Tuition reimbursement may sound like an unnecessary expense, but your employees aren’t the only ones who benefit. Putting together an attractive benefits package often means weighing the pros and cons of different options. From reducing turnover to benefiting from newly gained skills, your business may decide the expense is worth it for the benefits you receive.
Attracting New Employees
Recruiting new employees can cost your small business a lot of time and money, and it’s tough competing with larger employers. A few strategically chosen perks can make your small business stand out as an ideal place to work. Benefits like tuition reimbursement can increase the number of candidates who apply for openings. An increase in applicants gives you more options, so you can find a quality employee who matches your needs. The little things a company offers can be a deciding factor for someone who is actively looking for a new job.
Retaining Current Employees
High turnover rates cost your small business significantly. When an employee leaves, you face expenses for recruiting and training the new employee. The change can also disrupt the workflow of your office until the new employee settles in. Offering tuition reimbursement can improve your employee retention rate and save your company money. Not all employees want to take classes, earn degrees, or get additional certifications. But the ones who do may decide to leave for a company that offers tuition reimbursement. By offering the perk, you hold on to the employees who want the option of taking classes without spending their own money.
Increased Employee Satisfaction
Offering tuition assistance may help your employees feel valued because you’re willing to invest in their advancement. Earning a degree or job-related certification can give the person a sense of accomplishment. Learning new information, especially if it relates to the job, can leave your employees feeling motivated and excited to apply those things to work duties. Not only does increased employee satisfaction help with retention, but it may also lead to increased productivity. Someone who feels appreciated and has a high degree of job satisfaction may be more productive than someone who feels unappreciated.
New Skills and Knowledge
An employee who takes classes may not finish the degree for several years, but each class offers new skills and information that they can apply immediately. And you get the benefit of having fresh ideas introduced into your company. The employee may help streamline the work processes or come up with a new way of doing things that completely changes the way you do business. It’s an easy way to stay on the cutting edge of new concepts in your industry.
Offering tuition reimbursement doesn’t mean you end up paying it for every person. Some employees have no interest in taking classes. Some may take a class here and there but not complete an entire degree. You can also set limits on how much you pay. You might limit the amount to a percentage of the tuition costs, a number of credits or classes, or a flat amount. Some companies have certain requirements like earning a minimum GPA or working for the company for a set length of time.
The extra perks you offer can make a difference in attracting and keeping employees. Investing in educational opportunities keeps your employees current in the field and supports employee satisfaction.