Develop Company Value
In a world of continual evolution and strong competition in the work environment, investment in employee education should be viewed as a huge benefit for the organization to stay competitive and be progressive at the same time. To meet this challenge, organizations need to realize the importance of developing its’ current employees’ while allocating funds along with time for this development. An employer may believe that it has a human resources department in place to hire the appropriate person to fill a position; however, just as cars lose their value over time and computer equipment becomes obsolete, an employee’s education and skills can also become obsolete. Providing tuition reimbursement and making time allowances for continued education keeps an organization progressive. The corporation can develop its internal value by using these as recruiting tools but mostly by developing its most precious asset – its’ current employees.
As Mitra Toossi, an economist in the office of Occupational Statistics and Employment Projections from The Bureau of Labor Statistics, wrote, “the aging of the baby-boom generation and its movement from the prime-age to the older labor force will decrease the overall labor force participation rate.” (Toossi, 2007) This will leave 25% of senior management positions vacant because of their retirement. A company is limited in its options to replace these aging baby-boomers. The corporation can either recruit the personnel with required knowledge, or it can invest in training and developing its current employees. Recruiting for an open position in the corporation can be very labor intensive and time consuming, however; having perks such as tuition reimbursement for the potential incumbent is a benefit that the human ...