Colleges and Universities Will See Reduced Revenue Growth in Competitive Higher Education Market
Colleges and universities are concerned about how the competition for new applicants will affect revenue growth.
Currently, the slowdown in high school graduates is creating a shrinking applicant pool for colleges to fight over. As the battle for top students intensifies, many colleges and universities are concerned about how the competition for new applicants will affect revenue growth.
According to data from the 2019 fiscal year, higher education institutions are expected to see investment returns between 5% and 6%. While this is enough to support endowment spending, these returns are not enough to match inflation rates. Analysts predict that more than 30% of universities will see revenue decreases of over 3%.
Financial experts note that small and regional colleges will be affected by the drop in enrollment more significantly than large public and private institutions. Colleges are looking to remedy financial woes by increasing fundraising efforts and offering tuition discounts to attract new students. Additionally, some colleges are looking to reduce costs by consolidating at both the program and institutional level.
This is why colleges and universities are concerned about how the competition for new applicants will affect revenue growth. Looking for a consulting firm with experience working with salary, legal, and other human resources issues? Then don’t hesitate to contact the professionals at McKnight Associates, Inc. We are ready to offer you hands-on human resources consulting for colleges, universities, medical centers, and organizations of all sizes.