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)
