Tag: sustainable

  • Embracing Workforce Diversity in Higher Education for a Sustainable Future

    Embracing Workforce Diversity in Higher Education for a Sustainable Future

    • Professor Antony C. Moss is Pro Vice Chancellor Education and Student Experience at London South Bank University.

    The recent announcement from Universities UK that it will be setting up a taskforce to look at efficiency and transformation across the higher education sector is very welcome, if not long overdue. As our sector faces existential challenges regarding financial sustainability, it is absolutely right that we look more critically at the way we organise ourselves and run our institutions. This means more than looking at shared professional service models, moving IT systems into the cloud, or diversifying income streams. The argument I want to develop here is that we desperately need a more diverse workforce to support a higher education sector which serves a far broader purpose for society than it did when our current workforce model was first established.

    The Uneven Growth of the Higher Education Sector

    It is a fascinating exercise to visualise the growth of the UK higher education sector over time. Robbins reported the total number of full-time UK students in 1960 was just short of 200,000. Fast forward to the latest data available via the Higher Education Statistics Agency, and in 2022/23, that number has grown to almost three million. While that 1960 figure does not include student numbers enrolled in the polytechnics of the day (which of course mostly became universities in 1992, stimulating a sudden burst of growth in student numbers), this remains an extraordinary expansion by any standard.

    As a sector, we have weathered much criticism in recent years regarding the extent to which we are recruiting too many students. While this might be a tempting conclusion given the figures cited above, it is worth keeping in mind that the needs of our labour market have also changed dramatically since 1960. For example, in 2021/22, over 160,000 of the 2.25 million students in higher education that year were studying towards a nursing qualification. In other words, the nursing student population of 21/22 equates to more than three-quarters of the entire full-time UK university student population in 1960. We all benefit from advancements in modern medicine, but this requires us to invest in a workforce with an ever-increasing level of technical knowledge and skill. This same argument could be made for the workforce in many other sectors of our economy, and so we should continue to expect expansion and diversification of our education sector to support the types of jobs and skillsets required for the future.

    While we might debate and reflect on the number of students entering higher education, it is less common to hear debates and discussions on the size of the workforce who are the backbone of our own sector. While I have been unable to locate accurate workforce data as far back as 1960, the Higher Education Statistics Agency have published data from 2005/6. At that time, UK higher education providers employed a total of 355,410 staff, of which 164,875 were in academic roles. Moving ahead to 2022/23, we now employ 480,845 staff, of whom 240,420 are in academic roles. In itself, this is a significant workforce expansion – a total increase in staffing of over a third, and a 50% increase in academic staff numbers over a 17-year period. Or in more human terms, that is a net increase of 75,545 full-time equivalent academic staff.

    What is perhaps most remarkable is that this expansion of our workforce has been, at a national level, an organic process. We have no whole-sector workforce plan and no sector-wide discussion around the shape and size of the workforce we need in 5, 10, or 25 years’ time. In their 2021 review of HE sector workforce changes, Alison Wolf and Andrew Jenkins illustrated both the expansion and changing shape of the sector workforce but also demonstrated that this has been largely reactive and not driven by a clear set of principles or plans.

    The reason this all matters in the context of discussions about financial sustainability is that the expansion of the higher education sector has been uneven in terms of the growth of our different areas of activity. As illustrated in Figure 1, over the past ten years, the overwhelming majority of our income growth has been linked to teaching.

    Figure 1: Income of UK Higher Education Providers by income type and academic year (£ millions)

    From a workforce perspective, with teaching income rising sharply against relatively stable income for research, it would be reasonable to assume that the additional 75,454 academic staff noted above would be almost entirely focused on teaching. However, the best available data we have on the proportion of time spent by academics on different activities – the Transparent Approach to Costing (TRAC) returns published by the Office for Students – shows that there has been almost no change in the proportion of academic staff time spent on research activity. For years where there are comparable TRAC data, we can see that in 18/19, research activity accounted for 35.3% of academic activity, while in 22/23 that figure was 34.1% (and from Figure 1, we can see that teaching-related income grew over this period by over £7bn, while research income only grew by £821m). If research income to the sector had been growing at the same rate as teaching income, these figures would not be a concern – but that is very clearly not the case.

    One interpretation of these figures could simply be that this is how higher education has always operated. Tuition fees are, in part, spent on recruiting academic staff, and academics are typically recruited on contracts which include an expectation of them engaging in research and scholarly activities. Moreover, the argument goes, this is fundamental to the mission of universities, which is not solely to teach degree courses but also to generate new knowledge.

    This argument is flawed, however, due to a decade of tuition fee freezes set alongside the massive growth in student numbers, which far outstrips growth in research-related income. Our workforce model cannot simply continue growing in a linear fashion while the demands and expectations placed on the workforce are changing as significantly as they have. To provide an analogy, if the government were to announce a massive boost in research funding for universities, and the sector were to respond to this by indicating that around a third of this money would actually be spent on teaching, I would expect eyebrows to be raised across the board. But this is precisely what we have been doing, over a long period of time, in relation to teaching-related income.

    Developing a Workforce Model for the Future

    As noted above, our sector does not have a workforce plan; we have essentially grown our workforce using traditional contract types and workload models. On the other hand, the NHS Long Term Workforce Plan is an example of taking a whole-sector approach to reflect on workforce needs for a large and complex sector. Importantly, the plan proposes a significant expansion of its workforce, which will depend heavily on the capacity and ability of our further and higher education sectors to deliver. This does not simply entail the expansion of current training routes for existing professions, but the diversification of the types of qualification we offer, and continued development of curricula to ensure the skills being taught reflect long-term workforce needs.

    There are many examples of other sectors and, indeed, government departments developing workforce plans and strategies which similarly rely upon the capacity and expertise of further and higher education institutions to fulfil education and training needs. What is invariably missing from such plans is any meaningful reflection on the assumptions made about the capacity and structure of our tertiary education sector. Shortages in teachers can be addressed by funding more training, but are we confident that we have a large enough workforce of teacher-educators to meet this demand? Similarly for nurses, doctors and allied healthcare professionals and, indeed, for any other sector who may be assuming that the tertiary sector is ready and waiting to absorb a continued expansion of students to meet their own future workforce needs.

    Moving beyond subject expertise and whether we can simply recruit a large enough workforce to teach, the higher education sector has also changed beyond recognition in terms of the range of qualifications we offer. The three-year undergraduate degree remains the most common study route, but higher education providers now also offer degree apprenticeships, higher technical qualifications, and a growing number of professional and technical qualifications which are quite different to traditional university study. These differences arise due to the type of students they attract, the content of the qualifications themselves, and also the very different regulatory frameworks which underpin their delivery and monitoring.

    These changes place a very different set of needs and expectations on our workforce – both academic and professional services colleagues. Degree apprenticeship programmes require a different pedagogic approach to a traditional undergraduate degree, and come with a significant set of additional regulatory expectations. Very few academics will have ever encountered the Education and Skills Funding Agency prior to the growth of apprenticeships standards, and Ofsted was the regulator of everyone except us (outside of university education departments). These changes are not trivial, but they have happened rapidly, and without overt consideration of the way we need to support, develop and expand our own workforce.

    While 1960s higher education was, in relative terms, a fairly monolithic sector, today’s higher education sector is extraordinarily diverse and delivers massive economic and societal benefits, which are incomparable to the past. Our sector has changed, and I would strongly argue it has changed for the better. However, in the current climate of deep financial challenge, we must also reflect critically on the way we develop and diversify our own workforce. This, in my view, means stepping outside the well-trodden path of introducing so-called ‘teaching only contracts’ for academics – essentially, academic contracts where the focus is on professional practice and pedagogic leadership, which still retain a career pathway through to the highest academic ranks. Rather, we need to invest in developing a new segment of our workforce, of expert educators who are specialised in areas such as skills development and technical education. If done well, this has the potential to deliver a range of benefits:

    1. Stabilising the financial precarity of our sector. When teaching income is rising faster than research income, we need to ensure we are not disproportionately growing the cross-subsidy of research from teaching income (while recognising that some degree of cross-subsidy is part of the higher education funding model).
    2. Improving the quality of education. By developing more specialised roles within the sector, we can deliver better experiences and outcomes for students, and ensure that they are better able to succeed beyond their time in higher education.
    3. Improving working conditions for all staff. Through the creation of more specialised roles and career pathways which are better aligned to the needs of the sector as a whole.
    4. Supporting our national ambitions for Growth and Skills. As Skills England looks at our future workforce needs, it is critical that we have a stable and high-performing education sector to educate and train the workforce. We cannot continue to take for granted that our education sector can organically bend itself to meet changing industrial and economic needs, without a strategy to support the reforms which will be required.

    Universities UK and its taskforce on efficiency and transformation should, I suggest, prioritise a review of our underpinning workforce model to ensure that we are collectively fit for the future. But this work cannot happen in isolation. Our sector will be able to respond more effectively to changing demands if we work together with Skills England and the Department for Education to better understand the role that higher education can play in delivering on national ambitions for growth and skills development.

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  • Connect more: creating the conditions for a more resilient and sustainable HE sector in England

    Connect more: creating the conditions for a more resilient and sustainable HE sector in England

    Despite it being the season of cheer, higher education in England isn’t facing the merriest of Christmases.

    Notwithstanding the recent inflationary uplift to the undergraduate fee cap, the financial headwinds in higher education remain extremely challenging. Somehow, in the spring/summer of next year, the Secretary of State for Education is going to have to set out not only what the government expects from the sector in terms of meeting the core priority areas of access, quality and contribution to economic growth, but how it will deliver on its promise to put the sector on a long-term sustainable financial footing.

    The overall structure of the sector in terms of the total number of providers of higher education and their relationships to each other might arguably be considered a second-order question, subject to the specifics of the government’s plans. But thinking that way would be a mistake.

    The cusp of change

    There are real and present concerns right now about the short term financial stability of a number of providers, with the continued increased risk that a provider exits the market in an unplanned way through liquidation, making the continued absence of a regime for administering distressed providers ever more stark.

    But on a larger scale, if, as some believe, the sector is on the cusp of entering into a new phase of higher education, a much more connected and networked system, tied more closely into regional development agendas, and more oriented to the collective public value that higher education creates, then the thinking needs to start now about how to enable providers to take part in the strategic discussions and scenario plans that can help them to imagine that kind of future, and develop the skills to operate in the new ways that a different HE landscape could require. It is these discussions that need to inform the development of the HE strategy.

    The Office for Students (OfS) has signalled that it considers more structural collaboration to be likely as a response to financial challenge:

    Where necessary, providers will need to prepare for, and deliver in practice, the transformation needed to address the challenges they face. In some cases, this is likely to include looking externally for solutions to secure their financial future, including working with other organisations to reduce costs or identifying potential merger partners or other structural changes.

    Financial challenge may be the backdrop to some of this thinking; it should not be the sole rationale. Looking ahead, the sector would be planning change even if it were in good financial health: preparing for demographic shifts and the challenge of lifelong learning, the rise of AI, and the volatile context for international education and research. Strategic collaboration is rarely an end in itself – it’s nice to work together but ultimately there has to be a clear strategic rationale that two or more providers can realise greater value and hedge more readily against future risks, than each working individually.

    There’s no roadmap

    In the autumn of 2024, Wonkhe and Mills & Reeve convened a number of private and confidential conversations with heads of institution, stakeholders from the sector’s representative bodies, mission groups, and regional networks, Board chairs, and a lender to the sector. We wanted to test the sector’s appetite for structural change; in the first instance assessing providers’ appetite for stepping in to support another provider struggling, but also attitudes to merger and other forms of strategic collaboration short of full merger. Our report, Connect more: creating the conditions for a more resilient and sustainable higher education system in England sets out our full findings and recommendations.

    There is a startling dearth of law and policy around structural collaboration for HE; some issues such as the VAT rules on shared services, are well established, while others are more speculative. What would the regulatory approach be to a “federated” group of HE providers? What are merging providers’ legal responsibilities to students? What data and evidence might providers draw on to inform their planning?

    We found a very similar set of concerns, whether we were discussing a scenario in which a provider is approached by DfE or OfS to acquire another distressed provider, or the wider strategic possibilities afforded by structural collaboration.

    All felt strongly that the driving rationale behind any such structural change – which takes considerable time and effort to achieve – should be strategic, rather than purely financial. Heads of institution could readily imagine the possibilities for widening access to HE, protecting at-risk subjects; boosting research opportunities, and generally realising value through the pooling of expertise, infrastructure and procurement power. The regional devolution and regional economic growth agendas were widely considered to be valued enablers for realising the opportunities for a more networked approach.

    But the hurdles to overcome are also significant. Interviewees gave examples of failed collaboration attempts in other sectors and the negative cultural perceptions attached to measures like mergers. There was a nervousness about competition law and more specifically OfS’ attitude to structural change, the implications for key institutional performance metrics, and a general sense that no quarter would be given in accommodating a period of adjustment following significant structural change. The risks involved were very obvious and immediate, while the benefits were more speculative and would take time to realise.

    Creating conditions

    We have arrived at two broad conclusions: the first being that government and OfS, in tandem with other interested parties such as the Competition and Markets Authority could adopt a number of measures to reduce the risks for providers entering into discussions about strategic collaboration.

    This would not involve steering particular providers or taking a formal view about what forms of collaboration will best serve public policy ends, but would signal a broadly supportive and facilitative attitude on the part of government and the regulator. As one head of institution observed, a positive agenda around the sector’s collaborative activity would be much more galvanising than the continued focus on financial distress.

    The second is that institutions themselves may need to consider their approach to these challenges and think through whether they have the right mix of skills and knowledge within the executive team and on the Board to do scenario planning and strategic thinking around structural change.

    In the last decade, the goal for Boards has been all about making their institution stronger, and more competitive. While that core purpose hasn’t gone away, it could be time to temper it with a closer attention to the ways that working in a more collective way could help higher education prepare itself for whatever the future throws at it.

     

    This article is published in association with Mills & Reeve. View and download Connect more: creating the conditions for a more resilient and sustainable higher education system in England here.

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