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For years, workforce development leaders and higher education institutions have operated on a strong intuition: when employers actively support their employees’ education—specifically by removing financial barriers—completion rates rise. While anecdotal evidence of this success abounds, definitive data has been historically scarce.
A comprehensive study conducted by the RAND Corporation on Ivy Tech Community College’s "Achieve Your Degree" (AYD) program has finally provided the empirical evidence the industry has been waiting for. By analyzing millions of student records over a three-year period, the study confirms a direct, powerful link between employer support and credential completion. The findings offer a validated playbook for community colleges and employers seeking to solve retention challenges and close skill gaps simultaneously.
Key Takeaways
- Financial friction is the primary barrier: Switching from a reimbursement model to a tuition deferral model significantly increases employee participation.
- Short-term wins fuel long-term success: Employer support increases the probability of short-term certificate completion by up to 53%.
- Concierge support matters: Success requires more than funding; it demands on-site registration, academic advising, and wraparound support services.
- Universal effectiveness: The positive correlation between support and completion holds true across demographics, including low-income working learners.
- A validated framework: The study serves as an evidence-based "playbook" for other institutions to replicate the partnership model.
Solving the Utilization Paradox
Many organizations offer generous tuition reimbursement benefits, yet struggle with low utilization rates. The origins of Ivy Tech’s AYD program illustrate exactly why this disconnect occurs. The program began at the Evansville campus when a local employer approached the college with a dilemma: they offered tuition benefits, but their employees weren't using them.
The core issue was the reimbursement model itself. For many working adults, finding thousands of dollars upfront to pay for a semester—even with the promise of reimbursement later—is an insurmountable hurdle. The "Achieve Your Degree" program was designed to solve this specific friction point.
Ivy Tech implemented a tuition deferral model where students attend classes with zero or minimal upfront costs. The college bills the employer directly at the end of the term for any balance not covered by financial aid. By shifting the financial logistics from the student to the employer-institution partnership, Ivy Tech effectively removed the entry barrier.
"Once word got out that Ivy Tech would create this relationship... and design these pathways to enable their employees to upskill into hard-to-fill roles, then the flywheel started. We have now nearly 300 employers across the state."
Quantifying the Impact: The RAND Study Findings
The partnership with RAND and Ascendium allowed for a rigorous analysis of the program's effectiveness. Researchers examined millions of data records to control for demographics, academics, and time, isolating the impact of the AYD program on student success.
Significant Gains in Credential Completion
The study found strong positive associations between participation in the program and credential completion. Notably, the most dramatic impact was seen in shorter-term credentials. Participation in the program increased the probability of certificate completion by up to 53%. Furthermore, the data showed a double-digit increase in the likelihood of completing technical certificates and associate degrees.
This suggests that employer support is particularly effective at helping learners achieve early wins. These initial certifications often act as stackable credentials, building the learner's confidence and encouraging them to continue toward higher-level degrees.
Equity in Education
Crucially, the positive outcomes were consistent across various demographics. Even after accounting for income levels, the study found that low-income working adults benefited significantly from the program. This confirms that employer-supported education, when structured correctly, acts as a powerful engine for economic mobility, leveling the playing field for employees who might otherwise be priced out of professional development.
The "Concierge" Service Model
Financial support is the foundation, but operational support is the structure that keeps students enrolled. The AYD program treats the employer-college relationship as a high-touch partnership, often described as "concierge service."
This approach involves:
- On-site Registration: College staff visit employer sites to register students, meaning employees don't have to take time off work or travel to a campus to enroll.
- Wraparound Support: The college monitors grades and attendance, intervening early if a student falls behind.
- Academic Coaching: Students receive guidance on how to map their education to their career goals within the company.
This web of support creates a dual-accountability structure. Students are motivated to succeed not only for their own advancement but because they feel supported by both their employer and the institution.
"When I see a student that didn't have the confidence to go to college and say, 'You know what, my employer is paying for this. They're betting on me. I'm going to bet on myself.'... That fires me up every time."
Strategic value for Employers
For employers, the program has evolved beyond a simple benefit; it is a strategic workforce development tool. Different organizations leverage the partnership to solve different problems.
Retention vs. Upskilling
Some employers use the program strictly to fill skill gaps, designing custom academic pathways that lead directly to hard-to-fill roles. Others view it primarily as a retention tool. By offering access to the entire course catalog—allowing an employee to study a subject they are passionate about, even if it’s unrelated to their current job—companies generate loyalty. If an employee stays two years longer to finish a degree, the employer saves significantly on turnover costs.
Building Internal Talent Pipelines
The program also facilitates internal promotion. Employees who complete credentials are coached on how to articulate their new skills to managers, facilitating upward mobility. This turns the company into a learning organization where advancement is visible and attainable, further boosting morale and retention.
A Playbook for Community Colleges
The success of the AYD program offers a replicable framework for community colleges nationwide. It demonstrates that institutions can drive enrollment and completion rates by aligning their operations with the needs of the local workforce.
This requires a shift in perspective. Ivy Tech’s success came from integrating workforce development into the "bones" of the college—involving financial aid, business offices, and academic affairs in a unified effort to serve the employer.
"If you don't have an achieve your degree program, here's a playbook for you to consider. But also at those employer sites... if there are opportunities for employers to really designate a point person to work with community colleges to design these talent pipelines, they pay off."
Conclusion
The RAND study on Ivy Tech’s Achieve Your Degree program moves the conversation about employer-supported education from anecdote to evidence. It proves that when institutions remove financial friction and provide concierge-level support, working learners succeed at significantly higher rates.
For higher education leaders, this is a call to action to audit their own employer partnerships. Are they merely transactional, or are they integrated, frictionless pathways? For employers, the message is clear: investing in talent pipelines through tuition deferral and active partnership is not just a perk—it is a proven strategy for retention and growth.
