Should the Company Pay for its Employees’ Education?
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Should the company pay for its employees’ education?
Refunding or paying for employees’ costs for work-related
education could be a good way to feature to your employees’ skills and
knowledge, which they will then apply to assist make your business an
achievement. And for employers, the amount paid or refunded for a worker’s
education expenditures is a deductible business expenditure. As an additional
bonus, if the academic expenses qualify, employees could also be ready to
exclude the payment or reimbursement from gross income as what's referred to as
a working condition fringe benefit.
Communicating your training opportunities
Having a solid and effective training strategy aids to
develop your employer brand and make your organization a key consideration for
graduates and mid-career changes.
Your commitment to training will clearly be conveyed to the
career marketplace, including job seekers and recruitment professionals, by
means word of mouth and optimistic feedback by current and past employees.
Increasingly, your organization will be recognized by
recruitment professionals who seek to place ambitious applicants within your
company partly on the strength of your company’s reputation (employer brand) –
and the strength and quality of your training
Global Context
The American Council of Education guesses, for instance,
that roughly 20 percent of graduate students are becoming some financial
assistance from their employer to attend school (Babson, 1999), and
roughly 6 percent of the much larger pool of all undergraduates receive such
aid also (Lee and Clery, 1999).
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Benefits of employees’ education
Improving Worker Skills
Education reimbursement plans can inspire staffs
to develop skills that benefit your company. For instance, by offering to pay
some or all of the cost of a management training package, you can steer staffs
who demonstrate solid leadership skills toward a guiding path within your company.
Gaining Recruiting Edge
As a small employer, you may have a hard
time attracting competent applicants who may desire to work for bigger
companies offering more comprehensive benefits packages. Offering an education
refunding program gives you one more weapon in your recruiting arsenal.
Improving Employee Morale
Offering an educational refunding program
can make employees feel better about working for you, as it shows you are
interested and concerned about their futures. Happier staffs are frequently
more productive and may be less likely to leave an organization for a
higher-paying job opportunity.
Lifestyle Benefits
Offering non-career-related education repayment
programs to your staffs can also benefit you. For instance, paying for courses
that teach employees how to accomplish their weight or stop smoking can help
them improve their physical health, meaning less time off from work due to
illness.
References
Babson, S., (1999). International and Comparative Industrial Relations: After Lean Production: Evolving Practices in the World Auto Industry
Cappelli, P., (2002) Why Do Employers Pay for College? Available at <https://www.researchgate.net/publication/222577875_Why_do_Employers_Pay_For_College> (Accessed on 11th August 2021)
Kluwer, W., (2021). Furthering your employees' education is good for business. Available at <https://www.wolterskluwer.com/en/expert-insights/furthering-your-employees-education-is-good-for-business> (Accessed on 11th August 2021)
Lee, J.B., and Clery, S.B., (1999). Employer aid for postsecondary education (NCES1999-181)
When companies let their employees to educate, it will helpful in both ways.this is a win win situation for employer and employee.because an educated employee is a asset to a company. if company let reimburse of educational expenses it will give more encourage to employees.
ReplyDeleteGood stuff
Thank you Umesh for your valuable comments.
DeleteThis is a win-win situation for both organization and the employee. Reimbursing or paying for employees' costs for work-related education is a great way to build your employees' skills and knowledge, which they can then use to make your business a success. And for employers, it is a deductible expense to the business that paid amount or reimbursed for an employee's education
ReplyDeleteThank you Parami for your valuable comments.
DeleteIn a strong economy with rapidly changing skills requirements, companies that listen to their employees’ needs, tailor their education benefits accordingly and evolve their programs over time will better compete for in-demand workers—and keep those workers with them as they develop.....thank you for sharing
ReplyDeleteReimburseing or reimbursing employee costs for work-related education is a great way to add to the skills and knowledge of your employees, who can use it to help make your business successful. And for employers, the amount paid or reimbursed for employee education costs is business expenses deducted.
ReplyDeleteLearning is a continuous process and it is important to support employees in learning. To encourage them, reimbursement of education expenses is a strategy that all organisations must practice if possible. As knowledge workers are an asset to the businesses in many ways.
ReplyDeleteimportant topic Reimbursing employees education cost is an investment for employer Knowledeged, educated or qualified employee is an asset to organization. Since the current knowledge base global economy is changing rapidly it is important to have well updated work force. In addition to that such a benefits will encourage employees to be loyal and deliver best to organization , Which will help to reduce employee turnover as well.
ReplyDeleteEmployee education expense reimbursement can both strengthen the capabilities of employee and help company to retain them. This is a great way to improve current employees’ skills and knowledge, which they can then apply to help make organization success. By encouraging employee to go for external education and training will be an additional benefit rather than train them within the organization.
ReplyDeleteSome employers often provide financial support to their employees pursuing post-secondary education. In the employers point of view this kind of financial supports are investments for betterment of own Organization. Providing financial support for education is an important retention strategy and at the same time it provide a win win situation to the organization as well as to the employee.
ReplyDeleteTuition reimbursement for your employees might be an excellent approach to improve your return on investment. Turnover is minimized, your organization is more appealing to high-quality recruits, and you can establish trust with your staff. It benefits both employees and employers.
ReplyDeleteInvest in employee empowerment and education are not a bad option. The company should invest in its employees' professional development and grooming. In the long run, your employees will pay you back more than you expect. As a result, every employer should communicate and understand what type of education they should provide. Both parties will benefit from this arrangement.
ReplyDeleteImportant topic Nadn,A survey by EdAssist found that half of millennials expected their employer to help pay for further education. The survey also found that 60% of respondents would take a job with professional development opportunities over one with regular pay raises.
ReplyDeleteThank you Bashitha for adding valuable information to this article.
Delete