Are you revamping your benefits package for employees? Have you considered adding tuition reimbursement as a benefit to full-time employees?
Not quite as many companies offer this benefit today as they did back in 1993 when a survey by Hewett Associates showed that 99% of employers provided some type of reimbursement.
However, it is still considered a valuable benefit to workers and many businesses recognize that fact and include it as part of their package.
By offering even partial tuition reimbursement, companies usually get applicants that are better qualified and more educated. They value education and see employers that offer this benefit as ones they want to work for.
Companies also see workers that are more dedicated and stay with the company for longer.
Because the employees feel that the company cares about them and invests in their future, they are more invested in the company’s success.
Investing in the Future of the Company
These companies that offer tuition reimbursement know they are getting something out of the deal. They are investing in their own future.
Better educated employees are more qualified for promotions and most companies would agree that it is better to promote from within whenever possible.
After all, who knows the culture and policies better than someone who already works there?
When employees choose to take advantage in company-paid education, it shows that they are serious about their jobs and future careers.
As the article, “What Your Degree Says About You” states, it is important to find a degree that suits the person. While other factors may be included, many people choose an education based on what career will make them happy.
If your employee is furthering his or her education in a field that directly relates to your company and the job, it is a good indication that the person expects to be happy in the field for long-term. Since turnover is costly to businesses, this is good news.
Businesses can even gear the benefit in the direction they want employees to take by providing limitations or requirements. For instance, a company may only reimburse for tuition when the class or degree directly relates to a current job.
It may also require the employee to continue working for a set number of years to qualify for the benefit either before attending school or after completing the course or program.
Companies often base reimbursement on grades, with a graduated scale.
A student with an “A” would receive more money than one that graduated with a “C” grade. This ensures that the employee is taking the opportunity as seriously as he or she should be.
Providing tuition reimbursement for employees is a smart move for most companies. They can attract better applicants and be better positioned to keep the ones they hire for longer.
When it comes time to promote, they only have to look at the current pool of employees to find someone who is qualified and dedicated enough.
About the Author: Joyce Morse is an author who writes on a variety of topics, including small business and education.