Kansas City, Kan.— Even as tuition rates continue to escalate, the number of working adults re-entering the classroom to earn college degrees is on the rise. Many employers have picked up on this trend and are seizing the opportunity to offer a valuable benefit to their workforce. The Compdata Surveys Benefits USA 2012/2013 survey results found 56.6 percent of employers now offer tuition reimbursement to all employees, which is a significant increase from 34.9 percent reported in 2009.
“Enrollment rates are expected to continue rising, and companies offering tuition reimbursement to their employees are putting themselves in a competitive position,” said Amy Kaminski, director of marketing for Compdata Surveys. “Not only are employers creating a stronger workforce, but they are arming themselves with a valuable tool in employee retention, as reimbursement benefits are becoming increasingly important to their employees.”
The amount employers subsidize for their employees’ education varies by industry as manufacturing and distribution employers report an annual reimbursement maximum of $4,660. The average annual maximum reimbursement in insurance is $4,263, compared to $3,875 in banking and finance. Healthcare employers reported the lowest maximum reimbursement amount, $3,045. Twenty-five percent of all organizations surveyed report placing no limit on the amount an employee may be reimbursed for their tuition.
In most organizations, employees must meet work or grade requirements to qualify for tuition reimbursement. Sixty-one percent of employers report requiring employees work for them an average of 16 months after being reimbursed for tuition costs. Course and grade requirements are utilized by 86.8 percent and 91.8 percent of employers, respectively.
About the Survey
Benefits USA 2012/2013 analyzes national and regional data on benefits eligibility and administration policies with detailed information on benefit plans, premiums and provisions. Information was collected from more than 4,500 benefit plans covering over 13 million employees across the country.
Compdata Surveys has been providing comprehensive data at affordable prices to organizations from coast to coast since 1988 and is the nation’s leading compensation and benefits survey data provider. Thousands of organizations provide data in each of our eight industry specific surveys each year, ensuring the reliability of our results. For more information about the compensation and benefits surveys, contact Michelle Willis at (800) 300-9570.