Corporate Tree
Investing in Knowledge
| posted 09-28-2009 |
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In a 21st century world where jobs can be shipped wherever there's an internet connection; where a child born in Dallas is competing with children in Delhi; where your best job qualification is not what you do, but what you know – education is no longer just a pathway to opportunity and success; it is a prerequisite.
That is why workers without a four-year degree have borne the brunt of recent layoffs... And that is why, of the thirty fastest growing occupations in America, half require a Bachelor's degree or more. By 2016, four out of every ten new jobs will require at least some advanced education or training. A call to action delivered by President Obama to the Hispanic Chamber of Commerce demands the support of furthering the education of our workforce. You can no longer count on the value of your own degree and education level to prove the worth of your business – your business is only as good as the education level of your workforce as a whole. Managers who want to take their organizations to the next level need to recognize the importance of their firm’s intellectual assets - the importance of top talent - and be sure to provide mechanisms to enhance human capital so that they can innovate and develop products and services that create value. Now, more than ever, it is evident that knowledge is the primary means of wealth generation in today’s economy. In fact, today, more than 50% of the gross domestic product in developed economies is knowledge-based). That is, the market value of goods and services is heavily dependent on knowledge put to good use. In the U.S. intellectual and information processes create over 76% of the value in service industries. It is in this context that employee development becomes not only a function housed in Human Resources, it becomes a strategic decision resulting in an added value to an organization. A study in the late 1970s compared the market value with the book value of more than 3,000 companies in the U.S. over 20 years. The study demonstrated that the book value and market value gap was greater for knowledge-driven organizations than for firms which based their value on assets, meaning that organizations where knowledge and management of knowledge workers is the asset are considered more valuable in the market than those who concentrate their assets in tangibles (Roberts and Dowling, 2002). If organizations are aiming for high growth as well as high quality, training plays a big part in this endeavor. Measuring the ROI of training is difficult, but Motorola, for example, has calculated that for every dollar invested in training there are $30.00 in returns. But educational development in the form of training programs or tuition assistance for higher degree programs need to be delivered at every level, not exclusively to top leadership. In order to become competitive players in the marketplace with improved overall performance, organizations need to have the smartest, most qualified people in each layer of the business. When budgets are tight, it’s hard to talk about investing in employee development programming, but the numbers show it pays to invest in the talent you already have. It is well known that in certain industries (e.g. high tech) knowledge becomes obsolete even after a year. And, since recruiting new talent every year would be a costly and inefficient way to keep up with the demands of a constantly changing market environment, it is more necessary than ever to invest in developing our workforce. The hesitation to encourage employees to take on a commitment such as a degree program that will draw attention away from keeping up with their jobs is completely understandable. But nowadays, universities are stepping up to their end of the deal to make programs accessible to working adults, offering evening, weekend or online programs. Online programs are particularly attractive to more seasoned working adults to honor family commitments and prefer the pay-as-you-go approach while maintaining full-time work rather than taking time off work to pursue a degree and seeking loans. The beauty of these programs is that you set the tone and pace. You can pay registration and tuition for your employees from the get-go, or you can wait to see what kind of grades your employees manage to get and pay based on their academic success. Often, higher education institutions will offer specialized discounts to employers that send several employees into their degree programs, so you may think of limiting the options for which school or program you’ll support. Another very important element of employee development is mentoring programs. One of the barriers individuals cite to enroll in higher learning institutions has been the lack of role models within their communities and families. Through mentoring not only can your employees gain insight into business tactics and how to comport themselves in a business setting, but they can develop self-confidence and competency and set higher standards for themselves in their education and career paths. To those of you bottom-line thinkers, employee development has been proven to have a positive impact on your numbers. For those of you who are believers in the American dream, and as entrepreneurs I have to believe you are, investing in the knowledge of your workforce will help to expose your team to the opportunities for success. And individual success can only lead to a better economy as a whole. Sources: http://www.whitehouse.gov/the_press_office/Remarks-of-the-President-to-the-United-States-Hispanic-Chamber-of-Commerce/anic Chamber of Commerce, March 10, 2009. The New Titans: A survey of the world economy.(2006) The Economist, September 16, 3-8. ______________________________ |
Dr. Ivonne Chirino-Klevans joined 
