H R D880 Msmith Presentation

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  • Im not handcuffed currently but for the right company i wouldnt mind being...cause you're right i would see myself having a future at the company..and even if i didnt see a future i would probably still do the tuition reimbursement to gain some skills...it might even make me want to stay....great 'handcuff' analogy....never really looked at it that way ....but a great concept to remember it.....awesome job...
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  • Great job Mike. Everything flows very nice. Tons of good info.
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  • Nice job Mike. Very well explained.
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  • Good info, I agree most companies are cutting this and not utilizing it the way it should

    S Morrison
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H R D880 Msmith Presentation

  1. 1. Maximizing the Investment: Managing Tuition Reimbursement Programs Michael D. Smith Submitted in Partial Fulfillment of HRD 880 – Spring 2008 Clemson University
  2. 2. What is tuition reimbursement <ul><li>Tuition reimbursement is a common benefit utilized in both the private and public sector </li></ul><ul><li>Tuition reimbursement is used as an employee retention tool </li></ul>
  3. 3. Does tuition reimbursement work? <ul><li>Yes & No </li></ul><ul><ul><li>Evidence supports it as a retention tool while the participant is enrolled in the educational program </li></ul></ul><ul><ul><li>Evidence supports higher intent to turn over upon completion of the educational program </li></ul></ul>
  4. 4. Losing the benefit <ul><li>Due to the economic down turn companies are reviewing benefits to “trim the fat” </li></ul><ul><ul><li>18% of SHRM members have already cut tuition reimbursement programs 1 </li></ul></ul><ul><ul><li>42% of SHRM members state that cuts are likely 1 </li></ul></ul>
  5. 5. Why save tuition reimbursement? <ul><li>With the downturn in economic stability and increase in unemployment – benefits used to replace job security are very important </li></ul><ul><li>Tuition reimbursement involvement does increase retention over those not involved 2 </li></ul>
  6. 6. How do we save the program? <ul><li>This research project is designed to address this very problem </li></ul><ul><ul><li>Completion of a degree increases turn over 3 </li></ul></ul><ul><ul><li>Studies show that employees who are promoted or have a sense of future with a company are less likely to turn over upon completion 4 </li></ul></ul><ul><ul><li>Investigate the utility of commitment requirements also known as “handcuffs” </li></ul></ul>
  7. 7. Theory… <ul><li>Handcuffs do not work </li></ul><ul><ul><li>Employees will avoid tuition reimbursement programs which utilize “handcuffs” if they feel there is no future at their current employer. </li></ul></ul><ul><ul><li>Employees who do not accept tuition reimbursement due to “handcuffs” are more likely to turn over upon degree completion. </li></ul></ul><ul><ul><li>Employees who offer tuition reimbursement programs without “handcuffs” have a higher participation rate than those with “handcuffs.” </li></ul></ul>
  8. 8. Theory… <ul><li>Development & Opportunity </li></ul><ul><ul><li>Employees taking part in tuition reimbursement programs demonstrate a lower intent to turn over if there is opportunity for promotion or further development, regardless of “handcuffs.” </li></ul></ul><ul><ul><li>Employers who offer career development programs in conjunction with tuition reimbursement experience a lower turn over rate </li></ul></ul>
  9. 9. Method <ul><li>Utilize 2 separate surveys </li></ul><ul><ul><li>Survey One will be administered to Graduate School Students </li></ul></ul><ul><ul><ul><li>Address Hypothesis 1, 2, & 4 </li></ul></ul></ul><ul><ul><li>Survey Two will be administered to Company Benefits Managers </li></ul></ul><ul><ul><ul><li>Address Hypothesis 3 & 5 </li></ul></ul></ul>
  10. 10. Summary <ul><li>Tuition reimbursement is a critical employee retention tool </li></ul><ul><li>An increased understanding of the utility of “handcuffs” and career programs will help employers develop affective tuition reimbursement programs </li></ul><ul><li>Through this research employers will be better equipped to maximize their investment in tuition reimbursement programs </li></ul>
  11. 11. References <ul><ul><li>1: Society for Human Resource Management. (2009) SHRM Poll: Financial Challenges to the U.S. & Global Economy and Their Impact on Organizations. </li></ul></ul><ul><ul><li>2: Benson, G. S.; Finegold, D.; & Mohrman, S. A. (2004). You Paid for the Skills, Now Keep Them: Tuition Reimbursement and Voluntary Turnover. Academy of Management Journal, 47(3), 315 </li></ul></ul><ul><ul><li>3: Krueger, A.; Rose, C. (1998). The Effects of Workplace Education on Earnings, Turnover, and Job Performance. Journal of Labor Economics, 16(1), 61-94. </li></ul></ul><ul><ul><li>4: Benson, G. S. (2006). Employee Development, Commitment and Intention to Turnover: A test of ‘Employability’ Policies in Action. Human Resource Management Journal , 16(2), 173. </li></ul></ul>

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