Aligning Education with Work

EXECUTIVE SUMMARY

There is a persistent mismatch between North Carolina’s higher education outputs and the state’s workforce needs. In order to address this gap, policymakers must prioritize and incentivize ways for employers and institutions of higher education (IHEs) to work together, while also rewarding excellence in delivery and outcomes.

Employer-higher education partnerships offer the most effective, scalable path to a more vibrant, efficient economy. This policy brief explains the scope of the misalignment problem, the benefits of employer partnerships, and offers practical policy solutions.

POLICY SOLUTIONS: HOW STATES CAN ENCOURAGE EMPLOYER PARTNERSHIPS

North Carolina should make employer partnerships a significant part of workforce education. Employers and IHEs must work closely together to design, deliver, and evaluate career-focused education programs.

Key Recommendations

For North Carolina:

• Alignment of funding and incentives: This could include tying funding to employment outcomes or demand (e.g., Propel NC14), providing matching grants for employer-IHE partnerships, or other incentives for employer-sponsored education. The UNC System should continue to incorporate workforce alignment and ROI in academic program review.
• Increased transparency: North Carolina public IHEs should regularly report program-level outcomes, including earnings and employment rates.
• Increased regulatory flexibility: Examples include streamlined approval for employer-aligned programs and flexibility in credential design.
• Support for Work-Based Learning: This could include financial support/incentives or revenue sharing for employer-provided training, as well as administrative simplification for employers.

For Federal Policymakers:

• In order to support workforce partnerships in the states, Congress should codify the 2011 “bundled services” guidance into law. Such provisions were included in the 2024 College Cost Reduction Act,16 sponsored by Rep. Virginia Foxx (R-NC-5).

Download the full report below.

Downloads

EmployerPartnerships