Tuition has increased in the United States over the years. The average cost of private tuition is $ 35,000 for the 2017-2018 school year. But for Walmart employees, a university degree can now cost a dollar a day.
The new plan, which was announced in May, includes tuition, fees, and books for employees who have been with the company for at least 90 days. Qualified employees do not have a college diploma and are asked to pay $ 1 per day (or $ 365 per year), with the remainder covered by Walmart.
Although Walmart’s plan is in the news, it is far from unique. From large companies, from Starbucks to UPS to IBM, they offer programs that help workers finance their education or repay their generous loans, and they offer many benefits to employers.
Research shows that education through recruitment and earning costs can be self-sustaining, and that employees who benefit from it are more likely to be promoted and developed with the company. Some of these companies use partnerships with online colleges and use these programs to fill skill gaps. Of course, educational services are also appealing to talented people, especially those who are already busy with student debt or who hope for new skills.
In this sense, some companies have advantages in training their employees – and the benefits these plans can bring to all involved.
Walmart, Starbucks and UPS graduate to fill skill gaps and help employees climb the ladder
Walmart’s plan to pay tuition for its employees has an interesting twist: employees must enroll in one of the few selected schools, and the benefit only applies to company-level supply chain management.
Its design enables Walmart and its employees to help both Walmart and his associates by giving workers the opportunity to move up the ranks, while Walmart receives skilled workers in certain areas. Skills are still problematic.
In a way, the Walmart program is similar to the Starbucks tuition reimbursement program, which involves four-year online enrollment of employees through a partnership with Arizona State University. While not subject to the same terminology limitations, Starbucks also uses online programs to help existing full-time employees learn new skills and grow their business.
In addition, UPS ‘earn & learn program allows part-time users to spend more than $ 5,000 a year on tuition or up to $ 25,000 in the business. The program is unique in that it relates specifically to part-time workers and is designed to help executives to improve their careers full-time on the career ladder.
Companies like IBM and Peloton are helping their employees repay their loan debts in order to attract highly qualified employees.
While student loans in the United States are reaching crisis rates – and now account for about $ 1.4 trillion for about 70% of recent graduates – it is not surprising that some companies attract candidates by offering to repay some of their student loans.
At Peloton, a fitness technology company, partnering with student loan providers helps employers pay $ 100 per month. Similar benefits are offered by large companies such as IBM, Western Union and Penguin Random House. These companies see benefits as a win-win situation that allows them to attract and retain more talent while helping their employees pay their debts earlier so they can take other steps in their lives, such as buying a house or a business. save for retirement.
And while some career paths that require higher degrees (such as law or medicine) are based on the assumption that students borrow heavily to repay after seeking work, the benefits of student loans can be used to educate companies from other candidate sectors.
“Peloton wants to be the employer of choice for talented and motivated people, and the repayment of student loans strengthens our best-in-class position,” said Amy Stoldt, Peloton’s HR Vice President.
At LinkedIn and Certn, paid online courses and training provide career development opportunities
In some companies, providing educational services does not mean paying tuition. After all, the university is not the only way to learn new skills.
At LinkedIn, employees have access to LinkedIn Learning and Lynda.com, which was purchased by LinkedIn in 2015 and includes thousands of online courses in software development, commerce, and graphic design. And at Certn, a personal filtering service, employees are given funds for online courses on Udemy and Coursera – even if the topic is not directly related to their current role. These benefits are very different from a traditional curriculum. With these benefits, employees who have completed their training can develop their skills in their free time and advance their careers – all for free.
At a time when most Americans report inaction at work, online career development programs can give employees the opportunity to care about their careers. By subsidizing training costs and providing employees with exceptional resources, companies also benefit from these programs.
Professional development does not have to be a costly benefit. For some companies, this benefit can be as simple as offering a mentoring program, sending staff to local conferences (no flights or hotel rooms required), or targeting free, low-cost courses.
Concluding remarks: Educational benefits can foster business engagement, engagement and growth
Educational services can take many forms, from direct payment of staff training to partner schools such as Walmart and Starbucks, to assistance in debt financing. There are also less expensive options, such as professional development in the form of access to free online courses or mentoring.
But in every way, these benefits can drive engagement and business growth, and help attract highly talented and potentially indebted graduates. They could even self-finance in the long run, which means they should be considered for businesses of all sizes.