Message Strategies:

Informational Reports As the newest member of the corporate training division of Paper Products, Inc., you have been asked to investigate and analyze the merits of creating online courses for the company’s employees. Th e president of your company thinks e-learning might be a good employee benefi t as well as a terrifi c way for employees to learn new skills that they can use on the job. You’ve already done your research, and here’s a copy of your notes:
● Online courses open up new horizons for working adults, who oft en fi nd it diffi cult to juggle conventional classes with jobs and families.
● Adults over 25 now represent nearly half of higher-ed students; most are employed and want more education to advance their careers.
● Some experts believe that online learning will never be as good as face-to-face instruction.
● Online learning requires no commute and is appealing for employees who travel regularly.
● Enrollment in courses off ered online by postsecondary institutions is expected to increase from 4 million students in 2009 to 7 million students in 2014.
● E-learning is a cost-eff ective way to get better-educated employees.
● More than one-third of the $50 billion spent on employee training every year is spent on e-learning.
● At IBM, some 200,000 employees received education or training online last year, and 75 percent of the company’s Basic Blue course for new managers is online. E-learning cut IBM’s training bill by $350 million last year—mostly because online courses don’t require travel.
● Th ere are no national statistics, but a recent report from the Chronicle of Higher Education found that institutions are seeing dropout rates that range from 20 to 50 percent for online learners. Th e research does not adequately explain why the dropout rates for e-learners are higher.
● A recent study of corporate online learners reported that employees want the following things from their online courses: college credit or a certifi cate; active correspondence with an online facilitator who has frequent virtual offi ce hours; access to 24-hour, seven-day-a-week technical support; and the ability to start a course anytime.
● Corporate e-learners said that their top reason for dropping a course was lack of time. Many had trouble completing courses from their desktops because of frequent distractions caused by coworkers. Some said they could access courses only through the company’s intranet, so they couldn’t fi nish their assignments from home.
● Besides lack of time, corporate e-learners cited the following as e-learning disadvantages: lack of management oversight, lack of motivation, problems with technology, lack of student support, individual learning preferences, poorly designed courses, substandard/inexperienced instructors
● A recent study by GE Capital found that fi nishing a corporate online course was dependent on whether managers gave reinforcement on attendance, how important employees were made to feel, and whether employee progress in the course was tracked
● Sun Microsystems found that interactivity can be a critical success factor for online courses. Company studies showed that only 25 percent of employees fi nish classes that are strictly self-paced. But 75 percent fi nish when given similar assignments and access to tutors through email, phone, or online discussion groups.
● Company managers must supervise e-learning just as they would any other important initiative.
● For online learning to work, companies must develop a culture that takes online learning just as seriously as classroom training.
● For many e-learners, studying at home is optimal. Whenever possible, companies should off er courses through the Internet or provide intranet access at home. Having employees studying on their own time will more than cover any added costs.
● Corporate e-learning has fl ared into a $2.3 billion market, making it one of the fastest-growing segments of the education industry.
● Rather than fl y trainers to 7,000 dealerships, General Motors University now uses interactive satellite broadcasts to teach salespeople the best way to highlight features of the new Buick.
● Fast and cheap, e-training can shave companies’ training costs while it saves employees’ travel time.
● Pharmaceutical companies such as Merck are conducting live, interactive classes over the web, allowing sales reps to learn about the latest product information at home rather than fl y to a conference center.
● McDonald’s trainers can log into Hamburger University to learn such skills as how to assemble a made-to-order burger or properly place a drink on a tray.
● One obstacle to the spread of online corporate training is the mismatch between what employees really need— customized courses that are tailored to a fi rm’s products and its unique corporate culture—and what employers can afford.
● Eighty percent of companies prefer developing their own online training courses in-house. But creating even one customized e-course can take months, involve armies of experts, and cost anywhere from $25,000 to $50,000. Th us, most companies either stick with classroom training or buy generic courses on such topics as how to give performance appraisals, understanding basic business ethics, and so on. Employers can choose from a wide selection of noncustomized electronic courses.
● For online learning to be eff ective, content must be broken into short “chunks” with lots of pop quizzes, online discussion groups, and other interactive features that let studentsdemonstrate what they’ve learned. For instance, Circuit City’s tutorial on digital camcorders consists of three 20-minute segments. Each contains audio demonstrations of how to handle customer product queries, tests on terminology, and “try-its” that propel trainees back onto the fl oor to practice what they’ve learned.
● Dell expects 90 percent of its learning solutions to be totally or partially technology enabled.
● Th e Home Depot has used e-training to cut a full day from the time required to train new cashiers.
● Online training has freed up an average of 17 days every year for Black & Decker’s sales representatives. Your task: Write a short (three to fi ve pages) memo report to the director of human resources, Kerry Simmons, presenting the advantages and disadvantages of e-learning and making a recommendation about whether Paper Products, Inc., should invest time and money in training its employees this way. Be sure to organize your information so that it is clear, concise, and logically presented. Simmons likes to read the “bottom line” fi rst, so be direct: Present your recommendation up front and support your recommendation with your fi ndings.