Investing in Employee Tuition Reimbursement is a great way to invest in human capital. Having Tuition Reimbursement as one of your Employee Benefits helps incentivize your employees to pursue the training and skill development that will enhance their contribution to your company, and also provide a measurable ROI.
What is the ROI on Tuition Reimbursement?
Employers found that by offering tuition reimbursement as a benefit, and encouraging continued education, they retained valuable employees. When Cigna, working with the Lumina Foundation and Accenture, evaluated its tuition reimbursement plan , it found that for every dollar spent on employees’ college tuition, the company recouped that dollar and saved $1.29 more in “talent management costs,” an ROI of 129 percent.
A good way to keep your high-achieving, high-quality employees is to give them an incentive to keep learning, growing, improving, and bringing that learning into the company. It also promotes hiring from within because employees in tuition reimbursement programs are interested in advancing their careers. You want to ensure that your employees have opportunities to grow and advance within your company. Some tuition reimbursement programs develop contracts which state that the employee must remain a part of the company for a set period of time after education financing comes to an end.
If you are trying to attract high quality candidates to your organization – and particularly Gen Z and Gen Y workers, then tuition reimbursement is worth implementing. Younger hires are interested in knowing that your company offers them the opportunity to develop, learn, and advance their career.
Companies which measure the ROI on attraction and retention should factor in the cost of losing employees and replacing them, the time lost for initial onboarding and training, and the increased productivity of incentivized employees who want to improve their careers and the company which is helping them grow.
At Health Risk Services, we work with plan managers to understand the data and what it means for their plans. In particular, we have expertise in developing Tuition Reimbursement benefits and assessing the ROI of those benefits.
We would like you to know more about how Health Risk Services can assist you with a 2021 plan to increase flexibility for your members, so please schedule a Complimentary Consultation with us.
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