New research reveals the impact of employer-sponsored education programs. Delivering value for individuals and organizations alike, workforce education drives significant outcomes, from 77% higher retention to 12x more promotions.
What are employees saying about their education benefits? A new survey of employees enrolled in workforce education programs reveals a clear message: workforce education is a worthwhile strategic investment in talent mobility and loyalty.
The research, spanning over 1,000 participants across leading organizations, shows that employees who receive fully sponsored education feel more committed to their employers and better equipped to excel in their roles.
As companies continue to grapple with the talent landscape, the following insights provide valuable guidance for shaping education benefit strategies that deliver measurable value for both employers and employees.
Education Benefits: A Powerful Retention Tool
In an era where employee retention has become a critical business challenge, the study demonstrates that education benefits serve as a powerful loyalty driver. A striking 77% of participants indicated they’re more likely to stay with employers offering educational opportunities, while 73% reported improved perception of their companies.
These findings underscore a strong business case for talent retention. Companies that retain top talent can reduce hiring and onboarding costs, while preserving valuable institutional knowledge. Although new talent brings fresh perspectives and skills, experienced employees who understand your business processes, culture, and history provide a foundation of productivity that complements strategic hiring initiatives.
Pro tip: Offer direct-bill tuition
Eliminating upfront costs removes a major barrier to participation and sends a positive signal about your commitment to employee development. Additionally, implement a “learn-and-stay” approach rather than traditional tuition reimbursement clawbacks. This means structuring initiatives so that employees who complete programs are encouraged to stay—through opportunities for career mobility or other positive reinforcement—rather than penalizing those who leave.
Degrees Drive Career Advancement
According to the research, degree graduates are 12 times more likely to earn promotions compared to those completing skills-based courses. They’re also 6.5 times more likely to earn income increases, with 35% of degree recipients reporting promotions within their first post-graduation year.
This data challenges the notion that traditional degrees are becoming less relevant in today’s workplace. While skills-based learning certainly has its place, the data clearly shows that degree programs deliver outcomes in terms of career mobility and earning potential.
Pro tip: Connect education to career advancement
Help employees see clear pathways between learning and advancement. Many may feel stuck in their current roles and need clarity on which skills will enable their next career move. Create transparent connections between educational programs and internal opportunities by mapping specific courses to in-demand roles within your organization. Align program offerings with both employee career goals and business talent needs and showcase success stories of employees who have advanced through education programs. It’s motivating for employees to see their peers succeed, so track and share these success stories to demonstrate the tangible impact of your programs.
Time: The Ultimate Barrier to Learning
Beyond driving retention and advancement, 69% of participants reported feeling better equipped to perform their current roles, suggesting these programs deliver immediate operational value alongside long-term career development.
However, the research also highlights persistent challenges facing working adult learners. Time management emerged as the primary obstacle, with half of respondents struggling to balance educational pursuits with existing commitments. Another 36% specifically cited program completion time as a significant hurdle, while 23% pointed to personal and family obligations as barriers.
Pro tip: Create flexible, supportive learning environments
These challenges highlight the need for organizations to think beyond simply offering education benefits. Success requires creating supportive environments that acknowledge the unique pressures facing working adult learners. Companies should consider flexible scheduling, dedicated study time, and comprehensive support systems to help employees overcome these barriers. Also, celebrate employee education milestones publicly. Recognizing academic achievements alongside work accomplishments reinforces the value your company places on learning.
The Power of Well-Designed Workforce Education Programs
The survey findings demonstrate a clear alignment between what employees want from employer-sponsored education programs and the tangible benefits they receive when an organization gets it right. When designed thoughtfully, workforce education opportunities are investments that pay dividends in retention and advancement, as well as in building a more capable, engaged, and loyal workforce ready to tackle tomorrow’s challenges.
Stephen Chu is the Chief Legal and Administrative Officer at InStride, the partner of choice for businesses creating sustainable advantage and social impact through strategic workforce education programs that enable continuous growth for their people. As Chief Legal and Administrative Officer, Stephen oversees legal, human resources, and IT.