06/26/2025
Your organization is only as productive as its staff: Their strengths and weaknesses collectively define the company’s limits. Brand perception, customer satisfaction, and quarterly earnings all reflect your employees’ performance – and the competencies of each individual team member.
Company stakeholders therefore have ample reason to prioritize employee education and professional development. As workers build new skills and further their industry-relevant knowledge, they learn how to execute tasks more efficiently and lay the groundwork to assume greater responsibilities. Moreover, education benefits yield incremental advantages for participating employers.
Data Suggests Tuition Benefits Improve Employee Retention
Employee turnover expenses can quickly prove detrimental, particularly for organizations that struggle to gain the loyalty of their workers. Replacing an employee can cost a company anywhere from 50-200% of the associate’s annual salary, according to analytics and advisory firm, Gallup®.
Worse yet, employee departures can quickly erode morale as remaining team members begin to question their own loyalty to their employer. “Turnover contagion,” a ripple effect wherein one employee’s exit can trigger others to follow suit, is a genuine threat that constantly looms over organizations.
Education benefits, however, may be the antidote. Recent findings indicate that 77% of employees enrolled in workforce education programs are more likely to stay with their employers, according to HR Daily Advisor, an online publication dedicated to the human resource management field.
Jobseekers Assign Significant Value to Tuition Benefits
The continued success of any growing company relies on its ability to attract top talent – and today’s jobseekers unequivocally gravitate toward organizations that demonstrate a commitment to learning and development (L&D).
In fact, 82% of workers would choose an employer that offers education benefits over one that does not, reports EdAssist®, a leader in workforce education and an American Public University (APU) partner. EdAssist’s research also shows that while the vast majority of the workforce is interested in upskilling and continuing education, 53% of employees forgo academic study to avoid incurring student loan debt.
Workers are acutely aware of the myriad opportunities education can unlock, yet financial constraints pose a barrier that prevents them from enrolling in academic programs.
In an effort to remedy this apparent dilemma, organizations have begun to provide tuition benefits en masse. Specifically, 48% of employers offer undergraduate or graduate tuition benefits, according to a 2022 survey released by the Society for Human Resource Management® (SHRM®). As these perks become increasingly common, job applicants will only continue to favor companies with education benefits.
Reskilling, Upskilling, and Succession Planning Help Foster Agile Operations
Continuing education cultivates a nimble workforce of problem-solvers, as team members sharpen their unique, individual skill sets. Employers, in turn, are better prepared to navigate unforeseen challenges and organizational restructures when they prioritize L&D. Additionally, upskilling in-house talent allows teams to backfill roles quickly and efficiently when key employees depart.
This strategy, through which employers train personnel to succeed their superiors, is known as “succession planning,” and it’s instrumental in facilitating smooth transitions. From the frontline to the C-suite, every level within an organization stands to gain from succession planning, as unexpected employee departures inevitably disrupt operations.
Even executives can resign or be dismissed at a moment’s notice: Corporate consulting firm Egon Zehnder® reports nearly 1 in 3 CEOs exit abruptly, “leaving ill-prepared boards without a contingency plan.” Once a company names its new corporate officer, the resulting restructure often induces a ripple effect that can impact the entire organization. As a result, teams often require additional training and education to align their skills with the new CEO’s objectives.
Employee education programs also help prime companies to overcome obstacles posed by external factors – like the COVID-19 pandemic or the rising costs of tariffs – that force teams to pivot their strategies overnight. Furthermore, ongoing L&D helps equip workers with the requisite knowledge and skills to adapt to fast-evolving industry standards and company goals.
Ultimately, education helps nurture critical-thinking skills, problem-solving abilities, and organizational agility, which 92% of executives agree is critical for business success, reports Forbes® Insights and the Project Management Institute® (PMI®), a professional training and coaching firm.
Providing Tuition Benefits Helps Establish a Strong Employer Brand
A consumer brand is an identity that represents the specific benefits a company’s products or services offer. In the same vein, an employer brand embodies the values, opportunities, and other advantages a company shares with its staff.
“A positive employer brand communicates that the organization is a good employer and a great place to work. Employer brand affects recruitment of new employees, retention and engagement of current employees, and the overall perception of the organization in the market,” explains SHRM.
Building and protecting an attractive employer brand should therefore be top-of-mind for decision-makers – and evidence shows that investing in upskilling can help reinforce employer branding strategies. Per HR Daily Advisor’s study, 73% of employees enrolled in workforce education programs report improved perception of their employers.
Education Benefits Are a Tax-Deductible Business Expense
Tuition benefits qualify as a deductible expenditure that can help lower a company’s overall tax burden. At the same time, the IRS allows companies to provide up to $5,250 per employee each year for qualifying education programs without increasing employees’ taxable annual income. Typically, any assistance in excess of $5,250 is considered taxable income.
Employers who choose to partner with American Public University (APU), however, may qualify for TuitionWise, APU’s tuition-assistance program that allows students to attend our University with no out-of-pocket tuition expenses.1
Bottom Line: Educated Employees Are an Asset at Any Company
From formal degrees to certificate programs that hone specific “hard” skills, higher education has long been regarded as the springboard to a fulfilling career. Today, top employers also recognize academic achievement as a business function: There’s a clear symbiotic relationship between employees’ education and the health of an organization. Investing in learning and development is thus an investment in your company’s future.
Learn more about TuitionWise and how your employees can upskill by enrolling in one of APU’s 200+ online degree and certificate programs.
1 This program is available to eligible participants only. No out-of-pocket tuition cost may be possible through the use of an employer’s tuition assistance benefit, combined with an APU partner grant. Some programs also may include in-person activities, such as practicums or labs, and other fees, which may result in additional costs to the eligible participant.
Gallup is a registered trademark of Gallup, Inc.
EdAssist is a registered trademark of Bright Horizons Family Solutions LLC.
Society for Human Resource Management and SHRM are registered trademarks of Society for Human Resource Management.
Egon Zehnder is a registered trademark of Egon Zehnder International AG.
Forbes is a registered trademark of Forbes LLC.
Project Management Institute and PMI are registered trademarks of Project Management Institute, Inc.