HR Strategies: Measuring Tuition Reimbursement ROI in Healthcare

This discussion post delves into how HR leaders can measure the net return on investment (ROI) for tuition reimbursement programs within healthcare organizations. It emphasizes tracking both direct and indirect returns, suggesting the use of tuition reimbursement software for efficiency and accuracy. Direct ROI measurements include employee growth, increased loyalty, and ease of application submission. The post also highlights the importance of comparing automated processes with manual administration to determine savings. Surveying employees annually is proposed as a simple method for gauging net returns. The discussion references a study on tuition reimbursement and its implications, providing a comprehensive overview of measuring the value of tuition reimbursement in healthcare settings. Desklib provides similar resources and solved assignments for students.

Running head: COMPENSATION AND BENEFITS PROGRAM 1
Compensation and Benefits Program
Name
Institution

COMPENSATION AND BENEFITS PROGRAM 2
COMPENSATION AND BENEFITS PROGRAM
How might HR leaders measure the net return for paying tuition reimbursement?
“If you can’t measure it, you can’t use it” (Peter Drucker). The HR leaders can measure
the returns for paying tuition reimbursement by tracking both the direct and the indirect returns
on investment (Bentley, 2015). To determine the direct ROI, the HR leaders can use the tuition
reimbursement software rather than relying on manual administration. Using an automated
process gives the program administrators an opportunity to work faster and more efficiently,
including producing few errors. However, when determining the time and money savings during
tuition, it is important to use the tuition reimbursement software vs. managing the program
manually for a direct baseline comparison. To determine the net return, calculate the number of
hours per year taken to administer a program manually by the program administrator’s hourly
rate. Once done, the same calculation is performed for using the software.
In addition, there are different direct returns on investment that the HR leaders can track
to determine the net return on paying tuition reimbursement. They comprise of employee growth
that may include enhanced ambition or productivity as well as any promotions that they have
received prior to completion of the program. Second, HR can measure an increase in employee
loyalty. On average, HR can determine how long the employees stay with the company upon
completing the program. Third, the HR leaders can measure the ease of application submission
as a result of implementing the tuition assistance software, which results in enhanced satisfaction
with the program. However, a simple way of measuring the net returns annually would be to
survey the employees.

COMPENSATION AND BENEFITS PROGRAM 3
References
Morton-Bentley, D. W. (2015). Is a Paid IDEA Tuition Reimbursement Case Moot? The
Intersection of Pendency, Tuition Reimbursement, and Mootness. Brigham Young
University Education and Law Journal, 2015(2), 395-419.