A New Tuition Reimbursement Model for Companies in the United States

What will the new tuition reimbursement model look like for companies in the United States in 2020?

In a previous blog, I suggested that the current tuition reimbursement model for adult learners in colleges and universities was ineffective and inefficient.  I also offered an outline of a model that companies and communities might adopt.  Posted below is a more detailed description of those ideas that will constitute the new model.

  1. Companies will identify formal learning certificates, degree-building, and degree programs from local colleges and universities that will be demonstrably in line with the company’s learning needs.  This is a focus that will be developed for groups of students from companies; not individual students.  The intent will be to use the forum for formal learning to move employees through the learning experience together.  The value of the approach will be to create both consistent learning and improved work-place relationships among participants.
  2. Classrooms move from the university to the company location.  In order to gain acceptance, companies will bring college learning to their location(s).  It will be one of the main ingredients in negotiating lower, flat-rate, per-course tuition rates.  It will also be a valuable marketing tool to get your employees involved in formal learning initiatives.
  3. Companies will re-allocate a percentage of tuition dollars toward budgeted, learning objectives focused on company needs.  Tuition reimbursement as a  tool to keep good employees is probably past its prime for that purpose.  Organizations will move to re-allocate a substantial percentage of their budgeted tuition dollars to learning that the company needs to grow.  In some cases, companies will replace tuition reimbursement dollars with budgeted dollars.  For example, budgeting $100,000 for 12 mobile application programmers or 18 graduate-level, trained project managers.  This budget approach will be particularly valuable for new technology and technology application skills that can quickly impact a company.
  4. Companies will negotiate with local colleges and universities for volume-based, flat-rate tuition pricing per course (not per employee) for employee learning cohorts.  Gone will be the days when companies paid tuition list price or ‘list-less’ discounted tuition pricing.  These organizations will negotiate tuition costs based on degrees and/or learning outcomes.
  5. Companies will negotiate for increased control of instructor quality and consistency in the formal learning process.  Today’s adjunct-heavy business model has increased the risk of students getting average or  sub-standard instructors.   Companies will increase the quality control on faculty by insisting on top-tier professors from local colleges and universities for their tuition dollars — and their employees.
  6. Employees in these cohorts will learn with their workplace colleagues — creating new skills for a company while creating and growing a learning culture.  The traditional model of individual students learning with tuition dollars from their employers will start to go away in many cases.  Companies will start to leverage groups or cohorts of students to drive content, quality, and cost.
  7. Companies will internally market the learning programs that provide the biggest return on invested tuition dollars.  Instead of offering a generic benefit like tuition reimbursement, companies will create incentives for employees to learn the skills and content needed for the company to grow.
  8. Local colleges and universities will create incremental revenue sources with limited direct costs.  The previously listed components of  a new tuition reimbursement model will be possible because local colleges and universities will see revenue opportunities that are not currently available to them.  The proposed model will offer college-credit courses at locations other than the valuable classrooms in a college.  The local colleges and universities will be able to limit their direct and incremental costs by designing agreements that allocate marketing and support costs to companies and community organizations.

I am interested in your evaluation of these 8 components of a new tuition reimbursement model for your company.

Comment below.


About Gary Stocker
Since 2004, I have developed more than a dozen academic partnership programs with 7 different universities. I have developed the web site: www.collegecohorts.com to share the tips, systems, and processes that were used. Theses partnerships include certificate, degree-building, degree programs for a major midwestern health care system. Examples of the academic partnerships include, MBA, MHA, RN to BSN, MSN, Allied Health, and Nurse Case Manager.

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