Employee Education Reimbursement Plans Help Employers Too!
Employee education reimbursement benefits are becoming more and more common in benefits packages, and it’s no surprise. The average annual cost for a full-time college student has increased 180%1 since 1980. And with many jobs requiring a Bachelor’s degree at minimum, graduates find themselves saddled with years of monthly payments ahead. While employee education reimbursement benefits help cover those costs for eligible employees, they aren’t the only ones who benefit. Employers see returns too!
Offering student loan reimbursement could be the difference between hiring the perfect candidate for your open role and losing them to a competitor. Even if you have stellar company culture and offer a great work and life balance, sometimes getting their loans paid off is the bottom line for employees. Plus, providing student loan reimbursement positions the employer as one that cares about their staff.
Employee education reimbursement benefits don’t stop at student loans! Tuition reimbursement can be an invaluable tool for employers! You gain the traditional benefits of attracting and retaining employees, but you also gain the ability to invest in your own staff’s development. By helping your employees upskill, you can alleviate the stress of finding external candidates by filling those roles from within. Help your employees gain new skills, expertise, certifications, and more that directly address skill gaps within your workforce.
Employers can save money on taxes too. Under the Coronavirus Aid Relief and Economic Security Act ( the CARES Act), Student Loan Reimbursement programs are tax-free up to $5,250 through December 31, 2025.2
It’s time for employers to look at education reimbursement benefits as a plus for themselves, too. BASIC Education Accounts gives employers exactly what they need, including both Student Loan Reimbursement and Tuition Reimbursement accounts. Both plans can be designed to encourage long term employment and loyalty by setting up tiered benefit levels based on tenure, allowing employees to “unlock” additional benefits over time. Set eligibility requirements for Tuition Reimbursement such as employer-approved programs, minimum GPA, and much more to develop the skills that will help your organization grow. BASIC gives you the tools to develop your in-house talent pool on your own terms.
