BENTONVILLE, Ark. _ Walmart is offering its employees a chance for a college degree without taking on student debt.
The largest U.S. employer has partnered with education benefits company Guild Education to coach employees through a college degree, starting with the application process through graduation while giving attention to work and school balance issues.
Three non-profit and accredited universities _ the University of Florida, Brandman University in California and Bellevue University in Nebraska _ have agreed to be part of the program. The universities have collaborated with Walmart to offer online classes for associate's and bachelor's degrees in business and supply chain management.
Those colleges were selected because of their track record for graduating working adults, said Rachel Carlson, CEO and co-founder of Guild.
All three schools already cater to working adults who need classes to be available on the weekends and in the evenings. In a conference call with reporters, Carlson said 300 non-profit schools were considered. The University of Florida is a top tier university. Bellevue already works with the military services and would be familiar to veterans. Brandman has been successful with Hispanic students.
"Walmart has kicked off what might be the nation's most scalable approach to creating educational opportunity for America's workforce," Carlson said.
The retailer made the announcement Wednesday to employees and shareholders. Walmart made some changes to its annual meeting this year, moving the formal business meeting to Wednesday. The company's traditional Friday celebrity-filled event for shareholders and employees from around the world to fill the Bud Walton Arena University of Arkansas is still on.
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The new benefit, which is the first tuition program offered by Walmart, could have a big impact in Texas and give the retailer a competitive advantage in hiring. Walmart is the largest employer in the state with 168,403 working at its stores, distribution centers and other facilities.
Walmart will pay all costs _ tuition, fees and books _ not covered by financial aid. Employees pay $1 a day, or $365 a year, for the five years expected for a working employee to complete a bachelor's degree. While it's a fraction of the college cost, it's a meaningful amount for hourly workers.
Full-time, part-time and salaried employees at Walmart's U.S. stores, supply chain, home office and Sam's Club can apply for the benefits. To qualify, an employee has to have been on staff at least 90 days. There are no requirements to stay with the company after graduation, Murphy said.
Walmart estimated that more than 60,000 people from its 1.4 million U.S. workforce will want take it up on its offer based on participation rates at other companies with tuition programs, including Starbucks, said Julie Murphy, executive vice president of people at Walmart U.S.
Many companies did away with their tuition reimbursement programs during the Great Recession. Companies that offer some kind of tuition help include Dallas-based AT&T and major retailers Amazon and Home Depot.
"The support that employees will receive from Guild coaches is like having a personal trainer for your education," Murphy said.
Walmart is requiring its employees to participate fully and pass their classes. No grade requirements are attached to the funding.
Murphy said she can't estimate the cost of the program because each person's situation will be unique.
"Investing in the personal and professional success of our associates is vital to Walmart's future success. We know training and learning opportunities empower associates to deliver for customers while growing and advancing in their careers," said Greg Foran, CEO of Walmart U.S.
In January, Walmart raised starting wages from $9 to $11 an hour and gave employees bonuses ranging from $200 to $1,000. This year, Walmart also expanded paid maternity to 10 weeks for full-time hourly employees and six weeks of paid parental leave. Walmart also has been building a network of 200 training academies across the U.S.
