NZZ, When training really pays off, interview with Erik Wirz

Erik Wirz in an Interview with the NZZ

by: Michael Ferber, Illustration Charlotte Eckstein / NZZ

When training really pays off - and how to persuade your employer to foot the bill

Continuing education can lay the foundation for your next career move and contribute to a salary increase. But it has to fit your professional situation. Here's what you need to know about choosing and financing the right programme.

Switzerland is a "country of continuing education". According to the Swiss Federal Statistical Office (BfS), 45% of the population participated in continuing education last year. While this may seem like a high figure, it's worth noting that it represents a decrease of 17 percentage points compared to 2016. The BfS attributes this decrease primarily to the COVID-19 pandemic, as face-to-face training was often not possible for extended periods of time.

The types of continuing education programmes attended include those at universities as well as courses and training at the workplace. It is noteworthy that the percentage of people participating in training increases with higher levels of education. Among those with a tertiary level qualification, 62% participated in CVT, compared to only 16% of those with no tertiary level qualification.

Switzerland offers a wide range of continuing education programmes. Many professionals pursue MAS (Master of Advanced Studies) or DAS (Diploma of Advanced Studies) programmes, the former being more comprehensive. One level below this is the CAS (Certificate of Advanced Studies). Other examples of continuing education include a Master of Business Administration (MBA) or, in the financial sector, the Chartered Financial Analyst (CFA) designation.

Such programmes are often demanding, especially as they are usually completed while working. They also tend to come at a considerable price. This begs the question of whether they are worthwhile, and what to consider when choosing an appropriate continuing education programme.

When is training worthwhile?

According to Klaus Biermann and Jonas Neff of BiermannNeff Headhunters, if your job offers a steep and enriching learning curve, there may be no need for external training every two to five years. You work in areas such as asset and wealth management. However, if this is not the case, CPD can provide a solid foundation to make you more attractive for other roles, both internally and externally. As an example, they cite an analyst or product manager in the financial industry in their mid-thirties. If such a person does not have a CFA or CAIA (Chartered Alternative Investment Analyst) designation, it may be advisable to undertake such a training programme.

"Especially in the early years of a career, professional and technical development should be accompanied by education and training," say Biermann and Neff. Over time, the importance of these measures may diminish somewhat. However, in the age of digitalisation, new assets, ESG (environmental, social, governance) and expanded leadership responsibilities, continuing education remains crucial. "Candidates who do not keep up with these developments, who do not continuously seek further training, are certainly in a weaker position than those who appear 'perfect' at the moment," say the headhunters.

Erik Wirz of Wirz & Partners Executive Search takes a similar view. "For executives, we analyse what training, if any, has been undertaken and whether it is relevant to the individual's role and responsibilities," he says. It's about matching appropriate training with a solid foundation and career path. "Depending on the role, training is a must in order to remain competent in fulfilling one's responsibilities," says Wirz.

No magic formula

There is no one-size-fits-all answer to the question of whether continuing education is worthwhile. People learn for different reasons, whether out of curiosity, to supplement their basic education, to plan their next career move, to adapt to a new role, or to establish themselves in a new industry, says Wirz. The value of continuing education always depends on the specific context, role, career path and development potential within the company.

"There is no magic formula," says Nicole Meier, head of education and training at the Swiss Employers' Association. However, those seeking training should keep the following points in mind.

Alignment with career planning: Training often forms the basis for the next career move. Wirz emphasises that continuing education should be integrated into your career planning and not just pursued for the sake of adding another qualification or title. "A continuing education programme must be in line with your current professional situation," says Theres Kuratli, deputy head of continuing education and project support at the State Secretariat for Education, Research and Innovation (SBFI).

Set clear goals and make informed choices: Kuratli advises setting clear goals for the training programme. If the goal is career advancement and/or higher income, it's important to analyse whether the programme can help achieve these goals. Brigitte Christe, Head of Continuing Education at the Swiss Leaders Executive Association, suggests asking the classic job interview question: "Where do I want to be in five years' time?" and then analysing available training options based on these goals.

Graduate with a diploma or certificate: According to Christe, a training programme should ideally lead to a recognised diploma or certificate. The focus should be on high quality programmes that have value in a curriculum. Many companies value Swiss federal diplomas and programmes from universities of applied sciences because of their practical orientation.

High self-motivation and employer signals: Continuing education programmes are often demanding, so individuals who pursue them need to be highly motivated and persistent. According to Biermann and Neff, continuing education is particularly worthwhile when it's a personal choice and is seen as a good investment. Another factor could be if the employer or potential employers clearly signal the importance of certain qualifications. "We often come across clients who see a CFA, for example, as a prerequisite," say the headhunters.

Networking matters: In addition to educational content, networking is an important factor in many continuing education programmes. Kuratli notes that participating in such programmes often puts you in a circle of people with similar career goals, which can be advantageous for your own advancement. Wirz also emphasises the importance of networking, as prestigious universities often attract top talent when it comes to leadership issues. Such networks can be valuable for career development.

Employer involvement: It's important to discuss your planned training programme with your employer and assess their position, especially if you hope they will fund some or all of it. "Ideally, the employee and employer should determine the path of the training together, with the employee explaining the goals of the programme," says Meier of the Employers' Association. Employers are usually interested in training if it is relevant to the current role or if it prepares the individual for an anticipated career move within the company. Challenges can arise if the topic of the training is "too far removed from the employee's job" or if the employer cannot clearly understand the content of the programme, says Meier.

Should the employer contribute?

Many training programmes are expensive, especially the high quality and prestigious ones. This raises the question of funding. According to Kuratli, Swiss employers often contribute significantly to the cost of continuing education. As a result, 73% of people who participate in continuing education programmes in Switzerland do so free of charge.
"Employers mainly support employees who already have a good education," says Kuratli. Training programmes are often seen as a "perk" for people who are important to the company or institution. The financing of extensive training is often governed by an agreement that provides for reimbursement if the employee leaves the company before a certain period has elapsed.

According to Biermann and Neff, it is common for employers to partially or fully fund training programmes. "However, it's also common for individuals to have to contribute to the costs when they leave the employer. In such cases, the new employer often covers these costs". Wirz says that funding for training programmes is typical when it is in line with the company's vision for the employee's career. Sometimes large companies work closely with top universities in their field for executive programmes.

Christe notes that training programmes often help employers retain talent and maintain a positive image. Individuals who continue their education are often agile and ambitious. "Such individuals are valuable assets to a company," she says.