Advantages and Disadvantages of Establishing a Corporate University

A corporate university can be anything from a training department looking to brand its services to divisions of different companies that offer degree programs. The focus of a corporate university can be to train a core competence in an outsourced format while in other situations it is designed to establish training that is developed by professionals in the organization. Within this specialized article, we will aim to show the positive and negative attributes to starting a corporate university and we will go into detail when you continue reading below.

The advantages of a corporate university:

From childhood, many of us decided to continue education for an entire lifetime never ending the search and quest for education. By going to college or university a person learns how to deepen their thought and learn to challenge their perception of the world with conventional thinking. The corporate university model will compel people to renew their education and continue to learn and develop in a positive way.

A corporate university offers many different marketing opportunities to promote the brand and image of the university. You can create a university name, logo, print publications, web pages, degrees and certification programs. Your branding can go beyond just your employees and include partnerships with other outsourced companies, and local colleges and universities.

Many employees will stay with a company if they are individually groomed and trained with the opportunity to move up the ladder. Employees enjoy being challenged and being able to grow their knowledge and abilities. A corporate university can emphasize continued learning and can produce a framework with certification programs and career advancement opportunities through continued education through the corporate university method.

The disadvantages of a corporate university:

Branding of your corporate university can be damaged if the model of the school is not carefully planned. When you choose to refer to your training department as a corporate university by name can actually cause negative consequences. Learners can slowly become cynical about learning and the organization’s ability to provide education may become insignificant and not a major area of focus.

Many different people have a tendency to criticize universities and higher education stating that they are far removed from “real-world” scenarios and don’t provide realism in today’s economy. This same negative thing has been said about corporate universities as well. The way to bypass this is to create the course learning materials based on actual real-world scenarios which will go a long way to deflect negative criticisms about your corporate university.

Creating and building your corporate university will be an expensive process. The expenses will be justified when you receive your return on investment, but without a solid way to measure the success ratio of your training program will be absolutely integral. Knowing the long-term results and having them achieved is a far greater benefit than short-term savings with no growth.

Knowing the positive and negative features of creating your own corporate university are the very first steps you must take for it to succeed. Many companies are switching to this model to promote branding and to help grow their business with motivated and knowledgeable employees. Your training program should be up to date and offer a real-world approach.


Ravinder Tulsiani is a Leadership Expert and #1 Bestselling Author of ‘Your Leadership Edge’ a management training guide. See