The top challenges for Canadian postsecondary leaders—and how to overcome them

In the face of mounting financial pressures and declining public confidence, Canadian colleges and universities are confronted with numerous challenges that call for strategic solutions, collaborative efforts, and intentional prioritization. Recently, EAB spoke with university presidents across Canada to uncover valuable insights into their most pressing concerns and how to address them.

Here are the top three themes Canadian university presidents raised—and how EAB is partnering with institutions to provide targeted support.

1. Address value perception challenges and educate stakeholders

During our discussions, Canadian presidents echoed a pressing concern: the growing disconnect between funding for colleges and universities and public confidence in the value of higher education.

A growing perception challenge exists, fueled by fluctuating government and provincial priorities, shifting public sentiments about higher education, and a growing mistrust of institutions. While overall confidence in postsecondary education is high in Canada, 60% of Canadians believe the value of education has declined over the last four years and 72% of Canadian students expressed that a postsecondary education is very hard to afford, according to the Canadian Association of University Teachers (CAUT). Universities currently find themselves at a crossroads, where they must demonstrate their societal value while facing external scrutiny regarding their funding models.

To demonstrate the value of postsecondary education, leaders and other stakeholders first need to understand the sector-wide trends impacting colleges and universities in Canada and globally. Institutions must then shape their narratives and priorities around value and relevance and communicate their contributions effectively. Universities must start with an “outside-in” perspective that connects to the needs of external stakeholders in their own language, rather than an “inside-out” communications approach that begins from the desires of internal stakeholders.

EAB’s State of the Sector presentation for Canadian universities is designed to provide an overview of trends in Canadian postsecondary education and the broader global context, educate stakeholders on the realities of public perception, and share actionable insights to help leaders communicate the value of colleges and universities in a way that resonates within their communities. If you’re interested in requesting a presentation for your stakeholders, contact [email protected].

2. Navigate financial pressures with cost containment strategies

The financial strain faced by Canadian universities has reached alarming levels. Institutions are grappling with limited provincial funding, rising operational costs, caps on tuition fees, and restrictions on international enrolment, which have created a pressing need to reevaluate their budget models and organizational structures. Several presidents expressed frustration, stating that they have “no levers left to pull” in their attempts to cut costs.

However, presidents acknowledge many institutions have yet to truly reexamine academic costs. To pursue long-term financial sustainability, leaders must turn their focus toward improving operational effectiveness in the academy. By examining program portfolios for efficiency and viability and embracing process improvement, leaders can find cost-savings opportunities that move the needle.

To help with this charge, EAB recently launched the Canadian cohort of our Financial Performance Collaborative for Provosts, a series of expert-led workshops and peer discussions aimed at helping academic leaders identify cost containment strategies without sacrificing educational quality.

3. Grow enrolment through market intelligence, program revitalization, and strategic enrolment

In the wake of fluctuating student numbers and changing market demands, strategic enrolment remains a pressing issue (and opportunity) for Canadian higher education institutions. Many presidents echoed concerns about the cap on international student visas and how that cap has been perceived by potential students and stakeholders, further affecting enrolment and revenue.

Others stressed the need for strategic enrolment management (SEM) plans that further align workforce needs with student programs and provide intention around where and how they are recruiting students. There was also interest from leaders in how to recruit “non-consumers” who graduate high school but opt not to attend postsecondary.

Encouragingly, there are success stories to be found, despite the daunting landscape. One president shared their institution’s success with expanding healthcare programs, which align with local labour force demand and resulted in additional government funding.

It’s clear that a vital piece of growing enrolment is building a market-informed program portfolio. University leaders who prioritize labour market data and program feasibility will be better able to attract a diverse range of prospective students and meet the evolving needs of their communities. To help enrolment teams make data-driven portfolio decisions, EAB’s Market Insights service provides real-time labour market intelligence that allows universities to craft market-responsive credentials tailored to the demands of their local and international contexts.

The future of postsecondary in Canada

The insights gathered throughout our presidential listening tour only reaffirm the urgent need for collaboration, best-practice sharing, and data-driven decision-making among Canadian colleges and universities. As we look ahead, EAB is dedicated to working together with our partners to ensure a resilient, intentional, and transformative future for higher education.

Want to discuss how to make progress on your top initiatives with EAB? Contact your Strategic Leader or [email protected] to learn how we can embed EAB’s expertise into your most important workstreams.