Cost Containment Playbook: 130+ Tactics for Immediate Cost Savings in Higher Ed
Use this compendium as a picklist to evaluate and choose the cost containment tactic best suited for your institution.
Given intensifying financial pressures, higher education leaders are considering strategies for cost management. This resource provides 131 tactics to consider implementing as your institution looks to decrease costs.
Each tactic is evaluated on three factors: savings potential, time to achieve savings, and employee tolerance. Each description also includes a case study and implementation guidance, such as suggested timelines and mistakes to avoid. Additionally, we have compiled a list of the practices unlikely to require union negotiation.
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Identify your level of financial performance
Use the Five Levels of Financial Performance to Guide Proactive Planning infographic to identify your institution’s level of financial performance and establish a starting point for cost management strategies.
Explore the compendium of cost containment tactics
Academic Costs
Sample tactics:
- Reduce non-degree applicable courses
- Consolidate underfilled course sections
- Limit offerings of nonessential small courses
Benefits Vendor Management
Sample tactics:
- Renegotiate vendor premiums
- Assess pharmacy benefit managers
- Assess TPA/network discounts
Compensation
Sample tactics:
- Eliminate manager incentive pay
- End merit raises for underperformers
- Require online W2 distribution/retrieval
Employee Stipends and Perks
Sample tactics:
- Freeze travel for faculty and staff
- Cap employee travel expenses
- Limit professional development spending
Fringe Benefits
Sample tactics:
- Reduce/end paid time off (PTO) rollover
- End PTO payout
- Reduce PTO payout maximum
Health Benefits
Outsourcing
Sample tactics:
- Outsource institutional units or departments
- Outsource staff processes or functions
Personnel Decisions and Staffing
Sample tactics:
- Freeze hiring
- Incentivize early retirement
- Offer voluntary severance
Physical Plant and Real Estate
Sample tactics:
- Reduce office space through flexible work arrangements
- Reduce private offices
- Exit leases
Purchasing and Procurement
Sample tactics:
- Eliminate/minimize purchase of discretionary goods and services
- Use preferred vendors for goods and services that cannot be eliminated
- Centrally approve all purchase orders above a certain threshold
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