When times get tough, chunks of compensation packages typically go by the wayside, things like annual raises, bonuses, 401(k) matching.
So what about on-the-job training and tuition reimbursement. Are companies scaling back those too? “Unfortunately, the answer is yes,” says Jerry Luftman, distinguished professor and associate dean at Stevens Institute of Technology in Hoboken, N.J., and vice president of academic affairs for the Society for Information Management, for which he conducts an annual survey of members IT budgeting and staffing plans. “Companies that have not had any tuition reimbursement caps are starting to put caps in place.”
While such moves may have short-term benefits, he worries about the long-term repercussions. “It’s a way of saving, but it’s a demotivator for getting their employees up to speed in the skills they need to be successful, and to make a really valuable contribution,” he says. By contrast, “it’s such a huge motivator when times are tough, to invest in your employees.”
Of course, he acknowledges, sometimes such cuts are absolutely necessary. “I understand if you need to make a tradeoff between training or educating somebody, and firing people – that’s a balance.”
Even with the downturn, however, there’s typically still some tuition reimbursement. “No one has pulled it back entirely,” Luftman says. And while fewer companies are footing an employee’s entire tuition bill, he estimates half still pick up the whole tab.
Interestingly, while the economy may be in shambles, Luftman says the typical student profile, as well as enrollment levels, seem to be holding steady at Stevens. “Eighty percent of my students are working professionals, with the average being about 10 years of experience,” he says. When it comes to enrollment, “we’ve not really seen the numbers go down here.”
Tags: compensation, perks, training, tuition
