More than a third of accountants wouldn’t have gone to university today
- £88,700 opportunity cost of higher education means only 40% of accountancy and finance professionals would have decided to go to university today
- Only 50% of accountancy and finance professionals would go to university today
- Universities must follow AC Grayling’s model to survive
If faced with today’s costs, only 40% of accountancy and finance professionals would have gone to university.
The coalition’s increase of university tuition fees to £9,000 per year means the cost of doing a three year course – including fees, loans and the opportunity cost of not being in work – now stands at £88,700.
When accountancy and finance recruiter Marks Sattin asked 409 accountants whether they would have chosen to go to university if it had cost as much as it does today, only 40% said they would.
Currently, new accountancy and finance graduates earn an average salary of just under £25,000 , which means it would take more than three and a half years to earn enough to cover the cost of their higher education.
Tim Hedger, deputy managing director of Marks Sattin comments: “People considering university should bear in mind not only the price of tuition and the debt they will take on, but also the financial loss from not working for three years. When you do this, the total cost of university begins to look very large indeed. The fact that some of London’s accountants don’t think doing a degree is worth the cost shows the UK’s universities have failed to offer value to students and provide a relevant education.
“Unless universities are able to show they offer value for money, the current costs mean they will fail. AC Grayling’s planned £18,000 per year New College of the Humanities may seem expensive at first glance, but by consulting industry experts in order to ensure students learn skills that will be useful in future, Grayling has ensured that students’ money won’t be wasted. To be seen as a real value-add , universities must offer skills and training tailored to a career”.
One accountant told Marks Sattin “I will do everything I can to support my children if they want to go to university – so long as the course is worthwhile. But I wouldn’t advise going to university unless it’s for a highly specialised subject which offers the chance to gain work experience and counts towards a professional qualification. Unless you can see how your studies will help you into the world of work, university is simply too expensive now”.
Many aspiring accountants are already able to choose not to go to university and learn their trades through apprenticeship schemes. KPMG, PwC and Deloitte run recruitment schemes for school leavers who have decided university is not for them. KMPG’s scheme allows school leavers to get the necessary academic training over 6 years, while earning £20,000 per annum and the firm anticipates that in future school leavers will account for 400 new recruits each year – the majority of its trainee chartered accountant intake . Deloitte has expanded its BrightStart scheme to 100 places for 2011 and PwC’s scheme promises candidates higher salaries than their peers would receive having joined directly from university.
Tim Hedger continues “On-the-job training is becoming commonplace in industries where a conventional university education was once considered a prerequisite. When an employer as big as KPMG suggests it will primarily recruit school leavers in future, it’s clear the move away from traditional forms of higher education is not far away”.
A KPMG press release on 7 March 2011 read “KPMG envisages that in due course its school leaver programme may account for the majority (in excess of 400) of its annual trainee chartered accountant intake.”
According to a similar poll conducted by the legal recruiter Laurence Simons, only 50% of lawyers say they would have attended university had they faced current costs.
Tim Hedger responds “Lawyers and accountants are high-earners and to hear some of these professionals would be willing to shun university indicates that even the prospect of getting a high-earning job is outweighed by the financial hand grenade university now represents”.
“While many of the top employers still require a degree, it’s clear this is declining. Accountancy firms like KPMG and Deloitte are leading the way in creating schemes which not only increase diversity in professionals services industries, but which give firms early access to focused individuals who are able to obtain relevant training as soon as they finish school.”
Additional coverage
Signup to receive the latest discipline specific articles
Related articles
Teaser
TechnologyContent Type
General
19/03/24
Summary
The year 2024 emphasises the crucial role of RegTech — a beacon guiding firms through the evolving global regulatory landscape, enabling them to connect the dots between short-term challenges and
by
Paul Roche
Teaser
TechnologyContent Type
General
19/03/24
Summary
The UK tech sector retains the number 1 spot in Europe and number 3 in the world as sector resilience brings continued growth. With this demand comes stiff competition. London offers a wide range
by
Ghazal Mayahi
Teaser
GeneralContent Type
Career Advice
19/03/24
Summary
Are you considering a change of scenery? Just look at London - an incredibly diverse city, with over 1,600 languages spoken and 300 nationalities represented. At the centre of the UK's 4.2 milli
by
Kelvin Murphy
Related jobs
Salary:
£55,000 - £65,000 per annum
Location:
Leeds, West Yorkshire
Industry
Manufacturing
Qualification
Fully qualified
Market
Commerce & Industry
Salary
£60,000 - £70,000
Job Discipline
Qualified Finance
Contract Type:
Permanent
Description
This acquisitive, PE backed business has more than doubled in size over the past 5 years whilst growing their team to 250 in the UK.
Reference
BBBH179803
Expiry Date
01/01/01
Author
Hannah BulmerAuthor
Hannah BulmerSalary:
£150,000 - £175,000 per annum + equity, bonus and benefits
Location:
London
Industry
Technology
Qualification
Fully qualified
Market
Executive Search
Salary
£175,000 - £250,000
Job Discipline
Private Equity Executive Search
Contract Type:
Permanent
Description
Marks Sattin executive is working with a PE Backed, International Software business, going through a period of rapid organic growth
Reference
TA 3225
Expiry Date
01/01/01
Author
Executive SearchAuthor
Executive SearchSalary:
£180,000 - £200,000 per annum + Equity, Bonus and Benefits
Location:
England
Industry
Professional Services
Qualification
Fully qualified
Market
Executive Search
Salary
£175,000 - £250,000
Job Discipline
Private Equity Executive Search
Contract Type:
Permanent
Description
Marks Sattin executive search is working with a PE Backed Financial Services business is seeking a Best-In-Class CFO
Reference
TA 3224
Expiry Date
01/01/01
Author
Executive SearchAuthor
Executive SearchSalary:
£180,000 - £200,000 per annum + exit bonus, benefits
Location:
London
Industry
Technology
Qualification
Fully qualified
Market
Executive Search
Salary
£175,000 - £250,000
Job Discipline
Private Equity Executive Search
Contract Type:
Permanent
Description
Marks Sattin Executive Search has an exciting opportunity for a CFO to join a PE Backed Tech Enabled B2B business.
Reference
TA 3223
Expiry Date
01/01/01
Author
Executive SearchAuthor
Executive SearchSalary:
£180,000 - £200,000 per annum + Equity, Bonus and Benefits
Location:
West Midlands
Industry
Consumer & Retail
Qualification
Fully qualified
Market
Executive Search
Salary
£175,000 - £250,000
Job Discipline
Private Equity Executive Search
Contract Type:
Permanent
Description
Marks Sattin Executive Search is working with an Established multisite wholesale Distribution business
Reference
TA 3222
Expiry Date
01/01/01
Author
Executive SearchAuthor
Executive SearchSalary:
£150,000 - £175,000 per annum + Equity, Bonus and Benefits
Location:
London
Industry
Consumer & Retail
Qualification
Fully qualified
Market
Executive Search
Salary
£175,000 - £250,000
Job Discipline
Private Equity Executive Search
Contract Type:
Permanent
Description
Marks Sattin Executive Search is working with a rapidly growing Fashion Retail business.
Reference
TA 3220
Expiry Date
01/01/01
Author
Executive SearchAuthor
Executive SearchSalary:
£150,000 - £175,000 per annum + Equity, Bonus and Benefits
Location:
Yorkshire and the Humber
Industry
Business Services
Qualification
Fully qualified
Market
Executive Search
Salary
£175,000 - £250,000
Job Discipline
Private Equity Executive Search
Contract Type:
Permanent
Description
Marks Sattin Executive Search has an exciting opportunity for a CFO to join a PE Backed infrastructure business
Reference
TA 3221
Expiry Date
01/01/01
Author
Executive SearchAuthor
Executive SearchSalary:
£180,000 - £200,000 per annum + Equity, Bonus and Benefits
Location:
England
Industry
Professional Services
Qualification
Fully qualified
Market
Executive Search
Salary
£175,000 - £250,000
Job Discipline
Private Equity Executive Search
Contract Type:
Permanent
Description
Marks Sattin executive Search is working with an international PE-Backed Buy and Build Corporate Services Business.
Reference
TA 3219
Expiry Date
01/01/01
Author
Executive SearchAuthor
Executive SearchSalary:
£45,000 - £47,000 per annum
Location:
Doncaster, South Yorkshire
Industry
Manufacturing
Qualification
Finalist / Newly qualified
Market
Commerce & Industry
Salary
£40,000 - £50,000
Job Discipline
Newly Qualified Finance
Contract Type:
Permanent
Description
Finance Business Partner // Manufacturing // £45,000
Reference
BBBH179631
Expiry Date
01/01/01
Author
James MetcalfeAuthor
James MetcalfeSalary:
£45,000 - £50,000 per annum
Location:
Sheffield, South Yorkshire
Industry
Manufacturing
Qualification
Fully qualified
Market
Commerce & Industry
Salary
£50,000 - £60,000
Job Discipline
Qualified Finance
Contract Type:
Permanent
Description
Management Accountant // Manufacturing // £50,000
Reference
BBBH179802
Expiry Date
01/01/01
Author
James MetcalfeAuthor
James Metcalfe