Employees going back to college could mean better outcomes for your business

Businesses have an opportunity to make their company more competitive by helping employees improve their skills. 

Learn more about the benefits of investing in employee education and see how you can get started.

The main benefit you could find by investing in employee education is better retention rates and less turnover. In a survey of employees pursuing postsecondary education, the reasons workers gave for wanting a degree were:

  • A bigger salary (68%)
  • The opportunity to change jobs (48%)
  • Personal fulfillment (28%)

Clearly, employees see education as a method to advance their career through an increase in salary and a job that better meets their new skill level. Employers shouldn’t take this to mean that employees want to leave their business, however.

By helping your employees return to college, or go for the first time, and rewarding those that earn degrees or certificates with better pay and opportunities, you can reap the benefits instead of losing them to a competing business.

A recent case study of healthcare giant Cigna found this idea was borne out in an analysis of their tuition reimbursement program. The Lumina Foundation, who named Nashville as a Talent Hub in 2017, partnered with Cigna to design the study and analyze the return on investment for Cigna’s Education Reimbursement Program.

This analysis found a 129% return on investment. In other words, for every dollar Cigna spent on the Education Reimbursement Program, the company received $1.29. Furthermore, the program significantly boosted employee retention. Program participants were 10% more likely to be promoted, 8% more likely to stay at the company and 7.5% more likely to be transferred to a new role within Cigna. The reduced turnover costs certainly contributed to the return on investment that Cigna saw from 2012 to 2014.

How can your business follow in the footsteps of companies like Cigna, Starbucks and Anthem in supporting employees that want to return to college, or pursue a degree for the first time?

In Tennessee, and the Nashville region, employers have a unique opportunity to encourage their employers to return to school with significantly less financial investment. The Middle Tennessee Reconnect Community helps Tennessee residents in our region attend community college tuition-free.

Employees who meet the following criteria could take advantage of this opportunity:

  • Not already have an associate or bachelor’s degree;
  • Have been a Tennessee resident for one year;
  • Complete the FAFSA and be determined as an independent student;
  • Be admitted to a community college and enroll in a degree or certificate program at least part-time; and
  • Participate in an advising program

If you want to start the process of helping your employees reconnect to postsecondary education, check out the employer resources on the Middle Tennessee Reconnect website here. While some employees may qualify for the Tennessee Reconnect program, you should also investigate creating a tuition reimbursement program to help employees who already have a degree increase their skills.

If you have any questions about Middle Tennessee Reconnect and how to participate, contact info@midtnrecconect.org to learn more.

Connect With the Chamber