By Candido Segarra, CEO Foresight Development, Co.
Corporate Universities: The Driving Force of Human Capital
With the tightening labor market due to the massive retirement of Baby Boomers, COVID-19, as well as favorable economic conditions post COVID-19, the mechanisms that fuel industry’s economic growth is increasingly turning from financial to human capital. In the past, capital-intensive physical assets drove competitive advantage in many sectors of the industrialized world. Today, as information technology fuels the economy, the sources of growth are changing quickly from plants and machines that make things work, to people, who make things happen.
- Aging of the Workforce and Leaders
In this postindustrial society, the scarcity of good talent is rapidly emerging as the next major corporate challenge this and next year, as businesses will need to deal with the reality of a graying workforce, the high expectations of Millennial and Z Generations, competitive unique talent demands on leadership, and growing employability skills gap. Corporate universities are emerging as a powerful vehicle to help overcome these challenges. Although many companies currently face an aging workforce, few offer lifelong learning opportunities to keep skills current. Corporate universities are set up for this role
2. Millennials and Generation Z’s Expectations.
Many in the Millennial and “Z” generations place a higher value on development opportunities than they do on cash bonuses. Lack of development and growth opportunities is the major reason given by these generations for leaving a company. Corporate universities are turning their attention to attracting and addressing the intrinsic development needs of these generations.
- High Demand on Talented Leadership. As dispersed global operations integrate, leaders must have keen cross-cultural skills and the ability to adapt. Corporate universities have a proven record in developing leadership skills, behaviors, and promoting a customized culture of common values within the organizations.
- Addressing Employability Gaps. Management education and skills, especially in middle management, often is a fraction of what is needed in the workplace. In a 2012 Boston Consulting Group study found that only 15 to 30 percent of university graduates are immediately employable. Corporate universities are stepping in to fill the skills gap needed to develop successful organizations.
Additional Advantages of Corporate Universities
Corporate universities have many advantages over training departments and decentralized learning and development activities organized by different corporate departments. The most commonly cited benefits include:
- Training Alignment with Company Goals and Strategies. “The best corporate universities are strategic, mission-driven and designed to achieve specific business objectives,” says Mark Allen, Ph.D., editor of The Next Generation of Corporate Universities: Innovative Approaches for Developing People and Expanding Organizational Capabilities (Pfeiffer, 2007).
- Employee Recruitment, Retention and Engagement. Deloitte LLP’s corporate university has become “a tangible symbol of recruitment, retention and engagement,” says Bill Pelster, managing principal of talent development. “When we go to campuses to recruit, people can see what we’re talking about,” he says, adding that opportunities for learning and growth are credited for increasing employee engagement.
- Consistent Quality, Message and Results. In 1993, Whirlpool Corp. created a corporate university to ensure global consistency in training. “The other advantage is our methodical approach to leadership development,” says Tammy Patrick, global director of Whirlpool University.
Sample of Skill-Topics Included in a Corporate University
Some of the topics which can be tailored to the corporate specific needs and environment include:
- Soft managerial leadership skills
- General business basics
- Building corporate culture and values
- Industry-standard computer apps proficiency
- Web search skills
- Onboarding
- Government compliance training
- Process engineering and creativity in business
- Manufacturing Processes
- Cross-cultural understanding and team inclusion
- Personal communications (in all forms)
- Coaching and performance improvement
- Behavior modification and motivation
Foresight Development Co. is one of the leading and highly rated management development training programs in the industry. Foresight recently modified its business model to help its clients and mid-size companies develop internal, budget-friendly, turnkey corporate universities. www.foresightmdp.com Contact us: winners@foresightmdp.com.
