Companies Struggle to Manage Tuition Assistance Programs; Study Finds Companies Striving to Transform Tuition Assistance Programs from Employee Benefit to Strategic Investment.

Business Editors/Education Writers

BOSTON--(BUSINESS WIRE)--March 5, 2003

Despite spending more than $10 billion annually on employee tuition assistance programs (TAP), most U.S.-based employers lack visibility and control of tuition assistance performance, according to findings from a new report released by Eduventures, in conjunction with Cenquest.

The study, "Tuition Assistance Plan Benchmark: Managing TAP as a Strategic Asset," noted that although many companies view TAP as strictly an employee benefit, there is increasing pressure to manage TAP as a strategic investment that strongly aligns with corporate objectives.

Participants in the study seemed to agree that effective TAP management requires three integrated elements: accountable policies and procedures, measurement and tracking of participants and payments, and proactive program selection and university management.

"This study underscores the challenges that many companies face in receiving full benefit from their investments in tuition reimbursement programs," said LaVonne Reimer, founder and CEO of Cenquest. "It provides companies with insights into current practices of TAP management and is a valuable first step toward helping executives create an accountable program that is responsive to employee interests in career development as well as their employer's strategic goals."

According to Adam Newman, Eduventures' vice president of research who led the research effort, "Managing a TAP effectively across an organization is a complex task. Companies want and need to do better to maximize their organizations' education investments."

The study found that common challenges companies face in managing their TAP include:

-- Applying TAP funds judiciously

-- Remaining competitive within their industry

-- Meeting company goals and effectively administering the program

-- Managing TAP within company fiscal restraints

-- Linking course/program to job requirements

These challenges are best summarized by noting that 84 percent of companies surveyed offer some form of tuition assistance plan, yet nearly 50 percent feel they do not have adequate control over these budgets. Only a handful of companies, five percent, measure or track TAP return on investment, while 55 percent fail to measure any element of TAP performance.

"In today's uncertain economic times, all expenditures are coming under tighter scrutiny, and corporate TAP budgets are no exception," continued Reimer. "As the study indicates, the difficulty arises when companies attempt to manage a line item that does not have an adequate level of control or visibility."

Methodology

The research, conducted between October 2002 and January 2003, was designed to assess attitudes and current practices regarding corporate tuition assistance programs. Chief learning officers and human resources vice presidents and managers at more than 500 companies from various industries - including finance, insurance, manufacturing, retail, and professional services - completed an extensive web-based survey. Questions solicited quantitative and qualitative responses on a wide range of TAP issues, including corporate expenditures, management techniques, and the need for outsourced services. Participating corporations varied in size from fewer than 1,000 employees to more than 50,000, with annual TAP expenditures ranging from less than $100,000 to more than $50 million.

About Eduventures:

Eduventures is the leading, independent research and advisory firm dedicated exclusively to the coverage and service of corporate, postsecondary, and pre-K-12 learning markets. To learn more about Eduventures, visit www.eduventures.com.

About Cenquest:

Cenquest is the leading managed education solution provider, specializing in the design and management of accountable tuition benefit programs that are linked to company goals. Since 1998, Cenquest has assisted clients, including some of the largest high-technology companies in the U.S., develop a structured and strategic approach to tuition assistance programs through its managed education service and select portfolio of demand-driven degrees from accredited universities. For more information, please visit www.cenquest.com.