In the United States, about half the people who start college don’t finish. This creates a big problem for nearly 40 million Americans—roughly 20% of the working-age population—that only have some college credits, no degree and tens of thousands of dollars in debt that anchors them down for the rest of their lives.
The Federal Reserve Bank estimates that Americans owe about $1.73 trillion in student loans, with nationwide college debt increasing by 91% between 2011 and 2021. An undergraduate degree at a public school increased by 213% since the 1980s, according to the College Board.
In light of the exorbitant costs associated with obtaining a college degree, coupled with the difficulties businesses are having in recruiting and retaining employees, offering a free way for workers to go to college helps solve the student-debt burden, cuts down on attrition and creates a pathway for workers to grow their careers within their organization.
The global economy has quickly moved online and is tech driven. This calls for people to continually learn new skills to keep up with the fast-moving trends in the workplace. In the 1950s, having a high school education was sufficient enough to lead a comfortable middle-class lifestyle with two cars and a nice home with a white picket fence in a leafy suburb. This era is over. A college degree is almost mandatory to get a good job and advance within the corporate world.
Arizona State University, recognized by U.S. News and World Report as the country’s most innovative university, along with the Rise Fund, a global impact investing fund managed by TPG, collaborated to launch InStride, a learning services enterprise designed to achieve significant social impact through partnerships with employers to provide opportunities for employees to obtain a university education.
InStride is reinventing the education of today’s workforce, working with employers to provide opportunities to degrees and credentials for their employees and partners, through the highest-quality universities and colleges. By serving as the key link between universities and employers, InStride facilitates partnerships that will positively impact the lives of thousands of people who will benefit from a high-quality education.
InStride is a public-benefit corporation that aims to become the indispensable human capital partner of organizations, helping them unlock the full potential of the university ecosystem and provide meaningful, life-changing impacts for their employees.
InStride CEO Vivek Sharma said about forming the novel socially purpose-based company, “We founded InStride to champion a movement that deepens the connection between employers and their employees, helping them take a powerful next step in their careers.” Sharma added, “InStride will provide the opportunity for employers to unite with the highest-quality universities to ensure meaningful impact in the lives of their employees.”
It’s perfectly acceptable for young people to pursue work in trades, such as electricians, construction workers, carpenters and other jobs that don’t require a college degree. However, the data shows that the social and economic benefits of higher education include higher earnings and increased social mobility, greater civic participation and stronger health outcomes.
The creation of a dedicated organization, like InStride that directly connects large employers with the highest-quality research institutions, will be crucial to broadening the ability of individuals to pursue a college education, as they seek ways to improve the skills of their workforce and retain their workforce.
Sharma is passionate about his social-impact company that connects businesses with universities to create flexible, debt-free education opportunities for employees. In a tight talent market, making higher education accessible without incurring any personal debt, is a highly attractive recruiting and retention tool.
Sharma, who is also a board member of JetBlue Airways and former executive at Disney, Yahoo and McKinsey & Co., says that there are multiple benefits: employees will be happier and become more motivated, some will stay and rise up through the ranks and others will leave, but have fond thoughts of their company and share their opinion with others, which is great publicity.
He said about leadership that offers this type of program, “If I invest in an employee’s education, she will believe in my company, she would treat the customers better and she would stay with us longer.” The chief executive added, “This is a very real strategic benefit that changes the trajectory of an individual’s life.” By offering employees a debt-free college path, the organization is viewed as an empathetic, compassionate employer that takes bold, actionable steps to make an impact that investors, employees and customers care about.
Sharma wrote C-Spark: CEO-led Workforce Education for the Age of And, the definitive blueprint for the first-ever, CEO-led strategic approach to workforce education. He shares “how to seize the opportunity to generate revenue, ensure business agility, recruit and retain the best talent, advance diversity, equity and inclusion, promote authentic corporate citizenship and create industry-leading brands.”
Source: Forbes
