By Stephen D. Bruce, PHR
Editor, HR Daily Advisor
Eighty-five percent of employers report offering tuition assistance to employees, according to a recent survey of tuition assistance plans by BLR®‘s HR Daily Advisor. This is a significant increase over the 52% of employers who reported having such a plan in late 2007.
A quick review of the detailed responses below will let you know how your organization’s benefits compare with those of the approximately 1100 employers who responded to the survey, which was conducted by BLR’s HR Daily Advisor in August-September 2010. It is one of a series of targeted benefits series BLR conducts each year.
This increase in companies providing tuition assistance was accompanied by a narrowing of the most common reimbursement pre-requisites, however. Ninety-six percent of organizations offering tuition assistance in the current survey require verification of the grade earned, compared with 50% having that requirement in 2007. Similarly, 76% of companies require the course to be job related, as compared to 47% with that requirement in late 2007.
The survey, which garnered nearly 1,100 responses, was conducted by BLR’s HR Daily Advisor in August-September 2010. See end of survey report for demographic breakdowns.
Here are the detailed results:
Organization offers a Tuition Assistance Plan:
|
|
Number |
Percent |
|
Yes |
920 |
85% |
|
No |
164 |
15% |
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Both Exempt and Nonexempt personnel are eligible for Tuition Assistance:
|
|
Number |
Percent |
|
Yes, both Exempt and Nonexempt personnel are eligible |
889 |
98% |
|
Only Exempt personnel are eligible |
16 |
2% |
|
Only Nonexempt personnel are eligible |
3 |
0% |
Length of service required for Tuition Assistance eligibility:
|
|
Number |
Percent |
|
No length of service minimum |
213 |
23% |
|
0-3 months |
80 |
9% |
|
4-6 months |
210 |
23% |
|
7-11 months |
53 |
6% |
|
One year or more |
352 |
39% |
Part-time personnel are eligible for Tuition Assistance:
|
|
Number |
Percent |
|
Yes |
334 |
37% |
|
No |
571 |
63% |
Courses taken must be job related:
|
|
Number |
Percent |
|
Yes |
693 |
76% |
|
No |
215 |
24% |
Graduate level courses are covered:
|
|
Number |
Percent |
|
Yes |
860 |
95% |
|
No |
47 |
5% |
Professional certification courses are covered:
|
|
Number |
Percent |
|
Yes |
508 |
56% |
|
No |
396 |
44% |
Seminars from informal sources such as Dale Carnegie covered:
|
|
Number |
Percent |
|
Yes |
268 |
30% |
|
No |
636 |
70% |
Reimbursement includes amounts for books and/or supplies:
|
|
Number |
Percent |
|
Yes |
511 |
57% |
|
No |
384 |
43% |
Tuition reimbursement is grade-dependent:
|
|
Number |
Percent |
|
Yes |
814 |
91% |
|
No |
85 |
9% |
Verification required of grade earned:
|
|
Number |
Percent |
|
Yes |
862 |
96% |
|
No |
37 |
4% |
Percentage of tuition reimbursed:
|
|
Number |
Percent |
|
Less than 50% |
65 |
8% |
|
At least 50% but less than 75% |
80 |
9% |
|
At least 75% but less than 85% |
78 |
9% |
|
At least 85% but less than 100% |
29 |
3% |
|
100% |
376 |
44% |
|
Percentage depends on grade earned |
221 |
26% |
Maximum tuition reimbursement offered per year:
|
|
Number |
Percent |
|
Less than $1,000 |
53 |
6% |
|
At least $1,000 but less than $2,000 |
167 |
19% |
|
At least $2,000 but less than $3,000 |
126 |
14% |
|
At least $3,000 but not unlimited |
260 |
30% |
|
Reimbursement capped only by IRS deductibility |
210 |
24% |
|
Dollar limits depend on grade(s) earned |
53 |
6% |
Repayment of tuition benefits required if employee leaves company:
|
|
Number |
Percent |
|
No, repayment is never required |
339 |
38% |
|
Occasionally, on a case by case basis |
78 |
9% |
|
Yes, if employee leaves within 3 months of course completion |
15 |
2% |
|
Yes, if employee leaves within 4-6 months of course completion |
42 |
5% |
|
Yes, if employee leaves within 7-12 months of course completion |
288 |
32% |
|
Yes, if employee leaves over a year after course completion |
132 |
15% |
Tuition Assistance plan has changed in last two years:
|
|
Number |
Percent |
|
Yes, we have reduced benefits |
117 |
11% |
|
Yes, we have increased benefits |
117 |
11% |
|
No, the plan has not changed in the last two years |
810 |
78% |
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Anticipated change in Tuition Assistance plan in the next year:
|
|
Number |
Percent |
|
We plan to reduce benefits |
59 |
6% |
|
We plan to increase benefits |
107 |
10% |
|
No changes are anticipated |
868 |
84% |
Title of Survey Respondent:
|
|
Number |
Percent |
|
Human Resources Director or Manager |
696 |
67% |
|
Human Resources Staff |
236 |
23% |
|
Consultant, Human Resources |
14 |
1% |
|
Other |
89 |
9% |
Industry:
|
|
Number |
Percent |
|
Manufacturing and Construction |
210 |
20% |
|
Transportation, Communications, and Utilities |
62 |
6% |
|
Services and Trade |
240 |
23% |
|
Government and Public Administration |
86 |
8% |
|
Other |
437 |
42% |
Approximate number of Employees:
|
|
Number |
Percent |
|
1-99 |
243 |
23% |
|
100-499 |
367 |
35% |
|
500-999 |
134 |
13% |
|
1000 or more |
291 |
28% |
Location:
|
|
Number |
Percent |
|
Northeast US |
307 |
30% |
|
Southern US |
222 |
21% |
|
Midwestern US |
329 |
32% |
|
Mountain States |
33 |
3% |
|
Western US |
144 |
14% |
What should our next benefits survey topic be? Let me know at sbruce@blr.com.