This paper is a report on why companies should pay for only some online classes for their employees. In specific, the paper focuses on the cost implication for such companies. Due to the need for companies to remain competitive and keep up with changes in the business environment, it is inherent that companies invest in their employees. This is to enable them to be able to be conversant with emerging trends and skill requirement in the various industries.
Due to various technological advancements, human labor is required to be more skilled than non-skilled. As such, the demand for skilled labor has seen an increase in demand as compared to semi-skilled and unskilled labor. One of the most convenient ways for employees to upgrade their skills set while still working is through the e-learning platform. Many companies have taken advantage of this platform as it enables their employees to study using fewer physical hours in a classroom than the conventional classroom education. There is, of course, a cost implication attached to this (Ritke, 22).
The cost of education for employers who wish to support their employees for the same should be properly planned for. An employer should be able to decide what he/she is willing to pay for and what they are not. Decisions such as whether to pay for the entire training, to just pay for the tuition alone, to cater for the cost of study materials must be put into consideration. A cost-benefit analysis must also be carried out to determine the overall benefits of training the employees to the company. The questions to consider include the suitability of the skills and knowledge that employees acquire to the operations of the organization (Kaufman et al, 25).
It is also important to consider the tax implication of offering scholarships to employees. Some of the items are treated as non-taxable benefits while others are not. A company can strategically decide which costs to bear that will be beneficial to them in the long run in terms of tax exemption as well as benefiting the employees.
The cost implication is one aspect to consider, the most important aspect, however, is the overall impact of such training on the productivity of the employee and consequently how it affects the organization. Offering education to employees not only makes them of more value to you as an employer but to your competitors as well. Studies have however shown that employees of companies who offer support for their education are more loyal to such companies than those which do not (Kaufman et al., 47). A company in Africa, Davis & Shirtliff, has allocated an annual amount of approximately seventy thousand dollars towards online training of its employees.
A company can also safeguard its investment in the education of employees by requiring a contract of terms and duration of service. An example of such an agreement is whereby employees agree to work for say a minimum of five years with the company from time of undertaking studies before they can consider moving to other firms. Such agreements ensure that the company at the very least ploughs back some benefits in terms of expertise from the employees and, therefore, there is mutual benefit (Ritke, 56).
It is imperative at some point that companies invest in the education of some if not all of its employees. This can be done in various ways. It is however of more importance that the costs incurred by such a company are equal to if not less than the actual benefits that the company receives, in the long run.