NEW YORK — Starbucks says it will now cover four years of tuition reimbursement for workers to earn an online undergraduate degree from Arizona State University, instead of just two years. Last week, McDonald’s Corp. also announced it was expanding a college tuition assistance program to workers at all its U.S. stores.
The moves mark the latest sign that companies are rethinking pay and benefits as they seek to attract the best workers and improve their corporate images. The programs come with limitations, of course.
At McDonald’s, for instance, the coverage is only expected to be enough for about two classes a year. And at Starbucks, the tuition help isn’t available for workers who want to attend classes in person.
The benefits of an online education compared with an in-person education have been debated for years, notes Jamie Merisotis, president and CEO of the Lumina Foundation, which works to increase access to postsecondary education and helped Starbucks develop its program. But he noted that online programs have improved in quality, and they’re a practical way for workers to earn degrees.
Here’s how the tuition benefits at Starbucks and McDonald’s work:
Starbucks
THE OFFER: Reimbursement for tuition to earn an online undergraduate degree from Arizona State University. The amount a worker pays upfront would vary depending on his or her financial situation.
