Rosalind Evans
As many Americans struggle to afford a college education, corporations are increasingly leveraging tuition assistance programs as a potent tool to attract and retain employees.
Over recent years, there’s been a notable rise in businesses introducing or augmenting free college programs as part of their benefits package. Such programs not only bolster hiring and reduce turnover rates, but they also help alleviate the burden of student debt and promote the overall welfare of employees, as per industry experts.
Major corporations like Walmart, McDonald’s, T-Mobile, Amazon, Home Depot, Target, UPS, FedEx, Chipotle, and Starbucks have already implemented programs to support employees who wish to return to school. Waste Management stands out in offering this benefit to its employees and their spouses and children, covering costs for college degrees and professional certificates.
While employer-sponsored education isn’t novel—businesses have historically covered postgraduate education costs for white-collar workers—what’s new is the expansion of this benefit to front-line staff, including drivers, cashiers, and hourly workers. Companies are now promoting this benefit more aggressively than before.
In the aftermath of the Covid-19 pandemic, offering such benefits is becoming increasingly important in attracting and retaining talent. According to the Society for Human Resource Management’s 2022 employee benefits survey, more companies now provide opportunities for skill development. As per the survey, 48% of employers offer undergraduate or graduate tuition assistance, while a 2021 survey by Willis Towers Watson found that 80% of large employers provide tuition reimbursement.
Tara Sims, an associate at a Walmart store in Fayetteville, Arkansas, illustrates the potential of these programs. She’s currently pursuing a business administration degree through Walmart’s Live Better U education program. A key motivation for Sims was her 12-year-old daughter, Brylie, and she hopes to inspire her by completing her degree.
Walmart has been leading the way in employee education benefits. Five years ago, the retail giant launched an extensive educational assistance plan. In 2021, they announced that the program would cover 100% of tuition and book costs for all full- and part-time associates.
Lorraine Stomski, Senior Vice President of Learning and Leadership at Walmart, believes these initiatives are crucial in facing the higher education system’s challenges. She notes that Walmart’s programs have saved employees almost half a billion dollars in potential student debt over the last five years.
The Live Better U program has already benefited around 104,000 Walmart and Sam’s Club associates, as announced by the company. According to Rachel Romer, CEO of Guild Education, Walmart’s program partner, these employees are twice as likely to receive promotions and four times less likely to quit.
Romer states their goal is to “create career mobility,” she observes that Walmart’s initiatives have spurred other companies to follow suit.
Tuition assistance programs are becoming a significant part of corporate employee attraction, retention, and development strategies. As more companies follow suit, these initiatives will ease the burden of student debt, foster lifelong learning, and open avenues for career advancement for many employees. With industry giants leading the way, the future looks promising for workers looking to enhance their skills and qualifications while juggling their careers.
