The Headcount Solution : How to Cut Compensation Costs and Keep Your Best People
This section contains skeleton worksheets for you to use in making cost/benefit estimates for each round of cost cutting described in this chapter.
Round 1: Across-The-Board Cost Cuts
| Line | Item | Savings |
|---|---|---|
| 1 | Number of employees taking voluntary severance | [No. X Annual total compensation cost per employee]* |
| 2 | Number of employees taking early retirement | (No. X Annual total compensation cost per employee)* |
| 3 | Cut overtime | (% X Total annual salary cost) |
| 4 | Mandatory pay cut | (% X Total annual salary cost) |
| 5 | Perquisite reduction | (% X Total annual perquisite cost) |
| 6 | Reduced 401k contribution | (% X Total annual salary cost) |
| 7 | Reduced annual pay increases | (% X Total annual salary cost) |
| 8 | Reduced annual bonuses | (% X Total annual salary cost) |
| 9 | Hiring freeze | [No. X Annual total compensation cost per employee per year] |
| 10 | Grand total annual savings | (Sum Lines 1–9) |
*First year savings impacted by severance costs.
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