Invest with Tuition Reimbursement
Employers can provide tuition reimbursement as a strategic employee benefit incentive to help attract and develop employees to excel and grow with the business. Tuition reimbursement typically helps employees with fees and expenses regarding course registration, materials, training, etc. Many perks exist when employers offer tuition reimbursement:
- Low turnover rates and stable retention rates enable savings in recruitment and hiring costs.
- Employee loyalty, appreciation, and professional image increases.
- New skills and knowledge acquired contribute to increased productivity.
With the time, effort, and money directed towards providing a tuition reimbursement program, employers will also want to ensure that employees who benefit from the program stay and not leave and take their newfound skills and talent to work for a competitor. To offset this concern, many employers require employees to make certain commitments to the company in exchange for having their tuition and related expenses paid. Examples include requiring the employee to:
- Work for a minimum timeframe after the completion of the program before expenses are reimbursed.
- Maintain a specific grade point average (GPA) to qualify for reimbursement.
- Repay any funds already paid if the employee terminates employment before completion of a course.
Also, when planning to establish a new or revise a current tuition reimbursement program, keep the following suggestions in mind:
- Know your budget to effectively manage costs and expenses.
- Provide clear program guidelines on the conditions for approved tuition reimbursements.
- Review the company’s employee handbook to ensure that relevant policies (especially those regarding advancement opportunities) are updated in alignment.
- Engage in on-going discussions with employees concerning their individual interests and growth opportunities within the company – all of which can be memorialized with an individual development action plan.
Supporting employees in their educational growth and allowing them to apply their learning on the job in ways that translate into increased productivity and profit can speak volumes of how a company can experience a high return on its investment in employee education.
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