Big deal: IBM proposes basic change in training.IBM (International Business Machines Corporation, Armonk, NY, www.ibm.com) The world's largest computer company. IBM's product lines include the S/390 mainframes (zSeries), AS/400 midrange business systems (iSeries), RS/6000 workstations and servers (pSeries), Intel-based servers (xSeries) did something really smart on July 25, 2007. It broke the mold mold, name for certain multicellular organisms of the various classes of the kingdom Fungi, characteristically having bodies composed of a cottony mycelium. The colors of molds are caused by the spores, which are borne on the mycelium. of corporate training. The current model is paternalistic pa·ter·nal·ism n. A policy or practice of treating or governing people in a fatherly manner, especially by providing for their needs without giving them rights or responsibilities. : the company pays, but the company knows best so you learn what they tell you to learn. IBM has decided to put some of the decision making in the learners' hands--in return for them having some skin in the game. The corporate technology giant will offer employees individual savings accounts An Individual Savings Account (ISA) is a financial product available in the United Kingdom, designed for the purpose of investment and savings with a favourable tax status. dedicated to training and career development--similar to 401 K's but for a different purpose. The employees can put up to $1,000 a year into the account, and the corporation will match at a 50% rate. Employees will spend the money as they choose. IBM acknowledges that some people will use its 50% contribution to facilitate career moves that will take them out the door. But Samuel J. Palmisano Samuel J. Palmisano (born July 29, 1951) is the current Chairman, CEO, and President of IBM, one of the world's largest IT companies. He was elected Chairman in October 2002, effective January 1, 2003, and has served as Chief Executive Officer since March 2002. , IBM CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , thinks that the accounts will help any company or organization that provides them attract talented individuals. And isn't the conventional wisdom today that attracting and retaining talent is a huge competitive issue? IBM isn't leaving it at that. Under current tax regulations, employees can deduct de·duct v. de·duct·ed, de·duct·ing, de·ducts v.tr. 1. To take away (a quantity) from another; subtract. 2. To derive by deduction; deduce. v.intr. out-of-pocket training expenses only if they relate directly to their current job or occupation. IBM is hoping to get other companies to join with it in lobbying for a change that would allow employees to deduct any career-related educational expenses they pay for. Removing the tax barrier would encourage people to think about their long-term careers, not just about immediate job and promotion concerns. If only there were more CEOs like Palmisano who refuse to think about training and development as a low-status cost center. Thinking that way is self-fulfilling. You consider learning as overhead, as having little to do with financial results, and you get a function that performs as overhead. The cause of that doesn't reside in the people who perform the function--it lives in the minds of management. You'll find more details about the IBM training accounts here. And here you'll find a recent report, "Succeeding in the Global Economy: A New Policy Agenda for the American Worker," that includes the tax treatment IBM advocates. |
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