It happens many times . . . a company invests time and money into training employees only to have them leave soon after the training is complete. Some industries and companies now have contractual agreements requiring employees to repay training costs to their employers if they separate from employment before a specified period. Congress has also passed legislation requiring continued service agreements from government employees who have received extensive training.
These contracts obligate employees to continue working for the agency (or another government agency, depending on their employer’s policy) for a period at least equal to three times the length of the training. If the employee leaves government service before the agreed-upon service time, the agency has the right to require repayment for the amount of time not served.
Private sector industries such as information technology, airline, and trucking are also requiring employees to sign these types of agreements. One company requires employees to sign contracts for training programs that are considered expensive and time intensive. The company uses a formula that equates one month of labor for every $1,000 of costs; for example, a $7,000 course would require a seven month commitment.
The U.S. Postal Service employs approximately 40,000 maintenance craft employees to work in a variety of assignments. Some of these assignments, such as maintenance mechanics, require specific training at great cost to the Postal Service. For example, one training course lasts 13 days and costs $3,325 per employee.
Should employees receiving specialized training sign contracts to remain with the Postal Service for a specified period so that the cost of providing the training can be recouped? Should employees who received training be permitted to leave for more lucrative positions in the private sector as soon as they are certified without compensating the Postal Service? Should such restrictions apply to all Postal Service employees who receive specialized training?
This blog is hosted by the Office of Audit’s Network Processing team.