Education benefits series
How to choose a tuition assistance provider
But what factors should you consider when choosing a platform or solution?
In this guide, we'll cover how to make an informed decision by covering:
→ The role of an education benefits administrator
→ The top factors to consider when choosing a vendor
→ How to measure the ROI of the partnership
Table of contents
- Chapter 1: The role of an education benefits provider
- Chapter 2: Factors to consider when choosing an administrator or vendor
- Chapter 3: Evaluating program success and outcomes: What ROI should you expect from an education benefits administrator?
- Chapter 4: How to make an informed decision step-by-step
Chapter 1
The role of a tuition assistance administrator
In this chapter, we'll cover how to:
→ Understand the role of an education benefits vendor
→ Align your program goals with administrator expertise
The role of an education benefits administrator/vendor
Education benefits can be a competitive advantage for an organization — but only if the program is designed and implemented strategically for accessibility and scale. To do it right, companies need to partner with the right platform or solution to produce key business outcomes: talent attraction and retention.
Traditional education benefits were structured as tuition reimbursement — where employees fronted the money for tuition and were reimbursed by their employer upon completion of their course.
But as education benefits proliferate, companies are recognizing that these programs are not enough. Employers need newer and more innovative strategies to differentiate themselves from competitors.
One of those strategies involves adopting tuition assistance. In this model, employers pay learning institutions directly for tuition to reduce or eliminate the need for employees to pay out of pocket. Because employers can directly pay for either part or all of tuition, the benefit becomes much more accessible to a larger percentage of your workforce, particularly frontline employees.
For the 30M US entry level employees in food prep, retail, and healthcare with a median pay of less than $15/hour, tuition assistance removes a key financial barrier to career advancement.
BLS Occupational Employment and Wage Statistics, 2021
Selecting the right education benefit administrator or vendor is crucial in ensuring that the payment mechanism — and general processes throughout the benefit — function smoothly.
Aligning program goals with administrator expertise
When searching for an education benefits administrator, organizations should first define program goals.
An education benefits program can further talent strategy in many ways – from attracting and retaining motivated talent to building internal pipelines through skill-enhancing courses. Different vendors can help you prioritize policies and structures that promote those goals.
Here are a few examples of goals and approaches you could take with education benefits:
If the primary goal is to attract and retain talent, organizations should look to offer a variety of programming options — both in educational format and course diversity — along with dedicated coaching and flexibility.
To boost career mobility with education benefits, organizations should focus on building career-aligned skills for roles that that map to business priorities — while making the program as accessible as possible at all levels.
Education benefits can also boost employee engagement. To do so, companies should market the programs heavily and remove barriers to entry, such as GPA requirements and manager approval.
Removing barriers to entry — particularly financial barriers — is also key to making progress against diversity, equity, and inclusion goals. Not all of your workforce can afford to pay for tuition upfront and wait for reimbursement, so be sure to prioritize offering tuition assistance as an option. In addition, fostering a sense of occupational identity — as we outline in this blog post on the fallacy of “own your own development” — in workers can promote equity as well.
Watch a Guild learner share why removing cost barriers to education can be life changing.
“You don’t always get the opportunity to do things like [Target and Guild’s career mobility program] when you’re a frontline worker. So a company that does that for you is a company you’re going to want to work hard for. This is life changing...because it opens up a lot of opportunities for me.”
Janice A., Guild learner and Executive Team Lead - Specialty Sales at Target
Chapter 2
Factors to consider when choosing a tuition assistance administrator
In this chapter, we'll cover seven essential offerings to look for when choosing an education benefits provider.
When evaluating potential education benefits administrators or vendors, there are a number of important factors to consider. These include:
1. Program Offerings
Employees come from a range of backgrounds and experiences. Their desired career destinations are just as diverse. Offering a range of program options, both short- and long-term, can meet a variety of needs for employees at all levels. Organizations should consider:
- Associate’s, bachelor’s, and master’s degrees
- Certificates and career diplomas
- Skills-based courses and bootcamps
Also consider whether the education benefit administrator can adjust program offerings and pivot to meet new market needs or business strategy, such as adding AI training for employees and durable skills that are foundational to basic professional growth, including decision making and customer service.
2. Technology Solutions
Education benefits should be powered by user-friendly, intuitive technology — for both employers offering the benefit and for employees accessing learning through the platform. Employees should have flexible options to access the platform, and employers should have relevant data analytics to track engagement.
3. Return on Investment
Employers can drive a positive ROI from education benefits through a number of talent outcomes, such as improved retention, which we break down on our infographic on 5 proven value drivers. To realize the most gains, an education benefit provider should focus the program on career mobility.
This signals to talent that the company is investing in their growth, which helps attract and retain motivated workers, while enabling the existing workforce to move around the business and grow their skills — helping individuals reach their goals while filling talent pipelines for the business.
4. Customized Career Pathways, Skill, and Job Alignment
When offering education benefits, vendors should work with the organization to identify priority roles, align education programs with skills, and map skills to those in-demand jobs. This process ensures that education is also helping build internal talent pipelines that matter to the organization.
In addition, select a vendor that provides benefits that actually drive learning and career outcomes for working adults. Stackable credentials or credit for prior training can also support outcomes, as we lay out in a blog post on 3 unique ways to boost employee engagement.
5. Support Services and Coaching
Education benefits providers can often offer employee coaching and support services to help individuals navigate educational options and career growth opportunities. This kind of support can remove barriers to mobility for many workers, enhance the employee experience, and accelerate growth and mobility.
Some vendors also target career coaching services for employees as they near program completion, ensuring that new skills align with priority opportunities within the organization. Look for providers offering 1:1 coaching that is consistent throughout the learning journey for optimal outcomes.
6. Provider Reputation
When selecting an education benefits provider, provider reputation is critical to understand. Organizations can review case studies and success stories from similar companies in their industry, look at news and press, and potentially contact references. Look for a long track record of success as well as continuous innovation.
7. Pre-Built Career Pathways
Consider whether education benefits providers offer ready-made career progression structures for employees. These can include career guidance and navigation support, clearly defined skill requirements, success stories, and actionable steps.
Chapter 3
Evaluating program outcomes and success metrics
In this chapter, we'll cover how to assess the ROI of education benefits.
Assessing the Return on Investment (ROI)
Part of the reason education benefits have proliferated in recent years is that the investment in employees has a positive return, directly impacting employee development and organizational success.
Companies can measure that success by evaluating outcomes and key performance metrics, such as employee skill development, career progression, satisfaction, and retention.
Retention is by far the most impactful value driver, and is often more than enough to cover the cost of the investment, as laid out in our report on the bottom line of investing in employee education, skilling, and career mobility. Employees who perceive organizational investment in their professional development are more likely to stay — at Waste Management, they’ve found that workers enrolled in the program are 60% more likely to retain.
Beyond retention, education benefits can enhance opportunities for career progression by equipping employees with job relevant skills and knowledge. This not only recognizes individual growth but fosters a culture of continuous learning within the organization.
In fact, research from Josh Bersin has found that the single most impactful practice for driving talent, business, and innovation outcomes is “creating extensive opportunities for career growth”.
A robust education benefits program also positively drives internal hires, accelerating recruitment processes and aligning employees with the organization's culture and goals — not to mention saving on external hiring costs. A generous program helps attract new talent as well, serving as a powerful recruitment tool in a competitive market.
Finally, a successful education benefits program contributes to brand lift, enhancing the organization's reputation as an employer of choice, positively resonating with clients, customers, and partners.
“At OSF we’ve had a really strong focus in recent years on employer of choice being one of our main system goals…and so if you think about [employee] experience and talent management, the entire Guild platform is crucial to that strategy and that goal.”
Jacki Fugitt, VP Shared Services and Strategic Partnerships at OSF HealthCare
Chapter 4
How to make an informed decision about which tuition assistance administrator to use
5 steps you can take to make an informed decision
The right vendor or provider can make or break your education program. To make an informed decision, organizations can follow a step-by-step approach:
Needs Assessment: Begin by assessing your organization's unique needs, goals, and budget for education benefits. Understand the specific skills or knowledge gaps that need addressing and align your education strategy with those needs.
Vendor Selection: Compare and contrast potential administrators or vendors in a structured way. Consider factors such as experience, reputation, technology capabilities, and cost. Use our buyer's guide checklist to assess each option and know what to look for.
Pilot Programs: See if vendors offer pilot programs to test effectiveness. This allows the organization to observe the real-world impact of the education benefits program on employee development and overall organizational goals, and enable them to scale up as needed.
Employee Input: Seek feedback from employees during and after the pilot programs. This ensures that their needs are met, and preferences are considered in the final decision.
Contract Negotiation: Engage in thorough contract negotiations to secure favorable terms and conditions. Clearly define the scope of services, performance metrics, and costs. Ensure that the contract aligns with the organization's long-term goals and provides flexibility for potential adjustments.
By following this step-by-step approach, organizations can make informed decisions when selecting an education benefits administrator or vendor, leading to a program that effectively addresses organizational needs while meeting employee expectations.
Education benefits are a long-term investment in the growth and development of your workforce.
The right education benefits administrator or vendor can help an organization drive talent and business strategy by boosting retention, talent attraction, internal mobility, and brand.
To drive the best outcomes, organizations should define goals of the program and remove barriers to entry — including financial barriers that arise in the tuition reimbursement model. Companies should also consider factors such as program offerings, technology, skill and job alignment, coaching services, and more.
If executed strategically and with scale in mind, education benefits can help an organization become an employer of choice, increase workforce agility, and fill internal talent pipelines — all while driving ROI.