Due to the ever changing landscape of the business world many employers often send their employees to attend trainings and seminars. Though this specialized training sessions are costly the return a company gets from it is worth the investment. A company that constantly sends its employees to school to acquire a fresh and new ideas has a greater advantage than a company that do not offer such benefit. Tuition reimbursement is one of the many benefits an employer offers to attract a potential employee or keep a good employee in their company‘s work force.
It is important for companies to send their employees to trainings or schoolings because the data used in everyday business world is changing rapidly. The importance of acquiring new equipments for any company is vital for maximizing their productivity and profitability; but any manager knows that fresh ideas are the key for selling a product. That’s why investing on employees’ educational advancement is an advantage for any business; because improving employees’ educational knowledge not only creates a better working environment it also increases the company’s productivity because of a better trained and well educated workers.
Because of fresher and newer ideas acquired from trainings schools or universities an employee could apply theoretical to real world would in-turn translate to higher profits for the company. Offering tuition reimbursement for employees “Tuition reimbursement and an allotted time for adult learning creates, at some sort , a sense of loyalty from within an employee to stay with the company. Tuition is much like a shoelace tying together self-improvement and a way to boost productivity through a better educated workforce. ” (Shultz, S. , 2007. Baltimore Business Journal) From big corporations to small business operations, managers and corporate leaders are acknowledging the advantages in sending their workforce back to school to acquire new ideas. Some misconception of company managers and leaders are that because of increasing number of people getting laid off from different jobs; that somehow it would be easy for a company to find employees that could do a job at the high level the company requires its workers. This of course is far from the reality. New workers needs to be trained and be accustomed to doing a certain job.
While he or she is on this stage the production level goes down which mean lower profits for the company. Employees Turnover to Return Rate “Low employee turnover allows an organization to focus on revenues and productivity instead of spending time in the rehiring cycle” (Turner, F. , 2002 January,. Jacksonville Business Journal). In the healthcare industry for example the number of qualified employees in the nursing field are lower than job spots that are available; creating a huge need for more nurses to fill the jobs. Employers in these field could not afford to have a huge turnover rate of employees in their respective companies.
One of the best way to promote a long return rate is to offer employees bonuses or higher salary rate. Most of the time just dangling a higher salary pay would not prevent an employee to go to another company that is willing to pay a slightly higher rate. These would create a revolving door effect on the turnover to return rate of the company; though, it may be easy to fill the position, the money invested by the company in training the new hire would cost more than just offering to send existing employees back to schooling or training classes.
A company that offer tuition reimbursement as part of their benefits package could use it as a binding agreement between the employee and the company by requiring the employee to work a certain amount of years or months for every year of tuition paid by the company. Tax Break Offering tuition reimbursement for employees is a good way for companies small or big to catch a tax break from the government. Writing off the tuition reimbursement afforded to employees as tax deductible versus the company’s annual income is better than just paying that tax dollar straight to the government.
Investing that money to the company’s employee by paying for their schooling is a money smartly spent than just paying it as company’s annual taxes to the government. Working for Higher Pay Another advantage of tuition reimbursement for employers is that employees can now require their employee to finish their training or schooling before they give them a substantial raise on their annual income. Employees in the past receives salary raises not because of merit but most of the time just because of the time they have been wittier respective companies.
Though this promotes loyalty, it also elevates the unproductive mind set in the company’s work force. Inspiring the workers to do their best and rewarding them promotes a better working environment for the workers and the employers. Employees are encourage to be more productive and creative in tackling their daily work undertakings. Promoting these type of incentives are better than just giving an employee a salary raise because of their time spent with the company as supposed to the quality of the work they provided for the company. Recruiting Tool
Offering tuition reimbursement is also a good tool for recruiting the brightest and the most creative minds to wok for a company. Most of the younger generation posses the ideas of how to attract another person that belong to that generation. Though, the current American workforce is still represented well by the baby boomer generation. A data from the 2000 U. S. Census suggest that the baby boomer generation would start leaving the workforce in six year time period. (L’Allier PhD, J. & Kolosh, K. , 2005, June) These would create a huge vacuum effect on skills the national workforce industry requires.
As these boomers’ generation leaves the workforce the younger generation would be tap to fill the vacancies left by their retiring predecessors. Therefore sending current workers to school now to acquire those skills and knowledge that would be left vacant when the older generation retires is vital to the survival of the overall workforce of the next generation. The new generation of workers would also need to service a generation that is younger than theirs and think differently from the generation prior of them.
These are the reason that constant re-acquiring of new ideas is vital for today’s workers. Hiring these young individuals to the workforce is different from hiring the prior generations. The younger generation believes that a career last only up to the time that they are ready to venture on their own as a business owner themselves. The once allured notion of landing a big corporate job or be a C. E. O. of some fortune 500 company holds no appeal for the younger generation (Halpern, J. , 2007 September 30).
Tuition reimbursement would encourage these future workers to provide their expertise to a company because they would see it as a step forward in betterment toward their future goal of independent entrepreneurship. In conclusion offering tuition reimbursement as a company incentives for future and current employees is a good way of re-investing the company’s money back to its future; because not only that it improves the quality of employees already in place but also it allows the hiring of the brighter and creative individuals that would mean fresh new ideas and better profitability for the company.
References Halpern, J (2007 September 30) The New Me Generation. , Boston Globe (electronic edition). , http://www. boston. com/news/globe/magazine/articles/2007/09/30/the_new_me_generation/ L’Allier PhD, J. & Kolosh, K. , (2005, June) Preparing for Baby Boomer Retirement, http://www. clomedia. com/content/templates/clo_article. asp? articleid=976&zoneid=25 Shultz, S. , (2007 November 11) Firm Step Up ED Efforts. , Baltimore Business Journal. Turner, F. (2002 January 4) Is your turnover rate higher than average? , Jacksonville Business Journal.