Avoid the Dreaded Employee Turnover on Your Financial Aid Team 

By: Juliana Davis, Senior Associate Consultant

Employee turnover is plaguing every industry, and financial aid departments are not immune to its dreaded effects.  According to a new report from the College and University Professional Association for Human Resources and the National Association of Student Financial Aid Advisors (NASFAA), “Over half of all financial aid professionals are likely to seek employment in a new sector within the next year.” Justin Draeger, former NASFAA president, stated,

“If we’ve learned anything from this last year, it’s just how critical financial aid administrators are to ensuring students can access postsecondary education.”  ”It’s equally vital they are recognized and fairly compensated for that work.” 

The rollout of the 2024-2025 FAFSA form indeed caused some burnout among our colleagues. However, this has been an ongoing issue for at least as long as I have been a financial aid professional over the past ten years.  Although about 79% would rank a pay increase as one of the top reasons they would seek other opportunities, it is not the only reason behind the staffing challenges.  

Make Adjustments Now to Support Your Staff 

I am certain many organizations took this article to heart, decided to review budgets accordingly, and prepared to make adjustments where possible. That being said, this is also a great time for organizations to seek support from our Financial Aid Services (FAS) consultants so their current staff can feel valued and supported and be more likely to stay with them.   

FAS can provide support from a “counselor” level and bring seasoned staffing to assist in many comprehensive areas such as training, processing, overseeing operations, managing staff, and so much more.  This is precisely what some financial aid offices need as they work to either hire permanent staff or train current staff.  In the interim, this option can help your staff feel supported and valued so they are encouraged to stay and provide continuity at your organization. Your leadership will appreciate the ability to keep turnover low and continuity in your services for students and families. 

In a time when financial aid professionals are feeling taxed and underappreciated, organizations may consider one or more of these suggestions as they look to the services we offer. 

Use Scenario-based Learning 

Many offices have weekly or bi-weekly meetings to “check in” or provide important high-level updates.  Although these updates are critical for staff members, they may not always address the office’s current challenges.  To help make the meeting more meaningful, consider having advisors engage in short role-playing or problem-solving exercises, such as appeal processing or a complex special circumstance. These situations can come from an instance in your office or a recent article or AskRegs case. This would be important for learning more interactively and encourage interaction between team members who might not otherwise converse. 

Allow Time for Professional Development 

We all know that financial aid offices are busy year-round. However, all levels of financial aid professionals should be provided with some time to attend webinars and/or conferences whenever possible. This is a good way to grow expertise and meet other professionals who can bring fresh perspectives or share processes that work for their offices. In addition, certification programs can enhance advisors’ expertise and show the level of professionalism at your organization. 

Benefits of Investing in Your Existing Employees 

• 34% of employees are more likely to stay in an organization that provides professional development opportunities.  

• 94% of employees would stay longer in a company that invests in them 

• 24% increase in productivity occurs when you invest in your employees 

In addition to professional development, financial aid employees need to break out of the silo mindset. Since the work they do affects many other departments on campus, interdepartmental collaborations can enhance workplace morale and productivity.  

Promote Interdepartmental Collaboration 

Some organizations are moving toward a “one-stop” model where all advisors can assist with financial aid and address admissions and registrar inquiries. This may not be an eventuality for your specific organization. Still, it would allow your staff to provide a more seamless experience for students and families and encourage professional growth in all areas.   

In a recent Forbes article, Brett Hansen stated, “When employees work collaboratively with colleagues from different departments, they feel more connected to the company’s goals and vision, leading to a higher level of job satisfaction and improving retention rates. When different departments communicate and share resources, they can identify and resolve issues more quickly, reducing errors and delays and ultimately resulting in cost savings.” 

Of course, this means all departments will need to “buy in” and understand the value of this type of interaction.  Either way, fostering collaboration between departments positively benefits your organization overall. It may even provide a more fulfilling experience for your team as they feel more invested in your students and their success. In addition to collaboration between departments, your institution could also benefit from external partnerships.  

Build Partnerships with External Organizations 

Many external organizations want to connect better with their clients. These may be your scholarship organizations, lenders, and nonprofits that want to share resources with your students. Liaisons can be a great way to provide more valuable resources for your students and families. Designating a few staff members for this role would help your staff feel imperative and provide better, more concise resources for your students. Many are familiar with the phrase, ‘What’s not measured, cannot be improved.” As you employ these various strategies, it’s essential to have a baseline to see what new benchmarks your staff has achieved.  

Discuss Expectations and Performance…. Early 

This is where staff can feel anxious or even vulnerable if performance evaluations are only being addressed once a year. Any constructive feedback should happen all year rather than being pushed to an annual performance review.  Financial aid professionals are constantly given new tasks; this is a great time to set the expectations and provide constructive feedback regularly to ensure the required standards are met. It is essential to provide the resources to complete the tasks and allow for questions or clarifications all year. Hence, there are no surprises during an annual performance review. 

By investing in your staff this way, your organization can work to curtail high turnover and enhance the skills and effectiveness of your financial aid professionals, ultimately improving the overall experience for your students.  

Partner with FAS for the best tools & strategies to support your financial aid team!