:: Skanska Follows Trend With In-House University ::

By Jessica Saunders - East Bay Business Times

When Michael Nelson was considering a career move nearly three years ago, he looked for a company with a commitment to its employees' professional development.

Skanska USA Building Inc., which has an office in Oakland, offered 80 percent tuition reimbursement toward the M.B.A. he was halfway to earning, as well as ongoing in-house training through its corporate university. Knowing he could continue his education at Skanska tipped the scales in its favor, said Nelson, project manager at the company's addition to the Regional Medical Center of San Jose.

Since joining Skanska, he's taken 46 courses for 115 credit hours through Skanska University, including courses that helped him earn his LEED (Leadership in Energy and Environmental Design) Accredited Professional certification. He also earned a state Class A hospital inspector certification, which furthered his knowledge of California building codes related to hospitals and completed his masters degree with the University of Florida in 2006.

Skanska's learning opportunities "reinforces their commitment" to employees, Nelson said.

Skanska hopes that its corporate university investment pays off in increased training, standardized processes and eventually improved leadership and greater employee retention, said Jon Holtz, dean of Skanska University and human resources director. The staff turnover rate is one of the factors used to evaluate Skanska managers.

"People join companies. They leave bad managers," Holtz said. "We have to train people to lead employees if we are to prevent turnover. Over time, you can expect to have a great boss, and with a great boss goes greater morale and greater retention."

Corporate universities have grown rapidly in the past two decades, from 400 in 1993 to a projected 3,700 by 2010, according to Harrisburg, Pa.-based Corporate University Xchange, a consulting firm which researches corporate learning and leadership development.

Under the corporate university model of training, all of a company's investment in learning and development is consolidated and aligned with its business strategy, said Sue Todd, the company's president and CEO. In the past, employee development focused more on the individual and less on a focused content approach that could "drive the corporation forward," she said.

Skanska requires that 75 percent of employees in a given location be fully trained on mandatory courses at any given time, Holtz said. Mandatory coursework includes the entry-level All Skanska Employee Program, which includes orientation, maintaining an injury-free environment and harassment prevention.

Other courses are specific to a particular job or location. For example, project managers are required to take more than 30 courses on subjects such as business etiquette, cost management, contract documents and insurance, Holtz said. In California, there's a section devoted to the state's occupational safety laws.

Some of the courses are computer-based, but most are taught in a classroom by volunteer Skanska instructors. Each location has a training committee that decides with the local manager which classes are needed, when and how many, Holtz said.

"The ones I've heard they really like are the leadership development courses," such as those from Dale Carnegie Training and the American Management Association, which show employees how to move up the career ladder, Holtz said.

Corporate universities, which have become popular in IT and financial services sectors, are rare in the construction industry, Corporate University XChange's Todd said.

"You know I am thrilled to hear a construction organization is recognizing that its people are going to be critical to its success," she said.

Another Bay Area builder, DPR Construction of Redwood City, uses an internal Web-based portal to disseminate best practices learned on the job, and offers computer-based training, according to Melanie Brittle, DPR's Bay Area training coordinator. The goal for each employee is at least 80 hours of self-initiated training annually. In addition, the company's Global Learning Group offers classroom courses taught by 55 in-house experts.

DPR plans to expand its online learning center to include an enhanced career development area, according to Brittle.

Article published with permission by East Bay Business Times. To contact the author: jsaunders@bizjournals.com | 925-598-1427