Education is big business, yet skills gaps are big too

Education, particularly higher education, is big business.

In the UK, a comparison of universities to the companies across sectors in the Footsie (FTSE) on a competitive revenue basis, would show higher education as being the largest industrial sector.

In England, this significant increase in competitive revenue can be traced back to eliminating the cap on the number of full-time undergraduates that began in 2012. This change was expanded to include nearly all students. Today Universities in England and Wales no longer have caps on how many full-time undergraduates they can recruit, making for a highly competitive environment. Universities in Scotland and Northern Ireland also compete for international and other UK students, though they still have protected quotas for their local and EU student admissions.Many universities now generate competitive revenue in the hundreds of millions annually, with a select few reaching around a billion dollars per year. In England and Wales, it's typical for universities to have competitive revenue comprising 90% of their total income.

A question worth asking is, are the skills provided by higher education meeting the demands of the companies looking to hire new talent?

The many providers in the online education market are taking on the challenge of closing this gap. The Online Education market is expected to reach $185.2 billion in revenue by 2024, with a growth rate of 8.56% annually, leading to a projected $279.3 billion by 2029. 

The Online University Education segment alone will contribute $120.7 billion in 2024. The United States is expected to generate the most revenue, estimated at $87.51 billion in 2024.

Average revenue per user (ARPU) is expected to be $210 in 2024, with the total number of users projected to reach 1.121 billion by 2029. User penetration will reach 14.9% in 2024.
Source: Statista

The primary focus of most online education providers is the “hard skills” of career disciplines.At Perfectit, we’ve been in the position to hire and develop many early career stage professionals for demanding employers. In our experience the gap between the skills that higher education provides and the competencies needed to thrive in a corporate context, is still significant.

For many hiring managers – the differentiator they are looking for in candidates is the aptitude and attitude that makes for a great cultural fit. Behavioural traits or skills, such as problem solving, teamwork, leadership, and resilience; these qualities go a long way to making a great hire. Many companies know that they can train the discipline skills “on the job”. What is much harder to teach is the attitude people will need to be a great fit.

When you hire someone who really fits with your company’s values and the way you do things, they tend to do their jobs better. Thinking about a candidate's values and behaviours during the hiring process helps to create teams that work well together, not just because they're skilled but because they share common values. 

This approach also shows off what companies stand for to everyone outside, which is great for your business in the long run.

At Perfectit our goal is to really hit the target with education options we produce or propose. As we build a picture of candidates during the mentoring phase, we learn what they are  passionate about achieving. The process often brings about self-realisation of where the skill gaps are.

What we are seeking to do is to build a bridge together to close the gap in skills for the career you really want, to ensure you are ready to meet the demands of your chosen path head on. We look forward to helping you plan the route to the career of your dreams.