Increasing Number Of College And University Leaders Concerned About Maintaining Student Enrollment, Says KPMG Survey

NEW YORK, Sept. 17, 2014 /PRNewswire/ -- An overwhelming number of higher education leaders are increasingly concerned about their ability to maintain current enrollment levels, according to the results of the third annual Higher Education Outlook Survey conducted by KPMG LLP, the audit, tax and advisory firm.

KPMG's annual survey, which polled 120 higher education leaders, (79 from public institutions and 41 from private) found that a whopping 85 percent said they are either 'very' or 'somewhat' concerned about their ability to maintain current enrollment levels, up 14 percent from 2013 –and 19 percent since 2012.  Conversely, those indicating they are "not at all concerned" dropped to a mere 11 percent, down nearly 20 percent in the past 24 months.

"Students and their families are looking at the financial costs associated with higher education and making an assessment of return on investment," said Milford McGuirt, KPMG's National Segment Leader for Higher Education, Research and Other Not-for-Profits. "Education leaders are cognizant of this reality and are struggling with how they can continue to attract and retain students without diminishing the quality of the educational services they provide."

Factors Impacting Enrollment
Asked to identify the major factors impacting enrollment at their institution, 66 percent identified parents/students' inability to pay tuition as the top factor, up eight percent from last year and 17 percent since 2012. Concern was pronounced among both private and public institution leaders, reflecting lingering effects of the economic crisis. Seventy one percent of private respondents expressed concern, up eight percent since last year and up dramatically–23 percent– since 2012. Among public institutions 63 percent were concerned compared with just 50 percent last year.

Additionally, 50 percent of those surveyed identified competition from peer institutions as a second major factor impacting enrollment. The increase was substantial in both private and public institutions from 2013 (50 percent vs. 37 percent for private; 50 percent vs. 40 percent for public).

"Perhaps more than ever, students and parents are shopping around and comparing aid packages, facilities, and curricula, as well as job placement and career outcomes. Institutions feeling heat from competitors are asking: 'what differentiates us'?" said David Gagnon, KPMG's National Audit Leader for Higher Education, Research & Other Not-for-Profits. "The higher education landscape is evolving as more students explore alternative routes, such as attending a community college for two years before transferring to a four-year college or university."

With more students domestically seeking lower cost alternatives to higher education, 43 percent of higher education officials indicated an interest in expanding their prospective pool of students by recruiting international students, including a majority of private institutions (51 percent compared to 39 percent for public).

"Leaders are keenly aware that students they recruit from foreign countries are more likely to pay the full cost of attending their institution for four years," said Gagnon, "and that's a factor in these results."

Emerging Trends
Those surveyed said spending more to keep up with changes in technology (63 percent) and considering hybrid educational delivery models including virtual learning environments (48 percent), were two of the top changes they were making in response to recent trends in the educational marketplace. Spending more to keep up with changes in technology was the top priority for a strong majority of both private and public leaders (71 percent and 60 percent, respectively), as institutions focus on cost-effective ways to leverage the learning experience.

"Every industry is undergoing a transformation of some kind and higher education is no exception," said McGuirt. "For higher ed, transformation can mean addressing the regulatory mandates around cost, access, and quality. But this year we're also seeing an emphasis on organizational transformation as officials move from cost-cutting measures involving administrative support functions to the academic side of the business to assess ways to improve education delivery. The interest in hybrid delivery models revealed by the survey is evidence of this trend."

Challenges Posed by Social Media
Higher education leaders were also asked about the major challenges posed by technological change and innovation. Fifty percent indicated leveraging social media to better communicate with current and prospective students was on their technology agenda, though there was a 20 percent drop in this response among private leaders, 49 percent vs. 69 percent, when compared to  2013. Public institution leaders were unchanged year to year, with 51 percent indicating social media as a priority.

When asked about the top unforeseen problems caused by social media, 46 percent of leaders chose the response online harassment/cyber stalking, compared with just 31 percent in 2013.  Again, a dichotomy exists between private and public.

The concern from private school leaders was especially pronounced, at 56 percent, up 30 percent from 2013. Only 41 percent of public respondents were concerned, which is up just two percent from the previous year.

"These numbers highlight why higher education leaders are increasingly focused on cyber threats," said Gagnon. "And while the survey didn't cover data security per se, our conversations with leaders indicate that as social media continues to play a more integral role in higher education, they are likely to continue to be concerned about having the processes in place to protect sensitive data, as well as ensuring student safety and security."

The KPMG Higher Education Outlook Survey
The KPMG survey was completed in July of 2014 and reflects the responses of 120 senior officers in higher education.  Fifty-six percent described their role as CFO, 28 percent as CEO or chief academic officer and 17 percent as controller or budget officer. 

About KPMG LLP
KPMG LLP, the audit, tax and advisory firm (www.kpmg.com/us), is the U.S. member firm of KPMG International Cooperative ("KPMG International"). KPMG International's member firms have 155,000 professionals, including more than 8,600 partners, in 155 countries.

Contact: Matthew Weiss/ Jim McGann
KPMG LLP
201-307-8138/202-533-5783
[email protected]/[email protected]

Photo - http://photos.prnewswire.com/prnh/20140915/146093-INFO

SOURCE KPMG LLP

WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM?

440k+
Newsrooms &
Influencers

9k+
Digital Media
Outlets

270k+
Journalists
Opted In

GET STARTED