Business Owners: You Should Care That Colleges Are Struggling to Stay Relevant
Today's career landscape will change dramatically in the next decade; institutions of higher learning and employers must work together to cultivate an optimal workforce.
The spotlight has been intense on higher education over the last few years. Being on the receiving end of questions regarding the value of a degree, rising costs and perceived ability to prepare students to meet employers’ needs, higher education needs to do everything it can to keep pace. The economy both in the US and around the world is changing rapidly, however this only scratches the surface of these issues. And while there needs to be attention on preparation for today’s careers, one must not lose sight that many of the careers that exist today will not be present or in demand in the next decade. The reality is we don’t yet know what the career offerings will hold in 10 years. Accompanying these changes in the overall career landscape, many of the necessary skills for current careers will become obsolete—replaced by a new set of capabilities desired by employers.
Evolution is a Necessity
In the past decade, higher education has experienced an “arms” race in the academic programs provided on campuses across the country. Some are speculating that this race is coming to an end due to an institution’s need to control budget and resources. While these are valid limitations, institutions risk irrelevancy if they do not adjust programming to match the jobs of not only today but keep a keen eye on those that are appearing in the horizon. To date, much of the need for programmatic change has centered around institutions’ desire to attract students to their campuses and programs with some attention to the changing needs of our country and the world. However, moving forward, while institutions will continue to need to attract students, they will also face tremendous pressures to deliver those programs that are leading to the jobs of future relevance.
An institution’s assessment of program offerings cannot be a review that occurs with the most recent change of leadership or the latest strategic plan. Rather, colleges and universities must keep continuous and focused attention on the valuable data that will inform the roadmap for academic programming changes. The points on this roadmap can be defined through reviewing Labor Market Data regularly. However, reviewing this data as it is provided by the Bureau of Labor Statistics is not necessarily the answer. Technology can help synthesize the data through more helpful lenses and offer insights to effectively chart the course for the next stage of changes. Data analysis must allow collegiate leaders to not only understand what occupations will be in demand, but also the labor market outlook in their individual states, regions, metro areas and cities. While many alumni will stay in one of these areas relative their respective institution, it is also vital to understand what is occurring in other regions of the country. Related, institutions must not lose sight of the skills related to those careers and be diligent in ensuring they offer programs meeting the current labor market’s needs as well as the skills that will be in demand for careers of the future.
Dependence goes both ways
Much of the ongoing industry discussion around the success or lack thereof of graduates in the current labor market often highlights criticism of institutions and their need to close skills gaps, evolve their programming and cut costs. When focusing on the skills gap, one (including employers) should be careful not to undermine the value that institutions bring to the labor market. While there are arguably corrections that can be made to address skills gaps and improve the institutions’ alignment with employers to place students more effectively for internships and employment, the relationship does not stop there. Employers will not only be dependent on colleges and universities to staff their organizations, but also to upskill and reskill those who are already on the payroll.
As many of the careers of today and their associated skills will be obsolete at the turn of the next decade, businesses and organizations must ask themselves how we will manage the retooling needed to keep their business and organizations relevant and successful. Just as institutions depend on employers for success, the opposite is true as well. For this reason, it is imperative that institutions and employers collaborate, partner and align on strategies that will benefit both sides in achieving their goals.
Solving the equation
Economists and higher education experts appear unable to forecast the end of rising costs in higher education, particularly given the pandemic – thus continuing the conversation of whether it is all worth it. Solving the debate surrounding the value of higher education is quite complex, but the equation must include a combination of relevant academic offerings plus skills alignment that can be offset by declining costs. Evaluating programs not only for relevancy to the labor market demands, but also for overall cost effectiveness is crucial.
Combining workforce analytics in order to identify in demand programs with solutions evaluating academic cost effectiveness is one area that could relieve the financial burden that is currently being absorbed by both institutions and their students. There is certainly value to the many programs that any institution offers, however, given the current climate it needs to make sense financially through enrollment and produce intended employment outcomes for today’s jobs and those into the future.