A company will hire a person with minimum graduation and will make sure that he possesses all the basic skills that are required for his position in the company. Once he starts working there is a need for skill upgradation. Many new advanced technologies are introduced in the market and there is lots of digital transformation that forces each company to get adapted to the advancements. Technologies like Big Data, Artificial Intelligence, digital marketing have proved to leverage business growth.
There is a wide shortage of personnel who are skilled in these sectors. If you want to hire a person who is already trained in these fields, you need to pay him more as he can demand high. This has made the company think about upgrading the skills of the existing employees and the employee needs to know how to implement those technologies in his work. This will enhance the performance of his job and bring more productivity to the company.
What is Tuition reimbursement?
Tuition reimbursement is a part of employee benefits provided by the employer. In other words, it is a contractual agreement that the employer makes with his employee for allowing him to take up a course to upgrade his skills and the company will bear the tuition fee for that course. Initially, the employee will pay the fee and then he can claim it from his company.
Why the employer offers a tuition reimbursement program?
- This is one of the key aspects of retaining the top talents of the company.
- Payment done through tuition reimbursement programs are excluded from taxes. Up to $5250 per employee per year is non-deductable.
- To sharpen the employees’ skills and gain more productivity.
How does it work?
As an employee, if you want to avail of this benefit you need to first sit with your HR team and understand the terms and conditions of this program. There will be some eligibility criteria to take up this program. Make sure you fulfill all the norms and are eligible for this program. Then apply for the program and then start doing the course. The terms and conditions for this program vary from company to company. Let us discuss the common terms for this tuition reimbursement program.
The common terms and Conditions for the Tuition reimbursement program
- The employee cannot any course of his choice. The course which he selects to learn should be work-related and that should benefit your work.
- You should have a minimum qualification to upgrade your knowledge. All employees cannot apply for this scheme.
- Every company will have a certain restriction on the tuition fee. Check with your company before you join the course.
- In certain companies, the employer will directly pay the tuition fee to the coaching center. But in most cases, the employer will reimburse later. You need to know how long they will take to reimburse.
- The duration of your working period with the organization should be eligible for your tuition fee. You should fulfill the minimum period of working with the organization. Only then the company will pay for you.
- Few companies will ask the employees to enter the bond agreement so that they will utilize their learning for the company’s welfare.
How to get started?
If your company is providing tuition reimbursement and you are also interested to gain knowledge then you need to follow the below-mentioned steps.
- Get a copy of the tuition reimbursement program policy and thoroughly read the document and understand the eligibility criteria. If you fit into that criteria then proceed further.
- Discuss with your HR team and let them know your objective of taking up the course. The HR team will give more guidance on this matter.
- Getting prior approval from the employer is mandatory. So first fill in the request form and send it for the employer’s approval.
- Complete all the required paper works that are essential to enroll yourself in this tuition reimbursement scheme.
- Once you complete the course, you need to follow the paper works and submit the required documents that acknowledge your completion of the course.
- Wait patiently till the company reimburses the amount. If there is any unexpected delay then keep reminding your HR department.
How to utilize this tuition reimbursement program?
Although the company comes with several plans and benefits for its employees, still employee lacks awareness about these programs. It is very important to make use of these schemes and should upgrade our knowledge free of cost. Employees should do some preliminary checks before starting this program.
First, select the course you want to study and make sure that the course is relevant to your work. Go through the prospectus of the certification in detail. Without understanding the course there is no point in joining the course. Now select the center where you are going to take up the course. You need to inform your company about the center where you are going to study and should get their approval as well.
Put all your effort into learning the course and make sure you get good grades. Because certain companies will have in their norm that the employee should pass with 85% or above only then they will reimburse you the amount. In this case, you need to concentrate well and should not avoid any of the classes. Clarify your doubts then and there with the faculty and do not take the course easy.
The leading companies that offer a tuition reimbursement program
Top MNCs never fail to impress their employees. So most of the MNCs have this scheme and they have their norms and criteria. They will approve according to their terms and conditions.
- Procter & Gamble (P&G) – the leaders in FMCG reimburses around 80% of the tuition fee for its employees.
- Adobe – a multinational software company has allotted around $10,000 per year as tuition fees in its budget.
- Amazon – and online retailer has a genuine tuition reimbursement scheme for its employees. And it covers up to 95% of the tuition fee and allotted up to $12,000 per year.