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While employers generally recognize the value of education, financial wellness benefits do not always reflect this priority.

While tuition benefits have been a long-standing employer offering, not all tuition assistance programs are created equal. Most companies have adopted tuition reimbursement models, requiring employees to shoulder upfront costs. Reimbursement often depends on employee academic performance and ability to complete the administrative paperwork in compliance with the company policy. These barriers are largely responsible for the low utilization of such programs.

Eighty-six percent of employers believe paying a college or university directly for tuition (rather than reimbursing an employee for costs later) helps increase employee satisfaction and retention, according to a 2024 ¹û¶³ÊÓƵ survey. The reasons provided included:

• Reducing the financial burden on employees.
• Increasing employee usage of tuition benefits.
• Simplifying the billing processes.

Yet only 18% of the organizations offer this benefit to their employees for all schools.

According to the 2024 SHRM Employee Benefits Survey, 65% of employers rated professional development as "very important" or "extremely important." Yet, the SHRM survey found that only 46% of employers offer their employees tuition benefits — its lowest prevalence in years. And 85% of adults not enrolled in an educational program cite costs as a persistent obstacle, pointing to a glaring disconnect. Also concerning is the employee awareness of these programs. Few employees (40%) know tuition assistance is available through their employer, and only a fraction (2%) take advantage of it. This poor utilization rate highlights the need for better communication and more accessible tuition programs to ensure employees fully leverage the financial and wellness benefits of workplace education initiatives.

Direct billing for tuition assistance offers a more streamlined and employee-friendly approach to education benefits. Before setting up a plan, define educational requirements and employee eligibility. Reflect on why the company offers the benefit and what goals are hoped to be achieved.ÌýThere are three considerations to getting started.

Just as educational programs must keep pace with the market for in-demand skills, tuition-related benefits must also evolve. With the increased demand for and training to address technology and  skill gaps, employers must understand and respond to their employee's educational needs. Also, determining what educational roadblocks employees face is vital to ensuring these programs are accessible. Providing accommodations like direct billing, flexible and remote learning environments, and support for non-English speaking learners will help ensure all employees can take advantage of the programs.

Ensuring that employees know the benefits and how to use them is critical to the success of every tuition assistance program. Sending out reminders at least quarterly can help maintain awareness.Ìý 

Partnering with the right educational institutions can significantly enhance the effectiveness and accessibility of tuition assistance programs, especially when combined with a direct billing policy. This collaboration can mitigate the employer's cost risks associated with paying for employee coursework upfront through discounted tuition agreements, effectively providing a bulk deal for employers. Group invoicing can also be a major time-saver for companies. Instead of reviewing individual reimbursement claims and making deposits into employee bank accounts, tuition payments are consolidated into a single invoice by the educational provider, drastically reducing administrative processing time.

Implementing a direct billing system starts with four steps

1. Establish a centralized and dedicated team. Assign a designated point of contact to manage and implement the program.Ìý

2. Survey employee needs and preferences. Align the tuition assistance program with employee interests and the company's skill needs.

3. Define educational requirements and employee eligibility. Reflect on why the company offers the benefit and what goals are hoped to be achieved.Ìý

4. Partner with qualified educational providers. Choose providers with experience in tailoring offerings to company or industry needs.Ìý

By investing in their employees through direct billing tuition assistance, employers can significantly reduce employee financial stress and promote workplace wellness while prioritizing the company’s long-term stability and competitiveness.Ìý A holistic view of the connections between education, financial health, and wellness enables employees to remain focused and productive, even when unexpected financial challenges arise. Of course, a tuition assistance program won’t eliminate financial anxiety entirely. Still, employees with financial support and education might be less likely to lose sleep worrying about the orthodontic bills and more likely to help your organization thrive.

Employers’ hesitation to cover educational benefits upfront with tuition assistance can often stem from concerns about financial liability, such as paying for classes that students do not attend. However, this risk can be mitigated by collaborating with educational providers fluent in workforce learning programs.

¹û¶³ÊÓƵ works with employers to defer employee tuition payment until after the course is completed. Employers are not responsible for payment if the employee has not passed the course.Ìý Instead, ¹û¶³ÊÓƵ will charge the student credit card on file.

Direct billing arrangements can also offer organizations discounted tuition rates and bulk invoicing, which can reduce the financial and administrative load for employers while increasing employee usage of tuition benefits.

Explore how we can help your organization simplify tuition assistance.Ìý