Question

Using the Case Theorem, explain why a firm would be willing to pay employees for work-related education?

Answer 1

Employees are a great contributing factor in any firm. They account for the generated profit or loss suffered by the business. Their actions speaks in terms of the level of how sound the firm is able to carry out its activities. Thus, the success of any firm in the first place depends on the performance of its employees.

Understanding the importance of employees to the firm, it becomes very essential to keep them motivated. A highly motivated workforce eventually results in a higher level of productivity which helps the firm to achieve its objectives and the set priorities in the business plans.

In order to motivate employees, it is important to successfully focus on appleaing their intrinsic drives. Since external rewards and threads are not always that effective.  

Now why would a firm be willing to pay employees for work-related education?

It is simple to understand. Every firm want their employees to work in their best interests. They look forward to employees working in the most efficient and highly effective manner. Such efficiency and effectiveness in the work field is only possible if the employees carry required knowledge and education with regard to their work. In addition to their productivity, paying for employees work related education also enable the firm to retain employees.

Along with this, a program that includes paying for employee's education is a tax-free benefit for them and a business deduction for the firm.

By paying for employee's expenses in relation to work related education, a firm is able to enhance the skills and knowledge of employees. Such skills and knowledge can be applied to the task that is being carried out by employees to make the firm's business a success. And for the employers, the amount paid by them for an employee's education is a deductable business expense.

For example, in a banking sector the employees are provided the required training timely so that it becomes easy for them to carry out their axctivities. This enable the bank to accomplish its goals whereas the employees feel valued and motivated.

Thus, in all the aspects, paying for employees work-related education benefits the firm in all aspects. At first, it enhances the ability of employee to work towards the growth and development of the firm. Secondly, it helps the firm to diversify its functions in different fields, and thirdly it also relsut in deductive business expense.