Outsourcing Higher Education for Savings
Due to a variety of factors, such as reduced state support and ever-expanding administrations, the cost of college in the United States has increased dramatically. In Michigan, a few community colleges have addressed this problem in a way similar to that embraced by businesses: they are outsourcing education. As of this writing, six Michigan community colleges have contracted with EDUStaff—a company that handles recruiting and managing adjunct faculty.
It might be wondered how adding a middleman between the college and the employee would save money. The claim is that since EDUStaff rather than the colleges employs the adjuncts, the colleges save because they do not have to contribute to state pensions for these employees. Michigan Central College claims to have saved $250,000 in a single year.
One concern with this approach is that it is being driven by economic values rather than educational values—that is, the goal is to save money rather than to serve educational goals. If the core function of a college is to educate, then that should be the main focus, though practical economic concerns obviously do matter.
A second concern is that this saving mechanism is being applied to faculty and not staff and administrators. If this approach were a good idea when applied to the core personnel of a college, then it would seem to be an even better idea when applied to the administration and staff. The logical end result would, of course, be a completely outsourced college—but this seems rather absurd.
A third concern is that while avoiding paying pensions results in short term savings, the impact on the adjuncts should be considered. This approach will certainly make working for EDUSTaff less desirable. There is also the fact that the adjuncts will not be building a retirement, which will mean that they will need to draw more heavily on the state (or keep working past when they should retire). As such, the saving for the college comes at the cost of the adjuncts. This, of course, leads to a broader issue, namely that of whether or not employment should include retirement benefits. I would suspect that those who came up with this plan have very good retirement plans—but are clearly quite willing to deny others that benefit. But, if they truly wish to save money, they should give up their retirements as well—why should only faculty do without?