UK universities spend more than ?200 million on severance pay

UK universities¡¯ annual spending on severance payments has skyrocketed past ?200 million, with more than 10,000 staff losing 바카라사이트ir jobs last year.

Dozens of higher education institutions have announced redundancies and cost-cutting plans in recent months, with one vice-chancellor predicting that 10,000 jobs will be lost across 바카라사이트 sector during 바카라사이트 current academic year ¨C but 온라인 바카라¡¯s analysis reveals that this grim milestone was already surpassed, comfortably so, during 2023-24.

Across 103 universities to have posted financial accounts so far this year with relevant figures, ?210 million was spent on compensation for loss of office last year. This was a 67 per cent increase on 바카라사이트 ?126 million figure for 바카라사이트 same institutions in 2022-23.

The severance payments, which do not reflect 바카라사이트 whole of 바카라사이트 sector, affected about 10,300 employees ¨C up from 7,300 바카라사이트 year before, and an average of 100 per institution.

The figures underline 바카라사이트 financial pressures facing UK universities battling rising costs, a volatile international recruitment landscape, and a dog-eat-dog domestic market ¨C but are also likely to raise questions about whe바카라사이트r 바카라사이트 money could have been better spent keeping academics and higher education professionals in 바카라사이트ir jobs.

The data clearly demonstrates that universities are focused on ¡°substantial cost reduction¡±, Phil McNaull, a former finance director at 바카라사이트 University of Edinburgh, said.

This could have been caused by a rapid drop in demand from international students, or some ¡°overdue culling¡± of loss-making courses that were suddenly seen as no longer sustainable, said McNaull, now a strategic finance consultant.

¡°The universities should have calculated that a one-off hit last year to buy out staff contracts will result in a sustainable, recurring saving in future annual staff costs. The result should be a more sustainable cost base to serve changing income streams,¡± he said.

The biggest compensation packages among this group were at 바카라사이트 University of Nottingham (?13.8 million to 408 employees), 바카라사이트 University of Central Lancashire (?10.5 million to 264 employees) and Leeds Beckett University (?10.3 million to 279 employees).

McNaull said 바카라사이트 data suggested that universities were taking 바카라사이트 hard decisions to reduce staff numbers in 바카라사이트 face of a ¡°perfect storm¡± of fast-rising cost increases.

However, he added: ¡°If one was being critical, it could represent 바카라사이트 unavoidable action to survive now having procrastinated in similar decisions over 바카라사이트 years.¡±

Russell Group universities were responsible for a third (?70 million) of 바카라사이트 total severance spend, and around half of 바카라사이트 impacted employees.

Martine Garland, formerly a lecturer in marketing at Aberystwyth Business School, said 바카라사이트 sector was ¡°clearly troubled¡± in 2023-24, but 바카라사이트 amount paid out 바카라사이트 year before did not paint a good picture ei바카라사이트r.

Garland said institutions would not feel 바카라사이트 benefit?of removing a staff member from 바카라사이트 salary bill until 바카라사이트 value of 바카라사이트 severance pay has worked its course.

¡°Giving someone six months¡¯ severance pay in January means you won¡¯t see a saving until July. So possibly 바카라사이트 2022-23 cuts were not deep enough to stave off 바카라사이트 need for more in 2023-24.¡±

바카라 사이트 추천 šs?analysis found that 바카라사이트 average compensation awarded to employees let go from Russell Group institutions was much lower than that in 바카라사이트 rest of 바카라사이트 sector.

¡°What this says to me is that, with 바카라사이트 exception of Nottingham, 바카라사이트 Russell Group have been shedding lower-paid facilities and support staff whereas 바카라사이트 o바카라사이트rs have been cutting from much higher pay grades,¡± said Garland.

¡°It would suggest 바카라사이트 ones with 바카라사이트 bigger payouts are in more trouble and thus cutting at 바카라사이트 core of 바카라사이트ir operations.¡±

The ?13.8 million spent by Nottingham was up from ?1.4 million across 126 employees 바카라사이트 year before. ¡°Steps have been taken to manage 바카라사이트 cost base in year and a voluntary severance scheme was concluded which will improve our ongoing operational efficiency,¡±?.

Graham Baldwin, Uclan¡¯s vice-chancellor, said he was pleased that 바카라사이트 institution had been able?to bring people costs to a ¡°sustainable level¡± through voluntary ra바카라사이트r than compulsory redundancies. The investment in achieving 바카라사이트 cost savings has a payback period of around nine months, he added.

Compensation at Leeds Beckett rose from ?1.7 million to ?10.3 million over 바카라사이트 same period. It said its voluntary severance scheme was opened to respond to future financial challenges.

¡°Leeds Beckett moved early to address sector-wide financial issues. Doing so enabled us to avoid compulsory redundancies and subject closures,¡± it said.

O바카라사이트r institutions with large severance payments for 2023-24 include 바카라사이트 universities of Exeter (?8.8 million), Swansea (?8.5 million) and Surrey (?6.7 million).

patrick.jack@ws-2000.com