Agents are bad, universities are good: discuss...

Agents are bad, universities are good: discuss … Vincenzo RaimoDirector, International Office

Enzo@espressoHE

UUK International Higher Education Forum, 17 April 2013 Vincenzo Raimo: Agents are bad, universities are good: discuss 1

UUK International Higher Education Forum, 17 April 2013 Vincenzo Raimo: Agents are bad, universities are good: discuss

Agenda

• context: worldwide competition & the changing UK higher education landscape

• what are agents and why do we use them?

• choosing partners

• the agent – university partnership

• the changing role of agents

• international student income & recruitment costs

• regulatory frameworks and the ‘London Statement’

• conclusions & recommendations

2

3

International Student Recruitment: The Big Picture (Long-term growth in the number of students enrolled outside their country of citizenship)

Source: OECD and UNESCO Institute for Sta-tistics.

Vincenzo Raimo: Agents are bad, universities are good: discussUUK International Higher Education Forum, 17 April 2013

Vincenzo Raimo: Agents are bad, universities are good: discussUUK International Higher Education Forum, 17 April 2013 4

2002/03 2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/120

50000

100000

150000

200000

250000

300000

New International Students in UK HEIs 2002/03 - 2011/12

OtherUGPGTPGR

5

Trends in International Education Market Shares (Percentage of all foreign students enrolled by destination)

Unite

d St

ates

1

Unite

d Ki

ngdo

m1

Germ

any

Fran

ce

Aust

ralia

1

Cana

da2

Japa

n

New

Zea

land

Russ

ian

Fede

ratio

n

Spai

n

Italy

Sout

h Af

rica

Aust

ria

Swed

en

Chin

a

Belg

ium

Switz

erla

nd

Neth

erla

nds

Kore

a

Oth

er O

ECD

coun

trie

s

Oth

er p

artn

er co

untr

ies

0

5

10

15

20

25

30

Source: OECD – Education at a Glance, 2009

20072000

Market share (%)

OECD coun-tries

Partner coun-tries

20072000

Vincenzo Raimo: Agents are bad, universities are good: discussUUK International Higher Education Forum, 17 April 2013


in own country9%

other UK university29%

in a different coun-try

11%

not in PG study51%

what are you doing now?

6




What are (export) agents & why do we use them?

“Export agents act on your behalf by introducing you to overseas

customers. They charge a commission – usually between 2.5% and

15%”.

https://www.gov.uk/export-agents

9



What are (export) agents & why do we use them?

An export agent can also help:

• give you information and contacts for overseas markets

• identify and make the most of opportunities overseas

• cut the cost of setting up your own offices overseas and recruiting and training your own employees to

work there

And all while allowing you to keep more control over your product (or service) e.g. the final price, brand image

(when compared with using a distributor)


10



Why do we use agents?

They’re effective in helping us to meet volume, income and other student recruitment related

targets.

• by giving us access to markets that we find difficult to recruit from directly (e.g. Nigeria, Pakistan)

• because in some markets it’s a normal expectation for prospective students to use an agent or educational

counselling service (e.g. Taiwan, India)

And because we believe that we can’t achieve our targets, effectively, by working on our own directly

11




Choosing Partners

• well established • track record of success• partners who need us

• Longer term potential versus immediate delivery• Balancing strategic selection versus opportunism

“a (wo)man is known by the company (s)he keeps”

Choosing partners

• Do they have authority to enter into proposed agreements? Are they licenced?

• Do they have the physical and human resources to deliver?

• Are they financial sound? Do they have the resources to deliver on commitments?

• Do they share your vision? • etc., etc., etc.


The University brand was key


The University brand was key

Agents:

• were at best an extension of a small number of universities’ brands

• they generally provided their services to students free

And universities:

• paid direct marketing costs and commission (usually 10%)

a partnership

but where the Universities’ brands were key

18


優質海外教育服務Uni Education Advisory Services


Have agents’ brands overshadowed those of the universities they represent?

http://www.studynation.com/logo_images_consultants/mumbai-1285674546.jpeg

http://www.kent.ac.uk/internationalstudent/images/logos/UKEOlogos.JPG

http://www.lsbf.org.uk/images/falcon-logo-100x122.png

http://www.globalstudygroup.com/




But what does it cost to recruit international students?

Source: AUIDF 2012 International Office Costs Analysis

http://cunningham.acer.edu.au/inted/AIEC2012AUIDFResearchPaper.pdf

Average UK university costs: 9.3% of international tuition fee income

Source: SPRE/ Hobsons UK Universities benchmarking 2006/07


http://cunningham.acer.edu.au/inted/AIEC2012AUIDFResearchPaper.pdf




Regulatory frameworks, The London Statement and the

British Council

27


British Council Agent Training

Certificate aims to confer on suitably trained and experienced education agents/ advisors

‘British Council trained agent status’

Benefits to agents:

• international recognition

• listing of details on BC

trained Agent List

• certificate to display

28


The London Statement

Seven principles aimed at agents:

• practice responsible business ethics

• provide current accurate and honest information in an ethical manner

• develop transparent business relationships with students and providers through the use of written agreements

• protect the interests of minors

• provide current and up-to-date information that enables international students to make informed choices when selecting which

agent or consultant to employ

• act professionally

• work with destination countries to raise the ethical standards and best practice

29

Is your work with agents consistent with the values of the UKCISA Code of Ethics?

Does it meet the requirements outlined in the QAA Guidance on international students?

Would you be happy to publish on your web site the names of all of those organisations and individuals (agents, school

counsellors, schools, etc.) to whom you pay commission (as per the QAA Guidance)?

And for those that pay commission to Schools, how would you feel if your son or daughter was at a school where the advice

on university applications was influenced by which universities pay that school a fee rather than which was the most

appropriate university for them?

How far are you willing to go and how much are you willing to pay to beat the competition?


Conclusions, Recommendations &

(some) Questions


Or is it time for a more radical rethink of how we work with agents if we’re

to avoid the scandal of commission based mis-selling that’s taken place in

other sectors?


Or are we already too late?

Agents are bad, universities are good: discuss … [email protected]

Enzo@espressoHE


Working with Agents

Sandra Elliott, Director Communications and International Relations Cardiff University

17 April 2013

Cardiff University and Agents

• Longstanding relationships

• 45 agents in 39 countries

• Standard commission rates

• Listings on website by country

New Agents

• Ask for references and business case

• Due diligence

• One year contract initially

• Annual reviews of performance

• Training and support

Reputation and Agents

Daily Telegraph story 26 June 2012

The Story – 26 June 2012

● Golden Arrow offering places for A Level students

from China at lower entry than UK students

● International students taking the place of UK

students

● Assistance with personal statement

● Allegations of “doctoring” of visa documentation

● First call to press office circa 10am 25 June

The Questions

• Why are Chinese students being offered places at Cardiff with grades that are lower than what are

published on your website?

• How many students from Golden Arrow study at Cardiff each year?

• How many of these students achieve the grades advertised on your website?

• What is the relationship between Cardiff University and Golden Arrow? Does Cardiff pay Golden Arrow to

recruit students?

• Are Cardiff University aware that Golden Arrow would offer to draft personal statements for students?

•What checks do you carry out on Golden Arrow?

What happened next?

• Response to DT and statement approved• Direct contact with Tony Ji – CEO , Golden Arrow• Other media interest – national and local

– Good Morning Wales Radio – BBC Wales Today (PVC Education interviewed)– ITV Wales – Newyddion – Times Higher Education– Western Mail– Huffington Post– Daily Mail – BBC Network News– Capital FM Radio

• Briefing for HEFCW and Welsh Government• Support from UUK and RG Communications teams• Internal Communications

Western Mail – 28 June

The Follow Up

Instigated a review of Golden Arrow activities

Entry criteria to Cardiff University for A level students

Variation in entry criteria between international students and home/EU

students

Fees charged to prospective students in China for advice from Golden

Arrow

Support for writing personal statements for applicants

Visa advice

Golden Arrow actions

Immediate internal investigation

Two members of staff left

Further training with support from the British Council and the UKBA

on visa issues

The Lessons

● Agent Contracts

● Agent Training

● Manage risk - monitor activity of

agents

● Reduce exposure to agents

Any questions/comments?

Agents are bad, universities are good: discuss...

Education

export agents

key agents

vincenzo raimo director

new international students

oecd education

international office

number of students

overseas markets