A valuable lesson: Tuition reimbursement pays off
An old Chinese proverb says, "Learning is a treasure that will follow its owner everywhere." More and more organizations are seizing the value of this treasure by providing career development opportunities to their employees. In February 2005, Hewitt Associates released a study of nearly 1,000 major U.S. employers that showed 78 percent of companies provided educational assistance options to their workforce, with nearly 75 percent specifically offering tuition reimbursement. (1)
While a fairly high number of companies provide career development and tuition reimbursement programs, the word may not be getting out to employees. "Organizations need to communicate what's available more frequently," said Michael Dodson, operations manager of Tuition Reimbursement Services for Ceridian. "Oftentimes these types of programs may be viewed as just another cost program and there's not a lot of follow-up." Employers can remedy disconnects in communication by providing annual or quarterly reminders and include pertinent information explaining the basics of the program and answering questions about the benefits of enrolling. Also, the complexity of the plan itself can be a barrier. Employers need to offer easier access to their career development and educational assistance programs and make enrollment simple. In some cases, companies have very limited, restrictive plans, which can lower employee participation rates. Offering recognition when employees complete the program may also help to increase participation. Good things come in threesEmployers can reap three basic benefits by providing continuing education vehicles to their employees. For starters, employee retention tends to increase since higher education degrees typically are multi-year programs that stretch the education timeline. When employees are receiving tuition assistance for such programs, they tend to stick around longer. Not only that, career development satisfaction is a big deterrent to employees seeking greener employment pastures elsewhere. A 2004 SHRM and Career-Journal.com article cited dissatisfaction with potential career development as the number two reason to begin searching for a new job (compensation and benefits was the number one reason). Enhanced recruitment is another upside to offering career advancement opportunities to potential employees. "These types of benefits are a good tool to put in front of job candidates," Dodson explained. "Some studies show that the quality of prospective employees is higher because they are attracted to companies that have these benefits." Experts at the Wharton School of Business observed that employees who utilize tuition assistance benefits have stronger motivation and morale, as well as higher productivity levels. (2) A third benefit to companies, as well as the employees enrolled in the programs, is overall improvement of company performance. While employees are attending school, employers get the advantage of new knowledge and innovative ideas put into practice right in the workplace. Employees, in turn, have the opportunity to apply their education to real business situations. And, their educational pursuits may even open the door to promotional opportunities within their organizations. A new school of thought
As the educational landscape has evolved over the past several years, Ceridian has found that a shift is occurring in tuition administration as more participants are enrolling in institutions that do not fit the traditional university model. Publicly traded institutions such as the University of Phoenix and Strayer University are having an impact on the administration of tuition plans. This shift is due to a movement toward registration and payment per class, which could be as frequently as every five or six weeks versus the traditional semester model measured in months. As a result, organizations are looking for more progressive ways to increase the value of tuition reimbursement programs and align them more strategically with company objectives. Ceridian understands this need and is responding by providing an innovative solution to help organizations better measure and control participation levels, cost, course relevance and alignment with organizational objectives. With Ceridian's Tuition Reimbursement Services, our team of dedicated experts can provide a complete answer to your company's needs -- from implementation enrollment to customer service and payment options. A proven recruiting and retention tool, Ceridian Tuition Reimbursement Services can help your company reduce the administrative burden of tuition reimbursement paperwork while helping you recruit and retain top talent. Contact your Ceridian representative today for a valuable lesson on how to outsource your company's education administration. Sources
- "College Conundrum: More Companies are Offering Educational Benefits but Workers do not Take Advantage," BenefitNews.com, May 2005.
- "The Case for Employer-Sponsored Tuition Assistance: Invest in Employees or Lose Them," April 2005.
