Benefits of Employer Tuition Reimbursement - Good for Companies and Employees

One of the first steps to increasing your own personal financial situation is increasing your marketability!  If you work for a large company chances are your employer will cover some if not all of your tuition expenses with a tuition reimbursement policy. That is if your degree or certificate program relates to your current position. Having an employer pay for your tuition benefits you in several ways:

1. College is expensive no question about it; however, investing in your education is one of the best debts you can attain.  Having your employer pay for your tuition alleviates any burdens regarding how you will foot the bill for your loans after you graduation!
2. Being an educated worker, makes you more of an asset to your company. Your company has invested in you, which results in you being of more value to your industry.

REMEMBER: Your employer will most likely expect you to commit to a short contract requiring that you maintain a certain GPA. Other clauses might include that you must stay employed for “x” years after completing your degree otherwise you may be required to pay some if not all of the tuition bill back, and your employer might require you to pay the tuition upfront reimbursing you back after you complete the course.

Tuition assistance benefits are part of your compensation package. Make a list of your educational goals and what you want to gain from accomplishing each goal; decide whether utilizing your company’s tuition plan is the right choice for you.

So what if your company does not offer a tuition assistance plan to employees? Is it hopeless that you could change the policy? In an answer, no! Start thinking about how receiving an education could help you improve or change your current work environment for the better. Perhaps communication channels could be improved. Could you verbalize to your employer how a degree could enhance and benefit the organization?

Here are some benefits of a corporate tuition reimbursement policy to your employer:

1. Employee loyalty – Companies that help pay for college are more likely to inspire a sense of allegiance making it less likely that the employee will leave. This, combined with any requirements that an employee stay on for a certain length of time means less employee attrition.
2. Broader range of skill sets – When employees have a broader range of skill sets, it means the company also has a broader range. This can open up the company to new opportunities.
3. Tax benefits – The company may be able to get a tax break on educational assistance depending on the circumstances. More information about fringe benefits here (PDF).

You are your own best advocate! Be ready to defend why your employer should invest in you!  Make it happen! Self improvement is in your hands. How will you make a difference in your future?

Contact Bryant & Stratton College’s admissions department to discuss the many certificate, associate, and bachelor’s programs that are offered.

About the Author

Rebecca Lauterbach, MBA is an adjunct professor for the on-line campus teaching business and office technology courses.  For the past 12 years Rebecca has also worked professionally for a major communications company. Rebecca is currently completing her D.B.A. online.