Companies That Help Employees Pay for College

Companies that help employees pay for college are investing not only in the employee, but also in their own company’s future. A college education improves an employee’s options while expanding their skill sets. It’s a win-win situation for the company and the employee.

Tuition reimbursement benefits both company and employee.

About Companies That Help Employees Pay for College

Employee retention, employee satisfaction and employee performance are all higher at companies that help employees pay for college. In an era where most adults will be on their fifth or sixth job by the time they are in their early 30s, employment longevity is not as common as it once was. Companies that help support their employees' education reap the benefits of increased loyalty through job longevity.

These benefits include employees who may already hold college degrees, particularly in fields related to technology, employee management, human resources and public relations. These areas are constantly changing and evolving with new technology. A computer science degree is current for a few years, but new innovations mean that constant education is a must for any industry professional who wants to stay up to snuff.

Reducing Employee Turnover

Companies facing high rates of employee turnover can be frustrated by internal quality controls and training. A corporation may not be as willing to invest in 9 to 12 months of quality training for employees they cannot guarantee will be around for the length of the training, much less an extra year beyond.

Reimbursement Programs

Of the various employee tuition programs that companies may offer, the reimbursement program is another win-win for the employee and the corporation. A survey of students at the University of Wisconsin in Milwaukee showed that over 50% of students were on an employee reimbursement program. Reimbursement requires employees provide the initial upfront costs and maintain a B average (in some cases a C average), as well as complete the course. When they meet these requirements, they are then reimbursed for the out-of-pocket expenses.

While the initial burden for the first round is on the employee, the right timing can allow the reimbursement to pay for future classes, with the initial out-of-pocket expenses being banked at the end of the educational cycle. Through reimbursement, the company is assured that the employee will do his or her best and the employee has a goal to work towards.

Top Companies That Offer Tuition Reimbursement

According to Computer World Magazine, the top ten companies in the United States that offer employee tuition reimbursement include:

• Chicago Mercantile Exchange Holdings Inc.
• Cerner Corp.
• University of Miami
• American Fidelity Assurance Co.
• General Mills Inc.
• Hilton Hotels Corp.
• Philip Morris USA Inc.
• Principal Financial Group Inc.
• Publix Super Markets Inc.
• Ernst & Young

Not a Free Ride

Companies cannot, by law, offer employees a free ride through education reimbursement. The government has a cap of $5,250 on the tax-free amount that a corporation can pay for an employee’s tuition. However, some companies will go the extra mile and pick up the taxable tab as well.

Before heading back to school or writing school off as too expensive, check out what your company will pay for and what their spending cap is.

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