A raging issue being talked about from the White House to Wall Street is that of the worker shortage. The job market is recovering in the United States, but skilled human resources are scarce. Employers are trying to entice workers by proposing wage increases, incentives, and bonuses. However, these are short-term solutions. The number of resignations is still on the rise this summer, especially in the Tech and Healthcare industries. Amid recovery from the pandemic, the US is experiencing growing markets and increased profits. But a critical shortage of workers could undermine the positive momentum. Low rates of educational attainment and large numbers of worker retirements are two factors that have created a need for qualified workers that is immediate and will increase in the future.
Are you wondering what will work both as a short- and long-term hiring and retention strategy?
Businesses that strategically plan to develop their workforce and promote higher education to all employees will create a strong workforce and also strengthen the economy. Strategic use of a Tuition Assistance Plan (TAP) creates the opportunity for businesses to develop resources and talents from within. Implement a plan that helps recruit, retain, and engage qualified workers results in a workforce that can successfully compete in the global market. Strategic TAP promotion that involves all workers and aligns business goals with employee talents creates a workforce that is skilled and responsive to changes in technology and the global market.
The recent news piece on CNN where a restaurateur – Skyler Reeves – talks about adopting tuition reimbursement for full-time employees as a tool to attract and retain employees can’t be any closer to driving the point home that TAP and Student Loan Assistance are vital strategic tools for all employers: be it mid-size, big, or small. And more and more organizations are either utilizing or eager to implement such benefits.
So you have considered these options, but don’t have the bandwidth to implement them?
Enter Edcor
TAP Promotion Yields Higher Returns
A tuition assistance plan is a solution to the worker shortage when it is an integral part of business culture. Promoting TAP and encouraging employees to be involved must come from business leadership. Almost 80 percent of companies have some sort of tuition assistance plan, but those who promote their plans to employees see the greatest return on their investment. If education is valued and the connection between education and company goals is clear, employees will be encouraged to seek higher education.
Encourage Employees
Strategically promoting TAP to overcome the worker shortage includes encouraging employees at all levels of employment to seek the higher education that gives them the qualifications they need for their job. This promotion can take a couple of forms.
- Create cohorts of employees who can work together to increase their skills and to fill skill gaps that are present or on the horizon.
- Have employees share their knowledge with other employees.
This kind of action from company leaders encourages more employees to seek higher education and increases employee engagement.
Cover Education at all Levels
In the past 30 years, the number of certificates awarded has grown 800 percent illustrating the flexibility and value that certificates have. Certificates are an integral part of the education system today, and can quickly fill the need for continuing education. Certificates often earned before a degree and can lead to degree completion. They can also be stacked as an addition to an earlier certification, or be a complement to a degree. Covering certificates as part of a TAP program closes skill gaps and creates the opportunity for a business to maintain high productivity.
Use Student Loan Assistance as TAP Complement
Student loan debt is having a powerful impact on borrowers, businesses, and the US economy in general. Information from the National Financial Capability Study shows that
- Almost 45 percent of millennials owe at least one loan for themselves or their family members.
- Among those with student debt, 51% felt concerned that they will not be able to pay it back
Offering employees Student Loan Assistance is a strategic move that can strengthen all stakeholders. As it helps employees manage student debt, it can help businesses retain employees, and avoid a skills gap. It can also address the larger economic impact of student loan debt.
Edcor is a woman-owned business and is the benchmark in education benefits administration. For 40 years our customized service and solutions have allowed Fortune 1000 Clients to use education benefits for employee recruiting, retention, and development. Please feel to reach out to us if you need help implementing these strategies. We’ll be happy to be a part of your success story.
