There is always news about companies that cut employee benefits to save money. Yet, other companies are doing their best to keep employee benefits and add on to the benefit package. An attractive benefit package can help retain qualified employees and save the company money. When a company has to continuously recruit, hire and train new employees; this will not only hurt profit but customer service. One such benefit that many employers should consider offering is tuition reimbursement for continuing education. Here are the advantages of offering tuition reimbursement.
Improve Employee Skill Set
One of the benefits of offering employees educational benefits is to improve the employee’s skill set. The employee already has the basic knowledge of the business especially ones that have been with the company for long period of time. Allowing employees to continue learning through tuition reimbursement will give them knowledge and education. By improving the employee’s skill set; the employee will stay with company long term. Employees will become committed to the business.
Employees who gain extra skills through education will also gain confidence and morale. When an employee is well trained and knowledgeable in the task at hand; high self-esteem will increase which will also increase productivity. An increase in productivity will allow a company to run in a more efficient manner. Increased in productivity can also increase profits.
Another benefit for offering tuition reimbursement is that an employee may feel more valuable to the company. An employee who feels valued will be more loyal to the company. Employees who are loyal are more likely to stay longer.
Recruiting and Hiring
Employees who stay longer with the company will reduce the costs of recruiting, rehiring and training new employees. But the chance of improving skills with company can also attract and retain qualified employees. Tuition reimbursement can be used as a valuable tool for recruitment and retaining.
Tuition reimbursement could mean a tax deduction for the company. Tax deductions will be available for every employee who takes part in the tuition reimbursement plan. Federal tax deductions can always help a company.
Offering tuition reimbursement is a way for a company to invest in current employees as well as attract qualified new ones. A company will have to set guidelines on what classes are covered under the tuition reimbursement program. A company wants to make certain the courses are going to be directly related to the companies’ goals.