Presentation on theme: "Employee Tuition Assistance: The Payoff and the Practice Co-Presenters: Bill Wiggenhorn John Zappa Sponsored by:"— Presentation transcript:
Employee Tuition Assistance: The Payoff and the Practice Co-Presenters: Bill Wiggenhorn John Zappa Sponsored by:
How well is your company managing and maximizing its investments in employee education and training?
In the new economy, your workforce is your competitive edge. Workforce and culture are the only things that competitors cannot easily duplicate. The High-Performance Workforce Study, Accenture 2003
Top Reasons Employees Remain with Their Employer 1.Exciting work & challenge 2.Career growth, learning & development 3.Working with great people & relationships 4.Fair pay 5.Supportive management/ great boss Retention Drivers Report, Career Systems International, 2004
Tuition reimbursement is the most common retention program utilized by companies (62%) #2 Competitive vacation and holiday benefits (60%) #3 Competitive salary (59%) SHRM / The Wall Street Journal’s CareerJournal.com Job Recovery Survey, 2003
Tuition programs are widespread… An estimated 75% of U.S. workers are eligible for some form of education reimbursement. Society of Human Resource Management (SHRM) An estimated 35% of U.S. companies offer some form of tuition program. CAEL 2004 Tuition Survey
CAEL’s 2004 Tuition Assistance Policy Study
CAEL’s Tuition Assistance Policy Study Contacted 34,000 HR Professionals across the U.S. In-depth survey with over 1,300 offering tuition benefit Unique sample drawn from all industries and companies of all sizes Purpose was to document current practices Over sampling in 6 industries where workforce development is critical to 21 st century: Financial Services; Healthcare; Information Technology; Manufacturing; Telecom; and Utilities
Over 85% of companies claim that their education and tuition benefits are an important strategic investment. 74% of companies claim that their education and tuition benefits are an effective strategic investment. CAEL 2004 Tuition Survey Key Findings:
Poll: What is the most important reason your company offers... Improve retention Improve productivity Increase employee skill set Develop promotable employees Strengthen recruitment Not sure
Organizations believe tuition assistance has positive impacts CAEL 2004 Tuition Survey Reason for providing educational benefit % of Employers Employee retention70% Improve productivity (job performance) 69% Increase qualifications to do new work 61%
Wisdom from the trenches… “Education Strengthens The value of The company — increasing retention, morale, and productivity.” CAEL 2004 Tuition Survey
Tuition Supports Retention Have participants in your tuition program tended to stay at your company longer than non-participants? CAEL 2004 Tuition Survey
Tuition Supports Productivity Has job performance been noticeably better for participants than for non-participants? CAEL 2004 Tuition Survey
Why The Disconnect? No clear lines of responsibility for Developing policy Promoting the benefit Advising employees Approving employee requests Reporting on program activity Decision-making is spread across multiple groups –Corporate/head office –local business unit –supervisors CAEL 2004 Tuition Survey
Looking toward the future… Greater than 70% expect their investment levels in both external and internal education and training benefits to remain the same or to increase. CAEL 2004 Tuition Survey
Why are educational budgets increasing? 1.Rising costs of education 2.Anticipate greater participation by employees (their choice) 3.Greater need by the company in terms of skills; want to stay competitive CAEL 2004 Tuition Survey
How can you manage and maximize your learning investment?
Leverage technology for increased efficiency Create networks with education providers to manage education costs Measure the program’s effectiveness to drive quality outcomes
Leverage technology for increased efficiency Utilize technology to automate administrative elements: Approval of applications Notification of approval Tracking of program usage Payments to education provider Reduces administrative burden Enables standardized delivery Supports greater tracking and management of program
Create networks with education providers to manage education costs Seek partnerships with educational institutions to secure preferred rates Develop custom degree programs Potential for substantial cost savings and more directed education
Poll: What’s holding you back from measuring effectiveness of your tuition program? Lack of reporting tools Technology limitations Decentralized program responsibility Unclear or complex program policy Other
Measure the program’s effectiveness to drive quality outcomes Set metrics Collect data to measure and systematically report Analyze program outcomes
How can your education program support lifelong learning?
Link tuition policy to outcomes Link education and training programs Think globally to support your workforce as it evolves
Questions for our presenters?
To receive a copy of CAEL’s Tuition Survey: Phone: