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.
Investing in employees through education funding in Canada can reduce your business’ turnover rates while gaining new skills at your disposal.
Tuition reimbursement, also known as tuition assistance, is when an employer pays for the cost of an employee’s education. This reimbursement is a form of investing in employees, as a business might decide to pay a predetermined amount to cover part or all of their worker’s certifications. Such employee benefits can help improve their skills while benefiting the company at the same time.
Here are six main reasons why employer tuition assistance programs can benefit all parties involved. Your business may decide the expense is worth it for the benefits you receive.
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, like this tempting employee benefit, can make your small business stand out as an ideal place to work. Benefits like a tuition reimbursement plan or further training opportunities can increase the number of candidates who apply for openings.
An increase in applicants gives you more options, so you can find a quality candidate who matches your needs. The little things a company offers, like education assistance, can be a deciding factor for someone who is actively looking for a new job.
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 hire settles in. Offering tuition reimbursement can improve your employee retention rate and save your company money when it comes to turnover costs.
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.
Offering tuition reimbursement programs 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, moving them forward in their career paths. Learning new information, especially if it relates to the job, can leave your employees feeling motivated and excited to apply them to work duties.
Therefore, investing in employees helps with the business’s retention, but it may also lead to increased satisfaction, productivity, and employee engagement. Someone who feels appreciated and has a high degree of job satisfaction may be more productive than someone who feels unappreciated.
By offering your staff the opportunities that a reimbursement program provides, you can indirectly boost their outlook on work and gain improved efforts simultaneously.
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 staff member may help streamline the work processes or come up with a new way of doing things that completely change the way you do business. It’s an easy way to stay on the cutting edge of new concepts in your industry.
Your workforce may also want to obtain certification in industry-related skills or your business’ specific processes, such as obtaining Intuit QuickBooks Certification. These relevant certifications will hold your company in good stead from the outset and into the future.
Offering tuition reimbursement doesn’t mean you end up paying it for every one of your workers. 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, several credits or classes, or a flat amount.
On top of limiting the outright spending on education fees, there are also government grants and assistance programs that can lower the overall costs your company takes on. For example, the Ontario job grant program helps companies pay for needed training of employees.
The CRA also offers education expenses tax deductions to help in this. Learn more about the eligibility of tax deductions on education fees. The government sees tuition tax credits and education funding in Canada as a necessary way to improve occupational skills, so all parties involved benefit.
An employer reimbursement program can improve your business’ retention rate and instill a sense of loyalty in your workforce. Employees that see their employers caring for them and offering education funding in Canada could potentially keep them loyal and hard working for years to come.
If they know you as the business owner are backing their education and learning, they see that you care and are more likely to stay with the company as you both grow.
When it comes to companies’ tuition reimbursement plans, businesses will have specific requirements the employee will need to meet in order to receive funding. Since education reimbursement is a type of investment on the employers part, they can stipulate goals that must be reached for the employees who apply.
A tuition reimbursement policy will state the minimum grade or GPA the employee must obtain in order to have their fees covered by the employer. The policy can also set a specific length of time for the employee to stay at the company while the education is ongoing and after completion.
Therefore, if your business is considering investing in staff through tuition reimbursement programs, it is best to have a policy in place to govern the reimbursement limit, the length of necessary employment, and the employee’s minimum grade average.
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.
Why not try using QuickBooks Online to help keep your finances in order, so you have the cost to cover education funding in Canada for your workforce. Start your free trial today and get the company’s tuition reimbursement program up and running in no time.
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