For further information: Frank Tortorici
The Conference Board
(212) 339-0231 [email protected]
For Release Friday, June 25, 1999 Release #4495A
WORKPLACE EDUCATION PROGRAMS ARE BENEFITING U.S. CORPORATIONS AND WORKERS
Conference Board/U.S. Department of Education Study Cites Individual and Organizational Gains
Findings Reinforce Importance of President Clinton's Proposal for Workplace Education Tax Credit, Says the Assistant Secretary of Education
The vast majority of today's employers have benefited economically and employees have increased their skills through workplace education programs, according to a report released by The Conference Board and The Conference Board of Canada. The study was issued in conjunction with the Office of Vocational and Adult Education, U.S. Department of Education.
The report, Turning Skills Into Profit: Economic Benefits of Workplace Education Programs, includes a survey of more than 40 private and public sector workplaces from a cross-section of economic sectors throughout the U.S. Ninety-eight percent of the employers surveyed report at least one employee skill and one economic benefit gained from workplace education programs--defined as initiatives that target basic workplace skills such as the ability to read or that incorporate technical and job-specific training.
"This report makes clear that there are significant pay-offs to both workers and employers from participating in workplace education programs, and that's why President Clinton has proposed a 10% workplace education tax credit for employer-provided workplace literacy and basic education programs," says Patricia McNeil, Assistant Secretary of Education. "Employers would be allowed maximum credit of $525 per participating employee per year."
Workplace education programs are considered vital because more than 40% of the U.S. workforce and more than 50% of high school graduates do not have the basic skills to do their job, according to the report. Among college graduates, as many as 16% have inadequate basic workplace skills. In a recent Conference Board study of 550 U.S. CEOs, 25% identified shortages of key skills as top challenges as their corporations face increasing globalization, technological changes, and other external pressures.
Eighty-seven percent of employers surveyed cite improved morale as an organizational benefit gained through workplace education programs. Increased quality of work, better team performance, and improved capacity to solve problems were cited as organizational benefits by 82% of the employers surveyed. Three-quarters of survey respondents cite improved capacity to cope with change in the workplace and nearly the same amount say they've noticed improved capacity in using new technology as a company-wide benefit gained through workplace education programs.
"To overcome the widening gap between current skill levels and those needed to maintain competitiveness, companies are finding that workplace education programs are leading to a plethora of improvements," says Michael R. Bloom of the Conference Board of Canada, co-author of the report with Brenda Lafleur, also of the Conference Board of Canada.
Other organizational benefits cited by employers were higher success rates in promoting employees (71%); improved effectiveness of supervisors (69%): improved labor-management relations (65%); increased output of products and services (65%); increased profitability (56%); reduced error rate (53%); better health and safety record (51%); increased customer retention (42%); and increased employee retention (40%).
EMPLOYEE BENEFITS
Workplace education programs help employees increase fundamental skills such as reading and math and also help employees develop positive attitudes about their work and ability to embrace change. Eighty-five percent of employers surveyed cite greater willingness and ability to learn for life as a skill gained through workplace education programs. Eighty four percent cite improved ability to listen, to understand, learn, and apply information and analysis, as well as improved understanding and ability to use documents, as skills they obtained from such programs.
Other skill improvements cited because of workplace education programs were a more positive attitude toward change (84%); better ability to work in teams (80%); increased understanding of and ability to use numbers (76%); improved capacity to think critically and act logically (73%); improved ability to use computers and other technology (65%); heightened understanding and willingness to work within the group's culture (65%); stronger understanding of and ability to use prose (53%). -30- Source: Turning Skills Into Profit: Economic Benefits of Workplace Education Programs Report #1247-99-RR, The Conference Board
Information on ordering this publication can be obtained by calling The Conference Board's Customer Service Department, 212-339-0345. Copies are available free to the media (212-339-0231).
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