57 firms offer tuition fees: Why it's important to upskill employees today

At 67.39%, BFSI top tuition reimbursing sectors, executive education provider Emeritus' survey

In a survey conducted by Emeritus Institute of Management on up-skilling of middle managers in 2016, close to 60 per cent or 57 corporate executives say their companies offer tuition reimbursements. The survey hints at the growing trend of up-skilling being undertaken by companies in the wake of automation and digitisation.
 

According to Emeritus Executive Director Ashwin Damera, the onus of skill upgrade now lies with the individual employee. Indian companies need to do more to encourage middle-management employees to take advantage of this benefit.

Emeritus offers management education programmes in collaboration with three top-ranked global business schools, including MIT Sloan Executive Education, Columbia Business School Executive Education and Tuck Executive Education at Dartmouth College.

Respondents across the key industry domains were in favour of signing on to reputed programmes from global business schools. A significant number were ready to pay for either a world-class degree or a diploma.

While the survey does not indicate if they will take loans for such programmes or pay from their pockets, this suggests a strong co-relation with the reimbursement policy.

Tuition reimbursement is an important employee benefit that helps in retaining talented staff and provides incentives for employees, especially at the mid-career stage.

Banking, financial services and insurance (BFSI) sectors lead the trend with 67.39 per cent respondents claiming their organisation offers a tuition reimbursement policy, which is followed neck-and-neck by information technology (IT) and ITeS sector.

However, in BFSI, 18 per cent respondents were willing to consider only free courses for their middle managers whereas 64 per cent were in favour of paid online diploma or certificate courses. On the other hand, in IT and ITeS sector, 50 per cent would opt for a paid online diploma or certificate courses while 31.52 per cent would go for free courses, given a choice.

The manufacturing sector, however, saw only 64.29 per cent of respondents saying that they could opt for a tuition reimbursement policy, with 63.92 per cent being in favour of paid online diploma or certificate courses as against 17.53 per cent for free courses. 

"Given the scarcity of talent assets in India Inc and the demand for the right talent, companies across the industry spectrum have to move fast in the direction of offering courses to thousands of employees that enhance managerial talent," said Damera, quoted earlier.

However, according to Damera, unlike three-five years ago when tuition reimbursements were a tool for retaining employees, the same has now evolved to attracting skilled manpower amidst changing market trends.

"The main focus is now skill upgrade. With automation, machine learning and robotics coming in, and with internal human resource teams being unable to provide cutting-edge training, these companies have to go outside to look for such training. What was retention policy is now skill upgrade," added Damera.