INTERNATIONAL STUDENT SURVEY 2015

Transcription

1 INTERNATIONAL STUDENT SURVEY 2015 Value and the Modern International Student Hobsons EMEA, September Share this report #HobsonsInsights

2 Contents Context 3 Framework 4 Recommendations 6 CHAPTER 1: WHAT IS VALUE? The concept of value 9 The value of outcomes to the student 11 The value of experience to the student 13 CHAPTER 2: THE ROLE OF VALUE IN STUDENT DECISION-MAKING The most important objective for getting a higher education 16 The added value of international students studying in the UK 17 Student decision-making: trading off factors 19 The decision-making journey: it starts early 20 Who influences the decision to study overseas? 22 The value of league tables 23 CHAPTER 3: COMMUNICATING WITH THE MODERN INTERNATIONAL STUDENT Communication preferences 26 The role of agents 28 The role of social media 30 CHAPTER 4: COMPETING GLOBALLY HOW STRONG IS THE UK S VALUE PROPOSITION? What makes international students choose to study in the UK? 33 Where are prospective students going and why? 37 FOCUS FORWARD AND FUTURE-PROOF Concluding thoughts 41 How Hobsons can help you 42 Our next steps 42 2

3 Context Paul Clark Regional Director, Hobsons EMEA There are more students than ever before looking to study overseas and an equally fast-growing crowd of institutions seeking to attract them. Whatever your type of institution, course offering or recruitment channel whether you recruit directly, through agents or by building partnerships the challenges are substantial and growing. Competition for students is global, the cost of recruiting new students is rising and international students options are increasing. In previous #HobsonsInsights research we identified that international students are far from being a homogenous group, with motivations and expectations varying considerably. To be successful in international student recruitment, institutions must understand these differences and tailor marketing efforts to meet the differing needs of each prospective international student. The opportunity for UK institutions is in understanding how international students define value and connecting their offering and messaging appropriately. In this year s International Student Survey, we heard from 45,543 prospective international students from 210 countries and 207 nationalities, of whom 17,336 had enquired to UK institutions. Our research has allowed us to understand international students perceptions of value and provide a detailed set of recommendations, setting out the value that prospective international students place on an international education and, more specifically, what the UK can do to stand out in an increasingly competitive marketplace. 3

4 Framework Hobsons surveyed a large cohort of international prospects for the UK, Australian and Malaysian markets who had applied for or enquired about study in We asked about their perceptions and expectations of international study. We received: Global survey UK survey 45,543 17,336 responses from prospective international students responses from students considering studying in the UK countries countries nationalities nationalities 4

5 Our largest respondent cohorts for the UK survey were: 3% China United States 3% Egypt Ghana 3% 5% Pakistan 4% India 6% 10% Nigeria Malaysia 2% Brazil 2% Indonesia 2% Key statistics 47% 53% female male 89% off-shore students (not domiciled in the UK) 28 subject groups 36% undergraduate study 59% postgraduate study 84% interested in full-time study 25% interested in Massive Open Online Courses (MOOCs) 5

6 Recommendations 1Recommendation 1: Focus on employability skills UK institutions need to recognise and respond to the strong demand for courses that provide tangible, marketable skills that equip students for success in the global workplace. Our institutions must show that they can do this better than any other country and promote the benefits of living and studying on UK soil. Given the lack of post-study work options, students must have access to programmes and opportunities to gain work experience and boost their employability, such as organised work placements. 2Recommendation 2: Promote soft experiences and hard outcomes Institutions must recognise that prospective students will actively judge courses and providers on the experiences they can provide, looking in particular at factors such as opportunities for face-to-face interaction with academic staff and personal networking. To appeal to the modern international student, institutions must work harder to spell out the relationship between developing soft skills and increasing employability. 3Recommendation 3: Communicate value in a tangible way Although institutions aren t able to easily influence their ratings in the short term, the benefits of ranking highly are clear high proportions of students use league tables to inform the decisions they make about where to study. Equally important, especially for institutions that rank poorly or not at all, is providing students with context around the rankings they received, or demonstrating accolades outside of rankings systems. This could be industry accreditations, alumni success or differentiators against core competitors. 4Recommendation 4: Communicate one-to-one Institutions must use digital technologies and channels to engage directly with international students, seeking to more fully own the relationship with prospects regardless of whether an agent is involved in the process. 6

7 5Recommendation 5: Segment and target A successful recruitment and marketing strategy must operate in a highly targeted and personalised way, responding to the needs and motivations of each individual student. The most forwardthinking institutions are increasingly utilising modern marketing methods such as customer segmentation and personalised digital marketing, achieving just that. This delivery can be facilitated through marketing automation and balanced personal intervention. Use of dynamic content provides further support in making content more relevant to the individual and manageable from an institution perspective. 6Recommendation 6: Start early by engaging with younger students Institutions must speak to the younger cohort those who are not the most obvious prospects just yet. Playing the long-term game and targeting prospective students earlier could be an effective strategy in building commitment and loyalty from an earlier age. 7Recommendation 7: Focus on the whole network, not just the student When engaging with prospective students, it s important for institutions to understand that parents, career advisers, friends and family often have a decisive role in shaping the student s decision. While these influences are secondary, arming the prospect with the ability to manage parental and other influencer objections is the best possible move. 8Recommendation 8: Post-study work rights act now or spend years rebuilding the sector UK institutions must send the government a clear message on post-study work rights. Failure by government to improve the current status of work rights will see revenue generation from international students decline and rapidly. International student revenue is something UK institutions have long relied on, with the long-term effects of a decline likely to take decades to rebuild. Without this form of revenue, the UK government will be forced to provide additional institutional funding or institutions may not survive. Hobsons calls on the government to address the revenue divide that will inevitably be created by its lack of understanding of international student contribution, as well as its unwillingness to consider a practical solution. 7

8 CHAPTER 1: WHAT IS VALUE?

9 The concept of value When it comes to higher education, a universal definition of value is complex. In its simplest form, value can be seen as the cost of a product or service in this case, a degree qualification measured against the return that it provides. For those of us seeking to understand what value means to prospective students at the decision-making stage, this immediately presents a problem. Most benefits of a degree aren t realised at a single, measureable point in time but over the course of a graduate s lifetime. This means that, while it is well established that those who complete tertiary education go on to enjoy higher-than-average earnings, these benefits can only be measured across entire populations. Another consideration of value is as the broader concept of worth or usefulness to an individual, looking at this in terms of what they themselves consider most important. This definition of value provides us with a useful framework for understanding the nuances of preference and perception that come into play when students make decisions about where and what to study, primarily because it recognises that the calculus will be a little different for each person. Our aim is to more clearly understand what international students see as useful, worthwhile and valuable about studying internationally; how this informs their decision-making; and how the UK stacks up against its global competitors in its ability to meet the needs of international students in So, what does value mean to the modern international student? 9

10 We spoke to 17,336 prospective international students who were thinking about studying in the UK, asking about the importance of a broad range of possible benefits of higher education (Figure 1). FIGURE 1: HOW IMPORTANT OR UNIMPORTANT ARE THESE FACTORS WHEN THINKING ABOUT HIGHER EDUCATION? Our data suggests that students see value as a result of both outcomes and experiences. 90 per cent of respondents said improving future earning potential is highly important, very important or important. 90 per cent said getting a job when they graduate is highly important, very important or important. 90 per cent said face-to-face interaction with their course leader is highly important, very important or important. 83 per cent said making personal connections with other students is highly important, very important or important. International students value tangible outcomes such as earning potential and employability highly, but they also place significant importance on factors linked to the human experience of higher education, such as the opportunity to build interpersonal relationships with academic staff and fellow students. 10

11 The value of outcomes to the student Segmenting the results by the main contributor countries of international students to the UK reveals some interesting differences (Figure 2). FIGURE 2: IMPORTANCE OF HIGHER EARNING POTENTIAL (TOP 10 NON-EU COUNTRIES) The results for these countries fall in a narrow 11 per cent range, with the wealthiest country Singapore showing the lowest share of students who say higher earnings are important (82 per cent), with one of the poorest countries Nigeria presenting the highest share (93 per cent). The main finding from this data is that students from poorer countries tend to see increasing their future earnings as more important than those in wealthier countries. FIGURE 3: CORRELATION BETWEEN IMPORTANCE OF HIGHER EARNINGS AND WEALTH OF HOME COUNTRY 11

12 FIGURE 4: IMPORTANCE OF BETTER EMPLOYMENT PROSPECTS (TOP 10 NON-EU COUNTRIES) Across all 10 leading non-eu contributor countries at least 80 per cent of prospects rated improving their employment prospects as important, very important or highly important. Taking a look at results for higher earning potential, it is prospective students from wealthy countries such as the United States (96 per cent), Canada (95 per cent) and Singapore (93 per cent) who rate this factor as most important. 12

13 The value of experience to the student Our results show that international students are not only motivated by advancing their future careers and earning potential. What stands out is that factors relating to the experience of university such as face-to-face interaction with course leaders score almost as highly as factors relating to hard outcomes, such as higher earning potential. This is by no means a contradiction. With employers increasingly looking for graduates with soft skills, it appears that international students are well aware of the value of gaining interpersonal skills to enhance their employability. Face-to-face interaction is most important to students from Malaysia (94 per cent), India (92 per cent) and the United States (90 per cent), but is viewed as somewhat less important by students from Hong Kong (75 per cent). FIGURE 5: IMPORTANCE OF FACE-TO-FACE INTERACTION WITH COURSE LEADER (TOP 10 NON-EU COUNTRIES) When it comes to the importance of making personal connections, students from the United States and Singapore (85 per cent), and Malaysia (84 per cent) rated this factor as more important than the global average of 83 per cent. Those from Saudi Arabia and Pakistan (each 73 per cent) rated the value of personal connections significantly below the global average. 13

14 FIGURE 6: IMPORTANCE OF MAKING PERSONAL CONNECTIONS (TOP 10 NON-EU COUNTRIES) All of this points to some remarkable lessons for the sector. While institutions have long sought to demonstrate the value of degrees in terms of better graduate outcomes and higher earning potential a strategy that these results endorse there has typically been much less focus on promoting the ways in which they can help students develop softer employability skills. Our results show that these employability skills are seen as extremely important by prospective international students. Institutions must recognise that prospective students will actively judge courses and institutions on this basis, looking in particular at factors such as opportunities for face-to-face interaction with academic staff and building personal networks with fellow students. At a time when alternative providers and Massive Open Online Courses (MOOCs) are growing in importance, this presents a golden opportunity for providers of on-campus degrees to push their key selling point: the unique and rich human experiences they can offer. Crucially, appealing to the modern international student requires institutions to explicitly spell out the relationship between developing soft skills and increasing employability, as well as the integration of modern technology in course delivery. 14

15 CHAPTER 2: THE ROLE OF VALUE IN STUDENT DECISION-MAKING

16 The most important objective for getting a higher education When asked to identify the single most important objective for getting a higher education, the top response selected was continue my learning and development. This is the case for each of the top 10 contributor countries, excluding respondents from Hong Kong and India where broaden my learning horizons is the leading result. Improving my employment prospects ranks as the third most selected main objective. FIGURE 7: PRIMARY OBJECTIVE FOR GETTING A HIGHER EDUCATION (RANKED BY SHARE OF RESPONSES) These results support the view that international students have a broad perception of value. They are not solely focused on outcomes such as improved employment prospects or greater earning potential, also placing importance on the academic experience, broadening horizons and determining future opportunities. This result gives rise to a student profile of student/academic for life a cluster that will pursue postgraduate, research and further continuous study opportunities. The fact that varying objectives are given top priority by different country groups supports the argument that international students are exceptionally diverse. For example, while broadening learning horizons takes out top spot among Hong Kong and Indian students, it s only the fourth priority for those from Canada, China and Singapore. The opportunity to continue learning and development is the only category with near universal agreement as a number one priority. To attract the modern international student, institutions must recognise that prospects are not a uniform group, instead encompassing broad range of needs, interests and objectives. This means that a successful recruitment and marketing strategy must operate in a highly targeted and personalised way, responding to the requirements and motivations of each individual student. The most forward-thinking institutions are increasingly using modern marketing methods such as customer segmentation and personalised digital marketing to do just that. Serving dynamic content to prospective student profile groups is also valuable and should not be overlooked in the modern marketing tool kit. 16

17 The added value of international students studying in the UK Having started to build a picture of what matters most to the many and varied international student segments, our next set of results looks at the added value that international students believe studying overseas will deliver. We asked students to rate the amount of additional value, on a percentage scale, that they felt studying away from their country of residence would provide in 11 different areas. The table below illustrates the proportion of students whose answers fell in the first quintile (largest amount of added value) and the fifth quintile (smallest amount of added value). FIGURE 8: PERCEIVED ADDED VALUE OF STUDYING ABROAD (TOP AND BOTTOM QUINTILES) This enables us to rank each of the 11 factors based on students overall perception of how much value they expect studying overseas will add to their personal brand. The results show that the largest proportion of students (71 per cent) felt that studying abroad would have a significant impact on improving their overall skill set. This was followed by improving English language skills and overall career prospects (67 per cent), and improving chances of employment (65 per cent). An interesting finding for the UK is that international students do not generally perceive studying abroad to improve their likelihood of migration or permanent residency this factor had the highest proportion of students (51 per cent) in the fifth quintile, stating that studying overseas would have little impact on improving their prospects. 17

18 The higher education sector should continue to lobby for international students to be excluded from government migration targets and champion the cultural and economic benefits that foreign students bring. Our research makes clear that, for most students, studying in the UK is not seen as a route to permanent migration. This could also be a result of the limited options for international students to migrate from what we can tell, it s likely that they want to migrate but there simply isn t a pathway available to do so. It s evident that international students firmly believe that studying at an overseas institution will deliver significant benefits to their employability, and it s important for institutions to match this expectation by developing and delivering programmes and courses that deliver genuine value in these areas. Courses must focus not only on academic success but on helping students to build the broad range of skills and experience that contribute to employability. Institutions need to recognise and respond to the strong demand for programmes that provide tangible, marketable skills that equip students for success in the global workplace. The UK must show it can do this better than any other country, and promote the benefits of living and studying in the UK over any other English-speaking country. 18

19 Student decision-making: trading off factors To get a better understanding of the most important components of choice for prospective international students, this year s International Student Survey included a conjoint analysis. Respondents were required to choose between a series of hypothetical course and institution options, using information about the subject and institution ranking, graduate employment rate, price and graduate starting salary. When presented with a pair of choices, respondents chose the option that was most appealing. By analysing the choices respondents made through a conjoint analysis we are able to show the relative importance of each of these five factors in the decision-making process. FIGURE 9: RELATIVE IMPORTANCE OF FACTORS IN STUDENT DECISION-MAKING Our analysis shows that subject ranking is the most important factor in the decision-making process, with a score of 26 per cent. This is followed by graduate employment rate, which has a relative importance of 22 per cent. Future employment prospects are at the forefront of students minds when making decisions about their education, underlining the importance of institutions making this information readily accessible. Institution rankings follow at 19 per cent, lending weight to our finding in previous International Student Survey reports that rankings are the second most important factor when determining perceptions of institutions teaching quality. The cost of study has a relative importance score of 17 per cent. Price will always play a role in decision-making, but our analysis shows that it is not the primary factor for international students when considered alongside other components of choice. When actively engaged in the process of trading off different factors to make an institution choice, price is only the fourth most influential factor of five. The least influential factor is graduate starting salary, at 16 per cent. Taking a look at where it sits as a priority compared to graduate employment, this presents a compelling argument. Students are more concerned with obtaining a role after completing their course of study than the salary it will bring. 19

20 The decision-making journey: it starts early Students put significant effort into researching courses and institutions and they start early. For a large proportion of students, this is several years before they enter tertiary study. This means that institutions need to play the long-term game if they want to continue to attract international students. Although the largest proportion of students (38 per cent) begin considering their higher education options between the ages of 16 and 20, our data shows that 45 per cent start the research process aged seven to 15. Of this 45 per cent, 30 per cent note commencing research between the ages of 11 and 15, making 11 the optimal time for institutions to engage and begin building a relationship. FIGURE 10: AT WHAT AGE DID YOU FIRST START THINKING ABOUT HIGHER EDUCATION? Segmentation by country reveals interesting differences in research windows. FIGURE 11: AT WHAT AGE DID YOU FIRST START THINKING ABOUT HIGHER EDUCATION? (TOP NON-EU CONTRIBUTOR COUNTRIES) Students from the United States and Canada start thinking about higher education at the earliest age, with 36 per cent of US and 29 per cent of Canadian children entering the research process between the ages of seven and 10. High proportions of students also begin considering study options between the ages of 11 and 15, at 38 per cent (US) and 36 per cent (Canada). 20

21 Again illustrating the great diversity of international student groups, Indian and Pakistani students are shown to start thinking about higher education at a much later stage 16 to 20 for 47 per cent of Indian students and 48 per cent of Pakistani students. Just seven per cent of Indian and five per cent of Pakistani students start thinking about higher education between the ages of seven and 10, but proportions grow at ages 11 to 15 (20 per cent and 18 per cent respectively). The overall message is clear: institutions must speak to a younger cohort. It is crucial to consider those who are not the most obvious prospects but who require initial support and guidance as they begin investigating their options. Playing the long-term game and targeting prospective students at a more preliminary research stage could be an effective strategy in building commitment and loyalty from an earlier age. Reaching students in the younger cohorts through direct, personalised marketing is difficult they aren t heavy users of and social media and, until they reach high school age, can t be targeted through digital advertising networks. It can also be assumed that these students aren t weighing up their career options too seriously. Nonetheless, it is crucial to build a connection early. Initial consideration is the beginning of a long journey and, without doubt, parents are starting to thinking about their children s post-school options. Targeting parents through digital advertising, affiliate websites and direct institution promotion with secondary schools is a way for institutions to get in front of parents early. Also marketing adverts through commonly played children s ipad applications is a way to reach children at an early age digitally. 21

22 Who influences the decision to study overseas? We asked prospective international students to name the biggest influence on their decision to study overseas. Among respondents considering studying in the UK, 74 per cent credited themselves as the primary influence. Remarkably, this means that for a full quarter of prospective students, another party is the biggest influence. Parental influence is the most significant player here, at 10 per cent. FIGURE 12: WHO WAS THE BIGGEST INFLUENCE ON YOUR DECISION TO APPLY TO STUDY OVERSEAS? The picture is even more pronounced for certain source countries, with segmenting results by nationality revealing that 40 per cent of prospective Chinese students say someone other than themselves was the biggest influence on their decision to study abroad. At 43 per cent, this number is even higher for prospects from Hong Kong. FIGURE 13: WHO WAS THE BIGGEST INFLUENCE ON YOUR DECISION TO APPLY TO STUDY OVERSEAS (TOP 10 NON-EU CONTRIBUTOR COUNTRIES) Engaging with students requires a considered approach by the institution, with an understanding that external parties often play a significant role in a student s decision to pursue study abroad. Making the decision to study overseas can be difficult, meaning that parties such as parents, other family, career advisers and friends play a big role in supporting and influencing students decisions. 22

23 The value of league tables In the last International Student Survey, published in 2014, students told us that rankings were the most important of seven factors that informed their view of an institution s teaching quality. We found that students look at subject rankings first, then those of the institution as a whole. Students looking to study in the UK also noted that academic reputation or ranking was the most important criteria that would influence a choice between two institutions. This year, we asked students to name the league tables they used when comparing subject or institution rankings and ratings. What we found is that students primarily use a small number of powerhouse rankings systems, although there are significant variations by nationality. FIGURE 14: WHEN COMPARING THE RANKINGS AND RATING OF INSTITUTIONS OR PARTICULAR SUBJECTS, WHICH WEBSITES OR LEAGUE TABLES DO YOU REFER TO? The Academic Ranking of World Universities (ARWU) is the top league table overall, with 43 per cent of prospective international applicants to UK institutions noting they had consulted it during their research stages. Times Higher Education (THE) World University Rankings come next, at 33 per cent, followed by the Professional Ranking of World Universities at 30 per cent. The popularity of ARWU, also known as the Shanghai Jiao Tong Index, is more than just the result of its popularity among Chinese students. Excluding Chinese students from the respondent pool, this decreases only slightly to 42 per cent. Among Chinese students alone, it rises to 50 per cent of respondents. There are, however, significant differences in the popularity of rankings systems when conducting a by-country analysis. Students from China, India and the United States, for instance, all put different league tables in first position. Likewise, the Times Higher Education (THE) World University Rankings are the most widely consulted by Indian students, at 45 per cent of the pool, which compares to just 27 per cent of prospective students from the United States. 23

24 FIGURE 15: TOP LEAGUE TABLES FOR CHINESE INTERNATIONAL STUDENTS The QS World University Rankings are the second most referred to among both Chinese (43 per cent) and Indian students (38 per cent), but rank lower in the general respondent pool (28 per cent) and sit at fourth place overall. FIGURE 16: TOP LEAGUE TABLES FOR INDIAN INTERNATIONAL STUDENTS The U.S. News Best Global University Rankings score highest among United States students (65 per cent), with the Times Higher Education (THE) World University Rankings coming in at second place (27 per cent) and the ARWU at third (23 per cent). FIGURE 17: TOP LEAGUE TABLES FOR UNITED STATES INTERNATIONAL STUDENTS Although institutions aren t able to easily influence ratings in the short term, the benefits of a presence in league tables are clear. High proportions of students use rankings systems to inform the decisions they make about where to study, due in large part to their ability to present complex data in an easy-to-digest format. Equally important, especially for institutions that rank lowly or not at all, is providing students with details of initiatives that address a road map for improvement of the rankings they received. 24

25 CHAPTER 3: COMMUNICATING WITH THE MODERN INTERNATIONAL STUDENT

26 Communication preferences In our previous research, we showed that today s prospective international students are among the most wellconnected and digitally engaged groups in the world. These students are digital natives and many have never experienced an environment lacking internet connectivity. This means that when it comes to communication, they have fundamentally different expectations than students did 20, 10 or even five years ago. Communication habits and preferences, particularly using digital channels, are constantly changing. The bad news is that universities are simply not keeping up. Although awareness of modern students new demands is growing, universities have sometimes been slow to adopt new technologies and different ways of engaging with prospects. When building a communications strategy, it is vital that institutions understand the frequency at which prospective students would like to be contacted. Hobsons findings show that, across all stages of the enquiry-to-enrolment cycle, the largest number of students prefer weekly communication. During the initial stages of the decision to study, 43 per cent of students want to be contacted weekly, while 24 per cent prefer monthly contact and 12 per cent daily. After submitting an application, the percentage of students wishing to be contacted weekly grows to 53 per cent. This is similarly high for those having received an offer, at 50 per cent, and 40 per cent following the commencement of study. FIGURE 18: HOW OFTEN DO YOU WANT TO BE CONTACTED AT EACH STAGE OF YOUR APPLICATION PROCESS? Looking at the results by the top 10 non-eu contributor markets to the UK shows that this pattern is fairly consistent across each nationality (Figure 19). FIGURE 19: HOW OFTEN WOULD YOU LIKE AN INSTITUTION TO CONTACT YOU DURING THE INITIAL STAGES OF YOUR DECISION TO STUDY? (TOP 10 NON-EU CONTRIBUTOR COUNTRIES) 26

27 FIGURE 20: HOW OFTEN WOULD YOU LIKE AN INSTITUTION TO CONTACT YOU AFTER YOU SUBMIT AN APPLICATION? FIGURE 21: HOW OFTEN WOULD YOU LIKE AN INSTITUTION TO CONTACT YOU AFTER YOU RECEIVE AN OFFER? 27

28 The role of agents With education agents an important stakeholder of the international student recruitment landscape in the UK, it s important for institutions to understand the subsequent benefits and drawbacks. The cost to UK higher education institutions is considerable, with spending on agents totalling 86.7 million in , equivalent to an average of 1767 per international student. The statistics point to this being a continuing trend, as use of agents has increased by 6.4 per cent in the two years from to Our survey, primarily covering students at the enquiry stage, found that 35 per cent of those considering the UK plan to use an education agent during their enrolment process. There are considerable nationality-based variations in expected agent use, with 49 per cent of students from Malaysia, 47 per cent from China, 45 per cent from Hong Kong and 43 per cent from India noting that they would require an education agent. Among students from the United States, this falls to just 24 per cent. FIGURE 22: DO YOU PLAN TO USE AN EDUCATION AGENT AT ANY STAGE OF YOUR ENROLMENT? (TOP NON-EU CONTRIBUTOR COUNTRIES) For many students, the decision to contact an education agent follows the process of making a number of key choices about their education. Among those students who used an agent, 33 per cent contacted their agent after deciding to study abroad, 18 per cent after they had chosen an institution and 16 per cent after they had selected a course or country (Figure 23). 28

29 FIGURE 23: AT WHAT POINT DID YOU INITIALLY CONTACT YOUR AGENT? Given the increasing reliance of UK institutions on education agents, it is notable that very few students view agents as the key influence on their decision to study in a particular country. Only one per cent of respondents say an agent was the primary influence on their decision. All of this raises one question: why are so many students using agents? If the majority expect not to need one, while those who do will engage an agent late in the decision-making process, it is interesting that use is still so widespread. This is particularly compelling when considering that just one in a hundred students count agents as a key influence. One possibility is that students use agents because they feel unable to navigate the enquiry and application process independently. Another potential reason is that, in many cases, institutions require students from some particular countries to apply via agents. In place of sole reliance on study abroad partnerships and agents as recruitment channels, institutions should use digital technologies to engage directly with international students. They must seek to own the relationship with prospects, with or without agent involvement. 29

30 The role of social media Digitally savvy international students are increasingly turning to social media to find information about global study destinations and institutions. Our research shows that students use and expectations of social media are extending far beyond what it offers as an informal space, with these channels now rivalling traditional methods as a tool for prospective students to research their study options. FIGURE 24: HOW USEFUL IS SOCIAL MEDIA IN THE HIGHER EDUCATION RESEARCH PROCESS? Overall, students agreed most strongly that social media can assist them to meet students who are also applying to the same institution (40 per cent strongly agree). Interestingly, prospective students also see social media as an effective means of researching official facts and figures (34 per cent) and, in contrast, unofficial opinions (33 per cent). This challenges the assumption that prospective students don t see social media as a formal research tool. On the contrary, it holds significant value as a tool to collect a broad range of information, from academic rankings and reputation (27 per cent) to information about links with employers (21 per cent). 30

31 FIGURE 25: SOCIAL MEDIA ADVICE FROM PROSPECTIVE INTERNATIONAL STUDENTS Anecdotal feedback from students reinforces the view that they are looking for a broad selection of information to be available on social media. Show snippets of lectures on YouTube, showcase career fairs of your university on Facebook [and] promote alumni employment statistics on Instagram. Prospective student, Business and Management India Facebook is an excellent platform to show what a university offers; Twitter can encourage interaction between universities, prospective students and industries; [and] LinkedIn is a perfect place to show the profile of universities, staff and relationships with other institutions. Prospective student, Environmental Studies Nigeria Make communication more personal with the students overseas they want to feel at home with the university. Prospective student, Medicine Ecuador Make more posts useful for international students planning to join your university. Prospective student, Digital Animation India 31

32 CHAPTER 4: COMPETING GLOBALLY HOW STRONG IS THE UK S VALUE PROPOSITION?

33 What makes international students choose to study in the UK? To understand the strength of the UK s value proposition, we asked prospective students to rank the five most important criteria for choosing one country over another. The results show that they choose a destination country based on four main factors: quality and recognition affordability post-study options safety and hospitality. FIGURE 26: WHAT WERE/ARE THE FIVE MOST IMPORTANT CRITERIA IN YOUR DECISION TO PICK ONE COUNTRY OVER THE OTHER? Quality and recognition are key for prospective international students when choosing between countries. More than half (52 per cent) noted that international recognition of qualifications is important, while 50 per cent placed importance on the quality of education compared to their home country. When choosing a country, international students want to be sure that they are getting a higher standard of education than they would receive in their home country and that their qualifications will be recognised globally wherever they choose to work or pursue further study. 33

34 Next comes affordability, with 43 per cent of prospective students saying availability of scholarships would influence their choice of country, 28 per cent saying the ability to work while studying is important and 26 per cent saying that living expenses are a factor. Having assured themselves of the quality and recognition of programmes available in a particular country, international students want to know that there are viable options for funding their stay be they scholarships, part-time work or affordable living costs. Thirdly, prospective students are influenced by the options open to them after graduation. More than a quarter (26 per cent) say post-study work options are a decisive factor, while a near equal 25 per cent note that improving job prospects in the destination country is influential. The same percentage of respondents place importance on improving job prospects in their home country, showing that, while migration is certainly an objective for international students, students still place considerable weight on opportunities back home. Safety and hospitality towards international students forms the fourth cluster of factors that influence choice of country. Personal safety and the country s attitude to international students are influential factors for 24 per cent and 22 per cent of prospective students, respectively, with students wanting to know that they will be safe and welcome in their destination country. Both at institution level and within the tertiary sector as a whole, there is a need to ensure that the UK projects a strong welcome to prospective international students and provides assurances about the safety of the study experience. FIGURE 27: MOST IMPORTANT FACTORS IN COUNTRY CHOICE BY RANK 34

35 Segmenting these results across the full ranking scale (1 to 5) shows that the quality of education compared to home country is ranked as the most important factor by the highest share of respondents (35 per cent), followed by availability of scholarships (34 per cent) and international recognition of qualifications (28 per cent). As well as being important to the highest number of students, these factors are most often ranked as the number one reason for choosing a country. The next three charts break down the responses for these factors by some of the main non-eu contributor countries to the UK market. International recognition of qualifications is fairly consistently weighted across all countries (Figure 28), as is quality of education (Figure 29). FIGURE 28: INTERNATIONAL RECOGNITION OF QUALIFICATIONS BY RANK (TOP NON-EU CONTRIBUTOR COUNTRIES) FIGURE 29: QUALITY OF EDUCATION COMPARED TO HOME COUNTRY BY RANK (TOP NON-EU CONTRIBUTOR COUNTRIES) Data relating to availability of scholarships shows a greater difference between source countries, with students from Pakistan rating scholarships as most important in 42 per cent of cases, compared to only 15 per cent for the United States and 20 per cent for China. 35

36 36 FIGURE 30: AVAILABILITY OF SCHOLARSHIPS (TOP NON-EU CONTRIBUTOR COUNTRIES)

37 Where are prospective students going and why? The UK faces some stiff competition when it comes to attracting and recruiting international students. Nearly a third of students surveyed by Hobsons (32 per cent) said they eventually chose to study elsewhere 27 per cent in another country and five per cent in their home country. FIGURE 31: FINAL DESTINATION OF UK PROSPECTS There are notable differences among some of the main contributor markets, with 79 per cent of Nigerian prospects eventually deciding to study in the UK, compared to 60 per cent of Indian students and 59 per cent of United States students (Figure 32). Nigerian students who apply to study in the UK are fairly unlikely to study elsewhere, whereas Indian students are substantially more mobile more than a third (34 per cent) choose to study in another country. Also of note is that 10 per cent of prospective international students from the United States eventually decide against studying abroad and opt for domestic universities. Looking to the future, UK institutions face competition on multiple fronts not only from major competitive markets but from prospects home countries. As higher education systems in the developing world expand, and teaching standards and international recognition improve, it s likely that greater numbers of students will see staying at home as a viable option, particularly in markets such as India. FIGURE 32: FINAL DESTINATION OF UK PROSPECTS FROM KEY MARKETS 37

38 Among prospects who chose not to study in the UK, and excluding those who stayed in their home country or are no longer studying, the United States is the top destination at 28 per cent (Figure 33). Canada and Germany are tied at 11 per cent, while other EU countries and Australia both account for nine per cent. The US has always fared well, despite its lack of strategy aimed at international student recruitment, predominantly with the Chinese student population. With pending six-year post-study work rights on the agenda, aimed at those seeking to study STEM degrees, international student demand for the US will continue to grow. Canada has made it clear that international student recruitment is a priority, recently making changes to work rights for current and graduating international students. This is making Canada increasingly attractive to prospects. Likewise, Germany is seeing year-on-year growth in international student numbers and receiving much positive global press due to its scrapping of tuition fees. Australia, meanwhile, remains the UK s biggest direct competitor for market penetration. Australia currently has favourable post-study work rights, a clear strategic government push for international recruitment in forming a body of ownership and a 20-year low dollar. The latter means that Australia is becoming more and more affordable for students considering an overseas experience. FIGURE 33: DESTINATION OF UK PROSPECTS WHO CHOSE TO STUDY ELSEWHERE 38

39 To understand this more clearly and in greater depth, we asked students who considered but chose not to study in the UK why they made this choice. FIGURE 34: REASONS FOR NOT STUDYING IN THE UK Post-study work options were the leading factor for these students, with 36 per cent saying this played a part in their decision not to study in the UK. With international students so focused on their employment prospects beyond graduation, it s vital that institutions show that their programmes will have a real impact on future employability. Although post-study work rights may be off the table for most institutions, the government must be sent a clear message. Failure to improve post-study work opportunities will see revenue generation from international students rapidly decline, with this revenue something UK institutions have long relied on. The long-term effects and rebuild could last decades. Without this form of revenue, governments will be forced to provide additional institutional funding without it, institutions may not survive. 39

40 FOCUS FORWARD AND FUTURE-PROOF

41 Concluding thoughts The International Student Survey provides institutions with great insight into value and the modern international student. Conducting this research has allowed us to understand that: value is a multi-faceted concept prospective international students see value in different ways depending on their background, influences, objectives and ambitions. Broadly, this means that there is no single answer to the question of what international students value. At a more granular level, our findings reveal some broad themes and patterns that provide a framework for understanding students who consider an overseas study experience. Prospective international students are concerned above all with their employability after graduation. They understand that, in the global workplace, employability is about much more than academic results. They recognise that employers are looking for well-rounded, smart and capable individuals not just a degree transcript. Rather than simply focusing on measures such as the graduate employment rate of a particular institution, international students want to understand how that institution will help them to develop the soft skills sought after by employers. Institutions must meet this demand from international students and ensure that opportunities to develop employability skills are embedded in the DNA of every student s programme and, having invested in such opportunities, the next step is to work hard to communicate these offerings to prospective students. Support and acknowledgement of employability skills, as well as relevant programmes to ensure graduates gain the required skill base for the workforce, are crucial to those in the midst of the decision-making process. We also discovered that the journey to study overseas starts early, with a significant proportion of students thinking about higher education before the age of 15. Institutions must look for ways to engage with a younger cohort, primarily through digital channels, and the sector as a whole must come together to look for ways to promote the value of studying in the UK to the broadest possible cohort. When it comes to making decisions, we have found that students are often influenced by others: their parents, career advisers, agents, friends and family. It s important for institutions to recognise and engage with the concerns of these groups, but also to find ways to engage and communicate one-to-one with the most important person of all: the prospective student. 41

42 How Hobsons can help you With so much knowledge at our disposal through these findings, as well as previous research, Hobsons has the makings to help partners develop sound strategies for student recruitment and engagement. It s important that the sector builds student acquisition, engagement and retention, and performance strategies based on the future student profile, as we ve been able to identify in this latest piece of #HobsonsInsights. This must be coupled with clearly articulating how it can deliver the type of value the modern international student is seeking. The result? Institutions will be able to future-proof their international student cohort and contribute to long-term sustainability. Our next steps This report presents a high-level analysis of the 17,336 responses received by Hobsons from prospective international students interested in studying in the UK. Globally, the Hobsons International Student Survey 2015 collected responses from 45,543 prospective international students seeking entry to major competitive markets, including Australia, the United States and Canada. We re able to provide detailed analysis of the UK and global surveys through segmentation and profiling across multiple variables. Taken together with our previous International Student Surveys and other primary research, our market intelligence services enable institutions to build a picture of student perceptions and decision-making across the whole student lifecycle. If you are interested in learning more about what Hobsons can do for your institution, please visit our website at Alternatively, you may contact Patrick Whitfield at patrick.whitfield@hobsons.com or on +44 (0) to keep up to date with our research, or discuss this report with the higher education community using the #HobsonsInsights hashtag. We look forward to sharing our future research with you and welcome any feedback on this release of the International Student Survey. 42