{"id":62022,"date":"2023-06-07T18:07:07","date_gmt":"2023-06-07T18:07:07","guid":{"rendered":"https:\/\/explore.local\/2023\/06\/07\/why-your-tuition-reimbursement-benefit-is-hurting-your-deib-strategy\/"},"modified":"2025-04-04T20:09:46","modified_gmt":"2025-04-04T20:09:46","slug":"why-your-tuition-reimbursement-benefit-is-hurting-your-deib-strategy","status":"publish","type":"post","link":"https:\/\/degreed.com\/experience\/blog\/why-your-tuition-reimbursement-benefit-is-hurting-your-deib-strategy\/","title":{"rendered":"Why Your Tuition Reimbursement Benefit is Hurting Your DEIB Strategy"},"content":{"rendered":"\n<p>Tuition reimbursement and equitable learning \u2014 it\u2019s like wearing your dress shoes for an important zoom meeting. Lots of companies use tuition reimbursements <em>and <\/em>support equitable learning, but what lots of HR leaders don\u2019t realize is doing both is counterproductive. That\u2019s because the very education benefit you think is helping your DEIB strategy is actually hurting it.<\/p>\n\n\n\n<p>Like the neck ties and formal attire worn to the office when tuition reimbursement programs were created, it\u2019s time to leave this benefit in the 1970s where it belongs. It\u2019s time to embrace modern benefits more aligned with your business initiatives AND employee wants and needs.&nbsp;<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><a href=\"https:\/\/get.degreed.com\/rethink-your-taps\" target=\"_blank\" rel=\"noreferrer noopener\"><img decoding=\"async\" src=\"https:\/\/explore.degreed.com\/wp-content\/uploads\/2025\/04\/Learn-In-DEIB_SMB-Campaign_Learn-In_TAPs-CTA-Banner.png\" alt=\"\" class=\"wp-image-40408\"\/><\/a><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\">Show-and-tell: How Tuition Reimbursement Isn\u2019t Equitable<\/h2>\n\n\n\n<p><em>Meet Amy. Amy is an individual contributor who performs at a very high level, is trusted to exceed expectations, and is interested in leadership.&nbsp;<\/em><\/p>\n\n\n\n<p><em>Meet Max. Max, like Amy, is a successful individual contributor, well respected throughout the organization, and also interested in developing into a leadership role.&nbsp;<\/em><\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" src=\"https:\/\/explore.degreed.com\/wp-content\/uploads\/2025\/04\/Learn-In-DEIB_SMB-Campaign_Blog-in-post-1-1-1024x576.png\" alt=\"\" class=\"wp-image-40350\"\/><\/figure>\n\n\n\n<p><em>The perception throughout the organization is that these two candidates have a fair and equitable opportunity to be promoted. However, Amy is a working mother with childcare expenses who spends every moment away from work caring for a family. Meanwhile, Max is single with free time and a disposable income.&nbsp;<\/em><\/p>\n\n\n\n<p><em>As it turns out, Max is using his time and resources to pursue an Executive MBA certification to develop his leadership acumen \u2014&nbsp;and he\u2019ll be reimbursed through the company&#8217;s tuition reimbursement benefit.&nbsp;<\/em><\/p>\n\n\n\n<p><em>Upon completion of his certification, Max is promoted to leadership ahead of Amy.<\/em><\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" src=\"https:\/\/explore.degreed.com\/wp-content\/uploads\/2025\/04\/Learn-In-DEIB_SMB-Campaign_Blog-in-post-2-1024x576.png\" alt=\"\" class=\"wp-image-40343\"\/><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\">Why Tuition Reimbursement Isn\u2019t Equitable<\/h2>\n\n\n\n<p>To make education and upskilling more accessible, in 1978 the IRS began allowing up to $5,250 per employee to be tax deductible through TAPs. When used by employees, these programs can deliver as much as <a rel=\"noreferrer noopener\" href=\"https:\/\/www.elevenfifty.org\/blog\/how-does-tuition-reimbursement-benefit-the-employer#:~:text=Tuition%20Reimbursement%20Saves%20Everyone%20Money&text=A%20two%2Dyear%20study%20conducted,an%20additional%20%241.29%20is%20generated\" target=\"_blank\">a 129% ROI that leads to deeper upskilling and retention<\/a>.\u00a0<\/p>\n\n\n\n<p><strong>But if an estimated <\/strong><a href=\"https:\/\/www.statista.com\/statistics\/554081\/percent-of-us-employers-offering-education-benefits\/#:~:text=47%20percent%20of%20employers%20offered,to%20their%20employees%20in%202020\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>47% of companies provide this benefit to their employees<\/strong><\/a><strong>, and it realizes a 129% ROI for the business, why do <\/strong><a href=\"https:\/\/scholarshipamerica.org\/blog\/tuition-assistance-the-secret-benefit-that-boosts-employee-retention\/#:~:text=By%20some%20estimates%2C%20only%20about,are%20ways%20to%20do%20better.&text=The%20benefit%20of%20tuition%20assistance,postsecondary%20education%20with%20less%20debt\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>only 5 to10% of employees use the benefit<\/strong><\/a><strong>?<\/strong> <strong>Because tuition reimbursement isn\u2019t accessible, equitable or inclusive.&nbsp;<\/strong><\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" src=\"https:\/\/explore.degreed.com\/wp-content\/uploads\/2025\/04\/Learn-In-DEIB_SMB-Campaign_Blog-in-post-3-1024x576.png\" alt=\"\" class=\"wp-image-40344\"\/><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\">Barrier No. 1: The Up-front Expense<\/h2>\n\n\n\n<p>The biggest barrier to utilization is the up-front expense. With tuition reimbursement, employees pay the initial cost and often must prove completion of the program. This means they often wait months \u2014 if not years \u2014 before receiving any reimbursement.<\/p>\n\n\n\n<p>Consider that almost <a rel=\"noreferrer noopener\" href=\"https:\/\/fortune.com\/2023\/05\/23\/inflation-economy-consumer-finances-americans-cant-cover-emergency-expense-federal-reserve\/\" target=\"_blank\">4 in 10 Americans (37%) don\u2019t have the savings to cover an unexpected $400 expense<\/a>. Then consider that the college courses and bootcamps that employees use tuition reimbursement for are expensive. According to the Fed&#8217;s <em>2022 Economic Well-Being<\/em> report, it\u2019s likely many of your employees don&#8217;t have a discretionary educational savings account to pay up front for these upskilling experiences. Surely this financial requirement contributes a lot to the fact that&nbsp;<a rel=\"noreferrer noopener\" href=\"https:\/\/scholarshipamerica.org\/blog\/tuition-assistance-the-secret-benefit-that-boosts-employee-retention\/#:~:text=By%20some%20estimates%2C%20only%20about,are%20ways%20to%20do%20better.&text=The%20benefit%20of%20tuition%20assistance,postsecondary%20education%20with%20less%20debt\" target=\"_blank\">only 5-10% of employees use the benefit<\/a>.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" src=\"https:\/\/explore.degreed.com\/wp-content\/uploads\/2025\/04\/Learn-In-DEIB_SMB-Campaign_Blog-in-post-4-1024x576.png\" alt=\"\" class=\"wp-image-40345\"\/><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\">Barrier No. 2: Time Constraints<\/h2>\n\n\n\n<p>As much as they might need help with tuition, employees also need the time it takes to learn something new.&nbsp; In fact, <a href=\"https:\/\/learning.linkedin.com\/resources\/workplace-learning-report-2018\" target=\"_blank\" rel=\"noreferrer noopener\">employees say time is the greatest obstacle to job-related learning they face<\/a>. This makes sense considering that,&nbsp; in 2018, <a href=\"https:\/\/www.linkedin.com\/pulse\/you-worth-more-than-6-12-minutes-training-every-six-john-tschohl\/\" target=\"_blank\" rel=\"noreferrer noopener\">the U.S. The Bureau of Labor Statistics reported<\/a> that companies with fewer than 100 employees provided only 12 minutes of training every six months. Organizations with 100 to 500 employees provided just 6 minutes.&nbsp;<\/p>\n\n\n\n<p>Think of your employees with commutes, dependents (like Amy with her children), or second jobs. They can&#8217;t make extra time. The solution is to give employees time to learn. If you don\u2019t, you\u2019re excluding many of them. Ask yourself: \u201cWho has the time, money, and support to upskill voluntarily, and who doesn\u2019t?\u201d<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" src=\"https:\/\/explore.degreed.com\/wp-content\/uploads\/2025\/04\/Learn-In-DEIB_SMB-Campaign_Blog-in-post-5-1024x576.png\" alt=\"\" class=\"wp-image-40346\"\/><\/figure>\n\n\n\n<p>A great way to do that is by providing your people with <a href=\"https:\/\/www.learnin.com\/the-latest\/learning-stipends-101\/\" target=\"_blank\" rel=\"noreferrer noopener\">learning stipends \u2014 especially prepaid learning stipends<\/a>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Learning Stipends: A Modern & Business-Aligned Education Benefit<\/h2>\n\n\n\n<p><a href=\"https:\/\/www.learnin.com\/the-latest\/technologys-potential-to-expand-diversity-and-inclusion-efforts-within-ld\/\" target=\"_blank\" rel=\"noreferrer noopener\">Technology has a great potential to expand diversity and inclusion<\/a>, and the modernization of learning stipends is a great example of that. Since 2017, learning stipend benefits have become the second-fastest growing benefit in the workplace. <a href=\"https:\/\/hubs.ly\/Q01QVtzd0\" target=\"_blank\" rel=\"noreferrer noopener\">Among the 475 companies named in Inc\u2019s <em>Best Workplaces for 2022<\/em>, almost three fourths (72%) offer learning stipends<\/a>.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" src=\"https:\/\/explore.degreed.com\/wp-content\/uploads\/2025\/04\/Learn-In-DEIB_SMB-Campaign_Blog-in-post-7-1024x576.png\" alt=\"\" class=\"wp-image-40348\"\/><\/figure>\n\n\n\n<p>Why are learning stipends becoming more popular? Because learning stipend programs that exist today can make requests and approvals so quick and easy. So easy that reimbursements frequently happen within days \u2014 if not hours \u2014&nbsp;of approvals, which removes the financial stress on your employees. And <a href=\"https:\/\/www.learnin.com\/the-latest\/learning-stipends-101\/\" target=\"_blank\" rel=\"noreferrer noopener\">prepaid learning stipends<\/a> entirely remove the financial barrier that keeps so many employees from upskilling via tuition reimbursement. With stipends, even small companies can cultivate a diverse and empowered workforce.&nbsp;<\/p>\n\n\n\n<p>Show your employees you\u2019re truly invested in their skill development by providing them with up-front funding they can spend on degree programs, courses, and certifications.&nbsp;<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" src=\"https:\/\/explore.degreed.com\/wp-content\/uploads\/2025\/04\/Learn-In-DEIB_SMB-Campaign_Blog-in-post-6-1024x576.png\" alt=\"\" class=\"wp-image-40347\"\/><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\">Support DEIB initiatives with learning stipends.<\/h2>\n\n\n\n<p>If DEIB is a key initiative for your organization, or if you strive to make all company resources accessible, equitable and inclusive, shifting your tuition reimbursement program to a learning stipend model is critical. Doing so sends a message to your employees that <strong>everyone <\/strong>has the ability to advance their careers internally at your organization. And for added benefit, the shift lets you track spending, gain insights into the skills being developed, and align your L&D efforts to real business objectives.&nbsp;<\/p>\n\n\n\n<p>If you\u2019re interested in learning how to make this shift, we\u2019d love to discuss Degreed Education Benefits with you. When you\u2019re ready to build a more equitable learning culture, Degreed Education Benefits can be implemented in just a couple weeks with minimal lift.<\/p>\n\n\n\n<p><a href=\"https:\/\/degreed.com\/experience\/request-demo\" target=\"_blank\" rel=\"noreferrer noopener\">Request a Degreed demo<\/a>.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><a href=\"https:\/\/get.degreed.com\/rethink-your-taps\" target=\"_blank\" rel=\"noreferrer noopener\"><img decoding=\"async\" src=\"https:\/\/explore.degreed.com\/wp-content\/uploads\/2025\/04\/Learn-In-DEIB_SMB-Campaign_Learn-In_TAPs-CTA-Banner-1.png\" alt=\"\" class=\"wp-image-40410\"\/><\/a><\/figure>\n\n\n\n<p><em>Explore other ways, beyond DEIB, that your tuition reimbursement is letting you down by reading <\/em><a rel=\"noreferrer noopener\" href=\"https:\/\/www.learnin.com\/the-latest\/hr-myth-2-your-tuition-assistance-program-is-a-benefit\/\" target=\"_blank\"><em>\u201cHR Myth: Your Tuition Assistance Program is a Benefit\u201d<\/em><\/a><\/p>\n\n\n\n<p>&nbsp;<\/p>\n\n\n\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Tuition reimbursement and equitable learning \u2014 it\u2019s like wearing your dress shoes for an important zoom meeting. Lots of companies use tuition reimbursements and support equitable learning, but what lots of HR leaders don\u2019t realize is doing both is counterproductive. That\u2019s because the very education benefit you think is helping your DEIB strategy is actually [&hellip;]<\/p>\n","protected":false},"author":62,"featured_media":62033,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[571],"tags":[577],"post_folder":[],"class_list":["post-62022","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-corporate-training","tag-deib"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.2 (Yoast SEO v27.2) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Why Your Tuition Reimbursement Benefit is Hurting Your DEIB Strategy - Degreed<\/title>\n<meta name=\"description\" content=\"See why it\u2019s time to embrace modern benefits more aligned with your business initiatives \u2014\u00a0and with employee wants and needs.\" 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