Many employers offer educational assistance as a benefit to employees. Educational assistance can help you attract and keep employees. And, it can help employees learn skills and move up in your company. Offering this benefit is a win-win for everyone.
But, having an educational assistance program is only truly beneficial if you set it up correctly. You must consider tax laws plus the needs of your business and employees.
What is educational assistance?
Educational assistance is when you pay for part or all of an employee’s educational expenses.
Educational assistance benefits vary at every business. Some employers cover different types of education, some offer different amounts of assistance, and some provide financial assistance in advance or after education is complete.
You have some say in how you offer educational assistance benefits. However, the tax codes you choose to follow will also dictate what your plan looks like.
Why have an educational assistance program?
The top reasons the employers offer education benefits are to:
- Retain current employees
- Maintain/increase employee satisfaction and loyalty
- Keep employees current on evolving skill sets required for the business
- Attract future talent
- Maintain/increase innovation
- Maintain/increase productivity
By providing educational assistance benefits, you can attract new employees to your business and entice them to stay. Employees pay less out of their pockets for education, and possibly reduce or eliminate the need for loans. As employees further their education, you can give them more responsibilities, promotions, and raises.
When employees gain more skills and knowledge, your business operations improve. A successful educational assistance program has the potential to benefit everyone.
This article talks about the educational assistance provided by the company to employees who wish to continue their professional studies.
The objectives of this article include:
- Provide continuing professional education to HOIT employees.
- Support employees’ studies to enhance employee engagement.
- Enhance employees’ learning and development.
- Revise and supersede the exceeding Educational Assistance Program.
This policy covers all House of IT regular employees.
The guidelines to the policy to be followed by the employee who wish to avail this service are as follows:
1. Eleven thousand pesos will (PHP 11,000.00) will be granted by the company to the employee and twenty-two thousand pesos (PHP 22,000.00) to the managers for every academic semester/trimester.
2. Ten slots are available every semester/trimester.
3. Interested employee will have to furnish a complete educational plan availment form with the approval from his/her department head and CEO to be submitted to the HR department.
4. The qualifications and requirements for the employee to avail the service are the following:
- A regular employee
- Minimum of 80% monthly performance scorecard for the last 2 months
- Minimum 15 units is required for college degree enrollment
- Minimum of 9 units is required for graduate studies enrollment
- Employee will be bound in a training bond agreement
5. Class schedule and requirements/school work are expected not to hamper employee’s productivity and performance at work.
6. The employee is required to submit class load, schedule, and grades all the time to the HR department.
7. To reapply for another semester, employee is required to earn a passing grade to all enrolled subjects.