In today’s professional world, employees have jobs in industries that didn’t exist five or ten years ago. The World Economic Forum suggests that 65% of six-year-olds today will work in fields that have yet to be imagined.
Keeping employees educated and trained in their particular roles is critical to the future success of not only the individual but also the organization. The publication Workforce indicates that many of the skills that employees use to perform their jobs are outdated within five years. The magazine further states that almost 80% of CEOs view the lack of skills as a primary business risk.
While some business owners worry that educating their employees will encourage turnover, in many cases, employees want to build their skill set to be more valuable to their current organization and optimize their job security.
Hence, making an investment in employee education should be one of your top priorities in the new year.
Offer a Variety of Programs
Educating your employees doesn’t have to mean sending them to a master’s program. Skill development programs can be as short as a lunch meeting or a daylong seminar. The point is that when employees believe they are worth the investment, they perform better at all levels.
Employee education programs tend to be most successful when they are well communicated and easily available. They can cover salaried as well as hourly employees, and are ideally offered at a variety of times, taking family and outside obligations into consideration.
Tuition Assistance Counts
If coordinating an employee education program is beyond the scope of your company right now, you can still provide education benefits in the form of tuition assistance.
Encourage employees to seek out seminars, certificate programs, and even online courses that are relevant to their jobs. Reimbursement for attending programs can encourage people to participate. You can further emphasize the value of educational programs by recognizing and rewarding employees who attend and complete certain programs.
The tax implications of employee education can be confusing. Some programs can be fully deductible, some qualify for reimbursement, and other benefits such as tuition assistance programs can have caps on deductibility for both employers and employees.
With new tax regulations pending, you may need to do a deep dive into the IRS code. Which is why we’re here to help. Making an investment in employee education should be one of your top priorities in the new year because providing educational benefits to employees is good for business.
If you are considering an employee education or tuition assistance program but are unsure how and where to start, call Mooney Lyons today at 847-382-2600. Our professionals can help you design a plan that makes sense for your company and your employees.
Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual. Mooney Lyons and LPL Financial do not provide tax advice or services.