In recent years, the higher education sector has faced a number of challenges relating to people. These range from budget pressures to strikes. Universities HR, the professional body for HR in HE, reflects upon how the sector has overcome these obstacles and what lies ahead by 2025.
Higher education has had a turbulent few years. The HR and people professionals of higher education have been dealing with a number of issues, including the pandemic impact, the “great resigning”, the highest levels of sickness absence since records began; industrial action, the “war against wokeness” or the rising cost of living.
With financial uncertainty and a new government in place, the sector doesn’t feel any more stable. Our members and all HE staff are asked to do even more with less.
UHR’s recent sector-remit surveys provided invaluable insight into the challenges faced by HR and people teams at universities.
In our most recent survey, two thirds of HR leaders reported that they had witnessed significant changes in the HR team’s size, structure, or working methods in the last five years. The most common reasons were: an increased size of the HR department; new areas of responsibility; hybrid working; and restructuring the HR team.
HR leaders have told us the main drivers of change for their teams are systems, processes, automation, optimisation and restructuring.
We also see a real focus on the well-being of their staff, especially in this time of uncertainty and turmoil in the industry, as we create innovative ways for employees to advance their careers.
Budget Challenges
The budget poses significant challenges to HE providers. The increase in employer contributions to national insurance (NI), which has put further pressure on budgets that are already stretched, has intensified the pressure to cut costs.
While the increase of the national living wages will have a relatively smaller impact on the HE sector, as many employers are accredited by the Living Wage or have pledged to match the rates, this reinforces their commitment to fair compensation despite financial constraints.
You only have to look at the headlines of newspapers to know that many UK institutions, in response to this challenge, have taken difficult decisions, implementing voluntary and in some cases compulsory redundancy programs.
Staff salaries account for more than 50% of all operating costs for the HE sector.
Pressures are increasing
In order to maintain financial stability, universities also reassess their capital expenditure plans. They may pause or scale back certain projects. Some providers also reduce the size of their estates. This trend is accelerated by hybrid working models.
Although examples of mergers and shared services are still limited, they may become more common as the sector looks for ways to increase efficiency through collaboration.
Many welcomed the recent announcement of a tuition increase by the Labour Government in England. A similar increase is expected in Wales. However, it will only have a small impact on most HE providers’ books.
The additional NI contributions announced by the budget will probably wipe out any gains, along with increased pension contributions for universities using the Teachers’ Pension Scheme after 1992.
Manage workload and wellbeing
The UK Higher Education sector is going through a significant period of transformational change, and HR teams will be at the forefront in managing its impact.
“The financial challenges that face the higher education sector have driven university HR teams into innovation like never before.”
The restructuring of professional services units and academic units will increase the demands placed on people practitioners in terms of workload management. Employee wellbeing is also likely to be a growing concern.
In many universities, the recruitment of staff has been restricted to only essential positions, further stretching university capacity.
Despite these limitations, HR teams are still responsible for core compliance and statutory obligations, such as visa obligations and gender gap reporting.
To balance these essential responsibilities and the demands of transformation, it is necessary to prioritise carefully, be resourceful and use innovative workload management techniques.
As providers undergo significant changes, the wellbeing of their employees is also a top priority.
Organisations can engage with their staff and identify what aspects of employee experience are most important. This will help them to ensure that their wellbeing initiatives are relevant and effective.
HR leaders recognize the diversity of priorities in the workforce and are developing flexible offers that support resilience for all.
Communication is a key focus to ensure that these initiatives are widely accepted and accessible.
Communication strategies that are clear and engaging can maximize take-up and ensure employees feel valued and benefit from the help offered.
This approach enhances the individual’s wellbeing and contributes to creating a positive, sustainable work culture.
Innovation ahead
University HR teams are being forced to innovate in unprecedented ways by the financial challenges that face the sector.
These pressures are driving the adoption of digital technologies to improve efficiency, effectiveness and sustainability in an ever-changing landscape.
AI adoption is accelerating, and this has led to a demand for better digital skills among the workforce. HR professionals are leading the effort to upskill employees and use AI solutions to improve operational efficiency.
To be successful in this field, both innovation in technology and investments in people are required. The alignment of people and technology is crucial to the long-term sustainability and resilience of this sector.
Diversity and inclusion continues to be a focal point for HR teams. This is particularly true in the recruitment and retention process of staff, but also as a response to government policies, such as those relating to sexual harassment, freedom of speech and other issues.
Our members are seeking assistance with policies related to family leave, fixed-term contracts, zero-hours contracts, and other issues.
To stay abreast of new trends and practices, HR professionals can use webinars, conferences, newsletters and networks.
We offer our members many opportunities to meet, both virtually and physically, as the professional body of people professionals in this field.
These events offer a great opportunity for colleagues to network, exchange insights, and learn from each other. They also foster collaboration and learning in the sector.
Prepare for the future
As the HE sector continues to be under financial pressure and undergo organisational changes, HR teams are at the forefront in driving positive change. We are committed to encouraging collaboration, innovation and resilience and want to empower and energise all of our members.
“As we look to the future, providers of HE will need to do things differently and better.”
Our member network has been a key part of this effort over the last two years.
Nine special interest groups have been created around themes that resonate with our members. These networks provide connections, allow for the sharing of good practices, learning from each other, and provide a sense of camaraderie and support. These are in addition to the regional groups of HR leaders.
These networks are also used to collect information and feedback to help us with our research, webinars, and CPD. We want to make sure that all we do for our members is based on their needs.
In the future, higher education providers will have to do things better and differently. HR teams can play a key role in shaping the world of tomorrow by embracing innovation, developing digital skills, and prioritising wellbeing and development.
HR teams are vital in implementing culture and organisational changes within HE. This is because the people of HE providers provide so much, be it world-class research, outstanding teaching or student support. HR professionals play a crucial role in enabling high-performance across the workplace.
We are confident that by promoting the people agenda, and encouraging collaboration within the sector, HE providers will be stronger, more agile, and prepared for the future.
