Employer Sponsorship

Employer sponsorship is when a company pays for part or all of an employee's MBA. This kind of arrangement has to be setup between a company and its employees. While this may seem far fetched, it is actually more common than you may think.

Why would a company pay for an employee's MBA? Such a gesture encourages loyalty and makes for a more enticing benefits package. MBA students commonly work on projects for their own company during their program. Not to mention, when the program is finished, the employee is better trained in business and management.

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I know several people who had their employer pay for their MBA. Some were from large companies but others where from small companies. One small company I worked for paid for a co-worker's MBA so they could move him up in the company. This same company paid for some of my undergraduate degree.

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Methods of Employer Sponsorship:

• The first method is inclusion into the benefits package. Many companies (especially large ones) have a standing policy that employees can have tuition reimbursed for education applicable to their job. The amount that is reimbursable varies among companies (and possibly among types of employees).

• The second method is on a case-by-case basis for employees. Whether it involves promising employees that the company wants to promote or executives that are in high-level management positions, companies commonly pay for employee MBA programs. Executive MBA programs are almost always paid for by the employer.

While employer sponsorship may not be available to everyone, it is still a viable funding option. When a company pays for an employee's MBA, it is highly unlikely that the employee can enroll in a full-time program. Therefore, the MBA program choices may be limited to a part-time or executive programs in the local area.

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