Labor Cost Containment

Labor Cost Containment

Labor comprises 60-70% of most institutions’ operating budgets, so it’s a likely target for cost containment initiatives. It’s no surprise, then, that leaders are pursuing tactics that immediately yield labor savings in response to COVID-19. That said, to sustain long-term labor savings, leaders must slow labor cost growth over time—or “bend the labor cost curve.” Our resources help leaders strategically plan for labor savings across both the short- and long-term.

Near-term rebasing tactics

COVID-19 Administrative Cost Containment Playbook

Identify over 60 tactics —evaluated by savings potential, time to achieve savings, and need for union negotiation—to immediately contain admin labor costs

Create a COVID-19 Financial Contingency Plan

Use our five-step roadmap to create a tiered financial contingency plan that proactively identifies and sequences savings opportunities based on different financial scenarios

Longer-term cost containment tactics

Understand three vital steps to slow labor cost growth

Understand the current state of higher education labor spending and learn how to implement the necessary cross-silo tools and incentives to achieve meaningful savings

Creating cost-effective labor alternatives to support local leaders

Pursue cost-effective alternatives to full-time hires, including central, cross-silo staffing that unit leaders can tap into when needed

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Leverage position control to prioritize resources

Leverage position control to assess positions as they become vacant, reclaim staffing dollars when appropriate, and redeploy staffing lines to other units with greater needs

Incentivize local leaders to find sustainable labor savings

Incentivize unit leaders, who best understand existing processes and inefficiencies, to find sustainable labor savings within their individual units

Four Proven Methods to Engage and Retain Frontline Service Staff

Review four proven methods to boost frontline service staff engagement to increase productivity and minimize turnover costs

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