Yahoo Finance Chrysler joins Starbucks in 'schooling' American workers
The hot new corporate “perk” is: education.
Fiat Chrysler (FCAU) is now offering free college tuition to its 188,000 dealership employees. The program provides a no-cost online bachelor’s degree through the for-profit Strayer University (STRA), and is similar to a plan announced earlier this year between Starbucks (SBUX) and Arizona State University.
Yahoo Finance Editor in Chief Andy Serwer points out that in the current work environment, firms need to both build a smarter workforce…and give smart people a reason to join their operations.
“Increasingly, companies are frustrated about getting educated workers and they’re looking to differentiate and attract workers,” he says. “I think you’re going to see more and of this, particularly as wages rise and the competition-- the supply/demand balance-- shifts to making it difficult to find good workers.”
Fiat Chrysler executive Al Gardner makes that point in explaining why the carmaker is launching this program.
“Many of our dealers have expressed concern over the availability of talent to fill open positions due to business growth and turnover in their stores, especially in metro markets.”
That doesn’t surprise Yahoo Finance’s Jen Rogers.
“Once you find them you want to keep them,” she says. “And the turnover is a real issue in dealerships--between 45% and 60%.”
Get the Latest Market Data and News with the Yahoo Finance App
Yahoo Finance Senior Columnist Michael Santoli adds many businesses are responding like Fiat Chrysler to what they recognize as a real need.
“Corporate America is stepping in where they see gaps in educating workers, retaining them and essentially having people get what they feel like they ought to get out of a career,” he explains.
Serwer sees that as well.
“There’s a story in the New York Times today about income mobility and how, in certain parts of the country, there is none anymore,” he points out. “So companies are going to step into the breach here. I think they’re going to have to add on all kinds of perks.”
And Serwer believes offering free college tuition is a really important perk considering the divide between people’s skills and what’s needed in the 21st century workplace.
“God knows there’s a gap,” he says. “We need to educate people in this country.”
Also from Yahoo Finance
