JULY 21, 2000
ASK CAREERS
H.J. Cummins
Studying Up on Tuition Reimbursement | While most big companies pay for further education, research the restrictions closely
| | |
|
 H.J. Cummins covers workplace, personal-finance, and work and family issues
|
|
Q: Do you have a list of companies that pay for tuition as part of their benefit packages or a link that might have that information?
---- J.H., Seattle
A: The simple answer is no. All the people we talked to who would know
of such a list say none exists. You can find out, though, about companies that offer this benefit. In fact, we hear that tuition reimbursement is such a popular recruiting tool that companies are likely to bring it up even before you do. If not, it is kosher these days to ask.
Apart from using continuing education as a hiring plum, companies are also
convinced that they need it to stay up to speed in the Information Age. Your odds are better at larger outfits. Four in five companies say they offer the benefit, according to a national member-company survey for 2000 by the Society for Human Resource Management. But those are businesses big enough to have some human-relations staff. Only one in three small companies offers reimbursement, says the U.S. Labor Dept.
When asking about the benefit, pay attention to the fine print because generalities can be misleading. One example: The SHRM survey shows that high-tech outfits are among the least likely to give tuition reimbursement, but they do as much on-site education for their employees -- workshops and seminars -- as big, Old Economy companies do.
RELEVANCE TEST. Another thing to note: A lot of companies that showcase the benefit are putting more and more limitations on it, according to Denise George, research consultant with Lincolnshire (Ill.)-based Hewitt Associates, which recently conducted a tuition-reimbursement study. Businesses are tired of all those just-for-fun art appreciation or 18th-century French history courses that employees want to take.
So besides some pretty longstanding restrictions -- a minimum grade of C to be reimbursed, for example -- more companies now will pay only for courses that are part of a formal, pre-agreed study plan. And they'll accept only plans that will directly help you do the job you now have, or one you could reasonably expect to move into.
Also, a lot of companies like recently introduced college options that get you closer to a undergraduate degree without actually enrolling in courses, such as testing out of accounting classes or earning credits for "life-experience portfolios." That's good if your goal is a degree but not if you want to learn something new.
DO YOUR MATH. Another thing to keep in mind: The tight job market that's driving generous benefits is also making study sabbaticals harder to obtain. So don't expect time off. Companies say they just can't get the job done with any fewer people, and they have been burned by employees using their sabbaticals to job-hunt. So human-resources professionals advise asking for flextime instead.
If you're really interested in a company, and you are reluctant to press for specifics early on in the interview process, talk to other businesses in your field. Their benefit packages are likely to be similar, says Kristin Accipiter, a SHRM spokeswoman. And don't forget some auxiliary money calculations. Most companies cap their annual education benefit somewhere between $1,000 and $5,000. You may be better off taking a job with a lower-paying company if it offers a more generous tuition plan than the employer with a higher salary but stingy education benefits.
Remember that the first $5,250 in tuition reimbursement is tax-free for undergraduate college courses (but not graduate school). Also, a couple of possible sticking points: Some companies make you repeat a course at your own expense if you fail. Others make you pay back all your tuition if you leave the company too soon -- within three years, for example. And one plus: Some companies give stock as a graduation gift.
Have a question about your career or workplace issues? Send us an e-mail at askcareers@businessweek.com, or write to Ask Careers, BW Online, 46th Floor, 1221 Avenue of the Americas, New York, NY 10020. Please include your real name and phone number in case we need more information; only your initials and city will be printed. Because of the volume of mail, we won't be able to respond to all questions personally. Questions may edited for length and clarity.
H.J. Cummins has covered workplace, personal-finance, and work and family issues for more than a decade at Newsday/New
York Newsday and the Minneapolis Star Tribune
|
Copyright 2000, by The McGraw-Hill Companies Inc. All rights reserved.
Printer-Friendly Version