April 2015
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Stipends, Reimbursements, and Training Budgets

Wednesday, April 15, 2015

To remain competitive in a global economy, workers must be highly skilled. But, at small- and medium-sized companies, sometimes the resources for sophisticated training programs simply don’t exist. But this doesn't necessarily mean training must be put on the back burner. According to a new study, employees who were paid a small education stipend up front and asked to commit to two classes ended up taking  more courses than workers who received no incentives. The key here wasn't the dollar amount offered, but how it was explained to employees. As part of the study, one group was offered a one-time cash reimbursement of $60 for attending two classes within four months. Then, researchers asked employees to sign an agreement to show up for additional sessions. The second group was told the $60 payment was a reward, not a reimbursement, and the group was not required to commit to anything else. The results, according to the study, were “remarkable.” Over nine and a half months, during which time no additional payments were offered, employees who were told the $60 was a reimbursement finished six times more training courses than the other group.

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