Signing retention contracts for company paid course
Signing retention contracts for company paid course
(OP)
Hi,
I work for a medium sized company that implements a contract which forces the employee to remain with the company for a period of time which is proportional to the cost of the course on which the employee is sent.
I realize that the company would wish to guarantee a gain in value for the company in the hope that the employee would spread his new found knowledge to other colleagues. The employees on the other hand often view this as draconian and simply refuse to go on courses under such circumstances.
This makes improving skills within the engineering group challenging.
I would like to know whether this is common practise. Other thoughts on the matter would also be welcome.
I work for a medium sized company that implements a contract which forces the employee to remain with the company for a period of time which is proportional to the cost of the course on which the employee is sent.
I realize that the company would wish to guarantee a gain in value for the company in the hope that the employee would spread his new found knowledge to other colleagues. The employees on the other hand often view this as draconian and simply refuse to go on courses under such circumstances.
This makes improving skills within the engineering group challenging.
I would like to know whether this is common practise. Other thoughts on the matter would also be welcome.





RE: Signing retention contracts for company paid course
The concept is not draconian nor unreasonable, provided the time requirement is truly commensurate with the course cost.
To ask for a 1 yr. contract for a $300 course is unreasonable. Perhaps not for a $2000 course though. The coursework or certification is intended to be mutually beneficial...not just a perquisite for the employee.
RE: Signing retention contracts for company paid course
Dan - Owner

http://www.Hi-TecDesigns.com
RE: Signing retention contracts for company paid course
Here, I have to repay education expenses reimbursed in the last year if I leave. Things paid directly by the company (like typical training) don't come with any riders. That said, they are quite tight with training dollars and careful who they choose to send.
RE: Signing retention contracts for company paid course
If the company says the engineers are responsible for maintaining their PE license, then you need to evaluate if taking the expensive courses are worth the commitment with the company.
RE: Signing retention contracts for company paid course
Enforceable? As far as I'm aware, all 50 US states agree they are. You're receiving a benefit (education) in return for company money over and above your normal pay, and as such that entitles the company to a return on that investment. There must be a time limit set on the agreement (a year is typical), and reasonableness of that limit is determined in court, if necessary.
The recourse is payment (usually pro-rated)... they certainly can't make you stay. If they release you from your duties (layoffs and such), you're free and clear of any repayment.
Dan - Owner

http://www.Hi-TecDesigns.com
RE: Signing retention contracts for company paid course
And, at least here, it does matter if it is deemed a "university course" since those courses are covered by a separate policy from the more typical training courses. Training, including that required to maintain certifications, has no such riders. Our policies differentiate "training" from "education" for that reason. Requiring repayment is a disincentive to obtain skills and certifications which benefit the company more directly than generic continuing education.
RE: Signing retention contracts for company paid course
Dan - Owner

http://www.Hi-TecDesigns.com
RE: Signing retention contracts for company paid course
I never heard of 'forcing' someone to stay in a job and my guess is that it is not technically enforceable, but paying back a bonus can be. Although I imagine it cannot by law be deducted from your wages should you leave before the term.
"Gorgeous hair is the best revenge." Ivana Trump
RE: Signing retention contracts for company paid course
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FAQ731-376: Eng-Tips.com Forum Policies
RE: Signing retention contracts for company paid course
Two things happened:
They changed the policy.
They almost went bankrupt - this was like 30 years ago.
Figure a "cheap" MBA costs about $30,000. Three to five years is not unacceptable in my book. Also, some companies have a sliding scale or limit per year expenses. My company will only pay for $5000 per year and you are expected to stay the next year. Not unreasonable.
RE: Signing retention contracts for company paid course
YoungTurk, MacGyverS2000 & IRstuff are correct: The contract does not force you to stay but simply requires you to reimburse the company should you leave before the end of the retention period. The amount to be reimbursed is typically proportional to the time left over on the retention contract.
As to Zelgar's point regarding the PE license, I believe that the number of years of service are thrown into the mix when determining the length of retention. Thus if you already are a PE and have recently started with the company, I believe you could quickly find yourselves bogged down should you not wish to repay the company.
All in all, I believe that the policy is well thought out. It just has a negative impact on employee morale. Whether this is worth it from a companys point of view is debatable.. then again I assume it would otherwise not have been put in place.
RE: Signing retention contracts for company paid course
On the complete other hand, if I'm stamping documents for my employeer, then continuing education has to be on them, and attaching string would be a concept that I would have a real problem with.
Another area that seems black and white is Commercial Driver's Licenses. Maintaining a CDL has a bunch of requirements. Some companies pay for the requirements some don't. I've always felt that if you are doing a job that required a CDL (or any given certification), then maintenance should be the employeers cost of doing business. If you have a CDL (or other certificate) because you have a personal need for it and it doesn't benefit your employer then it sould be on you.
David
RE: Signing retention contracts for company paid course
Dan - Owner

http://www.Hi-TecDesigns.com
RE: Signing retention contracts for company paid course
We probably spend $5000-$6000 per year on training and licensing!!