The ROI of education benefits
Do you know the ROI of your education benefits program?
A majority of companies have some program in place, but most can’t really tell you the exact dollar return they’ve seen from the investment.
While organizations have historically relied on tuition assistance programs to attract and retain employees, the use of education benefits has grown significantly in recent years. Now companies are discovering how education can be a foundational element of their talent strategy. Beyond attraction and retention, education benefits are used to power internal mobility, fill organizational skills gaps, and boost company brand.
An investment in education generates a positive ROI for the business at large. We took a look at the results from our partners, some of the largest employers in the country, who launched education benefits programs in 2018 or earlier.
Companies that partner with Guild have realized an average of $2.84 in savings for every $1 invested in education benefits; a net return of $1.84.
The return on investment of a Guild program is calculated across talent attraction, retention, development, employee engagement, and brand impact. Each employer’s program is designed to align with strategic priorities, meaning programs can be adapted to have a larger impact on the desired element, though employers consistently see gains across categories.
We also found that our model of direct, upfront payment for tuition generated a $0.91 higher return than tuition reimbursement programs.
For a closer look into each component, download the guide, The Dollar Value of Education Benefits: 5 Elements of ROI.