Online Higher Education Makes Its Mark on The Business World

"The initials after your name lend credibility."

Karen Cheathem has certainly learned that firsthand. Having recently completed her online MBA, she is now pursuing a Ph.D. on the Web as well. Lucky for her, the workplace values formal education and is increasingly embracing online learning as a means for employees to obtain it.

John Dooney, manager of strategic research for the Society of Human Resource Management, an association of human resource professionals, has observed the evolution of online learning firsthand. "Ten years ago organizations were skittish -- now they're funding online programs," he says. In fact, approximately 29 percent of corporate tuition reimbursements now go toward online or blended courses versus traditional programs, according to a March 2005 survey of 151 learning executives by the American Society for Training and Development (ASTD).

From employee career benefits to corporate competitive advantages, online learning is making its mark on the business world.

Career-Track Benefits

John Clark, a recruiter with Benchmark Recruiting, LLC, a national executive search firm based in North Carolina, finds that his corporate clients view online degrees on an equal footing with traditional degrees. "An MBA is an MBA as long as the information is verifiable and creditable," he assures. However, Clark stresses that an individual with all the right degrees but a lack of experience will have a difficult time getting hired. "If you can say 'I worked full time while completing my education,' companies respect that."

Online education is able to provide those in the workforce -- like Lori Keam -- with the flexibility to do just that. After starting her schooling years ago at a traditional college, she went online to complete her bachelor's degree in management of technology, then landed a better position in her field. Lori says she couldn’t have garnered the total package of work experience and degree any other way.

A Better-Educated Workforce

Increasing learning opportunities for employees is the foremost reason why organizations support online higher education, according to the ASTD survey. Representatives at Merck & Co., a global pharmaceutical company, would agree.

"Whatever benefits we can offer to employees to continue education is advantageous," says Julia Parastino, human resources business partner at Merck & Co. in Blue Bell, Pennsylvania. Parastino feels that supporting online education draws more employees to pursue degrees, benefiting the company in the long-term.

Kimberly Summa, a production material planner with L-3 Communications Systems-East, a communications systems company in Camden, N.J., is completing her master's degree in engineering management online with Drexel University. Kimberly was only casually considering programs when, she says, the online learning platform sold her. Even though Kimberly is local to Drexel University, on-campus courses weren't an option with her busy work schedule. After starting her degree under a different employer, she says, support for pursuing an online degree was a "big selling point that I had to have when I took my new job." L-3 reimburses 100 percent of tuition and textbook costs.

Satisfied Employees

Increasing employee satisfaction and retention is the second most important reason given by organizations in their support of online higher education, according to the ASTD survey. Rock Primas, director of learning and development for PHH Mortgage in Mt. Laurel, N.J., partnered with Drexel e-Learning (part of Drexel University, Philadelphia, PA) two years ago to satisfy employees. The company also supports an on-site MBA program, but finds employees favor the online school. "Online education is geared toward working professionals seeking part time education. It's a good fit for our company," says Primas.

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