Employers give education benefits a closer look

As paying for education becomes a bigger problem for employees, employers are exploring a range of education benefit offerings.

According to “Education Benefits: 2019 Survey Results,” from the International Foundation of Employee Benefit Plans, 92 percent of employers provide some kind of education benefit, with tuition reimbursement/assistance being the most common (63 percent offer it).

Other common benefits include in-house training seminars, with 61 percent of employers offering them; attendance at educational conferences (51 percent); continuing education courses (50 percent); coverage for licensing courses and exams (44 percent); personal development courses (35 percent); and 529 college savings plans (10 percent).

Related: Gen Z is ready to learn, if you’re ready to teach

Tuition reimbursement is an oldie but goodie, with 57 percent of organizations having offered such a program for between 6 and 20 years and 27 percent having provided such a benefit for 21 years or more. Most such programs (87 percent) require employees to satisfy certain conditions upon completion of their study before reimbursement is paid, with the most common amount reimbursed ranging from $5,000–$5,999.

And 57 percent require employees to pay back tuition reimbursement if they leave within a certain period of time after their studies are done; 54 percent require them to remain for a year.

But workers aren’t taking much advantage of it, regardless of how beneficial it is. “Only 1 percent to 5 percent of employees take advantage of tuition reimbursement provided by their employer. This means, big picture, offering educational assistance isn’t a huge financial commitment for organizations in comparison to other types of benefit offerings,” says Julie Stich, CEBS, vice president of content at the International Foundation.

Then there’s student loan repayment assistance. Just 4 percent of respondents offer some form of this benefit, although 2 percent are putting one in place and 23 percent are considering adding it.

But among company concerns regarding student loan repayment assistance is the potential for resentment on the part of employees who paid off their own student loans; resentment among employees whose loans don’t qualify for the benefit; turnover after requirements to get the benefit have been met; the high cost; and the uncertainty and complexity of putting such a program into practice.

However, expansion of such offerings looks likely to continue, since student loan debt certainly isn’t going anywhere. Says Stich, “Student loan repayment is a very new benefit offering. Its short lifespan makes it difficult to measure success or anticipate a possible ROI.” She adds, “With high interest from employees and no firm governmental guidelines in place, it’s something to watch closely in the future.”

Read more: 

• Walmart to pay employees’ college tuition bills
• Student loan repayment: 2019’s most in-demand employee benefit
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