The Business Case for Workforce Education Programs

By offering tailored education programs, employers can help workers transition into high-demand roles, equipping them with relevant, industry-specific skills.

Economic mobility—the promise that hard work leads to a better life—has become increasingly elusive for millions of Americans over the past several decades. Traditional education pathways often fail to keep pace with today’s workforce needs. In response, employers and employees are focusing on practical skills that open doors to high-demand, well-paying careers. 

Employer-funded workforce education is emerging as a powerful tool for building these in-demand skills and enabling upward economic mobility. By offering tailored education programs, employers can help workers transition into high-demand roles, equipping them with the relevant, industry-specific skills needed to succeed in their careers. 

The underemployed workforce 

Education has always been a powerful lever for economic mobility, but today, too many graduates find themselves stuck in roles that don’t adequately leverage their skills. In other words, they are underemployed. 

Nearly 40 percent of bachelor’s degree holders start their careers underemployed, and 73 percent of these workers will still be underemployed even 10 years after college. Underemployed workers often feel unfulfilled and disengaged in roles that don’t fully utilize their skills. This dissatisfaction can prompt them to leave when a better opportunity arises, increasing employee turnover.  

Fortunately, companies can help their employees unlock economic mobility and decrease turnover by providing workforce education programs that specifically align with job market demands and support employees in reskilling or upskilling into critical roles. 

How employer-funded workforce education works 

Employer-funded workforce education programs should be flexible, accessible, and aligned with career growth to maximize impact. Companies can offer various development options, from career-aligned courses and certification programs to full degree pathways, and cover or subsidize the costs to remove employee financial barriers. These programs can focus on skills relevant to an employee’s current role or support broader career advancement within the company. 

Many companies achieve this by partnering with universities, online learning platforms, or workforce education providers that specialize in designing tailored education programs to meet specific industry needs. For example, Action Behavior Centers (ABC) launched the ABC Foundations education program three years ago to support employees pursuing advanced degrees necessary for Board Certified Behavior Analyst (BCBA) certification. Designed to address the rising demand for skilled autism care providers, the program has not only helped employees save on tuition. Still, it has also boosted BCBA exam pass rates and achieved an impressive 84 percent enrollment increase year-over-year. ABC’s program demonstrates how targeted education support can prepare employees for critical, career-advancing roles and meet specific organizational and industry needs. 

Companies looking to achieve similar enthusiasm for an education initiative can consider day-one eligibility and strong internal program promotion, including from executive leadership. Additional resources, such as stipends for books and materials, paid study time, or partial tuition assistance, may further enable employees to pursue valuable education without sacrificing income or work-life balance.  

These programs have been shown to increase job satisfaction. Employees who feel their employers invest in their growth are more likely to feel valued and supported. This sense of value often translates to greater loyalty and can incentivize employees to stay longer.  

Furthermore, by offering courses aligned with industry demands, companies equip employees with the tools necessary to excel in their roles and take on new challenges. This approach makes employees more versatile and valuable to the organization while reducing the chance of underemployment and improving economic mobility.  

Practical considerations 

Building a workforce education program that benefits the organization and its employees requires that HR teams carefully plan and align program goals with company objectives, market demands, and employee aspirations.  

Companies can start by pinpointing the roles and skills that are essential for the company’s current and future success by analyzing skill gaps across teams. This helps assess what certifications or degree programs could have the most impact. Collaborate with department heads and conduct skills assessments highlighting high-demand competencies, such as digital literacy, data analytics, AI skills, and project management.   

Next, it’s essential to allow for personalized education pathways. For example, an education pathway for a data analyst might start with introductory courses in data visualization, advance to machine learning, and culminate in certification in data science. When employees see a clear trajectory that aligns with their career aspirations, they’re more motivated to complete the training. This is especially true if the company maps education programs to specific organizational positions. Remember that structured pathways should be flexible enough to accommodate different learning styles, whether through online courses, workshops, or mentorship.  

Once a program is in place, internal promotion is key to its success. Launch the program with a campaign that details the benefits, eligibility, and application processes. Highlight testimonials from employees who have advanced through similar education initiatives, and share examples of how new skills have made a difference in their careers. Regularly remind employees of these opportunities through newsletters, internal events, and departmental meetings. 

You’ll also want to track program success to verify that your money is well-spent and your program is translating into real value for your organization. Set metrics like certifications earned, promotion rates, and retention rates of participants to measure impact over time. Regular assessments will help you fine-tune the program to ensure it continues to deliver value. Gathering employee feedback also sheds light on what works well and needs improvement. That way, you can ensure your workforce education programs are an ongoing asset for employees and the organization. 

Building for success

In today’s job market, employer-funded workforce education can close skills gaps, create pathways to economic mobility for workers, and build resilience for organizations. By fostering a culture in which learning is continuous and skills evolve, companies position themselves as industry leaders who value adaptability as much as productivity.  

This approach to workforce development also benefits the broader economy, as a highly-skilled and optimally employed workforce drives innovation and resilience across sectors. Investing in these programs today helps individuals and organizations thrive in the face of tomorrow’s challenges.