Why Companies Should Invest in Employees´ Higher Education

Many workers across the United States don´t have a high school diploma and another group has earned some kind of college credit but didn´t actually graduate. And of course, many of these are not in the financial position to be able to quit their job and go back to studying. However, nowadays, more and more companies start investing again in higher education for their employees. This basically means that they help their employees pay for tuition for high school or college diplomas so they have better chances of getting promoted and being considered for more senior roles.

Whereas some companies used to invest mainly in the training and education needs of their top talent and senior levels, it becomes more and more common to provide some sort of educational benefit at all levels. Employers realize it isn´t just about making sure their employees have a diploma, but there are direct benefits for them as well that might even outweigh the cost of the investment. Curious to see how? Here is why companies should invest in employees´ higher education:

It´s a good investment

Although it might sound contradictory, companies can actually make money by providing education aid. Studies show that employees who participated in tuition programs by their employers were more likely to get promoted, retained or transferred within the company thereby significantly reducing talent management, training and recruitment costs. In fact, it is said that this benefit pays for itself by reducing turnover. So, the return on investment for this benefit is actually very good!

Recruitment benefit

Investing in higher education provides a huge recruitment benefit as opposed to employers who don´t provide this aid. It´s obvious, if a candidate has a choice between a company that will help them pay to get a diploma or a company that doesn´t, who would you choose? Therefore, by investing in higher education, you will be able to attract better talent in the recruitment process which especially in times of low unemployment is a big plus.

Better skilled workforce

By providing your employees with the opportunity to study, you are generating a better-skilled workforce and better talent pool for job openings. A better-skilled workforce means you have better internal candidates thereby fostering a culture of internal promotion and growth. This will also be a motivation for employees to keep developing themselves professionally and personally, seeing there are growth and promotion opportunities within the company that are actually within reach for them as well is a great motivator to not only do a good job but also to get upskilled

Education shouldn´t end after you graduate

Above we mentioned those employees in the workforce that didn´t finish their education before starting to work. However, investing in your employees that did graduate is also of significant importance. Education shouldn´t end after graduation! By providing education help, also those employees that do have a diploma but want to get skilled in other areas or enhance their knowledge will be more engaged. Besides, by doing so, you provide a mindset of lifelong learning which has a positive ripple effect on company culture.

Improve employability of your employees

This might not sound like a direct benefit in the short term to you as an employer but by investing in higher education you´re improving your employees´ employability which is a huge benefit for the employee.


Therefore, although providing higher education aid might sound like a significant investment, think twice because the benefits you will reap from this investment will be definitely worth it.


Why do you think companies should invest in employees´ higher education? We would love to read your thoughts in the comments section!

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