Category: Insights & Ideas

Although Labour’s policies have loomed for some time now, I expect that you, your colleagues, governors and parents are still busy digesting the outcome of the General Election and what the introduction of VAT on school fees will mean for your own school community. We hope that, by sharing some insights from our recent client work, you will be able to approach this challenge more strongly and successfully.

Parents want information – fill the information gap

​​​​​For many weeks, schools have been in a holding pattern, which most parents have been prepared, if not happy, to accept. Now the new government is in place, we should expect that patience to run thin and, although the full implications of the policy have yet to be revealed, for people to want information. As you may have experienced during COVID, parents can be very unforgiving when the future is unsettled and, even when the situation is not of your making, will look to you to offer a solution. As we also saw in the pandemic, how you respond can buy enormous goodwill.  Now is not, therefore, the time to hold back from communicating. On the contrary, it is the right time to engage with your parents, to show empathy and, importantly, to show that you are prepared.

Getting the tone right is critical: we have been privy to a spectrum of letters in recent weeks which really do vary in their quality. It is certainly worth investing time and effort (and perhaps in the skill of a professional?) to get this right. We have seen the communications land best when schools have lifted the lid on their thinking and brought parents in on the series of contingencies they have prepared to meet the range of possible scenarios, taking account of the level of VAT, scope of application and the impact of exemptions. This approach builds confidence, respect and a sense of calm. It also creates extra time, which is very much what schools need right now. 

Getting your people ready, including your Board and Admissions team

If you haven’t already done so, you should establish a small group to note and appraise the policy updates which are likely to emerge over the summer and to share their work with appropriate senior people and Board members.

You should also put aside time to undertake the analysis needed to support substantial discussions and decision-making. This analysis will require work from the senior leadership and bursary team, with potential input from legal, financial and other experts. You may also wish to schedule some Extraordinary Board meetings so you are quorate to make the necessary decisions.

Practically speaking, you will need to build a more resilient and well-informed general office and admissions set-up than in typical summers. Current and prospective parents will seek information and advice, and some families will need the right people on hand to guide them through a change in enrolment arrangements or a possible departure. You will also want to ensure your results days are well staffed, with your team well briefed and ready to reassure parents about matters unrelated to exams.

So part of getting the external comms right is to focus on internal comms!

Make sure you know what your parents are thinking

We have recently surveyed more than 5000 parents on school affordability. While the headlines of our findings will not surprise, an interesting outcome is the variance in parents’ responses and how these cluster in different schools.

While some parental communities are very price-sensitive, others are steadfast in their preference for a high-quality offer, small classes and a full range of subjects and non-classroom opportunities and are prepared to pay for this. Knowing what sort of parents you have at your school is important. For example, cutting back on the range of your offer is an obvious way to trim costs, but may be exactly what your parents value about your school.

Knowing your market and your families’ priorities has never been so important. Yours may be one of the many schools to have incorporated affordability questions into parent surveys. If not, there will continue to be opportunities to sense-check parents’ circumstances and preferences as the government’s policy crystalises in the coming weeks.

Focus on retention

It makes a lot of financial sense to focus even more on the retention of pupils as this is surely going to be under greater pressure than ever before.

When responding to our surveys, between one-third and two-thirds of families indicated they may leave at the end of their child’s current school year or at the next natural stage of their child’s education, such as the end of Year 6 and Year 11. Injecting even more effort into shoring up these transition points, marketing them earlier, and enhancing and showcasing the offer in Year 7 and Year 12, will therefore be critical.

Furthermore, our most recent surveys underline the importance parents attach to ‘customer service and communications’ and how fragile their loyalty can be. Those parents who are less satisfied are much more likely to consider leaving their child’s independent school, for example, regardless of their income band.

We have seen some schools take a more proactive approach to retention: analysing their roll for parents who may be considering leaving and identifying the most appropriate or trusted member of their team to explore support strategies for families.

Certainly, as schools plan for the future, there is an increasingly strong case for putting ‘student retention’ on the risk register and, for the first time in most schools, having a named risk owner, who will take responsibility for developing and delivering a robust retention strategy. 

Set the right price

A majority of parents we surveyed said they would move heaven and earth to keep their child at their current school … but might think twice before signing up a younger sibling. Sibling discounts tend to exist for things like bus fares but are less common on core fees, but is this right? We are starting to see signs of schools introducing more nuanced pricing strategies to account for market context and parental demand. As you and your teams consider and finesse your response to VAT on fees you may wish to factor this in, looking at sibling discounts, as well as loyalty benefits and more competitive pricing in vulnerable years. While this may feel very commercial for the sector, it may be the difference between surviving and thriving. 

There is, and will continue to be, a great deal to digest. Please be assured that we will be working throughout the summer, analysing announcements and assessing their implications, and are ready to support you through the coming change. If we can be of any assistance at any time, please do not hesitate to contact us. 

Our Founder and Chairman, Russell Speirs, recently featured on an episode of the ‘I’d Rather be at the Beach’? podcast with Simon Jones from the Bonjour Agency.

Russell spoke about our work helping schools to thrive, the changing landscape of independent schools, both in the UK and internationally and his passion for learning Arabic and the importance of language in understanding different cultures.

Listen to the full podcast

For the latest ‘Russell Speirs and Friends’ podcast, Russell talks with Johan Jensen, Founder of our EDI partner organisation, All-in Education. All-in Education is dedicated to helping schools become more inclusive and diverse places to work and learn.

You can find this, and the other podcasts in the series, on the School Management Plus website 

We’re fortunate to have a helicopter view of the sector.  Every year we engage with scores of schools and, through our surveys and research, hundreds upon hundreds of parents. 

Our surveys point to underlying challenges and tensions, whether it is worries about affordability or parents’ definition of “value-for-money”, their altered and increased expectations since COVID or social media super-charged complaints. With a General Election looming and independent education in the crosshairs of campaigning, it has never been more important to get ahead and do everything possible to show your school in the best light.   

Thankfully, as well as adding colour and data to schools’ understanding of parental opinion, our research data bank also shows how some very simple steps can have a hugely positive impact on parent mood and morale, and both reinforce and renew their connection to the school community. 

Looking ahead, we set out some of the actions you can take over the coming weeks, which our consultants have observed time and time again can lead to a successful end to the academic year. 

Support for transition 

This term, many children and their parents will be getting ready to leave one part of your school and transfer to another, or they may be leaving your school to attend another institution.  Change is difficult, and moving at any stage can be challenging, so whatever their decision, help them.  That’s the first thing we advise. 

It is also important not to fall into the trap of taking your current families for granted and seeing their progression to the next stage as automatic, or their understanding of ‘how it all works’ as instinctive. We receive a lot of feedback from parents with children moving into senior school or sixth form, for example, who tell us their transition experience could have been better.   

First of all, start early: support transition to the senior school from as early as Year 3 or 4, and to the sixth form from Year 9 or 10.  Parents and pupils are telling us that they are already making plans that early. 

You are doubtless very good at getting the transition right for pupils, but what about the parents who, in general, are more anxious and demanding than before?  For pupils, taster days and opportunities to meet their teachers and peers are the norm.  But how much of this are you replicating for your parents?  They tell us they appreciate being walked through a ‘typical day’, visiting the setting, meeting staff and, indeed, other parents.  They also value a heads-up on the practical things – where to get information, how to ask questions, and when and where to sign up.   

This is a quick win that will pay dividends on those WhatsApp groups later, so get it right this term and make plans now for the start of the new academic year. 

School report 

This term there are likely to be check-point exams and assessments and these are likely to feature in the reports you send to parents.  The impact of these reports is easy to underestimate. 

Our research shows that parents often have strong views about them and that they matter a lot.  Indeed, the school report is an excellent opportunity to show how you add value: the close observations of teachers who really know their students and how to get the best from them, the tailored tips about how each child can improve now and in the future, the nuanced insights about behaviours and motivations.  This is the richness of feedback parents want to see, so really maximise the opportunity of the end of year report.  

Here are our top 5 tips for producing reports that meet the expectations of parents:

1. Explain grading in advance or alongside, clearly 
2. Ensure comments are clear and well-evidenced  
3. Avoid announcing big swings in performance or other surprises in the report 
4. Pick up the phone where it would be helpful  
5. And do not, EVER, allow SPAG errors.

Another observation we would like to share relates to the timing of reports.  Is the end of the school year a good time?  Just when a child breaks for the holidays and when 7 or 8 weeks, and perhaps numerous adventures, are to pass before the student can do anything about it?  Why not issue just before the start of the Autumn term? 

Parents’ evenings 

In our parent research, how a school responds to students’ progress is always a hot topic, and parents’ evenings are very often picked out for criticism. 

During COVID, we all got used to seeing our child’s teachers and tutors online, and there’s no doubt that going digital has brought new convenience, appreciated by many, particularly working families. One of the lockdown’s popular legacies is virtual parents’ evenings. However, our research shows this sparks a marmite response.   

“I think parents’ evenings should be in person.  Covid is over and while the online format is obviously easier in some senses, it is not as effective in terms of real discussion and making a connection with teachers as in-person meetings are.” (Senior school parent)  

“Parents evenings: very short window for a conversation with the teacher.  Maximum 10 minutes with auto cut off at the end but usually less due to late start.  The school should recognise the importance of interaction with parents and make the teachers more accessible.” (Prep/Junior school parent)  

“As parents we feel disconnected to the school, kept at arm’s length.  Too many online arrangements and not a community feel.” (Senior school parent)  

“The online parents’ evening appointment system is excellent.  It allows for access to all teachers, which is not always possible at a face-to-face event.” (Senior school parent)  

Many schools have adopted a hybrid approach, to cater for all preferences and tastes. There’s no doubt, however, that electronic communications can never build rapport like a face-to-face conversation, so in the vernacular of the times, do aim for a ‘blended’ approach, and continue to hold in-person events as well as the virtual variety.  

A fond farewell 

Treat each leaving cohort as treasured friends.  You only have one chance to make a last impression! 

Be generous in your gratitude to parents, who have supported your school financially, emotionally and reputationally for many years.  Give time to each family.  Say goodbye well.  Their word-of-mouth and support will continue to serve the school if you do. 

And commit to the relationship with your new alumni who, don’t forget, are your ambassadors, careers network and donors of the future.  You can get them into the habit of giving to the school by encouraging them to club together to make a leavers’ gift to your school, something of their choosing that they would like to give to the year below.  Whatever you decide, invest in making this rite of passage feel meaningful, personal and worthwhile, and if you don’t have any traditions for saying goodbye, then perhaps now is the time to start some. 

Arrange for some form of ‘exit’ research – this is an unrivalled, rich seam of genuine feedback from which to learn.  Our school clients always benefit from the suggestions we pass on and delight in the praise and gratitude we obtain from leavers’ families. 

A rousing finale 

Speaking of endings, the head’s end-of-year letter or speech (if you hold a foundation day or something similar) is a standout, state-of-the-nation moment not to be wasted.  Just as the end of term stirs emotions of euphoria and affection in your common room, so it does around the kitchen tables of the children attending your school.  So give them something to inspire!  Share your triumphs, passion, pride, and plans for the future.  And, critically, tell them how and where you add value.  From what we see, this is even more important right now, when parents are in financial forecasting mode and wondering if the pinch in their pocket is worth the pain.  This is your moment to convince them it is.   

Enjoy the last few weeks of term and use the time well to reinforce and renew your connection with your community. 

If you would like to discover how we can help you better understand and leverage your school’s relationships with parents, please get in touch.  Click here to book a call with one of our team. 

The financial challenges facing independent schools are multifaceted.  Rising teachers’ pension costs, the cost-of-living crisis, and shifting demographics are already impacting financial resilience.  Add to this the proposed introduction of VAT on fees and removal of business rates relief and the need to develop a clear strategic response has never been greater. 

Our work supporting schools with financial and strategic planning focuses on three areas: 

• Cost optimisation and efficiency 
• Maximising student recruitment and retention 
• Revenue diversification. 

In this article, we talk broadly about these topics and, to conclude, pose some questions to consider that might assist with planning discussions. We would be pleased to discuss any aspect of our work and how we might support you more directly. 

Cost optimisation and efficiency 

Understandably, schools are looking closely at their resourcing and staffing structures to identify potential efficiencies and/or alternative models. Ensuring that the cost base of teaching and support staff is in line with pupil numbers and current and projected income is a complex and multi-layered task. This can often mean planning for growth in some areas while seeking to reduce costs in others. 

So, how do you prioritise spending in the right areas and identify areas where change is necessary? A critical first step is defining key strategic performance indicators (KPIs), for example, target pupil numbers, staffing costs, cash generation, etc. This will provide a framework against which scenarios can be evaluated.  Then, gather sufficient data to provide a detailed picture of current resourcing. This can then be mapped against the agreed strategic priorities to ensure that operations align with the overarching strategy and are appropriately resourced. The exercise will identify where areas are over or perhaps under-resourced, and the assessment of different scenarios against the defined KPIs will determine how operations might need to adapt to meet the agreed parameters.

Of course, unlocking efficiencies is as much about process and skills as actual staffing numbers. Establishing teams to consider specific areas of the operation is often a successful means of identifying how things can be done differently and achieving operational efficiencies. Furthermore, involving staff in this way can be valuable in managing the school through any required change. In our experience, a third party facilitating these discussions, highlighting best practice and supporting the identification of options can also help senior leaders navigate this path.

Maximising student recruitment and retention 

Drawing on our sector-wide research, undertaken over many years, we know that parental satisfaction is directly correlated with advocacy. Meeting the expectations of parents and other stakeholders is crucial to a school’s ongoing success, and this has never been more important. Suppose a school does not fully understand what stakeholders value and what they consider critical priorities; there is a significant risk that any changes made in response to the potential introduction of VAT on fees could negatively impact student retention.  These changes could also undermine the school’s current positioning, adversely affecting recruitment. 

Our experience shows that parents welcome the opportunity to share their opinions and are generally understanding of the pressures that schools are facing. Our affordability surveys are designed to help with scenario planning. For example, the analysis helps identify which segments of the parent body could be at the greatest risk of leaving if VAT is introduced and provides a steer as to how to mitigate this.  Furthermore, the insight generated by research moves you away from anecdotes and provides data to inform your response: understanding what changes parents might consider acceptable helps you to develop plans to mitigate retention risks and will inform your marketing and admissions strategies. 

We often refer to marketing and admissions as the engine room of fee generation.  Ensuring your marketing and admissions strategies are aligned and optimally configured for current and future recruitment cycles is key to providing an effective return on investment. Yet it is not uncommon to find siloed working, where the time to ensure processes and systems are aligned with best practice becomes increasingly impeded by day-to-day demands. Taking a step back to look at these areas is a vital part of optimising student recruitment. 

Revenue diversification 

In a recent survey we conducted, many schools identified fundraising as an area where they need external help and guidance. So, here we focus on revenue diversification through fundraising. However, we acknowledge there are other opportunities to diversify income (from enterprise activities to international expansion opportunities) that can support financial resilience over the medium to long term. 

We firmly believe that all schools can fundraise, and if you are not doing so already, you may wish to consider how you might generate much-needed additional income in this way. Whether you have a development team or not, you will need three things:  

1. A compelling, inspiring, and watertight case for support

This is why potential donors should make your school a priority. It does not need to be complete—the best cases for support evolve over time and often benefit from donors’ input and insights—but it must be authentic, strategic, and clearly articulate the impact donations could have.  

2. A focus on major gift fundraising 

The cost-of-living crisis means greater sensitivity is required when asking your community for additional funds. Therefore, we recommend a focus (or increased focus) on major gifts fundraising: the quiet, well-researched, considered individual approach to a small group of carefully curated individuals or organisations in a position to support with substantial donations. All schools can do this, whether or not they have a dedicated development team.  With a disciplined, focused approach, major gifts can be secured.  For schools new to major gifts, a small amount of specialist support can enable you to understand and succeed in this area.  

3. Research to provide deep knowledge of your potential supporters and how to engage them 

Who are your potential donors?  What are their interests and motivations? What do they think of your school?  How connected are they to the school?   Might they be interested in supporting you?   

Surveying your community will provide essential insights about both the collective community and individuals to inform decisions, help you understand the fundraising potential and generate opportunities to begin discussions about ways to support you.  It will eliminate the risk of assuming, guessing or only listening to the ‘loud minority’ and provide the evidence to ensure that all events, communications, and activities are focused and intentional. 

In summary, sustainable strategies involve a holistic approach that balances financial stability with educational quality. Open communication with stakeholders, including parents, staff, and alumni, will be essential for effectively navigating these potential changes. 

Some questions to consider: 

Value-Based Decision Making  

• • How can we prioritise spending based on educational impact? Can non-essential costs be trimmed without compromising the quality of education? 
  • Do we know what stakeholders value and what they would prioritise when deciding to join our school?  Do we know what current parents will value and prioritise in evaluating whether to remain at the school? 

Cost Optimisation and Efficiency 

• • How can we balance short-term cost-cutting measures with strategic investments that yield benefits over time? 
  • Have we conducted a thorough cost analysis? Where can cost savings be achieved without compromising quality? Can supply contracts be renegotiated? What can be done to optimise energy usage? Can any support and administrative processes be streamlined? 
  • How can we leverage technology to improve efficiency and reduce operational costs? 

Diversification of Revenue Streams 

• • How can we diversify our income sources beyond fees?
  • Are there opportunities to offer additional services (e.g., summer programmes and facility lettings) that generate revenue without compromising the core educational mission? 

Collaboration 

• • Are there opportunities to collaborate with other schools or educational organisations to share resources and pool purchasing power? 

If you would like to understand how we can support your school in any of the areas covered in this article please get in touch to book a call with one of the team.

For the latest ‘Russell Speirs and Friends’ podcast, Russell met with Neil Cufley, Director of Operations and Finance from Royal Russell School. Neil explains how he creates a culture where support staff feel valued, trusted and heard.

You can find this, and the other podcasts in the series, on the School Management Plus website