Announcing a Tuition Reimbursement Program - Preparing an Informative Memo

Scenario

Your organization has decided to encourage employees to take courses by reimbursing each eligible employee a maximum of $3,500 in tuition and fees during any one calendar year. Anyone who wants to participate in the program must apply before the first class meeting; the application must be signed by the employee's immediate supervisor. The Office of Human Resources will evaluate applications. That office has application forms; it also has catalogs from nearby schools and colleges.

The only courses employees may choose are those either related to the employee's current position (or to a position in the company that the employee might hold someday) or part of a job-related degree program. Again, the degree must be one that would help the employee's current position or that would qualify him or her for a promotion or transfer in the organization.

Only tuition and fees are covered, not books or supplies. People whose applications are approved will be reimbursed when they have completed the course with a grade of C or better. An employee cannot be reimbursed until he or she submits a copy of the approved application, an official grade report, and a statement of the tuition paid. If someone is eligible for other financial aid (scholarship, veteran’s benefits), the company will pay tuition costs not covered by that aid as long as the employee does not receive more than $3,500 and as long as the total tuition reimbursement does not exceed the actual cost of tuition and fees.

Part-time employees are not eligible; full-time employees must work at the company a year before they can apply to participate in the program. Courses may be at any appropriate level (high school, college, or graduate). However, the Internal Revenue Service currently requires workers to pay tax on any reimbursement for graduate programs. Undergraduate and basic education reimbursements of $3,500 or less a year are not taxed.

Instructions

As director of human resources, prepare an informative memo to all employees explaining this new benefit.

Hints

The information in the problem is presented in a confusing order. Put related items together.

The problem stresses the limits of the policy. Without changing the provisions, present them positively.

How will having a better educated workforce help the organization? Think about the challenges the organization faces, its competitive environment, and so forth.