To Reimburse Or Not To Reimburse | Some companies swear by it, some schools have sworn it off
A tuition reimbursement program can be a good way for employers to attract and retain employees, but when it seems like employers are busy firing employees, it also seems reasonable that those programs, or at least parts of them, might suffer the same fate.
But according to local colleges and companies, tuition reimbursement programs aren’t being cut, they’re just being managed more tightly in order for employers to make sure they’re getting something for their dollar.
“One of the changes I’ve noticed is that most employers are specifying grade submission before reimbursement,” said Joyce Cravedi, comptroller at Quinsigamond Community College in Worcester. That way, the employee is responsible for the bill and gets reimbursed upon the successful completion of the course.
There are other strategies, too. Cravedi said UPS gets billed directly by the school, a system that is an attractive recruitment tool, she said.
However, that may leave UPS open to problems that some schools have noticed. And while some companies are making sure they get their money’s worth from their reimbursement programs, Nichols College, a business school in Dudley, made sure years ago that it would get paid for the classes it offers.
At Nichols any reimbursing will have to take place strictly between students and their employers. The school simply doesn’t accept tuition reimbursement.
“Companies won’t pay until after grades are submitted,” said Lisa Campbell, Nichols’ director of student accounts. “We’re not being paid for four months. If a student leaves, we don’t get paid. If a student doesn’t meet grade requirements, we don’t get paid. If a student drops a course, we don’t get paid. We were spending a lot of time in collections going after the students.”
The 12 New England colleges, including Quinsigamond Community College in Worcester, that are part of Verizon’s Next Step program don’t seem to have that problem.
Verizon offers “tuition assistance” of up to $8,000 through the program and about 10 percent of its workforce of 235,000 participates in the program. Verizon spokesman Phil Santoro said the company strongly believes in the program despite the economy.
Most Verizon employees that take advantage of the program are technicians “seeking specific knowledge,” in fiber optics, computer networking or IT development, Santoro said. But some members of management also use the program, and the majority of them use it to pursue an MBA.
And the company banks on employee loyalty. Next Step is a four-year program that sends employees to classes one day per week on company time. Every year, between 1,200 and 1,500 employees apply for the program and are required to take an exam similar to the SAT in order to get in.
The Hanover Insurance Group, which is based in Worcester, has also stood pat on its tuition reimbursement program as the economy has worsened. The company said the program is a good way to show a commitment to employees and a good way to keep employees committed to the company.
The Hanover reimburses as much as the IRS will allow. For most employees, that’s 100 percent of all approved academic coursework. The company also makes the benefit available to full- and part-time employees, and it can be used for courses in pursuit of both undergraduate and graduate degrees.
Like Verizon, The Hanover also reimburses for training programs specific to their line of work.
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