Bain analyzes more than 900 US higher ed
institutions; finds graduation rates can be misleading, data can
help institutions learn from schools that outperform
BOSTON, May 21, 2024
/PRNewswire/ -- Graduation rates and student earnings data are not
enough to assess the performance of higher education institutions,
according to new research released today by Bain &
Company.
During its analysis of more than 900 US higher ed institutions,
Bain found that differences in student body mix such as underlying
readiness for college and cost of living, as well as geographic
location, can mask which institutions excel in terms of student
outcomes.
"More than a third of college students fail to graduate within
six years of enrolling and many don't see the growth in their
income necessary to provide a strong return on investment," said
Jeff Denneen, global head of Bain's
Higher Education practice. "Colleges and universities need to
change track and focus on the interventions that matter most to
delivering better student outcomes. Our research identifies four
areas higher education leaders should focus on if they wish to
provide the most value to students. For example, universities can
leverage advanced analytics to avoid students slipping through the
cracks due to their socio-economic circumstances. By helping all
their students succeed, universities can create a virtuous cycle of
differentiation and increased demand."
Predicting student outcomes
As part of its analysis, Bain built a tool that assesses student
outcomes and performance of public and private four-year
institutions while controlling for student body characteristics and
socio-economic factors. Many institutions outperform expectations
that are often impacted by factors, such as family income and
education history, academic preparation, full or part-time status,
or racial, ethnic, and gender demographics. There is a strong
relationship between actual and predicted outcomes, Bain found.
"The media, policymakers, and general public are starting to
talk much more about outcomes than student debt and tuition, but
most reports aren't considering the full story," said Mark Krafft, Bain partner and member of Bain's
Higher Education practice. "Many colleges and universities aren't
getting enough credit for the outcomes that they support their
students to achieve because they are working with student bodies or
in geographies with historically lower graduation rates and career
outcomes. People talk about the impressive graduation rates and
starting salaries from the top ranked universities while most of
those students were destined to succeed regardless of the
institution. Our analysis allows us to tease that apart so that we
can better understand who is helping students succeed the
most."
Four areas for success
Four critical areas that higher
ed leaders should prioritize if they wish to improve student
outcomes according to Bain include:
- Make student outcomes leadership's top priority:
Announce publicly that student outcomes are the top institutional
priority, and shift time, attention, and resources accordingly.
Boosting student outcomes requires sustained support from an
institution's board and senior leadership.
- Address systemic barriers to student success: Map the
student journey from admission to graduation to tackle barriers
preventing students from succeeding. These can include internal
barriers such as complex course registration or degree
requirements, and external barriers such as financial need, mental
health challenges, and family obligations.
- Implement a strong career-connected learning strategy:
Prepare students for successful careers and lives through a
combination of classroom learning and real-world experiences.
Partner with employers to determine the skills and experiences they
value most.
- Employ data to set targets and inform the approach: Use
data to understand institution- and department-level student
outcomes and set realistic improvement targets.
Media Contacts:
Katie Ware (New York) — Email: katie.ware@bain.com
About Bain & Company
Bain & Company is a global consultancy that helps the
world's most ambitious change makers define the future.
Across 65 cities in 40 countries, we work alongside our clients
as one team with a shared ambition to achieve extraordinary
results, outperform the competition, and redefine industries. We
complement our tailored, integrated expertise with a vibrant
ecosystem of digital innovators to deliver better, faster, and more
enduring outcomes. Our 10-year commitment to invest more than
$1 billion in pro bono services
brings our talent, expertise, and insight to organizations tackling
today's urgent challenges in education, racial equity, social
justice, economic development, and the environment. We earned a
platinum rating from EcoVadis, the leading platform for
environmental, social, and ethical performance ratings for global
supply chains, putting us in the top 1% of all companies. Since our
founding in 1973, we have measured our success by the success of
our clients, and we proudly maintain the highest level of client
advocacy in the industry.
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