The popularity of tuition reimbursement programs is growing across America’s businesses. Some believe that tuition reimbursement for employees is only encouraging them to seek jobs elsewhere after the employee receives his or her degree. However, studies outlined by Pattie, M., Benson, G., & Baruch, Y., in Tuition Reimbursement, Perceived Organizational Support (2006) disclose that employers who take an active role in the education process with the employee are more likely to have higher ratios of employee retention after graduation.

New Opportunities for Employees Career growth and advancement are two elements employees value about their jobs. It is essential for an employee to feel a sense of accomplishment when allowed to apply the skills gained through education to the employees current job rather than feeling as though they need to change jobs to apply his or her degree. Tuition reimbursement programs when coupled with career growth and advancement for employees can be extremely effective and lucrative for companies. For example, implement an incentive program for a raise or a promotion for employees close to graduation acknowledging their latest accomplishment. This type of tactical move by an employer encourages employee retention, making him or her feel valuable and important in their job. Employees feel valued when an employer shows confidence in the employees ability to do his or her job.

The knowledge and skill set employees earn when obtaining a degree are valuable assets to both the employee and the employer. This knowledge and skill set is something that stays with the employee regardless of where he or she is employed making this a critical point of contention for employers. Employees place a high value on this knowledge and skill set and expect employers to endorse accordingly; whether it