The University of Helsinki is preparing for changes resulting from the new Government Programme. As an immediate step, all recruitment for administrative and IT staff is halted. Other measures can be expected in the autumn.

Based on current information, the required amount of cuts in 2016 is approximately €26 million. The amount will increase over the years, reaching approximately €70–100 million by 2020. This is a rough estimate, which may change significantly once the details and schedules of the Government Programme are finalised. The largest individual factor is the compensation granted to the University Pharmacy, representing an annual sum of approximately €29 million.

Rector Jukka Kola is particularly alarmed by the fact that Finland's top university will face more cuts than other universities if the pharmacy compensation is revoked.

“The pharmacy compensation is a statutory benefit for our University, and it is used to develop research and teaching and to make new innovations. We hope our Government will not carry out this measure. We will have to cut costs in any case, but it will be significantly easier if we retain the pharmacy compensation.”

Careful planning

The chair of the Board of the University of Helsinki, Jaana Husu-Kallio, points out that all public administration is facing the same major challenge, and universities must also pitch in. Husu-Kallio also considers the cuts targeting the University of Helsinki to be particularly harsh.

“It is now important to plan the measures necessitated by these cuts very carefully. The time for these decisions will probably be during the next meeting of the Board on 16 September,” Husu-Kallio states.

The changes will particularly require careful human resources planning as well as good, transparent communication.

Reports from different areas

The rector has requested several reports. Preparations for the adaptation measures will be underway during the summer in many areas of the University, including the cost-cutting group and the fundraising group. The cost-cutting group is preparing the measures needed to balance the University’s finances, and the fundraising group to acquire additional funding and donations.

All releases and the material from central projects relating to the steps required by the new Government Programme will be collected in one place on Flamma: Directory and services – About the University – Strategic documents and decisions – Measures required by the Government Programme.  The page will be published in June.

Recruitment of administrative staff halted

As part of the preparations, the rector has decided that no new permanent or fixed-term administrative or IT personnel will be recruited for the time being, and that all ongoing recruitment processes for such staff are to be halted immediately. At the same time, authority for making decisions to recruit such staff has been transferred to the director of administration. This means that in future, new administrative and IT staff can only be recruited under exceptional circumstances by a decision from the director of administration.

The criteria for receiving recruitment permission for library and facility staff will become more stringent. As the University wants to safeguard research, recruitment permission for externally funded non-administrative research support staff may be granted for a justified reason.

“The situation means that all of the University's superiors and employees must have patience and be prepared to make arrangements across different units,” urges Rector Kola.

Projects to continue

During the summer, the University will continue its project to reorganise its administration as well as other projects for structural development. The preparatory work will consider the Government Programme and its cost-cutting requirements in addition to the University’s strategy.

The University will continue to streamline the use of its facilities. A programme to accelerate this streamlining will be planned during the summer. The University will also investigate the possibility of selling or renting out facilities.

The work for planning the 2016 budget will soon begin, and instructions for planning operations and finances will be released before Midsummer.

Cuts and new innovations

The Government Programme features several areas which the Government intends to support in the future. These spearhead projects will be decided during the summer, and they may offer the University opportunities for new innovations.

Preparations have already begun for the other measures required by the Government Programme, such as tuition fees for non-EU/EEA students and the digital learning environment project.

Suggestions welcome

All members of the University community are welcome to submit their suggestions to generate savings or acquire additional funding. Suggestions may be sent to Jussi Karvinen, Director of Planning (jussi.karvinen@helsinki.fi), who will forward them to the appropriate recipients.

Further information:

Chief Financial Officer Marjo Berglund (member of the cost-cutting group), marjo.berglund@helsinki.fi

Director of Planning Jussi Karvinen (member of the cost-cutting group), jussi.karvinen@helsinki.fi

Director of Human Resources Kira Ukkonen, kira.ukkonen@helsinki.fi