Business Problems Faced By FE & Skills Training Providers
A recent news item in FE Week announced that ‘ A training provider is cancelling a near-£3 million adult education budget contract with a devolved authority and closing five training centres due to a lack of student demand.’ A spokesman for the training provider explained that ‘Potential learners just haven’t been able to commit to signing up’.
In another article it is stated that ‘On average, 30 out of every 100 students drop out of their training course. The fact is that students are herded towards further or higher education and on to courses that offer little possibility of improved job prospects. ‘
Learner Recruitment & Retention Problems
These two FE Week news stories highlight the fundamental learner recruitment and retention problems faced by training companies today. Despite increasing Government funding for training, enrollments on courses are stagnating and training providers continue to suffer with receding student retention rates.
From a learning point of view this scenario results in disenchanted, demoralised and frustrated students and tutors. From a financial point of view the distress is more tangible.
Reduced Cash Flow & Stunted Business Growth For Training Providers
Consider the marketing costs to attract the learners followed by the admin costs to actually enroll the students and also think of the operations, HR and payroll staff needed to mange the enrolment process. Further financial losses are incurred as providers savagely prune their payments to sub contracted providers due to unexpected technicalities.
And while training company staff deal with these issues, the resources needed to complete the bids and tenders that win the training delivery contracts are severely depleted.
Examining these issues is critical to understanding the contemporary learning environment. And only by understanding the challenges faced by our training provider clients can we come up with an effective solution to reduce stagnating enrolments and growing learner attrition rates
Training Company Sales Leads & Business Development
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