Tuition Assistance Programs

Transcription

1 Tuition Assistance Programs Best Practices for Maximizing a Key Talent Investment Dr. Brenda Kowske Senior Analyst, Human Resources Bersin & Associates Mark Ward Vice President and General Manager EdAssist December 4,

2 Impending Workforce Churn Recession 2

3 2012 Business Environment Expansion & Globalization What Are Your Organization s Top Business Challenges for 2012? 35% of organizations see the need to accelerate growth and globalize the highest level in four years. yet 46% Increase 150% Increase 51% struggle to hire the right talent, 31% Increase despite high unemployment 46% Increase Bersin & Associates, Corporate TalentTrends Research, Senior HR and Business Executives, 1/2010 Dec May

4 We ve Got the Demand Now Control the Supply 4 4

5 Agenda The Role of Tuition Assistance From Entitlement to Talent Management Tool Top Five Research Findings To Improve Effectiveness Elevate Program Maturity From Consistent to Customized 5

6 The Role of Tuition Assistance From Entitlement to Talent Management Tool 6 6

7 What Is A Tuition Assistance Program? A tuition assistance program manages employers contributions to employees tuition costs. In a tuition assistance program, an employer pays all or part of an employee's cost to attend college or university classes, which may include both degree and non-degree programs. 7

8 TAP: An Often-Used Tool 71% offer a TAP 8

9 Education supported by TAPs 9

10 Top 5 Benefits to Employers HR Strategies 1. Retention (62%) 2. Overall strategic talent/human capital objectives (55%) 3. Talent mobility (54%) 4. Supports learning and development (47%) 5. Recruitment (47%) 10

11 Top 5 Benefits to Employees 1. New opportunities and responsibilities within the company (70%) 2. Improved performance and a strong desire for increased responsibility within the company (65%) 3. Stability, staying with their company after completing their course of study (64%) 4. Promoted within the company (63%) 5. Increased engagement (63%) 11

12 Top Five Research Findings To Improve Effectiveness 12 12

13 Top Five Findings 1. Organizations are increasingly aligning tuition assistance with their talent management strategies. 2. Contrary to popular belief, the majority of employees who participate in a TAP do not leave their organization. 3. The number of U.S. companies offering tuition assistance to their employees has declined. 4. The cost per participant has increased. 5. Most companies report that they measure the value of their tuition assistance programs. 13

14 Finding #1: TAP Alignment 14

15 Finding #2: Participants Stay 71% say participants stay after the stay period. 92% of high value TAP organizations report participants are more likely to stay. 15

16 Finding #3: Drop in Use 16% LESS than in

17 Finding #4: Increased Cost Per Participant 17

18 Finding #5: Measuring Value 18

19 Elevate Program Maturity From Consistent to Customized 19 19

20 Bersin & Associates Tuition Assistance Maturity Model Level 4: Develop and Deliver of Custom Degree Programs Level 3: Align With Talent Management Strategies Level 2: Standardize and Support Employee Development Goals Level 1: Inconsistent Standards, Policies, and Administration Source: Bersin & Associates,

21 Advancing Maturity: 10 Best Practices 1. Align tuition assistance with the organization s talent strategy. 2. Leverage tuition assistance in support of L&D objectives. 3. Centralize the program. 4. Establish and maintain an agile program management approach. 5. Maintain strong executive engagement. 6. Promote the program to all key stakeholders. 7. Celebrate employee achievements gained through tuition assistance. 8. Develop a comprehensive top-down, bottom-up budgeting process. 9. Enter into strategic partnerships and alliances with schools. 10. Develop and deploy a comprehensive program evaluation system. 21

22 Align Tuition Assistance with Talent Strategy Issue: TAP program not closely monitored; costs were unknown Solution: - Link TAP to company goals and strengthen alignment with L&D - Establish deeper partnership with external TAP management provider - Implement measurement and tracking program 22

23 Align Tuition Assistance with Talent Strategy Lesson Learned First understand your corporate talent strategy and then structure your program to align with that strategy. 23

24 Centralize the Program Issue: - Decentralized TAP programs with no consistency in policies and administrative procedures; low employee morale Solution: - Centralize and standardize company-wide tuition assistance program - Allow for policy flexibility based on business unit s needs - Leverage third party TAP management provider to improve compliance and consistency 24

25 Centralize the Program Lesson Learned Determine what centralization means to you - based on your policy and business units needs and remain flexible. 25

26 Establish and Maintain an Agile Program Management Approach Issue: - Sprint leaders wanted to establish real value before reinstating their TAP program Solution: - Shift focus from simple retention to grow employee skillsets and encourage innovation - 12-month stay period changed to a 6-month waiting period - Introduced educational advising to align employee goals together with corporate needs 26

27 Establish and Maintain an Agile Program Management Approach Lesson Learned Adjust goals to accommodate changing business conditions, solicit feedback to find ways to improve, and build the right capabilities to accommodate change. 27

28 Enter into Strategic Partnerships and Alliances with Schools Issue: - Stretch tuition assistance dollars to develop specific skill sets among employees Solution: - Offer higher levels of savings and service through third party s Education Network - Cleveland Clinic Preferred Education Network 28

29 Enter into Strategic Partnerships and Alliances with Schools Lesson Learned Partnering with education institutions to highlight key programs and services will provide maximum strategic benefit to the organization. 29

30 Conclusion 30 30

31 Supporting Business Success with Tuition Assistance Talent Strategy Efficient Workforce Development Stable Workforce Secured Supply of Talent 31

32 Thank You! Questions or Comments? : brendakowske : Brenda Kowske mward@edassist.com : Mark B. Ward For more information about our WhatWorks Membership, contact us today at info@bersin.com 32