HERNDON, Va.--(BUSINESS WIRE)--The Harvard Business Review Analytic Services (HBR-AS) released findings from a survey, sponsored by Strategic Education, Inc., of business leadership* that show organizations may be missing out on a key upskilling and retention tool. Ninety-one percent agree that tuition assistance (TA) benefits programs can give organizations a competitive advantage by upskilling the workforce. The survey also revealed that nearly 90% of business leadership agree that, for organizations in their industry, there is strategic value in offering tuition assistance benefits to employees.
Yet, despite this agreement, the survey highlights an inherent paradox and an opportunity for employers to gain a competitive advantage. Eighty-five percent of the business leadership surveyed agree that the positive outcomes from offering tuition assistance benefits outweigh the costs of paying for employees’ education. Despite this, 39% of business leadership say their organization has not evaluated or made updates to its TA program within the past three years.
“This survey confirms what we consistently hear from the employers we work with – that TA benefits are a critical retention and upskilling tool,” said Karl McDonnell, Chief Executive Officer of Strategic Education, Inc. “Yet, despite its value, its prioritization by employers varies significantly. There is tremendous opportunity for employers to evaluate and update this benefit so they meet the needs of both employees and the organization.”
The survey found several common reasons organizations offer TA benefits to their employee base. Among business leadership, their organizations’ most common, primary motivations for offering a program are to build the workforce skills needed for the future (51%), improve employee retention (50%), develop high-potential talent (47%), and increase talent attraction/hiring (43%).
The business leadership surveyed also suggested a lack of measurement of TA benefits. When asked what key performance indicators their organization uses to measure success of the program, the most common performance indicators included impact on employee retention (29%), skills or competencies gained by participants (27%), and participation rates (25%).
The HBR-AS survey found that respondents overwhelmingly recognize the potential value of TA benefits programs, for both the employer and the employees:
- 89% agree that, for organizations in their industry, there is strategic value in offering TA benefits to employees.
- 88% agree that an organization can make its employees feel more engaged at work by offering TA benefits.
- 86% agree that their organization’s TA program is valuable for the organization.
Despite respondent agreement on the value of TA benefits, the survey found that certain barriers prevent organizations from offering them and employees from using them. Among respondents whose organizations do not have a TA benefits program, 68% believe program cost is a barrier to adoption. At organizations with active TA benefit programs, 45% of respondents identified employees not feeling they have enough time to pursue education while working as one of the challenges their organization faces with their TA program.
“Like any benefit, tuition benefit programs need to evolve to meet shifting employee and workforce demands. This may mean offering more incentives and support to employees who want to use the benefit or partnering with a tuition benefit platform that makes enrollment and measurement seamless,” explained McDonnell. “To get the most out of this benefit, employers should commit to measuring the impact of the program on the organization, identifying what is working and what is not, and modifying as needed.”
To read the full results, visit: https://hbr.org/sponsored/2024/03/realizing-and-unlocking-the-strategic-value-of-tuition-assistance-benefits.
*In 2023, Strategic Education, Inc. sponsored Harvard Business Review Analytic Services to conduct a survey of 294 members of the HBR audience (75% are in executive or senior management, 13% in middle management, and 12% in other grades) who are involved in their organization’s decisions about offering U.S. TA benefits.
About Harvard Business Review
Harvard Business Review Analytic Services is an independent commercial research unit within Harvard Business Review Group, conducting research and comparative analysis on important management challenges and emerging business opportunities. Seeking to provide business intelligence and peer-group insight, each report is published based on the findings of original quantitative and/or qualitative research and analysis. Quantitative surveys are conducted with the HBR Advisory Council, HBR’s global research panel, and qualitative research is conducted with senior business executives and subject matter experts from within and beyond the Harvard Business Review author community.
About Strategic Education, Inc.
Strategic Education, Inc. (NASDAQ: STRA) (www.strategiceducation.com) is dedicated to helping advance economic mobility through higher education. We primarily serve working adult students globally through our core focus areas: 1) U.S. Higher Education, including Capella University and Strayer University, each institutionally accredited, and collectively offer flexible and affordable associate, bachelor’s, master’s, and doctoral programs including the Jack Welch Management Institute at Strayer University, and non-degree web and mobile application development courses through Strayer University’s Hackbright Academy and Devmountain; 2) Education Technology Services, developing and maintaining relationships with employers to build education benefits programs providing employees access to affordable and industry-relevant training, certificate, and degree programs, including through Workforce Edge, a full-service education benefits administration solution for employers, and Sophia Learning, enabling education benefits programs through low-cost online general education-level courses that are ACE-recommended for college credit; and 3) Australia/New Zealand, comprised of Torrens University, Think Education, and Media Design School that collectively offer certificate and degree programs in Australia and New Zealand. This portfolio of high quality, innovative, relevant, and affordable programs and institutions helps our students prepare for success in today’s workforce and find a path to bettering their lives.
