Employers may offer full or partial tuition assistance. Companies may offer the employee direct funding to the educational institution, payment upon completion and on- or off-site training.
The company may require a minimum grade point average to receive the benefit. Alternatively, it may award levels of tuition assistance according to grade level. In some cases, the employee may be required to serve as a company employee for a specified period in exchange for tuition assistance.
In exchange for the company's educational investment in the employee, it receives a well-trained staff, increased loyalty and reduced turnover. The employee provides a return on investment by using his expertise in the company's workforce.
Employees sense that a company with a tuition assistance program cares about their educational goals, thus building strong relationships between employer and employee. Company-provided tuition assistance is tax-free, which is an added benefit to the employee.