Increasing expenses push schools into losses and difficult situations. With proper planning and a systematic approach, schools can reduce costs while adopting the latest technology. Let’s discuss the different ways an educational institution can cut down expenses.
The Covid-19 pandemic and the subsequent inflation have affected most lives around the globe. Just about everything has been disrupted and had to be restarted to align with the new normal. Schools and educational institutions too suffered from losses.
The changing scenario demands the school administrations step up and deal with the issues effectively or shut shop forever. Closing schools is never a good sign for society. The administrations must make the right decisions to cut costs without compromising the quality of education and services they provide to students.
Schools also need to focus on retaining experienced and efficient teachers to handle the responsibility of training students for the future. Let’s look at the various ways for schools and colleges to reduce expenses.
How Can Schools Reduce Costs?
Schools can adopt several strategies to reduce costs effectively while maintaining or even improving educational outcomes. While increasing the fees can bridge the gap, it can also lead to an increase in school dropouts. Parents who cannot afford expensive fees will take their kids to other schools. Some might switch to unconventional learning, such as eLearning, Gurukuls, homeschooling, etc.
Educational institutions, especially schools, should focus on reducing costs as a long-term solution rather than shifting the burden to students and their parents. However, schools can increase their revenue sources in other ways.
Here are some key approaches to effectively reduce costs in school management based on recent studies:
1. Adopt the Latest Technology
While the initial investment in technology may seem high, adopting the right tools and software can lead to long-term savings. For instance, going paperless by using digital textbooks and online resources reduces the need for physical materials, such as paper, printers, and ink. Additionally, adopting tools like education management software can automate processes like sending emails, collecting fees, and scheduling classes, further reducing overhead costs. Well-planned and executed tech upgrades for schools can definitely reduce expenses in the long run and increase efficiency.
Go Paperless:
Moving student and teacher records to the cloud eliminates the costs associated with maintaining physical files. Digitization is the process of converting analog content to digital content. This includes pictures, audio, text, and much more. Not just student and teacher records but assignments, workbooks, test papers, attendance sheets, etc., can also be digitized. Though it takes some investment to initially convert the records, schools will find it easier to use the digital formats once the process is complete.
Automation:
Using software to handle administrative tasks streamlines operations, allowing schools to optimize their resources. Automating workflows is one of the best solutions to saving time, money, and other resources in an establishment. When the admin staff doesn’t have to perform the same repetitive tasks for hours, they can take up more work. This increases efficiency and performance in the school. There will also be fewer instances of errors since human involvement will be less. There are various benefits of using technology in the education industry.
AI-Powered Tools:
Tools like PrepAI automate the creation of exam papers, saving teachers time and allowing them to focus on completing the syllabus. In fact, teachers can create and conduct a quiz directly in the classroom after completing a lesson. Generative AI tools can be used to give assignments and homework to students. This gives teachers a chance to discuss the pros and cons of using generative AI for education and create awareness in students about how to use the tools ethically. Some platforms aid in creating a curriculum quickly and customizing it (Teachable AI Curriculum Generator is an example).
eLibrary:
Building a digital library for students and teachers reduces the costs of maintaining physical books while offering 24/7 access to educational resources. While physical libraries are important, schools can save money by offering digital alternatives. For example, schools can have fewer physical copies of the same book but provide more digital versions or set up authorized access for students to read from the electronic version. There can be audiobooks as well to encourage more engagement without increasing costs.
Unified Communication:
Instead of using dozens of telephones (one at each desk), the school management can set up a unified communication system that provides voice, video, and messaging services through a single interface. By switching to a cloud-based communication system, schools can reduce telephone bills and also save money spent on maintaining and replacing phones throughout the establishment. This allows employees to use their personal devices at work.
2. Recycle and Reuse
There are more strategies to reduce costs in running a school. This one also increases sustainability. Schools generate substantial waste, but by recycling and reusing materials, they can reduce their environmental impact and save money on supplies. For instance, schools can recycle plastic bottles in exchange for coupons or sell metal as scrap, thus turning waste into a financial advantage. Some schools are purchasing refurbished computers and laptops for labs and other uses. That way, the school won’t be adding more electronic waste to the landfill.
3. Efficient Payroll Systems
Salaries for teachers and administrative staff account for a significant portion of school budgets. Streamlining the payroll system with software that tracks working hours, overtime, and holidays can reduce administrative costs and free up resources without compromising educational quality. This approach improves efficiency and helps schools manage staffing costs effectively. Similarly, a revenue calculator is a great tool to determine direct and indirect expenses and find ways to reduce unwanted costs.
4. Outsource When Cheaper
Instead of hiring full-time employees for every task, schools can outsource specific services, such as IT support, maintenance, or cafeteria operations, when it’s more cost-effective. Outsourcing can reduce the need for long-term contracts and provide flexibility in managing resources. Outsourcing also gives direct access to expert talent, especially in fields like IT. Schools will find it cost-effective and less risky to partner with an Edtech expert than to build an in-house team from scratch and pay them monthly salaries. From security to transportation, cleaning, HR, and IT, most responsibilities can be outsourced.
5. Redo Inventory Planning
Schools often overspend on supplies, such as stationery, books, and uniforms, that may not be fully utilized. By regularly reviewing inventory and purchasing only what’s necessary, schools can prevent wastage and save money. Education management software can assist in tracking inventory and distributing it more efficiently across classrooms. Moreover, schools can ask parents to provide their kids with some of the required items. Not selling the supplies at school will also help in reducing inventory costs. This can also be outsourced.
6. Moderate Extra-Curricular Activities
While extracurricular activities are essential, not all may be necessary or cost-effective. Schools can reduce costs by offering only those activities that directly contribute to students’ education and personal growth. Activities like role-playing can even be incorporated into regular classroom sessions to make learning more interactive without requiring additional resources. While complete personality development is important, the entire responsibility doesn’t lie on the school. Instead of offering multiple activities with mediocre participation, plan the ones that will have full participation from students and teachers.
7. Class Size Management
Reducing the number of sections or increasing the class size slightly can help lower staffing and operational costs. A balanced class size allows for effective teaching while reducing the need for additional resources. By adding a few more students to each section, schools can optimize their teacher-to-student ratios and allocate time more efficiently. However, adding more students to a class can increase the pressure on teachers and make it difficult for them to focus on each student individually. Find a healthy balance. Schools can also hire part-time teachers to divide the workload.
8. Collaborate with Community Organizations
Schools can also collaborate with local community organizations to share resources, such as facilities or personnel. This reduces duplication of efforts and allows schools to benefit from the shared services without increasing costs. Various volunteering and nonprofit groups are conducting creative and useful sessions for students. This can be for writing, music, dance, sports, self-defense, or more. Collaborations are beneficial to both parties and help build a strong ecosystem.
7 Tips to Reduce School’s Operating Costs
Operating costs pile high even before you know it. Most schools, colleges, and educational institutions face this issue. With cautious planning, it is possible to reduce operational costs without affecting the reputation of an institution.
1. Focus on Energy Efficiency
Becoming energy-efficient can cut costs and inspire students to become eco-conscious by setting an example. Here’s how schools can save on energy charges and optimize their energy usage.
Get rid of old electric equipment as it requires more energy and increases your bills. Invest in certified energy-efficient appliances and gadgets. Start with the fans and bulbs in the classrooms.
Depending on your country/ region, you can get benefits and subsidies for installing solar panels at school and using alternate sources of energy.
Set timers to turn off lights, fans, ACs, etc., and reduce the thermostat to the lower point when there’s no school. This will prevent the appliances from running during non-working hours and days.
2. Understand Your Budget
What are the income sources for the school? Before making any major changes or employing cost-cutting measures, it is essential to take stock of the overall situation. Your decision shouldn’t indirectly affect your income as it can lead to chaos and losses.
Taking funds or donations for granted can also cause trouble if the expected money doesn’t come on time. Relying solely on students’ fees is also not advised. Once you have a clear picture of the income sources, you can cut down on unnecessary expenses.
3. Facility Management and Renting
Do you own the school premises? If yes, paying rent is one less thing to worry about. However, maintenance costs are a cause of concern. As the buildings get older, you have to spend more money on repairs and maintenance to adhere to the safety regulations.
In such instances, renting a portion of the premises or unused buildings can bring extra income. Summer holidays are a good time to rent the open areas, classrooms, and other buildings. You can even rent the community hall during weekends.
4. Healthier and Low-Cost Lunches
Healthier lunches are more important for kids than multiple choices of fast foods. Schools can cut down costs on lunches while still providing healthy meals to students. Tie up with organizations that provide nutritious meals for a lesser cost. This also promotes healthy eating in students and reduces the risk of obesity. Of course, it is not mandatory for schools to provide lunches for students. Parents can send lunch and snack boxes with their kids.
5. Plan Transportation Services
Does the school offer paid transportation services to students? Consider the options to see if outsourcing transportation would be a cost-effective solution. School management can also discontinue transportation and leave the responsibility to the parents and guardians. If schools own transport vehicles, these can be leased to generate extra revenue during holidays.
6. Managing Field Trips
Field trips are important for students to see things for themselves. Nowadays, you can provide a similar experience in the classrooms through AR/ VR technology. Another way to cut costs is to map the budget of the trip in advance and ask for volunteers to help with transportation and lunch rather than spend on hiring drivers or paying restaurant bills. Maybe the authorities of the place you are planning to visit can help. Find ways to plan the trips without being extravagant.
7. STEM Collaborations
As STEM education is becoming a part of every school and college, the costs to establish and manage the STEM department has gone up. This expense can be reduced by collaborating with nearby colleges or institutions that offer STEM teaching/ coaching services. Renting the facilities and staff for a fixed number of classes per term will save money compared to setting up the entire faculty on the campus.
Why is Technology an Important Tool for Controlling Costs?
With so many kinds of technology in education, you might wonder how and why it is important to control costs in school management. Simply put, technology makes life easier. While it requires an initial investment, schools can generate ROI quickly and steadily to get back returns.
Here’s why technology is vital to reduce costs:
Greater Accessibility
Technology bridges geographical barriers and provides access to tools, talent, knowledge, skills, and expertise from around the world. For example, organizing a webinar session is less expensive than invitingexpensive inviting someone to directly visit the school campus and paying for everything.
Data Backup and Recovery
Data is crucial for every organization. Schools need to maintain proper records of student and teacher data spanning several years or decades. What if something damages these records? Technology makes it possible to recover a backup copy without too much effort or expense. The same applies to student report cards and other communication. Everything can be saved digitally.
Seamless Centralized Storage
Another way technology can reduce costs is by providing a single unified central data repository. This can replace the department silos which lead to data duplication, confusion, and delays. Moreover, teachers can use their access codes to retrieve the information they want rather than requesting someone in the admin team to do it. This saves time for both of them and helps them finish the work faster.
Better Data Security
How can a school keep its data safe from hackers and cyber threats without technology? Breach or loss of sensitive information can result in lawsuits, damage to reputation, loss of money, and many other problems. Antivirus and antimalware software apps help avoid such issues and protect the school’s data.
Promote Blended Learning
By encouraging online learning, schools can reduce the amounts spent on maintaining the premises, etc. With blended learning, students and teachers can attend offline classes for specific durations and complete the learning programs online. This also encourages more students to learn.
Flexibility and Scalability
From postponing a class to adding more server space for storage, technology brings greater flexibility and scalability to the education industry on multiple levels. Its advantage can be seen in teaching and admin roles. Making slight changes is easier and less expensive than replacing an entire system, isn’t it? Moreover, technology future-proofs schools and empowers them to proactively handle market changes.
Final Words
Reducing costs at school doesn’t have to put you out of competition. By carefully deciding what works and what doesn’t, school administration can cut down the expenses and remove the burdens that are stopping them from adopting advanced technology.
Whether it is an artificial intelligence tool like PrepAI, payroll management system, or curriculum creator software, it’s imperative to choose the right solution for the school. Consult with technology solution providers to help you decide the right approach to cost-cutting and school management.
