5 Reasons Educational Assistance Benefits Employers and Employees

Education assistance workforce development
Overview
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    Awash in a sea of help wanted signs

    As the US economy continues to emerge from the pandemic, there is a growing chorus of corporations across some of our largest industries, lamenting the lack of workers to fill the open jobs. With unemployment rates dropping, some believe that federal benefits for unemployment are keeping workers on the sidelines. Others believe that for some front-line workers – uncertainties around childcare, transportation, school reopening, and ongoing health and safety concerns are factors in individuals coming back to the workplace. 

    There is a third possible reason to consider: As a result of the pandemic, workers – particular those on the frontlines (cashiers, line cooks, custodial/environmental services, allied health technicians) – were deemed as essential – and for many – that provided a sense of value and worth in their jobs that had been lacking in many ways pre-pandemic – and as such has left many wanting to ensure they are valued by the organization in which they work and the communities which they serve. 

    It stands to reason, companies should not just focus on the wages they are paying the employees on the frontlines (although a living wage is crucial); they should also stop viewing this population as a transient, churning pipeline of employees, and invest in them and their skills development in a meaningful way. 

    So, what does investing in the skills development of the frontline workers look like? It starts with examining the organization’s policies and approaches to funding the education of their employees. Over 80 % of companies provide some form of tuition or educational assistance to their employees – however, these programs are historically utilized (somewhere between 3-5%). This lack of utilization leads organizations to believe that their employees do not want to utilize the benefit, that it is not as important to them, or that they have a workforce already educated enough. However, the truth of the matter is that most traditional approaches to tuition and educational assistance are not focused on the needs of most employees who would most benefit from such programs.

    Shift Your Perspective

    What should you do to align your organization’s educational assistance policy better to meet the needs of all your employers? Here are a few initial steps for you to consider: 

    • Ensure the policy is open to all your employees regardless of level. Consider making employees eligible on their first day of employment – or at least no longer than their first 90 days. 
    • Open your policy to cover a wider range of programs. While degrees are still valuable credentials, for many of your employees, the opportunity to pursue a certificate or certification program may be the appropriate next step for them to advance to a role that will provide them a step up economically. 
    • Recognize that gateway credentials like the GED or even learning to speak English may be relevant to your audience. By funding those opportunities, you are removing the barrier of cost – but you are opening up the pathways for further learning and advancement. 
    • Don’t stop with just considering costs – explore opportunities to remove other obstacles to learning – can you provide access to technology to learners who lack technology at home? Can you provide paid time off for learning? Build out financial incentives for learners who complete courses – or perhaps opt to pursue learning paths crucial to the organization’s future. 

    Five Reasons EA Benefits Both Employers and Employees

    1. There is an ROI. Studies have shown for every dollar spent on educational assistance, companies have seen returns of up to $1.44 – in reduced turnover, absenteeism, etc. 
    2. Educational Assistance programs create a connection to the organization and the brand. Employees seek out organizations with educational assistance programs (think Verizon, Amazon Career Choice, or Disney Aspire). 
    3. Employees better understand their career possibilities and the pathways to achieving those possibilities with additional educational attainment. If the program offers advising as part of the benefit, the connection between the art of the possible and educational pathways is even stronger. (Sometimes, a little advice and encouragement go a long way).
    4. Employers can more strategically develop the talent they need through a more strategic application of their EA programs – promoting retention and internal mobility. 
    5. Employees have more equitable opportunities to gain the skills and knowledge they need to succeed – both today – and in the future.
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