Hi there Reader,

This week’s newsletter dives into themes shaping the future of our institutions:

• Staying true to your mission
• Small yet powerful productivity shifts, and
• Private equity's increasing influence in education

Ferraris vs. Toyotas, and the Future of Education

What makes a university stand out in today’s crowded education market?

According to Nuno Fernandes, President of American Public University System (APUS), it’s not about trying to be everything to everyone.

In our recent conversation, Nuno explained how APUS became the #1 educator of U.S. service members and their families by doubling down on their mission:

Delivering Affordable, high-quality education for military families.

But APUS isn’t just resting on its laurels.

They’re leveraging HUNDREDS of data points to measure retention, improve satisfaction, and create personalized "Netflix-like" learning journeys.

Differentiation paired with innovation, creates a winning strategy.

Learn how APUS is leading the way. Quick Clip; Full Convo.

2A: Private Equity Enters the Higher Ed Arena

As industries pivot post-pandemic, private equity is now investing heavily in higher education.

CNN recently highlighted how private investors are acquiring for-profit education companies, particularly those focused on online learning and workforce development.

What it Means for Higher Ed:

1. Increased competition from for-profit online players targeting adult learners and certificate programs.
2. A potential rise in acquisitions of struggling institutions, leading to privatization of academic models.

Learn more: Full Article.

2B: The Risks of Private Equity in Education

While private equity brings fresh capital, critics are sounding alarms about its long-term effects.

A recent Idaho Statesman op-ed warns about:

• The risk of institutions prioritizing profits over students.
• Decreased focus on educational outcomes in favor of marketable offerings.

The Challenge: Can traditional institutions adapt to this new landscape without compromising their mission?

Explore the perspective: Full Article.

3. Boosting Productivity in Higher Ed: Think Small

McKinsey & Company suggests that improving productivity doesn’t require monumental change—it’s about small, focused interventions.

For colleges and universities, this could mean:

• Streamlining operations by digitizing routine tasks.
• Redesigning faculty workloads with a focus on higher-impact activities.
• Shifting governance structures to empower middle managers (who often drive 80% of on-the-ground initiatives).

Why it Matters: In a time of limited resources, incremental productivity gains can lead to big outcomes.

Read the McKinsey report: Looking to Improve Productivity? Think Small.​

HRTech Salary Trends: Insights from the 2024 Market

As workforce expectations evolve, the latest HRTech Salary Guide reveals critical shifts in compensation and hiring trends across industries.

For organizations striving to attract and retain top talent, these findings provide essential benchmarks and highlight the challenges of remaining competitive in a dynamic labor market.

Key insights from the report:

• Rapid Growth in HRTech Roles: As organizations embrace digital transformation, demand for HR professionals with expertise in technology integration, workforce analytics, and employee engagement tools is rising. Roles like HRIS specialists, talent acquisition analysts, and DEI strategists are seeing higher-than-average salary growth.
• Geographical Variances in Pay: Compensation trends differ significantly across regions. While tech hubs like Silicon Valley, Austin, and New York offer premium salaries, companies in less saturated areas are using benefits and remote work options to remain competitive.
• The Skills Premium: Experience in artificial intelligence, automation, and data analytics drives up salary packages. HR professionals with proficiency in cloud-based systems or who can design employee-centric digital experiences are commanding top dollar.
• Compensation vs. Benefits: While competitive pay is key, non-monetary incentives like flexible work arrangements, professional development opportunities, and robust wellness programs are increasingly influencing talent decisions.
• Sectoral Disparities: The private sector continues to outpace nonprofits and public organizations in compensation, although the latter often provide stronger benefits, mission-driven work environments, and greater job stability.

Explore the full guide here:HRTech Salary Guide​

Closing Thought

In a time of rapid change and uncertainty, higher education leaders must balance bold innovation with staying true to their mission.

Whether it’s leveraging data like APUS, grappling with private equity’s influence, or learning from small productivity hacks, the goal is always the same: driving impact.

By request, I'm running another round of "AI for Educators" workshop FREE.

Interested in bringing it to your campus? Let's talk.

Stay awesome,

-Mike O’Connor

O'Connor & Associates

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