It’s the time of year when organizations begin to evaluate next year’s benefits packages. What is the cost-benefit to various health care, dental, and vision packages? How many vacation days should employees get to keep them motivated? What is the best way to encourage employees to take vacation days?
Research by Harvard Business Review Analytic Services (HBR-AS), sponsored by Strategic Education, Inc. shows that one benefit deserves more attention: tuition assistance (TA) benefits.
HBR-AS surveyed 294 members of its audience (75% in executive or senior management roles, 13% in middle management, and 12% in other grades) who are involved in their organization’s decisions about offering TA benefits in the U.S. They find that while 89% of surveyed business leadership agree that, for organizations in their industry, there is strategic value in offering employee education benefits, 39% say their organization has not evaluated or made updates to its tuition assistance program within the past three years.
Investing in, or simply updating your TA benefits program, could be key to motivating employees and increasing the competitive advantage of your workforce.
According to the report, 91% of business leadership surveyed agree that tuition assistance benefits programs can give organizations a competitive advantage by upskilling their workforce, and 88% agree that an organization can make its employees feel more engaged at work by offering tuition assistance benefits.
Eighty-five percent of business leadership surveyed agree the positive outcomes from offering tuition assistance benefits outweigh the costs of paying for employees’ education. Additionally, 80% of surveyed business leadership agree tuition assistance benefits programs can help organizations build a more diverse and inclusive workforce.
With this in mind, how can employers update their TA benefits so that it meets their employees’ needs while advancing the organization’s goals? Here are three ways companies can get more out of their TA benefits offerings:
1. BE STRATEGIC
Setting up—or updating—a TA program needs to be done strategically to suit your organization’s priorities while also fulfilling the education needs of your workforce. Start by identifying the workplace skills needed to meet long-term business goals. Then ask yourself how your TA program might meet those objectives. Identify gaps within the organization and see how your employees can further their education, develop key skills, and support your overall business goals.
Be sure to make the program straightforward and easy to enroll. Upfront payment of tuition instead of reimbursement may be a preferred route.
According to the surveyed business leadership, the most common challenges organizations experience with their TA programs are that employees do not feel they have enough time to pursue education while working (45%), a lack of metrics to understand how the TA program is performing (39%), and employees lack awareness or information about the TA program (35%).
Communicate early and often to employees about the program. Similar to other benefits like health insurance and vacation days, employers need to clearly articulate the offering and how to take advantage of it.
2. PROVIDE SUPPORTS
Organizations could be doing more to help employees feel like they have the bandwidth to enroll in education programs. When asked what additional resources the organization offers, if any, to support employees’ completion of their studies, the most common answer was “none” (44%).
Unlike other benefits, pursuing an education can require a substantial time investment on the employees’ part, and they need to understand what their investment entails and the value they will likely receive from it. Addressing the financial barrier to education by paying for tuition is only one part of the equation. Showing them the value of their time investment and supporting them through the education process can be equally—and arguably more—important.
Consider partnering with schools that offer flexible education models, through which employees can learn virtually and at their own pace. Offer mentoring, coaching, or personalized support to help guide an employee through their educational journey. One HR executive interviewed suggested that organizations pair students with alumni who have completed similar programs to help give students the confidence they need to succeed.
3. MEASURE IMPACT
Too often, organizations fail to measure the impact of their tuition benefits programs. Nearly 40% of business leadership surveyed reported their organization lacks metrics to understand how their tuition assistance program is performing.
Be sure to continuously measure the impact on employee retention, skills and competencies gained, participation and completion rates, as well as feedback from employees on the experience. Some education benefit platforms offer measurement tools to track a return on investment (ROI), particularly as the employer demand grows to justify TA programs.
HR leaders and employees agree—tuition assistance benefits can be extremely valuable. Like any employee benefit, TA programs should evolve to reflect the changing needs of employees and workforce demands. Even small adjustments may yield big rewards. And, by measuring impact, an organization can ensure a strong ROI, setting itself apart from competitors to develop and attract top talent.
Importantly, prioritizing these benefits sends a powerful signal to your people and organization: We value you and we want to support your professional growth.