BHEF Report Highlights How Business-Higher Education Partnerships Foster Innovation, Diversity, and Workforce Readiness

The Business-Higher Education Forum (BHEF), with support from the Strada Education Foundation and Ellucian, has published its inaugural State of Skills and Partnership Research Study, Forging Partnerships to Align Education and Industry for the Workforce of Tomorrow. The report emphasizes the critical role of collaborations between businesses and higher education institutions in driving innovation, advancing inclusive growth, and equipping workers with the skills needed for a rapidly evolving economy.

Drawing on insights from nearly 400 business leaders and more than 200 higher education leaders nationwide, the report underscores the need to align educational programs with industry demands to prepare a workforce ready to tackle high-growth, innovation-driven roles.

Key findings include:

• Skills in Demand: Durable skills such as critical thinking, teamwork, and problem-solving remain in short supply, with 62% of employers struggling to find entry-level talent proficient in these areas. Technical skills in IT and data science also pose significant challenges for employers.
• AI Integration: AI is a key area for job transformation and growth. Yet, only 22% of higher education leaders surveyed reported that they felt equipped to use and implement AI in their role and daily work, versus 82% of those in business roles. 
• Work-based Learning: While internships are highly valued, business leaders are increasingly also prioritizing lower-intensity work-based learning opportunities such as job shadowing and microinternships.
• Barriers to Partnerships: While almost 90% of higher education leaders say partnerships are a priority, financial and personnel constraints continue to hinder partnership activities with only 22% reporting a fully executed partnership strategy.
• A Focus on Skills: 83% of business leaders report that better assessing and signaling workers’ skills proficiency and gaps is a priority for their companies with 66% of education leaders saying the same. However, less than half of higher education leaders report that the existing organizational practices and technologies enable them to do so. 
• Technology as an Enabler: While businesses are currently using technology to support skills acquisition, assessment, and validation at higher rates, higher education and business leaders report high levels of interest in using technology.

Kristen Fox, CEO of the Business-Higher Education Forum, highlighted the critical importance of partnerships between the business and education sectors in ensuring economic mobility and participation for all Americans. "At the Business-Higher Education Forum, we see the every day the power of strong collaborations between business and higher education to fuel innovation and inclusive economic growth. By better aligning education and employment needs, we can co-create the learning models that prepare all learners for the jobs of tomorrow."

The report also provides actionable recommendations for education and business leaders seeking to establish stronger partnerships, including fostering trust through transparency, streamlining partnership functions, leveraging advanced technologies, and using intermediary organizations to strengthen partnerships.

Laura Ipsen, CEO of Ellucian and chair of BHEF’s board, emphasized the importance of collaboration to building a future-ready workforce, saying, “As a technology executive, I’ve witnessed firsthand how technological disruption reshapes the workforce. It has never been more imperative for education and employers to join forces to build a future-ready workforce equipped to adapt, innovate, and lead."

BHEF’s report serves as a roadmap for businesses and educational institutions to align efforts, deepen partnerships, and ensure the workforce of the future is ready to meet emerging challenges.

The full report, Forging Partnerships to Align Education and Industry for the Workforce of Tomorrow, is available at www.bhef.com/forging-partnerships.