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Employer tuition assistance and how to avail it

February 22,2011 by: Dallas Browne

As the name suggests employer tuition assistance is a financial benefit provided by the employee. This financial assistance is mainly provided to the employees of a firm by the organization for meeting higher educational expenses like tuition fees, lab fees and books. The employer either pays the entire part or the full course fee.

In many cases employers set a limit to the amount of tuition assistance that can be made available to the employer. The amount of money that is to be allotted for the education is either in means of fixed dollars for the entire course fee or the company specifies the number of classes that it will sponsor for the year.

Procedure

When an employee enrols himself in to a professional course, the program of employer tuition assistance gets administered with the employee first having to pay for their own admission, tuition and course books as they register themselves for classes. The employee gets his money reimbursed by the company once he submits the receipts of the met expenses. The employee will also have to submit an academic evidence of good performance with a grade of at least “c” and above on the completion of the course. Employees have to ensure that they regularly turn in copies of their record to get their tuition assistance reimbursed from the employers.

In cases where a huge amount of money is required to be spent on tuition assistance, the employees are required to sign an agreement to pay back the tuition assistance to the employer in case he gets a better opportunity and  leaves the organization at the end of the educational program. In some cases the employer also makes the employee sign a bond that would ensure the services of the employee for a certain period of time. For every year that the employee works for the particular organization, a part of the tuition assistance is forgiven by the employer.

Advantages

  1. Employers too benefit from the employers tuition assistance program as they too will benefit from the skills and knowledge gained by the employee with the educational program. These added skills can help the organisation earn greater profits.
  2. Employees when sign the bond or the agreement for financial assistance from the company are also more likely to stick with the concerned organization. The loyalty of the employee is what the employer gains.
  3. In case the employee takes a course related to their job, he becomes better skilled and therefore a better professional. He gets the chance to stand at par from the other professionals of the same company.

Disadvantages

  1. These programs often need the employees to sign an agreement that would ensure that the employee remains loyal to the organization after completion of the course. This often prevents many a desiring candidates fro missing out better opportunities.
  2. The companies too lose a good and better skilled professional in case the employee decides to join another organization.
  3. Educational programs undertaken while doing a job also makes the company lose the working hours.

The cost of education might prove to be expensive for the company.


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