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Are you looking for a way to turn education into a potential engine for employee retention, mobility and growth? A tuition benefits program can help employees level up their skills while staying with the organization. Read on to find out how you may be able to optimize this program so it delivers value.

A tuition benefits program can offer an organization benefits that extend beyond traditional perks. When optimized and aligned with business goals, the programs can help improve overall job satisfaction and growth.

Tuition assistance demonstrates that an organization is willing to invest in its people, which can potentially strengthen employees’ emotional connection to the company and may also reduce turnover. If workers can see a clear path to grow their skills without leaving, they may potentially feel more valued.

As business models and technology evolve, upskilling can be incredibly helpful to employees. Tuition assistance can aid employers in bridging skill gaps with employees who already understand the culture, customers and operations.​

While microlearning and upskilling can be effective ways to enhance workforce skills, a company may need people with a broader vision. Structured tuition programs may help give employees the chance to learn skills for potential future leadership roles.​

In some ways, employers may consider tuition assistance a short-term expense. That’s because by providing a pathway to education and skills attainment for a workforce, the assistance has potential to create a more emotionally connected employee. Additionally, some companies that have implemented tuition assistance programs have seen an increase in employee retention and motivation.

While tuition assistance programs can be beneficial to both companies and employees, such programs may be underutilized.

of working adults by Encoura revealed that 72% of adult prospects are encouraged to pursue education when their employers offer tuition assistance. Among employees who work for companies offering such a program:

• Only 28% reported using it in the past
• Those who have previously used it include 17% of undergraduate and 37% of graduate participants
• Nearly 70% of respondents said they never used it

What does this tell us? Employees aren’t utilizing tuition assistance programs enough, especially those who don’t yet possess a bachelor’s degree. Here are some reasons why.

Education assistance programs have a history of being poorly administered, whether that means not providing clear insight into how to access such programs or how to best utilize them once employees have enrolled. Typically, employees get a list of colleges or institutions that are eligible for tuition assistance. They can then choose which one they want to attend. It could be helpful for employees if employers offered, in addition to a list, insight into what each program might offer and how it may be relevant to career goals.

According to research from the , affordability is often a barrier for employees seeking education. In many cases, those who wish to enroll must pay initial tuition costs and request reimbursement later.

Some employees even find themselves bearing the full cost of tuition if they quit or get terminated from their jobs for any reason. This often creates a barrier to access, particularly for employees earning lower salaries.

Even when employees use the money their employers offer, the IRS imposes a limit of $5,250 for tax-free contributions toward an individual employee’s education. While some employers may offer more than that limit, employees may find they have to either cover the balance themselves or adopt a longer timeline toward completion of their certificate or degree.

If an employee chooses to use a tuition benefits program, depending on the employer, they may only be able to pick a program that aligns with their job functions or current role. If an employee doesn’t like their current position or responsibilities, there may be little benefit to either the employee or employer to pursue education on a company’s dollar.

Employer tuition programs may work better with an agile approach. Employers who take a passive approach may ignore key metrics and fail to recognize the results. A more agile approach, on the other hand, involves identifying concrete business objectives like increasing revenue, building a skills pipeline and improving workforce stability. A tuition benefits program, when skillfully deployed, can be a means of reaching these goals.

To strengthen the impact of a workplace tuition program, a company may consider working with external organizations such as educational institutions. Such institutions may be able to offer more expertise, technological solutions and even tuition discounts that a company might otherwise not have access to.

For a company to grow and stay competitive, it needs to help ensure that its workforce has the skills to evolve and that its tuition program aligns with talent needs. This starts with understanding where an organization currently stands and which skills employees may need to achieve future business goals.

A company may consider offering advisory services so participants in a tuition assistance program can get tailored help understanding their options and mapping out career paths.

Additionally, some employees may feel that they don’t have time to pursue an educational program while maintaining a full-time work schedule. In some cases, this may be because they’re not getting the additional resources they need to seek education. This can potentially be solved by offering flexible learning options, tailored support, coaching, mentoring and other resources.

Employees may be more likely to use a tuition benefits program if they don’t have to pay upfront. An organization can make this possible by working with educational institutions that accept payments at the end of each semester. Some organizations also pay educational costs directly, removing the onus from the student.

Some businesses lack data that could give them insights into how their tuition benefits programs are performing. They might consider working with organizations that help employees understand the benefit and return on investment of educational programs. Such companies can help employees see how completing education can help connect to career growth and mobility.

A company should also track metrics such as employee retention, skills acquisition and feedback. That kind of information can better justify investing in a tuition assistance program.

Looking to streamline your tuition benefits program? Find out how °®ÎÛ´«Ã½â€™s Deferred Direct Bill helps you reduce upfront costs and eliminate reimbursement hassles for your team.