Study Abroad Programmes from an Economic Perspective

What businesses expect

A recent survey conducted by the German Economic Institute on behalf of DAAD asked companies which topics and trends they believe will have a significant impact on them over the next 5 years. Demographic change/skills shortages were mentioned most frequently (69.6% of respondents), followed by digitalisation (61.9%) and climate and environmental protection, energy supply and the security of raw materials and resources (around 40%). Approximately 15% cited globalisation and exports. 

These issues are particularly important for companies that are heavily involved in global markets, and where international business relationships are especially significant. For these companies, international activities are a routine part of employees’ roles. They regularly interact with foreign contacts, use foreign languages in their everyday work and collaborate in international teams.

Adaptability in employees

In times of transformation, companies are particularly drawn to employees who can proactively adapt to change, as underscored by a survey conducted by IW for DAAD back in 2019. While employers may not explicitly require applicants to spend a semester or internship abroad, they highly value the skills gained from extended periods abroad. This is true not only for entry-level positions but also for career advancement within a company. 

Alongside technical and methodological expertise, employers expect recent graduates entering the workforce to have strong social and communication skills. According to the study, HR managers seek communicative, independent problem-solvers, who demonstrate openness to new experiences, flexibility and perseverance.

Even if a study abroad experience may not be an essential prerequisite for a career, it can open up additional career options, because the skills students gain during their time abroad are increasingly valued in a work environment defined by constant change and unpredictability.

Sought-after skills

These findings are corroborated by the aforementioned survey. For recent graduates, practical work experience is considered a key criterion for entry-level roles. Companies place less emphasis on factors such as degree grades, the length of time spent studying and study abroad experiences. Comparing the importance of the length of time spent studying versus international experience, they tend to value the latter more highly. 

From the perspective of companies, one key finding emerges regarding the desired competencies of applicants: conscientiousness, efficiency, proactive behaviour, independence and openness to new ideas are frequently cited as crucial skills for university graduates entering the workforce. For leadership positions, ability to adapt to diverse personalities and handle ambiguous situations is considered particularly important.

The importance of international experience

The recent study «Campus International 2022», carried out by DAAD in cooperation with the FernUniversität in Hagen, shows that studying abroad strengthens important skills. For instance, students who have studied abroad report that they are better equipped to carry out and efficiently manage required tasks, engage constructively with people from different cultural backgrounds and take responsibility for achieving their own career goals. 

In concrete terms, this means that in the context of transformation challenges, companies attach particular importance to the kind of skills and qualifications students develop abroad when recruiting university graduates and leaders. It is not the university experience itself that companies value most, but rather the competencies gained during that time. 

The role of Erasmus+

The Erasmus+ programme supports the acquisition of these crucial skills for the transformation process by promoting international mobilities. Erasmus+ is the EU’s largest education and mobility programme. Between 2014 and 2020, the number of (approved) funded students increased from approximately 31,600 to around 54,500, while the number of funded internships abroad rose from 8,100 to 8,200. Staff mobilities for university employees with Programme countries also saw an increase. Participants consistently report very high levels of satisfaction with the programme.

Beyond enhancing students’ skills and labour market prospects, Erasmus+ is also crucial for strengthening connections in the EU education landscape and international exchanges. The recent survey asks companies to evaluate the importance of various aspects of internationalisation. Possible responses were the recruitment and employment of international specialists, access to global networks, the global openness of the company’s location and a pro-European stance in society. 

Companies rated a pro-European stance as the most important factor, with larger, innovative and digitally advanced companies especially valuing this attitude. Various studies have demonstrated that studying abroad positively impacts perceptions of the EU, fosters social engagement and a European identity, and enhances alignment with European values. As a result, the Erasmus programme and international mobility are pivotal in reinforcing pro-European attitudes and promoting global openness.

The role of universities in the transformation process

In conclusion, it can be said that universities are crucial to the success of transformation processes in Germany. They drive innovation in the economy through knowledge transfer, research collaborations and support for start-ups. They also play a vital role in securing a skilled workforce by educating students and providing options for continuing development. Additionally, universities are instrumental in advancing internationalisation. 

A significant boost comes from training international students who remain in Germany after studying at a German university, contributing to the growth of a skilled workforce. Equally important, however, is promoting international student exchanges to strengthen essential skills and foster a pro-European attitude.

Calling for international exchange

Since financial constraints are a major obstacle to studying abroad, funding programmes like Erasmus+ are of central importance and should be further supported. To achieve this, universities should expand their support networks and intensify strategic public relations efforts by collaborating across organisational units (International Office, Orientation Office, alumni groups) to encourage wider student participation in international exchange programmes.