Why should companies pay for workers’ education? This question troubles several business owners since they’re concerned about comparing the benefits and demerits of funding their employees’ learning. So, how do these expenses help your company grow? We’ve seen different organizations providing what they call “education repayment,” in which the company pays for employees’ work-related learning. It’s an employee benefit that allows the workforce to become better-skilled, thereby contributing to profitability.
Since the emergence of the pandemic, business experts have been speaking in favor of more training programs for employees. Let’s see how learning options benefit workers.
Benefits of offering tuition refunds to your workers
Surveys indicate that 77% of employees are prepared to upskill today. “Upskilling” refers to an employee improving their work-related qualities to become more resourceful and productive. Hence, it shouldn’t surprise you that many business owners are already providing education assistance to workers today. An NBER survey found that some 88% of business organizations in 2003 funded workers’ learning. So, how does this spending benefit their business? We’ll explain the advantages of paying for employees’ higher education here to motivate more business owners to invest in educating their workforce. So, let’s describe a few compelling reasons why companies should offer education repayment to employees.
1. Leverage online courses
Now, you can leverage online courses to educate your workforce. Distance learning allows professionals to enhance their academic credentials without sacrificing work-related responsibilities. So, we suggest organizations offer digital MBA programs to their workforce. By pursuing MBA General Online Program, your employees can match pace with transforming business norms and practices.
This degree helps your employees transform into well-educated, competitive, and highly-skilled workers. Many companies are recruiting MBA graduates during the pandemic. You can now pay for your folks to become business administration experts. Besides, these online courses are both flexible and convenient.
2. Get tax breaks
You can now save money by paying for a worker’s education. With educational assistance programs, educational expenses for every employee each year are tax-deductible if they don’t exceed $5,250. A business owner should leverage these cost-effective strategies to educate their workers.
Just make sure that your organization has a written policy that meets federal taxation-related guidelines. Then you may deduct $5,250 (at max) for each worker per annum from your taxes without any hassle.
3. Improve people’s productivity
Funding your employees’ education helps you create a highly skilled workforce, thereby fostering an environment of productivity within your organization. Several studies have indicated that employees with tertiary education are more diligent than those with secondary.
Moreover, your workers are more motivated to improve themselves professionally when companies offer education repayment opportunities.
4. Dissatisfaction with graduates
Reports have shown that employers are dissatisfied with the academic progress of graduates today. They’re disgruntled with the “soft skills” of these freshies and don’t consider them capable of doing the job right. A Gallup survey shows that just 11% of business owners believed strongly that American colleges were preparing students correctly.
That’s why higher education ensures that your recruits stay well-prepared to work for the company. That’s another reason to pay for their tuition.
5. Attract fresh talent
Modern-day employees are expecting employers to fund their learning. We’ve already heard about workers who exhibited a desire to work for companies offering student debt repayment benefits. A business owner should consider attracting fresh talent during this age of immense competition with education reimbursement programs.
In today’s time, your capability of grabbing the attention of well-educated and highly-skilled employees depends upon the nature of tuition refunds you’re offering the workforce.
6. Retain more workers
When you’re willing to pay for employees’ academic endeavors, you can expect more people to continue serving in your organization. Studies have already shown how millennials expect employers to offer financial wellness benefits. So, tuition refunds can convince more people to stay with your company.
Moreover, the costs of recruiting new workers aren’t affordable for small-sized businesses. Thus, retaining your current workers with tuition refunds may seem like the best strategy for your company to survive.
7. Reduce hiring costs
Now, you can reduce hiring costs by offering tuition refunds. How is that possible, one may ask? You reduce worker turnover with these education assistance programs. When employees are provided a chance to study on the company’s payroll, they usually stick around longer than average employees. As they get educated, you don’t have to recruit someone else to fill the gap; a win-win situation for both.
So, instead of training new hires, educate the ones already working for you.
8. Survive the pandemic
The pandemic prevented business organizations from pursuing their long-term objectives. So, what can today’s business owners do to survive the pandemic in this age of recession? Well, we suggest business owners pay for their workforce’s higher education to achieve their goals effectively. Well-educated employees create a productive workforce, decreasing turnover and eventually leading to more satisfied customers. Undoubtedly, your business can survive COVID-19 by reskilling your workers to meet changing consumer demands.
9. Strengthen your company
In the end, you can immensely strengthen your company and empower your organization by giving tuition refunds to your workforce. While attracting competent candidates to the organization, these education assistance programs significantly improve your reputation. Most of the time, employees are motivated by these academic initiatives to join your company. They demonstrate how your company is invested in workers’ training and education.
Moreover, these programs foster a relationship of loyalty and dedication between the organization and its employees. Therefore, don’t risk the productivity of the organization. Pay for your employees’ higher education to create a well-trained workforce in 2022.
Modern-day employees expect business owners to provide education repayment. Paying for employees’ education can help your organization become more productive and profitable. You can retain more workers by funding their learning while reducing recruitment expenditures. Moreover, companies can receive tax relaxation by offering “tuition refunds” to the workforce. We’ve seen how business owners are generally dissatisfied with graduates’ education. So, you can remove the gaps in their skills by paying for higher education. That’s how paying for your workers’ learning can help your company grow.