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Why Traditional International Recruitment Could Cost Universities Their Future

With deficits on the rise, universities must rethink traditional international student recruitment practices.

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2024 has presented Australian universities with unprecedented financial challenges. A staggering 63% of Australian and 43% of UK universities ran at a deficit (THE), underscoring a critical need for systemic change. Coupled with government policies like Ministerial Direction 107 and the proposed international student enrolment caps in Australia, the traditional methods of recruiting international students are no longer sustainable. It’s time for universities to rethink how they attract and retain international students.
 
The Challenges Facing International Student Recruitment
 
Recruiting international students has always been a high-stakes endeavour, but recent shifts have intensified the pressure.
 
  1. Navigating Ministerial Direction 107: Ministerial Direction 107 has introduced stricter prioritisation for visa processing, favouring low-risk source markets. While the intent is to protect the integrity of Australia’s international education system, the directive presents a new challenge for universities accustomed to relying on high-risk, high-volume markets. Institutions must now diversify their recruitment efforts to focus on low-risk markets while maintaining student enrolment numbers—a delicate balancing act.
  2. The Impact of Proposed Enrolment Caps: The Australian Government’s proposed enrolment caps add another layer of complexity. These caps aim to ensure sustainable growth and quality education but threaten to limit the number of students universities can accept from certain markets. The result? Increased competition among institutions for a smaller pool of eligible students, driving up recruitment costs and reducing margins. 

Traditional Recruitment Models Are Failing
 
Historically, Australian universities have responded to recruitment challenges by investing more in agent activities and expanding their agent networks. But as someone who served as Chief Marketing Officer at Macquarie University, I can tell you that this strategy is flawed. Here’s why:
 
The 80:20 Rule in Agent Performance: In international student recruitment, 80% of student enrolments come from just 20% of agents. This means the majority of agents deliver minimal results despite significant time and resource investment. Expanding your agent network might sound like a solution, but in practice, it often results in wasted effort and escalating costs without guaranteed returns.
 
Mismatch Between Supply and Demand: Fixed commission rates fail to account for the differences in market supply and demand. This leads to:

  • Oversupply in popular programs from high-demand markets.
  • Undersupply in niche programs or from smaller source markets.

The result is inefficiency, with universities struggling to balance enrolment numbers across their programs and markets.
 
A Game-Changer Is Needed
 
Universities need a new approach to international student recruitment—one that allows them to:

  1. Identify agents who can deliver the students they need for specific programs from prioritised source markets.
  2. Negotiate market-responsive commissions that reflect supply and demand dynamics.
  3. Secure agent commitments upfront, before applications are made to competitors.

Achieving this manually is impractical for recruitment teams already managing hundreds of agents and programs with Excel sheets, emails, and phone calls. The complexity of adding variable commissions and upfront agreements would be overwhelming.
 
Automation Is the Key

Automation has revolutionised countless industries, from finance to retail, and it’s long overdue in international student recruitment. Here’s why automation is essential:

  • Efficiency: Recruitment teams can focus on strategy rather than administrative tasks.
  • Precision: Match the right agents with the right programs and source markets.
  • Scalability: Manage hundreds of agents and programs effortlessly.
How Feezy Can Help
 
Feezy offers the automation solution Australian universities desperately need. Our platform streamlines international student recruitment, providing:

  1. Agent Identification:Feezy uses data-driven insights to identify agents with students ready to enrol in specific programs from prioritised source markets. This ensures recruitment efforts are targeted and efficient.
  2. Variable Commission Negotiation: Our platform enables universities to negotiate market-tested commission rates that reflect the true dynamics of supply and demand. This ensures competitive rates for high-demand programs while incentivising agents to promote niche programs.
  3. Upfront Commitments: Feezy helps universities secure agent commitments before applications are submitted to competitors. This not only improves recruitment efficiency but also ensures that institutions meet their student load targets.
  4. Cost Reduction: By automating these processes, Feezy reduces recruitment costs and allows universities to achieve more with less. 

The Time to Act Is Now
 
The challenges facing Australian universities are significant, but they’re not insurmountable. By embracing automation and innovative solutions like Feezy, institutions can:

  • Diversify their student base.
  • Achieve compliance with government directives.
  • Reduce costs and maximise recruitment ROI. 
It’s time to change the way you recruit. Feezy is here to help Australian universities adapt to a new era of international student recruitment—efficiently, effectively, and sustainably.
 
Final Thoughts
 
As Australian universities face increasing pressure to deliver results in a challenging landscape, relying on traditional recruitment methods is no longer viable. Automation isn’t just a nice-to-have; it’s a necessity.
 
Feezy empowers education providers to transform their recruitment strategies, ensuring they remain competitive in a fast-evolving market. The question isn’t whether you can afford to change how you recruit—it’s whether you can afford not to.
 
Ready to revolutionise your recruitment strategy? Contact Feezy today to learn how we can help you achieve your goals.

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