Updated October 2026

As workforce demands evolve and budgets tighten, one question keeps rising to the top for HR leaders: how do you get the most value out of your education benefits investment?

For decades, the answer was straightforward. Degrees offered clear pathways to higher pay and leadership roles, and tuition assistance meant supporting employees on that path. But the landscape has shifted. The proliferation of micro-credentials, certifications, and online learning has given employers more options, and the urgency to close skill gaps quickly has made those options more attractive.

The real question isn't whether degree or non-degree programs deliver better ROI. It's how to align both with your workforce strategy so that education benefits drive actual career movement, not just program completion.

What does the ROI on education benefits actually look like?

For HR leaders, the ROI of education benefits goes well beyond the cost of tuition assistance or student loan repayment. It shows up in measurable workforce outcomes:

• Lower turnover rates that reduce the cost and disruption of constant rehiring
• Stronger internal mobility pipelines that allow you to promote from within
• Increased employee engagement that drives higher productivity and morale
• A competitive edge in talent acquisition that signals to candidates your organization invests in their growth

Here at EdAssist® by Bright Horizons®, our 2026 Education Index found data that reflects this: 79% would choose a job at a company that invests in continuing education over one that does not, and 77% would prefer to stay with their current employer if clear internal advancement opportunities existed.

But the same research reveals a gap in a willingness to learn and a knowledge of where to start.

While 83% of employees are motivated to learn new skills, 47% don't know where to begin. And employees with actively involved managers advance after completing training at 43%, compared to just 28% without that support. Education benefits deliver ROI only when learning connects to clear career pathways. Without that connection, you're investing in programs that don't translate into the workforce outcomes you need.

Why non-degree programs are growing and what's driving the shift

Non-degree programs have seen significant growth over the past several years, and the reasons go beyond cost.

The World Economic Forum's 2025 Future of Jobs Report found that 63% of employers identify skill gaps as the single biggest barrier to business transformation, and 85% plan to prioritize upskilling their workforce over the next five years.

AI is accelerating this urgency. As roles evolve faster than traditional degree timelines can keep pace with, employers need ways to close gaps quickly and precisely.

Non-degree programs meet that need. Certifications, stackable credentials, and targeted coursework can be completed in weeks or months rather than years. They can be aligned to specific roles and competencies, and they offer a flexible path for employees who are balancing work, family, and education simultaneously.

Cost is also a factor. Average in-state tuition at public four-year institutions has reached up to $11,950 per year, and the total cost of attendance at private nonprofit institutions now averages $45,000 annually.

Our 2026 Education Index found that 53% of employees said knowing they would incur student loan debt has prevented them from pursuing additional education. Non-degree programs offer a lower-cost, lower-risk entry point that can still deliver meaningful career advancement.

Among EdAssist clients from 2022 to 2024, non-degree participation increased 36% while degree participation grew 17%. But degree spend remains on average 1.8 times higher per person than non-degree learning. Both are growing. The question is how to use each strategically.

Why degrees still matter for long-term workforce development

The growth of non-degree programs doesn't diminish the value of degrees. It changes how they fit into the picture.

Degrees remain essential for building leadership pipelines, supporting succession planning, and developing deep expertise in fields that require professional licensure or advanced credentials. Nursing, engineering, finance, education, and many other fields still require formal degrees, and employees pursuing these paths represent some of your highest-potential long-term investments.

Degrees also correlate with long-term earnings growth and career mobility in ways that shorter credentials don't always replicate. For employees looking to make a significant career pivot or move into senior leadership, a degree provides both the depth of knowledge and the credential recognition that opens doors.

The key is being strategic about where you offer degree support. Providing no-cost degree pathways for critical or hard-to-fill roles, for example, can be a powerful retention and pipeline strategy. CVS Health and Synchrony are both building education programs that align degree pathways with specific career tracks, connecting what employees learn to the roles those credentials qualify them for.

How to decide when to offer degree vs. non-degree programs

Not every role or business need calls for the same type of education investment. Here's a practical framework for deciding where each delivers the most value.

Use degree programs for long-term leadership and specialized roles

Degrees are the right investment when you're building a leadership pipeline or succession plan, developing talent for roles that require professional licensure or advanced credentials, or investing in high-potential employees for long-term growth. These are strategic, longer-horizon investments that pay off over years.

Use non-degree programs for fast upskilling and targeted skill gaps

Non-degree programs are the right fit when you need to quickly close skill gaps in areas like technology, operations, or compliance. They work well when specific certifications are required for a role (Six Sigma, PMP, cybersecurity), when budgets are tight but you still want to offer meaningful development, or when you want to support career mobility without requiring full degree completion.

Align your education strategy with your business priorities

Every organization has different needs. The right mix of degree and non-degree offerings depends on your answers to a few key questions:

• What are your most critical roles today and in the next three to five years?
• Where are you seeing talent shortages or high turnover?
• Which skills are needed to support innovation, growth, or compliance?
• What's your budget and timeline for workforce development?
• Where are internal mobility pipelines stalling, and what type of learning would unblock them?

For many organizations, the strongest ROI comes from a combination of both, balancing long-term degree investments with the speed and agility of non-degree programs.

How to connect education benefits to career pathways for stronger ROI

The biggest risk to education benefits ROI isn't choosing the wrong program type. It's investing in programs that don't connect to career movement.

The 2026 Education Index describes this as the mobility cliff. Employees complete training and develop new skills, but that learning never translates into advancement because there's no clear pathway connecting it to open roles. When that happens, education benefits become a cost center rather than a strategic investment.

To maximize ROI, organizations need to:

• Map education programs to defined career pathways so employees can see how a credential or degree connects to their next role
• Equip managers to refer employees to the right programs rather than expecting them to serve as career coaches
• Communicate education benefits consistently across the organization, not just during onboarding or at program launch
• Use stackable credentials as building blocks that can accumulate toward larger goals, giving employees incremental progress and giving the organization faster returns
• Track outcomes beyond completion rates including internal mobility, time-to-fill for critical roles, and engagement among participants

Build a strategic education benefits program with EdAssist

Whether you start with degree programs, non-degree programs, or both, EdAssist helps you connect education benefits to real workforce outcomes. Through a network of 200-plus colleges, universities, and non-degree providers, EdAssist helps organizations align learning opportunities with business priorities while maximizing tuition dollars through reduced-cost options.

EdAssist also provides personalized coaching to guide employees based on their goals, taking the career development burden off managers and HR while ensuring that education investments translate into internal mobility and retention.

Schedule a call to discover how EdAssist can help you build the right mix of degree and non-degree programs for your workforce strategy.