Common... No. Definitely not unheard of though, a couple of my B-school classmates were being "sponsored" by their employer. Some full, some halfsies, some 10-25% partials... just depends.
Commonly, at least as I have ever seen it, a company that pays for an MBA usually requires a tiered reimbursement if the employee doesn't stay past X amount of years AFTER earning the degree. Or they use a tiered benefit to reduce the years of service requirement... It is also usually only available based on position in the company... AVP, VP, etc, but not always... (and to me defeats the purpose of this type of program).
For example a company that pays the full amount of tuition might require 5 years of service AFTER the degree... and completion of the program within 5 years of starting, since part-time MBA progams usually require 3-4 year commitments. So essentially they are locking that employee up for a 8-10 years in terms of covering the costs.
Alternatively a company could say, we'll go halves on an MBA with the employee and only require that they finish the program and a 2 or 3 year employment contract after graudation.
A 10% program may require completion, but no level of comittment after earning the degree.
One thing to consider if you want to get involved in this type of program is... 1 clearly describing what costs you will pay for (class tuition only? books? other class materials?). Discuss the requirements for pay back and any legal obligations (consult a K-law attorney and your HR attorney). Set your expecations to a normal level... if the employee is only fair to midland before the program, chances are they are not going to be a better employe after earning an MBA... Also make sure the employee KNOWS your expectations of their job performance during the program.
Lastly, understand the employees expectations after earning an MBA... (re: More money). For better or worse an MBA generally makes an employee, especially an experienced one, more valuable on the open market. If they make 50K when they start and 60K by the time they finish the program... they will likely want 100K+ after they graduate and they may be able to get it somewhere else. So even repaying you the tuition costs may not matter to them if someone else is willing to pay them bigger $$$... So if you are using your MBA tuition program as a way to attract and RETAIN talented individuals, be prepared to sort of over pay the price of the MBA and the salary after graduation... which isn't a bad deal in some circumstances if they are talented... but a pretty raw deal if they are the "fair to midland" employee...
Hope that sheds some light.
Cheers!
Last edited by AFaquir; 04/16/12 05:49 PM. Reason: terrible typist
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