As the job market continues to grow, employers have focused their efforts on attracting and retaining employees. One of the most effective ways to do this is by offering a competitive benefits package for employees. While benefits such as healthcare and paid vacation are staples, tuition reimbursement is also emerging as an effective strategy.
But, because tuition reimbursement is a relatively new benefit, many employers wonder if the investment in this program is worth it. When deciding if tuition reimbursement is a good benefit for your employees, it is important to consider the benefits it brings for employers as well.
Benefits of Offering a Tuition Reimbursement Program
Attract and retain top talent
Studies have shown that 80% of employees are interested in attending school while working. So, offering a way to help employees pay for their schooling is a great way to attract employees. This benefit can be a deciding factor for many job seekers. Likewise, many tuition reimbursement programs require employees to remain employed for the duration of their schooling, meaning your turnover rate will improve.
Save money on turnover costs
Doing the math, it costs about $2,000 per employee in onboarding costs. However, offering a tuition reimbursement program greatly reduces these costs by retaining employees and saving on onboarding costs.
Boost company culture and employee engagement
By offering a tuition reimbursement program, your employees will feel valued in their roles, meaning they will be more engaged on the job. This sense of loyalty will also lead to higher retention rates, saving your business time and money.
The IRS allows companies who offer tuition reimbursement to employees to deduct up to $5,250 per year per employee as a tax benefit according to section 127 of the tax code. Under this section, a written tuition reimbursement policy will qualify as tax-free employer-provided assistance.
So, is offering a tuition reimbursement program worth it? After considering the benefits, you may be drawn to the conclusion that offering a tuition reimbursement program can be a great tool for engaging and retaining employees, as well as saving your business time and money.
Save Money with Operation Graduate
At Operation Graduate, we help employers reduce their turnover costs by providing tuition reimbursement benefits. Our low-cost, tax-free program is quick and easy to set up, and will make your employees stick around for at least the length of their program. The best part is, you don’t pay unless an employee chooses to enroll. Our program is low-risk, and will save you money in onboarding, training, and turnover costs.
Ready to find out more? Click the link below to schedule a meeting with us to discuss how your business can benefit from tuition reimbursement benefits.