In addition to attracting top workers, tuition reimbursement benefits help employers reduce turnover. In the case of Cigna, every $1 spent on education assistance equaled $1.29 saved on talent management costs. Tuition reimbursement programs also give employers a way to reduce their tax burdens.
What is employer reimbursement program?
What is Employer Tuition Reimbursement? A tuition reimbursement program enables a company to cover some or all of the costs of an employee’s education, as long as the program of study and related expenses fall within the guidelines of that company’s specific policy.
What are the benefits of employer tuition reimbursement programs?
Knowing their organizations are invested in their future, employees of companies that offer tuition benefits feel valued and are more likely to remain with the company. An Accenture study found that for every dollar companies spend on an educational reimbursement program, they save $1.29 through reduced employee turnover.
How much does the US spend on tuition reimbursement?
A 2015 survey found that U.S. companies spend 28 billion dollars annually on educational assistance programs, with over 83 percent of organizations offering some type of tuition reimbursement benefit.
How often does an employer offer tuition assistance?
On average, however, only two to five percent of eligible employees use tuition assistance programs, and 43 percent of working professionals are unaware if their employer offers this benefit. Educational assistance programs vary by employer.
How are tuition reimbursement programs similar to 401k?
Many view the benefit as “free money,” similar to a 401k benefit provided by employers. By utilizing these programs, you can avoid taking out loans and save yourself thousands of dollars over the course of your education.
