Demand for employer-funded education programs is on the rise according to a new survey report from InStride, a human capital management provider of workforce education solutions. The report, which surveyed over 1,000 employed American adults, reveals a significant 80% of U.S. workers under 45 crave career advancement through employer-provided education opportunities that allow them to avoid student debt.
The 2024 Workforce Education Motivations Report delves deeper into the preferences and motivation of the modern workforce, revealing three key findings that underscore the importance of employer-funded education.
- Workers crave academic credentials without student debt. Given two choices, 72% of employees would prefer to pursue an online degree while working, with tuition fully paid by their employer versus opting to pursue an in-person degree program, paying tuition with their own funds or with student loans. This preference is strong among younger workers, challenging the belief that Gen Z favors in-person learning.
- Younger generations seek education to earn promotions. Approximately 84% of respondents under 45 are interested in employer-sponsored education benefits, with 44% citing promotions as their primary motivation.
- Interest in tuition assistance has grown over time. Interest in tuition assistance, particularly where employers cover upfront tuition costs, has increased since 2019 with the proportion of employees who said they were “significantly influenced” by this benefit growing from 25% to 38%. In this time, the percentage of employees more likely to stay with their employer due to this benefit also rose from 48% to 55%.
“Employers that invest in fully funded education programs attract promising new talent, amplify their workforce’s skills, support internal mobility, and drive higher retention rates,” says Craig Maloney, CEO of InStride. “Our survey findings reinforce the critical role of accessible, employer-funded education in today’s competitive job market.”
The report finds that U.S. workers across demographic groups are turning to employers for access to education, driven by tuition costs that have risen twice as fast as inflation over the past 40 years.
Notably, 93% of Gen Z respondents express strong interest in workforce education benefits from nationally recognized public universities. This finding challenges the narrative that Gen Z is uninterested in traditional four-year degrees, indicating that they are in fact interested when they can find a way to afford it. Additionally, the report highlights that interest in education programs is highest among underrepresented groups, younger employees, and managers, with these groups showing significantly higher interest levels than other employees.
“It’s clear that today’s workforce is eager to learn and strategic about minimizing financial burdens associated with higher education,” Maloney says. “By providing robust, fully funded education programs, employers can address these concerns and support their employees’ career aspirations.”
