If you’re wondering how to attract better talent and how to improve the performance of the workers you already have, consider contributing to employees’ education. Human resources consultant Nancye Combs told MDM in Preparing for Uncertainty in 2008 that tuition reimbursement is a standard practice among employers, so employers who don’t offer it may be losing potential new hires to those who do.

Tuition reimbursement programs are also key to retention, Combs said, because compensation is the No. 1 reason employees leave their jobs.

Tuition reimbursement can also help current employees who may be underqualified catch up to those who have a stronger understanding of the business and can improve employee effectiveness. Commenting on a program Graybar created in partnership with Rutgers University, Graybar’s former Senior Vice President and CFO Beatty D'Alessandro said the program was designed to sharpen employees' analytical skills and introduce them to diverse perspectives on business issues.