Looking for an employee benefit that delivers a big bang for the buck? Consider tuition reimbursement. Paying for your employees' education will enhance the quality of your staff, build loyalty, promote leadership development, and reduce turnover. Here's what to consider when setting up a tuition reimbursement program:

- What you'll pay for. Will you reimburse strictly for college-level degree courses or will you also pay for personal enrichment programs and/or non-credit courses? There are a number of companies that offer half-day, day-long, and weekend seminars on a variety of subjects that may benefit your organization; will you pay for this type of course and if so, what parameters will you set? What about online classes or teleseminars? If you have an employee working toward a degree, will you pay for options that get him or her closer to that goal without actually enrolling in classes, such as skill-level testing? If the program is targeted to the employee's job, such as software or other skills training, will you also pay for mileage and other travel expenses incurred in taking the training?

- How much you'll pay. Will you reimburse all or a portion of the tuition? What about books, other supplies, or other expenses such as equipment and travel? Is there an annual cap on how much you'll pay for each employee? Consult with your accountant about the tax ramifications for both the company and the employee before making this decision. As part of this, be clear on when payments will be made and what sort of documentation you'll require.

- The employee's obligation. Is the employee required to complete the class with a certain grade level to receive reimbursement? What proof of completion must be provided? What happens if the employee fails to achieve the minimum requirements? Are employees required to stay with the company for a specific length of time after they receive the benefits or pay back the money if they leave too soon? While it is not unreasonable to want to receive the benefit of the education you pay for, employees need to know what terms they are agreeing to when they ask for reimbursement.

- Schedule flexibility. Will you structure working hours to accommodate school schedules? If so, is there a limit to how much restructuring you're willing to do?

There is no right or wrong when it comes to a tuition reimbursement policy; what's important is that your program be consistent and clearly communicated so there are no surprises on anyone's part.