Employer Tuition Reimbursement
In today’s ever growing workforce the job market competition is becoming increasingly higher and more difficult with each passing year. This is forcing people to go back to school and pursue an education or further expanded their education beyond an undergrad degree. Although more people are going back to school they all are not footing the bill all by them self. It is 2014 and more employers are giving the opportunity of going back to school to their employees by providing education assistance programs or tuition reimbursement. According to the Elearning Glossary on elearners.com, tuition reimbursement is defined as “An employee benefit offered by employers to fully or partially cover the costs of tuition for post-secondary or training courses” (Eleaners , 2012). When it comes to tuition reimbursement there are numerous amounts of factors a company has to plan by and employees must know to get their true worth of a company’s tuition assistance program. Employees are the only ones who see education as an investment.
With more companies each year offering tuition reimbursement as part of their employee benefits package, they too see the value and investment pay off for helping their valued employees further their education. Some employers might cover all expenses up to a certain amount, while others pay a percentage of the total costs (Tucker). However, it is important to note that only well established companies have the necessary resources available to fund a tuition reimbursement program. In addition to having the adequate funds, employers ask that a tuition assistances program participant maintain high grades to receive the maximum amount of tuition reimbursement. Although this varies from company to company as some will give you a standard base reimbursement for C’s and A’s some require employees to remain employed with that particular company for a certain amount of years after completing the course in order to avoid paying back the reimbursement (Tucker). Five years is a typical restricted period (Tucker). While some employers recognize the benefit of having an educated workforce and are willing to pay to help their employees obtain that education, these employers generally recognize that their competitor’s value educated employees as well (Smith, 2009). It is in a company’s best interest to not only invest in their company, but make sure that their invest pays off. In order for a company to be certain it receives the maximum ROI a contract is usually written up, and agreed upon between the employer and employee. Lisa Smith from Investopedia gives the following are examples of contract arrangements:
• The employee agrees to work for set period of time after receiving reimbursement (Smith, 2009).
• The employee pays the cost up front and receives reimbursement after completing each class or semester (Smith, 2009).
• The employee must maintain a certain grade point average (GPA) to qualify for reimbursement...