Guild Education raises $40M to educate employees
- Guild Education announced it has raised $40 million to provide education as a company perk for employees, as reported by TechCrunch. With funding from its existing partners and new VCs, banks, educators and businesses, the organization said it will continue to help employers pair up with nonprofit universities to give employees education opportunities.
- According to TechCrunch, Guild programs currently reach 2.5 million working adults who could obtain GED certificates, complete vocational programs or pursue undergraduate and master's degrees. The program gives adult learners access to classes at more than 90 learning providers and universities.
- Guild told TechCrunch it believes companies see a return on their investments within the first two years with an increase in retention rates, as well as a reduction in lost productivity caused by high turnover. "On an incremental basis, our programs simply need to cost less than the cost of losing a high performing employee and hiring and training their replacement," Guild CEO Rachel Carlson said per TechCrunch. "We accomplish that by partnering with affordable, nonprofit universities and focusing with them on dual retention: helping employees succeed at school and at work."
Education as a benefit is fast becoming a deal maker for employers, and a deal breaker for employees. Millennials, in particular, are looking at career advancement when searching for a company to join or determining whether or not to stay where they are.
Despite this reality, a large portion of the millennial workforce is not satisfied with the development opportunities their employers provide. Young employees, for example, often job-hop when they feel they're being underutilized or under-trained. Career frameworks are becoming a must-have of any job. This age group, as well its older counterparts, looks at learning as an employer's duty, rather than an extra perk.
This growing trend and the tightening labor market may prompt businesses to work with educators and create a steady stream of job-ready grads. In addition to quality technical training, young workers will fare better when equipped with the soft skills that have become a new paradigm for workers in the government, education, and community organizations sectors.