Highlights
- By offering financial support for education, companies empower employees to pursue career goals and enhance their skill sets.
- Tuition assistance programs incentivize employees to stay with the company, reducing turnover and recruitment costs.
- At Access Point, we help companies enrich their employee benefits at a competitive rate. Contact us to speak with a benefits professional!
A competitive benefits package can be a powerful magnet for attracting new talent and boosting long-term engagement. One often underrated benefit is a tuition assistance program. This not only empowers employees to pursue their education goals, but it also benefits your company by encouraging the development of valuable, transferable skills.
Considering tuition assistance for your business? Read on to discover how it works and how it can give your company a significant competitive edge.
Let’s jump right in!
What Is a Tuition Assistance Program?
A tuition assistance program (TAP) is a benefit offered by some employers to help their employees pursue continuing education. Typically, it provides financial assistance towards tuition, fees, and sometimes even books for approved courses or degree programs.
How Does It Work?
Companies can take different approaches to implementing tuition assistance programs. Some employers can reimburse their employees after completing a course, while others decide to pay directly to the educational institution.
JetBlue and Stellantis, for example, partnered with universities that offer online courses at a low to no-cost fee for employees seeking further education.
Before you implement a tuition assistance program, you might need to consider the following aspects:
- Who’s eligible? Set clear guidelines on how long employees need to be with you to participate and if there are specific programs you support.
- Coursework approval: Ensure employees get approval for courses that align with their (and your company’s) goals. Documentation might be needed.
- Financial limits: Decide on a budget for each employee, including limits on yearly credits or courses.
- Course performance: Will you offer full or partial reimbursement if an employee fails or drops a class?
- Level of education: Will you support certificates, undergraduate degrees, or even graduate programs?
- Reimbursement: How will tuition be reimbursed (directly to the school or back to the employee)? When will it happen (after each class or upon completion)?
- Beyond tuition: Will you cover additional expenses like textbooks or mileage for commuting to classes?
Benefits of Tuition Assistance
Investing in your employees’ education isn’t just a nice perk, it’s a strategic move that offers a wealth of benefits for both your company and your workforce.
Here’s how a tuition assistance program can supercharge your business:
Attract Talent
In today’s competitive job market, a tuition assistance program can be very attractive for ambitious individuals seeking professional growth opportunities. It demonstrates your commitment to their long-term success, making you a more attractive employer.
Employee Retention
Employees who feel they have opportunities for advancement are less likely to leave. Tuition assistance programs help you retain top talent, saving you time and money on recruitment and onboarding costs.
Rather than seeking new opportunities elsewhere, employees may instead transfer to a different department within the company. Tuition assistance programs can offer an opportunity for employees to increase their skills and transfer to a department that better suits their career ambitions.
Skill Building
Implementing a tuition assistance program can build employees’ skill sets, which in return can benefit your company in increased internal promotions, employee loyalty, and discovering hidden talent within your business. For example, Cigna’s tuition reimbursement program saw a 10% increase in promotions and an 8% increase in employee retention.
Increased Productivity and Problem-Solving
Education often leads to a deeper understanding of the industry and improved problem-solving skills. This translates into a more efficient and productive workforce, benefiting your bottom line.
Tax-Deductible
Tuition assistance and reimbursement programs are tax-deductible. Capped at $5,250 per employee, you can offset your expenses through tax deductions. This can provide an invaluable return on investment and assist with decreased employee turnover rates.
Attract Top Talent, Retain the Best: How Access Point Can Help
Whether you already have a tuition assistance program in place or want to incorporate one, it is important to weigh the pros and cons to ensure it’s the right path for your business.
If you’d like to explore your options for tuition assistance programs or are simply looking for more employee benefits to offer, AccessPoint can help.
We offer a full suite of benefits customized to your business needs. From premium medical plans to 401(k) plans and Employee Assistance Programs (EAP), we can help you design a compelling employee benefits package at a competitive rate.
Contact us today to see how we can assist you with your benefits needs!