Just about every industry across the country is experiencing a widespread labor shortage.

In fact, the phenomenon is so prevalent that people are referring to it as ‘The Great Resignation’ as record numbers of workers are reevaluating and leaving their jobs amidst the ongoing pandemic. The U.S. Bureau of Labor Statistics reported that nearly four million Americans walked away from their jobs in April 2021—the most in a single month since the agency began tracking the statistic 20 years ago.

While companies nationwide are grappling with retaining talent, higher education institutions are facing a unique challenge of their own – shortages in financial aid offices. So what is the real impact of facing staff shortages in financial aid offices, and what might the financial implications be for your school?

Having fewer employees in the financial aid office can lead to consequences that extend far beyond longer customer wait times.

Over the last year, the National Association of Student Financial Aid Administrators (NASFAA) has reported an uptick in interest from institutions in the temporary staffing assistance that the association provides. In a recent interview with Inside Higher Ed, president and CEO of the NASFAA Justin Draeger said the challenge creates a disservice to both students and schools.

“Not only does it decrease services to students, especially at a time when students need the most help, but understaffing can also have a big impact on a school’s ability to be in compliance with the litany of federal and state requirements,” said Draeger.

While compliance is always important it’s especially critical now, as the Biden administration has openly shared plans to crack down on institutions that aren’t adhering to federal student aid program rules. The Office of Federal Student Aid at the Department of Education recently announced that it’s reviving the Office of Enforcement — which was deprioritized under the Trump administration — to “strengthen oversight of and enforcement actions against postsecondary schools that participate in the federal student loan, grant, and work-study programs.”

The bottom line?

Even if your financial aid office is fully staffed right now, you need to create long-term retention plans today so you don’t run into issues tomorrow. Some colleges across the country are staying prepared and finding success by streamlining and automating office processes. A good chatbot, for example, can answer hundreds, if not thousands, of routine questions, in real-time, in multiple languages, any time of day. They can be trained to refer especially tricky questions to staff for personal answers. Other successful strategies include cross-training employees, and even hiring work-study students who are already well trained with office practices.

“In the end, schools can pay now — by hiring and retaining staff — or pay later, when they are found out of compliance and face possible federal fines and penalties,” Draeger said.

Making a plan today to alleviate stressors that your financial aid officers face can be the difference between struggling or succeeding in the upcoming academic year. If you’d like your financial aid office to have an opportunity to review compliance with complex tax laws, our dedicated education team is here to help develop a personalized, long-term strategy for your staff. Contact us today here. Additionally, if you would like to submit topic ideas for future articles our team produces, please feel free to contact us at TLideas@rbtcpas.com.

Sources: NASFAA, Inside Higher Ed, University Business