EPISODE · Nov 29, 2023 · 32 MIN
Dr. David Ferreira, Provost of Charter Oak State College: Turning Employee Tuition Benefit On Its Head
from WorkforceRx · host Futuro Health
Although most US employers offer some form of tuition assistance, it’s estimated that less than 5% of employees use the benefit. There are several reasons for this, but according to Dr. David Ferreira, provost of Charter Oak State College, paying the upfront cost of tuition is high on the list. “Fifty-seven percent of Americans have less than $1,000 in their savings account. They cannot commit to an upfront tuition cost especially if they’re living paycheck to paycheck,” he tells Futuro Health CEO Van Ton-Quinlivan. Inspired by an idea outlined in Van’s book WorkforceRx: Agile and Inclusive Strategies for Employers, Educators and Workers in Unsettled Times, Ferreira and colleagues decided to turn the traditional tuition reimbursement model on its head and adopt a disbursement model instead in which employers pay the upfront cost and get reimbursed through a federal tax credit for employee tuition benefits. He calls it a ‘win-win-win’ approach. “There’s no money out of pocket for the employee, there’s no cost on the employer side because they'll be reimbursed, and Charter Oak is going to get more students.” In working to sign-up employers as the new Charter Invest program rolls out, Ferreira is also highlighting that it will help companies with the important goals of employee retention and diversifying their workforce. Get all the details, learn about the program’s ‘all you can eat’ design, and find out how employers are reacting to the idea in this eye-opening conversation.
What this episode covers
Although most US employers offer some form of tuition assistance, it’s estimated that less than 5% of employees use the benefit. There are several reasons for this, but according to Dr. David Ferreira, provost of Charter Oak State College, paying the upfront cost of tuition is high on the list. “Fifty-seven percent of Americans have less than $1,000 in their savings account. They cannot commit to an upfront tuition cost especially if they’re living paycheck to paycheck,” he tells Futuro Health CEO Van Ton-Quinlivan. Inspired by an idea outlined in Van’s book WorkforceRx: Agile and Inclusive Strategies for Employers, Educators and Workers in Unsettled Times, Ferreira and colleagues decided to turn the traditional tuition reimbursement model on its head and adopt a disbursement model instead in which employers pay the upfront cost and get reimbursed through a federal tax credit for employee tuition benefits. He calls it a ‘win-win-win’ approach. “There’s no money out of pocket for the employee, there’s no cost on the employer side because they'll be reimbursed, and Charter Oak is going to get more students.” In working to sign-up employers as the new Charter Invest program rolls out, Ferreira is also highlighting that it will help companies with the important goals of employee retention and diversifying their workforce. Get all the details, learn about the program’s ‘all you can eat’ design, and find out how employers are reacting to the idea in this eye-opening conversation.
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Dr. David Ferreira, Provost of Charter Oak State College: Turning Employee Tuition Benefit On Its Head
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