When you’re facing budget cutbacks, do educational benefits stand out as a prime target? If it’s hard to measure the value of a single employee’s value to the business, how much more difficult is it to determine the impact of improving this employee’s educational level?
However, many workers — especially those who businesses consider highly valuable — consistently rank educational and professional development opportunities as one of the most important programs an employer can offer. Networking with peers, exposure to new techniques and ideas, and improving motivation are among the benefits that employees cite. Employers benefit from improved retention and higher productivity.
In today’s technology-driven world, businesses need workers with knowledge and skills honed by continuing professional education (especially in science, technology, engineering, and math) to stay ahead of the competition, both here and abroad.
Uncle Sam is helping the cause through Section 127 of the Internal Revenue Code, which allows an employee to deduct up to $5,250 a year in contributions from their employer for college or graduate education. According to one nationwide survey, more than a million Americans are taking advantage of this tax-free employee benefit.
It makes sense for you to help your valued employees join them.