Learning never stops, but for certain employees, this means furthering their education by getting a Master’s degree, or a similar course to improve their “market value” and make it easier for them to be promoted or get the jobs they want. However, these courses can be quite expensive, which may deter employees from doing so.
Luckily, some companies offer to sponsor their staff’s education or at least provide the benefit of having their tuition reimbursed (fully or partly), given that the program of study is useful for the company or the industry it’s in.
But these sponsorship and tuition reimbursement programs aren’t just for the sake of philanthropy. Apart from the fact that these programs often entail a contract wherein the employee is required to work for the company for a period after completion, there are many other ways these types of programs can heavily benefit the company.
Skilled and Capable Workforce
Perhaps the most obvious reason why companies offer these programs is that it develops their workforce, making them more capable and equipped. An employee who furthers their education can be a more useful and indispensable tool in the company.
For example, if your company decides to provide reimbursement or sponsorship for a Business Analytics course at the NUS Business Analytics Centre, they’ know they would have an employee who has the skills and knowledge that can help the company’s strategic planning. A skilled and capable workforce isn’t only more productive, but they’re more innovative in handling issues in the company.
Reduce Turnover and Improve Retention and Motivation
One of the biggest issues companies are facing is the high turnover rate of employees, especially those in their 20s and early 30s, who are quick to jump ship to another company/opportunity with better benefits. One way to boost retention and minimize turnover is by providing incentives such as sponsorship or tuition reimbursement programs.
An employee who’s ambitious and driven enough to further their education to further their career is more likely to stay and be more motivated to work and take advantage of the program. Additionally, employees who join the program are often required to work for a certain number of years in the company after graduating as part of the conditions. This ensures retention and a high-quality workforce.
Be More Attractive to Talent
Once word gets out that your company offers educational support programs and benefits to its employees, expect more qualified applicants to send in their applications. The good thing about this type of program is that unlike other monetary benefits and incentives, employees who are attracted to educational support programs are more likely to be more ambitious and productive.
Tax Deductions
The government provides incentives to companies who sponsor or provide tuition reimbursements to their employees in the form of tax deductions. However, when looking at the bigger picture, this serves more as a bonus as the other advantages can easily outweigh these tax deductions.
The Takeaway
Sure, employee education support programs can be quite expensive. Still, the benefits listed above can easily outweigh the cost and provide the company not only a skilled, motivated, and loyal workforce, but puts itself in the radar of qualified and driven applicants.