SECTION III

EMPLOYERS

This section reports on a range of employer-supported lifelong learning programs. Some employers focus on the professional development of their employees or on developing the skills of potential employees. Other employers focus on developing the untapped human potential in their communities. In each case, the organization recognizes that human capital is its most vital asset and invests in providing support for learning at different life stages.

We begin the section with an interview with the vice president of human resources and organization at United Technologies Corporation (UTC). UTC demonstrates its commitment to each employee’s lifelong learning through a comprehensive tuition assistance program. The interview highlights the following issues, which are further developed by the featured employees:

• Remaining competitive requires direct participation to develop a competitive workforce pipeline.

• Workforce development and professional learning are complex endeavors that require coordination of multiple components and leveraging the resources of partner organizations.

• Investments in programs carry an expectation of realizing immediate impact, return, and results.

Executive Perspective

United Technologies Corporation: Employee Scholar Program

Elizabeth Amato

United Technologies’ employer-sponsored education program has been touted as the best in the world. From a historical context, what led UTC to decide to make this incredible investment in its people? In other words, why was it started and what was its original purpose?

We have benchmarked extensively and found UTC’s Employee Scholar Program is, in fact, one of the best in the world. Our former chairman and chief executive officer, George David, created the program because he firmly believed that the ongoing education of employees played a significant role in ensuring their long-term success.

It is our philosophy that while private employers cannot guarantee lifelong employment, responsible companies can provide employees with lifelong learning opportunities. Evidence suggests that employees who utilize the program are twice as likely to be promoted and are less likely to leave the company than those who do not participate.

Can you describe how the program works, regarding such issues as eligibility, curricular options, and program partners? What differentiates it from other corporate models?

The UTC Employee Scholar Program is unique because it is designed to minimize the cost of higher education for our employees. UTC covers the cost of tuition, books, and fees for master’s, bachelor’s, and associate’s degree programs. These costs are covered up front and paid directly by UTC to the college or university rather than reimbursed to employees after course completion. Employees may study any subject at any accredited UTC approved university, whether or not it relates to their current position with the company. UTC has more than 3,000 approved schools that employees can attend. Our methodology behind selecting these UTC-approved institutions is not based on cost, but rather on ensuring that employees are receiving a high-quality education. Ivy League schools, such as Yale and Harvard, are included on our approved list.

Additionally, employees are eligible for up to 3 hours of paid study time-off per week. Both full-time and part-time employees worldwide become eligible for the Employee Scholars Program when they have completed 1 year of service.

What are the current goals of the Employee Scholar Program? How do they align with and advance the priorities of the company?

United Technologies Corporation is committed to having the most educated workforce on the planet. Our highly skilled workforce helps us to constantly innovate and remain competitive in the aerospace and building systems industries. The program supports the company’s goals of attracting and retaining talent in the highly competitive global market. The Employee Scholar Program reflects UTC’s ACE (Achieving Competitive Excellence) operating model, which promotes a commitment to continuous improvement and best-in-class innovative products and services.

What other factors have you addressed or implemented to make the program a success: commitments/sponsorship of senior leadership, fostering an organizational culture that supports education and allows the necessary time for learning, or other factors?

Support for the UTC Employee Scholars Program begins from the top level of management and is embedded within our corporate culture. Since the program’s inception in 1996, UTC has invested more than $1.1 billion in employee education, and UTC employees have earned over 36,000 degrees. Employees are encouraged to participate in the Employee Scholars Program, and all requests to participate are approved if basic eligibility requirements are met. Some UTC-approved educational institutions also offer unique teaching methods that may include web-based learning or on-site classes at UTC facilities, which makes it easier for UTC employees to complete courses. The program is designed to remove barriers for employees and make enrolling, studying, and completing a degree as seamless as possible.

What challenges/barriers have you had to overcome (or address regularly)? How do you manage the obstacles and maintain momentum?

One challenge we face is global participation. While the program was always global, participation outside of the United States continues to lag. The main reason for this is differences in the maturity of educational systems across the globe. Specifically, the availability and maturity of part-time education in the United States exceeds that of part-time education in other countries. Currently, 60% of UTC employees work outside of the United States, but they comprise only 30% of Employee Scholar Program participants.

How has success been measured on factors such as recruiting, retention, productivity, and innovation? Have you gotten a return on the investment?

More than 7,500 UTC employees worldwide are currently enrolled in UTC’s Employee Scholar Program with more than 40% of current enrollees pursuing advanced degrees. Also, 52% of the program’s graduates have earned advanced degrees. The majority of degrees earned through the program are in engineering and business-related fields.

The bottom line in measuring return on investment for UTC is that employees who participate in the program are nearly twice as likely to be promoted and less likely to leave the company than are those who do not complete the program. Our investment in education leads to greater workforce retention and attraction, which ultimately enhances the company’s bottom line. Put simply, we believe lifelong learning benefits our employees and our business.

What lessons can other employers learn from your experience?

United Technologies Corporation remains one of the few corporations with no restrictions on the course of study an employee may pursue with no requirement that coursework pertain to an employee’s current job. UTC covers the cost of tuition, books, and fees for employees seeking master’s, bachelor’s, and associate’s degrees up front to minimize out-of-pocket costs to students.

Other companies may also realize this type of return on investing in talent and recognize that we have a shared responsibility to invest in an educated workforce. Between rising education costs and increasing student debt, corporate investment in education is critical to a talented workforce that can grow with the company.

United Technologies Corporation also partners with major universities to enhance and inform curriculum design. These partner schools provide highly technical and specialized science, technology, engineering, and mathematics (STEM) curricula to its students and prepare a workforce with UTC-ready skills.

Overall, the program is a great attraction and retention tool, delivering an engaged workforce, ready and able to take on the challenges we face.