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What are some of the reasons that companies do not provide tuition reimbursements for their employees
My company does not provide their employees with school tuition reimbursement. why not?

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Asked by David Saturday Jul 14th 2007 in Paying for College
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You know it can also depend on your grades as well and if you get high enough grades for the company to reimburse you for the money you spend on tuition. Secondly, some companies do not want to pay for you to go to school unless its in their best interest such as new certification or training that would allow you to do a better job or move to another department or job that is in demand. Often, tuition reimbursement is a bargaining chip that is played when your originally negotiated your salary and terms when accepting your job. If you did not ask for tuition reimbursement (granted its possible in your industry), then it shouldn't be a surprise that the company will not cover it.

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Howdy!

This is a really tough question, with an answer that is not so simple. There could be any number of reasons why an employer would not offer tuition reimbursement to its' employees.

For one, money. It just might not be affordable to the company. It's easy to take for granted how much it costs to run a business, when you factor in payroll, insurance, payroll taxes, cost of supplies, rent, real estate, etc. It might be that the employer does not want to pay the tuition, in addition to regular wages to an employee who is not at the moment helping get the work done. The easiest answer is that the company just does not have the money to spend.

Another reason might be the specific field and how important higher education is for this type of work. More education is not always necessarily better education, and perhaps the employer feels this way. There is also a very good case for on the job training. Sometimes it might be better to stay on the job, continue to help the company, and get real, hands on training, as opposed to going to an off-site location to learn some theory that may or may not be used.

If you would like to know your specific company's policy on tuition reimbursement, the best bet is to just ask someone there.

You shouldn't give up your search though, as there are other sources of funding for education. For example, Michigan has a program where they help pay for education that the employer might not.

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