I.B.M. Plan Ties Training and Accounts New York Times (07/25/07) ; Lohr, Steve

IBM says it will begin offering employees in the United States an opportunity to enroll in its new “learning account” program next year as a way to help save and pay for training and development in a rapidly, changing global economy. Similar to the 401(k) retirement plan, the program will allow employees to put up to $1,000 in a specialized savings accounts for training and development each year, with IBM contributing 50 cents for every dollar. While companies spend money on training and development largely to provide employees with the skills needed to assume a new position in the organization, IBM’s employees can decide how and when to spend the money, held in an interest-bearing account, which they can take with them if they decide to leave IBM. “The significance is that it’s controlled by the individual,” says Rosabeth Moss Kanter, a professor at the Harvard business school, who views the initiative as a path breaking program. IBM hopes other companies adopt the strategy, and plans to discuss with universities the idea of offering tuition discounts to workers who are seeking new skills. Also, IBM plans to push for a tax change that will enable workers seeking new careers to deduct the cost of education and training. IBM will contribute $40 million to learning accounts in the first three years of the program.