How corporate giants are disrupting higher ed.
A slew of megawatt companies from Starbucks to Chipotle to Disney have joined a growing trend of employers expanding their tuition-assistance benefits to provide low-cost pathways to education for working adults.
Take Walmart. Almost two years ago, the retail giant began offering a debt-free college education to its 1.4 million employees in the form of subsidized online associate鈥檚 and bachelor鈥檚 degrees. The deal: Walmart covers tuition, books and fees; workers pay $1 a day.
The program, called 鈥�,鈥� offers its full- and part-time employees access to select degrees from academic partners like the University of Florida and Purdue University--schools specially chosen based on their success in serving the unique needs of working adults.
And last year, Walmart rolled out a program to specifically attract more high school students, a demographic increasingly hard to hire in this tight labor market. The college degree program offers scheduling flexibility, ACT and SAT prep, and up to seven hours of free college credit.
Because of these programs, Walmart has increased its talent pipeline, decreased turnover, seen a 25% month-over-month increase in job applicants and had 1.3 billion positive media impressions. It鈥檚 been a win-win: an opportunity for employees to upskill toward higher earnings and more career options, and a strategic talent driver and competitive advantage for Walmart.
As others like and invest in their workforces, employees are discovering more affordable, alternative pathways toward degrees and credentials鈥攁 monumental development in the world of higher education.
The next movement in higher education
It鈥檚 no secret that many universities are looking for ways to fill their classrooms; college enrollment in the U.S. declined by 1.3% in 2019. Over the past few years, demographic and economic trends have caused a decline in high school graduates. And six years from now, forecasters predict a , where enrollment rates will stagnate or plummet for universities across the U.S.
With fewer graduates to pull from, institutions are shifting focus to a market largely overlooked until now: working adults.
In this era of rapidly evolving industries fueled by globalization and technology, it鈥檚 become critical for adult workers to continuously update their skills鈥攖hroughout their entire career鈥攖o remain employable. A demand for lifelong learning has arrived.
In response, leading universities are creating innovations in the design and delivery of their degrees to cater to working adults鈥� needs for accessibility, affordability and flexibility. An example of this is microcredentials like听听and听, where degrees are broken down into shorter, stackable, modular credentials.
But with growing competition among online programs, colleges are looking for ways to lock down the adult learner market without spending more on recruitment.
Enter the megacorporation.
Win-win partnerships
The universities that are building academic partnerships with employers like Walmart gain access to thousands of adult learners, guaranteed.听 听
- Arizona State University makes online bachelor鈥檚 degrees available to Starbucks鈥� 100,000+ employees, who receive 100% tuition coverage through the . ASU has also developed similar relationships with 听and the听.
- The University of Arizona, Bellevue University, Brandman University,听Southern New Hampshire University and听Wilmington听University provide 75 different business and technology degrees to Chipotle employees through debt-free program.
- Oregon State partners with Peet's Coffee to offer the , with more than 20 online bachelor's degree programs.
- Purdue University Global partnered with Papa John's recently to听听to its corporate employees.
As partnerships between employers and colleges grow, traditional higher education won鈥檛 be replaced. But new pathways are emerging for individuals who previously had no way to get a college degree. As more employers are willing to pick up the tab, the opportunities for institutions to access new students, save on recruitment costs and stabilize revenue make academic partnerships something to consider.