Companies lure hourly workers with college tuition perks

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More than a dozen companies that have launched free or almost-free college programs for front-line workers in the last decade, including Walmart, Starbucks and Chipotle.

Thousands of people are now taking advantage of the benefits. Starbucks, which operates an online college program through Arizona State University, says 22,000 workers are currently enrolled in its program. Guild Education, which administers programs for Walmart, Hilton, Disney and others and offers online programs at more than 140 schools, says it worked with 130,000 students over the last year.

Others question the quality of the online programs and whether students’ degrees will be marketable or help them pursue other careers, especially since many companies limit what employees can study. Discover only fully funds 18 bachelor’s degrees at eight universities through Guild, for example. Tanner Humphreys is one of them. He started working at Walmart in 2016, bouncing around hourly jobs as he tried to accommodate his in-person class schedule at Idaho State University. But under the company’s online program, which it launched with Guild in 2018, he transferred his credits to Southern New Hampshire University and graduated in February with a bachelor’s degree in computer science. At 27, he now works at Walmart’s headquarters for its cybersecurity team as a salaried employee.

Carlson said companies see an average return of $2 to $3 for every dollar they put into education because it saves recruitment and retention costs. Walmart said participants leave the company at a rate four times lower than non-participants and are twice as likely to be promoted. Hall said she would like to see more companies offer that kind of flexibility, since online learning isn’t ideal for everyone.

 

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