How Tuition Reimbursement Benefits Your Employees

Posted on: April 17, 2024

In today’s workplace, rapidly changing technology requires employees to constantly learn new skills and applications. Learning is an essential part of our growth as individuals and professionals. Smart employers also need to anticipate new areas of growth and determine how they’ll fill new positions with employees with the right types of skills.

As an employer, you have the opportunity to help your employees – and your business – thrive by offering benefits to help your employees achieve their goals, whatever they may be. In the process, you can also prepare your business for the future by offering tuition reimbursement programs to your employees. To consider how you can maximize these benefits, read Strategies for Creating an Effective Tuition Reimbursement Program for ways to craft and implement a plan that will boost participation rates and benefit your business today and going forward.

Enhance Professional Development

Supporting continued education with tuition reimbursement can improve employees’ current skills and help them learn new ones. More education brings increased performance and productivity, adding value to your company. Professional development also gives employees a better opportunity to grow their careers and contribute to your company in an elevated role.

Improve Morale

Investing in the future of your employees shows you value them and want them to stick around. Employees who take advantage of tuition reimbursement should feel confident in their role and future prospects at the company. And even if employees don’t want to utilize the benefit right away, they can feel at ease knowing the opportunity awaits them when they are ready to grow professionally. A University of Warwick study showed happiness made people about 12% more productive, so this benefits your business as well.

Boost Wellness, Productivity, and Retention

Providing benefits that help employees achieve their financial goals can alleviate stress and boost wellness. In a Capitol One CreditWise survey, 73% of Americans said finances are the number-one cause of stress. The survey found that younger generations (Gen Zers at 82% and millennials at 81%) are even more stressed about finances. A 2023 PwC survey found that, of employees who struggle with finances, nearly 45% of them find themselves distracted by their financial situation at work. The survey also showed that financially insecure employees are also twice as likely to seek new employment.

How to Employee Participation in Tuition Reimbursement

Providing tuition reimbursement can help pave the way to a more prosperous future for your employees by saving them on education costs now and positioning them for better career prospects later. Despite those benefits, only 5 to 10% of eligible workers participate in tuition reimbursement programs.

In our whitepaper, we outline three basic steps to designing an effective tuition reimbursement program that will foster active participation:

  1. Tailor your program to organizational goals.
  2. Consider employee needs and communicate.
  3. Decide how you’ll administer your plan.

Partner with BenefitEd for Administration

Offering tuition reimbursement benefits employees in a variety of ways, which improves your company as a result. With BenefitEd, your employees can use this benefit to continue their education within a current role or learn the skills required for a new role, and we’ll act as a third-party administrator, freeing up more time for your company to spend elsewhere. Learn more about how BenefitEd’s Tuition Reimbursement works, and contact us today.

Editor’s Note: This post was originally published in December 2022 and has been updated for accuracy and comprehensiveness.