Compensation for Achieving a Degree?

We are having an internal conversation about whether to reward folks with an increase in their salary if they obtain an educational degree.  I am interested in what others do.  Traditionally we have factored in the degree only when it results in a change in the skills someone can bring to their position in demonstrable ways that justify a higher salary.  There is some discussion about rewarding with extra compensation (still built into the salary) so that it isn't left to individual supervisors to determine/advocate for, and as a way of sending the message that we support advanced education.

 The degrees in question are most often Masters or PhD level, but can also be 4-year college or associates degree.

What does your organization do, or what are your thoughts on this?




  • 4 Comments sorted by Votes Date Added
  • We give 2.5% salary inrease for an Associate degre, 2.5 for an B. S or 5% or BS if you already have your Associate and 5% for a MS

    The employee must be employed with us for a year, the degree must be in our opinion be directly or reasonably related to an emloyees present job or in line with a position that we believe that the employee can reasonably achieve.Courses must be taken on non work time and must be pre-approved by HR


  • We don't increase comp for degrees.  With that being said, I am in the IT industry and certifications related to particular technologies are more important to us and we have rewarded some with higher salaries for achieving specific certifications.

    You have to consider if there is something the business is going to gain from the person achieving the degree.  You also have to look at the market.  If this person is in a position that would make more money for the experience level and degree level they now have, then you want to be competitive so the person does not leave.  I am of the opinion that you take this into consideration during performance review time (the degree, what the business will gain from the person obtaining the degree, the performance level of the person, and the rates in the job market) to see what sort of increase is warranted at this time.

  • Iplemon, how do you describe the type of degree-granting institution for which the salary increase is eligible?  (e.g. "accredited")  Do you differentiate between brick and mortar institutions and online degree-granting institutions?



  • lplemon,

    Do you also pay for the schooling or just the increase after obtaining the degree? What if there is no change in performance or output in the employee?


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