College enrollment rates are on the rise as more Americans are realizing the important role education plays in gaining employment opportunities and advancement. In fact, employers are doing their part to encourage higher education as the 2010 Compensation Data Banking and Finance results report 86.9 percent of companies offer tuition reimbursement to their employees.
Of the types of employees tuition reimbursement is offered to, 37.8 percent report reimbursing management employees. Administrative and technical or professional employees are reimbursed at a rate of 37.1 percent. Over 33 percent of banking and finance organizations provide hourly employees with tuition reimbursement, while 48.4 percent offer it to all employees.
“The economic state of the past couple of years has amplified individuals’ awareness of the importance of education,” said Amy Kaminski, director of marketing for Compdata Surveys, the nation’s leading compensation and benefits survey data provider. “Companies offering tuition reimbursement are not only providing a valuable benefit to employees, but they are creating a more valuable workforce, giving them a competitive edge.”
In order to qualify for tuition reimbursement, many companies obligate their employees to fulfill certain requirements. Nearly 69 percent of companies require employees continue working for them once their education has been paid. The average number of months an employee is required to work once they have received reimbursement for their tuition is 13 months. In addition, 97 percent of companies have a course requirement to be eligible for reimbursement.
Most organizations have an annual maximum that can be reimbursed, which can vary by region. Banking and finance employers in the West reimburse their employees the most, $4,795 per year. This is followed by organizations in the East and South at $4,404 and $3,667, respectively. Companies in the Midwest offer the lowest tuition reimbursement amount, $3,136.
About the Survey
Compensation Data 2010 Banking and Finance contains data on over 100 industry-specific job titles and more than 250 benchmark titles ranging from entry-level to top executives. Data is collected annually from banking and finance employers across the country. The results provide a comprehensive summary of pay data, benefit information and pay practices with an effective date of February 1, 2010.
Compdata Surveys is the nation’s leading compensation and benefits survey data provider. Thousands of U.S. organizations provide data each year ensuring the reliability of our results. Compdata Surveys has been providing comprehensive data at affordable prices to organizations from coast to coast since 1988. For further information about their compensation and benefits surveys, contact Michelle Willis at (800) 300-9570.