Tuition Reimbursement

free essay There are numerous advantages that accrue to an employee as a result of working in a particular organization. Some of these advantages have no direct impact on the success of a company. However, there are some that have a direct impact on the organization’s success. A perfect example of a mutual benefit for a company and employee is tuition reimbursement. The essay deals with the benefits with which Mondelez International provides its employees. This is a company that gives serious interest and concern in the provision of tuition reimbursement to its employees. However, there is a need to analyze the way in which this is carried out.

Mondelez International is an American confectionary, beverage, and food conglomerate that employs about 100,000 people around the world. Therefore, the analysis of an issue that regards employees in this company is as universal as it can be. This is because it is a huge company that can be used to represent other companies. Improving its services, this company offers tuition reimbursement to its employees, as long as they will be of help to the company.

Benefits to Employees of Mondelez International

Every activity that is carried out by any company has to be carried out in a traditional manner. There have to be rules, regulations, and restrictions to be executed. These are the factors that are analyzed in this part of the essay. The first factor that has to be discussed is the educational studies, appropriate colleges and universities. According to the company’s tuition reimbursement policy, employees have to be involved in studies that are absolutely relevant to the company. This is to ensure that the company does not spend money on a course that is not going to benefit it. Therefore, the company’s management should approve employees’ intention to improve their knowledge and professional skills applying to the university. This approval is given with reference to products with those the company deals and professional level of an employee at the work place. Further studying of employees depends on the educational establishment, where they are going to study, and company’s expectations on the same issue (Heneman, 2002). The concurrence of these two issues will ensure that the company approves the studies for reimbursement. The college or universities that employees attend are also important in the consideration of tuition reimbursement. They have to be accredited. Therefore, the company has to consider the institution that employees choose to improve their knowledge and professional skills. These are obvious conditions that have to be considered by the company and its employees in the process of tuition reimbursement.

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Other issue that is followed in the consideration of whether to reimburse an employee is his performance rating. Mondelez International takes into consideration employee’s hard work, loyalty, as well as the time of service. This is because it would be a great loss to fund an employee that will not be of help to the company. According to the company’s policy, employees have to complete a whole year of active employment. This means that employees who want reimbursement with reference to tuition should have at least one whole year of uninterrupted activity in the company. However, this is only for employees willing to take part in degree programs. When it comes to masters programs, employees should have two years of active service in the company. This is enough time for the company to get to know whether an employee shows enough productivity to receive this advantage. The company refunds about 100% of the total tuition costs of employees. However, the tuition should not exceed $10,000 per year (DuBrin, 2008). This is to ensure that too much resource is not spent on one employee. It also ensures that employees are balanced with reference to the benefits that accrue to them, their working experience, as well as the service quality that they have provided to the company.

Since tuition reimbursement is an issue that involves employees, the human resource management department is the one that is responsible for the assessment of employees to ensure that they are qualified to receive this reimbursement. Therefore, the human resource manager and supervisor have to be involved in the decision of which employees are qualified to get tuition reimbursement. The other vital fact that a manager considers is how an employee succeeds in the examinations. There is no need to support and pay for an employee that has failed to pass his exams. This is because the same employee cannot show the required efficiency in the field and position that the company gives them after successful completion.

To avoid confusion in the process of tuition reimbursement, employee and management of Mondelez International analyze and take into consideration the smallest details. For example, there are some fees that are not compensated by the company. There is also limited sum of reimbursement that cannot be exceeded. For example, related academic programs fees are reimbursed up to $200. These programs can include computer time, lab fees, and others. Additional charges that do not deal with educational service are not reimbursed. An employee should not have more than two courses each semester while studying educational program. This ensures that the workload is not heavy. Through this regulation, the company is convinced that employees still perform their professional duties. However, if there are other institutions that eager to pay for the tuition of employees, the company only pays the remaining fees (Rothstein & Johnson, 2009). This way, they make sure that there is no overpayment, and reimbursement is done when it is extremely necessary. Therefore, the company offers this aid to employees who have no alternative, and their study depends on the company’s money. According to the company’s policy, employees apply for tuition reimbursement after they have completed the application form for educational assistance. Then, they should obtain approval from the manager or human resource manager. This is the general start which brings it to the issue of repayment. The obligation of an employee with reference to the reimbursement depends on the dates of tuition reimbursement.

Benchmarking with other Companies

According to a recent survey, about 84.7% of the companies in the US offer tuition reimbursement to their employees. Statistics show that about 38% of employees who decide to improve their knowledge and skills belong to the management of a company. Statistical data also show that technical and professional employees also get a fair share of the tuition reimbursement whenever they begin to study approved educational programs. Mondelez Company is not an exception. It provides its employees with the benefit of tuition reimbursement. However, the policy of Mondelez International regarding the issue of tuition reimbursement is specific comparing to the experience of other companies.

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Most of the analyzed companies provide the compensation about 90% of the tuition fees of their employees (Chun, 2012). Mondelez International reimburses its employees 100% of the tuition fees. The data proves that the company gives special care and resources to their employees to ensure that they obtain a good education of the professional level that the company would require at the work place. However, the company is conscious to prevent overcompensation. It ensures that the extremely expensive degree and masters programs do not cause inconveniences for the company’s budget.

The paper aims to compare the policies on tuition reimbursement of Unilever, Tyson foods, Danone, Cargill, Incorporated and Smithfield Foods, Inc. Unilever Company compensates their employees tuition fees. However, employees are limited to study only two hours every day. According to the tuition reimbursement policy of Unilever Company, employees must have two years of active involvement in the company, as well as the provision of satisfactory work in the company. Other companies such as Tyson Foods and Smithfield Foods offer 90% of tuition reimbursement. However, all the companies do not take care of other expenses that are not related to the educational program on a direct basis. The companies do not provide reimbursement for education programs that have not been approved. This approval also depends on the fact of whether an employee is in a program that will assist in improving the activity of the organization. Therefore, there is a common characteristic of these companies regarding tuition reimbursement policy. The main aim of companies considering tuition reimbursement policy is to improve their business activity by providing their employees with opportunities to improve their professional knowledge and skills.

Tyson Foods’ policy is aimed at keeping their employees for a long time. This is a different scenario as compared to Mondelez International. Although Mondelez is more successful, Tyson Foods has the highest level of long working employees. This means that the company’s policy appreciates loyalty of its employees. However, other companies demand a refund for the tuition reimbursement. Unilever is the only one that demands 50% of the refund. This shows a common characteristic of these companies. They strive to minimize costs while maximizing productivity at the same time. The other factor that came up with the consideration in the process of benchmarking companies’ policy is the balance of benefits. The restrictions that they have created in the reimbursement policy provide the balance of the companies’ money.

Unilever Company pays for other additional educational activities that its employees are involved in, for example, laboratory time and computer studies. According to the policy of Mondelez and Tyson Foods, both companies pay the tuition fees for courses that are relevant to the work of employees. Cargill also pays for additional activities. However, it places restrictions on the same. This is where the company makes it clear to employees that there is a great need for relevance. Therefore, employees are not allowed to take any additional courses that would interfere with their work. They can take those activities that are already approved by the company. This is different from Mondelez international. Mondelez gives its employees the power to take additional, educational activities. However, it should not spoil the quality of employees’ work and performed duties. Mondelez Company tries to motivate its employees to perform quality and efficient work. Employees feel empowered because they are given the will and freedom to engage in any activities that they wish. Tuition reimbursement policy of analyzed companies takes an important place in the activity of these companies proving to be an efficient issue to improve employees’ work and business activity.

Companies that have applied to the tuition reimbursement policy take care of its employees and eager to create adequate working environment for its employees. The policy of the Mondelez International Company regarding tuition reimbursement is rather efficient and progressive. The policies of analyzed organizations contain certain rules that are mandatory if any employee has been qualified to receive tuition reimbursement. These rules ensure that the money spent on an employee will bring benefit to companies and improve employees’ professional knowledge and skills. Tuition reimbursement can be considered as one of the best activities that any company can undertake in a bid to improve its employees’ work and business activity.

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