A Changing Industry Requiring a Complete Talent View

It’s a shame that debt is the most common topic when it comes to higher education these days. But it’s understandable, considering the burden felt by people of all ages.

Student loan debt is now the second highest consumer debt category—behind only mortgage debt—and higher than both credit cards and auto loans.”4

Forbes

In this context, it’s understandable why MOOCs (massively open online courses) offered by both companies such as Coursera, Udacity, and edX, and by recognized universities, are on the rise. Minerva—which promises an Ivy League education at a fraction of the cost—is just one new option that continues to gain ground.

The latter item is a strong reminder for every HR team in higher education: Price sensitivity is more of a deciding factor than ever before. And 68 percent of business leaders of colleges and universities say it’s driving down enrollment figures.7

While the Ivy League and other prestigious schools around the world may enjoy a higher perceived value, second- and third-tier universities are feeling the effects of ballooning tuition fees.

In California, for instance, why would an applicant choose a state school over a UC when they’re more cost-comparable than ever? And in Europe, why would nonresident students choose to pay full price for any school rather than a more affordable one in their own country?

precent dis 68%
of business leaders of colleges and universities say price sensitivity is driving down enrollment figures
graduation Cap

Differentiation through staff.

While tuition discounting has helped institutions like Marlboro College boost enrollment, the situation is dire.8 The total number of institutions declined by 9 percent between 2013 and 2017, according to the National Center for Education Statistics, while Harvard Business School’s Clayton Christensen predicts that up to 50 percent of colleges and universities will be bankrupt within the next 10 to 15 years.9,10

He reminds us, though, that new educational models can’t replace everything:

"[Regarding generous donors], their connection wasn't their discipline; it wasn't even the college. It was an individual member of the faculty who had changed their lives. It's not clear that that can be disrupted."11

Clayton Christensen, Harvard Business School
Figure 1: Rise of Nontraditional Student Enrollment13
line chat T raditional Nontraditional (age 25 and older) 15,000 12,000 9,000 6,000 2010 20 1 1 2012 2013 2014 2015 2019 2024

This underscores just how critical the right staff has become in higher education. The effectiveness of instruction from faculty directly affects student satisfaction.12

Accordingly, more institutions are deploying robust cloud HR solutions to maintain a staff that properly engages student-customers. A consolidated view of all human resources data is necessary for a school to:

  1. Assess skills needed to serve a student body expecting more accessibility, mobility, and responsiveness
  2. Identify gaps for newly desired skills in online learning, more immersive onsite teaching experiences, and ways to connect the two
  3. Find criteria to replace credential-based assessments with ones centered on proficiencies valued by students and donors
  4. Discover areas of employment attrition that may be affecting the experiences of both staff and students
  1. 4 Zack Friedman, “Student Loan Debt in 2017: A $1.3 Trillion Crisis,” Forbes, February 21, 2017, forbes.com/sites/zackfriedman/2017/02/21/student-loan-debt-statistics-2017/#4682073c5dab.
  2. 5 Lexi Anderson, “27 Is the New 18: Adult Students On the Rise,” Education Commission of the States, August 3, 2016, ecs.org/27-is-the-new-18-adult-students-on-the-rise/.
  3. 6 Ibid.
  4. 7 “Price Sensitivity Is Costing Us Students, Say Business Officers,” EAB, May 23, 2017, eab.com/daily-briefing/2017/05/23/price-sensitivity-is-costing-us-students.
  5. 8 Ibid.
  6. 9 Doug Lederman, “The Culling of Higher Ed Begins,” Inside Higher Ed, July 19, 2017, insidehighered.com/news/2017/07/19/number-colleges-and-universities-drops-sharply-amid-economic-turmoil.
  7. 10 Abigail Hess, “Harvard Business School Professor: Half of American Colleges Will Be Bankrupt in 10 to 15 Years,” CNBC, November 15, 2017,
    cnbc.com/2017/11/15/hbs-professor-half-of-us-colleges-will-be-bankrupt-in-10-to-15-years.html.
  8. 11 Ibid.
  9. 12 Emily Tate, “Report on Professors’ Role in Student Success,” Inside Higher Ed, January 25, 2017, insidehighered.com/quicktakes/2017/01/25/report-professors-role-student-success.
  10. 13 Lexi Anderson, “27 Is the New 18: Adult Students On the Rise,” Education Commission of the States, August 3, 2016, ecs.org/27-is-the-new-18-adult-students-on-the-rise.
Overview : Using Cloud Technology for a More Strategic Approach Chapter 2 : Engaging Both Sides of the Classroom

Integrated Cloud Applications & Platform Services

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