Navigating The Maze: How Employer-Based Education Benefits Address Student Debt Concerns

The essential ABCs for building customized programs in changing times

The landscape in higher education is anything but certain. The Supreme Court’s decision to strike down President Biden’s student loan forgiveness plan has left tens of millions of Americans reeling. Meanwhile, the Biden administration is moving ahead with other ways to alleviate student debt, including discharging $39 billion in debt for 804,000 borrowers.
 

Many employees are left to wonder: Will financial burdens limit opportunities for learning and career development?

While the promise of student debt relief remains in limbo, we can all agree on the importance of employer-based education benefits and the pivotal role employers play in supporting employees' educational aspirations.

By providing accessible, meaningful, and comprehensive educational benefits, organizations can help alleviate financial barriers and provide new avenues for learning and growth. As the battle over student debt continues to play out, organizations can offer clear value and opportunities for employees in uncertain times.

What Employers and Employees Stand to Gain

Employer-based educational benefits are more than just a perk. They demonstrate an employer's commitment to nurturing employees' well-being and career growth — and cultivating a culture of growth and continued learning within the organization.

At the same time, educational benefits contribute to the development of a workplace that attracts — and, equally importantly, retains — top-tier talent. Whether it’s tuition reimbursement, educational scholarships, professional development programs, educational counseling and advising, or partnerships with higher education programs, educational benefits provide crucial pathways for advancement and skill development. These offerings can also help build a motivated and engaged workforce committed to the company's long-term success.

Starbucks, for example, offers full tuition coverage for employees to earn a bachelor's degree online at Arizona State University. The highly successful program assists thousands of workers and enables the coffee giant to better attract top-tier talent and foster employee loyalty. Other companies have taken notice: Major brands like Amazon, Target, Lowes, and Chipotle have all launched free college programs in the past decade.

With a greater focus on higher education and its costs, employers are uniquely positioned to grow and redefine their educational benefit programs. The question is, will more companies capitalize on this newfound opportunity?

The “ABCs” of Successful Education Benefits Programs

Employees see value in education opportunities. In fact, 80% of employees are interested in going to school while working. However, few employees know about their organization’s educational benefits, and even fewer actually end up using them.

Forward-thinking companies recognize that educational benefits are not just a checkbox on their benefits package but a business imperative that requires dedicated investment and a comprehensive strategy. So, how can organizations grow and refine their educational benefits in a way that makes sense for their business and their employees?

As you look to support employees’ education goals and professional development, the following steps — the “ABCs” of education benefits — can help you build valuable programs that advance individual growth, support organizational needs, and accommodate changing workforce demands.

1. Afford comprehensive and complementary benefits

For employees to fully leverage the potential of education benefits, they need comprehensive, cohesive benefits that are easy to access and complement other training and professional development programs. It’s crucial to develop a clear strategy that aligns with your organization’s educational benefits, professional development programs, and career development opportunities.

Consider the concept of a "learning wallet” that consolidates various development resources under a single umbrella. Given today’s dynamic workforce, a learning wallet is a practical solution to streamlining access to programs. It also enables employees to utilize their allocated development funds for a broader range of educational opportunities, such as traditional degrees and cutting-edge courses aligned with evolving industry demands. Whether it's a boot camp, a Google AI program, or a conventional degree, a learning wallet offers the flexibility for employees to choose learning experiences that align with their career aspirations and learning goals.

2. Balance employer and employee-led approaches

Successful educational benefit programs require striking the right balance between employer-led and employee-led approaches. While offering employees freedom and flexibility is important, it's equally important to ensure that the courses chosen align with the organization's objectives and goals.

Consider curating a marketplace of pre-vetted educational programs that empower employees to make informed choices that benefit both their personal growth and the company's strategic objectives. You can support employees as they explore education options by ensuring that they are aware of your organization’s benefits and the process to access them. Throughout this process, lend support to employees and simplify arduous processes (e.g., navigating approvals, payments, and reimbursements) that can deter employees from utilizing those resources in the first place.

3. Collaborate with a trusted partner

Building valuable education benefits programs takes dedicated resources and investment over time. Fortunately, you don’t have to go it alone. Third-party partners can provide the necessary infrastructure and support for online learning and other professional development programs — providing greater options and flexibility for employees balancing work, life, and education.

You may want to consider partnering with a higher education institution or other learning partners who are willing to offer scholarships, education advising, and access to tutoring, guidance, and resources. These types of partnerships are mutually beneficial opportunities, providing employees with specialized training and high-quality educational experiences and institutions with opportunities to position their programs to suit industry needs, attract more students, and foster a reputation for producing job-ready graduates.

As the landscape of higher education evolves, prioritizing educational benefits enables your organization to become an employer of choice — laying the foundation for a skilled, engaged, and growth-oriented workforce.

Just as importantly, you stand to make a tangible impact on employees' lives. By investing in educational benefits, you send a powerful message: You are committed to employees' growth, both personally and professionally. Now, more than ever, it’s a message your employees need to hear.

Author Bio

Jeremy Walsh is the Executive Vice President of Corporate Partnerships at AllCampus.