Gateway to Degrees

Should Your Company Offer Tuition Assistance for Employees?
More than 60% of companies offer some form of tuition assistance, but very few know the true impact of these programs on their bottom line. Tuition assistance can be a great job perk and a good recruitment tool, but are they a good return on investment for companies?

According to fve studies from the Lumina Foundation, the answer is a resounding "yes."

The studies, commissioned by Accenture, sought to uncover the value of major employers' tuition assistance programs. The companies that participated were Discover Financial, Cigna, Advocate Health Care, Regional Bank, and a large commercial technology company with revenues over $100 billion.

The results were unanimously positive. Discover Financial found that for every dollar they invested into tuition assistance programs, they received $1.44 worth of cost savings in avoided talent management expenses. Discover Financial found employees who utilized the program had much higher rates of promotions and internal transfers, were more productive, missed less work, and stayed with the company longer.

In fact, each participating company measured similar returns. All five studies showed a positive return on investment when measuring their tuition assistance programs. Cigna found employees who utlized their Education Reimbursement Program achieved 43% incremental wage gains and had more career opportunities in the company. Regional Bank employees who utilized the company's Tuition Reimbursement Program saw a 25% increase in promotions.

The bottom line is clear - investing in employees can save companies money, improve opportunities for employees, and incease productivity. It's a win-win for companies and employees. Interested in learning more? You can view a summary of all of the findings here.

If you have employees interested in returning to college, Gateway to Degrees, an initiative of the St. Louis Regional Chamber can help!