Many companies view tuition reimbursement policies as a mutual investment. Moreover, All Business suggests that in today's competitive job market, companies value the education of employees because education is important to remain competitive. Furthermore, companies who decide not to offer employee tuition reimbursement plans may lose their educated employees, or those seeking education, to competitors who offer employee tuition reimbursement programs.
Establishing a tuition reimbursement policy can be an expensive business program to operate. However, the federal government realizes the short-term and long-term benefits of tuition reimbursement programs and allows employers to provide up to $5,250 tax-free to each employee.
Most companies have stringent guidelines involving employee tuition reimbursement. Usually, the first criterion is whether the program covers both full- and part-time employees. In addition, many companies have tenure requirements to be eligible. For instance, several companies require an employee to be on the job full-time for six months.
Several companies will only provide tuition reimbursement on classes that can further employee development within the organization. It is not uncommon for companies that offer tuition reimbursement to have employees agree to short contracts. For example, a contract could ask an employee to continue to work for the company for a set period of time. Additionally, employee reimbursement contracts often ask student-employees to maintain a certain grade point average in return for tuition reimbursement.
Since employee tuition reimbursement programs are an investment in a company's future, there are other ways to support employee learning efforts. All Business suggests allowing employees to telecommute or become more flexible with their hours during exams.