Employee Tuition Assistance:

The Payoff and the Practice

Co-Presenters: Bill Wiggenhorn

John Zappa

Sponsored by:

How well is your companymanaging and maximizing

its investments in employee education

and training?

In the new economy, your workforce

is your competitive edge.

Workforce and culture are the only things that competitors

cannot easily duplicate.

The High-Performance Workforce Study, Accenture 2003

Top Reasons Employees Remain with Their Employer

1. Exciting work & challenge

2. Career growth, learning & development

3. Working with great people & relationships

4. Fair pay

5. Supportive management/ great boss

Retention Drivers Report,

Career Systems International, 2004

Tuition reimbursement is the most common retention

program utilized by companies (62%)

#2 Competitive vacation and holiday benefits (60%)

#3 Competitive salary (59%)

SHRM / The Wall Street Journal’s CareerJournal.com Job Recovery Survey, 2003

Tuition programs are widespread…

An estimated 75% of U.S. workers are eligible for some form of education reimbursement.

Society of Human Resource Management (SHRM)

An estimated 35% of U.S. companies offer some form of tuition program.

CAEL 2004 Tuition Survey

CAEL’s 2004 Tuition Assistance

Policy Study

CAEL’s Tuition Assistance Policy Study

• Contacted 34,000 HR Professionals across the U.S.

• In-depth survey with over 1,300 offering tuition benefit

• Unique sample drawn from all industries and companies of all sizes

• Purpose was to document current practices

• Over sampling in 6 industries where workforce development is critical to 21st century: Financial Services; Healthcare; Information Technology; Manufacturing; Telecom; and Utilities

Over 85% of companies claim that their education and tuition

benefits are an important strategic investment.

74% of companies claimthat their education and tuition

benefits are an effectivestrategic investment.

CAEL 2004 Tuition Survey

Key Findings:

Poll: What is the most Poll: What is the most important reason your important reason your

company offers ...company offers ...

• Improve retention

• Improve productivity

• Increase employee skill set

• Develop promotable employees

• Strengthen recruitment

• Not sure

Organizations believe tuition assistance has positive impacts

CAEL 2004 Tuition Survey

Reason for providing educational benefit

% of Employers

Employee retention 70%

Improve productivity (job performance)

69%

Increase qualifications to do new work

61%

Wisdom from the trenches…

“EducationStrengthensThe value ofThe company—increasingretention, morale, andproductivity.”

CAEL 2004 Tuition Survey

Tuition Supports Retention

Have participants in your tuition program tended to stay at your company longer than non-participants?

Yes48%

No16%

Don't Know36%

CAEL 2004 Tuition Survey

Tuition Supports Productivity

Has job performance been noticeably better for participants than for non-participants?

Yes43%

No17%

Don't Know40%

CAEL 2004 Tuition Survey

Why The Disconnect?

• No clear lines of responsibility for• Developing policy• Promoting the benefit• Advising employees• Approving employee requests• Reporting on program activity

• Decision-making is spread across multiple groups– Corporate/head office– local business unit – supervisors

CAEL 2004 Tuition Survey

Looking toward the future…

Greater than 70% expect their

investment levels in both external

and internal education and

training benefits to remain the

same or to increase.

CAEL 2004 Tuition Survey

Why are educational budgets increasing?

1. Rising costs of education

2. Anticipate greater participation by employees (their choice)

3. Greater need by the company in terms of skills; want to stay competitive

CAEL 2004 Tuition Survey

How can you manage and maximize your

learning investment?

• Leverage technology for increased efficiency

• Create networks with education providers to manage education costs

• Measure the program’s effectiveness to drive quality outcomes

Leverage technology for increased efficiency

• Utilize technology to automate administrative elements:

• Approval of applications• Notification of approval• Tracking of program usage• Payments to education provider

• Reduces administrative burden• Enables standardized delivery• Supports greater tracking and

management of program

Create networks with education providers to manage education costs

• Seek partnerships with educational institutions to secure preferred rates

• Develop custom degree programs

• Potential for substantial cost savings and more directed education

Poll: What’s holding you back Poll: What’s holding you back from measuring effectiveness from measuring effectiveness

of your tuition program?of your tuition program?

• Lack of reporting tools

• Technology limitations

• Decentralized program responsibility

• Unclear or complex program policy

• Other

Measure the program’s effectiveness to drive quality outcomes

• Set metrics

• Collect data to measure and systematically report

• Analyze program outcomes

How can your education program support lifelong learning?

• Link tuition policy to outcomes

• Link education and training programs

• Think globally to support your workforce as it evolves

Questions for our presenters?

To receive a copy of CAEL’s Tuition Survey:

www.cael.org/reply.htm

Email: jzappa@cael.orgPhone: 312.499.2334