IRIS Education shares expert advice on successfully navigating the funding squeeze…
From adapting to post-pandemic life to ongoing difficulties with recruitment, it’s no secret these last couple of years have been some of the most challenging for schools and multi-academy trusts (MATs).
In fact, in a recent IRIS Education survey, we found a whopping 68% of MAT leaders felt the funding increases announced might not be enough.
Let’s not beat about the bush: it’s tough out there.
But what can be done?
Avengers assemble! We recently had the pleasure of hosting a roundtable on this very topic.
Becci Denbigh, CFO at InMAT, along with Chris Felgate, director at Ginger Energy; Clare Barber, senior finance consultant at School Business Services; and Jeff Marshall, managing director at J&G Marshall Ltd, covered what steps trusts can take.
Read on for the highlights and key points from our discussion.
1. Be the master of your own energy!
The best time to get a solid understanding of your energy costs and locate potential savings is when onboarding a new school into your MAT.
When trusts grow or are formed, they get the ability to be the masters of their destiny in terms of utility contracts.
In times of market uncertainty, if schools have a contract they wish to exit at the point at which they academise, they can do so.
2. Take advantage of third-party consultants
The role of a consultant is to make your life easier, acting directly on your behalf to manage your various utility supplier relationships.
So, don’t put all the pressure of negotiation and communication on yourself.
Consultants have the means to act quickly and solve problems much more efficiently because it’s their job to do so!
3. Make the most out of the staff you have
When it comes to staffing costs, look at your timetabling, and ask yourself, are you fully utilising your staff?
One word: forecasting.
To keep staffing costs under control, you need to forecast and re-forecast over and over again.
Timetabling effectively means you can make the most of the staff you already have whilst bringing you one step closer to the curriculum you want.
“When it comes to staffing costs, look at your timetabling, and ask yourself, are you fully utilising your staff?”
4. Streamline recruitment and prioritise retention
Recruitment and retention are at the top of everyone’s minds.
In many cases, a massive chunk of spending is taken by agency fees, so why not bring recruitment in-house?
By bringing processes in-house, empowered by the right systems, you can cut the time and cost it takes to recruit staff plus keep a bank of staff you have previously worked with/interviewed.
As for retention, consider how much you really engage staff.
Keeping people on track and engaged is vital to retention, something especially important when you consider replacing an employee costs, on average, 6–9 months’ salary.
Speak with your people, ask what opportunities they’re looking for and help them work towards their professional and financial goals.
5. Generate additional income
Ah yes, the answer to all financial problems – just make more money, duh.
Hear me out.
By thinking outside the box, schools can maximise income generation.
For example, consider renting out your halls for large-scale events, such as evening classes and even weddings.
Some trusts are even installing electric vehicle charging points in their car parks and renting these out to commuters.
Take full advantage of the resources you already have.
Increasing costs need increasing actions
It may feel like the costs are piling up, but these tips are a great way to ease that pressure and come out the other side on top.
