Even though paying for employees education takes money away from the company. Companies should reimburse employees for school because it is a good investment and more employers stay at the company they are with if their tuition is paid by the company.

  Companies should reimburse employees for school tuition. Employers who provide this service think of it as retention and replacing baby boomers that are getting ready to retire. Companies that have tuition assistance programs for employees will attract more employers. More than one-third of companies are adding tuition reimbursement to attract new employees and to keep the existing ones too.Greentech pays $10,000 a year, in tuition for their employers who keeps intelligent and better scientists that enjoy working there. In 2006, 500 employees took about 1,200 courses. United Technologies Corp pays full tuition including books and all other fees. If that’s not enough, UTC gives three hours a week paid time off to study if enrolled in school. If someone is employed with UTC and get an associates degree or higher degree you qualify to get a company stock worth $10,000.A survey done by Hewitt Associates Inc. found that big companies usually give a maximum of $5,000 a year to their employers. (So UTC is very

                                                                                                                                             p.2

generous) More employers stay at the company longer, if their college tuition is paid by the company. Most managers think if they pay tuition for employers and they receive their degree they will take the money and leave. UTC say’s the employers are less likely to leave their job. Employees in the tuition assistance program have a 3% less turnover rate than employees not

                                                                                                                                                              Enrolled in the program. People tend to be more loyal when they are sponsored by there

Company. Linda Stra, an employer at UTC has received an associates and bachelors degree through the tuition reimbursement program. She wants to get her Master’s degree as well. She started working at UTC in 1999, because of the program. She has been promoted many times at Sutcliff, if she looks for a different job she will look within her company. She said," She doesn’t want to work anywhere else."

  The most important reason Companies should reimburse employees for school is because it can help the Company. More employers are paying employee’s tuition to stay competitive .The Menomonee Falls Company realizes tuition reimbursement pays off by having smarter employees. As the business becomes more computerized, demand for more trained employees have increased, says educators and employers. Paying for school tuition is another way to train the employees. (For example: on computer skills)

  Some companies have added tuition reimbursement to their benefits. Some employers pay for tuition even if it does not relate to their workfield. Besides tuition; books and parking are paid for at Hewitt Associates LLC.27% of companies raised their yearly maximum reimbursement. In 1998 the median increased by $1,000 according to the Hewitt survey.53% of students that are

                                                                                                                                             p.3

attending school at University of Wisconsin-Milwaukee are having 75% of their tuition covered by the reimbursement program. This benefit has increased the students at UWM from 3,631 to 3,978 in 1999.Employees at Wenn Soft requested tuition compensation so Wenn Soft added it a couple years ago.

   More and more employers are seeing the need for continuing education, especially in the area of computers said, Kon Gaudes director of corporate education services at the Milwaukee School of Engineering. Getting a college degree can help employees do their job more efficiently and move up the career ladder. Businesses in America have spent $10 billion on a tuition assistance program in 2003.A study done by the Council for Adult and Experimental Learning has found that educational benefits have stayed the same or increased since 2003.89% of people surveyed agreed tuition assistance programs are a good investment. The educational assistance program helps make a more skilled, trained and better workforce. The top three motives to have tuition assistance programs at company’s are: 48% had an increase in retention with participants, 42% saw a potential for promotion at work, and last 43% saw a better job performance(Johnson,Nov2005 Para 10)

   It is good to inform the employees about tuition assistance programs. The study also showed one in three employees are not even aware of the tuition assistance programs at their job. The tuition assistance program is split between too many parties at CAEL.The decisions for these programs are distributed between the corporate office, the local business units and supervisors, so they don’t know who’s job it is to make sure the program is running smoothly. A survey data showed that companies that follow the outcome of their program were two to three more likely to

                                                                                                                                                   p.4

see a good outcome. You compare the workers in the program to their colleagues who are not in the program and see who gets promoted and who does not (Johnson, Nov 2005 para 11).

    At Information Management Group employees can take training classes to improve their skills at work not costing them a dime. When employees start work at Information Management Group they plan to work their just a year to improve their skills, but end up working there three years. There is no turnover at that job, either. (Johnson, Nov2005, para )

   The more educated someone is, the more important you are to your company. Companies should reimburse employees for school for two main reasons.  First, More employers stay at the company if their tuition is paid by the company.  But most important, College is expensive. Thirty-six percent of managers in human resources have not compared employees who went to school with the assistance program and employees who haven’t been to school. If the company does not know the good results of this program, they might cut the tuition program when times get tough, when they could really use it. Tracking employees in tuition assistance program helped reduce 40% turnover rate in sales jobs. (Johnson, Nov 2005 para 15)

   So companies should pay student’s tuition because there is less of a turnover rate when employees participate in those programs. The employees stay at their job longer than usual if benefited by their employer.    Paying employee’s tuition won’t just help the employees but will help companies too.