What Are the Benefits of Tuition Reimbursement for Employers?

Tuition reimbursement, or tuition assistance, is when an employer offers to pay for all or a percentage of tuition fees for current or future employees. A tuition reimbursement program offers many benefits to both employers and employees.

Significance

Attending school and paying tuition while working is a very difficult task for many people; with tuition reimbursement programs, employees can receive monetary help while also setting up certain scheduling considerations to balance work and school.

Benefits

The main benefit for employers is the ability to attract and retain valuable employees. Human capital is crucial to success and tuition reimbursement increases the knowledge, skills and abilities of employees. (See Reference 2)

Types

Some tuition reimbursement programs offer full reimbursement while others only offer a percentage of reimbursement. If the company only offers a percentage, it is usually done in two ways: either a flat percentage or a percentage based on the grades earned, such as 75 percent reimbursement for an A and 65 percent for a B. (See Reference 1)

Features

Most tuition reimbursement programs require employees to sign an employment contract; this promise to stay with the company for at least a certain number of years protects the employer's investment in the employee's education.

Considerations

Tuition reimbursement programs also improve the working relationship between employees and management because both sides enjoy benefits that are aimed at improving the entire organization. (See Reference 1)

References

• Benefits of Tuition Reimbursement Programs
• Does Tuition Reimbursement Benefit Employers?