Tuition Reimbursement Can Be Worth Its Cost

You work hard on your business and have always striven to develop a family and team like environment. You have positions ranging from the entry level to the most senior of experience. You have been losing workers to larger companies and in your strategy you are debating between offering a little higher pay or tuition reimbursement.

We all know what your employees would want. They would scream "I want higher pay" if we let them. Yet that may not be the best route to go. As a matter of fact that may only have a limited affect on your overall organizational retention. It is possible that you could find it has no affect on your turnover rates.

The reason why pay only has a minimal effect is because pay is not a major motivator in life. Before you laugh at what I am saying keep reading on. Pay only motivates for a short time and then it gets integrated into one's life style and they want more pay. What keeps people at an organization is not pay only but the overall work environment and how their employer treats them.

This philosophy doesn't work if you are paying MBA workers Bachelor level wages but it does work if you have a competitive wage. If you are under paying your workers your best bet is to increase their pay. There is a good chance that if you are underpaying your workers you have a lot of other problems you need to solve as well.

A tuition reimbursement may be a far better choice. Your organization may want to encourage those workers who are driven, hard working, educated and internally motivated to stay with your organization. Those are typically the type of people who are willing to go to college at night.

Offering tuition reimbursement will encourage your workers to go out and improve themselves. As they get this education and experience they will be open to being promoted. It is a little like a grooming program. Promoting internally is almost always better then replacing with outside workers because employees will try and live their career at your company.