20 or 30 years ago, CEOs might have said that their company’s most important asset was a physical asset, like state-of-the-art equipment. Today, most CEOs are likely to say that the most strategic asset any company has is its workforce. Many companies are using tuition programs to help them to develop their employees and meet their company goals of retaining good employees and improving morale and productivity.

Companies should treat these programs as strategic tools, and not just as an element of the benefit plan. Knowledge and information are increasingly becoming the most important assets any company has. Those that offer programs like tuition reimbursement say that they are doing it to enhance retention and improve productivity. They also report using the programs to increase employee’s ability to do new work, develop workers for promotion, gain a competitive edge in recruitment, and improve employee morale. It is important for employers to identify what they want their unique program to achieve and then communicate the goals to the employee base.

Employers can make programs accessible to all levels of employees by offering a range of benefits including funding online degree programs and providing education and career advisors. Some employers worry that offering so many benefits to their employees will tempt those employees to get jobs elsewhere. Most employees, however, want to develop their skills and stay with their current employer. Providing them with information about which degrees are meaningful to the company can help to guide their choices. Most employers offer reimbursement only after an employee provides proof of successful completion of a course. Employers vary greatly on the amount of assistance they will provide.

It is also important to measure whether the program is having the desired effects. Measuring the impact of these types of programs is a challenge for many companies. But for those who do track outcomes, better retention, promotions, and job performance were two to three times higher than at places that did not offer education reimbursement.