CVS Health‘s Prescription For A Win-Win Tuition Assistance Program
While tuition assistance programs are common among large companies, only 2% of employees take advantage of the benefit. A collaboration between CVS health and EdAssist is changing that with an innovative program that lets employees earn college degrees – and at no cost.
The goal? To help CVS Health’s employees take the next step in their personal and career journeys,while also helping the company fill hard-to-staff roles.
The Problem With Existing Tuition Reimbursement Programs
Why do so few employees take advantage of tuition reimbursement programs? It’s a question I asked Diane Bartoli, SVP of EdAssist, a division of Luminous Horizons that’s a leading provider of workforce education and student loan solutions in a video interview.
Bartoli believes that a key barrier for most employees is that typical programs are designed so employees must pay for and complete courses before they are reimbursed. “Many employees, especially front-line workers, can’t always readily afford to cover the cost upfront.”
A second barrier is that the amount of the benefit is often less than the actual costs. A review of 25 tuition benefit programs from well-known companies shows that typical tuition reimbursement programs are often capped at $5,250 per year per employee.what’s the magic number of $5,250? “It’s the limit the IRS allows companies to pay tax-free to its employees,” shared Bartoli.
CVS Health’s Prescription For A Win-Win Tuition Assistance Program
Carmilla tan, head of benefits at CVS Health, recently shared with me how the company collaborated with EdAssist to reimagine its tuition assistance program from a customary tuition reimbursement program to an innovative one that allows employees to access over 80 programs at no cost, ranging from high school diplomas to graduate degrees.
Tan explained the program’s four key attributes that make it easy for employees to begin their upskilling efforts. First, the program eliminates the need for employees to enroll and pay for their courses upfront. Rather, employees simply enroll in any courses from four pre-approved universities and the cost is covered.Second, there is no limit to the number of courses employees can take. So, employees who want to fast-track their education don’t have to hold back on the number of courses they take, because they don’t have enough tuition assistance money to cover the costs.
Third,many of the course options allow for both traditional courses and self-paced online courses,which gives employees flexibility to fit the courses they take into## CVS Health Invests in Employees Through Robust Tuition Assistance Programs
CVS Health is demonstrating a commitment to employee advancement and addressing critical skills gaps through thorough tuition assistance programs,creating benefits for both its workforce and the company itself. These programs, managed in partnership with EdAssist, are proving more effective than typical tuition reimbursement offerings.
The CVS Health tuition assistance program has been a catalyst for career advancement, as exemplified by employee Cece, who has been promoted twice since participating and now serves as a senior manager supporting patient safety within the company’s Medicare star Data projects.
“The program is helping us upskill our current employees and fill critical skills gaps,” explained a CVS Health representative. “For example, Cece has stepped into a high-demand, advanced data analytics role thanks to the opportunities provided.”
A especially pressing need driving CVS Health’s investment is a important decline in pharmacy school applications. According to a recent CVS Health report, applications have decreased by approximately 60% over the last decade. To combat this, CVS Health launched a specialized tuition assistance program for its pharmacy interns.
This PharmD tuition assistance program provides up to $20,000 per year for the final two years of pharmacy school for eligible retail pharmacy interns. The initiative aims to ensure a steady pipeline of qualified pharmacists to support the diverse operations of CVS Health and Caremark. The program’s success has been widely recognized, with pharmacy school deans expressing gratitude for its role in removing financial barriers to education and broadening access for students.
CVS Health’s investment in employee education is yielding impressive results.While the national average for employee participation in tuition assistance programs is around 2%, CVS Health boasts a participation rate of 4% – double the typical rate. Beyond the quantifiable benefits,the company highlights the positive impact on employee morale,with engaged employees like Cece inspiring colleagues to pursue upskilling opportunities.
### The Bottom Line
Tuition assistance programs, like the partnership between CVS Health and EdAssist, are a valuable tool for companies seeking to empower their workforce and address evolving skills needs. The CVS Health model demonstrates a mutually beneficial approach,delivering positive outcomes for both the company and its employees.