Why Employer-Funded Education Is Becoming a Valuable Employee Retention Strategy

Keeping good employees is important for any business.

However, a good salary may not always be enough to make employees stay. Many people also want opportunities to learn new skills and grow in their careers.

In fact, Gallup found that employees who strongly feel their organisation encourages them to learn new skills are 47% less likely to look for another job.

This shows why corporate training from institutes like REGENT can be an important part of a talent retention strategy. Employer-funded study can help employees grow while helping businesses build stronger teams.

In this article, we’ll have a look at what talent retention is, the best retention strategies, and how your company can invest in employee learning for better success. 

Key takeaways

• Employer-funded education can improve employee retention. 
• Employee education can help close skills gaps, leading to improved results and higher profits. 
• A successful employer-funded study programme should match employee career goals with business needs. 

What is talent retention?

Talent retention is a company’s ability to keep good employees for the long term. It’s about creating a workplace where people want to stay and grow.

There are many reasons why an employee may choose to stay with a company.

• They may enjoy their work. 
• They may have a good relationship with their manager. 
• They may receive fair pay and benefits. 
• Or they may see opportunities to move forward in their career.

Learning and development can also play an important role. Employees often want to know that their careers are moving forward.

They may want to learn new skills, earn a qualification, or prepare for a more senior role.

This is where employee education benefits can help.

For example, an employer could offer study assistance, corporate bursaries, or workplace training.

These opportunities benefit the business too.

• Skills development can help businesses fill skills gaps and prepare existing employees for future roles.
• It can also support succession planning.

Instead of always looking outside the business for skilled people, employers can develop the talent they already have.

What are the 4 pillars of employee retention?

There are four important areas businesses can focus on:

1. Fair pay and benefits: Employees should feel fairly rewarded for the work they do.
2. A positive workplace: Good leadership, communication, and recognition can improve employee engagement.
3. Career development: Employees should have opportunities to learn, improve their skills, and move forward.
4. Work-life balance: Employees need enough flexibility and support to balance their jobs with their personal lives.

Together, these areas can give employees more reasons to stay with a business.

What are the best retention strategies?

There is no single way to improve staff retention. Instead, businesses can use several strategies to create a workplace where employees want to stay.

1. Provide career development opportunities

Employees may be more likely to stay when they can see a future within the business.

Managers can talk to employees about their career goals and help them understand what they need to do to progress.

This also helps businesses prepare employees for future positions.

2. Offer employer-funded study

Education can be expensive. Employers can make it easier by paying for some or all of an employee’s studies. 

Employer-funded study may include:

• Study assistance
• An employee bursary programme
• Corporate bursaries
• Funding for short courses
• Funding towards formal qualifications

This gives employees the chance to gain useful skills without carrying the full cost themselves.

At the same time, the business gains employees with stronger knowledge and skills. It can therefore support both employee retention and workforce development.

Learn more about why corporate training is important for business. 

3. Invest in staff training and development

Not every employee needs a full qualification.

Short courses, workshops and employee development programmes can also help employees build important skills.

Training could cover areas such as leadership, management, finance, technology, or communication.

The best workplace learning and development programmes should meet real business needs.

4. Recognise employees

People want to feel that their work matters. Managers can recognise good work through regular feedback, praise, and rewards. This can help employees feel more valued.

5. Support work-life balance

Employees also need time for their lives outside work. Flexible working arrangements and supportive workplace policies can help employees find a healthier balance. 

For example, a company may offer hybrid or remote working models so employees can work from home several days of the week. 

Ultimately, this may give them another reason to stay with the business long-term. 

How to create an employer-funded study retention strategy?

A good employer-funded study programme should benefit both the employee and the business.

Start by looking at the skills your business needs:

• Where are the biggest skills gaps? 
• Which skills will your business need in the future?

You can then find courses or qualifications that help employees build these skills.

Next, decide how much your business can afford to contribute.

For example, you could pay the full cost of a qualification. Or you could cover part of the employee’s fees.

You should also create clear rules for your programme.

Explain:

• Who can apply
• Which courses or qualifications qualify
• How much the company will pay
• What academic results employees need to achieve
• What happens if an employee leaves the company

Make sure employees understand these rules before they start studying to avoid being taken advantage of. 

Finally, track your results. Look at course completion, promotions, employee performance, and staff retention. This will help you understand whether your employee education benefits are helping your business.

FAQ

Do employees have to repay employer-funded study costs if they resign?

It depends on the agreement between the employer and employee.

Some employers may require employees to repay some or all of their study costs if they leave within a certain period.

These conditions should be clearly explained before the employee starts studying. Agreements should also follow South African employment and contract laws.

Can employers fund part-time or distance-learning qualifications?

Yes. Part-time and distance learning can work well for employer-funded education in South Africa.

Employees can continue working while completing their studies. This can make it easier for businesses to support learning without losing employees from the workplace for long periods.

Which qualifications are suitable for workplace development programmes?

It depends on the skills your business needs.

For example, employees may study business, management, finance, human resources, leadership, or project management.

The qualification should ideally support both career development and the needs of the business.

How can smaller businesses introduce an employee education benefit?

Start small. You don’t necessarily need to pay for an employee’s entire qualification. For example, your business could pay part of the fees or fund selected short courses.

You can grow your employee education benefit as your budget increases.

How does REGENT Business School support employer-funded learning and workforce development?

REGENT offers flexible learning and corporate education solutions.

Businesses can use these options to support employee upskilling, skills development, and learning and development.

This can help organisations build stronger teams while preparing employees for future opportunities.

Invest in corporate training with REGENT

Your employees are an important part of your business. Investing in their education can help them build better careers while giving your organisation the skills it needs to grow.

It can also show employees that you’re willing to invest in their future. This makes education a valuable part of an employee retention strategy in South Africa.

Whether you want to improve skills, prepare future leaders, or strengthen staff retention, REGENT can support your workforce development needs. Explore REGENT Business School’s corporate training solutions here.