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By Theresa Bontempo
Higher education institutions are facing an increasingly challenging budget environment. Several factors have affected their operations, including the reduction in government funding, the rise in inflation, and the tight labor market. The combination of these has resulted in a significant increase in the cost of benefits and salaries. Furthermore, the backlogs of deferred maintenance and construction projects are growing.
Despite the various factors that have affected the operations of higher education institutions, leaders still do not know where to start when it comes to addressing the cost-effective management of their programs and projects. According to the EAB, it is important that leaders lead by example and implement effective cost containment measures. Even if the work is being carried out simultaneously, acknowledging that the changes are being made to improve the efficiency of the administrative units is a key component of the strategy.
One of the most significant issues that universities face when it comes to implementing new technology and business models is the resistance they have to change. This is because they are still considered bastions of academic freedom and tradition. In order to convince faculty members and other stakeholders to adopt new technologies and business models, the leaders need to balance the interests of academic values and the practicality of the new vision.
Impact of Covid-19 Pandemic
The pandemic significantly changed the way higher education was conducted, as it forced institutions all around the world to adopt digital learning as their primary method of instruction. Before the outbreak, faculty members were initially against the use of online education, claiming that it lacked rigor. However, after they were forced to change their ways, many of them started to like the medium.
The advent of virtual education erased various reservations about the medium, revealing its capability to provide students with an accessible and flexible learning experience. Those who were previously against the idea of this method of instruction began to value its ability to allow them to balance their academic pursuits with other responsibilities.
As the world begins to move beyond the pandemic, it is becoming more apparent that online education will continue to play a significant role in the offerings of universities.
The widespread acceptance of digital learning has highlighted its ability to create an environment that is more inclusive. This indicates a significant change in the way higher education is conducted, one that encourages innovation and fosters a more resilient and adaptable future.
Increasing Costs
The rising cost of education has become a major concern for colleges and universities, as the increasing number of operational expenses outstrips the revenue growth. As a result, many institutions are struggling to meet their financial obligations. Although cost-cutting measures can help address these issues, they do not address the underlying causes of the financial problems.
The emergence of new educational content and the increasing number of students demanding higher education have prompted universities to rethink their value propositions. Traditional methods of instruction, which focus on standardized curriculums and lectures, are no longer enough to retain and attract students. Instead, universities need to develop new ways of delivering educational services that are unique to their students.
According to students, their educational investment is expected to result in better job outcomes. Unfortunately, the disconnect between the labor market's needs and the academic programs' curriculum has been a major issue for employers and graduates. To bridge this gap, universities must develop effective connections with industry.
The increasing cost of operating an academic institution and the scale of its administrative structure can lead to administrative bloat. This issue can affect the quality of education and the overall mission of the institution. Human capital is very important to any organization, and universities must ensure that they have the necessary infrastructure to support the learning experience for both students and teachers.
Disparaging Costs & Wages
Besides the president and academic advisors, other key administrative personnel such as the registrar and mental health support staff are also essential to a university's operations. Many universities are struggling with the issue of administrative bloat, which is a significant cost-related issue. The evidence shows that the costs have increased significantly over the past couple of decades.
The pace of the increase has only accelerated over the years, with the majority of expenses now being allocated for non-instructional positions. According to the National Association of Scholars, over half of all universities' payroll expenses are allocated for non-instructional positions. In fact, the rising cost of education has not helped improve the salaries of instructors, who are typically underpaid compared to administrative personnel.
The goal of the administrative structure's growth is to provide colleges with the necessary resources to meet the increasing needs of their students. However, it is also important to note that these changes are being driven by the increasing number of government regulations and the competition for students.
The consequences of a university's failure to meet the expectations of its students are severe. Although students may not have the leverage over the cost of education, they can still structure their education in various ways. Some of these include private schools, research universities, and liberal arts colleges.
To meet the competition head-on, universities must develop specialized departments and create innovative programs. This can be done through the establishment of new facilities and the recruitment of new students. Unfortunately, many smaller institutions are struggling to maintain their enrollment numbers. To ensure that they can offer the best possible education to their students, they must hire the necessary administrative personnel.
Despite the growth of the administrative structure, it is still important to note that we have gone too far in investing in these functions, which tend to be at the expense of instructional excellence and affordability.
A closer look at the issue shows that the problem isn't the hiring of the personnel itself, it's how much they're paying and how much they're willing to accommodate them. It is apparent that the salaries of administrators in public universities are significantly higher than those of similar positions in the private sector.
8 Strategies to Improve Efficiency + Cut Administrative Bloat in Higher Education
- Advancements in Technology
Digital solutions can help organizations automate and streamline their administrative tasks. They can also help reduce paper-based systems and improve the efficiency of their operations. One of the most important factors that can be considered when it comes to enhancing student self-service is the implementation of a system that enables them to manage their academic progress and access resources.
Analyzing and utilizing data analytics can help organizations identify areas of their operations that can be improved, as well as gain a better understanding of their students' progress and needs.
Machine Learning and AI can be utilized to streamline various administrative tasks, such as grading and scheduling, identifying at-risk learners, and personalizing learning experiences, leading to improved graduation rates.
- Strong Organizational Structure
Periodically review the value of various administrative functions and eliminate inefficient or redundant procedures. To standardize processes across campuses and divisions, create uniform and optimized workflows.
A strategic reorganization involves restructuring the structures and functions of an organization to attain greater efficiency and reduce redundancies. A balance between decentralization versus centralization may be ideal for certain functions. Centralization may result in cost efficiencies and consistency, while decentralization can foster innovation and responsiveness.
- Prioritize the Students
An institution's effectiveness and student outcomes can be improved by implementing a personalized learning approach. This method enables them to tailor their instruction to accommodate the unique needs of their pupils.
The optimized workflow can help organizations eliminate bottlenecks and ensure uninterrupted work flow. By analyzing and eliminating superfluous steps, companies can attain greater efficiency and reduce operating expenses. Employees can concentrate on more intricate and supplementary activities, enhancing overall output.
A robust mentorship program can help pupils develop a sense of belonging, which can increase their likelihood of succeeding. A comprehensive career service package can assist students in finding employment after they graduate, improving their satisfaction and reducing their time to degree.
- Equip Staff
The proper staffing levels are essential to drive the efficient implementation of the university's and college's cost-effective agenda. Workforce planning can help organizations identify the ideal number of employees and manage their resources efficiently.
Cross-training staff members can improve their skills and increase their flexibility, which can help avoid exclusive recruitment. Outsourcing certain functions such as finance, IT, and human resources can also help organizations focus on core activities.
- Energy-Conservation & Procurement
One of the most effective ways to improve a university's budget is by implementing energy-saving measures. These include the installation of high-efficiency lights and air conditioning units.
Implementing energy-saving programs that are designed to motivate students, faculty, and staff members to adopt sustainable practices can help lower a university's energy costs.According to financial managers, procurement functions can help reduce a university's costs by consolidating and negotiating more favorable deals with its suppliers. One of the next steps is to implement e-procurement systems, which will allow purchasing activities to be more transparent and controlled.
Aside from reducing a university's ecological footprint, adopting sustainable procurement solutions can also help lower its costs.
- Determining Cost vs. Impact
Contrary to popular belief, universities have not increased their administrative staff to support the same level of output. Instead, they have been increasing their support costs by providing additional services and programs that are outside of their core academic programs. Some of these include the establishment of new facilities and co-curricular activities.
Despite the various advantages of these initiatives, they are not always beneficial for the institution's prestige and the student experience. Most universities do not regularly track the costs of these endeavors and evaluate their impact.
- Consider more Partnership Opportunities
Institutional collaboration can foster innovation and competitiveness. Through strategic partnerships, educational institutions can collaborate to reduce costs, develop new programs, and share resources. They can also work with industrial leaders to align curricula with workforce needs. Through engagement with the community, educational institutions can expand their collaborations to include joint research and workforce development initiatives.
Before establishing a successful partnership, it's important to identify areas where the two parties can work together seamlessly. Having a clear understanding of the goals and responsibilities of the partnership is also important to ensure that the collaboration will be beneficial.
- Continuous Improvement is Key
The culture change in higher education should embrace programs that help improve the efficiency and effectiveness of institutions. By developing key performance indicators (KPIs), administrators can monitor their organizations' performance and identify areas for improvement. Data analytics can also help them direct resources toward projects that will have the greatest impact.
Annual and monthly check-ups help identify trends in the operations of the organization and provide actionable suggestions on ways to improve. These actions can also help guarantee that the institution maintains ideal financial health.
How Can Shift Bring In Better Employee Engagement?
Instead of using outdated methods such as bulletin boards, Shift utilizes digital communication to improve the efficiency of organizations and reduce paper costs. It enables real-time messaging to target specific audiences and locations, delivering relevant content in a timely manner.
Through the use of Shift, employees can easily acknowledge each other's contributions and achievements. It also allows them to participate in interactive surveys and feedback, which can help them feel valued and heard. This type of communication can help boost employee satisfaction and productivity.
Employees can keep up with their work and stay engaged even when they're not at their desks with Shift, which provides mobile access. The platform can also work with other software such as point-of-sale terminals and learning management systems, allowing them to access critical data. Image courtesy of Shift.
