Learning, says companies
sometimes request a specific series of courses to meet their training needs.
These courses, if part of the university’s regular curriculum, can count
toward a degree. At Northcentral University, for example, employees who
