Are You Willing to Educate Your Employees?

While it's more common for large, established companies to offer their employees tuition assistance, some small businesses do, too.

Tuition reimbursement programs aren't just for the benefit of the employee; the employer may also benefit greatly, as well.

Now, why would a small business even want to offer tuition reimbursement and carry on that added expense?

Put simply, it may help your business attract better candidates - candidates who want to continue learning and are willing to put in the time and effort.

The advancement of online learning has made it easier for a variety of working individuals to return to school, plus it can be more affordable than traditional, brick-and-mortar learning.

According to the article "3 Education Trends Likely to Continue in 2014," online learning will continue to grow, massive open online classes (MOOCs) will become more widely accepted and higher education will become more affordable.

Pros of offering tuition reimbursement

In addition to attracting better candidates, other things to take into account when considering whether or not to offer tuition reimbursement to your employees include:

• Tax benefits - Tuition reimbursement is known as a fringe benefit according to the IRS. Employers can get a tax break by providing fringe benefits - which includes benefits, life insurance coverage, tuition reimbursement and more.

• Gained skills - Perhaps a few of your employees are lacking in essential skills - whether they're business-related or specific job-related skills. Helping pay for them to return to school may help them be more productive as your employee, thus increasing revenue.

• Attract responsible employees - Those who are able to both hold down a full-time job while simultaneously attending school (not to mention those that have families) are going to have their priorities in order. They're typically self-starters, motivated and very organized. Having a person with these qualities working for you will most likely benefit your company greatly.
  

Cons of offering tuition reimbursement

While there aren't many cons, there are two that can be a deal breaker for some small businesses.

They are:

• Tuition reimbursement is expensive - Even though your business will get a tax break, you'll still be responsible for spending thousands of dollars per year on every employee that takes advantage of the tuition reimbursement program. This may just not be something you can afford at the time.

• The employee may not stay with you long-term - The other downside is there is no guarantee that the employee will continue working for you once their degree is obtained. You can have a clause in your tuition reimbursement program that states the employee must continue working for your company for X number of years once schooling is complete, but after that time the employee is free to go. They may choose to work for a larger company that pays more or offers more room for advancement. Unfortunately, there's nothing you can do to force them to stay.

Deciding whether or not to offer tuition reimbursement to your employees is a tough decision.

Carefully weigh the pros and cons, see if any of your current employees would be interested and make an informed decision.

Even if you can't do it now, maybe it's something you can offer down the line as your company grows.