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The Value of Tuition Reimbursement

Theresa McKinley

University of Phoenix

The Value of Tuition Reimbursement

Tuition reimbursement is a program that every company should consider. By having benefits such as tuition reimbursement, I believe that OptumHealth New Mexico will see a large return for its investment. Educational assistance for employees will support the company’s commitment to cutting-edge innovation. The importance of degrees and credentials is important in our company’s marketing of its employees to its consumers. OptumHealth New Mexico can benefit from investing in employees’ education for many reasons. Educated employees produce improved skills and knowledge to the job, adding to better productivity and performance; employees with advanced education can be promoted to positions of greater responsibility; the company would retain valuable employees; turnover would decrease, and there is an atmosphere of motivation and morale that create an encouraging and supportive environment. Employers who offer tuition reimbursement are normally at an advantage over companies that do not offer it. The organizations that do not offer this benefit may lose potentially valuable new talent to the companies that already offer this incentive. According to the Society for Human Resources (SHRM), education assistance is important to 20% of potential recruits under the age of 35, but only 4% of those over 55. (Browning, 2005). Companies that have employees with a minimum of a four-year degree have an edge over companies that have no employees with a degree. While employees are attending school, employers get the advantage of new knowledge and innovative ideas put into practice immediately in the workplace. Employees have a chance to apply what they are learning in class to real life situations. “Seventy-five percent of U.S. establishments with more

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