What is a tuition reimbursement policy?
Everybody wants to take a higher education to improve their quality of life, but not everyone is given an opportunity to do it. Aside from the time required, people usually don’t have enough funds to support their education needs. Fortunately, there are a wide variety of educational programs available for people looking for financial aid. One of these is the tuition reimbursement policy.
Tuition Reimbursement Policy Definition
Tuition reimbursement is a program offered by employers to help their workers or employees go back to college and earn the degree they desire. Depending on the policy of the program, this kind of financial aid can cover almost everything, from books to instate tuition fees. However, in some cases, the beneficiary still needs to pay for other expenses needed.
As with career development benefits, tuition reimbursement policy not only helps employees get the advanced training they need, but it also benefits the company as well. With the constant increase of competition in the market, many organizations consider providing this kind of benefit to develop a much stronger workforce.
In fact, according to the study conducted by the Society for Human Resources Management (SHRM), 61% of employers provided financial assistance to employees who want to pursue undergraduate courses. In addition, 59% of organizations provided financial help to individuals who desire to take up graduate courses. Companies believe that providing financial benefits is a great way to make and retain educated staff.
How tuition reimbursement policy works?
The types of tuition assistance may vary from company to company, but usually they follow one or more of the following rules:
Degree requirement. In many cases, companies require the beneficiary to pursue a course that has some relevance to the company he or she’s working for. It wouldn’t make sense if a food company will reimburse for an employee whose taking a higher degree in music.
Grade requirement. Most of the time, employers only provide financial assistance to those who they think will help them the most; so they mostly just support those who have a high GPA and maintain at least a “B” grade average.
Loyalty and employment time. When the company gives tuition reimbursement policy, it is making a big investment with the participating employees. Usually, companies require the employees to work with the company for a certain amount of time after completing the coursework.
Amount. The amount given to employees may vary depending on the capability or desire of the employer to provide funds. Some companies offer full financial assistance, while others only cover a specific amount.
Reimbursement process. Reimbursing the amount given to cover your educational expenses may also vary depending on the company’s policy. Some organizations reimburse the full tuition expenses after completing the coursework, while others provide flexible and long reimbursement term.
The Benefits of Tuition Reimbursement
- Getting the chance to pursue the degree that you want.
- Improving your skills and market value.
- Having the opportunity to receive extended benefits, since most of these policies are given not just to employees, but for spouse and children as well.
- Having job security and assurance.
- Attracting and maintaining good workers.
- Having qualified, more educated, and loyal employees.
- Saving company cost, since there’s no need to hire new employees.
If you don’t really have enough budget at hand to support your education needs, then consider applying for a tuition reimbursement policy. With it, you no longer need to worry about applying for college scholarships or loans, since your company can already support your college education.
Depending on the company you’re working for, there may be some upfront cost, but usually, that’s too little for you to worry about. Just think about how much it will benefit you if you can pursue your degree and complete the education you want. Not only you can demand for higher salary grades, but you will also be exposed to more job opportunities.
Explore the financial assistance programs in your company and talk to your HR manager or employer about the terms and conditions of a tuition reimbursement policy.