Yet a decade ago, many American companies provided tuition reimbursement programs to their workers. People found job-places which compensated a part of tuition costs quite appealing as higher education has always been quite costly. But after that, the Great Recession came and forced businesses to pull in their belts. Today, companies get back to helping students cover their tuition because it helps them to attract and retain employees.
Apparently, tuition reimbursement is more than altruism. Some prominent fast food companies offer education benefit at the current moment which helps them to eliminate staff turnover. It is quite costly for the companies to provide training for a huge number of people who will soon give up on the job and search for vacancies which offer more benefits. Young adults make up a majority of staff at companies like Starbucks, and they will not always remain satisfied with their low salary and a non-prestigious job. A college degree is their chance to compete for promotion and career development.
Tuition reimbursement programs also work as intermediaries between businesses and the government. Young people refuse to continue their education in the first place because they are afraid of the financial burden. They are much more likely to change their mind if there is a compensation. Obviously, the government benefits from the increasing number of college students. Workers who have their tuition covered by the employers also have to apply for federal financial aid. Consequently, the tuition fee can be reduced nearly in a half by combined efforts of companies and the government.