In business, there’s that tired (but true) cliché: you have to spend money to make money. When it comes to employee retention, the money you spend is on benefits. The money you make is in that elusive low turnover and employee satisfaction, which ultimately translates into productivity. 
 
Back in the day, many people stayed at their companies for years. They might get a promotion or two, but they were often doing much the same work for years and years. Today’s workers aren’t like that. They want to grow, learn, develop—and they’re willing to leave if a company doesn’t help them to achieve those goals. According to a Gallup poll, career advancement or promotional opportunities were the most common reason employees cited for leaving an employer, at 32% of those surveyed.
 
Because education is such a valuable and necessary commodity, many people are going back to school to complete degrees, or getting secondary certifications. Others just want to keep learning. In 2015, there were 8.1 million college and university students over age 25. With so many growth-minded workers seeking jobs in the United States, more and more companies are realizing that the cost of helping employees get the education they want pays off in the long run. If you’ve been interested in this trend, here are three compelling ways education can benefit your business and your employees.
 
1. Advances worker knowledge and adds value  
 
What company wouldn’t want their workers to be highly educated? Employees who expand their skillsets and advance their knowledge add value to their organizations and can contribute in new ways. That might mean they can wear more hats and contribute to different jobs, improve their communication and collaboration skills, or simply become more productive. Some organizations have even used the approach of paying for education in order to train people to take on hard-to-fill jobs in departments like data science.
 
2. Has been shown to retain employees longer
 
Of all the reasons to offer education benefits, perhaps the most compelling has to do with employee turnover. Turnover is extremely expensive for organizations, and sponsoring employee education can help to reduce turnover, offsetting costs. Health insurance company Cigna found that for every dollar spent on employee education, it saved $1.29 in turnover costs. Participants in their program were also 10% more likely to get promoted and 8% more likely to stay with the company. Even at companies like Starbucks and Best Buy, where workers may not want to stay long-term at the retail level, getting a degree is a strong incentive to remain employed for at least the several years it takes to complete their program. Workers who feel that their employer has invested in their success are also more likely to have loyalty to the company.
 
3. Leads to greater work satisfaction
 
People who are working toward their ultimate career goals feel more satisfied than people who feel stuck in a role they find dull or uninspiring. By investing in employees’ futures, companies can help to create a positive environment that encourages employee engagement and satisfaction. 60% of respondents in a SHRM survey felt that benefits were very important to their job satisfaction. By tailoring education benefits to meet employee needs, companies can help employees feel good about being part of their organization.
 
Providing Assistance at Every Level
 
Many of the largest companies are offering education assistance for their front-line workers, and it’s paying off. Tuition costs are rising about 6% each year, and many would-be students are worried about taking on debt to pay for college. Providing these benefits has been a great way to retain talent longer in high turnover positions.
 
Even workers who already have a bachelor’s degree can benefit from additional education, such as working toward an MBA and improving their business skills and communication. For companies that want to keep the best and brightest in-house long term, supporting employees financially and allowing them more flexibility can be a good move.
 
From sponsoring the $250 fee for the GMAT exam to giving employees the option to work flexible hours to fit in classes, there are so many ways businesses can support their people and reap the benefits of an educated workforce. Today, there are a variety of programs that easily allow people to take classes and work toward higher degrees while working. Companies should look to the success of other organizations and think about helping employees go back to school.