The Headcount Solution : How to Cut Compensation Costs and Keep Your Best People

Alternative work arrangements are a powerful cost-cutting and human capital preservation tool.

Each type of work arrangement (job/skill sharing, contracting, furloughs, and special assignments) helps retain good people. An organization should explore all options to decide which ones work best.

Even though the benefits greatly outweigh the costs in theory, making alternative work arrangements successful requires changes in the way a company selects and manages its people, including how its supervisors manage employees in their departments.

Before proceeding too far in considering alternative work arrangements, an organization should conduct a pro forma analysis to project the balance of benefits versus costs.