Pam Hunt, the Employee Benefits Manager, wrote a report analyzing the potential benefits of implementing a tuition reimbursement program at Wright Medical Center (WMC). She found that such a program could help WMC attract and retain talented employees, improve productivity and efficiency, and build leaders. It would demonstrate that WMC values education and wants to help employees advance. While an initial cost, there are tax incentives for companies that offer tuition reimbursement. Pam recommends WMC set clear guidelines for eligibility, reimbursement amounts based on grades, and require employees to remain at WMC for two years upon completing their degree. The program could create future leaders while strengthening WMC's competitive position.
1. 1
Pam Hunt
Employee Benefits Manager
403 7th Avenue N.W.
Clarion, Ia. 50525
February 14, 2010
Pat Kirstein
Director of Human Resources
1316 South Main
Clarion, Ia. 50525
Dear Pat Kirstein:
This report you asked for examines the affects of implementing a tuition reimbursement
program. Throughout the report there will be a comparison between the pros and cons with an
analysis to show why this plan will be good for the company.
During my analysis, I examined the percentage of businesses that have incorporated tuition
reimbursement; compared scholarly reports; and why this is a good idea. My search leads me to
believe that with the proper set-up, the implementation will be worth our organizations time.
This program meets our organizations motto which states we are “consistently exceeding
expectations”. Although the unemployment rate is booming, our organization is growing and
with no long-term effects; just this year alone, we are expanding our building to provide better
service.
Many larger organizations have implemented this program and have seen stability within their
organization. Education is a vital part in a person’s life and I recommend that our organization
contribute to making the difference.
I was able to collect information from the Bureau of Labor Statistics and National Bureau of
Economic Research. I also collected information from individuals that have the experience and
knowledge to provide advice.
Thank you for allowing me to provide you with information that could make a difference for our
organization. If you have any questions, do not hesitate to contact me. I look forward to speaking
with you further on the program.
Sincerely,
Pam Hunt
Employee Benefits Manager
3. 3
Tuition Reimbursement
Executive Summary
In order for our organization to compete with other organizations, Wright Medical Center should
implement the tuition reimbursement program. WMC strives to provide a competitive market so
that we can hire individuals that can assist us in exceeding our customers’ expectations. Tuition
reimbursement programs tell our employees that we care about their education and we want to
help.
Education provides our staff with the skills to achieve a higher performance. With higher
performance we can become more efficient and reduce administrative costs. Our turnover rate
would decline and our retention level would increase. Although some companies cringe at the
idea, there is a tax incentive for businesses that participate. We want to build leaders, improve
our professional image, and be more productive. We can accomplish this by implementing a
program that creates a better future all around.
In order to accomplish a triumphant program, I suggest these steps:
1. Expect nothing less than an A, B, or C. Anything less than these grades are not acceptable.
Grades are an indication whether or not a student understands what is being taught.
Provide funds that match the grade. A certain percentage such as 100 percent for an A, 90
percent for a B, and 80 percent for a C.
Do not provide money up front. Have the student submit receipts for the period semester.
If the student falls behind, student must repay tuition.
2. Preparing for agreement. Students must possess a willingness to learn and have some
knowledge in business and communication.
Interview student.
Full-time employee
With the completion of a degree, student must remain with the organization for a
minimum of two years and sign an agreement.
Class schedule will not hinder work program or routine.
3. Acceptance. Student must follow protocol in order to receive acceptance and forms must be
completed.
Manager of department
Human Resources
CEO
4. 4
Introduction
Write Medical Center continually tries to stay ahead of the competitive market. I was
asked to examine information to implement a tuition reimbursement program for business
and communications. To do this, I evaluated whether or not the program would be
beneficial for the organization.
Purpose and Scope
Wright Medical Center prides them on staying competitive. One way to do this is to
execute a college program for students that want advancement. The purpose of this report
is to examine if WMC would want to start the program.
In this report the pros and cons of such a program will be discussed. What does the
program provide for the student and for the organization? What is the difference in
income? I discuss basically how to set a program.
Assumptions
The assumption of the examination is the potential for both the student and the
organization to prosper.
Methods
The information obtained in this report came from the internet.
Criteria
The criteria that I established were fairly common with all the reports and papers that I
read. Most of what was stated on one cite reconfirmed on another therefore it is my
recommendation to move forward.
What Does the Program Provide for the Student and the Organization?
The program provides students with confidence because the message that the
organization is they believe in the student. It also supplies students with the skills to be
productive and to complete assignments. With the proper guidance, students can become
leaders and can advance the professional image of WMC.
The organization benefits by the decline in turnover rate and an increase of retention with
employees, thereby declining the organizations expenditure and increasing efficiency.
According to the Internal Revenue Code, WMC can pay up to $5,250 tax free (Ali,
2007). The National Bureau of Economic research states “a 2002 survey by the Society
for Human Resource Management of 510 employers found 79 percent offering
educational assistance of various kinds” (Francis, 2010).
What is the Difference in Income
The average pay for students beginning the first year of a career will depend on the
region they live in. The average range is around $38,000 to $80,000 with 20 years
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experience. It also depends on what type of position a person chooses to pursue and the
type of degree.WMC could provide a reimbursement for someone interested in business
administration.
Setting Up
First, create an amount the organization would like to contribute. Second, agree on the
recipient. Determine what courses will be reimbursed. Collaborate with the CFO for tax
purposes. Announce program to employees. Decide how the money will be disbursed
over the course of the student’s enrollment.
Conclusion
Continuing adult education for WMC creates a competitive market, especially with a
continual change in technology. We are not like everyone else who wants to put their
pants on one leg at a time. I have explained that implementing this program enhances our
organization and boosts the ego of a new leader. I look forward to discussing the areas
mentioned in more detail.
6. 6
References:
Ali, M. (2007). Should your company offer tuition reimbursement. Retrieved February
12th, 2010 from Google:
http://www.associatedcontent.com/article/248676/should_your_company_offer_t
uition_reimbursement.html?cat=3
Bureau of Labor Statistics, (2009). Human resources, training, and labor relations
manager and specialists. Retrieved February 12th, 2010 from Google:
http://www.bls.gov/oco/ocos021.htm
Francis, D. (2010). Why companies pay for college. National Bureau of Economics
Research. Retrieved February 12th, 2010 from Google:
http://www.nber.org/digest/feb03/w9225.html
N. A. (n.d.). How to provide tuition reimbursement for employees. Retrieved February
13th, 2010, from Google. http://www.ehow.com/how_2076459_provide-tuition-
reimbursement-employees.html