While Chrysler’s new program may be the gold standard of employee education programs, tax breaks make education benefits feasible for even the smallest companies.
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In an interview with The Washington Post, Gardner said that employees at participating dealerships will be eligible to earn bachelor’s and master’s degrees at no cost.
“We’re thrilled to expand the benefit not only to all of our dealerships nationwide, but also to dealership employees’ immediate family members”, Gardner said in a statement. In May, Al Gardner, head of dealer network development at FCA US, told Fortune that turnover in dealerships showrooms alone was between 45% and 60%.
Strayer, a for-profit education giant, offers studies in subjects including business administration and criminal justice and has conferred degrees to 100,000 graduates since its founding in 1892. Fifty-seven percent of respondents had a positive impact from greater flexible compensation options, and only 6 percent said they had a negative experience from non-traditional benefits. At that time, according to the Wall Street Journal, Fiat Chrysler listed a 10 percent stake in Ferrari. General Motors Co., for example, offers to help employees of dealers gain access to higher education, but doesn’t provide full funding. Last year, people left their jobs at a rate of 39% across all positions, a 3% increase from the previous year. So far, more than 330 dealership employees are working toward their degrees. All employees who’ve worked at least a month are eligible, and they can choose to take online courses or attend class in-person on one of Strayer’s 77 campuses.
Fiat Chrysler’s program isn’t without its risks. The company began testing the program in May at 130 dealerships.
Jim Arrigo, owner of Arrigo Dodge Chrysler Jeep Ram in West Palm Beach, Fla., signed up and said the program can build morale and loyalty.
Mr. Arrigo’s sister-in-law, Katherine Watson works as an administrator at another location and completed her seventh week of classes.
Strayer Chief Executive Karl McDonnell said a portion of the curriculum will be geared toward the needs of Fiat Chrysler and the auto industry.
McDonnell said that “college affordability is a big issue in the country, and this addresses it head on”. He said courses include marketing, consumer behavior and information technology. Costs for the Degrees@Work Family plan are as much as $2,500 more per month, based on dealership size. Unlike a similar program announced a year ago by Starbucks, students will not need to advance money and seek reimbursement.
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But Chrysler’s far-reaching program seems to stand out in that it offers fully paid college tuition to all employees and their families, regardless of veteran status.
