How a growing number of Americans feel priced for higher education, help with teaching may be the most valuable incentive companies use to attract and retain workers.
In the past few years, more businesses have added or expanded the benefits of free college programs. Free or discounted higher education not only improves recruitment and retention, but also reduces it student debt while promoting the long-term well-being of employees, experts say.
Big name companies included Walmart, McDonald’s, T-Mobile, Amazon, Home Depot, target, UPS, FedEx, Chipotle and Starbucks have programs to help cover the cost of going back to school. Waste management will not only pay for college education and professional certification for employees, but also offer the same benefit to their spouses and children.
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Of course, Employers paying their employees to earn a degree is nothing new. For decades, businesses have favored white-collar graduate degrees and MBAs.
However, many companies are now extending the benefit to front-line workers such as drivers, cashiers and hourly workers, and are also promoting the offer significantly more than before.
Due to the Covid-19 pandemic, these types of benefits are playing a big role in the competition for workers, and more companies are now offering opportunities to develop new skills, according to the Society for Human Resource Management’s Employee Benefits 2022. survey.
By then, 48% of employers said they offered college or graduate school assistance as a benefit, according to SHRM’s survey. A separate survey by Willis Towers Watson in 2021 found that 80% of large employers offer tuition reimbursement.
Programs can open ‘career pathways to higher paying roles’
“I thought about college, but I didn’t think I had the resources to work full-time and go to school,” said Tara Sims, 39, a Walmart store worker in Fayetteville, Arkansas.
Walmart connects Tara Sims with her daughter Brylie.
Source: Tara Sims
Sims is now almost a year into her bachelor’s degree in business administration through Walmart’s Live Better U education program. Sims, who will be the first person in her family to graduate from college, said her 12-year-old daughter, Brylie, has motivated her.
“I actually did an honor roll last fall and it was really exciting for me to share this email,” Sims said.
Five years ago, Walmart unveiled an ambitious educational assistance plan for its workers. Then in 2021, the nation’s largest employer announced that it would make the program completely free for all full-time and part-time employees, covering 100% of tuition and book costs.
“Our higher education system is in trouble right now,” said Lorraine Stomski, senior vice president of education and leadership at Walmart. “We just keep doubling down on programs that unlock these career paths to higher paying roles.”
Over the past five years, the company has helped employees save nearly half a billion dollars on what would otherwise be student debt, she estimated.
To date, about 104,000 associates of Walmart and its Sam’s Club subsidiary have participated in the Live Better U education program. announced on Thursday.
According to Rachel Romer, CEO of Rachel Romer, these employees are twice as likely to be promoted and four times less likely to leave the company. Guild Education, Walmart’s partner for the program.
“Our goal is to create career mobility,” Romer said, and “Walmart has also inspired other companies to get in the game.”
