Metrics that Matter. Heather Gahalla l Director, Client Relations l EdAssist Shelly Windle l Senior Strategic Account Director l EdAssist

Transcription

1 Metrics that Matter Heather Gahalla l Director, Client Relations l EdAssist Shelly Windle l Senior Strategic Account Director l EdAssist

2 Workshop Objectives Introduce findings from recent education assistance survey Discuss how we might rethink our metrics Share three impactful client stories Review a metrics calculator Wrap up

3 Educational Assistance: Past and Present A core corporate benefit for more than 40 years $16 billion spent per year (Bersin) Offered by 77% of large employers (SHRM) Often a passively managed benefit 73% of organizations don t track participation in development opportunities (Aspen Institute) Measurements focused on participation and utilization Employers beginning to dream big, viewing programs as an investment in human capital 2016 Bright Horizons Family SOLUTIONS LLC

4 WHAT EMPLOYEES ARE SAYING

5 The Lasting Impact of Tuition Assistance Survey of EdAssist client employees Recent participants, enrolled or active within the past year Survey conducted December 2 nd 15 th, ,400 respondents 2016 Bright Horizons Family Solutions LLC

6 Education Has Broad Appeal Participant Demographics 45% from age 35 and under 39% over age or younger years 19% 26% years 16% years 15% years 12% 51 or older 12% 0% 10% 20% 30% 2016 Bright Horizons Family Solutions LLC

7 A Decision Factor 79% Say it was important in their decision to join Bright Horizons Family Solutions LLC

8 A Highly Valued Program I am not even done with my program, but feel I have already reaped plenty of rewards, personally, professionally, and monetarily. 65% rate tuition assistance as one of the best benefits offered 2016 Bright Horizons Family Solutions LLC

9 Increasing Mobility The program has allowed me to look into other job opportunities within the company for career growth. I m working within a company that promotes self-development and provides its employees with the necessary tools to pursue higher education. 81% say they are more likely to stay at their organization 77% have an improved opinion of their employer 2016 Bright Horizons Family Solutions LLC

10 Why It Matters Data show that education assistance supports three key talent goals: Retain Attract Engage Attract Retain Engage 2016 Bright Horizons Family Solutions LLC

11 Measuring... It Matters Common tuition program measurements: # of students participating Breakdown by degree Breakdown by major Breakdown by school Average investment per student

12 Dream Big! measurements helped drive outcome conversations? Participation Are the right employees signing up? People Outcomes Are participants more engaged? Are participants more likely to stay? Financial Outcomes Is education assistance reducing recruitment costs? Is education assistance improving productivity? 2016 Bright Horizons Family Solutions, LLC

13 Client Story 1 Healthcare organization recognized by U.S. News and World Report as a top hospital system for 21 consecutive years Goal of having 8 in 10 staff nurses hold a bachelor of science degree by 2020 a target recommended by the IOM for best in class organizations Multi-year plan to build workforce needed for tomorrow by developing the people on staff today

14 Client Story 1 A Universal Challenge: How to drive program utilization and also reduce overall expenses. Time Bad Experience Finances Obstacles to Degree Completion Stress

15 Client Story 1 Solution 1 - Align policy with business objectives Closer look at historic cap levels Benchmarking competitors and tuition rates Results: Average non-nursing spend -20%

16 Client Story 1 Solution 2 - Formulate strategic partnerships with schools. Assessed utilization measurements Increase visibility opportunities for schools Result: Tuition discounts as a % of total investment: +529%

17 Client Story 1 Solution 3 - Assess key stressors for nurses and tackle obstacles head on. Provide nurses with an advocate Communicate support Result: -$866 / participant decrease in nursing spend; +2.4% increase in retention

18 Client Story 2 Worldwide healthcare company Rated as having one of THE best 401(k) retirement plans nationwide Annual educational assistance benefit of $5,250 undergraduate / $7,500 graduate degrees Boomers retiring, deceleration of working age population growth Replacing Boomers with Millennials but so is everybody else! 1 Levanon, G. (2014). From Not Enough Jobs to Not Enough Workers: What Retiring Baby Boomers and the Coming Labor Shortage Mean for Your Company. The Conference Board.

19 Client Story 2 Challenge: How to utilize Educational Assistance Program to prevent turnover without increasing annual benefit

20 Client Story 2 Solution: Isolate target population Utilize data to identify what matters to them Re-envision what an Educational Assistance program can be Non-credit programs PDUs CEUs Certifications Student Loans

21 Client Story 2 LoanRepay targets primary voluntary termination reasons If the program retains 5 employees, the investment pays for itself in hiring costs alone # EEs Retained Recruitment Savings Net Program Cost 6 $414,000 ($64,000) 5 $345,000 ($5,000) 4 $276,000 $74,000 2 $138,000 $212,000 1 $69,000 $281,000 Assumptions: Full-Time employees graduating in last 2 years are eligible 100 Participants $3,500 Annual Cap $350,000 Projected Spend $69,000 Cost to replace a worker

22 Client Story 3 Employees who are supported in their development are more likely to show higher engagement and better performance results. Program participation data Employee data Employees decision to join and stay Supervisor s rating on job performance Sharing of measurements Aggressive marketing

23 Client Story 3 72% of managers/supervisors surveyed reported improvement in the job performance of program participants Job Performance Recruitment 50% of participants indicated that education assistance program was primary reason for joining the company Program participants had a slightly higher incidence of lateral moves and promotions than the general workforce Career Mobility Retention General workforce is more than twice as likely to leave the organization than education assistance users

24 Make Your Case Sample Outcome Metrics Saved Through Reduced Churn Saved Through Internal Promotions Earned Through Improved Performance Saved On Recruitment Costs

25 Key Takeaways Educational Assistance Programs can be an important tool in addressing business challenges. Full potential for your program is realized when you set a specific strategy and goals. You can t assess the success of the program if you don t measure investment and results.

26 SHRM Credits Improving Tuition Assistance Utilization Through Metrics that Matter Activity ID: 16-SVO3C