Tuition assistance plans (TAPs) can increase employee retention, but only when aligned with the talent needs of a company.
by Site Staff
January 24, 2010
<p>Tuition assistance plans (TAPs) can increase employee retention, but only when aligned with the talent needs of a company. These days, more employees are using TAP funds to pay for their college educations. With school tuitions often increasing 15 to 30 percent annually, this could represent a drain on learning budgets. Here are a few ways to better manage costs and create a more robust return on investment:</p> <p><strong>• Avoid “herding” employees into preferred partnerships.</strong> Many companies are creating learning networks or partnerships with selected colleges and universities. Often these arrangements give reduced tuition to employees who attend their degree programs. While many times these courses are convenient and cost-effective, in some cases they could have unintended side effects. Take, for example, a company that offered 15 percent off tuition for an on-site school program. Due to this and other incentives, 325 of the company’s 400 employees attended this one school, leading to the accumulated workforce knowledge becoming “cookie cutter” — with little input of new thinking, creativity and diversified perspectives. The company soon removed the on-site program, and today employees are attending a variety of schools for about the same cost. </p> <p><strong>• Go easy on customized degree programs.</strong> For a select group of employees, customized degree programs may be just what the doctor ordered. However, some schools are offering these degree programs for entire populations of employees, often making 25 percent or more of the course requirements company specific. Consider the current state of the economy: If hundreds — or even thousands — of employees enroll in these programs, the information they receive could end up being too specific to use outside the company should the company downsize. That’s not a good PR tool. Certificate programs are offered by thousands of colleges and universities, and they can meet the specific learning needs of a company while still keeping the doors open to a variety of schools and degree programs. Also, keep in mind that customized degree programs may come with additional development costs or higher tuition fees. </p> <p><strong>• Provide educational planning resources.</strong> Retention of employees via TAPs is high. Yet average adult students typically only stay in school if they can complete a degree program in three to five years. Employees taking one course per semester and attending year-round, without any breaks, will complete a traditional bachelor’s degree program in 13 years. They won’t do it — and besides, you wouldn’t want to pay for a degree that is outdated by the time they graduate, anyway. </p> <p>Because employees choose the schools they attend, it makes sense to give them resources to learn about and compare programs and credit options. For example, for less than $100, several national testing programs will give 6 credits, the equivalent of two classes, for successful completion of certain exams. Consider that the average college course costs about $1,000. Employees will want to get credit for what they already know, and your company can save more than $1,900 per employee. </p> <p>Additionally, employees who are serving or have served in the U.S. military can receive college credit for many of their training courses. For example, most schools will grant at least 3 credits of physical education credit for boot camp, while a noncommissioned officer may be awarded up to 30 credits. If your company hires from the military, this opportunity for your employees could save hundreds of thousands — perhaps even millions — of dollars for your TAP budgets. Eligible employees simply request a transcript from the military and have it sent to the schools they are attending.</p> <p>Further, hundreds of schools offer the option to create a portfolio of “life” or “on the job” learning that is equal to a college course. Credits have been awarded for knowledge in standard fields such as business, management and computer knowledge, as well as for skill and ability in music, painting, dance — and even microwave cooking.</p> <p>Finally, employees need a central school search tool that includes all schools, including those that offer distance education. </p> <p>In the U.S., there are more than 1,100 institutions of accredited higher education that provide bachelor’s, master’s and doctorate programs to adult students. Learning occurs at all of them. Make sure your company and your employees choose wisely.</p>