McKinsey Enterprises Education Reimbursement Policy
Objective
McKinsey Enterprises believes that education plays a significant role in the contribution of an employee to the company and the employee's individual growth. Therefore, McKinsey Enterprises supports education efforts by providing reimbursements or any expenses associated with further education (Manchester, 2012) . The objective of the educational reimbursement program is to promote professionalism and support employees in increasing efficiency in their current positions by preparing them for possible advancement or increasing their adaptability to change and new ideas (Manchester, 2012) . Employees are urged by the organization to work to their full potential by taking advantage of this program to improve their knowledge and skills (Jones, 2019) .
Educational Compensation Policy for Non-Advanced Degrees
This plan will strive to pay 80 percent of educational and other related or mandatory expenses that are required for enrolment under the following provisions:
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$5,250 annually of all formal schooling.
The successful accomplishment of the course is required for employees to be eligible for education compensation.
Professional development and learning certifications will be compensated up to 90 percent at the volition of the committee.
Education Compensation Policy for Non-Advanced Degrees
The program will strive to pay 80 percent of educational and other related or mandatory expenses that are required for enrolment under the following provisions:
$7,500 for each calendar year for advanced degree programs (beyond the bachelor's degree or its equivalents such as masters and doctorate degree programs).
General Eligibility Guidelines
Should be a regular and full-time employee.
Should have at least two years of full-time employment.
Should meet the performance requirements of their current position.
Should not have any disciplinary actions taken against them with the company within the past 18 months of employment. The measures include warning letters or suspensions.
Must present an personal development plan which will be evaluated by the committee with the appreciation that the educational venture is part of the employee's development goal for their respective position.
There must be a clear disposition between the employee's educational objectives, the organization's strategic business needs, the employee's performance objectives, and the personal development plan.
Must apply for courses from an accredited and agreed list of schools by the organization.
Must apply for and be pre-approved before being enrolled in any course or any educational program.
Limits of Educational Compensation
Expenses that are excluded from this policy: computer costs, parking permits, equipment, textbooks, student ID cards, internet connection, travel, and any other miscellaneous expenses.
The organization expects that the time required for completing the employee's coursework will be limited to their persona time off, unpaid leaves of absence, or vacation.
McKinsey Enterprises reserves the right to limit time off.
Ineligible courses are not eligible for reimbursement under this policy. The following are also considered ineligible courses."
Recreation time courses such as dancing, gold, and sewing not unless they are part of the curriculum.
Preparation courses that are required to prepare for an exam to attend graduate school.
Optional fees charges as a result of the institution providing services that are not related to the enrolment and completion of a course.
Thesis Research
Employees tuition assessment and required fees while conducting thesis research after the completion of their coursework will be reimbursed based on the following provisions:
Half of the eligible costs and required fees associated with conducting the thesis research will be reimbursed after the completion of the course. The remainder will not be reimbursed until the employee has submitted the thesis, approved by the university, and assigned a grade.
Reimbursement will be based on the assistance provisions with effect from the date the employee was assigned a grade or approved by the university.
Taxability of Educational Compensation Benefits
Taxable and non-taxable reimbursement will be processed through payroll under the following provisions:
Limitations based on internal revenue codes
Reimbursements of up to $5,000 per calendar year per employee are considered non-taxable income (Jones, 2019) .
Reimbursements that exceed $5,000 per calendar year per employee are taxable and may be included in the employee's W-2 form as gross income (Jones, 2019) .
Travel expenses are taxable under this policy unless they qualify as a business expense deduction.
Compensation Process
Upon successful and satisfactory completion of a course, an employee may request for the reimbursement of eligible fees and expenses through the McKinsey Enterprises online services porta l. Eligible fees and expenses will be reimbursed up to the maximum, as specified above. To obtain reimbursement, the following items must be provided:
Invoices and receipts of payments for the course.
Course completion form issued by the institution.
A copy of the grades or certificate in order to have the request processed and reimbursed.
The items will be submitted to the Corporate Director for Human Resources for review.
Other provisions for the reimbursement process include:
For reimbursement to be processed, all applications must be obtained within 60 days of completing the course.
All reimbursements will be issued through payroll.
All requests must be accompanied by appropriate documentation, as stated on the compensation request form.
Please allow up to thirty days for the processing of reimbursements.
Termination of Employment
Employees whose contracts with the organization are terminated due to job eliminations or reduction in human labor, or those incapable of completing the course due to unanticipated business grounds will be reimbursed 100 percent of qualified expenditures incurred up to the date of separation (Manchester, 2012) . Any employees that choose to terminate their contract before completing the courses are not eligible for reimbursement.
Employees who agree to educational compensation, commit themselves to routine full-time employment for four years after the completion of their advanced and non-advanced degree courses. If an employee wishes to terminate employment voluntarily, the employee agrees to pay McKinsey Enterprises the total amount of fees and taxes, if any, disbursed for their courses (Manchester, 2012) . McKinsey Enterprises will not require repayment if the cessation is due to layoffs, death, long-term disability, or unintentional termination.
If an employee is unable to repay McKinsey Enterprises any amounts as specified above before or on the last day of work, they will be subtracted from their concluding paycheck or any other amounts payable to the employee upon or following the expiry of employment including but not limited to leave days, incentives, bonuses or reimbursement awards and will warrant such a deduction. Employees recognize that any monies owed to McKinsey Enterprises after the deductions reference above must be paid to McKinsey Enterprises.
NB: Any decisions associated with this policy are exercised at the absolute and sole discretion of McKinsey Enterprises.
Ethical Considerations
The ethical implications of this policy are that it benefits some employees and not others. The provisions of this plan only favor full-time employees for educational advancements and not temporary or intermittent employees (Landes, 2012) . This not policy is also not applicable to employees with disabilities, injuries, family, or medical leave of absence. The provisions of this plan only apply to employees who can provide the organization with maximum benefits in achieving the organization's strategic business objectives.
References
Jones, K. (2019). The Most Desirable Employee Benefits . Harvard Business Review. Retrieved 23 August 2020, from https://hbr.org/2017/02/the-most-desirable-employee-benefits.
Landes, H. (2012). Tuition Reimbursement: A Benefit for Some Employees and Employers . Forbes. Retrieved 23 August 2020, from https://www.forbes.com/sites/moneybuilder/2012/07/20/tuition-reimbursement-a-benefit-for-some-employees-and-employers/#23b122fa76c5.
Manchester, C. (2012). General Human Capital and Employee Mobility: How Tuition Reimbursement Increases Retention through Sorting and Participation. ILR Review , 65 (4), 951-974. https://doi.org/10.1177/001979391206500408
