Want to build a stronger, more loyal team without breaking the bank?
When employees return to school, the benefits aren’t theirs alone. Employers who support their teams by sponsoring further education can expect to:
- Lower staff turnover
- Stronger skills in-house
- Better recruitment results
Here’s the thing:
Many business owners fail to recognize the significant advantages of having an employee pursue a part-time master’s degree. It’s much more than an upgrade to your signature block.
In this article you’ll see precisely why supporting your team’s continuing education is one of the best investments you can make.
Let’s jump in!
What’s inside this article:
- Why More Workers Are Pursuing A Part-Time Master’s Degree
- Top Benefits Employers Get From Staff Advanced Studies
- How To Support Your Team Through Their Studies
- Common Concerns (And Why They’re Overblown)
Why More Workers Are Pursuing A Part-Time Master’s Degree
The numbers tell a pretty interesting story.
Currently there are approximately 25 million American adults that have earned a master’s degree. From 2000 to 2019 the amount of people that decided to pursue a masters doubled.
What’s driving the increase? Obtaining a part-time master’s degree allows workers to enhance their skill set without leaving their job. Students have the opportunity to take classes at night and on the weekends while remaining efficient at their 9-to-5.
Programs like these graduate degrees are designed for working adults who want to:
- Move up the ladder
- Switch into a new field
- Earn more money
- Learn specialised skills
One reason why enrollment in the part-time master’s format is soaring is that workers are able to maintain their full-time job while pursuing their degree. There is no employment gap, loss of wages or major life disruption.
For employers, this is huge.
They receive a better-trained, more dedicated employee and you don’t lose them to a full-time program elsewhere.
Top Benefits Employers Get From Staff Advanced Studies
Ok, now for the good stuff. Here are the precise benefits employers can expect when employees undertake a part-time master’s degree.
Way Better Staff Retention
This is the biggest one.
Employees resign daily. It costs time and money to replace them. Not to mention it stresses you out. However, when you support further education for your employees, they stay longer.
Tuition reimbursement benefits make employees feel more loyal to their companies. 76% of employees reported that they would be more likely to stay at their current employer because of tuition reimbursement.
Think about that for a second…
Three-quarters of your employees want to stay for reasons other than you paying for their part-time masters degree. That’s huge retention.
Chipotle learned this lesson when they implemented their tuition benefits. Employee retention for those who participated was 89% after 5 months. Nearly double the non-participants rate.
A Smarter, More Skilled Team
When you employ someone on a part-time masters they bring everything they learn back to your organization.
That means you get access to:
- The latest research in their field
- New problem-solving methods
- Specialised technical skills
- Fresh ideas from professors and classmates
And the best part? You didn’t have to pay to train them yourself.
With every assignment completed, paper written and class attended they’re gaining knowledge that you can use to your business advantage. It’s like getting a team member who has attended your in-house training program… except you didn’t have to run one.
Stronger Recruitment Power
Top talent has options.
Two companies offer similar salaries and benefits. One offers assistance with advanced study. The other does not….. Guess where the better employees go?
84% of respondents reported that tuition assistance was important to their decision to work at their company. That’s a huge proportion of high achievers that value education benefits.
When you offer it, you instantly become more attractive than competitors who don’t.
Real Tax Savings
This one surprises a lot of business owners.
Section 127 of the IRS allows employers to reimburse up to $5,250 per employee per year for educational expenses… and that reimbursement is tax-deductible. It is also exempt from payroll taxes such as FICA and FUTA.
That means investing in your employee’s part-time masters degree isn’t just a boost for morale. It can boost the bottom line, too.
How To Support Your Team Through Their Studies
Want to help your team member earn their master’s degree, part-time? It’s easier than you might think. Here’s how:
Be flexible with hours. Allow them to move their schedule around for classes, study hours and exams. Just a little flexibility can mean the world.
Arrange tuition reimbursement. A little goes a long way. Get what you can and build up over time.
Acknowledge their effort. Balancing work and study takes effort. Praise them for jobs well done.
Relate it back to their job. Assist them in connecting their learning back to their job function. Not only will the information stick with them longer but it will benefit your company as well.
The aim is to enable them to thrive — in their jobs and their classes.
Common Concerns (And Why They’re Overblown)
Many employers hesitate about sponsoring further education for their employees. Number one on their worry list?
“What if they leave once they finish?”
You may be worried about employees leaving you once you’ve invested in them. However, studies show that supported employees are more likely to stick around. Cigna’s tuition reimbursement program generated a 129% ROI from retention alone.
You may want to include a “stay clause” in your agreement as well. This is where staff agree to stay with the company for a certain amount of time after they finish their part-time master’s degree. It’s only fair and it ensures you get your money’s worth.
The other big concern is expense. However when you factor in tax breaks, reduced turnover and improved hiring, the numbers generally add up for you.
Bringing It All Together
Investing in your team with a part-time master’s degree is one of the best things you can do as an employer. The results are tangible, quantifiable and have been proven.
To recap, you get:
- Better staff retention
- A smarter, more skilled team
- Stronger recruitment power
- Real tax savings
- A more loyal and engaged workforce
Fact: Delving deeper isn’t just good for your team. It’s good for your business.
If you’ve been waffling about providing support for a part-time masters degree, stop waiting. Do what you can. Even if it’s just flexible scheduling or partial tuition assistance – it can have life-altering effects. Your team grows. Your business grows. Everyone wins.
