Education is often regarded as a crucial investment that generates significant value for the broader community. However, it's important to recognize that education comes with costs. On average, OECD countries spend 6.2% of their GDP on education. Moreover, there is an increasing emphasis on transparency and efficiency in evaluating public policies, which has led to a cost-benefit evaluation approach being applied to various sectors, including those traditionally viewed as essential components of the budget like education.
For the first time this year, we have begun measuring our impact on the community with one key question in mind: what is the return on investment on education?
Table of contents
In order to build an initial version of our impact formula comparing costs and benefits for the community, we chose to focus on two student populations in France, both funded through tax mechanisms:
→ Unemployed students
people who started their training while unemployed. Their training was financed by unemployment agencies (such as France Travail in France) and regions, with funding derived from national and regional budgets.
→ Apprenticeship students
individuals who choose to simultaneously learn and work. Their training was financed through apprenticeship mechanisms, such as the taxe d’apprentissage in France, which is paid by companies.
We recognize that the results of our formula are inherently flawed due to the absence of a control group for comparison. Additionally, we acknowledge that we only capture a portion of the information required for a comprehensive cost analysis. However, we believe that constructing and testing this formula with various populations and locations will have a positive impact on helping us improve the service we provide to our students and partners.
Unemployed students
Over the past 3 years
9,120
of our previously
unemployed graduates
3,648
found a job within 6 months
(40% job placement rate estimate)
€103.5 million
total gross salary
€27,617
average salary
€6.8 million
additional taxes collected by the State*
€55.6 million
costs avoided by the State**
* Assuming a yearly tax collection of 1862€ / person
** An unemployed person costs 15180€/year in France according to France Travail (source)
In France, funding for training programs comes from a national effort called Plan Investissement Compétences (PIC). That program has been designed with a set of priority targets, particularly focusing on individuals from underserved backgrounds. The population trained by OpenClassrooms fully aligns with the priorities of the PIC, which include people with low or no education, individuals living in underserved areas, and those with disabilities.
Our analysis
Upon initial examination, we observe a positive impact for the community: students who were previously unemployed have generated over 100 million euros in additional gross income over the past 3 years, with an estimated cost avoidance by the State of 55 million euros.
We acknowledge that this initial analysis requires refinement, and we will meticulously review and compare it with other methodologies in the coming months. In particular, there are a few aspects that may be underestimated or overestimated:
→ Might be underestimated
The revenue and impact on students over several years. We only considered the salary in the first year, while it is reasonable to assume that many students will have careers spanning several years. Additionally, we only accounted for students who found a job related to their training within 6 months. Those who found employment later are not reflected in these results.
→ Might be overestimated
Some of these students would have found a job regardless, albeit potentially less skilled and lower paid. In the future, we should aim to deduce the salaries of these alternative jobs to accurately calculate our additional value.
We believe that the impact will be significant when viewed over a 5 to 10-year period. However, gathering this data may prove challenging, as the rate of survey responses tends to decline sharply over time. We will aim to address these limitations and refine our analysis accordingly.
Salaries insights Top 5 yearly gross salaries per job
| 1 — AI Engineer | €46,153 |
|---|---|
| 2 — Machine Learning Engineer | €40,695 |
| 3 — Product Manager | €39,753 |
| 4 — Frontend Developer | €38,607 |
| 5 — Data Analyst | €38,297 |
Testimony
The main challenges were the technical hurdles at the beginning of the training because it implied a new way of thinking. OpenClassrooms' system with a mentor as support was helpful. And then, another challenge is simply daring to take the plunge. We know what we're losing but not what we're gaining, but by seeing other inspiring stories, we should think to ourselves, "Why not me?"
To transition, it's important to surround oneself with supportive people; the mentor and other students help, and to do some mental work. Saying to oneself, "I can do this, and no matter what happens, I will see it through to the end.”
Mehdi, 29,
Apprenticeship students
Over the past 3 years
1,927
graduates
1,561
Found a job within 6 months
(81% job placement rate)
€49 million
total gross salary (all graduates who found a job)
31,223
average gross salary
€12,000
Average training cost / apprentice
Our analysis
81% of our apprentices graduates found a job within 6 months, which marks the highest rate among all our students, and represents an impressive rate in general.
This statistic demonstrates that apprenticeships are the most effective pathway to securing employment quickly and with a higher salary after graduation. Notably, half of the apprentices continue working at the same company after graduation.
WAGE DATA
| +7% higher average gross salary |
|---|
| After graduation: €31,149 for apprentices – €29,184 for non apprentices |
| The first full time job salary after graduation is higher when the student has gone through apprenticeship. |