How to Start a Tuition Reimbursement Program

Starting a tuition reimbursement program benefits both your company and your employees by offering advancements with courses that benefit your business model. According to a study by Spherion Staffing Services, 24 percent of employees are not satisfied with the growth opportunities offered to them by their employers and growth potential is one of the top reasons why employees stay with their company. Tuition reimbursement programs offer a way to increase employee retention and company growth.

Instructions

    • 1

      Create eligibility criteria for the tuition reimbursement program. Requirements may include full or part time employment status, a minimum of one year's employment with the company, and whether entry level employees will be eligible to receive tuition reimbursement.

    • 2

      Establish school eligibility requirements. Various types of schooling include universities and colleges, junior colleges, vocational and technical schools and clearly state accredited schools. Include reimbursement for certifications as well as college courses. Specify what type of courses would be reimbursed. Most companies find it beneficial to limit courses only to those that are relevant to the company's goals and objectives.

    • 3

      Research local school and program costs through the Internet or though individual school registration materials. Factors include cost per semester, individual course cost, additional fees, books and supplies.

    • 4

      Quantify what costs your reimbursement program will cover. State your minimum and maximum coverage. Decide whether to reimburse tuition only or to include fees, books, and supplies. Consider the amount of funding you have available for tuition reimbursement, as financial resources will shape the type of program you can offer.

    • 5

      Create an application form for employees to submit. Include deadlines, outline all rules and regulations and set guidelines of expectations. Determine whether reimbursement will be based on a pass/fail scale or a certain percentage of reimbursement paid upon receipt of grades--for example, A=100%, B=80%, C=50%, and so on.

    • 6

      Make your program known to employees to promote excitement and motivation for your workforce. Decide when to issue reimbursement by stating specific reimbursement periods based on your company's finances; consider paying either annually or quarterly.

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