Written by Andrew Shanahan, Editorial Team, Graduate Prospects..
On the surface, getting your employer to fund your qualified status is an arrangement that benefits both you and them. But as with all contracts it is important to understand the implications attached before you sign on the dotted line. Research by the human resource consultants Sidney and Sanders shows that graduates expect a formal training programme from a company. Companies, for their part, are often keen to encourage this, as by tying graduates into training contracts they can improve their retention levels. Helen Platt, an HR officer for a multinational company, had to sign a retention contract before the company agreed to pay for her Chartered Institute of Personnel and Development qualification. ‘If I leave the company within 12 months of finishing the course I have to pay my course fees back, if I leave between one and two years after I finish, I have to pay it back pro-rata and after two years' service they write the debt off. As my course has ended up being three years this will mean that effectively I will have to stay for five years to make it pay!’ To progress within most careers requires some element of further study, whether that means learning a new computer package, or undertaking a Masters, and this can often be an enjoyable aspect of work. Aside from being contractually obliged to a company, Helen says there is another drawback: ‘Most people can’t afford to pay their company back if they want to leave, so they end up working there for longer than they want to. In that time you may miss out on career progression that you would normally get from changing employers. So although you get the qualification you could miss out on a few early steps up the career ladder.’ If you have made responsible career plans then it might be that you’re happy to be tied to a company. Recent research by the Computing Technology Industry Association suggests that just 10% of employees undertaking further training are doing so to make themselves more attractive to other companies. This paints a happier view than Helen’s of retention contracts, with graduates receiving the career development that they are looking for from companies. The research suggests that employees feel a greater degree of loyalty towards a company that has invested in them. If you are indentured to a company, then it can give you peace of mind to know that you’ve got an escape plan at the ready, just in case things go wrong. One escape route becomes available when you have passed a qualification. The more qualified you become, the more you are worth to the company and one implication of this is increased earnings. Helen says: ‘In my company when you get your qualification there is an automatic bonus for passing and then your salary is re-assessed at the next evaluation and typically that means an increase of about three thousand pounds.’ If you have the will power it can be worthwhile to put some of this windfall into savings to pay off your employer should you ever feel the need to move on. Another option for an escape route is to move on and try and get your new company to accept the debt as a condition of your employment. If the company really wants to employ you then they might be willing to pay off any contractual obligations that could delay your move. Related topics
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