What is tuition reimbursement exactly?

I’m glad you asked, programs vary but most follow these steps:

1. Student signs up for campus or online classes.
2. Student completes class and provides proof to human resources.
3. Company writes out a big fat check for the amount of tuition that the student initially paid.
4. Everyone wins.

What have you done for me lately?

Maybe that phrase reminds you of Janet Jackson”s better days or maybe it echoes your current sentiments about the workplace. We have all caught ourselves wanting to ask boss man what it is that he does exactly or what the company does for you in exchange for your hard work. Many workers are finding a satisfactory answer as they take advantage of tuition reimbursement programs. Perhaps it’s time for you to trade your disgruntled grumblings in for a happier tune and talk to your employer about how you can get involved in a reimbursement program. There are also some tax benefits to seize from these arrangements as well; up to $5000 of tuition reimbursement is tax-free.

What’s in it for me?

So why would a corporation want to pay for your school? Many corporate mantras and mission statements say their most valuable asset are the employees and now they are putting their money where their mouth is. More and more organizations are investing in their employees and seeing the value of an educated workforce. Workers who go back to school have opportunities to sharpen their skills, increase productivity, gain leadership training, and polish their professional image, all of which benefit the company’s bottom line in the end. Speaking of the bottom line, many companies actually save money by training current employees instead of recruiting new ones. Additionally, employees who are involved in reimbursement programs are more likely to stay with the company and report higher job satisfaction.

Tuition Reimbursement Facts

• Four in five companies say they offer the benefit, according to a national member-company survey for 2000 by the Society for Human Resource Management.
• One in three small companies offers reimbursement, according to the U.S. Labor Dept.
• According to Xerox, 1,700 employees are currently taking advantage of its tuition reimbursement program, and some 40 percent study online.
• 62 percent of the respondents who had received training or mentoring said they were very likely to stay with their current employer. And 61 percent of employees who were mentored said they were likely to remain in their jobs for the next five years.