Educational cost Repayment: From Representative Advantage to Key Resource

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More than 20 years experience characterizing and overseeing educational cost help programs ... CAEL served more than 60,000 representatives looking for educational cost help from their bosses ...

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Educational cost Reimbursement: From Employee Benefit to Strategic Asset Marcia Dresner, Senior Research Analyst Corporate University Xchange John Zappa, Senior Vice-President, CAEL

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Agenda About Corporate University Xchange About CAEL Why Offer Tuition Reimbursement The Corporate University Xchange Tuition Reimbursement Study Plan Design & Practices Changes

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Corporate University Xchange Corporate University Xchange (CorpU) is the main supplier of corporate college investigate, benchmarking, and admonitory administrations for helping associations change corporate learning. Established in 1997, the point of CorpU research and administrations is to expand corporate interests in preparing and advancement to convey enhanced business comes about. The Corporate University Xchange Awards for Excellence and Innovation in Corporate Learning are the most established, most prestigious of the honor programs. Our Benchmarking Studies go past the numbers to decide how organizations are creating individuals. Participation in CorpU incorporates: Unlimited expert request Webinars introduced by professionals Access to a broad Research Collaboratory Networking with different individuals Benchmarking examinations

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About CAEL Council for Adult and Experiential Learning A 501(c)3 non-benefit association with worldwide reach and more than 30 years of workforce experience Mission to make and oversee learning systems for working grown-ups

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Tuition Assistance and CAEL Over 20 years encounter characterizing and overseeing educational cost help programs Broad base of set up customers CAEL served more than 60,000 representatives looking for educational cost help from their bosses Over 700,000 grown-ups are qualified for educational cost help programs oversaw by CAEL Processed $170 million in instruction reserves

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CAEL Services

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Why Offer Tuition Assistance Source: CAEL 2004 Tuition Survey

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Supply of Human Capital Labor Force 25 – 44 years Source: U.S. Evaluation Data, Creating Value with Human Capital Investment, Dr. Michael Echols, Bellevue University

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Poll Question #1 A registration representative advantage Part of the worker esteem suggestion for enlisting and maintenance A program that can bolster learning and improvement objectives A vital segment to bolster ability administration activities My organization considers educational cost help:

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The Tuition Reimbursement Study Released in August 2007 180 Organizations studied, running in size from 100 workers to more than 100,000. Source: Corporate University Xchange Tuition Reimbursement Study 2007

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Industries Represented Source: Corporate University Xchange Tuition Reimbursement Study 2007

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Plan Design - Ownership Tuition Reimbursement is basically the obligation of Human Resources Departments. In substantial organizations (>50,000) and in the assembling enterprises, L&D plays a much bigger part. Source: Corporate University Xchange Tuition Reimbursement Study 2007

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Plan Design – What Source: Corporate University Xchange Tuition Reimbursement Study 2007

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Plan Design - Where Source: CAEL

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Plan Design – Where Accreditation is critical, with more than 70 percent of organizations requiring that a school or college be certify before they will pay. A few organizations, as Intel, go more distant and determine which certifying bodies are adequate. On-line schools and colleges are constantly adequate at more than half of organizations, and now and again satisfactory at another 47 percent.

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Plan Design - Accreditation is a quality confirmation handle, not a permit to work Three sorts Regional Accreditation (assesses whole Institution) National Accreditation (single reason – i.e. remove instruction) Professional Accreditation (particular program, for example, designing or business college) Most managers acknowledge Regional Accreditation as the best quality level for college degrees. For more data look at Council for Higher Education Accreditation ( )

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Qualcomm – Choosing Schools Qualcomm's educational cost help program bolsters both business prerequisites and a worker profession improvement theory. Around 180 affirmed classroom-based schools are endorsed for repayment, roughly 40% of which are outside of the US. Six separation just projects endorsed. Schools are added to the rundown upon demand and when Qualcomm builds up new areas. Key criteria utilized for favoring schools include: Is the school a not-revenue driven organization? Is it certify? What is its continuous notoriety for quality instruction/look into? Is it almost a Qualcomm office? Are personnel proficient teachers/analysts? Is 50 percent or a greater amount of workforce utilized full-time? Are Qualcomm-business pertinent subjects and degree programs advertised? Is unique research directed by either the school or staff?

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Plan Design – Dollars Companies are liberal in the points of confinement put on educational cost repayment. 77 percent of organizations have similar cutoff points paying little heed to occupation part (demonstrated as follows). Those that don't have similar cutoff points for everybody for the most part have higher breaking points than those that do. Source: Corporate University Xchange Tuition Reimbursement Study 2007

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Plan Design – Payment Terms and Timing Over 70 percent of organizations pay taking after course fulfillment with a review of C or better. Just 25 percent pay upon enrollment and director endorsement. Source: Corporate University Xchange Tuition Reimbursement Study 2007

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Plan Design – Payment Terms and Timing Two Relevant Models Traditional Reimbursement Prepayment/Voucher Option Why offer Prepayment Option? Appealing Incentive for bleeding edge staff; Eliminates out of pocket cost Strategy for drawing in new representatives Increase program use 5% 12%

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Plan Design – Service Agreements Source: Corporate University Xchange Tuition Reimbursement Study 2007

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The general normal support reported was 5.2 percent, with the biggest number of organizations reporting only 2.1-4 percent cooperation. At the point when L&D is responsible for the program, that number goes up to 6.2 percent. Around 28 percent of respondents felt that support was too low. Hones - Participation Rates Source: Corporate University Xchange Tuition Reimbursement Study 2007

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Poll Question #2 We don't energize use Managers are urged to talk about educational cost help as a major aspect of the profession advancement prepare The estimation of the program is elevated to representatives (e.g. intranet, data gave amid introduction, organization pamphlets, and so forth.) Employees are perceived and remunerated for utilizing the program (e.g. grants, examples of overcoming adversity are advanced, stock motivating forces, and so forth.) What is the essential strategy you use to expand program investment?

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The general midpoints for real spend every year are $1600 for non-degree courses, $3400 for Bachelor's level courses, and $4500 for both Master's and Ph.D. level courses. Normal spend per taking an interest worker 70% 60% half 40% Non-degree courses Bachelor " s Level 30% Courses Master " s Level Courses 20% Ph.D. Level Courses 10% 0% $0-$1999 $7,000-$ 2,000-$3000-$3999 $4,000-$4999 $ 5,000-$ 9,000 or $8,999 $2,999 $6,999 more Practices - Spending Source: Corporate University Xchange Tuition Reimbursement Study 2007

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Real Market Price of Tuition Source: The Market Price of Tuition , CAEL and Bellevue University's Human Capital Lab, November 2007

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Sample Case Study Bachelor's Degree in Business Approximately 120 - 128 credits $323 per credit hour Employee is taking 20 credits for every year Completes in 6 years Year 1 = $6460 in addition to charges and books Six year cost = $45,060

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Most organizations legitimize the dollars spent for educational cost repayment as a component of a worker esteem suggestion that draws in and holds representatives. The latest Eduventures concentrate on inferred that 45 percent of organizations do some estimation around their projects. At the point when the CorpU consider posed a question about measuring the effect of the projects, a very surprising picture developed. Rehearses - Measurement

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Practices - Measurement Source: Corporate University Xchange Tuition Reimbursement Study 2007

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Case Study: Verizon Wireless Nation's most solid remote system Over 64 million remote clients 70,000 workers in 49 states Ranked #4 in Training Magazine's Top 125 organizations for 2007

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LearningLINK Tuition Program Encourage and help representatives in accomplishing their instructive and profession advancement objectives Build basic hierarchical abilities and information Attract and hold the absolute best workers

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Measure Outcomes Recruitment Retention Career Mobility Job Performance

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Recruitment 36% of LearningLINK members overviewed felt the educational cost help program was a clear figure their choice to acknowledge work at Verizon Wireless 19% of LearningLINK members studied felt the educational cost help program was likely a consider their business choice 42% of LearningLINK members have been with the organization 2 years or less 19% have been with the organization under 1 year

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Retention Add another diagram to show end rates 96% of LearningLINK members reviewed said they expected to remain with Verizon Wireless for no less than two years after finishing of their degrees

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Career Mobility Job exchanges incorporate advancements, sidelong and formative moves

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Job Performance 4,510 supervisors of LL members overviewed 52% of respondents saw an adjustment in occupation execution and practices while workers were occupied with LearningLINK program 71% reported enhanced execution at work 73% reported enhanced practices at work

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Changes Noted .:tslidese