Recouping Training and Development Costs Using Preemployment Agreements

Abstract

The dollars associated with training and development investments for organizations are considerable. Employers are unable to recoup these expenditures if workers leave the firm before it has had an opportunity to realize the benefits of such training. To assist businesses in maximizing their return on investments in human capital, it is suggested that training and development professionals and legal counsel examine the applicability of preemployment agreements to recover their training expenses. Such cost-sharing agreements—provided they are clear and narrowly written, reasonable, moderate, and serve legitimate business interests—are permissible contracts that require employees to continue in service for a period of time or reimburse the organization an agreed-upon sum if they leave before an agreed-upon time.