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Cost Reduction and Control Best Practices: The Best Ways for a Financial Manager to Save Money, 2nd Edition

Name: Cost Reduction and Control Best Practices: The Best Ways for a Financial Manager to Save Money, 2nd Edition
Author: Institute of Management and Administration
ISBN: 9780471739180

by Institute of Management and Administration

August 2013

Intermediate to advanced

544 pages

18h 15m

English

Wiley

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Cover
Contents
Title
Copyright
Preface
Acknowledgments
Chapter 1: Corporate Cost-Control Strategies
Controllers’ Corporate Cost-Cutting PlansBain Study Outlines Strategic Importance of Continuous Cost-Reduction ProgramsShould Your Company Do Away with the Budget Process?Use of Cost-Management ToolsTen Most Effective Techniques for Enhancing Corporate ValueComputing the Value and Cost of a Flexible Capital StructurePlanning Capital ExpendituresRooting out Corporate Fat During the Capital Budgeting ProcessBenefitsEndnotes
Chapter 2: Human Resource Department Costs
Cost-Control StrategiesHow HR Managers use Technology Applications to Control CostsHR TechnologyTop Strategies for Improving HR EfficiencyHR Metrics: Is “Roi or Die” A Myth or a Mandate for HR?Applicant Tracking is a Top HR ApplicationRecruiting Function: Part of the HR Department?Cutting Costs in HR DepartmentsAvoiding Costly LawsuitsHealth Plan Sourcing on the WebAvoiding Costly Employment LawsuitsSaving Money for Your OrganizationCost-Control Forum
Chapter 3: Benefits Costs
Best PracticesCutting Benefits CostsData Analysis Can Help Cut Health Care CostsGet Employee Input to Redesign Benefits PackageCreating a Culture of WellnessFew Employers Absorb Health Care Cost IncreasesGathering Enough Information to Adequately Assess Health Care CostsCutting Rising Drug CostsCosts Remain on Agenda: How Benefits Managers Should RespondDifferent Strategies Yield Health Care Cost SavingsHow Employers Fight Health Care Cost IncreasesDisease Management Programs: How Well do They Really Work?Why and How to Institute Disease Management for EmployeesSteps to Help Cut Workers’ Compensation CostsCost-Control ForumHow Benefits Managers are Cutting CostsEndnotes
Chapter 4: Compensation Costs
Cutting Compensation CostsRecognition ProgramsPay Causes High Turnover RatesPay Plans to Deal with Future GrowthUsing Salary Surveys for Market-Pricing JobsGenerous with Severance PayCompensation Concerns: How to Handle ThemSetting Pay RangesResolving Gender-Based Pay GapsChoosing the Best Salary Structure

Chapter 5: 401(k) Plan Costs
Controlling 401(K) Plan CostsTightening OversightJudging the Success of the 401(K) PlanNegotiating Lower Recordkeeping FeesPrepare for and Resolve a Dol Plan AuditAvoiding Poor 401(K) PerformanceProviders Offer Sponsors Plan Evaluation ToolsDol Allows Plan Fees to be Charged to ParticipantsBear-Market Pricing Structure Emerges for Brokers and ProvidersEndnotes
Chapter 6: Training and Development Costs
Best PracticesTraining and Development CostsCase Studies, Strategies, and BenchmarksOutsourcingGetting a Training Budget ApprovedCalculating the ROI of Leadership Training“ROI Can’t” to “ROI Can-Do”Developing Online Learning in-HouseHow to Sell an E-Learning Initiative to ManagementUsing Rapid E-Learning to Deliver Cost-Effective TrainingVirtual Classroom Produces Immediate ROIForecasting to Predict ROI TrainingPreparing for Growth DemandsHow Training Managers Control CostsEndnotes
Chapter 7: Accounting Department Costs
Best PracticesCost-Effective Change in Accounting departmentsCase Studies, Strategies, and BenchmarksReduce Costs and Increase Productivity? Give Staff More ResponsibilityShorten the Monthly Close and Reduce its CostAP Cost and Processing BenchmarksLow-Cost T&E AutomationModifications that Shorten the Close and Reduce Cost
Chapter 8: Accounts Payable Costs
Best PracticesTactics in Accounts Payable DepartmentsCase Studies, Strategies, and BenchmarksCost-Cutting Initiatives in APKey AP Department Operations BenchmarksMeeting Costs Come Under Corporate ScrutinyGetting T&E Under ControlForm 1042-S and Form 1042Accounts Payable and TechnologyT&E Software: Reduce Report Processing Time
Chapter 9: Credit and Collections Costs
Best PracticesImproving Credit and Collections Cost-EffectivenessCase Studies, Strategies, and BenchmarksElectronic Delivery of InvoicesImproving Staff ProductivityImprove Use of E-InvoicingKeep Sales from Selling to Customers that do not Meet Credit StandardsDeduction-Smashing Game PlanAvoiding Credit Holds With Delinquent, Key CustomersSelling to Financially Troubled CustomersCollections
Chapter 10: Purchasing Costs
Best PracticesCost-Control “Get Tough” AttitudeCase Studies, Strategies, and BenchmarksSourcing Methods for Services SpendImprove Supplier Management ProcessReverse AuctionsContract RenegotiationFramework Cost-Savings ProgramsP-Card Model Realizes “Hard”-Dollar Savings GoalsControlling Services SpendManage and Control Indirect SpendSupplier NegotiationE-Sourcing InitiativesRein in Less-than-Truckload CostsBenchmarks Help Achieve Performance ExcellenceCost-Control ForumCost-Control Practices
Chapter 11: Inventory Costs
Best PracticesEmerging Cost-Control PracticesCase Studies, Strategies, And BenchmarksPeriodic ReviewRemove Spare-Parts InventoryVendor-Managed Inventory Programs“Back-To-Basics” Techniques For Inventory ReductionInnovative Inventory Management StrategiesProcess OrientationRemoving Obsolete Inventory From StorageCost-Control ForumTips For Controlling Inventory Costs
Chapter 12: Export Costs
Best PracticesStrategies to Streamline Export Administration and CostsLow-Cost Programs to Gain CustomersInternal Export Compliance ProgramExpensive Compliance Lessons LearnedOcean Freight Costs and Online BiddingDocumentation and Compliance ProgramsLc E-UCP Rules Reduce Letter-of-Credit CostsExport InsuranceExportingShippers’ AssociationsTradecardEnsure that Forwarders Cut Costs and Maximize ProfitsPro Forma InvoicesRelationship with Freight ForwarderCost-Control ForumBest Cost-Saving TacticsEndnotes
Chapter 13: Outsourcing
Best PracticesMost often Outsourced: Human Resources, Finance, and Information TechnologyCase Studies, Strategies, and BenchmarksRisks and Savings from Outsourcing and OffshoringBenchmarking Performance in HR Outsourcing RelationshipsOutplacement Firm can Meet Downsizing Challenge and Raise ProductivityLeading Providers of Offshore Outsource Service ProvidersBuilding a Successful Outsourcing RelationshipHR Outsourcing: Achieving Successful OutcomeMaking HR Outsourcing DecisionsOutsourcing Finance and Accounting FunctionsCost-Control ForumTips on OutsourcingEndnotes
Chapter 14: Downsizing
Best PracticesDownsizing at All Sizes of FirmsCase Studies, Strategies, and BenchmarksDownsizing: When it does and does not WorkDownsizing PlanDownsizing Best PracticesExit Incentive ProgramsResponsible RestructuringEndnotes
Chapter 15: Consultants Costs
Best PracticesBuying Consulting ServicesCase Studies, Strategies, and BenchmarksClient Expectations for Consulting Services and RelationshipsHow Consultants BillWhat Managers Spent and Plan to Spend on Consulting ProjectsConsultants Fulfill Key Strategic Goals by Using It
Chapter 16: Business Tax Costs
Case Studies and StrategiesTax Strategies at Low-Tax CompaniesEmployee TelecommutingNo Age Discrimination when Company Cuts off Retiree Benefits for Younger WorkersSection 179 ExpensingOverpaying Top PeopleAvoid Deduction Limit when Paying Contractor ExpensesEndnotes
Index

Content preview from Cost Reduction and Control Best Practices: The Best Ways for a Financial Manager to Save Money, 2nd Edition

Chapter 4 Compensation Costs

CUTTING COMPENSATION COSTS

More than ever, controlling compensation costs is crucial to the fiscal health of your organization. IOMA surveyed nearly 500 compensation and HR professionals to uncover the best compensation cost-control methods they have come up with and actually used in their organizations. The top three approaches include reducing merit pay increases, implementing hiring freezes and reductions, and distinguishing sharply between high and low performance (see Exhibit 4.1). Survey respondents were allowed more than one answer because, of course, there are many ways to cut costs.

Exhibit 4.1 Top Ways to Cut Compensation Costs

Source: IOMA

Reduced Merit Increases

Reducing the size of merit increases was the top method of controlling compensation costs for nearly half of the respondents (see Exhibit 4.2). At companies with 1,800 to 6,999 people, the number came to 53.5%, while at firms with up to 199 people, it was 41.9%.

Exhibit 4.2 Categories in which Companies Had the Most Success in Controlling Costs during the Past Year, by Number of Employees

Reducing merit pay increases was an especially popular move among business services firms (at 56.8%); wholesale/retail trade firms (54.3%); and transportation, communications, and utilities firms ...

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Cost Reduction and Control Best Practices: The Best Ways for a Financial Manager to Save Money, 2nd Edition

by Institute of Management and Administration

Chapter 4

Compensation Costs

CUTTING COMPENSATION COSTS

Reduced Merit Increases

Become an O’Reilly member and get unlimited access to this title plus top books and audiobooks from O’Reilly and nearly 200 top publishers, thousands of courses curated by job role, 150+ live events each month,
and much more.