Tuition reimbursement is a program through which employers will often help to pay their employees back for education expenses. These programs are great for employees, as they can help to reduce or even eliminate their student loan costs. However, what many people fail to realize is that tuition reimbursement can also be extremely beneficial for the company itself. Struggling companies probably should not consider this option, but successful businesses definitely should. If you are a business owner interested in learning more about how a tuition reimbursement program can improve your organization, keep reading below.
The first benefit your company can receive by instilling a tuition reimbursement program is the influx of more qualified employees working for your company. By investing in their education, you are drawing in individuals who have the knowledge and drive necessary to help improve your business. They will also have better suggestions on an employee survey. If you want to ensure that you are hiring the most qualified employees available, it is a good idea to invest in the training and education they need.
Popular With Millennials
Tuition reimbursement programs are, of course, most popular with millennials. Implementing a tuition reimbursement program at your business is the best way to appeal to this population. This is definitely a good thing for your business, as millennials account for over 20% of the workforce now. They are also the most educated generation, which makes them high quality job candidates. Tuition reimbursement programs are the best way to attract new millennials to your company. Keep this in mind. It is a huge advantage.
In addition to making your employees more qualified, tuition reimbursement programs can also improve employee loyalty. Some companies fear that employees will take advantage of tuition reimbursement programs and simply look for a better job elsewhere once they are more qualified. However, that is very rarely the case. Tuition reimbursement is one of the top motivation factors for an employee to maintain at a company. If your business provides opportunities for newly trained and educated employees to utilize their skills and move up within the company then you will likely find that they remain loyal to your organization.
Tuition reimbursement programs are not just for current employees. This could also be a great tool to draw in new talent. If you are one of the few organizations that offers a tuition reimbursement program, you could present this as a central benefit to potential employees. With tuition prices constantly rising, many people would be glad to work for a company that can give back by helping them pay for their education.
Return On Investment
When considering a tuition reimbursement program, it is important to remember that this is not just a benefit for your employees. It is an investment for your company, just like VoIP phone service. Along with improving employee loyalty and education, tuition reimbursement can also improve your company’s overall productivity and earnings. Employees who receive education assistance are often more motivated to improve, which can be shown through an increase in sales. If you are willing to spend on your employees, they can earn that money back for you ten times over.
Lastly, another benefit of the tuition reimbursement program is that your company can receive tax breaks from it. This is a benefit that even the best enterprise resource planning cannot offer. Currently, the IRS caps tax-free tuition reimbursement at $5,250 per year. Still, this is a significant amount that can help towards and employee’s current education or student loans. Employers are then entitled to a deduction of up to $5,250 paid on behalf of the employee.
If you are a business owner interested in increasing your employee retention and drawing in new, more highly qualified employees you should consider implementing a tuition reimbursement program. This is one of the most commonly heard employee suggestions in every industry. By investing in your employee’s education, your business can reap several of these benefits. Refer back to this post the next time you are seeking out new benefits to offer your employees.
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