Article
January 18th, 2024 · 3 min read
Must-know tuition reimbursement statistics for 2024
Written by: Izabelle Hundrev
A tuition reimbursement program reinforces a company’s commitment to providing employees with opportunities for learning and growth, without the huge financial burden. This has proven to result in a much higher rate of employee engagement and retention, while effectively demonstrating corporate social responsibility.
Yet…
Many traditional tuition reimbursement initiatives often fail to meet their potential.
Data reveals that while 80% of working adults are interested in going to school, only 40% know their employer offers a tuition reimbursement assistance program and a smaller fraction — 2% of employees — actually participate.
Here are some key tuition reimbursement statistics to help you understand the benefits and challenges of these programs.
10 tuition reimbursement and assistance statistics
It’s clear that a different approach is needed — one that offers a flexible tuition reimbursement strategy that’s accessible and aligns with both corporate and employee needs. Below are more employee tuition reimbursement statistics that highlight why the right type of program matters for your company and people.
- Only about 25% of interested employees ever start an application to take advantage of a tuition reimbursement benefit. (InStride/Bain & Co.)
- 76% of tuition reimbursement participants participated in a program for assistance or growth opportunities, and two–thirds participated for learning new skills. (EdAssist)
- Most respondents (82%) said the skills or degree earned through their employer’s tuition reimbursement program helped them be a more effective employee and 84% feel it helped them prepare for the future of work. (Bright Horizons)
- U.S. corporations spend nearly $180 billion annually on formal training and talent development, $28 billion of which is tuition reimbursement. (The Georgetown University Center on Education and the Workforce)
- 47% of employers offered tuition reimbursement to their employees in 2020. (Society for Human Resource Management)
- 76% of employees said they are more likely to stay with their employer because of its tuition reimbursement benefit. (Bright Horizons)
- Organizations use different techniques for reimbursing student employees. The majority (87%) reimburse after the end of study. The most common reimbursement amount to employees is $5,000 to $5,999. (IFEBP)
- 84% of employees cited tuition assistance as an important factor in their decision to join their companies. In fact, 71% of participants rated tuition assistance among the best benefits offered by their employers after healthcare. (EdAssist)
- 45% of Millennials report they would change their job for tuition reimbursement benefits. (Gallup)
- 88% of Gen Z workers say they are more likely to recommend their employer because of its education benefits. (Bright Horizons)
When corporations offer tuition reimbursement, employees have the opportunity to enhance their competitive abilities and refine their skills. At the same time, although these programs have many benefits, it’s clear that this traditional approach to employee education has quickly become outdated and ineffective.
To drive better business outcomes, many leading organizations are moving beyond tuition reimbursement and taking a more modern approach to workforce education — one that offers direct tuition coverage and is more accessible to employees.
Ready to see how you can provide your workforce with a more accessible path to education? Connect with one of InStride’s education experts today.
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