How to Offer Employee Tuition Reimbursement

Tuition reimbursement programs can foster employee retention as well as the professional growth of a business's team. Here’s how to offer tuition reimbursement to your employees.

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With tuition soaring, 76% of employees say they’re more likely to stay with their employer because of a tuition reimbursement program. Yet, 4.4 million Americans left their jobs in September 2021 — a nod to a trend that has become known as the Great Resignation. Offering a tuition reimbursement program is one win-win strategy employers can implement in their efforts to become more attractive to new applicants and retain current employees.

Here’s what you need to know about offering employee tuition reimbursement.

What is tuition reimbursement?

Tuition reimbursement is an arrangement between an employer and employee in which an employer will cover a certain percentage — or all — of an employee’s tuition for a study program, college degree or another form of education.

Employees must meet certain requirements before the employer will pay. For example, some employees must pay the full tuition price before they’re reimbursed. Employees may also need to take a specific course set that is covered by the tuition reimbursement program. Many companies are already offering tuition reimbursement to their employees including Amazon, Apple, Starbucks, Walmart and Lowes.

How to offer employee tuition reimbursement

Your company’s HR team can design an educational assistance program that they will also manage. A considerable amount of effort may go into maintaining this program, enrolling employees and keeping up with current tax laws, so it’s important to ensure your HR team is up to the job. Here are a few of the factors to consider when creating your company’s tuition reimbursement program:

Offering tuition reimbursement can help alleviate some recruitment efforts, as this attractive benefit may help retain employees longer.

Tuition reimbursement benefits for employers

Employers can also benefit from a tuition reimbursement program in multiples ways, such as:

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