The emerging workplace perk employees expect and employers need
Education benefits are emerging as an expectation during “The Great Retention.”
The Great Resignation, which peaked during the COVID-19 pandemic in November of 2021, put employees in the driver’s seat and prompted companies to prioritize existing employees’ well-being. In fact, according to a study by Mercer, 70% of all large employers were planning benefit enhancements for 2023.
These enhancements just might be working. The Bureau of Labor Statistics data suggests resignations and hirings may be stabilizing, and a new workforce development survey sponsored by Strategic Education of over 2,000 working Americans shows that a majority of workers seem to be happier at their current jobs than they were last year.
So begins a new era of “The Great Retention,” in which employers are turning their attention to retaining talented employees, rather than hiring new ones.
Some organizations are prioritizing learning opportunities as they work to improve retention, according to LinkedIn’s Workplace Learning Report 2023. This is wise because Strategic Education’s survey found that 87% of workers believe employers should be investing in their continued education—up 4% from last year’s survey.
Education benefits as key retention tool
Even in times of economic uncertainty, employers look for ways to retain good employees, as employee attrition could interfere with productivity and potentially lead to production delays and lost time. According to Strategic Education’s survey, education benefits may be emerging as a key retention tool that motivates workers and increases loyalty to their current employer. The survey found that 91% of workers rated workplace learning as important, and those with employers who support the continued education of their employees said they feel loyal to and more valued by their employer.
Supporting an employee’s pursuit of higher education, specifically, may be a good way to bolster employee loyalty while simultaneously promoting professional development. Among respondents who indicate their organization encourages them to continue their education to advance in the organization, 90% claim this encouragement makes them more likely to stay with their current employer.
Most striking, 44% of workers say they would likely remain with their current employer for three or more years if they were to earn a degree or certification through an employer’s education benefit.
The skills needed for today’s workforce are evolving at a pace that can require the constant upskilling of employees to remain competitive. Employers who invest in their employee’s education could maintain a competitive advantage. In fact, the World Economic Forum’s Future of Jobs Report 2023 finds that globally, six in 10 workers will require training before 2027, but only half have access to adequate training opportunities today.
What employers need to know
For employers considering an investment in tuition benefits, there are a few things they should keep in mind to help ensure success for both their organization and their employees:
Provide a variety of flexible learning options so that employees use the benefit. Employees who can choose what and where they want to study may be more willing to take advantage of education benefits. In fact, 82% of workers surveyed said that they would use employer-sponsored tuition benefits programs if they had the flexibility to choose what to study and which school to attend. To make tuition benefits more flexible, ensure programs include hybrid (both in-person and online) degree options and self-paced courses.
Communicate the benefit often. While it is great to offer tuition benefits, it is equally important to make sure employees take advantage of the benefit. Communicate the benefit often through a variety of internal channels.
Make it easy to access courses and programs that support employee goals. Streamline the process by using a management system with a network of educational providers that gives employees direct access to multiple, no cost and/or discounted degree programs and professional development opportunities. Selecting a partner with a variety of programs and degree options may help encourage employees to apply.
Measure the impact. Be sure to use a benefit management provider that can help measure the impact of the tuition benefits program on employee skill development and organizational capabilities, as well as on hiring and retention. It’s also important to get feedback from employees who have taken advantage of the benefit to understand how it’s improved and grown their skills.
What employees need to know
Taking advantage of tuition benefits can allow employees to upskill or reskill, helping them stand out among colleagues and feel more inspired at work. For employees interested in taking advantage of tuition benefits, here are some questions to consider:
What is your goal? Decide what type of education will help you achieve your goal: Do you need a specific program, or would a certificate suffice? Would a certain credential further your career? What type of program is most achievable, and where will you get the most support?
What type of program is best for working adults? If you plan to work full time while earning a degree or credential, look for an online or hybrid program with flexibility that offers support for working adults. Ask your employer for the time and flexibility you need to complete an education program.
Are you eligible for credit for prior learning (CPL)? If you have prior work or learning experience, research whether you are eligible for credit for prior learning. This could help give you a head start and make it quicker to get to the finish line.
How else will your employer support you? Of course, it takes more than enrolling in an employer-sponsored tuition assistance program to succeed at your workplace. Consider talking to your employer about your career options and factor in how your education can help you reach your goals.
Education benefits as a new normal
Traditional employee benefits, including healthcare, dental and paid time off, keep employees healthy and productive—a win-win for both employers and employees. Strategic Education’s research shows education benefits may be joining this mix of expected and valued benefits.
However, as these benefits increasingly become the norm, it will be important for employers to offer education benefit programs that give employees quality choices in how they use them, while measuring the impact of it. Also, for employees ready to become working adult students, it will be important to find flexible programs that helps them achieve their career goals. When both employers and employees get this right, everyone wins.
To learn more about Strategic Education’s workplace development survey results, click here.