Harvard Business Review Analytic Services Survey Highlights Missed Opportunities for Those Without Tuition Assistance Benefits

Ninety-one percent agree that tuition assistance (TA) benefits programs can give organizations a competitive advantage by upskilling the workforce. The survey also revealed that nearly 90% of business leadership agree that, for organizations in their industry, there is strategic value in offering tuition assistance benefits to employees.

The Harvard Business Review Analytic Services (HBR-AS) released findings from a survey, sponsored by Strategic Education, Inc., of business leadership* that show organizations may be missing out on a key upskilling and retention tool. Ninety-one percent agree that tuition assistance (TA) benefits programs can give organizations a competitive advantage by upskilling the workforce. The survey also revealed that nearly 90% of business leadership agree that, for organizations in their industry, there is strategic value in offering tuition assistance benefits to employees.

Yet, despite this agreement, the survey highlights an inherent paradox and an opportunity for employers to gain a competitive advantage. Eighty-five percent of the business leadership surveyed agree that the positive outcomes from offering tuition assistance benefits outweigh the costs of paying for employees’ education. Despite this, 39% of business leadership say their organization has not evaluated or made updates to its TA program within the past three years.

“This survey confirms what we consistently hear from the employers we work with – that TA benefits are a critical retention and upskilling tool,” said Karl McDonnell, Chief Executive Officer of Strategic Education, Inc. “Yet, despite its value, its prioritization by employers varies significantly. There is tremendous opportunity for employers to evaluate and update this benefit so they meet the needs of both employees and the organization.”

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“This survey confirms what we consistently hear from the employers we work with – that TA benefits are a critical retention and upskilling tool”

The survey found several common reasons organizations offer TA benefits to their employee base. Among business leadership, their organizations’ most common, primary motivations for offering a program are to build the workforce skills needed for the future (51%), improve employee retention (50%), develop high-potential talent (47%), and increase talent attraction/hiring (43%).

The business leadership surveyed also suggested a lack of measurement of TA benefits. When asked what key performance indicators their organization uses to measure success of the program, the most common performance indicators included impact on employee retention (29%), skills or competencies gained by participants (27%), and participation rates (25%).

The HBR-AS survey found that respondents overwhelmingly recognize the potential value of TA benefits programs, for both the employer and the employees:

• 89% agree that, for organizations in their industry, there is strategic value in offering TA benefits to employees.
• 88% agree that an organization can make its employees feel more engaged at work by offering TA benefits.
• 86% agree that their organization’s TA program is valuable for the organization.

Despite respondent agreement on the value of TA benefits, the survey found that certain barriers prevent organizations from offering them and employees from using them. Among respondents whose organizations do not have a TA benefits program, 68% believe program cost is a barrier to adoption. At organizations with active TA benefit programs, 45% of respondents identified employees not feeling they have enough time to pursue education while working as one of the challenges their organization faces with their TA program.

“Like any benefit, tuition benefit programs need to evolve to meet shifting employee and workforce demands. This may mean offering more incentives and support to employees who want to use the benefit or partnering with a tuition benefit platform that makes enrollment and measurement seamless,” explained McDonnell. “To get the most out of this benefit, employers should commit to measuring the impact of the program on the organization, identifying what is working and what is not, and modifying as needed.”

*In 2023, Strategic Education, Inc. sponsored Harvard Business Review Analytic Services to conduct a survey of 294 members of the HBR audience (75% are in executive or senior management, 13% in middle management, and 12% in other grades) who are involved in their organization’s decisions about offering U.S. TA benefits.

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