Working group:
Quality of employment to be introduced as one of the funding criteria for higher education institutions

A new funding criterion measuring the quality of employment is proposed to be included in the funding models for universities and universities of applied sciences (UAS). The new criterion would replace the current criterion measuring employment. High-quality employment is this connection means that higher education graduates are employed in jobs that correspond to their educational level. The working group that has prepared the matter submitted its report to the Minister of Education and Culture Sanni Grahn-Laasonen on Thursday 2 March.

The working group proposes that the funding criteria concerning employment in the funding models for universities and universities of applied sciences be replaced by new criteria measuring the quality of employment. The aim with the introduction of the quality of employment criterion is to increase the relevance of education for the working life and thus promote the employment of higher education graduates.

“Educational institutions must produce competence that is needed in the labour market and that can lead to employment. In other words, the education they provide must be of high quality. It would be old-fashioned to talk about ‘jobs in one’s own field’, because the working life changes so rapidly that broad-based competence can lead to a wide variety of different jobs. Therefore, it is important that the indicators do not evaluate the educational level field-specifically but more extensively,” says Minister of Education and Culture Sanni Grahn-Laasonen.

“The inclusion of the quality dimension of employment in the funding models provides an incentive for the universities and universities of applied sciences to take account of the needs of the future working life in their provision of education and to promote the employment of their graduates. We must remember that self-employment is also a form of employment,” Minister Grahn-Laasonen continues.

The report proposes that those awarded with a UAS Master’s degree should also be taken into account when calculating the employment among UAS graduates. Furthermore, the employment among those awarded with a doctoral degree is proposed to be included in the funding model for universities with a one-percent share of the total funding. This share would be transferred from the current funding criterion concerning those awarded with a doctoral degree.

The working group proposes that information obtained through career monitoring surveys be utilised in the calculation of the funding to be granted to higher education institutions. Based on the career monitoring surveys conducted among higher education graduates, the working group has selected indicators to measure the quality of employment. The indicators will be used to assess the satisfaction among graduates with the education they have received, the graduates’ views on their possibilities to utilise the competence acquired in a higher education institution in the working life, and the graduates’ opinion on the degree of difficulty of their jobs in relation to the education received. The working group has also proposed improvements to the career monitoring surveys.

In the report, the working group focused on examining the central government financing granted to higher education institutions. The higher education institutions are encouraged to acquire feedback on the employment impacts of the education provided by them, to improve their operations, and to place greater emphasis on the quality of employment among their students. 

The report includes joint statement by Akava - Confederation of Unions for Professional and Managerial Staff in Finland and by the National Union of University Students in Finland.

The intention is to introduce the new quality-related criterion in the funding models for higher education institutions in 2019.

“The report of the working group functions as a basis for further preparation. Based on the feedback to be received on the report, we must assess whether the different criteria are weighted appropriately and whether the data collection methods are well-functioning and reliable,” says Minister Grahn-Laasonen.

Proposal for the inclusion of the quality of employment in the funding models of universities and universities of applied sciences from 2019 (description sheet available in English)

Inquiries: 
- Tapio Kosunen, Director-General, Ministry of Education and Culture, tel. +358 2953 30440
- Tomi Halonen, Counsellor of Education, Ministry of Education and Culture, tel. +358 2953 30095
- Heikki Kuutti Uusitalo, Special Adviser, Ministry of Education and Culture, tel. +358 50 302 8246