Ask Your Boss About This Idea

With tuition fees soaring, benefits experts predict that the RJR Nabisco initiative could spur other companies to think about instituting similar plans. “This is the leading edge, " says Denise Georgemiller, a benefits consultant with Hewitt Associates in Lincolnshire, Ill. Of course, the recession could derail even the best-intentioned employer. RJR Nabisco hasn’t estimated the total bill, but company officials say they expect the matched-savings plan and loan subsidies to cost between $5 million and $6 million annually-assuming that up to 7,000 children of employees will take part in the savings plan and 4,000 will want loans. For a company like RJR Nabisco, with $13 billion in gross annual sales, that’s a relatively small investment. But smaller firms, worried about paying for even basic health benefits, may have to wait until the economy gets better, Georgemiller says.

RJR Nabisco’s tuition-assistance plan is one of the most dramatic examples of the increasing corporate involvement in education. According to a study last November by benefits consultants Towers Perrin and the National Association of Manufacturers, a fifth of 360 companies surveyed participate in an employer consortium interested in improving schools. Altruism isn’t the sole motive; Georgemiller says that family-friendly benefits add up to greater worker loyalty and productivity-and that’s all good for the bottom line.

title: “Ask Your Boss About This Idea” ShowToc: true date: “2022-12-31” author: “Scott Kinney”

With tuition fees soaring, benefits experts predict that the RJR Nabisco initiative could spur other companies to think about instituting similar plans. “This is the leading edge, " says Denise Georgemiller, a benefits consultant with Hewitt Associates in Lincolnshire, Ill. Of course, the recession could derail even the best-intentioned employer. RJR Nabisco hasn’t estimated the total bill, but company officials say they expect the matched-savings plan and loan subsidies to cost between $5 million and $6 million annually-assuming that up to 7,000 children of employees will take part in the savings plan and 4,000 will want loans. For a company like RJR Nabisco, with $13 billion in gross annual sales, that’s a relatively small investment. But smaller firms, worried about paying for even basic health benefits, may have to wait until the economy gets better, Georgemiller says.

RJR Nabisco’s tuition-assistance plan is one of the most dramatic examples of the increasing corporate involvement in education. According to a study last November by benefits consultants Towers Perrin and the National Association of Manufacturers, a fifth of 360 companies surveyed participate in an employer consortium interested in improving schools. Altruism isn’t the sole motive; Georgemiller says that family-friendly benefits add up to greater worker loyalty and productivity-and that’s all good for the bottom line.