The opportunity is now

When universities start the new academic year in September, they’ll do so in a highly uncertain environment caused to a large extent by the COVID-19 pandemic, writes Ashley Norman - partner and co-lead of the higher education practice at Bevan Brittan LLP.

A survey by the University and College Union found that more than one in five students could defer going to university this year – many worried that education quality could be impacted by increased use of online learning, and reductions in key academic staff.

This coincides with warnings that some of the UK’s 137 universities are now facing big losses across a range of income sources, investments and assets. The Institute for Fiscal Studies (‘IFS’) predicts possible insolvencies, particularly in those institutions that rely heavily on international student enrolments.

All this means that for human resources professionals working in higher education there is likely to be no let-up in the pace of upheaval and change. HR departments will need to continue to evolve and adapt to meet the longer term HE environment – dealing first with the challenge of returning staff to something approaching normal working arrangements, whilst accepting the challenges and opportunities that lie ahead.

Since lockdown in March, the speed with which the orthodoxy of previous HR systems and working patterns have had to change has been remarkable:

• Severe restrictions on the movement of staff and active steps to mitigate the risk of ill health from the virus
• The winding down of face-to-face teaching of students and staff interaction
• Huge increase in home and agile working arrangements
• Significant reliance on IT and the ubiquity of video conferencing platforms
• Strategies for managing the wellbeing of staff and maintaining contact with them
• Uncertainty around return to work policy including social distancing and one way movement of people around offices and campuses
• Furloughing of staff
• Planning the return of staff to campuses and workplaces
• Difficult issues around annual leave, pay and pensions.

Many of those issues won’t go away. However, in the next few weeks, the HR challenge has potentially two new phases. The first is the goal of deploying staff safely, imaginatively and effectively in order to enable institutions to reopen this Autumn – in line with all relevant laws, rules and regulations.

Tricky issues right now also include COVID-19 related absence and sickness; remote working permissions; overseas working; recruitment and new starters; appraisal and development process; COVID-19 immigration guidance, including quarantine arrangements; and right to work checks.

Secondly, longer term ‘people planning’ must find a strategic response to the fallout from COVID-19, and how to manage a workforce that reflects the new and difficult financial environment – as well as remote teaching and learning. 

Staff costs

The scale of government financial intervention to help employers is being wound down. The cost of the Coronavirus Job Retention Scheme (‘CJRS’) has been (and still is) enormous and is due to end in October. 

Many universities have applied a light touch to the extent to which they have used the CJRS, given their access to public funds (and the gentle discouragement from public bodies accessing the CJRS). But a number have nevertheless, made use of the scheme particularly for staff working in non-core support functions. 

Not all those staff can carry out their roles from home, and so their employers will need to enable them to return to work safely in the Autumn term or alternatively consider other ways of responding to the removal of government funding. This does tend to suggest that redundancies and other cost saving measures will have to be contemplated by many institutions in a way that was probably unthinkable just six months ago.

The financial pressure of COVID-19 adds another layer to what was already a financially quite stressed sector. As noted in the recent study commissioned by the IFS, a number of HEIs face financial pressures (and in some cases, the threat of bankruptcy) as a result of the double blow of a fall in the value of pension funds (linked to stock market performance) and a substantial reduction in numbers of foreign students (and a corresponding loss of revenue). 

Whereas the former may ultimately be seen as a temporary blip, the effect of COVID-19 restrictions on foreign students (coupled with the existing impact of BREXIT on student numbers coming from Europe) may have a longer-term impact on university funding. And whilst some universities may regard themselves as less affected by such factors, given the highly competitive nature of the UK HE market, the strain placed on certain sectors of that market will inevitably have consequences for the sector in general.

For institutions needing to make economies - apart from the threat of redundancies especially amongst non-core staff – other workforce repercussions might include the need to reduce or constrain pay and benefits – and the risk that this may precipitate industrial action.

Other HR concerns

Other issues affecting institutions immediately before COVID-19 struck are still pressing and potentially urgent.

• Pensions – one university, where the deficit has risen to £60 million, has included its pension shortfall among reasons for its recent decision to reduce its workforce by 150 full-time jobs. Other universities are reporting similar difficulties. Whenever an organisation goes through a period of financial stress, an often overlooked but significant component is pensions and the liabilities that come with that debt. Reviewing pension costs, risks and ensuring scheme structures are sustainable will be fundamental in keeping many universities solvent and able to operate.
• Equality and diversity – most institutions have publicly declared a commitment to improving equality and diversity in the wake of the Black Lives Matter movement, but solutions and programmes related to privilege and the effects of bias may need to be reviewed, upgraded and modelled to eliminate any attainment gaps and to drive further social mobility and access.
• Leadership roles – institutions may also need to examine progress in improving diversity in leadership roles, following recent reports showing there has been little progress in raising the number of non-white people in key positions.

Online learning 

Until the COVID-19 crisis, online learning comprised a relatively small share of higher education. Now, with the virus endemic in many countries, it is the ‘new normal’.

The sector is aware that lecturers are struggling to maintain the same depth of engagement with students they could have in a classroom setting. They need to find solutions - and fast - to avoid a dip in the quality of education they are providing.

The government says university students in England will still have to pay full tuition fees of up to £9,250 a year even if their courses are taught online in the Autumn. However, some students are unhappy about this, and a dip in enrolment is likely. For many, university is not just about education and gaining a degree – but also about new experiences, collegiate working and making friendships.

The challenge is whether or not traditional, campus-based universities can adapt by choosing the right technologies and long term approaches for educating and engaging their students. Most institutions have put in place comprehensive online systems to connect with their students, and provide the learning support to assist with ‘working from home’.

Remote learning may be just the first step towards a much more comprehensive offering in online education that has more effective student engagement tools and teacher training. Already, new partnerships sparked between universities, online education companies and tech providers are providing intriguing insights into future HE provision.

The opportunity now

While there are considerable and immediate problems in managing the COVID-19 emergency, there is a window of opportunity now for the HE sector (or at least, the more agile institutions) to emerge in a far better position than before the crisis began.

We still have some of the world’s best universities in terms of staff, tuition and research. HR professionals, who are responsible for recruiting and sustaining the human capital at universities, have an important role to play in the long-term success of their institutions, by tackling long standing issues, providing strong advise on reforms and supporting the sector at a time of turbulence and change.

Ashley Norman

Partner

Bevan Brittan LLP