Employee Tuition Benefits

EMPLOYEE TUITION BENEFITS

Your company is reviewing employee benefits packages, especially regarding employee tuition reimbursement. The Company is seriously considering whether to eliminate the tuition remission program for MBA study. Many companies have cut back the amount allocated for MBA education. The latest figures show the average reimbursement for MBA study is down to $1500 a term, and in some cases companies have eliminated tuition reimbursement completely.

Current company policy is that all employees receiving a grade of B or better may be reimbursed for up to three MBA courses a semester. Your company and the industry you are in have a long history of supporting employees who wish to earn their MBA degrees at night.

According to your manager, the President expressed concern about the rise in tuition for the MBA degree. He referred to studies showing a national glut of MBA's and indicated that the demand for such preparation has diminished. There is also a perception that individuals who get MBAs tend to leave the company. In fact, you know of three people who left the firm recently after taking advantage of the tuition reimbursement program. They left for better paying positions in another industry. Finally, the company is concerned about productivity when key personnel attend evening classes two or three nights a week. Often these personnel are not seen as being as loyal to the company as those who are available for overtime. Overtime is a common practice in the wake of layoffs over the last few years.

Because you are just beginning your MBA studies at Stern School of Business, the manager knows you have strong opinions about this policy. Your manager discussed the policy evaluation with you, having just returned from a meeting with the President and the Human Resources Officer. Seeing your response to the news, your manager asked you to write a memo explaining your point of view. If the manager thought the memo were appropriate, the manager would forward it to the President.

Writing Assignment

Write a persuasive memo taking a position about this issue of the company policy of tuition reimbursement for MBA degree study. To support your position, draw on your own experience as a student and as an employee, and illustrate how tuition benefits might affect your work. Address issues raised in the case, and use concrete examples to make your argument persuasive.