Tuition Reimbursement: A Persuasive Memo

¶ … tuition reimbursement: A persuasive memo

To the human resource department of Company X:

In today's economically trying times, it can be tempting for a company to engage in penny-pinching. Seemingly extraneous expenses such as tuition reimbursement are often the first 'luxuries' to be eliminated from the budget. But far from luxuries, tuition reimbursement and other forms of employee education should be viewed as a necessity. Tuition reimbursement is an investment in the company's future, not simply the individual employee's future. For reasons of practical corporate self-interest; to improve the psychological and social atmosphere of the company, and to attract top talent, tuition reimbursement and support for other adult education in the workforce should remain critical components of an attractive benefits package

Practical reasons: Corporate self-interest

First and foremost, from a self-interested perspective, offering tuition reimbursement for an MBA or a business or technical degree gives the worker enhanced skills to serve the company. Employees will have additional knowledge in how to manage people or to cope with changes in technology. The benefits for the company outweigh the costs. For example, at Best Buy, when the company was experiencing worker attrition and high rates of burnout, two innovative MBAs in the human resource department who had studied motivation decided to institute what became known as a Results Only Work Environment (ROWE). Instead of hours logged at the company offices, workers were judged by their results or output alone. They could work from home, come in early, leave early, or take time off to go to children's soccer meets, so long as they got their work done. Morale increased as a result of the willingness of these MBAs to think outside of the box (Smashing the Clock, 2006, Business Week). By offering tuition reimbursement, the company encourages workers to seek out greater educational opportunities for themselves and to create innovative and profitable solutions for the organization.

As technology is changing all of the time, enhancing worker capabilities can greatly benefit the company from a financial perspective. Even for workers who do not wish to go back to formal schooling, adult learning can help them realize their potential. At Google, widely considered one of the most innovative companies in the world today, engineers are allowed to pursue their own projects, in the hope that their independent, self-directed learning will produce additional, revenue-generating innovations for Google. Many of Google's most successful applications have sprung forth from this program (Culture, 2011, Google Corporation).

A final, practical point in favor of the self-interest of the company in providing education for workers -- is that it can be costly and difficult to institute a massive retraining of workers. Regular, small educational sessions to enhance worker skills saves time and money in the long run, as the company does not have to be shut down for retraining. Workers with a strong educational background are also more flexible and open to change, and change is the lifeblood of modern organizations. Tuition reimbursement and other lifelong learning programs in the workplace "encourage employees to continue their education, expand their knowledge base and develop new skills. The companies then benefit with a better equipped workforce" (Krumrie 2008).

Improving the atmosphere at the company

Tuition reimbursement and adult education initiatives can generate profound goodwill in the workplace. Workers are more willing to remain at the company if they feel it 'gives back' to them as well as takes from them, and tuition reimbursement and adult learning encourages workers to invest in themselves. This also creates a more positive and upbeat attitude in the workplace. Even non-career educational efforts such as Google's fitness classes create a better mood in the workplace. After doing yoga, a Google employee returns to his or her desk better able to improve his or her creative output. Additionally, adult education classes that enhance mood and body can save money on employee sick days and healthcare expenses. Employees with better attitudes about themselves, enhanced by lifelong learning, are less likely to feel stressed and psychologically traumatized, even when the workflow is high.

Attracting top talent

Retention is enhanced through tuition reimbursement. It is much cheaper to hire a new worker than it is to retrain and enhance the skills of an existing worker. Education means that employee's skill sets are less likely to grow obsolete, reducing the need to hire new workers. Enhanced skill sets mean that the same workers can perform many different tasks. And workers are more likely to remain at a company that compensates them for their education. It demonstrates that the company wants to help them, not simply make them work in its service, as education can enhance the worker's future. Workers are unlikely to quit a job if it means discontinuing pursuing a degree.

More motivated, qualified workers are often attracted to companies that offer tuition reimbursement. "These programs effectively give pay raises to what is likely to be the most valuable group of employees…Employees who are considering advancing their careers will be more likely to choose to be employed by an employer which offers a tuition reimbursement program because the program allows the student to take their classes for free or at a significantly reduced rate" (Krumrie 2008)