The Benefit That Really Works
Strategically speaking, there’s no more rewarding outcome than securing your workforce’s future through access to meaningful education opportunities managed by Pearson Accelerated Pathways. By offering employees a means to get the development they need to support the career they desire, the potential benefits are many and measurable.
Educational Benefit programs can generate as much as $2.29* in return for every dollar spent on tuition assistance, according to the Lumina Foundation. That’s no small amount, especially if your organization has hundreds or thousands of participants. That’s because education is a benefit that can deliver a positive impact on all facets of your business.
Providing educational attainment opportunities to frontline workers may be the best way for you to recruit workers.
According to a Gallup poll, workers are “most likely to change jobs for benefits and perks closely related to their quality of life [and] … are interested in jobs that offer them a way to balance work and home better, gain a deeper sense of autonomy and secure their financial future.”
In many industries, recruiting and retaining a robust frontline workforce is an enormous expense. “Among positions earning $30,000 a year or less, which includes more than half of all U.S. workers, the cost of replacing an employee is slightly less than among positions earning less than $75,000 annually*.” For a company that has 10,000 frontline workers earning $30,000 or less a year and loses 85% of them annually (a common turnover rate), it costs an average of $4,800 per employee to find, rehire and retrain a replacement. That’s $40.8 million each year simply to fill job vacancies from voluntary turnover. Investing in the right education programs can drive retention, thus saving your organization money on the cost of turnover.
*Source: Heather Boushey and Sarah Jane Glynn, “There Are Significant Business Costs to Replacing Employees,” Center for American Progress.
Forward-thinking organizations deploy strategies to develop frontline workers by training them not only for their current roles, but also for the jobs and careers they want in the future. By connecting frontline workers with relevant educational opportunities, employers are building clear competitive advantages in employee engagement and loyalty.
Companies that have analyzed the return on investment for education programs have seen a significant return, including 100% retention rates of employees enrolled in education programs and workers who stay twice as long with the employer as a result of their education benefit.
Not providing these opportunities comes with a cost. Without clear purpose and opportunities, employees rapidly disengage. “Actively disengaged employees cost the U.S. $483 billion to $605 billion each in lost productivity. These workers are more likely to steal from their company, negatively influence their colleagues, skip work, and drive customers away,” according to Gallup*.
*Source: Susan Sorenson and Keri Garman, “How to Tackle U.S. Employees’ Stagnating Engagement,” Gallup. http://www.gallup.com/businessjournal/162953/tackle-employees-stagnating-engagement.aspx
Providing educational attainment opportunities addresses current skills gaps while improving talent management pipelines and processes from attraction to advancement. It helps deepen development discussions between employees and managers and reduces transience in frontline roles.