Wal-Mart and Harrods are at different ends of the retailing spectrum and both are starting to offer degrees to their staff.

The Harrods story wouldn’t even have made the news without the Harrods name. They’re working with Anglia Ruskin University and are paying staff fees for a customised verison of the University’s business degree – the University already works with Barclay’s Bank and UPS. One story said only 10 students would be entering the programme.

The Wal-Mart story is much more interesting because the potential size of the programme could alter the higher education industry in the US and it is bringing in some new concepts.  It has struck a deal with American Public University, a for-profit online university which has another arm serving the military market (American Military University). Overall, the company has 70,000 students. A Chronicle of Higher Education story has a great summary of the story and 60-odd comments covering the range of prejudices (mostly) and insights (a reasonable amount) on the issues. For me, three issues jumped out.

• The proposed extensive use of recognition of onjob learning will test the rules of accrediting bodies and is already leading to charges that Wal-Mart is dumbing down education. That’s a fight that will be settled once all the details come out, but greater recognition of onjob learning could make a big change in the US if a firm like Wal-Mart pushes it. It could change the perceptions of that mode, in a country where institutional certification is dominant. On the other hand, other institutions are arguing that degrees earned through this partnership will not be recognised because of the non-classroom credit.
• Some community college people asked why Wal-Mart had gone for a private for-profit university when community colleges were cheaper for students. Well, I can think of a few reasons. First, community colleges are funded by states so (a) their subsidised rates only apply within state borders and Wal-Mart operates across the US, which would require negotiating a network of community colleges throughout the US and (b) states might not want to make subsidised education available to Wal-Mart (Wal-Mart can’t even set up in Chicago!). Second, once you add up state subsidies, community colleges won’t necessarily be cheaper (the gap would be closed, but I don’t know where it would end up) and Wal-Mart would end up negotiating in some way with the other funders, as noted above – that would give activists throughout the US an opportunity to lobby against the company receiving funding and who needs that if you’re a company executive?
• The sheer scale of this deal is incredible. Wal-Mart is the world’s largest retailer and has 1.4m US employees. Yes, 1.4m! If 10-15% of staff take up the options, you’re looking at 150-200,000 students.

Good luck to the company and the staff as they explore this opportunity – it will be well worth tracking.