A strategic tool: how to maximize the value of your training and education programs.

Does your company make a clear distinction between "education" and "training"--and is the approach to each consistent? If your company is like most, a vast majority of the financial resources in the E & T area are budgeted for targeted employee training, while the education dollars are available to employees through tuition assistance or similar employee benefit programs.

In these programs, the employee is allocated a certain amount of money and is allowed to pursue college courses and degree programs of their own volition.

Increasingly, however, companies both large and small have the opportunity to utilize their college education dollars as a strategic tool. This is even more important at a time when the education and training budget in many organizations has been cut to the bone, and it is imperative that any new initiatives, whether education or training related, provide the maximum bang for the buck.

Identifying employer and employee objectives is the first step. What should businesses of any size consider prior to the development and implementation of any new employee program(s)?

1. Education program(s) can be tailored to meet the needs of the company and should be tied to the strategic plan. You should complete a comprehensive needs assessment prior to the allocation of funds for any education program. The purpose of the needs assessment is to accurately identify the educational needs and wants of employees and management. The results of the study are used to determine the appropriate coursework and/or degree program(s) to be supported or introduced and to assure the alignment with the specific strategic needs of the company and its employees. Armed with this information, you can work with academic partners to target areas of particular interest through course substitutions and credit transfers. Also, don't rule out the possibility of brokering partnerships between academic partners to create a degree program or certification that capitalizes upon the strengths of each provider and further enhances the value of the program to the company and its employees.

2. Use tuition assistance programs as a strategic tool. Companies devote significant resources to the recruitment of high potential employees with specific skill sets. Once on board, those same employees are often able to take advantage of the company tuition assistance program, which encourages a lifelong learning environment and assists in retention. The key is to utilize the tuition assistance program to promote the pursuit of education programs that are tied to the strategic goals and objectives of the company. A possible methodology is to create a tiered tuition assistance program that provides a greater level of monetary assistance for company-endorsed programs. If you don't have a formalized tuition assistance program, you may consider incorporating this benefit into the individualized employee compensation package. Whatever option is selected, it is imperative that management plays an active role in the educational endeavors of employees.

3. Academic institutions should be treated as suppliers. When negotiating with a college or university, it is important to remember that they, too, are providing a product (coursework) just like an automotive supplier provides parts to a car manufacturer. So, the approach taken in the selection of an academic partner should mirror the approach taken in the selection of any other product or service provider--meeting the needs of the customer should be the top priority. Keep in mind that it is possible to negotiate with potential academic suppliers on everything from admissions requirements to credit transfer and tuition rates without compromising the academic integrity of the end product.

4. Alternate delivery methods provide greater flexibility for employees. Gone are the days of time certain, place certain requirements for the delivery of academic course-work. Today distance education options range from the videotape delayed format to online video streaming with a number of hybrids in between. Companies have the flexibility to select the method of delivery that provides the best fit while taking into consideration the schedule of the workforce being targeted.

5. Strength can be found in numbers. Small companies in particular may be concerned that their relatively small audience will preclude their ability to develop a company-specific program. There are a couple of different options to consider. First, if your company happens to be a supplier to a larger corporation, investigate the types of programs the corporation offers to its employees. Many large corporations will allow supplier participation if you find there is a program that meets your needs. Secondly, consider forming a consortium with other small businesses to increase your leverage with potential academic partners.

6. Companies currently involved in fellowship programs may want to reconsider. If you currently have employees participating in full-time programs requiring on-campus residency and extended periods of time away from the job, you may want to reconsider your strategy in this area. Participation in programs of this type can be very costly once you factor in tuition, room and board, time away from the job, salary and benefits, etc. In the era of distance education, it is possible to find programs just as prestigious with the same degree of academic rigor without requiring on-campus residency.

Free online learning

Michigan Virtual University now offers a new educational program called BeeFreeway, which provides free e-learning to businesses with 25 or fewer employees broken down into four main categories: business expertise, manufacturing, information technology and management training. Employees can log into BeeFreeway from any online computer terminal, whether at work or at home. Employers can monitor progress by viewing employees' digital "report cards." For more information, visit www.mivu.org.

Dawn Campbell is manager of education programs at Educational Enhancements Inc. in Bloomfield Hills, a Bronze-level member of the Detroit Regional Chamber.