Tuition Reimbursement is Not Feasible for Many Workers—How Education Benefits Can Evolve to Fit the Needs of Valued Employees

A couple of weeks ago,?I wrote?about aligning learning outcomes with workforce needs. This week, I want to take a step further and think about employer-sponsored education benefits, an essential aspect of providing the opportunity for working adults to return to postsecondary education. Education benefits are an effective tool for encouraging #employeeretention —an employee is more likely to remain with their employer if that employer invests in their professional and personal development. Moreover, as I’ve said before, employers’ investment in their employees’ education yields a?significant return on investment. However, to be effective, #education benefits must go beyond the more common #tuitionreimbursement programs and contain additional financial, academic, personal, and professional support structures to help employees persist and complete their #credentials.

Tuition reimbursement is the most common education benefit offered by employers. Employers may award “employees up to $5,250 annually in tax-free educational assistance for undergraduate or graduate-level courses.” Employers may deduct education-related costs from their income tax liability (Association of American Universities). Eligible employees who apply for this benefit may receive partial or full reimbursement for their educational program, depending on the employer’s offerings and the cost of the employee’s desired program. While tuition reimbursement ultimately minimizes an employee’s out-of-pocket cost for their education, this benefit works for only those individuals with the resources to pay tuition upfront.

More effective modes of educational assistance begin with employer #partnerships and higher education institutions. Built into each partnership should be a tuition payment program that charges the employer directly and offers the employee?discounted #tuition rates. This structure removes the initial financial burden tuition reimbursement places upon the individual employee. There are, of course, additional costs associated with #postsecondaryeducation, like course materials, transportation, and WiFi. To further encourage employees to enroll in a credential program and ease financial barriers, employers may consider extending their education benefits to cover these costs that prevent #enrollment altogether for some.

In addition to tuition assistance, employers need to consider additional measures to support their employees to and through #degree attainment. Some supports to consider include:

• College counseling resources.?Help employees make informed decisions about their degree or #certificate programs. Employers can bring a counselor in-house or contract with a third party. Counseling helps ensure employees’ education will translate to their professional advancement and enhanced work product?for the employer.
• Time and space during the workday to study.?Employers’ providing a quiet area and a couple of dedicated studying hours during the work week supports employees’ educational pursuits and helps alleviate some stress of carving out time to complete assignments.
• Mental health support.?While well-resourced employers may contract with a mental health provider (online or in-person), #mentalhealth resources are commonly included in #healthcare benefits. Yet, employees may need to be made aware that therapy, for example, is covered by their insurance policy. Employers should ensure information about mental health resources is easily #accessible to employees pursuing an advanced #credential.?
• Childcare.?#Childcarebenefits are lacking among most employers in the United States. For some, taking advantage of education benefits is only feasible with also having access to some form of #childcaresupport. Working full-time, managing a full- or part-time course load, and taking care of children and/or paying for #childcare is an impossible balance. Supporting an employee through their educational pursuits means supporting other aspects of their life so they can ultimately be a more significant (and happier) contributor to the organization.

A few innovative #highereducation institutions offer employers and employees benefits as well.?UMass Global?is one of these institutions that has built an employer #partnership structure that not only curates academic programs to fit employer needs but also understands that employees need more than #financialassistance to attain a degree. These institutions offer supplemental services for employees/students and, therefore, remove the burden of locating additional support providers from the employer.

“Education benefits” should refer to wrap-around support rather than financial support alone. Implementing additional mechanisms that help employees enroll in and persist through a degree or #certificateprogram displays the value the employer places upon their #workforce. It also provides employees the opportunity to not only enroll in a credential program, but also to manage the other priorities in their lives. From the employer’s perspective, the return on investment of expanding education-related benefits occurs through a more #skilled workforce, enhanced #retention, and healthy company culture. Employers may develop comprehensive education benefits internally with the help of third-party organizations, or they can partner with a forward-thinking institution dedicated to supporting employers and employees alike to reach their respective workforce goals. No matter where employers derive these benefits, it is imperative that employees have access to the resources they need to pursue their educational and professional goals while balancing their other priorities.