Two paths to sustainable labor savings

Topics: Administration and Finance, Budgeting, Cost Savings

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John Workman

John Workman, Practice Manager

Feb. 12, 2015

Facing increasingly tighter budgets, colleges and universities are exploring any and all principled methods to control costs. Clearly, labor comprises the vast majority of costs at all institutions, often 60% to 70% of operating budgets. So, while there are other meaningful cost savings opportunities, few institutions will be able to significantly impact costs without addressing labor.

To date, most institutions have sought to reduce administrative labor costs before touching the academic core. But, indiscriminant or across-the-board cuts to administration can cause significant damage to the institution, including drops in staff morale, negative impact on productivity and risk compliance, and potential negative press.