Posted on: February 19, 2025
Investing in employees not only drives business growth but also builds a skilled, future-ready workforce. Education programs enhance career development, boost job satisfaction, and strengthen retention—reducing recruitment and training costs. They also foster a culture of learning, encourage innovation, and demonstrate leadership’s commitment to employee growth. Plus, these programs can provide tax benefits for employers, making them a smart investment in a more engaged, productive, and positive workplace.
Employee education programs can include tuition assistance, certification or degree programs, professional development seminars, and online learning. Let’s explore the corporate benefits these programs provide that can lead to growth for your organization in 2025.
Business Growth
Investing in employee education programs isn’t necessarily the first thing you may think of when trying to grow your business, but it shouldn’t be overlooked. Companies that invested in these programs experienced a 24% increase in profit margins, according to a 2024 LinkedIn study.
A global survey by Gallup found that companies are 17% more productive and 21% more profitable when they offer training to engaged employees. In particular, companies offering comprehensive training programs yield 218% higher income per employee than those without these programs. A LinkedIn survey showed 59% of employees say training improves their overall job performance, with 51% noting it gives them more self-confidence.
Employees who expand their skills—whether through training, seminars, or advanced degrees—apply that knowledge directly to their roles. The result? Tangible business growth, from higher productivity to smarter decision-making. Well-trained employees who are engaged with learning and development opportunities align more closely with your organizational goals, contributing to stronger business results.
Skills Enhancement
Training is more important than ever because skill sets are rapidly changing. By 2023, LinkedIn had found that skills sets for jobs had changed 25% since 2015. That number is predicted to double by 2027. Additionally, 89% of learning and development experts felt building employee skills is important to navigating the evolving future of the workplace.
Investing in the growth of employees with deep institutional knowledge ensures they have the skills needed to support your organization’s evolving direction. This not only reduces turnover—saving the costs of recruiting and training replacements—but also fosters loyalty, engagement, and morale.
Professional Development and Career Growth
Gallup reports that nearly 90% of millennials consider professional development and career growth opportunities essential in a job—and cite “career growth opportunities” as the top reason for changing employers.
Investing in employee education is a powerful way to provide these opportunities, especially for high-achievers who have a deep psychological need for growth. These are exactly the employees your organization wants to retain.
Job Satisfaction, Engagement, and Employee Retention
A Harvard Business Review study found that business leaders view tuition assistance as a strategic tool for retaining, motivating, and developing employees. In fact, 90% of those surveyed recognized its value. The graphic below highlights additional insights from the study.
Beliefs of Leadership About Offering Tuition Assistance
Upskills Workforce
Engages Employees
Positive Outcomes Outweigh Cost
Research appears to back up the trust many leaders put in employee education as a growth driver. LinkedIn’s 2023 Workforce Learning Report found that 93% of employees would stay longer at a company that invests in their careers.
For companies focused on employee retention, employee education directly aligns with three of LinkedIn’s top five reasons people seek new jobs: the desire to do meaningful and challenging work, opportunities for career growth within their current company, and access to learning and development. These factors rank third, fourth, and fifth, respectively.
Tax Benefits
Investing in education benefits your business—and offers a valuable tax advantage. Employers can provide up to $5,250 per employee per year in tuition assistance as a tax-free benefit. Employees also receive the same federal tax break on this amount. However, the $5,250 annual limit applies to all education-related contributions, including both tuition reimbursement and student loan repayment assistance. Any amount exceeding this threshold is subject to taxation for both the employer and the employee.
Grow Your Business With Help From BenefitEd’s Experts
BenefitEd’s team of experts offers a variety of education benefits, including tuition benefits, student loan repayment, help implementing provisions of SECURE Act 2.0, and more. We customize our secure benefits platform to your organization’s needs and specific employee benefits to provide you streamlined support. Contact us today to start educating and training your workforce for unprecedented growth in 2025 and beyond.