Have you considered paying some of your workers' tuition to continue their education? In an era where employee engagement is a top priority for businesses, tuition assistance is a much-sought-after company benefit. But it also has the potential to be a burden on your bottom line, so you must determine whether it ultimately provides a good return on your investment. The following points will help when developing a tuition reimbursement policy for your company.
Business investment or just another perk?
The opportunity to subsidize your employees to further their education requires careful decision-making. If your only reason for this offer is simply to increase employee engagement, you may want to consider other popular options such as flex-time or remote work opportunities. These options tend to improve employees' work-life balance while being less expensive to implement.
On the other hand, if you do want to support your employees' careers by helping them acquire specific skills, your organization has the chance to benefit from their improved knowledge and abilities. Furthermore, you will also build a strong employer brand and benefit from attracting top talent in a competitive marketplace. Remember that you may be able to offer up to $5,250 tuition assistance per year per employee and deduct it as a business expense on your taxes. Be sure to read the fine print on the IRS instructions regarding this tax break before you proceed.
ROI may be diffuse
Training Magazine highlights the 125 companies each year that excel in employee training. This eminent list includes some of the nation's largest and most prestigious companies, and 99 percent of them offer tuition reimbursement. These businesses have determined that employee education is a worthwhile investment, however the true return might come in the form of lower employee turnover, greater productivity, better job candidates, and greater worker loyalty.
Roll out tuition benefits thoughtfully
If you do decide to offer a tuition program, you may wish to limit it to workers who have been with your company for a specific length of time. You can also specify the GPA that the employee has to maintain, and you can limit the areas of study to those that will directly pertain to the skills your company needs. Further, you may want to spend time talking with a worker who expresses interest in enrolling in school to learn how he or she will balance the commitments of job, class time, and homework.
By offering a well-considered tuition reimbursement policy, you will be partnering with your employees to build their success. At the same time, your company can benefit from their improved expertise and develop strong employee loyalty.