The best way to invest in your business is to fully invest yourself in your employees.

According to a 2016 study by the Lumina Foundation, employees in one tuition benefits program surveyed were 10 percent more likely to be promoted and 8 percent more likely to stay with the company, reducing across-the-board talent management and recruiting costs.

Why Investing in Your Employees is Good Business

The best way to grow your business? Support and cultivate employee talent.

According to the 2013 Society for Human Resource Management (SHRM) research report, Employee Benefits: An Overview of Employee Benefits Offerings in the U.S., 61 percent of the organizations surveyed offered undergraduate education assistance to their employees and 59 percent offered graduate-level educational assistance.

Results of this and similar surveys indicate that an increasing number of employers realize that investing in staff development reaps long-term rewards.

Our corporate partners often want to know how they can make the most out of tuition benefits available to their employees. Our advice is, the best way to invest in your business is to fully invest yourself in your employees.

There a few ways this can be done, including taking full advantage of your organization's investment in tuition assistance. We can collaborate with you in approaching tuition benefits strategically by ensuring that your employees are able to make the most of their educational opportunities and that you receive a positive return on your investment.

An April 2016 study by the Lumina Foundation, Talent Investments Pay Off, which highlighted Cigna Corporation's return on investment (ROI) for its employees' Education Reimbursement Program (ERP), showed that the program was a valuable business investment across several different factors including promotions, retention and turnover. From 2012 to 2014, ERP produced a ROI of 129 percent, meaning that, for every dollar invested in ERP, Cigna received full return on its dollar and avoided an additional $1.29 it would've spent in talent management costs. Furthermore, ERP participants were 10 percent more likely to be promoted, 7.5 percent more likely to be transferred within the company (resulting in lower costs in filling job openings) and 8 percent more likely to stay with the company.

While tuition assistance programs and their structure differ from organization to organization, it is important to consider the following when evaluating your own offerings:

• Is your organization's communication about its education assistance program clear and concise? Are your employees' most frequently asked questions answered up front?
• Are you working with an educational partner or partners that offer flexibility? Do these partners understand the unique needs of your employees, their schedules and their work/life balance?
• Does your employee benefits plan offer affordable options for both your organization and employees? Will these options be sustainable in the long term?
• Is your organization able to provide time and space for your employees to study throughout the workday?

If you answered "no" to any of these questions, or feel you may need assistance in strategizing your organization's employee educational benefits plan, email the Office of Strategic Partnerships at corporatechoice@tesu.edu or call (609) 984-7188.

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