Why Sending Your Employees Back to School Ensures You Make the Gradeby Jonathan King (September 17, 2018)
It’s back-to-school season again! Perhaps it’s time to consider sending your employees back to school, too.
In an information economy, education is the greatest tool a business can wield. The best part is that education is a commodity that can’t be taken from you once you have it – it’s an inexhaustible resource.
But as we mentioned in a previous article, the cost of higher education continues to rise. With the demand for higher education increasing, and the cost of that education increasing right alongside, it’s becoming harder for employees to obtain this commodity on their own.
That’s where you come in. A Lifelong Education and Labor Market Needs study showed:
- 96% of employers see a major improvement in work performance from educated employees.
- 78% of employers claim to factor higher education into promotion decisions.
In essence, having educated employees increases your corporate efficiency and ensures you have qualified people in positions that matter.
Education is an expensive investment, but it’s well worth it. Check out this case study on how paying for your employees’ education can help your business. One company’s results included:
- A return on investment of 129% for employee education expenses
- An increase in employee loyalty, reducing turnover by 8%
Although this is just one company, it illustrates the potential benefits of helping your employees obtain higher education. The employee loyalty boost alone is worth it, with employee turnover costs costing up to 200 percent of an employee’s annual salary. In either case, the old adage “you have to spend money to make money” holds true.
There are many ways your company can go about paying for your employees’ education. But it’s important to keep in mind the rules regarding worker compensation: You must pay employees’ full wages (and in some cases overtime pay) for courses your company requires them to take. Conversely, if the employee volunteers to undergo education, you do not have to pay them wages for it.
The key is to encourage and promote education. A popular way of doing this is to agree to pay part of your employees’ tuition, scaling for bachelors and masters programs.
Want to be top of your class in employee education benefits? Get in touch with us, and we’ll help you put together the perfect program for you and your employees.