What is it called when an employer covers educational costs for employees?

Tuition reimbursement refers to a program in which an employer pays for or reimburses employees for some or all of their educational expenses, such as tuition fees for college courses, training programs, or certifications. This practice encourages employees to further their education and skill set, ultimately benefiting the organization with a more knowledgeable and skilled workforce.

Employers may implement tuition reimbursement as an incentive to retain valuable employees, as it demonstrates a commitment to their professional growth. Additionally, many organizations find that employees who are supported in their educational endeavors tend to be more engaged and productive in their roles.

In contrast, a scholarship program typically refers to financial aid provided by educational institutions or organizations to help students pay for their education, without the element of employer involvement. An educational stipend, on the other hand, is a fixed sum of money given to employees for educational purposes and may not necessarily cover tuition costs. Lastly, an employee development grant is generally aimed at funding broader development opportunities and may not specifically target educational reimbursements.