Change is a Constant. So are the Challenges.

The UK higher education sector is going through an undeniable period of change as it faces significant challenges that threaten its stability and future growth.

This is having huge ramifications on how universities differentiate their offering and tell the world who they are, how they are unique and why it matters.

Student Recruitment

Every university is facing financial pressure due to decreased government funding and the depreciating value of the fixed domestic tuition fee. There is an urgent need to diversify income streams, with a greater shared focus to recruit more international and postgraduate students to ensure business sustainability. Universities must stand-out from the crowd to attract the students who contribute so heavily to university revenues.

This challenge is complicated by tightening immigration policies impacting international students, making it even harder to compete with destinations perceived as more welcoming (an ever-changing landscape in which Australia, Canada and the USA roll in and out). And it’s not just the English-speaking powerhouses of higher education threatening the UK sector.

Reputation

The UK’s collective reputation for higher education is facing increasing global competition. While several UK universities continue to hold top positions in the world rankings, the rising quality and reputation of universities in countries like the US, China, Australia, and Canada are making the global higher education landscape more competitive. Ongoing funding challenges, Brexit-related uncertainties, and immigration policies could impact the UK’s ability to attract international faculty, students and partners, with negative impact on future rankings.

Students as Consumers

A cultural change has taken place on every campus. Most students are now Gen Z, financially cautious, savvy consumers who demand value for money and a return on their investment. This means universities must demonstrate their ability to provide the facilities, teaching quality, and research credentials that not only enrich their student experience but delivers a highly regarded degree that leads to relevant employment.

Gen Z students are digital natives, constantly connected with their community and broadcasting their experiences – good and bad. Universities must deliver against their student experience and teaching quality promises to obtain the brand advocacy and peer endorsement that works so hard at influencing future recruitment.
With the rise of degree apprenticeships and online courses, students in larger numbers can opt out of a traditional university experience and the additional revenue that this brings through accommodation, sports membership, and campus retail.