Educational Effort: How Employers Can Benefit

Why are some individuals more capable than others?  One reason, according to the Federal Reserve Bank of Minneapolis, is that the achievement gap between individuals begins early in life.

The Federal Reserve Bank?  What knowledge could they possibly have of this situation?

It turns out that this particular Reserve Bank has been conducting a longitudinal study of early childhood development.  The study tracked 123 low-income families since the 1960s.  Children were randomly selected either to be in a control group (no special schooling), or to attend a high-quality program with well-trained teachers and receive weekly home visits.

As we might guess, the outcomes are dramatic.  The study shows that the benefit-cost ratio is $16 for every $1 spent.  The bottom line is that when children are prepared for school, they are more likely to be productive in the workplace as adults.  So what should employers do?  The answers seems clear: 

1. Hire employees who have had pre-kindergarten schooling, and
2. Support by advocacy (i.e., by voting and participating in the local education conversation) the implementation of early childhood programs.

But, say the employers, they don’t have the time for these non-business ideas.  But, say the researcher, they cannot afford not to be involved.  The benefits are $16 to $1 to hire and support the preparation of the best.  What do you think?  Is it realistic for employers to investigate a prospective employee’s pre-schooling?  If not, is it worth the effort for employers to advocate for quality early education programs today to provide future employers with a capable, high-achieving applicant pool? 

Life Reimagined: Rebranding to Reinvent

The AARP (the new name for the American Association of Retired Persons) is transforming its mission.  The new mission is to work with Baby Boomers to get them to reimagine their careers.  Retiring is not an option for most Boomers.  The focus is on anything to start a second career, to think in terms of extending one’s work life.

To facilitate their new approach, AARP has created a “Life Reimagined Institute” and developed extensive online materials for Boomers to “explore” the future.  It all starts with an online assessment and then provides tailored applications.  The resources are specific and extensive, and those retired persons not really interested in a new direction may tire half way through.  But for the serious, these are extremely valuable insights and resources.  One does not have to be a member of the AARP to enroll in the process.

Helping Boomers to navigate the future has turned into a big business, and the AARP isn’t the only player.  It does have a head start since they have 37 million members, almost one quarter of the size of the U.S. labor force.

Employers and others interested in the trend can learn more at:

• http://lifereimagined.aarp.org/

Similar sources:

• www.vocationvacation.com (career change)
• www.skillshare.com  (online courses)
• www.coursera.org (online college/university courses)
• www.openculture.com  (online courses)

Boomers: “Your new calling is calling.”

Employment & Happiness: Why Employees Stay with the Company

Do happy workers equate to higher profits?  If we believe in economic karma, as the USA Today article calls it, benevolent employers should see better productivity and earnings.  In fact, as Fortune Magazine’s 2013 list of the “100 Best Companies to Work For” shows, companies who treat their employers well do indeed see their stocks prosper.

Google, ranked #1 on this year’s list, has seen its stock soar over 600% since its inception in 2004.  And Google employees have a lot to be happy about; perks offered include college reimbursement plans, legal aid, 100% health-care coverage, onsite fitness centers and childcare facilities, and even subsidized massages.

An effect of providing all these benefits?  Reduced employee turnover.  And in turn, by minimizing the need for continual retraining and hiring headhunters, for example, the employees who stay on board help their company save money and increase earnings.

However, a good benefits package is not the only contributor to employee retention.  Julie Gebauer, managing director for talent and rewards at Towers Watson, explains the key:

The data strongly support the fact that organizations that focus on the engagement of their employees deliver stronger performance…It’s not just making them happy—that’s not a business issue.  Engagement is.

The engaged employee, an employee who exhibits enthusiasm for work, commitment, organizational pride, and alignment with organizational goals, is more likely to stay with their company.  Moreover, as Gebauer notes regarding employee treatment: “What makes the biggest impacts are things that don’t have significant costs.”

CEC’s Fall 2012 New Worker delves into the topic of hiring and maintaining employees, but we’d like to hear from you: what do you think makes employees stay with a company?  Do you agree that the intangible aspects (e.g., maintaining a work environment that keeps employees engaged) contribute to employee retention as much as quality benefits packages do?  How might a company encourage employee engagement?