In this day and age, it is important for companies to remain competitive in the global market. One important way to achieve this is through employee tuition reimbursement for Masters of Business Administration. Sometimes companies need to invest money in their employees in order to make more money. The following are eight reasons why companies should pay for MBAs.
Tuition reimbursement is a good recruiting tool. Human resources can use this employee benefit to entice potential employees during the hiring process. Most good employees are looking to improve their skills and go back to school at some point. When they know a particular company contributes financially to making that goal a reality, valuable potential employees flock to these particular companies.
Tuition reimbursement shows the company values its employees and wants them to be the best they can possibly be. This benefit tells employees that the company invests in the personal and professional growth of its employees. It reveals that the company respects its employees and values their skills and contributions. Employees like to know their company considers them to be a valuable asset.
Tuition reimbursement promotes overall improvement of company performance. When a company’s employees improve, then the company as a whole improves. A company is only as good as its employees. When employees are trained in the current, state-of-the-art techniques, their work performance improves significantly and, as a result, the company’s performance improves significantly as well.
Tuition reimbursement creates a high employee retention rate. When tuition reimbursement is offered to employees, the company usually has some type of time commitment required of the participating employees. For example, an employee who is receiving tuition reimbursement may be expected to commit to at least one year of employment at the company. If time commitments are issued, the company must make sure these requirements are practical and fair. Also, most master’s programs take a long time to complete, which means participating employees will stick around for at least the duration of their master’s programs.
Tuition reimbursement promotes advancement within the company. Generally, an employee with a master’s degree will earn more than an employee with just a bachelor’s degree. This incentive makes employees want to go back to school in order to better themselves in the company and in life.
Tuition reimbursement creates better morale, motivation, and productivity among employees. Employees who are advancing themselves are generally happier and more content at work. This is because they know they are improving themselves and are making themselves more qualified for promotions and advancement. Employees like to know they can advance their careers with the potential of higher pay. It gives them something to aspire to by creating goals and fueling ambition.
Tuition reimbursement is a reinvestment into employee know-how, which makes the company more competitive. Highly trained employees benefit a company by increasing the company’s overall performance. When a company’s performance increases, it becomes a major player in the global market. As mentioned before, a company is only as good as its employees. The better the employees, the better the company. The better the company, the more competitive it is in the world marketplace.
According to HR Management magazine, “Recent studies show that 75 percent of all companies with more than 20 employees and almost all large employers offer some type of reimbursement benefit. Companies are spending anywhere from $16 billion to $55 billion for employee development.” In order to stay competitive with these other companies, your company should also offer tuition reimbursement packages. Your company can set up certain requirements, such as particular schools and programs, time commitments, etc., which will meet the needs of your unique company. Not all tuition reimbursement plans are the same, and your company should create a plan that will meet the needs of both your company and your employees.
Basically, your company needs to ask itself if it can afford not to offer tuition reimbursement. In the long run, the benefits of offering tuition reimbursement pay off. The employees benefit, and the company benefits. This type of plan makes the company stronger and makes employees happy to be a part of it.