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Agent protocol
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The tide is slowly turning towards using education agencies as part of a university’s student recruitment drive, but what of payment for their services? Amy Baker canvasses opinion around the world about common practice when setting up professional relationships with agencies.
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Opinion in the international higher education world about if and how to work with education agencies remains divided, particularly in the USA. For example, Dave Seaver, Assistant Vice President for Enrollment Management at Tulane University in the USA, comments that he would “never” pay an agent and would not consider using one. “I believe it is prohibited by Nacac (National Association for College Admission Counselling),” he relates.
Having attended seminars about using agents at the annual Nafsa Conference this year, it was clear that there were questions about whether Nacac rules in the USA relate to international education agents or just domestic education agents, who are indeed banned from accepting money from institutions, rather than students, for placement services.
However, a growing number of US institutions believe it may not necessarily be an unethical practice and are broaching the subject of how to meet international agents (see ETM, June 2009, page 23) and how to work with them and pay them. Denise Hamilton at DeGroote School of Business on the campus of McMaster University in Canada provides a benchmark of experience: “Our Office of International Affairs at McMaster University will negotiate contracts with overseas agents to recruit for all of our university programmes,” she says. “Generally speaking, the commission is usually 15 per cent of the first year tuition fees.”
At other institutions, procedures may differ depending on how long an agency has worked with an institution, the volume of students sent, etc. Andrew Waite, International Business Manager at South Thames College London in the UK, relates, “We discuss [payment terms] on an individual basis, but this basically depends on volume/loyalty/commitment.” He says that the college started working seriously with education agents around two or three years ago.
The most typical commission rate across the board seems to be 10 per cent of the first year’s tuition fees within the higher education sector. This was certainly a figure mentioned by agent-embracing institutions at Nafsa seminars. For institutions reluctant to use a commission-based approach, other options include a set fee-per-head agreed with an agency for each enrolled student, or an annual retainer payment for an agency’s recruitment services. Andy Nicol at Coventry University in the UK made the point that he felt commission was the best payment model as this motivates and rewards successful enrolment.
Dave McFadden, Executive Vice President of Manchester College in Manchester, IN in the USA, testifies that a 10 per cent commission payment is typical at his institution. “We have always used a ‘materials plus commission’ approach,” he says. “That is, we provide materials for recruiting our own printed publications and sometimes funds for advertising and pay a commission after the student arrives and enrols.” He adds that this is paid in two autumn and spring instalments.
Yet McFadden warns that despite already working with education agents, there is some reluctance about rolling that practice out to a wider group. “First, many recruiters are new to the field and make promises they cannot or do not keep,” he explains, going on to add two further points: that agents are often only successful if there is name recognition of an institution in that country “This was especially evident the few times we’ve participated in international recruiting tours” and the lack of understanding about the right academic fit of a student. “We have terminated more than one contract because the recruiter didn’t seem invested in who we are and the type of students who would do well here,” he says.
Other professionals with experience of working with agents agree that payment protocol is just one of the issues to resolve with agents. Beth Knowles of Christchurch Polytechnic Institute of Technology (CPIT) in New Zealand underlines that agent training is vital. “It is necessary that our agents are trained on New Zealand and Christchurch as a study destination as well as about the application and enrolment process and information about our range of programmes and costs,” she points out. “Our agents must be knowledgeable about the Code of Practice in New Zealand for international students and other compliance matters including insurance requirements and our policies.”
At Nafsa, various educators shared their tips on how to get the best out of agent partners. Rossi Johnson at Hamline University in St Paul, MN, recommended building up a few agent relationships at a time and accepting limited student numbers, while both parties work out if they understand the other’s needs. Meanwhile, Mitch Leventhal of the University of Cincinatti, OH, also in the USA, explained that he had transformed his university into an agent-accepting institution in a number of ways: by publishing a prospectus targeting international students only; by modifying the application fee to encourage students overseas to use local agencies; by widening the English language proficiency requirement from Toefl to various tests; and by organising fam trips (co-funded by agencies) to ensure agencies got to visit the campus themselves.
Nicol emphasised that his institution conducts site visits to every single potential partner overseas and encouraged all agencies to visit the campus in the UK. Fam trips for agency staff can also be used as incentives in a working relationship. Focus groups with agency-counselled students were also held. Nicol also mentioned that aside from remuneration, some institutions offer an additional bonus; for example, if an agency’s client receives a first-class degree, they will receive an extra payment.
There is clearly scope for institutions to cautiously embark on working with education agencies and building up recruitment channels while maintaining full control over payment and counselling procedure. But it is ultimately a matter of mutual trust and a matter of need. Frik Schoombee of 43 Air School in South Africa explains that in the case of a flying school, there is also a logistical question mark: when do you pay the commission? “The drop-out rate is at times quite high,” he observes.
He sums up, “If an organisation recruits on your behalf, you obviously have to know them quite well”. He is reticent about going down this route although can see why other institutions might want to consider doing so. “Our academy is a fairly strong one with an adequate international footprint,” he says. “I think smaller [institutions] might have more of a need to make use of recruitment organisations.”
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