The Pulse of Higher Ed

Perspectives on Online and Professional Education
from UPCEA’s Research and Consulting Experts

Balancing Act: How Higher Education Can Thrive in a Resource-Constrained World

Higher education institutions, particularly those with online and professional continuing education (PCE) units, are increasingly tasked with balancing financial sustainability and operational efficiency in a resource-constrained environment. As student demographics shift and competition intensifies, institutions are looking for innovative ways to diversify their revenue streams while optimizing operations – this is no easy task.

The need for institutions to “do more with less” has become a common refrain in the education sector. Recent reports have emphasized the financial pressures institutions face, particularly as public funding declines and operational costs continue to rise. According to the National Center for Education Statistics (NCES), tuition and fees now account for a significant portion of revenue for many institutions, particularly as state funding has stagnated or decreased over time. As a result, institutions are increasingly reliant on generating revenue through alternative streams such as professional development programs, microcredentials, and partnerships with industries.

Even prior to the pandemic, higher education institutions were grappling with the reality of rising costs and operational inefficiencies. For example, a 2019 Deloitte report highlighted the fragmented processes of higher education institutions and the lack of technology infrastructure needed to automate administrative processes or leverage data for decision-making. These operational challenges were magnified during the pandemic, as many resource-constrained institutions were forced to pivot quickly to online learning. Many of these inefficiencies remain unaddressed today, and schools continue to struggle with financial constraints and staff shortages.

This context has made it essential for PCE units to adopt innovative revenue generation strategies and improve operational efficiency. Institutions are increasingly expanding their program offerings to attract new students, especially non-traditional learners such as working professionals and adult learners seeking career advancement. Research from the American Council on Education (ACE) suggests that non-traditional learners now account for a growing segment of the higher education market, with many seeking flexible, career-relevant programs that align with industry needs. A joint research initiative between UPCEA and ISACA reinforces industry demand and projections, highlighting the growing need for flexible, stackable educational offerings. In response to increasing demand for non traditional educational pathways, many PCE units have prioritized customizing their programs, developing microcredentials, and forging partnerships with corporate entities to address the evolving needs of today’s learners. However, resource constraints remain a major challenge.

Many institutions are operating with reduced staff and limited financial resources, particularly in the wake of the COVID-19 pandemic, which exacerbated financial strains on colleges and universities. A 2021 Educause Quick-Poll found that 63% of institutions were facing postpandemic IT budget cuts, leading to delayed investments in technology infrastructure. Even three years later, this has forced institutions to adopt more creative approaches, such as utilizing third-party content providers, automating administrative processes, and forming strategic alliances to share resources and reduce costs.

In this environment, it is clear that institutions must continue to adapt to ensure their long-term viability. By identifying scalable best practices and leveraging technology to enhance efficiency, higher education institutions can better navigate the financial and operational challenges they face. The findings from UPCEA and MindEdge’s new research offer a roadmap for institutions seeking to thrive in a competitive and evolving higher education landscape.

Download the full report.

Learn more about UPCEA's expert consultants

Do you need help with your PCO unit or campus? We can help. Contact UPCEA Research and Consulting for a brief consult. Email [email protected] or call us at 202-659-3130.

Trusted by the nation's top colleges and universities, UPCEA Research and Consulting provides the best value in the industry today. UPCEA's industry experts have years of experience in Online and Professional Continuing education - put them to work for you!

UPCEA Research and Consulting offers a variety of custom research and consulting options through an outcomes-focused pricing model. Find the option(s) that best suit your institution.

Learn more about UPCEA Research & Consulting


The UPCEA Difference

Unmatched Experience: For more than 100 years, UPCEA consultants have exclusively served the needs of online and professional continuing education programs. UPCEA consultants leverage their extensive industry expertise to expedite solutions, anticipate upcoming shifts, and offer distinct best practices, effectively aiding clients in achieving their goals.

Cost Effectiveness: As a nonprofit, member-serving organization, we provide unmatched value, allowing you to maximize limited research and consulting budgets.

Action in Motion: Our cadre of experienced, skilled authorities and expert practitioners propels you forward, translating research and consulting into impactful implementation, a distinctive hallmark of UPCEA. Our team of current and former institutional leaders will support you, turning research and consulting into action.

Mission Alignment: Like you, our mission is to enhance and expand educational opportunities and outcomes for adult and other non-traditional learners. We share your values and work in partnership with you to advance access and excellence in education.

Other UPCEA Updates + Blogs

U.S. Department of Education Reveals New Distance Education and Program Integrity Rules: Final Outcomes and Responses to Concerns Raised by UPCEA

The Department of Education recently published new distance education and program integrity rules that address a number of topics raised during negotiated rulemaking sessions held in early 2024. Many of the proposals shared in the Department’s July 24, 2024, Notice of Proposed Rulemaking (NPRM) have been rescinded. Of those that remain, most are scheduled to…

Read More

Marketing Microcredentials for Higher Education: Strategies to Attract Lifelong Learners

Defining Microcredentials and Their Value Microcredentials, shorter educational programs that develop specific skills or competencies, have seen tremendous growth in recent years. Both adult learners and traditional students increasingly seek these credentials for upskilling or career advancement. While the term “microcredentials” is relatively new, short-form credentials have been offered by higher education institutions for decades,…

Read More

AI Readiness and Its Relationship to Enrollment Management in Continuing Education

Enrollment management plays a pivotal role in the success of any online and professional continuing education units through impact on revenue generation, learner engagement, and program sustainability. AI-driven business process automation (BPA) offers transformative solutions to streamline enrollment workflows, enhance recruitment strategies, and improve the overall student experience through allowing staff to focus on human…

Read More

Proposed Distance Education Rules Are Now Likely To Be Finalized Before the End of the Current Presidential Term | Policy Matters (December 2024)

Proposed Distance Education Rules Are Now Likely To Be Finalized Before the End of the Current Presidential Term On December 30, the U.S. Department of Education (Department) shared the final, unofficial version of its new program integrity and distance education regulations, which call for the collection of new but yet-to-be-established distance education and correspondence course enrollment data…

Read More

Reflections from Convergence 2024: Credential Innovation in Higher Education, hosted by UPCEA and AACRAO

The running joke was that this fall’s Convergence, UPCEA’s second collaboration with thoughtful partner AACRAO, was referred to as Convergence Two: Electric Boogaloo, for the verve and excitement around bringing together another sold-out/SRO gathering of credential innovators–in the buzzy city of New Orleans, no less. And though I am fairly certain that pop-y, choreographed dancing…

Read More

Degrees on Hold: Bringing “Some College, No Credential” Learners Back

Higher education is facing a real challenge—and yes, I said challenge. (Because let’s face it, we really do love a good “opportunity” in higher ed, don’t we?) With over 41 million people in the U.S. who’ve started college and left without a degree, there exists a massive group of learners who are unfinished, yet far…

Read More

The Nation's Top Universities Choose UPCEA Research and Consulting

Informed decisions. Ideas that work. The data you need. Trusted by the top universities in the nation.