Providing frontline workers with the education and skills they need to succeed in their current jobs and broader careers is a proven way for employers to bridge a widening economic divide — and to attract, develop, and retain a workforce that has grown more selective and scarce during the pandemic. These programs, though, often exist with structures and well-intentioned financial barriers that prevent those who might benefit the most from taking full advantage of their promise. By one 2015 estimate, U.S. employers spend $177 billion annually on formal education programs (and the current number is likely even higher).
Why Employers Should Fund Debt-Free Education Programs
Traditional tuition-reimbursement policies often don’t work for the employees who could benefit the most — hurting employers and employees alike.
April 11, 2022
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Summary.
Most organizations that offer educational benefits require employees to pay upfront for courses, followed by some percentage of reimbursement. This limits who can afford to further their education: typically, those with robust savings and prior degrees are the ones who take advantage of the benefit. Recent analysis and data from Walmart and other organizations that employ frontline workers suggests there’s a better, more equitable way: offering educational benefits at no cost. The employees who take advantage of this offering are more likely to see salary increases and promotions, and employers benefit from attracting talent and retaining more-loyal workers.