Cost containment strategies for independent schools

EAB hosted the ISEF Expert Panel on Cost Containment Strategies to discuss managing costs at independent schools. The session provided an opportunity for heads of school, CFOs, and other members of school leadership teams to receive creative, yet practical advice on reducing operating costs. Read about the major takeaways below.

Download the resources from the cost containment event.

Get the Slides  or View Recording

Review the Key Takeaways

1. Instead of more dramatic cuts, focus on bending the administrative cost curve

Labor is the single biggest expense for independent schools and institutions of higher education. But you can’t cut your way to savings; in fact, 67% of higher ed institutions who cut labor see labor cost growth jump up the next year. Instead, we recommend focusing on making more strategic, sustainable cuts, carefully reviewing and redesigning roles to perform more complex tasks at higher service levels, and upskilling staff to better meet institutions’ needs.

2. Get the most out of outsourcing by conducting a full value-for-money analysis and fully considering the viability of outsourcing a function

While outsourcing facilities services may seem like a great option for some institutions to cut costs, there are two key considerations schools must first consider. The first is to complete a full value-for-money analysis, which involves evaluating actual costs and potential costs. The second consideration is the viability of outsourcing a function based on the skill-level of the service.

Want more considerations? Explore our guide on outsourcing facilities services to improve outsourcing decision analysis, avoid unanticipated mistakes, and implement oversight processes to manage vendor relationships.

3. Get a handle on IT vendor contracts by simplifying the process for customers to check existing products and monitoring their use on campus

Schools invest in an array of technology on campus, and while they spend countless hours determining which product to purchase, about two-thirds of software licenses go unused at K-12 institutions. We profile two practices to help schools first educate their faculty and staff on the products available on campus, and then closely track usage to know which tech is actually being utilized on campus. The goal is to ensure schools only invest in products and licenses they truly need.