Introduction
As a motivational tool, companies’ today are embarking on tuition reimbursement programmes in bid to win employees’ loyalty and confidence. Although this is a noble task, it is costly and technically involving. As a result, the concept of providing tuition reimbursement and creating extra time for adult learning has not yet found popularity with most companies (Bender 2008, p. 193-207). The company used in this illustrative essay is arbitrarily selected from the service industry. The company in question specialises in the sale and distribution of electronic equipment. Due to this assumption, this strategy may not apply to certain companies in other industries which deal in highly specialized product segments. However, its general application does not fail in most companies, this limitation notwithstanding. This research paper intends to provide a systematic and practical strategy which if implemented by organisations would help such a company appreciate the importance of providing tuition. In addition, the paper wishes to stress on the importance creating additional time for the adult learner. The ultimate intention of this research paper is to demonstrate that the provision of tuition reimbursement and making of extra time for adult learning is a requisite to improved company’s performance.
Cost of tuition
Due to their present commitments at the work place, employees often find it extremely challenging to create time and attend classes within their daily busy schedules. It is equally challenging that they require adequate knowledge to cope with the needs of customers in the ever changing modes of operations at the market place (OECD, 2003, p. 27). When the company finds begins to recess because of inefficient works, it is due for the company to make extra time for adult learning for its employees. This is relatively cheaper compared to hiring of new qualified staff which might lead to a complete over haul of its employees (Bender, 2008, p.202). The current existing policies and education structures also restrict adult learning in most companies and institutions as puts a lot of unnecessary burdens on the learning employee. In order to make working flexible and learning enjoyable, the company may now need to invest in adult education because the knowledge obtain thereafter is spent in the same company. In the final analysis, it is the company that profits from a highly trained, motivated and professionals dedicated to their job. In a civilised world that is rapidly growing and developing investment in human capital through personal development might be the most viable option for a company to take. Organizations today put a lot of faith in certificates, credits and credentials. This latest development is epitomised by company awards and based on their annual turnover in monetary terms in this intensively competitive technology era. As a component of adult learning and tuition reimbursement, academic qualification is another justification for a company to invest in same activity (Bender, 2008, p. 198).
Applications of tuition reimbursement
Tuition reimbursement programs consist of three components namely, up to a maximum compensation amount, eligibility requirement and a reimbursement policy based on academic performance. The first component of this program is motivated by “tax-advantage status”. This status enumerates that reimbursement from company financed programs are exempted from taxation under Section 127 of the U.S. Internal Revenue Code (Bender, 2008, p. 200). The maximum income exclusion is $5,250 per annum. All reimbursements under this amount are exempt from federal income tax, pay roll tax and state income tax. In a 2002 survey by Eduventures of Human resource professionals and managers, of over 500 firms, it was noted that 70% of firms offering tuition reimbursement program restrict annual reimbursement. About 57% have a maximum that exceeds $4,000. Eligibility criterion is generally based on the period of time that an employee has served in the company. From three months to six months onward, it is often preferred based on a mean grade of C and above.
Significance of adult learning
In a study conducted by OECD in 2003, adult learning takes two approaches. These are intensive approach /model or extensive approach. In extensive model, adult learning involves low volume of training to a large number of adults while in intensive approach, all training targets a small number of people. Adult learning is influenced by size of the company and whether one received tertiary education.
Adult learning is significant in a company that has more unskilled workers because it is the best way to counter imperfections in labour; hence investment in human capital becomes necessary.
Tuition reimbursement to employees
The current existing policies and education structures also restrict adult learning in most companies and institutions as it puts a lot of unnecessary burdens on the learning employee. In order to make working stress free and learning enjoyable, there is no harm in investing in adult education. This is because the knowledge obtain thereafter is used to generate more output for the company (Naish, 1978, p. 107). Ultimately, it is the company that profits from a highly trained, motivated and professionals dedicated to their job. Besides, this qualified team of professionals improves the image of the company and increases customer confidence in their products and services.
Creating extra time to employees
Malcolm Knowles is regarded as the father of adult learning. Knowels and colleagues established that adult learners are autonomous, self directed and they have accumulated a foundation of life experiences and knowledge which may include work related activities, family responsibilities and previous education (Knowles, Holton & Swanson, 1998, p. 109). They are also goal oriented. Upon enrolment in a particular course, they usually know what objectives they intend to achieve. In this case, adult learners require organised educational programs whose elements of application are clearly defined. Adults are also practical and time conscious on their commitments. All these features of adult learning sum up to one thing. That is, after returning from further education in a given field, they are able to handle more tasks. While embarking on personal development packages for its employees, the company should also consider equity for the sake of its semi-skilled or unskilled workers. In this regard, emphasis on financial incentives and policies to increase the participation of low-skilled adults is needed. (OECD, 2003, p. 28).
Conclusion
In advocating an integrated approach to adult learning, there is the need to put stronger emphasis on financial incentives mechanisms and on policies aimed at increasing the participation of low skilled adults.This is because, adults rank high on the policy agenda of many nations and states and an equitable distribution of skills has a strong impact on the company associated with it and on the overall economic performance.This is a clear justification that policies to upgrade the skills of economically vulnerable and disadvantaged groups, should be sought and established by companies on the path to growth and success.
Reference
Bender, S. (2008), The Effects of Tuition reimbursement on Turnover; A case Study
Analysis of Colleen Flaherty Manchester. In Lane, J., Show K. Anderson, F. & Watcher, T., the Analysis of Firms and Employees: Quantitative and Qualitative Approaches, (p. 193-207), University of Chicago; National Bureau of Economic Research, USA. Web.
Knowles, M S., Holton, E F., & Swanson, R. A. 5th Ed. (1998). New York: Gulf Professional Publishing.
Naish, A. (1978). Business in the ‘80s. Cincinnati Magazine, 8(12):107-108.
Organization for Economic Corporation and Development (2003). Beyond Rhetoric: Adult learning policies and Practices. (p.10-13), Paris Cedex 16, France. OECD Publications. Web.