Employers warm up to online education: online degree programs offer flexibility and cost advantages that are becoming increasingly popular

HR Magazine, Jan, 2006 by Kimberly Merriman

Online education is entering the mainstream, according to some higher education analysts, and its growing popularity with employers is part of the reason. Increasing the knowledge of their workforce is a prime benefit for employers, and many companies are finding ways to support employees who want to continue their education or earn advanced degrees online.

Employers' efforts are being aided by online degree providers, which are catering to businesses by offering features such as discounted tuition and customized programs designed to fit the needs of specific companies and industries.

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What's happening in business corresponds to a surge in online education overall. Eduventures, a Boston-based provider of market research and analysis for the education industry, reported that the number of students in fully online higher education programs grew nearly 34 percent in 2004. In addition, a 2004 study conducted by the Sloan Consortium found online enrollment significantly outpacing higher education enrollment overall.

Increasing employees' satisfaction and retention are some of the most important reasons cited by organizations for using online higher education, according to a March 2005 survey of 151 learning executives by the American Society for Training & Development (ASTD), based in Alexandria, Va.

Approximately 29 percent of corporate tuition reimbursements now go to online or blended programs, according to the ASTD survey. About 58 percent of the survey respondents expect the role of online higher education to increase in their organization over the next two or three years.

Online education's appeal in the workplace reflects the fact that it's "a natural extension of today's work environment," says Richard Coffey, director of manufacturing, functional and employee development training for the Boeing Co.'s learning, training and development unit, because "it mimics how we work."

By delivering a flexible means of education that is "needed in today's business world," online education is gaining increasing acceptance from employers, says Rock Primas, director of learning and development for PHH Mortgage in Mount Laurel, N.J. In building a better-educated workforce, online education presents a wealth of benefits.

Clear Advantages

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."

Online education also gives employees more flexibility to choose their area of study. "If the degree is not offered locally, then online is a way to get the degree you want," points out Valeri Lee, manager of training and development at Lockheed Martin Corp.'s missiles and fire control unit. For instance, Lockheed Martin engineers in Florida complete the hard-to-find master's in optics degree through Arizona State University online.

* 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.

Kling, an architecture and design firm based in Philadelphia, was motivated, in part, to formalize relationships with its online providers because its employees asked it to, says Sandy Koerner, SPHR, principal and director of human resources for the 400-employee firm. By supporting employees' interest in online education, Kling believes not only that current workers are likely to stay with the firm but also that prospective employees will be attracted to the company.