One example is having a "clawback clause" which tells employees they will be forced to repay any reimbursed tuition if they don't commit to staying with an employer for at least 2 years after using the benefit. Most companies think these policies protect the company when in reality they often create a negative association with the benefit, discourage employees from using it and hurt the company in the end. If you look at the data, retention for employees using education benefits is almost always higher compared to employees not using the benefit.

Uncertain economic conditions are impacting all types of workplaces. Why is 2023 a good time for employees to focus on leveraging a benefit like tuition reimbursement?

Regardless of the economic conditions, it's always a good time for employees to invest in their skills and expand their capabilities, however, during an economic downturn, it becomes even more important. In fact, a recent study finds that 89% of employees are motivated to improve their skills and 83% say this is a top priority heading into the new year. With this in mind, employers and employees alike should capitalize on offering and utilizing upskilling and reskilling benefits like tuition reimbursement.

Working towards a higher education degree while working full time can be daunting and may not be realistic for all employees. What are the other ways to leverage tuition reimbursement dollars outside a traditional master's degree?

First, employees must review their employer's tuition reimbursement policy because not all programs cover alternative paths to education like a certificate or non-degree programs. Employees who are looking to obtain additional education outside of traditional master's degrees can explore options like certificate programs. These types of credentials help workers gain new skills and garner an edge in the workforce through bite-size courses that require less of their time to complete.

Not only do employees need to explore their employers' offerings, but they also need to vet the schools and programs they are looking at before enrolling. Employees must understand how well a university supports working adults before taking their courses and making the commitment and financial investment. In some cases, employers may partner with an OPM who vets all schools, programs, and student policies to ensure they have high success rates with working adults beforehand, however, a little bit of research can go a long way.

How can a person determine if they should pursue a more traditional degree versus an industry credential or certification?

To understand if an employee should pursue a more traditional degree versus an industry credential or certification, they need to begin by mapping out their professional goals. Employees can look at other individuals in roles they aspire to grow into within or outside their company and identify the level of education and skills they acquired. Finding a mentor to provide advice and guidance can help an employee steer their career toward the right path tailored to their professional goals.

Through research and outreach, an employee can gather insights into the type of industry and organization they would like to work for, which certificates and credentials can stack into degrees, and optimize their skill set. It's crucial for employees to take the time to understand the learning landscape of the tailored professional pathway they want to pursue.

How do learning and development programs like tuition reimbursement promote increased recruitment and retention for businesses? Why is now the right time for employers to invest in development opportunities?

With a persistently tight labor market and uncertain economic times continuing, it will become more challenging for employers to use merit increases, bonuses, or other financial incentives alone to recruit and retain employees. Opportunities for growth through new skills, training, and education are a top priority for Gen Z and Millennials, in particular.

Studies show tuition reimbursement programs consistently have positive ROI and stronger retention rates. Forward-thinking employers like PNC have set a new bar for what employees expect from their employer in regard to helping employees advance career growth. Thoughtful organizations will turn to L&D and education programs to help provide opportunities for growth for current employees and attract new ones.