Employee Tuition Reimbursement

1622 Words7 Pages
Tuition Reimbursement Programs Student’s name: Institutional Affiliations: Tuition Reimbursement Programs The constitution of the United States of America, by way of several legal acts, allows employers to provide their employees with reimbursements for either graduate or under-graduate education. The Benefits USA 2010/2011 survey put the percentage of employers who offer tuition reimbursement to their employees at 84.7% (Garcia, et al, 2011). Consensus lacks in academia regarding whether tuition reimbursement is a worthy cause or not, especially taking into account the volatile economic circumstances afflicting many American businesses today. In this paper, we review the program to identify its advantages and disadvantages to employers, and draw conclusions on whether it is an economically sound effort. Tuition reimbursement programs provide employees across the United States with a strong incentive to further their education by either paying part or all of the cost. It is estimated that $10 billion is put into the furtherance of employee education every year, and about six million people benefit from tuition reimbursement (Acemoglu & Jorn, 2008). Some organizations make tuition reimbursement available to all employees while others offer tuition reimbursement to employees in specific cadres. Employers set particular conditions for employees wishing to benefit from the program. According to the Benefits USA 2010/2011, 63.7% of employers require that employers continue to work for them for at least 15 months after the completion of their education (Loewenstein & James, 1999). Tuition reimbursement programs pack many benefits for employees. For a start, studying and working simultaneously can be very straining on employees. Because of the strain, it can severely compromise the competence of an employee. Tuition reimbursement programs are
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