The key principles of transformational leadership in the workplace

/in , /by

There are many different ways to lead in today’s modern work environment. One theory which has gained traction since its inception in the 1970s, first by sociologist James V. Downton, then built on by American leadership expert James MacGregor Burns and business researcher Bernard M. Bass is the transformational leadership theory.

In this blog, we’ll outline what the concept of transformational leadership means, the key characteristics that are displayed in these types of leaders, and how transformational leadership can positively impact organisational performance.

What does transformational leadership mean?

The transformational leadership style is a type of leadership model which encourages teams to achieve success together through a joint sense of purpose, raising their morale and confidence to work towards a common purpose.

Transformational leaders are role models who are highly respected by the teams they lead. When this leadership model is applied correctly, leaders are able to inspire positive change and transform struggling teams into productive and dynamic groups of individuals with high job satisfaction.

There are four ‘I’s’ that make up the components of transformational leadership. These are:

  • Intellectual stimulation: driving innovation and creativity with goals and challenges
  • Individualised consideration: providing mentorship and offering empathy and purpose by understanding individual strengths
  • Idealised influence: is an enthusiastic role model who embodies team and organisational values
  • Inspirational motivation: has a clear vision and is optimistic in promoting inclusion and productivity.

Key characteristics of transformational leadership

There are many characteristics that form how transformational leaders manage their teams. These leadership skills aren’t necessarily innate, and can be learnt and developed by leaders who choose to adopt this leadership model.

Open to new ideas

Transformational leaders are always open to new ideas from their teams. They are focused on innovation and how they can do things differently to constantly improve, and welcome open dialogue and innovative thinking from their teams.

Transformation and innovation always comes with risks. A good transformational leader is able to assess the weight of any risky decisions and either have the confidence to move forward and try a new idea or adapt and try a different approach if the risk is too great.

Inspires confidence

One of the main characteristics of a transformational leader is that they have the ability to inspire confidence in their team. They operate from a place of empathy and support, encouraging individuals to step out of their comfort zones and creating a positive business environment where employee well-being is prioritised.

These leaders are good communicators and work alongside their teams and their peers and management to shift people’s views on how things should work. They seek to understand people’s mindsets to be able to convince them ofnew ways of working, and have the confidence of the business behind them.

Promotes active listening

Transformational leaders develop their active listening skills and employ them when communicating with their team. By being present and making their employees feel heard and listened to, they create a culture where those employees feel able to share ideas and their thoughts without fear.

Meeting people with active listening and empathy means people feel seen, understood and respected, making them more likely to put forward suggestions and be an active participant. 

Accepts responsibility

Being a good role model is a key characteristic of transformational leaders, and good role models always accept responsibility for all outcomes of their team, whether they’re positive or negative.

By not pushing the blame onto their employees and taking the fall when an idea fails, transformational leaders take the responsibility for the impact of decisions they’ve green lit within the team.

Trusts team

Trusting team members enables individuals to develop their ideas and share them with others.By giving their teams autonomy, these effective leaders give employees the space and courage to feel like they have the trust of their manager to hit goals, enabling them to work at higher levels of productivity and feel confident in their decision-making and problem-solving abilities.

Encourages creativity

Innovation and creativity only happens when everyone in a team is encouraged to have new ideas. Rather than telling their teams what to do or just relying on a couple of people to have ideas, building creativity into a company culture gives everyone the opportunity to contribute.

Good teamwork happens when a team supports everyone involved, so transformational leaders set the expectation that every individual is able to think outside  the box to work towards shared goals together.

How does transformational leadership impact organisational performance?

There are many research studies which suggest that transformational leaders influence their subordinates by motivating them to achieve organisational goals. 

When done well, transformational leadership  positively impacts organisational citizenship behaviour and performance – when work duties are exceeded without any initiatives or reward system. This behaviour has a positive impact on the organisation as a whole, empowering individuals to exceed expectations. Studies have shown a link between transformational leadership and organisational citizenship behaviours such as virtue, assistance, sportsmanship, and altruism.

This kind of leadership style also has a positive effect on organisational culture, which impacts outcomes in employees such as commitment, performance, productivity, self-confidence and ethical behaviour. Transformational leaders are able to motivate people and inspire a shared vision for the future. 

Creating a company culture where the status quo is positive and supportive can lead to higher profitability for the business overall.

Develop your effective leadership skills 

Empowering teams to develop their competencies is an essential part of your professional development if you hope to progress into leadership roles.

Learn key skills in business management and leadership development with the University of York’s 100% online MSc in Innovation, Leadership and Management. Taught part-time, you will be able to fit your studies around your current role or commitments, developing your practice and progressing your career at the same time.

Policy initiatives to improve the sustainability of education systems

/in , /by

Education is one of the UN’s 17 sustainable development goals. So, by 2030, all countries should be providing inclusive and equitable quality education and promoting lifelong learning opportunities for everyone. But how can this be achieved?

What policies for education systems work and what more needs to be done to improve teaching practices and support higher student achievement?

This blog highlights examples of how policy makers and shapers in different countries are paving the way for better education opportunities for all children and young people.

How do policies and procedures improve quality in education?

Education policies are vital to set education standards at national and local levels to ensure all children have access to education. They also ensure both students and teachers understand what is expected of them, that they remain safe, and that all students can expect to receive a good quality education.

Policies may vary from country to country, depending on resources, cultural norms and education priorities in different contexts.

For example, every child aged 6–14 in 2009 gained the right to free and compulsory education in India.Since then, the Right to Education Act (2009) has provided a springboard for improvements in Indian education systems, with the National Education Policy for India (2020) at the heart of changes that should provide better learning for all.

Education reform in the UK

Educational reform in the UK has a long history. In the 1960s, the comprehensive school system was introduced to remove the barrier of completing an entrance exam to access secondary education.

Government policies underpinned by the Education Reform Act (1988) saw introduction of the National Curriculum to formalise education standards, ensuring all learners were taught the same topics regardless of school or location.

This was closely followed in 1992 by the introduction of school league tables to monitor schools’ performance. In the same year, the Office for Standards in Education, Children’s Services and Skills, known as OFSTED was established. OFSTED inspects schools to measure good teaching practices, policies and procedures.

Not all education policies are successful and often additional measures are needed to help address inequalities. In the UK one such measure, the SureStart programme, was introduced in 1998 to provide incentives to support children under five years old.

International collaboration that supports best practice in education policy

To support progress towards the UN’s Sustainable Development Goal on Education, policy makers in many countries are setting their sights on better education systems.

International collaborative bodies like the Organisation for Economic Cooperation and Development (OECD), which includes representatives from 37 democratic countries, including France and Germany, are playing an important part.

The OECD Education Equity Dashboard supports five policy aims:

  • Raising educational outcomes through more equitable education opportunities

  • Investing in the early years

  • Empowering teachers and school leaders to support equity in and through education at school level

  • Aligning resources and teacher competencies and pedagogy with the needs of learners

  • Enabling an inclusive school environment.

OCED’s evidence-based approach to advance education aims to ensure all learners can develop the knowledge base, skills and values to thrive in inclusive societies. This will help to ensure education contributes to sustainability through equitable economic and social outcomes.

In addition, the UN Educational, Scientific and Cultural Organization (UNESCO) collaborates with governments worldwide to strengthen policy frameworks that help to improve management efficiency and enhance learning assessment in education systems.

How can education systems become equitable by 2030?

Inequalities in education start at a young age. According to the Sutton Trust the UK’s poorest children are 11 months behind when starting primary school at 4 years old. By the time they sit their GCSEs, the gap in student achievement has widened to 19 months, reports suggest.

Disparities in wealth interacting with other disadvantages, such as gender, where a child lives and whether they have a disability contribute to these inequalities.

Basic skills in numeracy and reading are important elements of a child’s early education and often begin before they start primary school. A report commissioned by the UK’s Department for International Development (DFID) recommends interventions that could address the learning inequality gap and help provide equitable quality education by 2030.

  • Address disadvantages from early childhood

  • Ensure teaching is at the right pace for the weakest learners

  • Provide disadvantaged children with the support of the best teachers

  • Provide learning resources that support children learning at an appropriate pace

  • Empower parents and communities to hold schools and policymakers to account for poor quality education.

Who develops education policy in the UK?

In the UK many different individuals and organisations work to develop policy priorities to improve access to quality education, from primary education and secondary schools to access to educational institutions in the tertiary and higher education sectors.

In the UK, education policy stakeholders include:

  • school leadership including governors and teachers

  • non-governmental organisations (NGOs) and charities, like Education Policy Institute (EPI) and the Sutton Trust

  • central government departments, including the Department for Education

  • Education All Party Parliamentary Group APPG.

The Education Policy Institute published educational research in a benchmarking report at the end of 2023 that includes insights from 75 education experts on the education challenges facing the UK government and possible solutions to improve outcomes. It identified several points of concern that require policy development:

  • Teacher retention – a third of teachers leave the profession within 5 years of obtaining their teacher training qualification and improvements in working conditions are needed

  • Pupils with special educational needs and disabilities have increased by 50% in five years

  • In 2019, only 1 in 20 primary schools in England met the Government’s target of 90% of pupils reaching the expected competencies in reading, writing and numeracy

  • Absence from education is happening on a large-scale with almost a quarter of learners missing more than 10% of sessions. It is now one of the most pressing issues facing the English education system.

The report proposed the following policies:

  • Support the growing number of children with special education needs and disabilities and rebuild parents’ trust in the system

  • Address challenges inside and outside the school gates to improve educational outcomes, including lifting families out of poverty and increasing targeted funding for disadvantaged pupils and young people.

Different approaches to education policy between countries

In the US, most education policy is decided by policy makers at the state and local government levels, rather than at a national level. For example in the state of Texas, Districts of Innovation (DoI) give public school districts flexibility to meet their individual needs, rather than being controlled at a state level by the Texas Education Agency.

In addition, at a national level, the Biden-Harris administration announced its Improving Student Achievement Agenda in January 2024 to drive country-wide adoption of evidence-based strategies to improve students’ levels of education:

For many countries, class sizes in schools are an issue. For example in China, in 2021, there were 21,000 primary school classes with 56 or more students. Measures to increase the size of schools with better facilities and more teachers has meant that the following year, this number had reduced to 13,800.

Improving policy development and implementation

Shaping policies in education is a complex process that requires input from a wid -range of experts including education practitioners, lawyers, researchers and analysts. With the world focussed on the sustainability of education systems that provide equitable and inclusive education systems for all, policy developments that deliver improvements have never been more important.

Extend your professional development in public administration, and lead change with your ability to manage through networks and partnerships, with the University of York’s online Masters in Public Administration.

Over the course of the programme you will grow as a competent and reflective practitioner, both in your current role, and in preparation for more demanding roles in the future.

The importance of sustainability in international trade

/in , /by

Businesses who trade overseas have a responsibility to be mindful of their expanding global footprint and environmental impact. Now, more than ever, as the climate change conversation continues to grow, to be sustainable, companies must try to minimise their carbon emissions, reduce waste, and conserve natural resources in their business practices.

Many consumers are also concerned with the sustainability of the products and services they purchase, so it makes good business sense for companies to try to be as environmentally sustainable as possible, to increase their market share and be competitive.

In this blog, we’ll explore what companies can do to be more sustainable, outline the World Trade Organisation’s sustainability goals, and discuss how greener trade policies can address climate change issues.

What is international trade policy?

International trade policy is a government’s rules and regulations which guide and control how trade is done with foreign countries. Each country sets out its own international trade policy, so each country has the means to adopt and implement environmentally sustainable goals for their domestic producers who import and export goods.

What can companies do to be more sustainable?

There are many ways companies can adopt more sustainable practices into the way they do business. Some of these include:

  • renewable energy use
  • eco-friendly packaging
  • responsible supply chain management
  • mitigate environmental harm
  • sustainable transportation
  • support initiatives preserving biodiversity and ecosystems.

The World Trade Organization’s sustainability goals

The 2030 Agenda for Sustainable Development was adopted by all United Nations members in 2015. The Agenda created 17 world Sustainable Development Goals (SDGs) which put emphasis on the role that trade plays in promoting sustainable development. The World Trade Organization (WTO) is central to achieving this Agenda. Below are the SDGs it is focusing on.

No Poverty

Evidence suggests that good trade policy initiatives can positively impact sustainable poverty reduction. Global trade can higher living standards through greater productivity, increased competition and better prices in the marketplace.

Zero Hunger

Subsidies can cause distortions in agricultural markets. Eliminating these leads to a more competitive market, which helps farmers and consumers and contributes to food security globally.

Good Health and Well-being

A WTO agreement makes it easier for developing countries to have a secure legal pathway to affordable medicines in line with this goal.

Gender Equality

Export sector jobs tend to have better pay and conditions, while providing jobs for women in developing countries. In this way, trade creates opportunities for women’s employment and economic development.

Decent Work and Economic Growth

Sustainable development relies on trade-led inclusive economic growth which can enhance a country’s income-generating capacity.

Industry, Innovation and Infrastructure

Open markets are key for trade and investments between developing and developed countries. This allows for the transfer of technologies, resulting in more industrialisation globally.

Reduced Inequalities

Changes in development globally have been decreasing inequality between countries. WTO tries to reduce the impact of existing inequalities by offering flexibility and a focus on capacity constraints for developing countries.

Life Below Water

WTO members have been negotiating global rules to curb harmful fisheries and work is continuing on issues where further technical work is needed.

Partnerships for the Goals

The targets under this goal call for: 

  • Countries to promote a universal, rules-based, open, non-discriminatory and equitable multilateral trading system
  • The increase of developing countries’ exports and doubling the share of exports of least-developed countries (LDCs)
  • The implementation of duty-free and quota-free market access for LDCs with transparent and simple rules of origin for exported goods.

The WTO is the key channel for delivering these goals.

Are global value chains (GVCs) sustainable?

GVCs are when the production of products happens through multiple countries with manufacturing and assembly happening on a global production line. Each step of the process, and each country involved, adds value to the end product.

A research article published in the Journal of International Management explored the link between international business sustainability and GVCs. They found that ‘GVCs, under world-systems theory, recognised the social relations of international actors within a chain. This resulted in the emergence of sustainability as a significant theme within the GVC analysis, including the social, environmental, and governance dimensions of value creation processes.

How do trade agreements between countries impact global economic growth in developing countries?

Being able to trade internationally enables countries to expand their markets and access goods and services which may not have been available domestically. Expanding products into international markets makes the market more competitive, resulting in more competitive pricing and cheaper products for the consumer.

How greener trade policies can address climate change issues

International trade promotes economic efficiency by expanding job opportunities, knowledge sharing, and goods and services into other countries. It may also be able to disseminate green technologies and expertise by capitalising on the connections between countries. Transitioning to a greener world is only possible by applying climate goals to global trade rules, otherwise climate issues could shift between countries.

Trading countries can use forums like the WTO to promote international environmental cooperation, and can also seek green bilateral and multilateral trade agreements, as well as take unilateral steps. However, in order for it to work, all countries need to be mutually agreed and committed to climate issues.

To punish the countries who don’t commit to addressing climate issues, importing countries are able to implement environmental tariffs (or eco-tariffs). This is a tax on products which are imported from countries with inadequate environmental pollution controls. 

Become an expert in trade sustainability strategy

There is a high demand for professionals who can improve global trade policies and practices. They would focus on environmental issues and create an action plan to promote sustainability in international trade.

On the University of York’s 100% MPA Public Policy and Management, you will have the opportunity to create a positive difference in carbon reduction, equipping you with the skills to manage stakeholders across industries.

Whether your goals are in environmental policy, economic sustainability issues, sustainable procurement, or working in a company committed to continuous improvement in reducing its carbon footprint, you will develop the skills and knowledge to succeed in this sector.

Tips for managing and reducing your debt

/in , /by

Debt comes in various forms that most of us will encounter at some point. These include student loans, mortgages, car loans, personal loans, and credit card debts. If debt is not managed well, it can become a significant burden.

Financial stress can be all-consuming and debts can quickly spiral out of control if regular repayments aren’t made. In this blog, we’ll explore why it’s important to manage your debt, what debt consolidation is and when it’s a good idea, and some strategies you could implement to pay off your debt and regain control of your financial wellbeing.

Why good debt management is important

When you have good debt management, you’re more able to maintain financial health and stability. By making informed decisions about borrowing and repayment, staying on top of repayments to avoid late fees, and being alert to high-interest rates, you can keep control of your finances.

Bad debt management can negatively affect your credit score, preventing you from being able to secure future opportunities. If you have a good credit score, you’re more likely to be approved for better deals on mortgages, loans and credit cards. By getting better deals, you’ll save a lot of money in interest in the long-term.

What affects your credit score?

There are many factors which can positively or negatively affect your credit score. There are many providers who can show you your credit report for free online.

Factors which are good for your credit score include:

  • Only borrow what you can afford and ensure you’re able to meet the regular repayments on any debt taken out.
  • Direct debits and regular payments look good, so set up direct debits for payments such as a mobile phone bill or credit card payments.
  • Keep balances low as it reflects well if you keep the amount you owe less than the amount you’re allowed to borrow.
  • Credit scoring generally looks at the average age of your accounts, so keep your bank accounts long-term and well-managed.
  • Register to vote at your current address as this confirms who you are and where you live.
  • Check your credit score regularly for accuracy.
  • Be vigilant and make sure any suspicious charges on your account are investigated, as fraud or identity theft can impact your credit score.

Factors which can have a negative impact on your credit score include:

  • setting up new bank accounts too frequently
  • being close to your credit limit
  • applying for credit too often
  • missing repayments on credit you already have
  • borrowing more than you can afford to pay back.

The best way to use a credit card

You should only take out a credit card if you can afford to make the monthly repayments on it. When you’re shopping around, pay attention to the interest rates on offer so you have an idea of how much it’ll cost you to use the card.

Using a credit card responsibly requires you to:

  • Pick a card that works for you and what you need it for.
  • Always make payments on time.
  • Only spend what you can afford to repay.
  • Keep credit card balances low.
  • Understand how credit scores work and how your credit card can affect it.

What is debt consolidation and when is it a good idea?

Debt consolidation is a debt management plan where you roll old high-interest debts into new debt by taking out a single loan or credit card. In doing this, you only have one monthly repayment to make rather than several, and can potentially benefit from a lower rate and lower monthly payments.

Before taking out a debt consolidation loan, you should calculate how much you’re currently spending in interest on existing debt and how much you’ll pay on the new debt. While the interest rate on the new debt might appear lower, it’s also important to check the length of time it would take you to pay off both in full as, if the new debt is longer, you may end up paying more overall interest.

If the amount of interest repaid is lower than your existing agreements, debt consolidation might be a good idea. Some balance transfer credit cards also offer incentives such as a 0% interest rate on your balance for a period of time, so it’s worth seeking these offers.

What is a debt relief order?

A debt relief order is a way of cancelling your debts. They are an option if you’re struggling with repayments and your financial situation doesn’t improve after 12 months. When you have a debt relief order, you no longer pay back what you owe and interest and charges will stop being added. You also don’t have to engage with the lenders you owe money to.

There are risks involved with a debt relief order. While you will be debt-free, the order will be kept on a public register for 15 months and on your credit file for six years. This could make it harder for you to get credit in the future. It may also be cancelled if your finances improve or if you break the rules of the order.

Effective strategies for managing debt

Here are some debt management strategies:

  • Pay bills when they arrive to reduce the risk of late fees or interest costs.
  • Prioritise debt payments, focusing on clearing those with the highest interest rates first.
  • Create an overview of everything you owe so you can clearly understand the amount of debt you owe.
  • Create an emergency fund in a high interest savings account to cover unexpected expenses, avoiding the need to borrow in the future.
  • Pay what you can afford on current debts, not just the minimum payments.
  • Seek help with creating a repayment plan or for credit counselling when you’re struggling, rather than letting it snowball. 

Learn essential skills in financial management

Boost your career in finance with a 100% online MSc in Finance, Leadership and Management with the University of York.

Whether you work as a business owner, financial advisor, or within a finance team at an organisation. This degree will equip you with the skills needed to provide professional advice on financial goals, such as effective debt management. It will also set you on the path to a leadership position.

You’ll learn core skills in corporate and personal finance, whilst developing your ability to lead a team or a company to financial freedom.

Understanding the financial challenges faced by the millennial generation

/in , , /by

Millennials – the term used for anyone born between 1981 and 1996 – have come of age during a period of vast technological change, economic disruption and evolving societal norms. These transformations have uniquely shaped their financial perspectives and experiences.

In fact, it’s fair to say that the millennial generation has been hit by some of the most significant economic events of the past century – from the Great Recession of the late ‘00s to the recent pandemic – all of which has impacted their ability to build wealth and find financial stability.

An overview of the millennial generation

Millennials are so called because they’re the first generation to enter adulthood in the new millennium, and this has set them apart from previous generations in several ways. 

For example, millennials will remember a time without the internet and advanced digital technology like smartphones, but are also considered digital natives. 

Millennials are also noteworthy for being the most well-educated generation as well as the most racially diverse, and for buying their own homes, getting married, and having children later than those in the Gen X or baby boomer generations – a characteristic tied to the financial challenges that the generation has faced.

Economic challenges for millennials

Many millennials have struggled with financial challenges that were less pronounced for baby boomers and Generation X at similar stages of life. 

Their attitudes towards money are markedly different, too, now focusing more on financial wellness and the balance between quality of life and fiscal responsibility. This can largely be attributed to the economic climates they have grown up and matured in, and the economic challenges they’ve experienced. 

Economic turbulence

Economic instability has been a consistent theme in the lives of many millennials. The Great Recession (2007 to 2009) coincided with the formative years of many young adults in this group, altering their perspectives on money and significantly affecting their career trajectories.

In the UK, the aftermath of this financial crisis was felt through austerity measures, impacting public services and employment opportunities. All of this was followed by the coronavirus pandemic, which sent shockwaves through the economy, plus further recessions in 2020 and 2023.

Like the UK, the Federal Reserve in America and other central banks worldwide have similarly grappled with recessions and policies that have seen interest rates plummet, affecting savings rates and overall economic recovery.

The ongoing repercussions of these economic downturns, coupled with recent inflation surges, continue to challenge millennials’ financial security, making it difficult to create everything from a financial safety net to a retirement plan. Because of this, many in the millennial demographic have struggled with the cost of living, amassing significant credit card debt to make ends meet and further adding to their financial stress. This is even worse in the US, where many American millennials face huge healthcare costs or health insurance fees.

Student debt

Many millennials were taught that higher education was a crucial path to securing well-paying jobs, leading many millennials to pursue degrees.

However, this has often come at the cost of accumulating substantial student loan debt. Data shows that the promise of higher income has been dampened by the reality of paying down large debts, a burden that previous generations did not face to the same extent. And this debt has far-reaching consequences on other financial decisions and milestones, such as homeownership and retirement savings.

Housing and homeownership

Homeownership rates among millennials lag significantly behind those of previous generations at similar ages.

In the fiercely competitive housing markets of major cities like New York and London, soaring home prices and stagnant wages have made down payments and mortgages less attainable. And rising mortgage rates aren’t helping anyone, no matter where they live.

The rental market isn’t much relief either, with high rents consuming a large portion of monthly income, making it challenging for young people to save enough money for a home or otherwise invest in their future.

A 2024 House of Lords report on the housing needs of young people highlights some of the data specific to the UK:

  • 35% of 25- to 34-year-olds in 2017 were homeowners, a decrease from 55% in 1997.
  • Average property prices in England had risen by 173% (after adjusting for inflation) and 253% in London since 1997.
  • The proportion of young adults who would need to spend more than six months’ income on a 10% deposit for the median property in their area had increased from 33% in 1997 to 78% in 2017.

Salaries and employment

While millennials are the most educated generation to date, this has not necessarily translated into financial success or full-time employment. Many millennials left education to find themselves in a job market characterised by job scarcity, underemployment, and salary stagnation. 

 

“In the wake of the 2008 global financial crisis, unemployment was elevated in many countries, and reached a high of 11.8 percent in the UK in 2011,” Statista explains. “With young workers generally being the most impacted by such high unemployment, millennials bore the brunt of this crisis, and in 2012, there were 1.39 million millennials unemployed.”

However, this picture is slowly changing shape, with lower levels of unemployment coupled with millennials’ adaptable nature.

“In more recent times, millennials were the generation most associated with career advancement, with 26 percent of people in the UK believing millennials would value this over a work-life balance, the most of any generation,” says Statista. “Other traits people associated with millennials were being financially insecure, open to different lifestyles, and a willingness to make lifestyle changes for the environment.”

What comes next: financial challenges for the Gen Z and Alpha generations

As millennials continue to navigate their financial realities, the upcoming generations, Gen Z and Generation Alpha, are on the brink of facing their own economic challenges. These younger generations are set to inherit many of the systemic issues that have not yet been resolved such as high educational costs, uncertain job markets and unaffordable housing. But the experiences of millennials offer valuable economic lessons that can help future generations achieve financial stability and well-being for themselves – and for the wider global economy.

Join a new generation of financial leaders

Develop the knowledge and skills to respond rapidly and effectively to changing business and financial environments with the 100% online MSc Finance, Leadership and Management degree from the University of York.

Financial wellness programmes and their impact on employee satisfaction

/in , /by

A 2023 study by the Mental Health Foundation reported that 73% of the population reported feeling anxious about finances and the cost of living ‘at least sometimes’ in the last fortnight.

Financial stress and anxiety don’t just have a negative impact on the personal and professional lives of employees: they can also have undesirable consequences for the organisations they work for. After all, the relationship we have with money can affect every facet of our lives. Meaningfully addressing financial concerns should be a top priority for business leaders, managers, and financial specialists.

What is financial wellness?

No one wants to worry about money. Sadly, it’s probably something all of us have experienced at one time or another.

According to the Money and Pensions Service (MaPS), financial wellness – also referred to as financial wellbeing – is ‘about feeling secure and in control of your finances. It’s about making the most of your money from day to day, dealing with the unexpected, and being on track for a healthy financial future.’

Mental health organisation, Calm, list three levels of financial wellness:

  • Basic financial security. Having sufficient money to cover essential needs and daily expenses, such as food, housing, and transportation.
  • Financial safety. Having relevant financial safeguards in place, such as a lack of high-interest debt, health insurance to cover surprise healthcare costs, or an emergency savings account to help weather unexpected situations
  • Financial freedom. Having enough money to make choices that aren’t based on financial necessity and allow you to live comfortably, such as travel, or early retirement – which offers the greatest peace of mind and better overall wellbeing.

Now we have a better idea of what it is, let’s take a look at how financial wellness links to employee satisfaction and wider organisational improvement.

How do financial wellness initiatives boost employee engagement, satisfaction and productivity?

Financial wellbeing matters because individuals who experience financial wellbeing feel more confident, empowered, and resilient – traits that can have profound benefits within the workplace.

Organisations with high levels of employee financial wellness can expect happier, healthier employees who perform better in their roles. After all, people who are less stressed about money experience better overall mental health and physical health.

Improved employee health often leads to:

  • reduced absenteeism and presenteeism. The Society for Human Resource Management (SHRM) state that financial worry results in a 34% increase in absenteeism and tardiness. Employees who are constantly worried about money may come into work despite feeling mentally and/or physically unwell.
  • stronger professional relationships and a better work environment. Employees who aren’t constantly dealing with financial strain will turn up as better versions of themselves in the workplace. They’ll be more motivated, more likely to work well with others and contribute to a more positive overall atmosphere.
  • increased employee productivity and job performance. By reducing sick days and ensuring team members aren’t turning up to work when they should be off, productivity and quality of work will increase.
  • greater job satisfaction and higher employee retention. When money worries are taken off the table, employees who are more productive, motivated and able to engage meaningfully in their work are likely to experience increased job fulfilment. Organisations can also benefit from lower turnover rates, as team members won’t perpetually be on the look-out for any job with a higher salary.

These financial wellness benefits offer a dual advantage: a healthier bottom line for employees and for businesses.

What are the most effective ways of improving the financial wellbeing of employees?

An article in the World Bank Economic Review states that: ‘financial education significantly impacts financial behaviour and, to an ever larger extent, financial literacy.’

Arranging financial wellness education programmes for employees is one of the best ways to improve financial literacy and pave the way to overall financial wellbeing – whether these are designed and facilitated in-house training teams or outsourced to financial consultants and experts. The World Bank Economic Review goes on to report that: ‘intervention success depends crucially on increasing education intensity and offering financial education at a “teachable moment.”’

Additionally, ensuring your organisation offers a comprehensive employee benefits package can contribute significantly towards alleviating financial strain and employee stress, and fostering a sense of security. Conducting a company-wide wellness survey can be an effective way to drill down into what is truly affecting employees. If money or specific aspects of money management are a common theme, this can be addressed.

What should a financial wellness programme include?

A comprehensive financial wellness programme provides employees with knowledge and tools related to all aspects of money management and personal finances, from savings and investments to pensions and retirement planning.

It may include elements such as:

  • budgeting – such as household and personal expenses
  • credit scores – and how to improve them
  • expenditure – including behaviour and patterns
  • financial insurance
  • financial goal setting and financial planning
  • short-term and long-term finance options
  • debt management, reduction, and elimination
  • loan repayment plans – from student loans to household loans
  • financial crisis and emergency management – for instance, linked to redundancy, unemployment, and bankruptcy.

It may also feature financial coaching, personalised financial counselling and financial health assessments, signposting to relevant financial support services and tools (such as Money Smart, InCharge, and MoneyWi$e), and mental health support and financial stress management.

At their core, financial wellness programmes help employees to make better financial decisions – and boost their financial health.  Remember, the course content and approach may need to be closely tailored to the target audience and their individual, diverse needs. For example, different socioeconomic needs may make some elements of the programme more relevant than others.

Empower others to take charge of their financial situations – and reap the business benefits

Gain sought-after skills in leadership and management with a specialist focus on money and finance  with the University of York’s online MSc Finance, Leadership and Management programme.

Invest in your professional development and put yourself in a strong position for landing senior roles in business and finance with our highly flexible, 100% online Masters degree. You’ll gain a well-rounded perspective of the opportunities, risks, and challenges of businesses operating in financial markets, against a broader backdrop of organisational behaviour, management and economics. As well as key business fundamentals such as operations management, leadership and people management, strategy, and global marketing.

How inflation impacts cost of living

/in , /by

In the UK, the cost of living increased sharply during 2021 and 2022. In October 2022, the annual inflation rate peaked at 11.1%, the highest it had been in 41 years. Since then, the rate has been gradually decreasing, and the Bank of England expects the drop to continue down to 2% by mid-2024.

Inflation and its impact on cost of living has been widely spoken about in recent years as people feel the pinch of their money not going as far as it once did. 

In this blog, we’ll outline what the cost of living crisis is, explore what has caused the high inflation rates, and discuss what you can do to cope with its impact.

What is the cost of living crisis?

The cost of living crisis is defined by a period of time in which the cost of everyday essentials, such as food and bills, increases at a quicker rate than household income. This change results in less  disposable income for individuals and a change in their standard of living. The UK has been in a cost of living crisis since 2021.

Inflation measures how fast prices  have risen year on year and are expressed as a percentage change. The percentage is measured by the Consumer Prices Index (CPI) which is based on cost data compiled by the Office for National Statistics. Many everyday items, including food, fuel, and housing costs, are tracked in the “basket of goods” which is used to calculate CPI inflation.

What has caused high inflation in the UK?

The Bank of England says there have been three large economic shocks which have caused high inflation and price hikes in many essential goods in the UK.

The Covid pandemic

The Covid lockdowns disrupted global supply chains, particularly in Asia and China. When the high demand for products and services returned, many supply chains broke down. There was a shortage of transport shipping in many ports, which led to a rise in transport fuel prices for many manufactured goods. These costs were passed onto the consumers.

Stable supply chains and business operations took a while to return to normal. Staff had been laid off during the pandemic and services had been cut back. This disruption also impacted food supply and the import costs associated with it, on top of higher import costs already in place post-Brexit. In the UK, around 50% of food is imported – much more than other European countries, making our food prices higher.

Russia’s invasion of Ukraine

Unlike the US which produces most of its own gas, or countries like France which generate more power from nuclear plants, the UK imports most of its gas via pipelines from a handful of suppliers, resulting in higher energy prices. These prices crept up more when Russia invaded Ukraine and made the UK’s access to their gas more difficult.

In recent years, the UK government has committed to not importing any gas from Russia. In  March 2023, they published a press release declaring themselves ‘one year free from Russian gas’. This comes as part of the ‘Powering Up Britain’ plan which aims to scale up affordable, clean, homegrown power and build thriving green industries to boost the UK’s energy security and independence and reduce household bills and gas prices long-term.

A shortage of available workers

Workforces in countries across the globe shrank during Covid and most have recovered. However, in the UK there are still around 400,000 people not working, as many young people are opting to study instead of work, the number of over-50s taking early retirement has rapidly risen, and more people are off work with long-term sickness. 

Research also suggests there are fewer workers available due to Brexit, hitting sectors such as transport, hospitality and retail hardest.

When there is a smaller pool of talent to choose from, pay rates rise to attract and retain staff which is another cost which impacts the consumer.

What is the UK inflation rate and how does it affect me?

The UK inflation rate in March 2024 was 3.2% – the lowest rate since September 2021. This is above the Bank of England’s goal of 2%, so it decided not to cut interest rates (which are used to control inflation).

The reason for the drop in the inflation rate was due to the lower cost of some food items in the ONS’ “basket of goods”. However, the Bank of England also considers something called “core inflation” which excludes the price of energy, food, alcohol and tobacco. With these items excluded, core inflation was 4.7% in March.

Interest rates are put up to lower inflation. The theory is that if borrowing is more expensive, people have less to spend and may save more, reducing the demand for goods which slows price rises.

Many individuals feel the effect of the UK inflation rate and the cost of living crisis, as many goods and services are more expensive than they were a few years ago. If the inflation rate continues to decline, the amount of disposable cash individuals have should increase.

How does inflation impact businesses?

The impact inflation has on businesses varies across sectors, though most will feel an impact in some way.

Some of the impacts include:

  • Profit margins fluctuating between sectors: Factors such as cost of staff, cost of energy, and supply chain cost increases are affecting different businesses in different ways, causing a discrepancy in profit margins between sectors.
  • Reduced purchasing power dampens demand: Price rises result in a fall in sales and an erosion of brand loyalty as many customers seek cheaper alternatives or park non-essential purchases.
  • Interest rates affect the cost of borrowing: The raised interest rates also impact businesses, making loans and company credit cards more expensive.
  • Employee wellbeing has taken a hit: A growing number of the workforce is off or out of work with long-time sickness, impacted by the cost of living crisis and the stress it brings. Many businesses are also still working out their approach to remote and hybrid working, with employees having differing preferences.

What strategies can individuals use to cope with inflation and the rising cost of living?

There are some strategies you can use if you’re struggling to cope with the current rate of inflation and the rising costs of living. These include:

  • Making a budget so you can see where your money is going and see which bills should be prioritised
  • See if you’re able to bring in extra cash by checking you’re claiming all the benefits available to you, or having a clear-out and selling old items you no longer use
  • Look at ways to reduce your outgoings and see if it’s possible for you to spend less
  • Find out if you’re eligible for help through any of the government schemes for low-income households

Interested in learning more about economic growth and how inflation affects the country?

The University of York offers a 100% online MSc Finance Leadership and Management, equipping you with the skills to expertly navigate higher inflation and price increases for businesses and economists, making you a sought-after specialist.

You’ll be able to identify and find efficient solutions for higher prices in things like energy bills and higher wages, and will learn key skills in problem solving and decision making for both short and long-term success.

How to manage personal and business finances as an entrepreneur

/in , /by

In the fast-paced world of entrepreneurship, managing personal and business finances effectively is crucial for long-term success. 

As an entrepreneur, you wear many hats, and one of the most important ones is that of a financial manager. Juggling personal expenses alongside business finances requires careful planning, discipline and foresight. 

In this blog, we’ll explore strategies to help entrepreneurs navigate the intricate balance between personal and business finances, ensuring financial health and business success.

Understanding the importance of financial management

Entrepreneurs often dive into the world of their new business with a passion for their product or service but may overlook the intricacies of financial management. However, understanding the importance of managing both personal and business finances is essential for sustainable growth. 

Personal finances impact business decisions, and vice versa, making it imperative to maintain clarity and organisation in both areas.

Establishing clear boundaries between personal and business finances

One of the critical steps in managing money for entrepreneurs is to clearly separate personal and business finances.

Mixing the two can lead to confusion, financial strain and potential legal issues. To avoid this, it’s crucial to open separate bank accounts for personal and business use. This clear distinction of having a personal account and a business bank account simplifies record-keeping, bookkeeping, tax filing, and financial analysis, allowing for better decision-making.

Creating a comprehensive financial plan

Every successful entrepreneur understands the importance of having a financial plan. This plan should encompass personal and business financial goals while outlining objectives, strategies and timelines for achievement.

A strong financial plan serves as a roadmap, guiding entrepreneurs through various stages of their journey from start-up to expansion. It should address cash flow management, savings targets, investment strategies and debt repayment plans.

Building an emergency fund for stability

With fluctuating income and unexpected expenses, entrepreneurship is inherently unpredictable. To safeguard against financial setbacks, entrepreneurs should prioritise building an emergency fund.

This fund serves as a safety net during lean times, providing peace of mind and stability. Aim to set aside three to six months’ worth of living expenses for personal emergencies and a separate fund for business contingencies.

Automating financial processes for efficiency

In the digital age, automation is a powerful tool for streamlining financial management. Entrepreneurs can leverage technology to automate bill payments, savings transfers, and expense tracking, saving time and reducing the risk of errors.

Utilise accounting software to manage business finances efficiently, track income and expenditures, and generate financial reports. Automation frees up valuable time that entrepreneurs can allocate to growing their business while focusing on personal wellbeing.

Seeking professional financial advice

While entrepreneurs and small business owners are often adept at wearing multiple hats, seeking professional financial advice can provide valuable insights and guidance.

A financial advisor can help entrepreneurs develop a comprehensive financial strategy tailored to their unique goals and circumstances. From retirement planning to investment advice, an experienced advisor can offer expertise and perspective, helping entrepreneurs make informed financial decisions and secure their financial future.

Managing business expenses and cash flow

Effective management of business expenses and cash flow is essential for the sustainability of any venture. Entrepreneurs should regularly review and analyse business expenditures, identifying areas for cost optimisation and efficiency improvements.

Implementing strict budgeting practices and monitoring cash flow patterns allows for better forecasting and resource allocation. Additionally, maintaining healthy profit margins ensures the long-term viability of the business.

Building and maintaining good credit

A strong credit score is invaluable for entrepreneurs, facilitating access to financing, favourable interest rates and essential business resources. 

To build and maintain good credit, entrepreneurs should use credit responsibly, make timely payments, and keep debt levels manageable. Establishing a separate business credit profile and utilising a business credit card for expenses can further strengthen creditworthiness and provide additional financial flexibility.

Leveraging business loans responsibly

Business loans can be valuable options for entrepreneurs seeking to finance growth, cover operational expenses or invest in new opportunities. However, it’s essential to approach borrowing with caution and responsibility. 

Lenders typically assess the creditworthiness of business owners before extending loans. A strong personal and business credit history increases your chances of qualifying for favourable loan terms and lower interest rates.

Before pursuing a business loan, entrepreneurs should carefully assess their financial needs, repayment capabilities and risk tolerance.

Nurturing personal wellbeing amidst entrepreneurship

While the pursuit of business success is important, entrepreneurs shouldn’t overlook their personal wellbeing. The demands of entrepreneurship can be taxing physically and mentally, making self-care a priority to avoid burnout.

Set aside time for relaxation, hobbies, and social activities to recharge and maintain a healthy work-life balance. Remember that personal wellbeing is intrinsically linked to business success, as a healthy and motivated entrepreneur is better equipped to face challenges and seize opportunities.

Investing in financial health

Entrepreneurship is a journey filled with challenges, opportunities, and constant learning. Managing personal and business finances effectively is a critical aspect of this journey, requiring discipline, foresight and strategic planning.

By establishing clear boundaries, creating comprehensive financial plans, and leveraging technology, entrepreneurs can navigate the complexities of financial management with confidence. Prioritising personal wellbeing alongside business success ensures a holistic approach to entrepreneurship, fostering long-term prosperity and fulfilment. 

As you embark on your entrepreneurial endeavours, remember that financial health is the cornerstone of business success, and that investing in it will yield dividends for years to come.

Ready to take your entrepreneurial journey to the next level?

The part-time online MBA programme with the University of York will equip you with the knowledge and skills to master personal and business finances while advancing your career or growing your business.

This degree will give you a thorough grounding of all areas of a business, giving you the leadership skills and knowledge you need to push a company forward, whether it’s your own venture or within an existing organisation. From financial resources and risks to leading and managing change, you’ll get an in-depth understanding of what it takes to make sure all areas of a business run smoothly.

Learn from industry experts, network with fellow entrepreneurs and gain the insights needed to achieve lasting success.

How to prevent identity theft and fraud

/in , , /by

Cyber security threats are constantly on the rise, as cyber criminals become increasingly more adept at finding new ways into individuals’ private and personal information. In 2023, more than 353 million people were impacted by data breaches. Reports suggest that among these, fraud accounted for 2.5 million, while identity theft was at 1.1 million.

As the numbers indicate, identity theft and fraud are widespread issues in today’s digital world. With increasing reliance on technology at home and in the workplace, our personal information has become more accessible to hackers and fraudsters.

Whether it’s through phishing scams, data breaches, or social media hacking, vigilance is crucial in protecting your identity. Here’s everything you need to know about preventing identity theft and fraud.

What is identity theft?

Identity theft is when someone steals your personal information to commit fraud. This can include your name, address, date of birth, Social Security Number (if you’re in the US) or National Insurance number (if you’re in the UK), credit card or bank account details, and more.

Once fraudsters have this information, they can open accounts, make purchases, and apply for loans in your name without your consent.

Identity theft prevention methods

Preventing identity theft requires a multifaceted approach. Here are some effective methods to safeguard your identity.

Monitor your credit report

Regularly check your credit rating and report from agencies like Experian, Equifax, and TransUnion to spot any suspicious activity. You may be entitled to a free report annually from each agency, so make sure to take advantage of this service.

Use strong passwords

Use unique, complex passwords for each online account you have. Combine letters, numbers, and symbols to create strong passwords. Consider using a password manager to generate and store passwords securely.

Secure your devices

Keep your computer, smartphone, and other devices protected with updated antivirus software. Be cautious when connecting to public wifi networks, as they may not be secure and hackers may be able to access your information through them.

Stay safe on public Wifi networks

If you do use public wifi networks, avoid accessing sensitive accounts or entering personal information unless you’re using a virtual private network (VPN).

Be wary of phishing scams

Don’t click on links or download attachments from suspicious emails, texts, or social media messages. These could be phishing attempts designed to steal your personal details.

Protect personal documents

Keep important documents like your passport, driving licence, credit card statements, and bank statements in a secure location to avoid ID theft. Shred any documents with personal information and account numbers before discarding them.

Set up account alerts

Many banks, lenders, and credit card companies offer account alerts that notify you of suspicious activity. Enable these alerts to stay informed about any unusual transactions.

Secure your mail

If possible, use a locked mailbox or a Royal Mail Post Office (PO) box to receive mail. Be cautious when sharing personal details through the mail.

Limit personal information online

Be mindful of the information you share on social media and other online platforms. Avoid posting personal details like your full name, address, or date of birth. 

Enable two-factor authentication

Use two-factor authentication (2FA) whenever possible. This adds an extra layer of security by requiring a second form of authentication when you try to log into an online account. These second forms could be a code sent to your mobile phone or a memorable word.

Keep software updated

Regularly update your devices and software to patch any vulnerabilities that could be exploited by identity thieves.

Use secure websites

Look for the padlock symbol and “https://” in the URL of the website you are on to check it is secure before entering sensitive information. Never share information like card numbers over websites that aren’t secure.

Stay up-to-date on data breaches

According to the Information Commissioner’s Office (ICO), if a UK company has a data breach which is likely to result in a high risk of adversely affecting individuals’ rights and freedoms, those individuals must be informed. If this happens to a company you have a personal account with, they will usually email you to inform you of this, so be sure to open and read these emails to see how severely your personal data has been compromised. Always change your password for the affected account when a data breach occurs.

Check privacy settings

Regularly review and update the privacy settings on your social media accounts and other online platforms to control who can see your information.

What to do when you’ve been a victim of identity theft or fraud

If you suspect you’ve been a victim of identity fraud, take immediate action to minimise the damage:

  • Contact your bank or credit card company: Inform them of the fraudulent activity and ask them to freeze or close any affected accounts. They can also help you dispute unauthorised charges.
  • File a report with law enforcement: Report the identity theft to your local police department and obtain a copy of the police report. This documentation may be necessary when disputing fraudulent charges.
  • Contact the major credit bureaus: Alert the major credit score bureaus of the identity theft. Request that they place a fraud alert on your credit file and provide you with a copy of your credit report.
  • UK citizens: Consider a Protective Registration: You can apply for Protective Registration with Cifas, a fraud prevention service. This adds an extra layer of protection to your credit file, and ensures companies carry out additional checks to make sure it’s really you when your details are used to apply for a product or service.
  • US citizens: Report the identity theft to the FTC: File a report with the Federal Trade Commission (FTC) through their website. The FTC provides resources and guidance for identity theft victims.
  • Monitor your credit report: Continue to monitor your credit report for any suspicious activity. You may also consider enrolling in a credit monitoring service.
  • Be vigilant for future scams: Remain vigilant for future scams or identity theft attempts. Be cautious with unsolicited phone calls, emails, or messages requesting personal information.

Identity theft and fraud can have serious consequences, but by taking proactive steps to protect your personal information you can reduce the risk of falling victim to these crimes. Stay informed, stay vigilant, and take action to safeguard your identity.

Learn the skills that keep private information safe

If fraud prevention and outsmarting cyber criminals is something you’re passionate about, prepare yourself for a career in this fast-paced and exciting growth industry by studying an online MSc Computer Science with Cyber Security degree with the University of York.

Taught part-time, you can fit your studies around your current commitments while connecting with global peers and growing your network as part of this well-rounded Masters degree.

Masters degrees: the key to a higher salary and better future earning potential?

/in , , /by

In today’s highly competitive job market, it’s important to invest your time, money and efforts in areas that will best enable you to fulfil your career ambitions. For many grads, the prospect of not seeing a return on their mounting student loans is a real concern.

If a Masters degree is one of the investments you’re considering, it’s worth taking some time to identify how it might act as a stepping stone to your professional development, future job opportunities, personal fulfilment and earning potential.

Does a postgraduate degree lead to a better salary?

While various factors can affect your lifetime earning potential, education – specifically higher education – is one of the key differentiators. As a general rule, the higher your level of learning, the higher you can expect to rise on the pay scale.

Findings from the U.S. Bureau of Labor Statistics (BLS) indicates that the difference in earnings between a Bachelors degree or undergraduate degree and a Masters degree is approximately 15% for those in full time work. Furthermore, those with a Masters can expect to earn upwards of 100% more than individuals without a high school diploma.

What Masters degree leads to the highest paying job?

If future earning potential is a key factor in deciding which subject, discipline or career is right for you, then identifying the average salary for each can provide useful information. You should also take into account the type of Masters you want to pursue. For example, a Master of Science qualification may lead to a higher salary than a Master of Arts.

Here are the top 10 highest paying master’s degrees in the UK – based on the median salary earnings of graduates five years after the end of their programme:

  1. Master of Business Administration (MBA) – average salary £70,400. Careers in the business, management and leadership space are wide-ranging and span all industries.
  2. Economics – average salary £51,100. Graduates often work in stock brokerage, investment banking, asset management, corporate finance and as economists.
  3. Medicine and dentistry – average salary £47,100. Careers extend throughout the healthcare sector, with roles such as physician associates, nurse practitioners, nurse anaesthetists and physician assistants.
  4. Engineering – average salary £44,500. Engineers can work across different sectors such as electrical engineering, manufacturing, aerospace, defence, and many others, either in specialist roles or engineering management.
  5. Computing – average salary £44,500. Careers include computer systems and software engineering, artificial intelligence, information systems, programming and IT project management.
  6. Mathematical sciences – average salary £43,400. You could apply your mathematical knowledge and skills to fields such as financial trading, insurance, statistics and big data.
  7. Pharmacology, toxicology and pharmacy – average salary £43,400. Job sectors include drug design and development, public health and clinical practice.
  8. Business and management – average salary £39,100. These programmes are often popular with college graduates pursuing positions such as marketing manager, entrepreneur, business development manager and project manager.
  9. Politics – average salary £38,700. Graduates may choose to work in local or national government, human resources, journalism, marketing, policy analysis and development, or other related fields.
  10. Architecture, building and planning – average salary £37,600. Many students go on to pursue professional accreditation – for example by the Royal Institute of British Architects (RIBA) or the Royal Institute of Chartered Surveyors (RICS).

Your starting salary will vary according to job role, industry, and professional work experience and background. However, with additional years of experience and responsibility, you can progress to top salaries and increased lifetime earnings.

What is the most common Masters degree?

Selecting a subject area or skill set in high demand is another way to increase your employability and job prospects.

According to FindAMasters analysis of Higher Education Statistics Agency (HESA) data, the top 10 most popular Masters degree programmes and subjects in the UK are:

  1. nursing, healthcare, and other subjects allied to medicine
  2. education and teaching
  3. business and management
  4. social sciences
  5. law
  6. psychology
  7. computer science and information technology
  8. creative arts and design
  9. medicine and dentistry
  10. architecture, building and planning.

In this job market, many of the most popular degrees with grads are also among the highest paying.

What are some other benefits of studying a Masters degree?

There are many reasons you might choose to study a postgraduate degree. As well as helping you meet current job requirements, it can also help boost your employability more generally while broadening your career options, allowing you to switch roles or industries, follow a specific interest or develop a new skill set. Many opt for postgraduate study in a bid to increase annual salary and future earning potential.

Plus, by studying an online Masters, you can gain other benefits.

  • Cost-savings – tuition fees may be slightly lower than in-person programmes, and you’ll save money on costs associated with accommodation and commuting.
  • Option to learn at your own pace – many universities, business schools and training providers enable asynchronous learning via their online platforms, meaning you can study and complete modules and assignments/coursework when it suits you.
  • Flexible start dates – unlike campus-based programmes – which usually have one or two fixed start dates throughout the year – online Masters programmes often offer multiple start dates for enrolling, allowing you to begin your studies at a convenient time. Plus, full-time, part-time and fully flexible options allow you to balance your studies with existing commitments.
  • Accessibility – many people cannot attend in-person learning environments for any number of reasons. Distance learning removes this barrier – and also means you end up in a far richer, more diverse, international cohort
  • Greater choice – learning online means geographical restrictions and limitations don’t apply, giving you more freedom to search for institutions that offer the best fit anywhere in the world.

What online Masters degrees are available at the University of York?

You’ll have the opportunity to choose from a range of popular, in-demand subject disciplines and specialisms.

Business and management 

Computer science 

Master of Public Administration

Master of Business Administration

The University of York is a member of the elite Russell Group, a marker of the quality of our research and teaching – which feeds into your learning. We’re also passionate about delivering the best possible learning environment and programme content, and proud to rank joint 17th overall in the Complete University Guide 2024.

Are you ready to take the next step on your career path by gaining an advanced degree? Browse our available online Masters programmes now and come and join us at the University of York.

How much does an MBA increase your salary?

/in , , /by

In today’s competitive job market, professionals often seek advanced education to gain a competitive edge and boost their earning potential. Among the various academic pathways on offer, pursuing a Master of Business Administration (MBA) is frequently seen as a strategic move towards achieving higher career goals.

Here, we’ll explore the average salary increase for MBA graduates, whether an MBA provides a good return on investment, and industry-specific trends.

The MBA advantage

Business schools, universities, and higher education institutions worldwide offer MBA programmes that cater to a diverse range of students – from those with substantial work experience to recent Bachelors degree graduates.

Employers recognise that MBA students possess a unique and invaluable skill set that combines business acumen, leadership capabilities and strategic thinking. Before enrolling, it’s worth asking how much the advanced degree will translate into a tangible salary increase.

Post MBA-salary and the average salary increase

One of the key metrics used to measure the success of an MBA programme is the average salary increase experienced by its graduates. According to a survey carried out by the Graduate Management Admission Council (GMAC), the organisation responsible for the GMAT (Graduate Management Admission Test), MBA graduates witness a significant bump in their salaries post-graduation. 

In the UK, Glassdoor notes that the average MBA salary is around £47,000, though it can range from a base salary of £35,000 right up to £61,000.

The post-MBA starting salary is a crucial indicator of the programme’s impact on earning potential. This figure often reflects not only the investment in education, but also the enhanced value employers place on MBA holders. 

The exact annual salary increase an individual can expect depends on their pre-MBA work experience and their chosen industry.

The higher education return on investment 

When deciding whether to commit to an MBA, the cost of the programme should be weighed against the potential financial rewards. The return on investment (ROI) is a key factor in this decision-making process. 

ROI in the context of an MBA programme refers to the financial gain achieved through higher salaries and better job opportunities upon completion, compared to the initial investment in tuition and other associated costs that come with further study.

While the cost of MBA programmes vary between institutions, the programme delivery can also impact how much it costs to study. On-campus programmes will likely be more expensive than distance learning programmes due to the costs associated with commuting. Degrees taught part-time may take longer and be more of a long-term time commitment, but the reduced schedule compared to full-time MBA study enables working and earning an income at the same time. 

Industries with the highest earning potential post-MBA

The job market is dynamic, and MBA holders can leverage their versatile skill sets to explore diverse career paths. The demand for professionals with a Masters degree in business administration cuts across industries because corporate recruiters value the academic and transferable skills that MBA grads can bring to the table.

Lucrative job opportunities and higher salaries for individuals with an MBA can be found across a variety of sectors. Some industries where they may be available include:

  • Consulting – consulting salaries keep rising, and these roles are very much in-demand. 
  • Finance – finance managers and investment bankers are two of the possible high-paying roles MBA graduates could aim for within financial services.
  • Technology – one of the fastest growing sectors which shows no sign of slowing down, this is a future-proof industry where those at the forefront of innovation can be financially rewarded.
  • Energy – individuals with an understanding of how politics, money, and the environment interact, and those with specialised knowledge in sustainability, are in high-demand.
  • Consumer packaged goods – this industry has seen consistent growth and resilience against economic hardship, making it a buoyant sector to progress in.

Specialised MBA programmes

In addition to traditional executive MBA programmes, there  are also specialised courses that are tailored to career goals in specific sectors.

There is a wide range of specialist MBA courses and the course content may vary by institution, so if you have a certain career path in mind, it’s important to look for the programme most suited to your needs.

Entrepreneurship and start-up success

The MBA advantage extends beyond climbing the corporate ladder. Many entrepreneurs and start-up founders hold MBA degrees, utilising their business acumen to navigate the complex landscape of launching and managing a successful business.

An MBA degree can give you a full view of what it takes to run a business, covering essentials  such as business strategy, finance, human resources and marketing. This knowledge can help business founders, who often have to wear many hats during the early days of establishing a new company. And, along with the entrepreneurial spirit instilled during an MBA programme, it can be used throughout the life cycle of a startup to improve its chances of success.

Increase your earning potential with an MBA

Pursuing an MBA can lead to a substantial increase in salary for graduates. The post-MBA salary increase, return on investment, and industry trends showcase the tangible benefits of investing in a Masters degree in business administration. 

As the job market continues to evolve, an MBA remains a valuable asset for working professionals and recent graduates. Whether you aspire to progress in your current industry, switch to a new industry or start your own business, the comprehensive skill set acquired through an MBA programme can open doors to high salaries and fulfilling career opportunities.

The University of York offers two online MBAs which will equip you for roles with a higher average starting salary – the Master of Business Administration (MBA) which will prime you for success in the private sector, and the MBA Public Sector Management for those with leadership ambitions at nonprofits. These part-time MBAs allow you to study flexibly, fitting your degree around current commitments. Taught entirely online, you will connect with peers across the world and grow your global network as you study.

Understanding the link between Masters degrees and earning potential in the UK

/in , , /by

In the contemporary job market, a Masters degree is not just a symbol of academic achievement – it’s a strategic tool that can significantly enhance your career prospects. In certain sectors, the distinction between a Bachelors degree and a Masters degree can have a profound impact on career and salary potential.

The value of a Masters degree in the job market

Enrolling in a Masters degree such as  a Master of Science (MSc), Master of Business Administration (MBA), or a specialised degree like a Master of Public Administration (MPA) means delving deeper into subject matter compared to an undergraduate programme. Advanced programmes like Masters or doctoral degrees equip postgraduates with a greater understanding of their field and help develop a number of valuable traits.

Because of this, employers often view candidates who have a Masters degree as more desirable for higher-level positions. This preference stems from the perception that candidates with Masters degrees possess a greater depth of knowledge, advanced research and critical analysis skills, a dedicated commitment to their field, and a mentality that is well-prepared for the complexities and challenges of the working world today.

“Having a relevant Masters degree could give you a crucial competitive edge in a crowded job market – employers are increasingly looking for ways to distinguish between candidates, and this higher-level qualification shows your ability to commit to an intense period of work,” says Prospects.

According to FindAMasters.com, holding a postgraduate qualification means your chance of gaining a professional occupation, over a less senior associate role, is more than 20% higher. It also notes that a Masters degree means someone is 20% more likely to be in a high-skilled job.

All of this is particularly true in rapidly evolving industries such as business or computing and information technology, where an advanced degree signifies that a person is not only well-versed in current best practices, but is also prepared to adapt and innovate as the field advances.

It’s also worth noting that the process of obtaining a Masters degree often involves developing a wide network of colleagues and other professionals. This can be invaluable in the job market, with connections frequently leading to job opportunities.

The impact of a Masters degree on job salary

The value of a Masters degree is also reflected in its impact on earning potential and its links to some of the highest-paying jobs available. Data from various sources indicates that someone with a Masters degree can expect a higher average salary than someone with just an undergraduate degree. What’s more, this difference is not just evident in starting salaries but continues throughout one’s career, with Masters degrees often leading to more senior, higher-paying roles over time.

For example, the Higher Education Policy Institute stated in its Postgraduate Education in the UK report that postgraduates earn 18% more on average than those with only undergraduate qualifications. 

What are the best Masters degrees in terms of earning potential?

From economists and human resource management professionals, to nurse practitioners and those in social work, a Masters degree is a good indicator of greater earning potential. However, certain types of Masters degrees are more likely to be associated with higher salaries and lower unemployment rates.

For example, a Master of Science (MSc) in Computer Science is highly valued in the tech industry, known for its high-paying jobs. Emerging fields like artificial intelligence are actively recruiting, while in information systems and cybersecurity, demand outstrips supply, leading to a higher median salary. Grads with these degrees often secure high-earning roles as software engineers or project managers.

Arguably the most lucrative postgraduate degree is the Master of Business Administration (MBA), renowned for its potential to significantly boost earning potential. MBA graduates often move into high-level management roles, with salaries reflecting their leadership positions and breadth of responsibilities.

Other in-demand Masters degrees associated with an enviable annual salary and payscale are in fields such as engineering management, economics and healthcare.

It’s important to note, however, that while all of these Masters degrees typically offer higher earning potential, this can also depend on other factors like the institution’s prestige and rankings, research specialities, location and experience level.

The added benefits of studying a Masters degree online

A Masters degree requires considerable investment in time and in resources, including student loans, but can pay dividends with respect to your career path, earning potential and job prospects, so it’s an increasingly popular option. Online Masters degree programmes offer several additional benefits::

  • Flexibility and accessibility. Online Masters programmes allow you to balance your studies with other commitments like full-time or part-time work, enabling you to earn an advanced education while still gaining a salary and real-world experience.
  • Relevance in the digital age. Studying online prepares students for the increasingly digital work environment.
  • Expanded networking opportunities. Online programmes typically have diverse student bodies, offering broader networking opportunities across different industries and geographies.
  • Cost-effectiveness. Online degrees can be more affordable, with pay-per-module fees and the elimination of associated costs like student housing or commuting.

Enhance your career prospects with an online Masters degree

Earn a Masters degree from a Russell Group university – without putting your life on hold – with a 100% online Masters degree from the University of York. Our online programmes give you the flexibility to fit your studies around your professional and personal commitments and have been designed for working professionals and ambitious career-changers.

Our programmes span degrees in management, business administration, public administration and computer science. There are six starts per year as well as a pay-per-module structure, so you can begin whenever you’re ready. You’ll be able to access course content and study anytime, anywhere, and on a variety of mobile devices.