Helping employees repay college costs boosts Cigna results
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A study released Monday by health insurer Cigna Corp. shows that helping employees pay their college tuition can significantly boost a company's bottom line.
According to the analysis conducted by management consulting firm Accenture P.L.C., Cigna's education reimbursement program produced a 129% return on investment between 2012 and 2014.
The analysis also showed that education reimbursement program participants are 10% more likely to be promoted, 7.5% more likely to be transferred within the company and 8% more likely to stay with the company than those who didn't participate, Cigna said in a statement.
Responding to the study's results, Cigna said it increased the maximum amount of tuition assistance the company offers to workers in high-demand fields to up to $10,000 for undergraduate courses and $12,000 for graduate courses from $5,250 and $8,000, respectively.
Cigna also said it added advisory services to help students navigate higher education and career pathways, and mentoring to help ensure students complete their studies.
According to the Society for Human Resource Management, 56% of companies offer some type of undergraduate education assistance.
“Attracting and retaining talent is essential to our success as a company, and to advance those goals, we've made tuition reimbursement a priority,” Karen Kocher, Cigna's chief learning officer, said in the statement. “Knowing that tuition assistance also reaps a financial return — and quantifying that return on investment — has affirmed our belief in the program and prompted us to make changes that will make it even more impactful.”
“Investing in employees' tuition isn't a benefit cost, but rather a valuable investment that positively impacts organizations' bottom line. That should entice more C-suite leaders to embrace this approach,” said Jamie Merisotis, president and CEO of Lumina Foundation, which promotes higher education and partnered with Cigna for the study.
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