- Employer Benefits
Why Would an Employer Help Cover the Cost of a Master's Degree?
Read more - FAQs
How it Works: FAQs on Employer Tuition Reimbursement & Assistance
Read more - Tuition Assistance Tips
Making Your Case: How to Talk to Your Employer About Tuition Assistance
Read more - Expert Advice
Expert Advice on Getting Your Employer to Help Pay for Your Master's Degree
Read more - Resources
Resources
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Why Would an Employer Help Cover the Cost of a Master’s Degree?
You’re eager to climb the career ladder and you feel confident that you can benefit your company in a more advanced role, but you’re lacking some of the hard skills needed to move up. Obtaining a master’s degree can equip you with those skills and be a big advantage to your employer. Your company may even be willing to help you cover the cost of your education.
It’s simple. Investing in a valued employee’s advanced education offers many benefits to businesses and employees alike. While your first thought may be related to the increased skills that you’ll use in your job, tuition assistance programs can provide other benefits you may not know about.
We’ll show you how to approach the topic of tuition assistance with your employer. You’ll also find valuable advice on making your case and hear from an expert who can help point you in the right direction on the road to an online master’s degree.
Benefit #1: Tax savings
One of the most direct benefits to employers who provide tuition assistance or reimbursement is their ability to deduct the money given when the company files its taxes. Employers providing reimbursement can offer up to $5,250 per year and write off 100% of that amount from FICA and FUCA payroll taxes. Investing in employees’ master’s degree educations can help save companies thousands of dollars each year.
Benefit #2: Employee recruitment
Suppose you’re reviewing several job offers and deciding which one to accept. They all offer similar salaries and benefits, but one includes a tuition assistance program.
If you are considering pursuing a master’s degree now or in the future, picking the employer offering tuition support only makes sense. In this way, companies that provide this benefit attract top-tier talent.
Benefit #3: Employee loyalty and retention
Employers who take good care of those who work for them are far more likely to have loyal employees. A study by EdAssist found that 80% of employees said tuition assistance programs made them more likely to stay with the same employer, and 85% said these programs had a direct impact on their job satisfaction. As this data shows, these programs are effective at retaining employees, and the programs cost less than some other types of added benefits.
Benefit #4: Company success
Companies that encourage and enable their employees to continue their educations at the master’s level reap the benefits of those pursuits. Every employee that undertakes graduate education brings their newly found knowledge and skills to the organization every day, making the company more successful in the process. A staff filled with master’s degree holders naturally has more knowledge than a staff with only associate or bachelor’s degrees.
Benefit #5: Targeted Learning
When employers offer tuition assistance, they have a say in how the funding is used. By establishing requirements about the types of degrees an employee can pursue—based on its needs—a company can ensure that the advanced knowledge employees gain directly correlates to the work they do.
How it Works: FAQs on Employer Tuition Reimbursement & Assistance
Understanding the ins and outs of employer tuition reimbursement and tuition assistance is key to making the most of this benefit. While individual employers may have slightly different rules and expectations, having a general understanding of the process can help as you prepare to make your case for tuition reimbursement.
Here are the answers to some common questions about the process.
Making Your Case: How to Talk to Your Employer About Tuition Assistance
Approaching your employer about providing tuition assistance can be nerve-racking. Still, there are steps you can take to ensure professionalism and demonstrate that you’ve thought through the whole process thoroughly. Here are some ideas for getting started:
Research the master’s programs you’re interested in
Before speaking to your supervisor about the potential of your company covering a portion of your tuition, you need to have a comprehensive plan in place and know the answers to the following questions:
- Which master’s degree do you want to pursue?
- How does it contribute to your goals and your company’s mission?
- Are there master’s degree programs available that allow you to keep working full-time while enrolled?
- If the degree requires an internship, can you still meet the requirements of your job?
Answering all these questions will help you create a proposal that shows you’ve thought all of the factors and contingencies related to going back to school. Also, when preparing for a meeting with your manager or HR department, create a short list of prospective schools and programs and highlight the benefits of each.
Approach your employer in writing first
To ensure you clearly communicate your interest in pursuing a master’s degree with employer tuition reimbursement, it’s best to first approach your supervisor in writing. Draft an email or letter that succinctly and logically lays out all of the details:
- The degree you want to pursue
- The schools you’re considering
- Reasons you believe that undertaking the degree will benefit the company
You can also include tuition estimates for several programs, a discussion of how being a student would (or would not) affect your work, and your career goals after finishing the degree. Putting all of this in writing ensures you have a record of your request and helps eliminate any confusion about what you’re proposing.
Set up a meeting and come prepared
After sending an email and giving your supervisor time to review your request, set up a face-to-face appointment and decide what you want to get out of the meeting. Be sure to clarify any unknowns and lay out all of the questions that require answers before you move forward. Some of the questions worth considering include:
- How much funding can I expect in terms of assistance or reimbursement?
- Does the organization currently partner with any colleges or universities that provide discounted or special tuition rates?
- How will funding be supplied? Is the reimbursement paid up front or after I complete the course or program?
- How long do I need to work for the company before qualifying for this benefit?
- What is the company policy on how long I have to stay with the organization after receiving my degree?
- What happens if I leave the company before I finish my degree or before I otherwise meet the terms of the benefit?
- What other requirements and rules do I need to know about? Are these policies available in writing?
Present your pitch and sell yourself
Even though employer tuition reimbursement presents a win-win situation for you and your company, you still need to be prepared to sell yourself in the meeting with your supervisor. Some of the benefits that you should cover in your pitch include:
- The ability of the employer to write off up to $5,250 per year in payroll taxes
- The new skills, knowledge, and perspectives you will bring to the company after completing a master’s degree
- The extended commitment to working for the company a set number of years after graduating
- Your ability to share your newly gained knowledge with your team, thereby updating everyone’s skills in your department
- The specific courses you will take and how they relate to your work
- A discussion of the time requirements of the degree and how you’ll fit your studies into your work schedule
Expert Advice on Getting Your Employer to Help Pay for Your Master’s Degree
Nicole Anderson is the owner and CEO of MEND HR Solutions, a human resources solutions and recruiting firm based in West Palm Beach, Florida. She has extensive knowledge of employment law across the United States and Canada.
Nicole earned a Bachelor of Business Administration in human resources management from American InterContinental University in Weston, Florida. She is currently authoring her first book on the future of human resources, discussing why HR must adopt a more business-minded approach, the necessity for HR managers to collaborate with leaders to develop strategies that impact the bottom line, and how effective HR can add value to companies beyond merely creating and enforcing policies.
Nicole founded MEND in 2017 after holding leadership roles in legal, retail, and manufacturing industries. Her firm provides comprehensive HR services, including employee training, organizational development, recruiting, policy management, and employee engagement, except payroll.
She also leads MEND Recruiting, focusing on high-level specialty positions to place the right professionals in the right roles. Nicole is recognized for advocating for modern, inclusive workplace cultures and bridging generational differences in the workforce.
Q. If a company doesn’t specifically list tuition reimbursement/assistance in its benefits package, how can employees approach the conversation?
A: The first thing an employee should do is look at the company culture. What are the core values and mission of the organization? Does the company have growth in its core values, and do you see a succession planning system?
If so, employees can go to the employer and let them know that the employees would like to grow within the organization and need help in the form of tuition reimbursement or tuition assistance to do so. Show the employer the return on investment for tuition reimbursement.
If the company does not have growth or core values listed, do your research on how the overall success of the company could increase by changing the core values and investing in growth opportunities. In each case, the employee needs to be educated to answer questions about the benefits.
Q. What do you look for when reviewing and assessing requests for tuition assistance?
A: These are some of the vital questions I ask myself when I review a tuition assistance request:
- Does the request align with the overall goals of the organization?
- Does the education align with the business? Meaning, if the company is a real estate firm is the employee seeking reimbursement for real estate-related education?
- Has the employee performed well in their current role?
- How long has the employee been with the company?
- Has the employee exhibited characteristics that match the company’s core values? For example: team player, innovative, emotionally mature
Q. What should employees include in their pitches?
A: Materials should include facts and data backing why and how the investment will benefit the company, why and how the employee is committed to the employer long term, and what other leaders in the company have to say about the employee’s continued education plan.
Q. What’s the biggest mistake you see employees making when considering this route?
A: Using the tuition reimbursement for something unrelated to their career or the company—this can ruin the program for everyone. Also, when employees are not prepared to speak on how the company and other employees benefit from the course of study that the employee is proposing, it suggests that the employee hasn’t thought through the decision.
Too often employees tend to focus on the benefits to themselves only. Lastly, once a tuition assistance program is approved, if no one uses it the company will drop the program.
Q. What advice would you give to those who want to take advantage of tuition assistance/reimbursement?
A: These are my main recommendations:
- Plan out the courses, program, or seminars you want to take for each year.
- Be sure to find a master’s degree that elevates your career.
- Share your success with tuition reimbursement with other employees so they can take advantage of it as well.
- If you are a leader who has taken advantage of a program, encourage your employees to do the same.
Resources
- Adult Student College Prep Checklist
Going back for your master’s after being out of school for a while can feel like unfamiliar territory. Federal Student Aid offers this handy checklist to ensure you don’t forget anything. - Designing and Managing Educational Assistance Programs
The Society for Human Resources Management takes a look at what makes for a top-tier educational assistance program. - Employer Reimbursement Payment Agreement
Some colleges may require you and your company to sign an agreement for covering tuition and fees. The University of Denver provides this sample agreement. - Employer-Provided Tuition Assistance
The University of Maryland’s Global Campus provides helpful details on how to navigate between your employer and your school when taking advantage of tuition assistance. - How to Ask Your Employer to Fund Your Education
If you feel nervous about asking your employer to help with your master’s degree funding, Investopedia provides tips to make the task less intimidating. - How to Convince Your Boss to Invest in Your Education
Udacity gives you concrete steps for making the your tuition reimbursement request and getting help with your master’s degree. - How to Use–and Ask For–Employer Tuition Reimbursement
Harvard University’s Division of Continuing Education offers these helpful tips for getting your master’s degree covered. - Tax Benefits for Education: Information Center
The Internal Revenue Service (IRS) provides this resource hub to help you and your employer learn how tuition reimbursement and assistance works in terms of taxes. - Tuition Reimbursement Programs: Why and How to Take Advantage of Your Employee Benefit
Northeastern University offers practical and actionable advice on how to make the most of this employee benefit.
