Student retention is an ongoing challenge for higher education institutions across the U.S. Various factors contribute to student attrition, such as rising costs, increased competition, shifting student demographics, and evolving in-demand career paths. Because of this, colleges and universities increasingly need to prioritize not only attracting new students, but also keeping them enrolled and on the path to graduation and successful careers.
According to data from the National Center for Education Statistics, since 2007, the average full-time student retention rate at postsecondary institutions has been between 71 and 76%. This means about one in four students don’t return to the same institution any given year.
In addition to lost tuition revenue, low student retention can have a negative impact on a higher education institution’s reputation and likelihood of attracting future applicants and students. Learn about essential student retention strategies to improve graduation rates at your institution and become a college or university of choice for prospective students.
Start Focusing on Retention Before Students Set Foot on Campus
When students are first accepted to and choose a college or university for their higher education, their engagement and excitement is likely at its peak. However, despite this excitement, according to research from YouScience, 75% of recent high school graduates reported only feeling moderately, slightly, or not at all prepared for college.
Higher education institutions need to ensure initial momentum continues by identifying ways to engage students and show they’re supported before they arrive on campus.
Some steps your institution can take to support this include:
Encouraging prospective or accepted students to visit and shadow current students to gain a firsthand glimpse into the college or university
Sending personalized welcome packages with information about the institution, campus life, and upcoming events
Scheduling orientation programs before the academic year begins
Offering online communities or forums where incoming students can get to know with one another, ask questions, and share their excitement
Highlighting success stories about alumni who have had successful careers since graduation
Sharing information about career center resources, including tips to explore different majors or select a major freshman year
Design Academic Programs That Set Students up for Career Success
A common driver of student attrition is that students often face uncertainties with selecting the right major or program that aligns with both their skills and passions, as well as strong career prospects. A survey from Inside Higher Ed about the most important outcomes from students’ college experience found two of the top outcomes were growing my knowledge in a subject area I’m passionate about (49%) and developing specific skills needed for my career (43%).
Among students who do graduate, we’ve found that half of recent college graduates are working jobs that don’t use their degrees — with many of them being underemployed.
One of the most important retention strategies for college students is designing academic programs that align with the latest job market trends and in-demand skills. Higher education institutions should leverage the latest labor market data related to in-demand skills to more effectively design curricula, launch new degrees and courses. In doing so, colleges and universities can also more effectively support students with selecting majors or courses that equip them for growing industries and occupations.
Guide Students Toward In-Demand Careers
In addition to designing relevant academic programs, higher education institutions can improve student retention by helping students have a clear vision of in-demand careers to pursue after graduation.
A survey of class of 2025 college students conducted by Handshake found that 57% of Class of respondents feel pessimistic about starting their careers, a significant increase from 49% for the class of 2024 students. Additionally, a survey from Inside Higher Ed found that only 45% of respondents believed their institution’s overall effort to support students in career exploration and development is good or excellent.
College and university career centers can use labor market data to show students how the skills they’re learning during their courses and programs match with their future careers. The right labor market data can provide a comprehensive view of growing industries, in-demand skills, and potential salaries.
By leveraging the latest labor market data, higher education institutions can guide students toward careers that are more likely to grow in the coming years. With access to this information, students will be more motivated to complete their education and set themselves up for long-term career success.
Track Alumni Career Pathways to Improve Outcomes Over Time
Another effective tool to inform student retention strategy is tracking and analyzing alumni career pathways and outcomes. Alumni career success can be tracked based on college, department, major, and other factors to better understand which academic programs drive the most successful career outcomes. This data can then help higher education institutions identify ways to redesign academic offerings or career center resources to improve career outcomes for graduates, and give current students a reason to stay and complete.
By tracking alumni career pathways, higher education institutions can also highlight alumni success stories, which can help increase applications and future enrollment.
For example, the Lightcast Alumni Pathways platform enables higher education institutions to review how alumni are using their careers in the real world and review individual academic programs to validate successful programs, discover new opportunities, and identify programs that may be underperforming from a career success standpoint.
Case Study: How Weston College Sets Students up for Career Success
Weston College is one of the largest higher education institutions in the United Kingdom. The college has a motto, “Creating Brighter Futures,” but faced challenges with guiding students toward the right career paths, as many students registered for a variety of different courses without a clear vision of what to focus on in their education. Weston College wanted to provide students with specific career guidance to make more informed choices with their coursework.
The college took a multi-step approach to engage students, help them better understand career pathways, and ensure they learn relevant skills to succeed in their desired careers. One of these steps was launching a career assessment, a data-driven tool for students to learn about potential career paths and courses based on their interests, as well as find more details about the demand for each role and industry.
To support this, Weston College leverages Lightcast’s Career Coach, which taps into Lightcast’s comprehensive labor market data and proprietary skills library of over 32,000 career-relevant skills to help students discover career and education pathways. Students can use Weston College’s dedicated Career Coach page to better understand the goal of their academic programs and which skills they possess that will help them identify successful career paths.
The results: By leveraging Career Coach, 86% of students felt like the college did a good job helping them navigate career options, and 85.7% felt very confident/confident about their next steps.
Partner with Lightcast for Your Student Retention Strategies
Improving student retention is not only beneficial to your institution’s success and reputation, but also to students’ long-time career prospects.
At Lightcast, we work with more than 1,000 colleges, universities, and education technology companies that serve students and learners from a wide range of backgrounds. Our comprehensive labor market data and innovative approach bridges the gap between academia and the real world, ensuring that students' academic pursuits are aligned with realistic, promising career opportunities — which can help drive student retention as a result.
Learn more about our solutions for education institutions or get in touch to discuss specific solutions for your institution with a member of our team.
