Research Shows Universities and Colleges Are Missing Out on Critical Revenue Stream
New research suggests that higher education institutions need more focus on providing relevant offerings in order to capitalize on corporate education and training dollars
The research, which is available on the Destiny Solutions website, reveals that although 95 percent of corporations have systems in place to financially support employee education, only a fraction of that spending goes to colleges and universities. The research suggested that this is due in large part to the fact that colleges and universities are out of touch with the needs of corporations looking to develop their workforce, seeing as only 16 percent of employers said that there is an adequate availability of programs tailored to their needs.
“Given the budget crises higher education is currently experiencing, capitalizing on this market could provide an invaluable revenue source for many colleges and universities,” said Shaul Kuper, president and CEO of Destiny Solutions. “By responding to corporate needs, institutions will not only be able to increase revenue, but they will also be able to better equip students with the skills they need on the job.”
With the rapid pace of advancement in today’s markets, education can no longer be a one-time event, with 70 percent of corporations stating that employees need continuous education and training just to keep up with the pace of their job. However, there are many different options for education, ranging from internally run training departments to tuition reimbursement programs, to corporate partnerships with colleges or universities.
Additionally, low participation rates in tuition reimbursement programs and low success rates of internally developed programs suggest that partnerships with colleges and universities provide one of the most impactful and lucrative options for both the corporation and the institution. Nonetheless, low satisfaction rates with the scope and availability of programs provided by institutions have meant that only 9 percent of corporations surveyed have formalized partnerships, leaving a large percentage of the market untapped by colleges and universities and open for competition.
“Research shows that corporations are spending billions of dollars each year to educate their employees, and they want to be sure that programming is relevant and cost-effective,” Kuper said. “Higher education institutions are being presented with a golden opportunity to transition the workforce, the community and the education system into the 21st century.”
To download the research paper, please visit: http://www.destinysolutions.com/2012-research-voice-employer-effects/