The Headcount Solution : How to Cut Compensation Costs and Keep Your Best People
| Line | Alternative | Definition | No. Employees | Total | Cost Reduction | Cost to Implement | Net Cost Reduction |
|---|---|---|---|---|---|---|---|
| 1 | Job/skill sharing | Reduce % salaries | No. | Total salaries | (% X Total) | Negligible | (Cost reduction – Cost to implement) |
| 2 | Contracting | Reduce 100% of total annual compensation cost | No. | Total compensation | (100%) | Total of contracting fees | (Cost reduction – Cost to implement) |
| 3 | Offsite Net workers | Reduce to % salaries | No. | Total salaries | (% X Total) | Start-up costs | (Cost reduction – Cost to implement) |
| 4 | Special projects | Reduce % salaries | No. | Total salaries | (% X Total) | Negligible | (Cost reduction – Cost to implement) |
| 5 | Overall Net Cost Reduction | (Sum Lines 1–4) |
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