August 16,2014 by:
There are only few situations which can be considered as a win-win scenario for both employees and employers, and employer tuition assistance is one of those. There are more than a few benefits that can be used by firms and business owners on one hand, while on the other hand are also beneficial to their employees. The trick with tuition assistance lies in the fact that employers can keep and further improve their best assets while employees have a chance to further develop and expand in their field of expertise.
We are all aware of the costs of education and we all know that fresh college graduates usually have some debts left which need to be paid back, and when you add the costs of living on top it’s obvious there is very little or no money left to continue schooling or further improve and develop new skills. Tuition assistance program allows employees to continue their education at the expense of their employer, the money received for educational purposes is also tax free as long as the amount is under 5250 dollars and it covers all tuition expenses, school supplies and any fees there may be. It also covers the expenses of books needed to finish the course. Extracurricular activities such as sports or hobbies are not covered as well as transportation costs or meals. Although it does not cover all costs there are, this is still the best way to gain an additional degree while working at the same time.
As far as employers are concerned they can use tuition assistance program to keep workers with their firms for longer periods of time. Because courses are usually done in the form of night school classes, they usually last longer and once finished employees are bound by their contract to remain with the firm for a certain period of time. In this way, company can keep its employees for more than a few years during which they will attend the course, and then by using the clause in the contract can keep them afterwards (5 years is usually time frame set by employers). By adding another clause to the contract where an employee will be granted a raise once the course is over, and maybe adding another detail such as further earning increase later on, business owners can also use tuition assistance to build up their workers confidence and loyalty. Tuition assistance program presents very nice tool which can be used in a long run, keeping labor force with a company.
There is another reason why firms choose tuition assistance programs, it’s always cheaper to invest into the younger talent than to hire already developed experts since their salaries will always be higher and the company has no means to keep them longer than a few years. Should a better offer present itself, it may be hard to keep your star employees unless you have a certain clause in the contract (as described above). Any way you look at tuition assistance, it still is a great opportunity for both employees and employers, first will get education for free and latter will get loyal and improved work force.