Whether your business is one of the many that has been feeling the effects of the worker shortage or if you want to make sure you stay one step ahead of the ongoing trend, it’s important to continuously evaluate what you are doing to retain employees. 

One particularly effective strategy involves offering voluntary benefits, like tuition assistance or reimbursement, to your employees, both new and old. If you’re unsure whether now is the time to add tuition benefits to your perk package, here are some things to consider:

What’s a Tuition Benefits Program, and How Does It Work?

A tuition benefits program is an initiative that provides your team funding to cover the costs of higher education, such as tuition, books, and supplies. There are many different ways to structure these programs, but the most common approach involves a reimbursement-based program.

Here’s a basic rundown of what such a program might look like:

• You research state college tuition rates in your area
• You create a reimbursement program that covers a specified number of credit hours per calendar year
• Employees sign up for classes in approved fields
• After passing and providing proof of a requisite grade, you reimburse them the tuition costs up to an annual limit

Many employers require workers to enroll in classes or degree programs that align with the company’s needs, hence the mention of “approved fields.” For example, if you run an IT firm, you might only offer tuition benefits for classes in software development, cybersecurity, and related fields.

With regard to “requisite grades,” most businesses have a grade requirement to qualify for reimbursement. For instance, your policy may state that workers must earn a B or higher to be eligible for tuition reimbursement. 

3 Advantages of Offering Tuition Benefits

Offering tuition benefits can help your business do the following: 

1. Attract Top Talent

Workers who are making a career change or who are interested in starting their professional journeys while also expanding their horizons will find tuition benefits programs appealing. They can start working, earn a wage, build tenure with the company, and go to school all at the same time.

Tuition benefits programs are also appealing to individuals who are looking for a fresh start. Older individuals who have jumped into a new field, for instance, will value the fact that your company is supporting their long-term development. 

In general, offering tuition benefits not only makes your job offers more attractive but also positions your organization as forward-thinking and supportive.  

2.  Retain Key Workers

Your current team members will also appreciate the opportunity to expand their horizons. They can earn a degree and open the door for advancement opportunities, all thanks to your program.

Furthermore, education benefits can also reduce turnover by addressing one of the primary reasons employees leave: lack of career growth opportunities. By providing tuition assistance, you empower workers to develop new skills and take on new challenges. That not only benefits your workers but also helps fill the company’s pipeline with capable workers. 

3. Enhance Employee Skills and Productivity 

Lastly, offering tuition benefits can lead to a more knowledgeable and productive workforce. As employees pursue further education, they’ll bring new skills and perspectives back to their roles, which can lead to increased innovation and improved processes.

For example, an employee who takes a course in project management or data analysis can apply those skills directly to their work. They will contribute to your company’s success and help those around them be more productive as well. 

Ready to Expand Your Benefits Program? AssetHR Can Help

A competitive benefits program can go a long way in making your business a premier landing spot for top talent, and tuition assistance might be a valuable addition on top of what you already offer. 

If you’d like to learn more about the potential advantages of tuition benefits and other voluntary perks, connect with AssetHR. As a leader in the human resources space, our expert consulting team can help you strategically modify your work perks and attract top talent.

Posts that the posts are not intended to provide legal advice and that readers should consult with their attorneys on any matter covered in the article.