Walmart Offers To Foot College Tuition Bills for US Employees (bloomberg.com)

Walmart will begin offering to subsidize college tuition for its 1.5 million workers in the United States, joining a growing list of companies that are helping employees pay for higher education as a perk in a tight labor market. From a report: The retailer's 1.5 million employees can now pursue associate's or bachelor's degrees in business or supply-chain management at three nonprofit schools for $1 a day, according to a statement Wednesday. Walmart will subsidize tuition, books and fees and provide support with the application and enrollment processes. As many as 68,000 employees might sign up, Walmart executives estimated. "Many of our associates don't have the opportunity to complete a degree," said Drew Holler, Walmart's U.S. vice president of people innovation, in an interview. "We felt strongly that this is something that would improve their lives and help us run a better business." The tuition program -- offered to part-time staff as well as full-timers -- is the latest move by Walmart to improve employee retention and engagement. A handful of other companies, including Starbucks and Amazon, also offer tuition support.

Comments

I had an employer do this to me

[rsilvergun]

it was basically an backhanded way to get me into a training program for the job. The way it worked they would send me to a specialized program for some skill they wanted me to have (that had no value outside of their business). If I dropped out I was on the hook for tuition. Also I had to pay out of pocket and wait for reimbursement, which wasn't paid out until 6 months after I graduated.

Fortunately I got out before they foisted it on me. The way it was structured I was basically paying for required training and then if they made enough money off me in 6 months I'd get it back. All the risk was on me. I'm not saying this is what it is, but it sure looks like it.

Re:Know what else might help?

[ShanghaiBill]

If they raise pay, much of it is taxed away by payroll taxes (SS, SSDI, unemployment tax, etc) and is taxable income for the employee. Many of Walmart's employees qualify for EITC, and higher pay will push them out of that bracket. For every dollar extra that Walmart pays, about 60 cents ends up in the employee's pocket.

Tuition assistance avoids these problems. A dollar in is a dollar out.

Re:Know what else might help?

[Archangel Michael]

The idea of a "livable wage" for jobs that require almost no skills is laughable. "Entry level" jobs are simply not career choices, and we shouldn't be looking at them that way at all.

Additionally, the real "minimum wage" is always going to be $0. Those people who want higher and higher minimum wages are supporting barriers to entry into job market. Preventing access to the job marketplace to the people who need it most.

The best way to raise wages isn't government mandates, but rather a robust economy that has full employment, which are the real way to raise wages and salaries, across the board.