Beyond the bottom line: rethinking recruitment strategy and cost

My recent article in The PIE News posed a critical question: is international student recruitment really worth it, especially when more than a quarter of UK universities earn less per international student – after scholarships and discounts, but before direct recruitment costs – than the maximum domestic tuition fee cap universities in England are allowed to charge?

This issue is significant, given that many vice-chancellors already claim that the domestic tuition fee is insufficient to cover institutional costs.

However, as many colleagues have reminded me, assessing the value of international student recruitment purely through a financial lens overlooks the broader strategic benefits universities may seek. Beyond direct financial contributions, international recruitment enriches campus diversity, enhances educational quality, strengthens global rankings, and creates international opportunities and experiences for domestic students. 

And the financial argument can still hold true in cases where universities appear to earn less per international student than for domestic students. In these cases, international students contribute to fixed overhead costs, including the interest on capital projects initiated during times of financial optimism, which continue to burden many institutions.

Clarity and transparency about the strategic motivations behind international student recruitment are essential

In addition, some universities have excess capacity they simply cannot fill with domestic students due to limited demand for the university in general or for particular subject areas they offer. Filling these spaces with international students – even at a reduced per-student revenue – can still yield positive financial outcomes overall, or at least delay difficult decisions about changes to the subject portfolio and cuts to academic staffing and administrative costs.

Nevertheless, accurately evaluating the financial effectiveness of international recruitment demands a comprehensive understanding of associated costs, extending beyond visible expenditures like agent commissions, marketing, and direct admissions expenses. Equally significant are opportunity costs associated with academic staff engagement in international recruitment.

Time spent attending overseas fairs, hosting webinars, or training agents diverts resources from core academic functions, including teaching, research, and academic leadership. Overlooking these opportunity costs can lead institutions to underestimate the real investment necessary to deliver international recruitment strategies.

International recruitment can significantly influence global rankings – a crucial consideration in strategic planning. Rankings such as QS and Times Higher Education heavily weigh internationalisation metrics, including international student ratios, international faculty presence, and global research collaborations.

Effective recruitment strategies enhance these metrics, improving rankings, which then positively impact the institution’s reputation. This cycle helps attract further international and domestic students and top-tier academic talent, reinforcing institutional strengths.

Given these complexities, clarity and transparency about the strategic motivations behind international student recruitment are essential. Institutions must be open and explicit about their strategic rationale, especially when justifying financial ‘losses’ in specific subject areas aimed at enhancing global reputation, rankings, or strategic partnerships. Clearly articulating the expected timescale for achieving these strategic goals is also critical.

To help institutions better identify and articulate their strategic positions, I’ve developed a typology of university recruitment archetypes. This typology provides universities with a structured framework to clarify their strategic choices and enhance internal and external transparency regarding international student recruitment strategies.

Ultimately, effective international student recruitment demands ongoing reassessment, balancing financial sustainability with broader strategic goals to ensure alignment and institutional success.

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