Findings lead Cigna to increase assistance for workers in high-demand fields

INDIANAPOLIS (April 25, 2016)—Investing in college tuition as an employee benefit helps companies attract and retain top talent, but a new study of Cigna Corporation (NYSE: CI) shows there’s another compelling reason for employers to embrace the benefit: it improves the bottom line.

An analysis of health insurer Cigna’s Education Reimbursement Program (ERP) shows every dollar the company puts into the program is returned and generates an additional $1.29 in savings—a 129 percent return on investment. Lumina Foundation, a national foundation focused on increasing postsecondary attainment partnered with Cigna to design the study, which was conducted by Accenture, a leading global professional services company.

Investing in employees’ tuition isn’t benefit cost but rather valuable investment that positively impacts orgs’ bottom line @jamiemerisotis
Investing in employees’ tuition isn’t benefit cost but rather valuable investment that positively impacts orgs’ bottom line @jamiemerisotis

“We’ve long known that when companies support their employees’ pursuit of a postsecondary education, it improves employees’ lives and addresses our nation’s overall need to increase talent in our workforce,” said Jamie Merisotis, president and CEO of Lumina Foundation. “With the release of this study, we also can further demonstrate that investing in employees’ tuition isn’t a benefit cost, but rather a valuable investment that positively impacts organizations’ bottom line. That should entice more C-suite leaders to embrace this approach.”

The study of Cigna’s ERP offers a rare glimpse at the financial impact of tuition assistance programs. About 60 percent of employers offer such support—investing an average of 10 percent of their learning and development budgets on tuition assistance—but only two to five percent of organizations evaluate the return of these investments. Cigna’s study examined differences in rates of promotions, transfers, and retention between employees who took advantage of ERP and employees who did not participate from 2012 to 2014, isolating factors such as employee tenure that could impact findings.

The study shows that Cigna’s ERP program increases career opportunity and employee retention, which drives financial payback. Program participants are 10 percent more likely to be promoted, 7.5 percent more likely to be transferred within Cigna, and eight percent more likely to stay at the company, reducing across-the-board talent management and recruiting costs.

Attracting and retaining talent is essential to our success as a company, and to advance those goals, we’ve made tuition reimbursement a priority.

Cigna’s Chief Learning Officer Karen Kocher

“Attracting and retaining talent is essential to our success as a company, and to advance those goals, we’ve made tuition reimbursement a priority,” said Karen Kocher, Cigna’s chief learning officer. “Knowing that tuition assistance also reaps a financial return—and quantifying that return on investment—has affirmed our belief in the program and prompted us to make changes that will make it even more impactful.”

In response to these positive results, Cigna’s leadership increased the maximum amount of tuition assistance the company offers workers in high-demand fields, from $5,250 for undergraduate courses or certificates and $8,000 for graduate courses each year, to maximum offerings of $10,000 and $12,000, respectively. The company also added advisory services to help students better navigate their higher education options and career pathways and mentoring to help ensure students’ completion. Finally, Cigna is working with its education partners to accept payment after each semester ends, so employees can avoid significant out-of-pocket costs. Cigna plans to assess the program’s return following these enhancements and expects to see an even greater payback.

The evidence of tuition reimbursement’s financial impact comes at a critical time in the movement to grow postsecondary attainment. By 2020, two-thirds of all jobs in the U.S. will require some form of higher education, but today only about 45 percent of Americans have at least a two-year degree or other postsecondary credential. Employer investment in employees’ tuition can play a powerful role in increasing the number of Americans with education beyond high school and thereby help close the gap.

For the U.S. to remain a leader in the knowledge economy, all providers of education beyond high school, especially employers, must help ensure more Americans earn postsecondary credentials.

Business Roundtable President John Engler

“For the U.S. to remain a leader in the knowledge economy, all providers of education beyond high school, especially employers, must help ensure more Americans earn postsecondary credentials,” said John Engler, president of the Business Roundtable. “Employers can make an outsized impact through providing tuition support. Cigna’s investments are proof that not only is it the right thing to do, but it is also a smart business decision. Additionally, as our workers learn and acquire skills on the job, we must be better able to document those competencies so individuals are both encouraged to be life-long learners and are able to increase their value and their take home pay.”

Lumina Foundation hopes to encourage more companies to support employees’ postsecondary education and training by illuminating the bottom-line benefits. The Foundation has supported a handful of other studies showing the financial impact of tuition assistance programs. Those results will be released in coming months.

About Lumina Foundation:
Lumina Foundation is an independent, private foundation in Indianapolis that is committed to making opportunities for learning beyond high school available to all. We envision a system that is easy to navigate, delivers fair results, and meets the nation’s need for talent through a broad range of credentials. Our goal is to prepare people for informed citizenship and for success in a global economy.

About Cigna Corporation: Cigna Corporation (NYSE: CI) is a global health service company dedicated to helping people improve their health, well-being and sense of security. All products and services are provided exclusively by or through operating subsidiaries of Cigna Corporation, including Connecticut General Life Insurance Company, Cigna Health and Life Insurance Company, Life Insurance Company of North America and Cigna Life Insurance Company of New York. Such products and services include an integrated suite of health services, such as medical, dental, behavioral health, pharmacy, vision, supplemental benefits, and other related products including group life, accident and disability insurance. Cigna maintains sales capability in 30 countries and jurisdictions, and has more than 89 million customer relationships throughout the world. To learn more about Cigna, including links to follow us on Facebook or Twitter, visit

About Accenture: Accenture is a leading global professional services company, providing a broad range of services and solutions in strategy, consulting, digital, technology and operations. Combining unmatched experience and specialized skills across more than 40 industries and all business functions—underpinned by the world’s largest delivery network—Accenture works at the intersection of business and technology to help clients improve their performance and create sustainable value for their stakeholders.  With approximately 373,000 people serving clients in more than 120 countries, Accenture drives innovation to improve the way the world works and lives. Visit us at

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