Tuition assistance

Why do organizations pay for training that makes employees more attractive to competitors?
By Todd Humber
|CHRR, Guide to Training & Development|Last Updated: 09/04/2003


rganizations commonly offer some form of tuition assistance to employees. Some limit the type of training they will cover. Others leave it open to the employee to pick and choose the type of courses they’re interested in taking. Many unions, including the CAW, have included tuition reimbursement as a core part of bargaining strategy.

But why should an organization pay for training that could make its staff more attractive to competitors and drive up salaries? It’s a rather simple argument — it keeps costs down in the long run by reducing turnover and increasing the company’s talent pool.