international education
campusreview.com.au
“WE WANT SUPPORT!”
The cost of attrition
Better support for
international students
will help keep them here.
By Davorin Vrdoljak
I
t’s no secret that the international student market is Australia’s
third-largest export sector – supporting Australian communities,
jobs, regional economies and the country’s relationship with
the world.
Australian universities are sitting on a further, multi-million-
dollar opportunity in terms of tuition fees, which are currently
being lost due to the attrition rates of international students.
The key to addressing this issue could be as simple as listening to
international students and addressing their concerns before and
during their study.
THE REAL COST OF STUDENT ATTRITION
To quantify the lost opportunity cost – that is, the foregone
fees – of student attrition, we used the Australian government’s
New Adjusted Attrition Rate, which looks at the proportion of
students who withdraw from study within the first three years of
commencement. Based on the current rate of 9.4 per cent, our
conservative estimate is that Australian universities are looking at
more than $250 million in unrealised revenue annually, based on
international student attrition alone.
While the figure for domestic student attrition is more than three
times higher, universities seeking to address attrition generally
would do well to look specifically at how to stem the outflow of
international students. That’s because while international students
represent 14 per cent of all withdrawing students, they account
for 24 per cent of lost revenue due to their average revenue per
student being significantly higher.
If we consider the real financial uplift student retention can
deliver – not just to universities but the wider economy too – the
motivation for addressing this should be clear. Further, by focusing
on international students, we should see a series of knock-on
effects, from an increase in potential students choosing Australia as
a place of study, to encouraging greater diversity of thought within
universities and society.
Understanding what international students are worried about, and
ensuring the university is providing students with support in these
areas, will go a long way in improving student retention.
We know from our 2018 International Student Pulse Survey that
there are particular areas of concern for international students,
both before they begin studying and during their course. For
students currently studying in Australia, the cost of living, getting
a job while studying, and academic performance are some of
their biggest worries in the lead-up to and during their time
in Australia.
While the cost of living is arguably outside the control of
universities, the other two insights clearly indicate which areas
universities can provide support in, with a view to improving
student experience and, as a knock-on effect, increase retention.
Assisting students to find work, accommodation and other
basic budgeting advice will improve their experience while
studying here.
Specifically, support services that can make studying abroad for
international students less stressful include initiatives that allow
them to:
• Know more about the country’s culture
• Ask questions of existing international students at the institution
• Overcome language barriers
• Access learning and study skills support.
These services should be clearly explained and actively promoted.
WHERE TO FROM HERE?
Most universities agree that retention is an all-of-university
responsibility, and that the challenge is in attributing increased
retention rates to specific initiatives. Universities need to commit
to doing more and achieving better outcomes overall, to increase
student satisfaction and experience.
It all starts with the student experience – students tell us every
semester that they appreciate one-to-one communication and
support, especially in times of confusion and/or need. Universities
should look at their current strategies and leverage automation to
continue promoting services, while also investing in personal, one-
to-one support, to ensure their students feel valued, supported and
most importantly, welcome.
With the uncertainty around funding from the government,
universities would do well to look at retention as a sound
investment – a strategy to shore up future fees and thereby
increase income. In doing so, universities can make a better case
for their contribution to society, not just in creating job-ready
graduates, but through a very real financial impact.
TAKING RESPONSIBILITY
Ultimately, it is in the best interests of Australian universities to take
responsibility for improving retention rates. Providing support and
engagement systems for international students should be viewed
as key to this effort. By listening to the needs of international
students, universities can keep their finger on the pulse and use
these insights to deliver a well-executed and timely intervention
and/or prevention campaign that will make a huge difference to
students’ experiences and positively impact their study tenure. ■
Davorin Vrdoljak is vice-president of operations at
QS Enrolment Solutions.
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