People Cost Optimization

Organizations are under increased pressure to cut costs.

Amid economic uncertainty, compressed margins, mergers and acquisitions, the demand to find new ways to save money is high. Leadership often looks to one of the most expensive parts of the business — people costs.

But this can backfire. That's because organizations often focus on headcount and reducing the workforce, but not the work, or cut the wrong roles and the wrong people. This damages morale, motivation and productivity, making it even harder to build the business and get value from your people.

There is a need to examine your people costs more holistically, which means lowering your outgoing costs while making sure your organization can still grow sustainably. We'll show you how to restructure and make the most of your talent, find balance after a merger or acquisition, and optimize your rewards. This will help you to build the most efficient workforce structure without costing you employee engagement and productivity.

By focusing only on headcount reduction organizations run the risk of reducing the workforce but not the work.

How we can help you

When thinking about how to optimize your employee costs, we focus on key cost drivers: the volume of work, the way you work and the rewards that you offer your talent. We analyze these drivers to help you:

Organizations usually understand the cost of its rewards program, but they often don’t understand the value that those rewards create for employees. We quantify reward value, enabling you to decrease the rewards that employees undervalue and invest in the programs that they value most. In over 150 projects, we’ve found opportunities to reduce our clients’ reward costs by at least 5% without reducing its perceived value.

We analyze the size and “shape” of your organization—levels, spans, and layers—to unearth cost-saving opportunities that can be realized through redesigning roles. Our online interactive tools and analytic reports highlight where your organization might be over- or under-resourced, what the associated costs are, and how your headcount compares to the market. Our analysis is based on our work measurement methodology, which is the most robust and widely used in the world.

Organizations often find opportunities to lock in sustained cost savings by moving work to lower-cost labor markets. We’ll help you redefine work and the operating models you can use to deliver that work by drawing on the world’s most comprehensive compensation database and finding more affordable locations to build your operations.

We review your operating model and your organization structure to reduce redundancies, centralize shared functions and streamline processes. Our organizational strategy provides processes and tools that allow you to deliver these changes without disrupting your business.

We help leaders guide their employees through major disruption, helping them make the case for change, establishing enablement initiatives and, where layoffs are necessary, supporting employees as they transition to a new career.

Our thinking

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