Establishing a Tuition-Reimbursement Program

While paying for employees' college costs can be expensive, tuition-reimbursement programs can be an effective way to recruit and retain good workers. It can help foster employee job satisfaction, improve

In a study conducted by Spherion, a staffing and employment-services firm, 62 percent of the respondents who had received training or mentoring said they were very likely to stay with their current employer. And 61 percent of employees who were mentored said they were likely to remain in their jobs for the next five years.

Like any other type of compensation or benefit, setting up a tuition-reimbursement program requires some foresight and planning. Before you establish a tuition-reimbursement program, consider the following:

What you'll reimburse. Decide what type of classes — vocational, technical or academic — your program will cover, and if your reimbursement will cover books and other related fees.