Business owners and company CEOs
know that as the cost of doing business increases, cutting costs is the first action to increase the bottom line.
More often than not, one of the first steps
in cutting costs is to cut training and tuition
benefits. This action can delay or prevent
downsizing but it is important to consider
how adding or preserving tuition reimbursement can actually improve a company’s bottom line.
Smart Business talked to Laura
Steenbergen, MBA and southern Ohio
regional director of Mount Vernon
Nazarene University about why it’s important for companies to keep tuition reimbursement as an option.
How does tuition reimbursement directly
benefit a company or business?
Consistently providing training or dollars
to increase employees’ skills and knowledge makes your company highly desirable
and more likely to attract quality employees. Employers often forget that when they
interview candidates to determine if they
are qualified and a good job-fit, candidates
are also measuring them against their competition. Any company that provides a way
for an employee to increase knowledge,
skills and abilities will rise to the top of the
list of desirable employers.
Genentech, a biotechnology firm whose
chief executive regularly fields questions
from workers and where employees have
access to $10,000 in annual tuition reimbursements, earned top honors on
Fortune’s 2006 list of ‘best companies’ to
work for. Who wouldn’t be attracted to one
of the best companies?
What prevents employees from getting their
degree and then leaving the company that
paid for it?
That’s an excellent question. Once you
gain a work force with increased management, communication and writing skills,
you certainly don’t want to lose him or her
to your competition. First, you can add a
stipulation to the tuition benefit by stating that employees must work for the company for a set number of months after they
receive their degree. For example, an
employee who enrolls and completes a 22-month accelerated degree program, may
be required to work for the employer for 22
months after graduation. Since the company has invested in the employee, it is only
fair to receive interest in the form of company loyalty for the length of time that it
took to obtain the degree.
If an employee is already doing the job, why
should a company pay for tuition for him/her
to pursue a degree?
Professors with real-world business
experience give students assignments
based on real-world business cases.
Students’ research projects can be written
specifically for issues your company is
dealing with. The research and corrective
actions can then be implemented into your
workplace. The student benefits by getting
a grade and your company saves thousands of dollars that may have gone to a
consulting company.
Adult students attending MVNU engage
in pertinent classroom discussions involving business issues in industries represented by their classmates. This provides a
broader understanding of topics and can
increase workplace productivity in your
own company. Remember that Henry Ford
created the auto assembly line after
observing the operations at a meat packing
plant. As your employees are exposed to
new ideas and ways of doing business, they
can expand possibilities for you by offering
new solutions to challenges that arise daily.
What else does tuition reimbursement add to
the bottom line?
Your company will benefit from increased teamwork ability among your
employees as students begin to implement
classroom practices such as team building,
management and presentation skills.
Employees also gain self-confidence on the
job and their motivation increases.
Educating managers who have already
been given the responsibility but lack the
training or credentials builds company loyalty and an increased sense of ownership.
When employees take ownership of their
jobs, their productivity automatically
increases. Additionally, your company
saves money by promoting well-educated
employees, familiar with your company
needs, instead of incurring a costly search
for a new employee.
What graduate business degrees are available?
Most people are familiar with the MBA,
and for those working in finance or economics, the MBA is a logical choice for professional advancement. However, individuals without a business undergraduate
degree are often, over time, promoted into
management positions. The Master of
Science in Management degree may be the
solution for those with no formal management education. It provides advanced
training in business by focusing on organizational management.
LAURA STEENBERGEN is an MBA and the southern Ohio
regional director of Mount Vernon Nazarene University. Reach her
at (877) 431-9610, ext. 6401 or [email protected].