Higher Education Analytics: Navigating Trends and Transformations

The higher education landscape is undergoing rapid transformation, driven by social, technological, financial, and academic shifts. To remain competitive and relevant, institutions must understand and adapt to these emerging trends. This article explores the key trends shaping higher education, providing insights for students, educators, and recruiters alike.

Understanding the Landscape

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In recent years, industry experts have noted an alarming skills gap, where positions remain unfilled or are filled with poorly matched candidates. This contrasts with the historical norm of college graduates readily securing jobs aligned with their education. Changes in entrepreneurial practices, cultural environment, and student demographics are challenging this established norm.

Universities and colleges must ensure graduates gain relevant knowledge and skills to prepare them for the future of work. This requires staying abreast of higher education trends to align their services with the job market and maintain a competitive edge.

Social Trends

Diversity in Higher Education Students and Faculty

Universities and colleges are tasked with promoting learners’ achievement and preparation for workforce competitiveness. Educators must recognize the educational value of ethnic and racial diversity and work towards breaking down barriers that inhibit proper diversification.

While many institutions claim to have a commitment to diversification, progress has been gradual. In the 1980s, students of color made up 17.33% of all undergraduate students. However, in the 1990s, institutions began to recognize the need to extend educational opportunities to students of all backgrounds. By 1996, this number rose to 29.6%, reaching 45.2% by 2016. This growth is driven by ongoing globalization and immigration, bringing rich cultural elements and diversity to all sectors, including education.

Institutions are now actively working to achieve diversity, not just in student communities but also in administration. Racial and ethnic minorities hold 22% of higher education professionals, with representation varying across departments. Women constitute 60% of higher education professionals, with the best representation in academic affairs (69%).

Increase in Non-Traditional Students

Traditionally, university and college students were primarily 18- to 24-year-olds matriculated immediately after high school. However, the Great Recession led to many job losses, particularly for those without formal education beyond high school. This highlighted the importance of college education and the need to prepare for the future of jobs.

Consequently, full-time employees, parents, caregivers, and retirees joined colleges and universities to reskill or upskill. Institutions altered their policies and models to help non-traditional students balance demanding schedules and competing priorities. By 2015, 40% of undergraduate students at American universities and colleges were nontraditional.

This number is expected to continue its upward trend, thanks to programs such as online program managers, online education, and MicroMasters programs, which are online graduate-level courses focusing on standalone skills.

Read also: Key Trends in Education

Mental Health Awareness

Experts describe the mental health challenges college students face as a "crisis" and "epidemic." A study by the American Psychological Association revealed that 35% of first-year students struggle with mental illness. Further, a study by the National Center for Education Statistics shows that of the 20 million students enrolled in institutions of higher learning in 2019, 19.9 million had mental health challenges. Depression, eating disorders, anxiety, addiction, and suicide are some of the mental health issues today’s college students cannot shove aside. According to the American College Health Association (ACHA), 60% and 40% of students also suffered anxiety and depression, respectively.

This challenge has compelled colleges and universities to come up with innovative approaches, online resources, and creative programs to increase mental health awareness. Institutions are dealing with the issues early on by proactively sharing mental health information with students during orientation sessions. Approaches used vary from panel discussions, role-playing, student testimonials, and short videos. Providing mental health interventions is found to be efficient in positively impacting the behavioral and emotional well-being of students.

Additionally, some institutions such as Drexel University offer free mental health screenings to encourage students to monitor their mental health status and counter the stigma head-on. Using the slogan “get a checkup from the neck up," the institution entices students to stop by the mental health kiosk for a quick series of questions. At the end of the private screening, students are given mental health support and resources, as needed.

Technological Trends

Embracing Artificial Intelligence for Learning

Technology plays a crucial role in higher learning, equipping students with information and bridging access to quality education. Artificial intelligence (AI) has the potential to automate and streamline workflows, enhance enrollment, improve IT processes, and boost learning experiences for students.

Universities and colleges are leveraging AI to offload time-sensitive academic and admin tasks. For example, the Georgia Institute of Technology uses a virtual assistant called Jill Watson to respond to consistently repeated questions in a masters-level AI class.

Despite AI's promise, its adoption in the education industry is still low. A 2019 survey revealed that even though university leaders are aware of the significant role AI could play over the next 10-15 years, many are skeptical about its implementation. Only 41% of universities and colleges have a clear AI strategy in place, and cost remains a major impediment. 57% of institutions have yet to allocate budget for AI projects.

Online Learning is More Prevalent

Online learning, a subcategory of digital learning, involves using online tools for learning. It takes place in non-traditional settings, enabling students to engage in learning regardless of time, distance, or location.

The prevalence of online learning is driven by technological advancements and the characteristics of today’s students. The new generation of students are accustomed to using technology from a younger age and thus are comfortable at home using tech tools to acquire knowledge and skills. Pew Research reports that 95% of Gen Zers have access to smartphones, whereas 97% use at least one of the major online platforms.

Currently, a third of higher education students are taking at least one class online. The advent of high-speed internet, virtual communication, and virtual reality technology further boosts online learning. The use of online-only courses has gathered momentum in recent months and it is poised to accelerate even after the COVID-19 dust settles.

Virtual Reality for Education

Virtual Reality (VR) is seen as a game-changer in higher education. Educators are increasingly incorporating VR into pedagogical approaches because of the benefits it delivers to students. Increased engagement and motivation, exploratory and contextualized learning, and experiential learning opportunities are some of the affordances granted by VR. Using VR in deep learning, primarily in science and medical fields, triggers empathic responses that give students a perspective that has an enormous lasting impact.

As of 2018, 18% of universities and colleges had fully deployed VR, 28% had used it to some extent, and 32% were testing the technology. These numbers are projected to grow rapidly in the coming years as more institutions jump on the bandwagon.

Financial & Workforce Trends

Focus on Closing the Skills Gap

Work-integrated learning models-internships, apprenticeships, and co-op programs-are gaining traction globally, aligning education with industry needs. Governments are incentivizing practical training, making it faster and less expensive for students to enter in-demand jobs. Vocational training is emerging as a pragmatic choice for learners. Collaborative initiatives between academic institutions and industries are creating seamless pathways from education to employment, addressing local talent shortages.

Alternative Funding Options

The post-election landscape in America brings a layer of complexity to questions of financial sustainability for colleges and universities. The sector has experienced impacts to cashflow as well as uncertainty surrounding federal funding. This shift may push the dependencies for funding from the national to the state level and add costs and operating constraints to private institutions. Institutions need to consider the strategic budget choices that have all too often been made through inertia, rather than through a clear-eyed look at what activities, programs, and expenses are truly driving impact toward the institution’s mission and exist for the benefit of students.

The financial strain faced by many colleges and universities, along with the need for a systemic approach to these strategic choices, is prompting institutions to adopt a more centralized approach to managing resources. To tackle considerable financial headwinds, institutions need to align their financial resources more tightly with their institutional priorities, fostering greater accountability and ensuring that budgeting decisions support long-term goals and values. By conducting a clear assessment of the costs associated with academic and nonacademic offerings, institutions can identify overextensions in programs, staffing, and nonacademic investments and make informed decisions about which activities to discontinue.

Strategic Budgeting and Resource Management

Adopting strategic budgeting practices in higher education can enable institutions to align scarce financial resources more effectively with their institutional priorities. Institutions that thrive in unpredictable environments couple this centralization with transparency in decision-making-clearly communicating who is making the decision and the criteria used-and with consistent communication to the community, framing the path forward in terms that resonate with those receiving the information. To enable institutional agility, higher education leaders must ensure that resources are allocated in a mission-focused way that supports the institution’s long-term goals, rather than allowing decisions to be made at the individual unit level. This may require a shift in mindset and will certainly require a look not only at the administrative support areas but also at the student support infrastructure and academic program array.

Equally important is the communication of the budget across the institution. Financial legibility and transparency can help to build trust among constituencies, who can then collaborate to find creative solutions rather than remain at odds with leadership. Leaning into the power of partnering with philanthropy, the private sector, and the government at the federal, state, and even local level can help find new models of financial stability. Developing clear communication with stakeholders, such as legislators, donors, and corporations, can assist with support for funding.

Institutions also need to consider the potential to leverage improvements in artificial intelligence to help leaders looking to tackle these financial headwinds by allowing more surgical precision with spending. AI-enabled tools can provide greater data-driven insights to factor into the budgeting processes. Predictive analytics, machine learning, and generative AI are enabling leaders to look across large amounts of university and public data in order to understand trends and make recommendations. Cross-walking data on student demand for programs with workforce needs and talent management through technologically enhanced analytics can help provide a road map for program prioritization and creation. Institutions and systems are taking a data-informed and mission-driven approach to program array.

Risk Management and Institutional Agility

Higher education leaders often face challenges, but over the last year, they have had to address issues such as campus turmoil, protests, and encampments, and changes in policy or practice made in response. While the magnitude and direction of change in higher education is uncertain, it is clear that leaders should plan for change. Higher education has yet to fully embrace the opportunity and disruptive force that AI and technological change portends for both the preparation of students for the future and the conduct of research in this rapidly evolving environment.

Historically, risk management in higher education has focused on tangible assets like physical infrastructure and financial resources. However, the modern risk environment demands a more expansive view that includes intangible assets such as intellectual property, reputation, and data security. To address this complex risk landscape, institutions should consider adopting a holistic risk management framework that integrates diverse risk areas into their strategic planning processes. This involves identifying and assessing a wide range of risks, both internal and external, and understanding their potential impact on institutional objectives.

By shifting from reactive to proactive risk management, higher education institutions can better safeguard their assets and ensure long-term sustainability. AI can be a double-edged sword as it is a means of minimizing risk in some areas while potentially increasing it in others. Managing risk is no longer purely the domain of the general counsel’s office or the audit committee of the board, but of every campus function. DePaul University has strategically integrated ERM into its core operations, demonstrating a strong commitment to maintaining a proactive risk posture.

To thrive in the new normal, higher education will need to become more agile to be able to respond to growing demands, student expectations, and new modalities. This will require creative thinking about the way institutions are organized and the ecosystem in which they operate.

Alternative Pathways and Flexible Learning

The rapidly changing economic, political, and social landscape has shifted conversations about the traditional four-year degree. As questions about the value of post-secondary education are added to concerns about access to college, increasing numbers of Americans are wondering about the applicability and financial sustainability of four years in college. In response, some institutions have shifted their focus to new credentials. The result is a proliferation of alternative pathways, from apprenticeships and certifications to accelerated degree programs. These options are increasingly favored by students, their families, and employers alike for their cost-effectiveness and quicker path to employment, challenging the traditional four-year college model.

Higher education institutions are creatively responding by breaking the 120-credit hour degree into shorter, more manageable segments, expanding dual enrollment programs, integrating more experiential learning opportunities, and developing flexible, competency-based degree programs. These programs focus on demonstrating competencies rather than just accumulating credit hours, ensuring students acquire the skills that employers have articulated are necessary for the job market.

Distance education provides adult and working learners with access to advanced degrees without disrupting careers or requiring geographic relocation. Online and hybrid learning are impacting higher education by shifting instruction toward increased flexibility, personalization, and skills-based outcomes. One of the most prominent higher education trends is artificial intelligence. This has become a core component of modern distance education, enabling more responsive, data-informed and learner-centered experiences.

Universities are reworking curriculum structures to support modular, competency-based learning. Flexibility has also become a hallmark of online education trends, with flexible and stackable online degrees becoming increasingly popular within higher education. These models emphasize student choice, portability, and relevance. Distance education has removed several barriers to higher education, especially geographic barriers.

Data-Informed Decision-Making

Higher education leaders have an increased desire to harness data to make strategic and cost-effective decisions. With rising pressure to close equity gaps and improve student-success metrics, institutions have shifted over the past decade to leveraging predictive analytics. Done well, analyzing and utilizing student data can significantly transform the way universities operate, boost student performance, enable new ways to engage current and prospective students, realize cost savings and more.

Data analytics can improve recruitment capabilities by analyzing the best opportunities to boost brand visibility, reduce campaign spending and predict target students and markets. Universities and colleges can analyze the school’s historical data and cross-reference the geomarket list with a marketing approach and campaign with specific, selected messages to the targeted markets. In this way, analytics can help to determine where the best prospects-those most likely to enroll-are located and advertise accordingly. By utilizing historical and current prospect information, the institution can determine which students are more likely to participate and what phase they are in within the engagement cycle. By using this analytic approach, universities can create invite-only events that comprise the students who would be most positively impacted by attending.

Through data-driven decision-making, which involves modelling and analyzing accurate and relevant data, institutions can identify profitable trends and patterns, then allocate resources where they are most effective. By aggregating program enrollment data trends, prospective student intent to enroll data, labor statistics and other national market data, institutions can either identify new market-sensitive, in-demand programs to launch or strategically shift institutional funds to support an existing program garnering more student interest. Data analytics informs modifications to university curricula for real-time adaptation, and universities can now observe the relationship between degree progress and degree completion. When used strategically, data can help universities tailor their class offerings to best meet student demands. Accurate data can enhance the student experience by identifying opportunities to better meet their needs.

By coalescing a variety of data points, institutions can identify academic challenges in subsets of the student population and develop tailored intervention solutions to improve student success. Incorporating nontechnical elements will result in further insight; the human aspects informed by these data provide a customized, more empathetic and subjective perspective for students. Together, these elements may identify problem areas causing reduced attendance or academic challenges and what the affected parties have in common.

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