6 Reasons Why You Should Use Employer Education Benefits

Employer-sponsored education benefits are a major priority for organizations today, with U.S. companies investing nearly $180 billion annually in continuing education. Although these programs are not new, they play an essential role in today’s workplace by addressing skill gaps, increasing productivity, and helping organizations stay up to date with rapidly evolving technology.

As more employers offer these programs, understanding which benefits are available to you as an employee—and how to use them—can help you develop your skills, grow your career, and remain competitive in today’s job market.

Employer-sponsored education benefits allow employees to earn certifications or degrees—such as an associate’s, bachelor’s, or master’s—at little or no cost. Employers may offer various benefits, with each serving different needs, so there is no single “best” option.

Here are the most common benefits you may have access to:

• Tuition reimbursement
• Tuition assistance
• Tuition discounts via university partnerships
• Student-loan repayment
• Certificates and micro-credentials

Tuition reimbursement means you pay tuition upfront and are then reimbursed by your employer after completing a pre-approved program. The downside of reimbursement models is that they assume employees can afford to pay thousands of dollars in tuition upfront. For many individuals, this simply isn’t realistic, with 67% of Americans living paycheck to paycheck. For this reason, many reimbursement programs see low enrollment rates.

Tuition assistance is often confused with tuition reimbursement, but they are not the same benefit.  With tuition assistance, your employer pays some or all of your tuition bill upfront before you begin classes, so your out-of-pocket costs are significantly reduced or eliminated entirely. For this reason, tuition assistance is generally more popular with employees than tuition reimbursement. 

Tuition assistance can also help you save money on taxes. Under Section 127 of the Internal Revenue Code, employees can exclude up to $5,250 per year of employer-provided educational assistance (including tuition, books, and certain fees) from their taxable income. 

Some companies partner with universities to offer their employees subsidized or fully funded education. For example, many University of Cincinnati Online students receive education benefits in the form of a scholarship through employer partnerships. These partnerships give employees access to top-tier, flexible academic programs—often fully online—plus specialized courses aligned with business goals and employees’ skill needs. These partnerships also remove the need for employees to search for qualified schools and programs, and some offer support from specialist advisors.

Student loan debt and financial stress strain employees and impact productivity. Some employers address these challenges by contributing to loan repayments. In these programs, an employer may make one-time, monthly, or matched payments toward an employee’s loan balance. Although this benefit can help with retention, it does not provide opportunities for employees to develop new skills and grow professionally. 

Employee education benefits may also include workshops, bootcamps, seminars, certificates, and upskilling or reskilling courses. For example, UC Skills is a non-credit learning program by the University of Cincinnati that offers learners short-term courses, micro-credentials, and digital badges for career and personal growth. These options provide a quick return on investment for companies and help employees gain skills quickly. One downside to workshops and micro-credentials is that they typically do not offer the comprehensive education or long-term value that a traditional degree provides.

You might already have an idea of how upskilling helps companies, but employer-sponsored education benefits can also help you thrive—both in your career and personal life. Here are six reasons why you should take advantage of these programs:

1. Upskill for promotions and internal mobility
2. Build in-demand skills to future-proof your career
3. Boost your productivity—and your earning potential
4. Increase your job satisfaction and confidence
5. Save on tuition, taxes, and cut student-loan debt
6. Balance work and school with flexible online options

Using employer-sponsored education benefits is an excellent way to advance your career, enhance your skills, and develop new competencies that can lead to promotions.

According to a multi-industry study by Bright Horizons, employees who participated in education benefits experienced promotion and mobility rates up to 25% higher than those who did not. Investing in your education also demonstrates to your employer that you are motivated, committed to the organization, and ready to take on new responsibilities.

The rapid advancement of technology means that to remain competitive at work—and reduce your chances of being laid off—you must learn new tools and keep your skills up to date. Otherwise, you risk falling behind.

According to the World Economic Forum’s 2025 Future of Jobs Report, by 2030, AI and related technologies will create about 170 million new roles while eliminating approximately 92 million existing roles. Importantly, the workers who lose their jobs are not necessarily the same people who will fill these new positions—especially as AI automates and reshapes entire industries. 

Developing digital and technical skills related to your career is a wise way to secure your future.

Learning new technologies and closing skill gaps can make you more productive and creative at work. Continuing education not only boosts your efficiency but also makes you more valuable to employers, potentially leading to higher pay. 

A Lumina Foundation study found that employees in continuing education programs experienced 41% to 50% greater wage gains over several years compared to those who did not participate. Additionally, the National Center for Education Statistics reports that earning a master’s degree raises average salaries by 20 percent.

Going back to school and earning a degree is a substantial financial investment, and evidence shows it pays off over time. However, taking on excessive debt can negatively affect your finances, health, and well-being. Using an employer-sponsored education benefit provides you with a debt-free (or lower debt) education by shifting eligible expenses (tuition, fees, books) to your employer.

You can also save on taxes. Section 127 of the IRS Code allows employers to provide employees with up to $5,250 a year in tax-free assistance for school. Additionally, while in school, you may also be eligible for certain tax credits and deductions. 

Participating in employer education benefits can help you feel happier and more confident at work—especially if you might otherwise feel professionally stagnant, unmotivated, or bored.

A study by LinkedIn and Deloitte found that employees who spend more than five hours a week learning are 21% happier at work and 39% more likely to feel productive and fulfilled compared to those who don’t seek out continuing education. Growing evidence also shows that a greater sense of control and satisfaction at work directly correlates with better physical and mental health.

Working full-time and going to school might feel daunting, but it doesn’t have to be. When your employer offers education benefits, it shows they support your learning and growth. Some companies may offer flexible schedules and time off for exams, while many others may partner with schools that provide fully online degrees. This flexibility allows you to complete your studies on your own time—whether in the evenings, on weekends, or whenever works best for you. 

Employer education benefits can provide tremendous value, but getting the most from them requires more than simply enrolling in a program. Taking a few proactive steps before, during, and after your education can help you avoid costly mistakes, maximize your financial benefits, and position yourself for long-term career growth.

Here are four ways to make the most of your employer-sponsored education benefits:

1. Read your policy and email HR for clarification
2. Choose an accredited, career-relevant program
3. Track costs, save receipts, and submit on time
4. Showcase your new skills at work

Before enrolling in courses, review your education assistance policy to understand your eligibility and policy rules. Some helpful questions to ask HR are: 

• Am I eligible based on my service commitment?
• How much of my tuition will the company pay?
• Does our company handle tuition up front, or will I be reimbursed later?
• Do we partner with a specific university?
• Do I need manager approval for my degree program?
• Are there any minimum GPA or grade requirements?
• What is our study time policy?
• What paperwork do I need to turn in and when is it due? 

Don’t enroll in programs and schools that don’t qualify for tuition assistance. Choose an accredited program and school and get HR approval first.

If your benefit is tuition reimbursement, track and save receipts for all school expenses. Watch submission deadlines to avoid missing out on reimbursement cycles.

It’s important to demonstrate the impact of your education by applying class projects at work and sharing new skills with your managers. Regular performance reviews can influence your promotion chances and highlight your value to the company.

Interested in how you can take advantage of employer-sponsored education benefits to grow your skills and career? Now may be a great time to talk with your employer about establishing a business partnership with the University of Cincinnati.

As an employee of a partner company, you’ll receive a tuition scholarship regardless of working part-time or full-time. You’ll also have access to more than 120 online programs designed to fit your busy schedule and support your career goals—whether you’re planning to earn a certificate, associate’s, bachelor’s, or one of the following master’s degrees:

• Master of Business Administration (MBA)
• Master of Engineering in Electrical Engineering
• Master of Health Administration (Executive)
• Master of Health Informatics
• Master of Science in Business Analytics
• Master of Science in Information Technology
• Master of Science in Pharmacy Leadership

Unsure how to reach out to your organization about a business partnership? Check out this reference guide for tips on starting the conversation, including a downloadable email message template for you.

There’s no mistaking that continuing education benefits both you and your organization. It can lead to higher salaries, promotions, career growth, and improved well-being. Now is an excellent time to discuss the opportunities available through UC Online with your employer.