Implement Gainsharing Agreements in Your Academic and Administrative Units

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Implement Gainsharing Agreements in Your Academic and Administrative Units

Higher education business leaders can use gainsharing agreements to incentivize more prudent spend and grow central strategic reserves. Under these agreements, units split any budget surpluses with central administration. This mitigates perverse incentives for units to either amass unnecessarily large reserves or squander every remaining budget dollar at year-end.

Higher education business leaders can use gainsharing agreements to incentivize more prudent spend and grow central strategic reserves. Under these agreements, units split any budget surpluses with central administration. This mitigates perverse incentives for units to either amass unnecessarily large reserves or squander every remaining budget dollar at year-end.

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