Shaping the Future of the Higher Education Sector

‍The higher education (HE) sector is undergoing profound transformation, marked by shifting regulatory landscapes, increasing scrutiny of international partnerships and rising expectations around quality and outcomes.

Our recent panel event, ‘Shaping the Future of the Higher Education Sector’, explored how UK-based organisations working in higher education across the world can maximise institutional strengths and improve collaboration with international partners to rethink the future of the sector at such a challenging time.

We were delighted to host panellists Ian Hall, Head of Partnerships (International) at Advance HE; Joel Arber, Group Chief Executive Officer at SUMS Consulting; and Michael Peak, Head of Education Research and Insight at the British Council, who led a fascinating discussion on systemic approaches which can benefit the sector both at home and abroad.

With the sector facing mounting financial strain and international pressure, our panellists highlighted opportunities for UK higher education institutions (HEIs) to lead, innovate and collaborate, especially with new international partners around the globe.

Examining the current picture   

It is no secret that UK HEIs looking to grow internationally are facing a number of pressing challenges.  

The shifting political climate has created a more restrictive environment for international students across the globe. At the same time, in the UK, new visa restrictions and proposed levies have raised concerns about the sustainability of international recruitment, forcing students and institutions alike to navigate an increasingly fragmented and competitive global landscape.  

These pressures have forced universities to re-evaluate their reliance on traditional funding models, which channelled income from international enrolments to support teaching, research and campus development. Beyond financial concerns, institutions are also facing challenges to their global reputation. Concerns about how to maintain global presence, deliver high-quality student experiences and sustain long-term academic excellence are at the top of universities’ agendas, especially at a time where student mobility and international collaboration are no longer guaranteed.  

This prompts the question: how can UK institutions remain competitive and resilient within a more complex international environment? 

Professional development key to effecting change

Speaking about the necessity of transformation within the higher education sector, Ian Hall, Head of Partnerships at Advance HE, emphasised the high pace of change in both technology and politics. As a result, the need for HEIs to adapt to meet these changing demands is higher than ever. Ian outlined how professional development frameworks, such as the Professional Standards Framework (PSF) 2023, and the global fellowship scheme help to drive change at individual, institutional and national levels.

Global recognition for teaching excellence can enhance institutional reputation and student outcomes, for example through the Professional Standards Framework (PSF). At Walailak University in Thailand, the development of teaching staff through the PSF and fellowship scheme achieved:

• 30% increase in student retention;  

• 93% of teaching staff rated 4/5 or better by students;  

• 90% of teaching staff awarded fellowship.

In this way professional development can embed a “culture of teaching” and contribute to wider transformation within an institution.  

Amid a climate of financial challenges, restructures and mergers, staff turnover and retention pressures, HEIs must also navigate emerging trends, such as the adoption of generative AI. Professional development and strategic frameworks, such as those developed by Advance HE, provide essential tools to help institutions address these complex, interconnected pressures while maintaining academic excellence and global presence.

Improving efficiency through data-driven insights

The student recruitment crisis has sent a seismic shock through higher education institutions and exposed the urgent need for sustained reform. Central to this is greater efficiency and collaboration both within and between institutions.

Transnational education (TNE) is a key avenue for universities to extend their global presence, attract diverse student cohorts and establish international partnerships. Moving forward, it will become increasingly important for institutions to develop TNE partnerships built upon reciprocity, and which work financially for both UK and international partners.

Access to reliable data and transparency about it are central to this process. By sharing data with institutions around the world looking to improve their own efficiency, universities can embrace more informed and strategic decision-making.

For example, SUMS Consulting’s International Peer Network Programme (IPNP) is a global network which provides a platform for HR (Human Resources) practitioners to discuss key issues facing the sector and access peer support. The group is currently made up of members from UK, US and Australian institutions, who seek to exchange their unique knowledge and practices with other members of the group. The Global Pay Club works in tandem with this network and is designed to help universities around the world benchmark staff salaries and benefits. Benchmarking, however, is only a starting point, which can usefully prompt institutions to reimagine their operating models to improve performance, efficiency and sustainability as a result. With a focus on collaboration, these initiatives equip higher education institutions with the knowledge needed to anticipate and navigate the challenges of an increasingly complex global landscape.

Alumni voices: the significance of soft power

For the UK, higher education continues to serve as a valuable soft power asset. During the panel discussion, Michael Peak, Head of Education Research and Insight at the British Council, highlighted how HEIs act as both a draw for international students and a driver of positive perceptions of the UK globally.

Evidence from the Alumni Voices study shows that international graduates often remain lifelong advocates for the UK; recommending UK education, promoting travel to the UK, using English professionally and maintaining trade or professional links. These alumni networks amplify awareness of the UK as a destination for HE, work and holidays, thereby bringing long-term benefits to the UK, beyond simply the number of enrolments per year.

The Alumni Voices report finds that:

• 84.5% of alumni have recommended a UK education in the past 12 months, including 78.4% of those who graduated more than 25 years ago.  

• 87.8% had recommended the UK as a travel destination in the past 12 months.   

• Over 75% had contacted or met someone from their UK study experience in the past year, showing the enduring nature of these connections.

When compared to responses from the British Council’s Global Perceptions Survey (covering youth in G20 nations with no experience of a UK education), alumni from British HEIs consistently show more favourable views of the UK and greater trust in its institutions and people.  

As the geopolitical landscape evolves, this longitudinal data could serve as an important barometer of global sentiment toward the UK. Most importantly, it highlights the significance of the student experience: a frequently overlooked channel through which the UK can widen its international presence through authentic ambassadors on a global scale.

Looking forwards

The future of higher education will be defined by how institutions navigate financial pressures, regulatory change and global competition while remaining true to their mission of teaching, research and societal contribution.

For UK HEIs, this requires embracing new models of professional development, leveraging transnational education strategically, using data to guide decisions and channelling alumni voices as a feature of soft power. Throughout all of this, collaboration must remain firmly at the core, ensuring engagements with other institutions and international partners are true partnerships for the benefit of all parties, but most of all, for the benefit of the student.

Supporting UK-based education services providers across all levels of education (Early Years, Primary, Secondary, Higher Education and Life-long Learning) to showcase their capabilities and grow their international footprint is an important part of BEI's work.

How BEI can support

BEI delivers a range of events that bring together members with relevant stakeholders in governments around the world, bilateral and multilateral funders as well as our partners in the UK Government. In addition, we convene ad hoc Working Groups, designed to help members share technical best practice and create content that showcases UK capability in specific areas. If you are interested in learning more, or have any questions or enquiries following the event, do get in touch here.

BEI was delighted to be able to convene this valuable discussion and is grateful for the contributions from our members, friends in the Higher Education sector and representatives from the diplomatic corps in London who were able to join us on the day.